Business Analysis and Strategy

This assignment provides a detailed analysis of various business-related topics, including Porter's Five Forces, stakeholder management, co-creation design, strategic management theory, and international business strategy. It also covers market segmentation, customer engagement, operations strategy, and meeting customer needs. The assignment includes references to relevant studies and articles in the field of business management.

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1- Evaluate the strategy........................................................................................................3
AC 1.1 missions, visions, objectives, goals and core competencies of Aldi...............................3
AC 1.2 factors to be considered by Aldi when formulating their strategic plans........................5
AC 1.3 Usefulness of techniques used in businesses development strategic plans.....................6
AC 2.1 Organisational audit and analysis of current strategic position.......................................8
AC 2.2 Environmental audit for Aldi showing micro and macro environment...........................9
AC 2.3 Significance of stakeholder’s analysis for framing the new strategy............................11
AC 2.4 Presenting a new strategy for ALDI..............................................................................12
PART 2..........................................................................................................................................13
AC 3.1 Identification of market and appropriateness of suitable strategy for ALDI................13
AC 3.2 Justification of one of the strategies for market entry and growth................................14
PART 3..........................................................................................................................................15
AC 4.1 roles and responsibilities of personnel who are involved with the implementation of
the strategy.................................................................................................................................15
AC 4.2 Analysing the requirement of resources for strategic implementation..........................16
AC 4.3 Evaluation of the contribution of SMART targets in achieving the strategic objectives
....................................................................................................................................................17
CONCLUSION..............................................................................................................................18

INTRODUCTION
For a business to grow, it has to compete well and perform well in the market. Business
strategy is defined as an approach taken by the organization to formulate, implement
and control the business strategies to yield profit for a long term. In this report, we will
discuss regarding the mission, vision, goals and objectives and competencies of a
leading super market chain called Aldi. Firstly we will look at the strategies which will
help in improving the business plans, techniques, strategies towards proper decision
making and details regarding the internal and external audits will be discussed along
with significance of stakeholders and its strategic implementation. Secondly, we will
discuss on the design strategy for business which includes discussions regarding the
market and ways to achieve benefits. Lastly we will look at how the strategic planning
has to be implemented and details regarding resource requirements, objectives to
achieve goals which further helps in achieving the organizational goals and objectives.
PART 1- Evaluate the strategy
AC 1.1 missions, visions, objectives, goals and core competencies of Aldi
Strategy for Aldi is defined as the scope of achieving the long term goals and organizing
the resources to work in a challenging environment and attain the needs of the market
to achieve the overall requirement of the organization and to expect the demands of the
stakeholders (Metzger, 2014). Aldi considers the details mentioned below for its
strategic planning.
Mission
Mission refers to the focus on the goals that the organization has. Here, the mission of
Aldi is to have a sustainable growth and attain success in the business with respect to
store constructions and lessening the cost of the operations.( Voigt et. al., 2017).

Vision
The vision of Aldi is to become the most famous and preferable chain of supermarket
around the United Kingdom. They focus on values, culture quality products and a
reasonably low price. They put in their efforts to carry forward the ethics and in
improving the satisfaction of the customers time to time. Their final goal by the end of
the year is to achieve a 10% rise in the customer base of Aldi. (Smith, 2012).
Figure 1: Aldi supermarket in UK
Goals and objectives
Their prime goal is to have a good relationship with the suppliers and deliver quality
products to the customer and to sustain with the environmental values.
The objectives of the organization are mentioned below.
 As traditional models might not yield desired results, they are trying to bring in
changes in the process of the business and to improve the customer base.
(Metzger, 2014).
 . Support and remain responsible for environmental preservation and social
responsibilities. Improve the business and sustain for a longer run.

 Refine methodologies to attract the customers and attain benefits.
Core competencies
The core competencies of Aldi are the skilled and able employees and a string inventory
assets to structures the operation and to save time and cost. Aldi has attracted many
customers and has a strong customer base and reputation in the market due to their
quality products. In terms of finance, they are expanding their business operation for
global marketing and improvising the customer services. (Sashi, 2012). The
organization is able to provide lower price and high performance due to its internal
capabilities.
AC 1.2 factors to be considered by Aldi when formulating their strategic plans
Strategic planning in Aldi is done in a very systematic and procedural way. They
develop strategies which give out the best results for their company. In order to serve
the customers effectively Aldi has considered these following factors in their strategic
planning.
Future direction of the competition
For an effective planning the goals of Aldi has to be clear. They have to identify the
direction of the business and give a tough competition to its co-competitors.for instance;
they have to compete in stiff as well in the online channels. A huge discount with high
product value has to be given. Once the value goes high online, then they will be able to
identify their positions. It is also essential to enter the global market where the selling
price is less and the interest of the customers remains high. (Johlke and Iyer 2013).
Needs of customers
Identifying the needs of the customer is another important aspect. Hence efficient
planning has to be made to identify the needs of the customers and it has to be
implemented properly. Proper planning has to be made when there is a high
competition in the market.
Gaining and maintaining competitive advantage

Aldi has clearly understood the competition around and they have to influence the
people inorder to sustain in the market. They need to identify better advantages they will
be able to provide and work out properly on it. They also have to find out ways by which
they can achieve this and to sustain. (Verbeke, 2013).
Corporate-level integration and communication of the business plans
They have to identify ways of keeping their customers, employees, suppliers and
distributors integrated with the company. Distributors and investors also play a major
role and remaining in unison with all of them also has to be panned in the business
strategic planning in order to achieve he desired goal. Plans have to be discussed
clearly with the stakeholders and work in alignment with their inputs. Proper plans have
to be implemented and executed quickly. (Blackburn, et. al. 2013).
AC 1.3 Usefulness of techniques used in businesses development strategic plans
There are ample numbers of techniques which can be used to attain desired results and
to improve the output. All these techniques have to be discussed during the strategic
planning.
Pestle analysis: This is a very effective technique through which we will be able to
understand the overall business environment to operate and to sustain. It gives an
opportunity to analyze and understand the effect of environmental factors the business
so that the organization can make a better decision. However very accurate and precise
information might be difficult to achieve.

Figure 2: Factors to consider in PESTLE analysis
Porter five forces analysis: This technique can be used to understand the competition
and the impact customers, suppliers and competitors can create in a business. These
techniques are very essential to understand and grow in the market. However this might
not provide clarity on how to overcome the issues and sustain in the market. (Verbeke,
2013).
Figure 3: Porter five forces analysis

BCG matrix: This matrix is used to evaluate the policies and practices followed by the
organization to achieve success. Through this technique they will be able to segment
the operations and strategies based on the need and sustainability of the business.
Through this the organization will be able to identify the most suitable plan suiting the
organization. This matrix is basically used to avoid the dog and resolve the question
mark which is the main reason to the downfall and reduction in profit.
Application of BCG matrix in present scenario (Aldi BCG matrix)
Figure 4: BCG matrix
Dogs – Dogs means those areas where company have low market share and at
the same time they rate of return is also low. Aldi is currently growing with a high speed
and none of their investment is present in this stage so they are not facing any problem
related to cash.
Question marks – In this situation, company operates in a growing market so
they have to invest lot of cash but because of low market share, they do not get much
cash. Aldi has entered in Australian market which is continuously growing, they are
burning cash in this country but not getting required one. This is serious problem for
company.
Stars – UK is a market where company has high market share and retail sector in
this country is growing at a fine rate. They have to burn lot of cash in this market but it is
not an issue for them because they are also earning huge amount of cash.

Cash cows – Cash cows are high market share with a low growth. In some
region of UK company's market share is high but the growth of market is very low. This
is a situation where they should encash all the opportunities as soon as possible.
Profit impact of market strategy: These are proven records which help to understand
the profit and impact of the decisions taken for Aldi. It will help to understand the
methods to market the product and to find out ways of making profit and to earn
benefits. (Casadesus‐Masanell and Zhu 2013). This method is both cost and time
effective.
AC 2.1 Organisational audit and analysis of current strategic position
Chain preposition, benchmarking, activity maps and business analysis option can be
considered to understand the capability of the organization. SWOT analysis can be very
helpful in this.
Table 1: SWOT analysis
Strength Weakness
- Organization has brand values;
customer base and market share in
country. This company is considered as
one of the most successful retail company
of UK and this help them in attaining more
market share. Because of their high brand
value they do not invest much amount in
advertising (Slack, 2015).
- to retain customers lower price and high
quality has to be set. (Metzger, 2014).
Aldi provide various food items and other
product at low cost. Normally companies
compromise quality of product when they
sell product at low price but they always
maintain a decent level of quality which
convince their customer to visit stores
again and again.
-reduced operational cost due to
relationship management with suppliers.
This company do not recruit more people
for assisting customer at the time of
purchasing goods. This result in low
operational cost to the company (Smith,
- The organization doesn’t have global
business, they do not have internal
services and business appearance.
Below of weak global presence, this
company is dependent on few markets
like UK. This dependency is their key
weaknesses (Rothaermel, 2015).
- Lower price has impact on profitability to
meet the goals and financial capabilities.
Aldi keep prices of their product low and
this reduces the profit which is earned by
company.
- Decreasing marketing for products and
services in competitive environment. Aldi
do not believe in heavy promotion which
provide competitive advantages to their
rivals and considered as a big weakness
of the company (Sashi, 2012).

2012).
Opportunities Threats
- Technology can help to increase the
margin and profit of the organization. Aldi
can open online stores and deliver order
goods to the home/office of the
customers.
- Developing countries are an opportunity
space for new market and to increase the
profit. Aldi can enter in developing
markets like India.
- Direct dealing with suppliers will reduce
the product cost. This in turn will help in
having an effective customer relationship.
(Dobbs 2012).
- Market and technological dynamics are
threat to achieve the stable business
operations (Jenkins and Williamson
2015).
- New entrants are threat in domestic and
internal business to maintain customer’s
interest. Domestic retailers are getting
strong in many countries and this is a big
threat for company.
AC 2.2 Environmental audit for Aldi showing micro and macro environment
Customers, employees, suppliers and competitors are considered as micro threat
whereas, political, demographic, economic, cultural and technological factors are the
macro threat for a business environment. In order to evaluate the environmental factors,
Porter’s five force model can be used.
Threat of new entry
As Aldi is a chain of supermarket and they have made a strong clientele, new entrants
are not a major threat to Aldi. Opening a chain of supermarket needs more investment
and effort. Hence new entry threat can be considered low. (Rothaermel, 2015).
Threat of substitutes
Threat from substitutes is more as they sell only grocery and food products while other
supermarkets sell basic household and other products along with grocery. Since there is
an option for customers with multi utility option in other places, there is a very high

chance of threat when it comes to substitutes. Hence, Aldi has to plan effectively to
tackle these substitutes. Jarzabkowski, and Kaplan 2015).
Bargaining power of suppliers: Proper bargaining has to be done with the suppliers in
order they stick to the firm and do not go to the rivals. The cost of the products has to be
bargained in such a way that it does not create a negative impact on the relationship
with the suppliers. Care has to be taken so that the suppliers do not go to the rivals for
the sake of higher profit. As of now, Aldi is maintaining a healthy relationship with the
suppliers which serve as a biggest boon. (Grünig and Kühn 2015).
Industry rivals: The competition of Aldi is with Tesco and Lild which are as popular as
Aldi. Proper promotion methods have to be taken by Aldi in order to coupe up with the
rivals. Effective customer support, proper advertising and innovations has to be brought
in to sustain the industry rivals.
Bargain power of customers: Aldi is taking high efforts in managing with the customer
bargain and providing quality goods to the customer (Michalakeas, el. al.2015). I order
to maintain a sustainable market and flourish for a long time, Aldi has to maintain a
good relationship with its customers. By this way, they would be able to maintain their
rank in the market.
Pestle analysis
Political factor Political factor is dependent on the government and
fluctuations in the government policies which affect trade and
business. Any kind of a positive change or favourable steps
taken by the government will help in flourishing of the
business.
Economical factor Economical factors include inflation, employment, monetary
policy, etc. Favourable economic conditions help in achieving
the goals where any kind of unfavourable situation will affect
the trade badly.
Social factors Social factors depend on the lifestyle of the customers. They
needs and requirement with changing trends. Aldi has to
make a very detailed research for this to understand the
needs and requirements of the customer.
Technological factor With rise in technology business is able to reduce the load

on labour and will generate more efficiency of the business.
This might lead to increase the capital investment and rates
of products that will help to take actions accordingly.
Legal factor Tax policies, employment laws, health and safety regulation
are important factors for the employees. All these has to be
done by properly considering the policies associated with the
above.
Environmental factor Aldi has to perform the operation by considering the
regulations and restrictions by protecting the environment
with protection of the environment and maintain goodwill in
the market.
AC 2.3 Significance of stakeholder’s analysis for framing the new strategy
In order to gain profit in business, stakeholders play a major role. Customers, suppliers,
merchants, investors, competitors are the important stakeholders who play a major role
in both profit and loss of the organization. (Fassin, 2012) Mendelow’s stakeholder matrix
is a good tool which will help the stakeholders to help the organization based on their
shares. The main persons in this matrix are investors and shareholders. They work
towards achieving the goals of the organization.
Significance
Effective employee relationship: Character, behaviour and efficiency of the employee
is the base for a successful organization. The output of the organization is directly
related to its employees. By providing proper training motivation and other required
benefits for the employees the growth of the organization can be assured. Talented and
satisfied employees contribute much to the growth of the organization. They will help in
customer satisfaction which inturn will help in the increased productivity (Slack 2015).
Customer satisfaction: Customer satisfaction is the nerve to flourish in any kind of
business. Gaining the trust of customers is very important for having a better business
and improving the sales. This can be achieved by delivering quality product to the
customers in a timely manner with low or affordable cost. Customer satisfaction induces
motivation in the minds of the employees as well. (Grant, 2016).

Supply smoothly:.
A satisfied supplier always ensures proper deals and timely supply of goods. This helps
in maintaining a good relationship from either side. (Verbeke, 2013). Profits can be
shared with the suppliers as a thankful gesture.
AC 2.4 Presenting a new strategy for ALDI
Current strategic position
There are two parts here, one is having skilled and effective employees and strong work
strategy which helps in retaining the customers and on the other hand is attracting the
customers with providing satisfaction through products and services. Currently the firm
provides better quality to the customers which yield in better profit for the organization.
their current strategy is working well with Aldi. (Chang, 2016).they constantly give better
goods to the people which makes the customers to stick with Aldi. These are the prime
essential factors to achieve better productivity and gain. High financial support, strong
customer base and efficient employees lead to the growth and profit of the organization.
Aldi competitive advantage
The organization has adopted new techniques to build their empire in the developing
countries. Increase in product quality and decrease in the pricing is the key Aldi is
following to attract customers.
Direction of organization
In order to expand the business the organization has to be clear with the policies and
has to explore the potential market. Social services can be used as a tool to improve the
clientele the firm has to adopt better practices and proper pricing system to attract the
customers and stay successful in the market. (Wedel and Kamakura 2012).
Strategic goals and objectives

There is a growth of 7% in the market through customer service. They have a very high
profit and clientele. Objectives followed by aldi for the growth of business include the
following.
Action items
 Monitor the pricing and strategies to sustain in the market.
 Adopt new techniques and policies with attractive pricing and reduced effort.
 Evaluation and monitoring of business practices.
PART 2
AC 3.1 Identification of market and appropriateness of suitable strategy for ALDI
Following are the strategies Aldi can use to sustain and to see huge profit in the market
of developing countries.
Substantive growth
In this situation, the company can get into online business to keep the customers
contented. They can try different options to enter and stay in the market The Company
can also integrate with other established brands which will help in the increase of the
sales of their products. Strategic planning has to be made by the organization for growth
and possible risk factors associated in the area.
Retrenchment

This is usually used when there is need for improvement in the sale of a specific product
so that the focus remaining on the specific product. In case, the product is not worthy in
economy, then it would just become a waste and will lead to the reduction in the
performance and profit of the other products also.
Limited growth: Market development, Market penetration, product development are
few strategies which can be used by the company when the growth of the organization
has become limited. These options or strategies can help to recoup with the submissive
or lessened growth. Aldi can adopt product development strategy in which they can
invest on the development of the existing product to satisfy the customers. Improving
the quality of an already known product can yield in better results.
It is observed that establishment of position in market can be done by limited growth
with efficient suppliers and attractive marketing functions and productivity.
AC 3.2 Justification of one of the strategies for market entry and growth
Strategy can be used to penetrate into the market and have a sustainable growth.
Discussed below are few points when the strategy is related to market entry and growth.
Cost effectiveness: With a low cost it is able to achieve maximum profit with minimum
changes. This creates a very less negative impact on the operations of thebusiness.
Being cost effective will help Aldi to achieve more gain which in turn will help to meet
the challenges in future. Resources can also be optimised so that they could save it for
the future needs. Cost effectiveness factor is one key factor which Aldi has to adopt to
achieve desired output.
Price down and competition: Lowering the price is the key and it can be achieved by
adopting limited growth strategy. They are many new techniques and resources which
help to achieve this. In order to sustain and succeed in competition, keeping the costs

low is mandatory. Through this strategy Aldi would be able to conquer the entire market.
A strong customer base will eventually lead to more gains and sustained growth in the
market. Low selling price will help Aldi to overcome the fear of competitors. With the
current position in the market being strong, Aldi would be able to make strategic plans
for future expansions.
Market share: The expansion of the organization has to be based on the needs of the
customers. Proper planning has to be done to analyze customer needs and demands.
Strategies have to be made for growth and expansion of market along with investments
to see better productivity. (Belbin, 2012). Adopting proper distribution channels will help
in maintaining a demand and supply balance. Established market share of Aldi will help
to analyze the future trends in the market and to plan their agenda accordingly
PART 3
AC 4.1 roles and responsibilities of personnel who are involved with the implementation
of the strategy
The roles and responsibilities of the people involved in strategic planning is explained
as below.
Corporate level
 Improve the HR related activities; improve the performance and reducing the
risks and failures.
 In order to fulfil the needs of the business, proper resources have to be allotted. Proper plans have to be made to increase the performance of the employees.
Business level
 Identify the skills of the employees and plan based on that to achieve the goals of
the organization. Individual abilities have to be identified.
 Have to create a team spirit and build a positive relation with the members of the
team by motivating them

 Use the resources efficiently in order to increase the productivity and
performance. Have a positive control on the members to achieve better output
Operational level
Evaluate the policies and its influence on the organization for better output.
 Plan effectively by making appropriate strategies.
 (Hill, et. al. 2014). Cost management has to be followed effectively (Hill, et. al.
2014).
 An expense of the organization has to be properly planned and noted. Monitoring
has to be done effectively to achieve the desired results (Hill et. al. 2014).
 Monitor the activities of the organization and monitor the expenses of the
organization
AC 4.2 Analysing the requirement of resources for strategic implementation.
Objectives followed by Aldi to achieve their marketing goals are as follows.
Finance: Finance requirements have to be considered and planned accordingly to
achieve their goals. The senior management has to be clear regarding the allocation of
the finance at lower levels. Finance received from bank, shareholders, investors etc has
to be used to maintain the business operations.
Material: Maintaining a good relationship with the suppliers is very important for Aldi to
receive good materials. Quality of the materials plays an important role when it comes
to business. It helps in improving the customer base as well as in maintaining a good
relationship with the suppliers. (Verbeke, 2013).
Human resource:Human resource is another important factor. The people selected for
the organization have to be efficient in handling the business. They must be able to
understand the needs and demands of the people.

Technology: Technology is needed for proper communication forecasting of goods
and sharing data at minimal efforts and costs along with faster approach to market. In
order to handle technology, people who are experienced in this particular filed have to
be identified.
AC 4.3 Evaluation of the contribution of SMART targets in achieving the strategic
objectives
Aldi has defined smart goals and objectives for the organization. This in turn has helped
Aldi to achieve the smaller goals in alignment with the abilities of the organization.
Having focussed and clear goal has helped Aldi to move in the right track towards the
success. Aldi has to set smart objective so they can move forward towards their vision
and mission. This company can set a specific target which is also time bound,
measurable, attainable and realistic.
To increase market share of company by 9% in one year.
This is a SMART objective which will help Aldi in attaining their strategic objectives i.e.
to become market leader in UK market. This company want to enter in more market but
if they will not earn high market share in develop countries like UK then they expansion
of business is very difficult for them.
Maintaining specific targets have always helped Aldi to communicate their goals clearly.
This has also helped in reducing the loss of finance and also reduced the wastage of
resources and their capabilities. Measurable targets help in achieving the goals and to
improve the productivity of the organization. This practice over a period of time will help
to understand the flow of business and to analyze the areas which can turn favourable.
Fixing of attainable target is very essential to achieve the profit. This enables a flexible
business culture in the firm. (Verbeke, 2013).
Targets based on the possible results have to be set. This helps in reducing the
wastage of time and resources and for clear and faster strategic management.
Haughey, 2013). Smart targets help and benefit in achieving the organization goals.
Gantt chart and work break down are used to manage time and map the capabilities to
required outcomes.

CONCLUSION
In this report we have had a detailed analysis on evaluation, design and implementation
of business strategy in Aldi. The mission, vision and goals of Aldi have been discussed
here. Strategic planning and factors which have to be considered during strategic
planning has also been discussed. It has been indicated that Aldi could use the BCG
and pestle can be used to develop new strategies and to access the environment.
Marketing strategy has to be planned in such a way that the customers of London are
attracted towards them despite having many options. Discounts and lower price with
quality product plays a major role when it comes to conquering the market. The roles
and responsibilities of each and every person have to be well defined. The market
trends have to be considered before entering the global market.

REFRENCES
Books and journals
Belbin, R.M., 2012. Team roles at work. Routledge.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance:
business, strategy and owner-manager characteristics. Journal of small business
and enterprise development, 20(1), pp.8-27.
Casadesus‐Masanell, R. and Zhu, F., 2013. Business model innovation and competitive
imitation: The case of sponsor‐based business models. Strategic management
journal, 34(4), pp.464-482.
Chang, J.F., 2016. Business process management systems: strategy and
implementation. CRC Press.
Dobbs, M.E., 2012, January. Porter's five forces in practice: Templates for firm and case
analysis. In Competition Forum(Vol. 10, No. 1, p. 22). American Society for
Competitiveness.
Fassin, Y., 2012. Stakeholder management, reciprocity and stakeholder
responsibility. Journal of Business Ethics, 109(1), pp.83-96.
Frow, P., Nenonen, S., Payne, A. and Storbacka, K., 2015. Managing co‐creation
design: A strategic approach to innovation. British Journal of Management, 26(3),
pp.463-483.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley
& Sons.
Grünig, R. and Kühn, R., 2015. The Strategy Planning Process: Analyses, Options,
Projects. Springer.
Haughey, D., 2013. SMART goals. Project Smart.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Jarzabkowski, P. and Kaplan, S., 2015. Strategy tools‐in‐use: A framework for
understanding “technologies of rationality” in practice. Strategic Management
Journal, 36(4), pp.537-558.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis.
Routledge.
Johlke, M.C. and Iyer, R., 2013. A model of retail job characteristics, employee role
ambiguity, external customer mind-set, and sales performance. Journal of
Retailing and Consumer Services, 20(1), pp.58-67.
Kiel, I.H., 2014. Entrepreneurial marketing.
Metzger, K., 2014. Business analysis of UK supermarket industry.
Metzger, K., 2014. International Management Analysis of ALDI.
Michalakeas, D., Clearesta, E., Gomes, F., de Luiz-Garcia, R. and Schoof, W., 2015.
ASDA’s fight for market share.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sashi, C.M., 2012. Customer engagement, buyer-seller relationships, and social
media. Management decision, 50(2), pp.253-272.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Smith, I., 2012. Meeting customer needs. Routledge.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Voigt, K.I., Buliga, O. and Michl, K., 2017. Striving for Customer Benefit: The Case of
Aldi. In Business Model Pioneers (pp. 11-24). Springer International Publishing.
Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and
methodological foundations (Vol. 8). Springer Science & Business Media.