Strategic Management: Approaches and Models Adopted by Aldi

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Deliberate and emergent approaches to strategy formulation adopted by Aldi in the past.........3
Macro environmental and industry issues that Aldi has faced in the past and responses of Aldi
.....................................................................................................................................................5
Porter’s value chain framework...................................................................................................8
Porter’s Generic Strategies and Ansoff Matrix.........................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Strategic management refers to a process of planning, monitoring, analysing and
assessment of all important factors that affect requirements of organisation to meet goals and
objectives. This report will discuss deliberate and emergent approaches of strategy formulation
and its balance adopted by Aldi along with success of balance. Later, different strategic models
will be applied for Aldi to identify and understand strategic capabilities and success of
organisation. In this strategic frameworks Porter’s value chain is one of the model which helps in
identifying value activities and what value activity is particularly strength for Aldi. Along with
this, Porter’s Generic strategies and Ansoff matrix will be applied for Aldi. Aldi is a German
family owned discounting supermarket chain which has around 11235 stores in 20 countries. It
was founded in 1946 and is headquartered at Essen, Germany and Mulheim, Germany with
product offering of grocery and household essentials.
MAIN BODY
Deliberate and emergent approaches to strategy formulation adopted by Aldi in the past
Definition of Strategy Management- It is based on the process of setting goals, procedures and
objectives in order to make organization become more competitive. It helps for performing the
different approaches and these approaches are known as deliberate approach and Emergent
approach. Deliberate approach is adopted by large businesses that are firmly established in
market (Kopmann and et.al., 2017).
Analysis of evolving language of strategy, levels and stages involved- This approach for
strategy formulation is one in which future actions are thoughtfully and consciously made and
organized as a part of business management and leadership. This strategy is developed by
rigorous analysis of data and is developed so that organization can achieve certain predefined
goals. Certain reasons and objectives because of which deliberate strategy is developed include
market growth, segment size, competitors strengths and weaknesses and technological
development. Emergent strategy is one in which strategy is developed from unplanned actions
and initiatives from an organization. Emergent strategy is result of spontaneous innovation and
results of daily prioritization and investment decisions made by individuals in organization.

Aldi has adopted both approaches for strategy formulation in which their business model
and long term strategy such as to maintain distance from London for some six time are includes
in deliberate approaches of Aldi. This means that strategic actions and plans that are developed
considering long term objectives and aims and plans that directly lead towards long term goals
and actions. On the other hand, emergent approaches for Aldi includes decisions regarding
different offers that are offered on daily or weekly basis by Aldi.
Aldi realized that its model of offering prices at discounting rate and storing limited
products in its stores and also it became first organization to start self-service. These are
elements that are involved in deliberate strategy of organization (Bolisani and Bratianu, 2017).
This is because these decisions have been taken considering different elements and in addition to
this strategy has been adopted to ensure maximum profitability for the organization. Other than
this, emergent approach includes decisions for offerings of Aldi on the basis of festivals and
seasonal basis in which on the basis of demand of customers in near future becomes basis for
decisions and strategy of Aldi. These are characteristics of emergent approach of strategy
formulation.
Adoption of both these approaches by Aldi has been highly successful and balance of
these strategies is in equal proportion. The element that justifies success of Aldi because of
adoption of these strategy is continuous growth and success of Aldi and in market like UK where
initially it has slow growth, ultimately its strategy became successful and it became one of the
top supermarket chain in UK.
Difference between deliberate and emergent approaches to strategy making
The balance that Aldi has adopted in past is of equal proportion of deliberate and emergent
approaches of strategy formulation in Aldi. The deliberate and emergent strategies are useful for
Aldo because deliberate focus on direction or control to get desired thing. Another way,
emergent strategies open up notional of strategic learning since it involves responding to unfold
pattern.
On the basis of evaluation, it has been analysed that balance between deliberate and emergent
strategy formulation at Aldi. That’s why, recommended that Aldi should transform future
approaches for strategy formulation in which they should increase proportion of emergent