Strategic management analysis : ALDI
Added on 2021-02-20
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Research Analysis
Executive Summary Strategic management effectively determines actions, processes and decisions that hasbeen undertaken by an organisation in order to lead towards pre determined growth and change.There are different types of level that are included in strategic management process. Project hasbeen conducted on ALDI. In addition with this report include principle elements and issues thataffect organisational growth. Further report cover theoretical framework with the help of whichorganisation can increase their workplace efficiency. Table of ContentsExecutive Summary ........................................................................................................................1INTRODUCTION...........................................................................................................................3Q1: Report on the company’s current ownership, previous ownership, the current share price,and movements in the share price over the past ten (10) years...................................................4Q2: Core business of the company. Should the company continue with this or should itdiversify?.....................................................................................................................................6Q3: Market forces. Facing market pressures, what will be the future for the business ten (10)years from now?..........................................................................................................................8Q4: What are the “elephants” facing the company?.................................................................11CONCLUSION .............................................................................................................................11REFERENCES..............................................................................................................................121
INTRODUCTIONStrategic management effectively deal with organisation strategic decision that decidecompany long term health. It is mainly termed as a comprehensive plan which is designed to setactions as to effectively meet certain specified goals. In this report formative discussion has beenmade on ALDI which a German family owned discounted supermarket chains. In this reportformative discussions has been made on ALDI current and previous ownership along withmarket pressures and elephants that has been facing by company. Q1: Report on the company’s current ownership, previous ownership, the current share price,and movements in the share price over the past ten (10) yearsIn 1913, a small grocery was opened in Essen, Germany, by Anna Albrecht. In 1948,Albrecht's sons Karl and Theo took over the business and expanded it to four stores throughoutGermany. The stores were called “ Albrecht Discount”. The name “ Albrecht Discount” waseventually shortened to Aldi in the year 1962. In mid -1960's, Company was divided into halfdue to the disagreement on whether company should sell cigarettes. Karl Albrecht controlledstores those were located in south while Theo Albrecht controlled Stores those were located innorthern Germany (Sussman, McMahon and Neale, 2019). The two stores those were termed asAldi Nord sell cigarettes while Aldi Sud does not. The foremost US Aldi store was opened just few years after in the year 1976 in south-eastern lowa. The year 1979, Trader Joe's chain was purchased by Theo Albrecht. Aldi Nord stilloperate Trader Joe's within US. By the year 1999, Aldi operate their business while havinglocations situated in Ireland and Great Britain along with locations in Australia, Hungary andSlovenia. Current there are more than 1600 stores of Aldi across 35 states. It shows that companydoubles their chain that they had a decade ago. As now company is having stores those whooperate their services in thousand of locations in all around the world. It has been seen that bythe end of the year 2022, Aldi plans to operate their business by having 2,500 stores in US. Inaddition with this, it has been seen that company performance is on track that further lead themtowards becoming third-largest grocery in the world by store count by putting behind kroger andWalmart. 2
ALDI witnessed strong growth expansion form starting say after their first debut store inthe year 2001. Company build estimated number of 500 stores across ACT, VIC, NSW, WA,QLD and SA. Within short span of time company place their position in top 10 Australianretailers (Sussman, McMahon and Neale, 2019). It has been seen that ALDI effectively influencegrocery prices and improved the quality as well as perception of private label goods. In additionwith this, company effectively introduced market leading initiatives in Australia. It has been seenthat company constantly look towards new logistics, employee opportunities, property as well asmajor investments in within new stores.3Illustration 1: Sales forecast for ALDI 2010-2020
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