Strategic Management: Analysis of Aldi's Strategic Capability

Strategic Management

Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Emergent approaches to strategy formulation and recommendation of how balance should be
transformed for future.............................................................................................................3
Impact of macro and comparative environmental issues and challenges faced by Aldi
company.................................................................................................................................5
Task 3...............................................................................................................................................7
Analyse Aldi strategic capability by using Porter’s value chain framework.........................7
VRIO Framework...................................................................................................................9
Task 4.............................................................................................................................................10
Porter’s generic strategy framework....................................................................................10
Ansoff matrix........................................................................................................................11
Approach to internationalisation that Aldi has adopted.......................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
Strategic management is considered to be the continuous process of planning, monitoring
and controlling of business activities in such a manner which can helps the company in achieving
its goals and objectives. It included formation of strategy for gaining competitive advantage in
the market. In this report there is an analysis of internal and external environment actor which
can affect the business performances. It helps in achieving organisational gaols short term and
long-term goals. There is a strategic management provides direction to the company so that
which strategies they should have to follow and what changes they have to do in their company
so that customers are being attracted towards their products and services (Afanasieva, and et.al.,
2020). This results in optimum utilisation of resources in company. In this report the organisation
which is chosen is Aldi organisation. This was founded in the year 1946. Company deals in
providing variety of products a service to the customers like retailing sector, groceries etc. this
report includes details of strategic approaches which is used by Aldi organisation. Also, there is a
strategic plan which is maintained for balance in an enterprise. There is a it also covers analysis
of macro environment factors that company faces. At it includes Porter’s model, VRIO and
Ansoff matrix for increasing knowledge of sustainability.
Main body
Emergent approaches to strategy formulation and recommendation of how balance should be
transformed for future.
After the recession of Britain, it is seen on customer shopping. As people have decrease their
shopping habits due to more expenses. Due to this Britain recessions, Aldi company has started
to produce and sell high quality of products and services to the customers at low prices.
However, after selling these products to the customer, they think that low prices products can be
results in low quality products. In the previous stage of company, they target potentials customer
which are ready to buy. To change this situation, company has made certain strategies to target
potential customers in order to maintain organisational balance (Allison, 2019). They have lot
tries to improve their quality of products a service. Company is mainly focusing on their cost of
operation and their quality of services and products. By conducting this they can attract more
customers and satisfy them more. Consumer always searching for high quality of products and
services. So, for maintain that balance Aldi organisation is improving its services. Also, by this

they can gain competitive advantage in the market and build customer loyalty. Company mainly
focusses on this control over cost.
For maintain cost of controls on operations of company, Aldi has adopted some strategic
approaches and strategies that are working lean system. This is one of the effective ways of
achieving their cost of control. By this strategy company can invest less in company and achieve
less.
Lean working system: This is the system in which company can reduce its waste operation by
not affecting productivity of company. Customers always wants value of that products which
they are paying for. By having lean working system, company can able to reduce its waste
material and also save its cost. This method helps continuously in eliminating waste material,
flexible continues improving and maintaining relationship with suppliers (Andreeva, and et.al.,
2019). So, the balancing between productivity, operating cost and profitability is mange by
company through lean working system. There are some of the elements which are discussed
below:
Just in time: This is the first element which is used in Lean working system as in this
company purchases that much raw material which is needed for the product development
because it is so much expensive. However, there is a negative side also because it requires lot of
time and efforts.
Total quality management: These methods build good bonds between suppliers so this
automatically results in improvement in the quality of product and services. In this company
mainly focus on providing quality of goods and services it the customers.
Time based management: To reduce time in operating activities employees must have skills
to perform them in effective manner. For this Aldi company makes continuous improvements in
providing training development sessions to its employees and staff members so that they can
work effectively in the organisation and results in saving time and efforts of them.
Continuous improvements: Employees of a company engage in the regular activities too
improve quality of products and services. This will help the company in retaining for long run
and also its employees retain for long time. Also, company execute and monitor all its
employee’s performance on regular basis (Ateba, and Prinsloo, 2019).
Now there are some of the recommendations which are used by Aldi organisation in order to
maintain its balance of profitability and cosy of operations in future. Company should focus on