Strategic Management in Aldi: Emergent Strategies and Macro Environment Impact

Strategic
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Different emergent strategies and approaches that are formulated by Aldi in order to maintain
balance within organisation ........................................................................................................3
TASK 2 ...........................................................................................................................................6
Impact of macro environment on the organisational activities and their responses to
organisation.................................................................................................................................6
TASK 3............................................................................................................................................9
Explanation of Aldi strategic capabilities using Porter's Value Chain Model and VRIO model
.....................................................................................................................................................9
TASK4...........................................................................................................................................12
Porter's generic Strategies and Ansoff Matrix of Aldi:............................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
The concept of strategic management is described as a ongoing process that includes
planning of whole organisation, control and monitor all activities and functions in order to attain
determined goals and objectives in effective manner. In the current competitive environment
various changes are happened on regular bases so, it becomes necessary that appropriate strategic
planning is formulate and formulate them in effective manner. It involves setting effective
objectives, analyse internal as well as external competitive environment factors that affect
organisation, evaluate all respective strategies and ensure that these strategies are implemented in
organisation efficiently. In this report chosen organisation is Aldi that is supermarket chain
organisation. It is founded in the year of 1946 by Karl and Theo Albrecht, Headquarter of Aldi is
situated in the Essen, Germany. Respective organisation run 10,000 supermarket stores in almost
20 different countries. In this report different strategic models and approaches that is used by
Aldi is discussed in the project. Various macro as well as micro factors, related to Aldi
organisation is being covered in report. VRIO model, porter's value chain framework, Ansoff
matrix and porter's generic strategies discussed.
TASK 1
Different emergent strategies and approaches that are formulated by Aldi in order to maintain
balance within organisation
Britain face recession at some point of time, in that situation the people of country change
their attitude and habits towards purchasing and shopping, they spent less amount of their saving
on purchasing goods. So in that situation, Aldi provides the better quality products and services
to their customers at low price in order to take competitive advantage within market. But it is the
mentality in the people of Britain that cheap priced products contains low quality. Aldi target the
lower segment of market and provide products as services according to customer's needs,
demand and preferences (Seepana, Huq and Paulraj, 2021). It emerges various strategies and
approaches in order to develop effective strategies to maintain balance between organisational
activities and functions. Aldi conduct various research and development programmes to analyse
all current market demands and know about customers point of view about organization and
formulates strategies accordingly. It facilitates the respective organisation to satisfy customers

effectively and enhance potential customer base. By proper market analysation Aldi can capture
the particular market segment effectively as well as create loyal customers.
For creating balance in cost of organisation Aldi implements lean production working
approach in its operations and functions. It facilitates the respective organization to minimise
cost of production as well as operations (Arend, 2017). If organisation us able to achieve the
cost effective objective then it can accomplish defined objective of high profitability and
productivity.
Lean working system approach:
The concept of lean working system approach is defined as the process that facilitates the
Aldi to eliminate the waste process and elements from manufacturing process and operations as
well as it is able to increase the productivity and profitability of respective organisation. By
implementing lean production in organizational manufacturing process, Aldi can remove or
eliminate the waste element from the operations that are not providing any value to it. Lean
production ensure the continuous improvement and minimize the rate of waste and helps Aldi to
maintain better and effective relation with respective suppliers who provide material to the
organisation for operations. Different type of waste are exist in the production process that affect
the functionality of Aldi (Yu, and Yu, 2021). These wastes are raise due changes occur in the
demand of customers and ineffective allocation of related resources.
Hence, the respective approach ease Aldi to eliminate waste that is not help in
productivity or not enhancing product value at all. Respective organization create balance
between all various operational costs in order to gain high productivity and profitability. There
are some elements that maintain balance in organisation are discussed below:
Continuous Improvement: Continuous improvement facilitate the organisation to attain
all desired goals and objectives within defined time period in efficient manner. It provide
various training and development to improve skills and competencies of employees and allot
different work so they can enhance their versatility (Barney, 2017). It ease Aldi to take
sustainable competitive advantage in the current market. Various effective strategies are
formulated and implement in organisation in order to attain goals effectively.
Just in time: Aldi implements the just in time strategy in its operations in order to
maintain balance in activities. In this process, respective organisation produce products when