Strategic Management for Lidl: Expanding Business in China

STRATEGIC MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
EXTERNAL ENVIRONMENTAL ANALYSIS............................................................................4
INTERNAL ENVIRONMENTAL ANALYSIS.............................................................................7
IDENTIFICATION OF COMPETITIVE STRATEGIES...............................................................9
STRATEGIC DIRECTIONS.........................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

EXECUTIVE SUMMARY
Strategic management refers to managing the company integrity in relation to monitoring
the planning or the company, analysing the data or resources which is used in producing the
products or assessing all the necessary information to helps company to meet its goals. Present
report is based upon the Lidl which is the retailer based industry carrying groceries or household
products in Germany. They are presently located in around 10,000 places across Europe and US.
They mainly carry the tag line as providing higher quality products with less price. They are
planning to expand the business in china which is considered to one of the most developed
country. In this report, it also examined the internal and external factors which causes impact in
expanding the business in china. It also examine various competitive strategies in which the
porter generic strategies is undertaken to gather information through the company working. Thus
at last the strategic directions are applied in respect of undertaking the future vision, objectives
and goals to be achieved in right manner through adapting various methods of expanding the
business in china.

INTRODUCTION
Strategic management refers to the managing the overall activity of the company such as
monitoring the planning of the company, analysing the data which is collected and than assessing
the information to identify better results. The management can be done on the bases of both
internal and external factors. The results are indicated in perspective of determining the strategies
which is undertaking in relation to adapting the effective strategies to promote the business in
right manner (Strategic management, 2019). Present report is based upon the Lidl which is
retailer based industry carrying the super market chain at global level. The concept is brought by
Josef Schwarz in 1930 having having headquarter in Germany. The business is carried by around
3,15,000 employees and also they are operated over 10,000 stores in Europe and US. This report
will includes the matters relating to planning to expand the business in China. Thus, various
factors are identified in relation to determining the internal factors such as by applying Strength
and Weakness or conducting the VRIO or values chin analysis to identify the usefulness of the
Lidl management. It also carries the external matter such as by conducting PESTLE or
opportunities or threats to gather information. Lastly it ends up with applying the competitive
strategies to collect the information and also undertake aspects to determines effective results.
The major challenges which is examined is relating to environment impact as Lidl
company mainly deal in grocery products, thus it is examined in 2030 the planet will had to deal
in producing the high quality food with less utilization of land.
EXTERNAL ENVIRONMENTAL ANALYSIS
In this aspects, the external factors are considered which helps Lidl to determined the
factors which affect their working and such impact can be in positive or negative aspects. It
carries the following:
Political: The impact which arises is resulting to causing the political norms which affects the
company integrity to expand the business in china. As china is engaged with various rules and
regulations and thus they restrict the foreign companies to enter the business in their own
country. Lidl carries the renowned brand image in market and also they provide products to the
customer with best quality at low prices (Ansoff and et.al., 2018). As the issue arise in respect of
not carrying the IP protection security which is difficult for the china people to invest the money
in this company.