Strategic Management: Analysis of Approaches and Environmental Issues

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analyse of deliberate and emergent approaches related with strategy formulation...................1
TASK 2............................................................................................................................................3
Identify and explain the impact of major macro and competitive environmental issues............3
TASK 3............................................................................................................................................6
Porter’s value chain and VRIO analysis.....................................................................................6
TASK 4............................................................................................................................................8
Porter’s Generic and Ansoff matrix............................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic marketing is a method through which an organisation differentiates itself from
the other competitors in the market. It makes business able to focus on the strengths and increase
the level of effectiveness of the business in the market. Business provide effective product and
services to the customers and increase the level of customer base in the market. Strategic
marketing is long term planning for the product and services in the market. The main objective
of strategic market planning is to achieve goals and objectives in the future and enhance the level
sustainability in the market. This report is based on the Aldi, company is the chain of
supermarket, its common brand of two German family owned supermarket. Headquarter of
company is in Essen and Aldi Sud headquartered in Mulheim. Company has revenues of $ 91.9
billion, company has 2,500 strores in western, northern, eastern Germany. This reprot include
information about various strategic approaches used by the company, also Macro environment
and industry issues that Aldi face, also in the end it adds Porter's five force model, and value
chain framework that helps in understanding the business environment.
TASK 1
Analyse of deliberate and emergent approaches related with strategy formulation.
In present scenario, there are various operation functions performed by the company and
Aldi analyse use different functions in the business for the better growth and effectiveness of the
business in retail sector. Aldi use various strategic approaches that helps its business become one
of the largest supermarket chain in the United Kingdom. With the basic analysis of macro
environment of the UK it can be understand the strategic decision making of the company and
how it enhance market share of the business. Aldi start its business of supermarket chain with
only 600 items in the basic supermarket chain. In order to increase market share in the new retail
market Aldi used the strategy of being a low price leader in the supermarket chain. It assist
business of respective company to gain better growth and increase the level of competitive
market chain in new market.
By analysis of low price strategy company enhance its market share and growth in the
new market. It play vital role to attract the customer base in the market and growth of the
business. Various items of the Aldi used by the local residential of UK, also company use
various price policy in the market to manage and perform the strategic approach in the new
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market. The main reason of company to become low price leader is to gain competitive edges
from pre existing organisation such as Sainsbury's and TESCO. This generate various problems
because of local dominate market organisations of grocery store items. The managers of Aldi
allow lower price product to buy in bulk. This helps in better growth of the business and
increase market share so that business can achieve goals and objectives in the market.
Future aspect of Aldi:
In the context of ALDI there are various problems that company face in the market of UK
due the high range of market and huge range of product and services available in the market.
Also there are competitors in the retail market of UK that may have an impact on the growth and
effectiveness of business of respective organisation. ALDI has various stores that managed in
most appropriate manner to complete goals and objectives of the business. ALDI perfom various
task that helps in better growth and management of various stores in most effective manner.
They offer product at lower cost and managing work at lower prices so that it can enhance the
customer base in the market. Moreover, due to new trends in the market of UK there are various
challenges in the retail market of the ALDI it increase the level of competition in the market.
Management of ALDI retain to the same lower cost strategy, so within the future innovative
marketing strategy is implemented by the management of respective company to managed in
most effective manner. This help the business of respective company to offer their items in wider
context so that it can enhance the level of effectiveness in the market.
Balance of organisation strategy plans:
Organisational strategy is an effective planning that helps the business to enhance the
level of effectiveness and growth in the market. In the context of ALDI, organisational strategy
helps the business of respective organisation to get effective growth in the market and increase
the level of financial performance in the market. Below are some recommendation for the
company to manage effective strategic plan:
Ability to measure progress: there are various problems of the business that needs to be
measure in effective manner so that effective solution can be performed. Management of all the
activities in the organisation helps to perform task and its requirement so that problems can be
analysed and gain effective growth in the market. It can help ALDI to work in most effective
manner and increase the level of business growth in the market.
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