Strategic Management of Lidl: Business Expansion in China

Strategic Management

EXECUTIVE SUMMERY
Strategic management is the process and activity of effectively manage the business
action and operations of that it can survive, sustain and gain competitive advantages form the
market. This assignment is based on Lidl which is international grocery retail company and
operate its business in US and European nations. The report will consist the business expansion
of Lidl in China so the different models, theories and concept used to monitor the impact of
macro and micro factor which affect the business of the firm. Apart from it some framework are
used to monitor the competitive edge from the marketplace.

Table of Contents
EXECUTIVE SUMMERY..............................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Overview of the organisation......................................................................................................4
External Analysis of the company..............................................................................................4
Internal analysis of the organisation...........................................................................................8
Identification of the competitive strategies.................................................................................9
Strategic direction & methods of expansion.............................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management refer to process and activity of setting aims and objectives,
examining the competitive atmosphere, monitoring the internal organisation, analysing plan of
actions and assuring that administration rolls out the strategies in whole organisation. Strategic
management consist strategies for leadership, management and business execution (Aguinis,
Edwards and Bradley, 2017). These plan of action use by the administration of the firm for the
effective establishment of the company so that all the set objectives can be accomplished by the
firm appropriately. This assignment is based on Lidl is a German transnational discount super
market chain. This organisation was established in 1930 and operates over 10,000 stores across s
Europe and US. For the appropriate completion of the report, China is the selected nation in
which the company can expand its business. This report will discuss the brief introduction of the
company and the challenges faced by it. Further, will explain about external analysis by using
PESTEL analysis and 5 Force Framework. To conduct internal analysis, VRIO and Value chain
Malaysians will be used. Identification of competitive strategies and strategic directions &
methods of expansion effective models and theories will be applied.
MAIN BODY
Overview of the organisation
Lidl Stifung & Co. KG is a Germany based international discount supermarket chain and
it is as part of the Schwarz Group and one of the largest retailers in Europe.. This organisation
was founded in 1930 by Josef Schwarz and headquartered in Neckarsulm, Germany. This
company operate its business with the help of 10,000 stores in 28 European nations and the US.
There are 315,000 individual work with it and make their contribution in running the business
and accomplishing its aims and objectives.
Challenges faced by Lidl
The respective company deal in grocery sector and Lidl is international grocery retailer
so there are several kind of challenges which are faced it in different nations. During the time of
expanding business in China, it should follow the rules and regulation of international
government. Some times these kind of things can create barriers for the business of the company