Strategic Management: Aldi's Strategies and Analysis

STRATEGIC
MANAGEMENT
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Deliberate and emergent approaches to strategy formulation..................................................3
2. PESTLE analysis of Aldi.........................................................................................................6
3. Porter's Value chain.................................................................................................................8
It can be stated that this is a strategic management technique given by the Michael .....................8
porter that helps the organization in creating the competitive advantage, value by .......................8
Primary and Secondary activities.....................................................................................................8
4. Aldi's previous strategies using porter's generic strategy and Ansoff matrix........................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Strategic management is a continuous procedure of planning, directing, controlling and
analysing all necessary requirements of the organization which helps them to achieve its pre-
defined goals and objectives (Reuer, J.J., 2017). Changes within the business environment
requires continuous changes in company strategies as well in order to achieve success.
Aldi is a brand owned by two German families and thus also known as discount
supermarket chains having approximately 10,000 stores in 20 countries with an estimated
turnover of more than €50 billion. The business activities was split into two separate groups in
1960, namely Aldi Nord having headquarter in Essen and Aldi Sud having their headquarter in
Mulheim (Griffith, G., 2019).
The report will include the knowledge about tools and methods used by Aldi for their
organizational preparation and decision-making. Assessment of macro environmental issues that
has been faced by Aldi in the past. The company picked for analysing the key points of this
report is Aldi stores Ltd trading in UK. The study will include the incorporation of porter's five
force model, theoretical structure of VRIO, SWOT and PESTLE. Apart from this, the study will
also highlight the concept of Aldi's strategies in order to generate recommendations for the
company.
MAIN BODY
1. Deliberate and emergent approaches to strategy formulation
Formal strategies is the visual sense towards important management preparation in Aldi
that emphasizes the benefits of intentional actions. Aldi is famous because they acknowledge the
need and demand of workers of extraordinary quality in order to built better environment of
consumer services to their customers according to their taste, preferences, purpose, dream, values
and priorities. The basic priority for the organization is that the Aldi provide their complete focus
towards the training and development of their workplace (Fadeyi, O., 2018). It endeavours to
provide their employees with the requisite skills and knowledge in order to fulfil their roles and
responsibilities in successful manner and thus also cultivate their workers within the
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organization for the total of their working time so that all the employees are able to maintain
their jobs and interests as well.
Decision-making and strategies adopted by Aldi
In addition to their own organizational attribute, companies have often scheduled their
functions around consumers and competitors. The strategy formulation done by company is
always according to their competition keeping in mind. The two key elements of strategic
planning differ from decision-making of the Aldi (Kanagal, N.B., 2017). Strategies that help the
organization to manage the length of service of company decisions in order to make them
effective even in their longer span of time.
Company utilize long term strategies which are not everyday task for their managers to
generate and take on the spot decisions and create long term approach in order to resolve
conflicts and preparation of profit margin or maximize profitability within the establishment.
However, it has been analysed that day to day continuous actions also affect an organization's
long term plan of action movements. Under such situation, the Aldi should design or implement
new growth strategies, at the time of planning for new strategies for the betterment of the
organization along with taking certain factors into consideration are: Workers: Employees or workers within the organization are treated by Aldi as their
investors as they can be referred as internal shareholders. Aldi support and require hard-
working candidates, sincere towards their roles and responsibilities along with their
fulfilment with complete loyalty and honesty. Root-age: Aldi's biggest strength are their resources and thus behave as driving force for
the company success and also utilize low cost and high quality strategy in order to
become successful in front of their competitors (Burgherr, P., 2018).
 Deputation: Appropriate delegation of activities to each and every individual within the
organization is the strategy that has been adopted by Aldi so that every individual is able
to manage their work and task in appropriate manner. They follow delegation procedure
within the organization.
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