Strategic Management Plan for Aldi: PESTEL, SWOT, and Porter's Five Forces Analysis

Strategic Management
Plan

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PART A...........................................................................................................................................1
1. Analysation of detailed analysis that considers PESTEL and SWOT analysis along with
evaluation of resources and capabilities of the organisation.......................................................1
2. Analysis and critical evaluation of competitive environment using Porter’s five forces
model...........................................................................................................................................5
3. Identification and justification of the organisation existing or potential competitive
advantage.....................................................................................................................................7
4. Devise the right strategies and tactical objectives for purpose of attainment of strategic
objectives.....................................................................................................................................7
PART B...........................................................................................................................................8
1. Critical evaluation of different types of strategic directions available to the organisation.....8
2. Justification and recommendation of the growth strategies..................................................10
3. Evaluation of ways and means by which chosen strategies can be monitored to get success
...................................................................................................................................................11
CONCLUSION 150.......................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic planning is one of the management activities which is used for purpose of setting
priorities, focus on resources and energy in order to work for purpose of attainment of common
goals of company (Agwu, 2018). This project report includes analysation of Aldi is German
company which was identified in the year 1946 by Karl and Theo Albrecht. It has around 11,235
stores in different location and operating 20 countries. This project report includes analysation of
impact and influence of the macro environment on an organisation and its business strategies. It
also analyses the internal environment and capability of given organisation along with using
appropriate framework. It evaluates and apply outcomes of using porter five forces model.
Moreover, it applies range of theories, concepts, models and other in order to ensure strategic
planning for given organisation.
MAIN BODY
PART A
1. Analysation of detailed analysis that considers PESTEL and SWOT analysis along with
evaluation of resources and capabilities of the organisation
PESTEL analysis: PESTEL analysis is one of macro environment factors that create a
threat for business. It is one of the tools used by businesses in order to identify factors that create
threat and opportunities for business. This tool is used by businesses to identify factors like
regulation of government, legal legislation, advancement of technology, economic condition,
climate condition and cultural influence. Explanation of these factors in the context of the
company is mentioned below:
Political Factor: It is one of factors that consists different types of rules and regulations
made by firm for business who are operating in that country. UK is one of the developed
countries where there is political stability which provide an opportunity for the business of Aldi.
During the period of covid-19 out break, government of UK has imposed different regulations on
businesses that create threat for them and also increase cost of business of Aldi (Barbosa,
Castañeda-Ayarza and Ferreira, 2020). Brexit has also created challenge for business of Aldi as
government of the UK also made changes in rules during that period. It also created problem for
business o Aldi and does not allow them to operate business in effective manner.
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Economic Factor: Economic condition is also considered as one of important component in
business. UK is one of developed country which has good economic condition which create
opportunity for business of Aldi. Due to this, the income of people is increase which allow them
to buy products from this business. There is also increase in inflation rate in UK due to which
people spending money on food item are decreased.
Social Factor: Social factors are another important factor for business which consist of
demographic, culture influence and belief of people live in that country. Aldi is one of
organisation which has strongest distribution channel in order to fulfil needs of customer. It helps
to provide equal distribution of products in all over country (Bhattacharyya, 2020). Aldi is a
business that create employment opportunity in that country and also fulfilling social
responsibilities. There is increasing health consciousness among people living in the UK which
creates a threat for the business of Aldi as due to this, people do not like to invest in the food
retailing business.
Technological Factor: Technological factors are another important factor for business which
allow them to get competitive advantage in an organisation. UK is one of developed country
which has different advance and upgrade technological tools. Aldi is one of large organisation
which has access to upgrade and advance technological tool which allow them to gain
competitive advantage in marketplace. Aldi is using automated warehouse and different software
which helps them to do more work in less time. It provide them opportunity in market but
increasing use of technology is also create threat for business as sometimes machines stop
working which create negative impact over productivity and operation of firm.
Environmental Factor: Environmental factors are another important factors which consists
environmental condition, climate condition, pollution and other things. There is increasing
awareness of environment among people of UK which create both opportunity and threat for
business. Due to this, there is an emerging ban over use of plastic bags and packaging (Chungyas
and Trinidad, 2022). In order to use another packaging bag, cost of firm also increased. Avoiding
use of plastic bags also create opportunity for business of Aldi as it helps them for purpose of
improving their brand image.
Legal Factor: Legal factors are another important factors for business which consist of laws and
legislation of UK. It is essential for business of Aldi to consider different laws and legislation in
their business while operating in UK or any other country. Following of these laws and
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