Strategic Management of Aldi: Factors, Issues, and Impact

Strategic Management

Introduction
Strategic Management is continuing planning, analysis, evaluating and assessing all the
mandatory requirements of the company in order to meet with their targets and goals.
Modification in the business surroundings will need company to continuously evaluate their plan
of actions for more growth and success. Strategic Management caters entire direction by
enhancing policies and plans which is designed to accomplish goals and targets. This report is
going to cover about Aldi Company. This company is founded in 1946, Essen in Germany. Aldi
is a discount grocery chain which is started in Germany in 1948. This report is going to explain
about the factors and issues which are faced by the company in context of internal and external
factor. Also, this report is going to explain about the impact of macro and Strategic capability of
the Aldi.
Main Body
ALDI is a global business organisation which is performing its function from last number of
years. Organisation is working with the retail industry where it is performing its functions by
competing with number of competitors and facing different challenges in macro environment. It
is essential for the organisation to scan its macro environment and perform according to it so that
it can achieve better results and maintain decorum according to the requirement. And order to
achieve positive results and meet the requirement of customers there are a number of factors
which are considered by the organisation. In order to scan the macro environment there is use of
pastel analysis which define different macro environment factor and there situation for the
current and past time in context of chosen business firm. PEST analysis of ALDI for the current
and past time is discussed below:
Political factors: Political factors can be defined as those rules and regulations which are
formulated by the government and have to be followed by the organisation. It includes all those
factors which are related to the government norms within the country where the organisation is
working. In context of the chosen organisation it is a German discount super chin where trading
within more than 20 countries in the past time organisation has to free number of issues in order
to manage the brand reputation. Where major political issue faced by the organisation is past
time is related to BREXIT. Under the refund of BREXIT, organisation as to face number of
changes within its policies. Hear it face a weakening of pound as well as changing in
supermarket conditions for stop here organisation deal but formulating appropriate policies and
adjust its profit it by increasing the operation and decreasing cost of products.
In current time, major issue faced by the retail organisation is related to terrorism. It is a
major political factor which impacting the functioning of organisation within different markets.
Under this due to high rate of terrorism within a global world there are low level of opportunities
to the organisation. As, different countries are facing the issue of terrorism which reduced the
growth option for the organisation. In context to this Aldi is using local market for improving its

function and reducing the chances of threats from terrorism in other countries. Companies
improving its products and services within the local market so that it can increase the revenue
without shifting to the other countries.
Economic factors: economic factor can be defined as a factor which is related to the economy of
the area where the organisation is working. It includes all those factors which are associated with
the economic conditions of the country in which form is dealing and selling its production
services. In past time the major economic factors which impacting on the organisation is related
to discounting Trend. As there is large number of supermarket retailers within industry of UK it
becomes a cut throat competition within the market. Here there is trend of high discount in the
products and services where LED has to to face major t of the problems. These problems are
handled by the organisation by reducing the cost of the product and providing wide range of
products with effective quality to the customer in order to reduce the chances of deep
discounting and attracting customers towards the products and services of the organisation. In
current time the major factor which is impacting on the performance of the chosen organisation
is related to inflation within the economy. Inflation acting negatively on the organisational
performance where from has to deal with number of issues due to changes in prices. Order to
deal with this problem the chosen organisation is using appropriate fund management system as
well as inventory management system which help in decreasing the threads from the inflation
within the economy and dealing in effective manner.
Social factor: Social factors are those factors which are related to the society where the
organisation is working. It include number of factors such as changes in the behaviour of
individual their preference culture background and many other. These are impacting directly on
the performance of the organisation and firm has to keep eye on each and every fact so that it can
deal with in the environment where it is working. In past times the major social factor which
impacting on the organisation performance is related to the believes of the customer. This is
because in the past time customer believe on brand where the only prefer their use to
supermarkets. Where Tesco is a single largest seller within the market so it is difficult for ALDI
compete with the competitors within the market. Here organisation use effective strategies of
providing quality products at discounted prices so that it can attract the customer within the
market and achieve better results.
In the current time influence of social media is increasing continuously which is also acting as a
social factor that has to be covered by the organisation. This is because by the you increasing use
of social media platforms there are a number of threads which are related to the industry in
which the chosen organisation is trading. This trend has to be followed by the organisation to
meet the requirement of customer and identify the preference of the customer within the market.
In context to this organisation using appropriate and trained staff to identify the needs of
customer as well as maintaining regular check on the social media so that it can achieve better
results by analysing the customer wants.