Impact of Change on Strategy and Organizational Behavior at ALDI

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Table of Contents
INTRODUCTION ..........................................................................................................................3
LO 1 ................................................................................................................................................3
Comparison between two organization where there is influence of change on strategy............3
Drivers of change and types of organizational change...............................................................8
LO2 ............................................................................................................................................9
Ways by which internal and external drivers of change affect leadership, team and individual
behaviour...................................................................................................................................10
Evaluate measures that can be taken to minimise negative impacts of change on organisational
behaviour...................................................................................................................................12

ALDI applying force field analysis to analyse the driving and resisting forces and show how
they influence decision-making................................................................................................16
Apply different leadership approaches to dealing with change in a range of organisational
contexts.....................................................................................................................................17
Effectiveness of leadership approaches and models of change management at ALDI:............19
CONCLUSION .............................................................................................................................20
REFERENCES .............................................................................................................................21

INTRODUCTION
In order to sustain a strong position within marketplace, every organisation is
required to adopt required changes. For getting desired outcomes, business owners
have to understand change and change management in a proper manner. Change is
defined as a phenomenon which leads towards measurable shifts in business position
of an organisation. This measurable shift can either be advantageous or
disadvantageous for an organisation depending upon the type of change initiated by
business (Alavi and Gill, 2017). This assignment is written in context with ALDI which is
a Germany based supermarket chain headquartered in Essen and Mulheim. At present
company is successfully operating at 10,000 stores in more than 20 countries.
Company has a combined turnover of more than 50 billion euros. This report will cover
different organisational examples where change has been carried out in organisational
operation and strategy. Different ways are evaluated in which external and internal
drivers of change can impact leadership, team and individual behaviour. Beside this,
measures are discussed that can reduce negative impact of change. Various barriers
for change are discussed along with different leadership approaches to deal with
change in range of organisational contexts.
Change management is an important aspect in business which is required by
every company. As in ALDI company there were some issues related with sales and
revenue due BREXIT and increased environmental degradation. These issues can be
alter by making changes in goals and plans for future. In this context company is going
to change some of their strategies and operations.
LO 1
Comparison between two organization where there is influence of change on
strategy
CHANGE:
Organisational strategy is defined as a dynamic long term procedure which maps the
direction that will benefits the company in achieving its vision and goals. Basically, it is
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an expression that describes the manner in which a company is required to evolve over
a time period so that its expectations and desires can be fulfilled.
Change in organisational strategy can benefits ALDI towards new strategic directions
which can help the firm in gaining competitive advantage over rival companies. Change
in strategy can benefit a firm in achieving high growth rates and customer base due to
which high profitability can be attained by company.
Change in strategy can be well defined by comparing different organisational examples.
In this regard, ALDI and TESCO is compared with one another (Alkahtani and et. al.,
2011). In case of ALDI, company prefers to take fast decisions so that control on market
can be maintained where as manager in TESCO prefers to watch out the strategies of
rivals before taking a decision so that high advantage can be enjoyed by company. In
this regard, a comparison chart is mentioned below:
ALDI TESCO
Organizational strategy Due to Brexit there are
many political change
which are faced by UK in a
desired manner. Due to this
purchasing power of people
and revenues of company
has also reduced. In this
regard, company has
adopted the strategy to
have small stores where
every employee gives
proper consideration
towards the needs of
customers. To cut their
unusual costs, company
sells only limited items in
their single store. Due to
TESCO believes that to
attain desired outcomes, a
firm is required to sustain a
strong presence in
international market. But
due to Brexit, UK has faced
political changes this has
impacted market share and
profitability of company. To
overcome this change,
Major strategy adopted by
TESCO is to offer those
products to customers
which are in high demand.
Company offers discounts
on that products due to
which customers prefer to
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this products and services
of ALDI are low priced as
compared to other rivals
like IKEA and TESCO.
Other than that, there are
environmental changes
which are faced by
company as people are
getting more concerned
about environment.
Because of environmental
changes, workforce of
company also prefers to
collect limited stock in their
stores so that maximum
rate of return can be
achieved. It is analysed that
company is getting high
benefits as policies and
strategies of company are
changed on a regular basis
in accordance with the
situation. Other change in
strategy carried out by ALDI
is providing garden
furniture, kitchen and
bathroom accessories at
their stores on special days.
As these products are not
usually available on grocery
stores, sales will expand
buy them in large quantity.
Prices of products offered
by TESCO are genuine due
to which sales of company
are good. In order to deal
with environmental
changes, strategy initiated
by TESCO is adoption of
measures that will results in
sustainability. In order to
adopt these change,
company introduces new
products in market which
are environment friendly
and do not impact the
health of individuals on their
usage (Anderson, 2016).
Company has also adopted
market development as a
strategic change where
their existing products will
be sold in new market place
due to which sales and
customer base will be
enhanced considerably.
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considerably.
Operations Due to political and
environmental changes,
Products of ALDI are
available at different
operational stores where
customers can buy them
either by cash or cards.
Distribution system of
company has become
robust where customers are
provided required product
on right place in a timely
manner. This whole
process is managed by
company with the help of
MIS and ERP software that
helps in storing all required
information about
customers. Due to good
performance of
competitors, manager in
ALDI has to change the
operations of company by
modifying them according
to the changing trends. In
this regard, organisation is
adopting modern
technology by updating its
machines and software so
that raw material can be
To reduce the impact of
environmental and political
change, company has
adopted some operational
changes. Operational
processes in TESCO are
organised but there are
some issues which are
faced by company. One of
them is overflow of
inventory that results in high
costs of warehouse. This
problem takes place
because manager of
company orders new stock
on customer demand
without clearing up the old
stock. This has resulted in
excessive wastage of
products. To overcome this
situation, company has
adopted some operational
changes such as adoption
of lean methodology. This
will helps the company in
reducing their wastage
without performing any
complex procedure.
Company is also enhancing
its presence on digital
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