Business Strategy Report: An Analysis of Aldi's Strategic Approach

This report offers a comprehensive analysis of Aldi's business strategy. It begins by outlining Aldi's mission, vision, goals, and core competencies, emphasizing the factors influencing strategic planning and the effectiveness of business planning techniques. The report then delves into an organizational audit using SWOT analysis, followed by an environmental audit employing the PESTLE framework. The importance of stakeholder analysis is discussed, and innovative strategies are explored. Furthermore, the report assesses the appropriateness of alternative strategies and proposes selected strategies for Aldi. It concludes by examining the roles and responsibilities of individuals in strategy implementation, the resources required, and the contribution of SMART targets. The report provides a detailed overview of Aldi's strategic approach within the competitive retail landscape.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1 Mission, vision, goals and core competencies of Aldi..........................................................1
1.2 Factor need for producing strategies plan.............................................................................2
1.3 Effectiveness of technique for making business plans..........................................................3
TASK 2............................................................................................................................................4
2.1 Organisation audit of Aldi.....................................................................................................4
2.2 Environment audit:................................................................................................................5
2.3Importance of stakeholder analysis........................................................................................6
2.4 Innovative strategies .............................................................................................................7
TASK 3............................................................................................................................................7
3.1 Appropriateness of alternative strategies..............................................................................7
3.2 Select strategies.....................................................................................................................8
TASK 4............................................................................................................................................9
4.1 Roles and responsibility of individuals.................................................................................9
4.2 Resources need for implementation strategy......................................................................10
4.3 Contribution of SMART targets for strategy implementation............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisation establish various strategies that helps for achieving goals and objectives.
With the help of this planning, company make their vision, mission, goals, objectives and core
competencies, this helps for achieve profitability in long run. Management play crucial role for
organisation performance. Employee play major role for attain business goals and objectives.
These strategies are helpful for maintain goodwill and productivity in long run. This report is
based on case study of Aldi, it is one of largest supermarket chain that operated approx. 10000
stores in 18 countries. Stakeholder also play crucial role that helps for making company policies
and procedures. In this report, various models are elaborated that helps for identify organisation
strength and threats.
TASK 1
1.1 Mission, vision, goals and core competencies of Aldi
Strategies help to achieve business goal, objective, mission, vision, and core
competencies. Business enterprise has made various policies and procedures that can largely
influence their profitability and revenue. Aldi mission, vision, gaols, objectives and core
competences are mentioned below:
Mission: Every company set goals that can help for achieve their mission. With help of this
statement, business can easily identified their product range, competitors, prices and also
customer need and wants. Cited company mainly focus to maintain strong relationship with their
large number of target customers and provide better products and services, this helps for earn
client loyalty.
Vision: This statement describes roadmap of company. With help of this factor, organisation has
given maximum effort for development of economy. Cited company main focused to their brand
element, they want to innovate various new products in all over world, this helps for increase
their goodwill and profitability.
Goal and objectives: It is necessary for every company to made targets and objectives that can
help for achieve profitability and success in short period of time. Goals are short term plans
whereas objectives are long term in nature. The main goal and objective of this cited organisation
is to develop and improve their business in long run and also want to became a successful retailer
among all country. Aldi mainly work to increase their market shares that helps for achieving

profits and growth in long run. They work for providing training and development programme to
their workers so it helps for encourage their motivation level and productivity.
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Core competencies: Company appoint those workers to have basic knowledge and skill relate to
particular field, this helps for business profitability. These employees are creating honest
relationship with their large number of target customer. Cited company workers generate better
quality products and deliver services to their potential client , this can help for attain targets and
objectives in near future.
1.2 Factor need for producing strategies plan.
With the help of strategic planning, an organisation has made policies and procedures that
help for decision making process. Aldi made various strategies that are helpful for company
profitability, every worker has to work according to this strategy and achieve objectives.
Workers can use full utilisation of resource this helps for reduce wastage of material. Factors
that are considered when formulation of strategies are mentioned below:
The industry: This consideration is very important for every business enterprise. With help of
this factor, company is easily evaluated their market size and composition, growth, development,
market penetration, competitor product and future threats, this all help for achieving growth and
maintaining goodwill in near future.
The opposition: Through this factor, company has easily identified their competitor condition in
large market segment This element is also considered at time when organisation implement their
plans and procedures. There is various competitor of ALDI in market place such as TESCO,
SAINSBURY and MORRISONS. Company mainly focus to see their competitor conditions and
working method, this can help for attain success and growth in near future.
Strength and weakness: Company assess their strength and weakness with help of SWOT
analysis factor this resource helps for formulating strategic planning. Business has analysis their
internal elements that helps for achieving effective growth and success in long run. Employees
has right to take pat in decision making process this helps for attain goals and objective of
company.
1.3 Effectiveness of technique for making business plans.
Company has made various techniques that helps for developing their plans and
procedures. Aldi has use BCG factor that help for making long term strategies. These are divided
in four parts that are mentioned below:
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Stars: It describe high market share and growth. Cited company want their large market
share and growth in large segment of industry. This helps for achieve maximum profits in long
run.
Cash cow: It describe low market share and growth. Cited company mainly focus for
their competitor condition so this helps for get high profitability and success in near future.
Dog: It include less market share and growth. This affect company productivity and
goodwill so they are not able to operate in long run and goes for liquidating stage. They want to
be manufacture products with low cost.
Question mark: It involve low market share and high growth. Company has innovate
various products and deliver services according to need and want of customer. If company
market share is low in near future it implies that their condition is worse.
Advantage of BCG matrix: With help of this matrix, company provide various innovative
products and deliver better quality services. Some benefits are given below:
 Company has produce their products on a proper timely basis.
 This matrix is easy to construct so mostly business has adopted.
 Through this factor, company has largely focus for various innovation techniques.
Disadvantages:
 It is not necessary that customer is attract on the basis of market development and growth
rate.
 Sometime company low market share and growth implies high performance and
productivity.
 In this matrix, large segment of market is not covered.
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TASK 2
2.1 Organisation audit of Aldi
With the help of SWOT analysis, Aldi has assessed their organisation audit. It identifies
internal and external factor that inherited in business enterprises. In internal assessment, strength
and weakness are analysed whereas external assessment, opportunities and threat are examined.
Through this assessment, it is also consider company strategic positions, plans and procedures
that helps for achieve goals and objectives. It helps for cited company to make better
productivity for fulfilling needs and wants of customer. Organisation SWOT analysis are
mentioned below:.
Strength:
Aldi is one of largest supermarket chain in UK which are operated in all over world. Business
establish various policies and programme that can help to attain goals and objectives in near
future. They also focus for made better strategies policies and establish their product at standard
price. This cited company operated to work at domestic as well as international level that helps
to attain better productivity and growth in long run.
Weakness:
The main weak point of this cited company is that various competitor coming to operate similar
stores in all over world. Sometime their workers are not have basic knowledge . So, they are not
able to produce better quality product. Their transportation and logistics cost is also high as
compared to other competitors.
Opportunities:
Aldi used various promotional tools that help for promote their product in each corner of
country. Company is able to generate high quality commodities and deliver better services to
their target customers. They also provide online and home delivery facility.
Threats:
Various retailer is also produce similar products and operated in all over country. Inflation
problem affect company productivity because they are not able to provide various employment
opportunities to large number of people, they face various financial crises and it impact of
economic development (Verbeke 2013).
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2.2 Environment audit:
Environment audit is very important method for analyse organisation working
procedures. PESTLE method greatly helps for screening all business environment. Aldi has
greatly focused for PESTLE that helps for analyse their business activities and operations exist in
environment. These are as follows:
Political factor: This factor mainly affects working of cited company. Government has made
various policies, rules, procedures, taxies and imposed some legislation for company working,
this affect their productivity and profitability. Aldi provide various employment opportunities to
large number of workforce so they can operated in all over country.
Economic factor: This factor mainly affects the organisation working methods. Company has
works for economy development and also focus to their price structure, quality. They produce
those goods that helps for fulfilling need and wants of large number of potential customers. The
two factors largely help for company growth and profitability that is diversification and
internalisation.
Social factors: Every company profitability is much depended on their customer preferences,
taste, behaviour pattern, demand pattern etc. People from UK has able to purchase high quality
product so this cited company provides those goods in large number, this affect profitability and
growth in long run.
Technological factor: Company has largely focus for various technology advancement
software, this helps for produce innovative products and deliver better quality services. They
largely use machine equipment that helps for attain greater productivity in long run.
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Environment factor: This factor influences business activities and operations. Company
establish their production process in different part of country so more customer are attracted for
purchasing it.
Legal factors: Company consider various rules, regulations and other laws that help for their
manufacturing process. They identify customer needs and wants then according to this they
produce products. Cited company face various problems relate laws and legislation, it can
adverse effect their working procedures.
2.3Importance of stakeholder analysis
Stakeholder play important role to identify company goodwill in large market segment. It
consists enterprise, investor, customer, employee, trade union and other investor that helps for
development and improvement of economy. Government, unions, community, supplier and
creditors are all knows as stakeholder.
Importance of stakeholder analysis that helps for planning and formulation of strategies are
described below:
 They use various method that help for better communication process.
 They adopt various suggestion and advices from another stakeholder
 They are able to assess individual reaction relate to particular business.
Process of stakeholder for Aldi are mentioned below:
 The first process is to analyse those individual that give their effort which effect the
business activities and operations.
 The second process of stakeholder analyse is to easily identify the interest and power of
personnel that exist in company environment. Organisation provide various facilities to
large number of their workforce.
 The third step of stakeholder analyse is that they are able to understand the worker skills
and competencies that exist in organisation.
2.4 Innovative strategies
Business enterprise has created effective ideas this help for fulfil l customer needs and
wants. Cited organisation has mainly focus for design various attractive products and goods that
help for achieve better productivity and profitability in near future. If business produce various
innovative products and deliver valuable services to their large number of customers this help for
improve and develop strategies. Different customer have different need and wants so this cited
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company mainly focus for fulfilling it. It provides various innovative and unique products that
attract most of customers (Pughand Bourgeois III 2011). This help for increasing business sales
and profitability and also improve brand image.
Aldi has used various new technology advancement software that help for produce
different and innovative products which meet demand and wants of large number of customers.
It is largest supermarket chain which works for retailing sector and produce various products and
goods that are essential for customer needs. Cited company adopt various policies and
procedures that assist to maintain strong relationship with their customers. Manager has
established eco-friendly environment in their enterprise that help for workers to work with full
efficiency and productivity. Various tools and techniques adopted by this cited organisation that
help for achieve profitability and productivity (Ang 2011).
TASK 3
3.1 Appropriateness of alternative strategies
Aldi has used various alternative strategies that help for development and growth.
Different kind of strategies that are mentioned below:
Market entry strategies: With the help of this strategy, it is easy to define company positions
and situation that exist in market place.
Organic development of growth: Every company need to development and improvement in
their business enterprise then they can specify organic development.
Merger: In this activity, various companies are merged together for achieving same goal; and
objectives. Workers are work with full efficiency and effectiveness.
Acquisition: In this concept, a single organisation has adopted full ownership for purchasing any
particular business enterprise.
Strategic alliance: Different companies has uses another business licence that help for use
stakeholder and trademark.
Franchising: In this concept, company has open their various franchises that are doing similar
businesses.
Substantive growth:
Related classification: It is necessary for every business enterprise to classify goods that re
related to heir production process.
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Unrelated classification: Company make unique diversification as compared to other business
is termed as unrelated classification.
Horizontal integration: Company has right to involvement with other business a same
production technique.
Vertical integration: If large number of business has entered in various production methods in
same firm it is termed as vertical integration.
Limited growth:
Market development: According to this concept, company sell their existing products and
goods in new segment of market.
Product development: Company has design that products according to need and want of
customer.
Market perpetration: As per this concept, company has provided their existing goods in
existing market. They used various promotional tools that help to promote their products and
offer various discount.
Retrenchment:
Liquidation: Aldi use this policy, when their business has wind up and sell all shares.
Turnaround: This help for those business enterprises that largely faces various crises in term of
finance stability. So, through this approach, an enterprise has work for converting into profits.
3.2 Select strategies
In respect of various perspective on market place, Aldi has used technology advancement
software that help for produce innovative products and goods. This company has used better
integration facility in order to achieve goals and objectives of enterprise. They mainly focus to
those location that give maximum productivity and profitability. Cited company mainly work for
improvement and development of new innovative products and procedures. Organisation
generate this goods that help for fulfil l demand and need of large number of customer. Trade
union also play important role for getting better productivity and profitability in company. The
main motive of this cited organisation is to expand their business in large segment of market.
They also maintain their relation with other retail industry that produce similar commodities, this
help for a gain competitive advantage over other. Various association also help for company to
make innovative product or goods which enhance customer satisfaction level. This cited
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company has able to participate in expansion and diversification (Alsoboa and
Aldehayyat,2013).
TASK 4
4.1 Roles and responsibility of individuals
Strategic implementation plays very important role for achieve business profits. Manager
mainly focus to maintain healthy relationship with their subordinates so workers has do well with
full efficiency and capacity. Company arrange training and development programme that
enhance the knowledge and skill of workers relate to particular field. It is responsibility and duty
of worker for making strategies this help for formulating and implementation procedure. The
personnel must concentrate to their role and responsibilities (Agyapong and Boamah 2013). It is
responsibility of CEO of company to communicate all their policies, rules and strategies to their
large number of workforce so this helps for attain goals and objective in better way. Employee
feel comfortable to easily convey their ideas and messages to other workers, this will improve
and develop relationship between them (Aithal 2016).
It is necessary for workers to take some roles and responsibilities that helps for
formulation and implementation of policies and procedures and also focus to maintain records.
Employees mainly focus for making future strategies that help for gain targets in effective
manner. Government has imposed various legal duties and legislation rules that affect working of
company. Employees has work according to this rule and regulation. In hierarchy of
organisation, roles and responsibilities are allocated on a priority basis. Manger and worker are
working together in order for achieve same goal and objective. Organisation also assist to
identify proper rule and regulation that help for workers for formulating and implementation of
strategies. Workers can work with full capacity and efficiency, this helps to increase
motivational factor. So, company attain their targets and objectives in near future.
4.2 Resources need for implementation strategy.
There are various resources that help for formulating and implementing of strategy, those
are as follows:
Human resource: Cited company consider human resource that helps for formulation and
implementation of strategy. Organisation productivity and performance are much dependent on
their workforce. It is necessary for business to appoint those HR that have sufficient knowledge
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