BUS6002 Strategic Management: Comprehensive ALDI Case Study Report

This strategic management report analyzes ALDI, a global grocery chain, focusing on its strategies, challenges, and the impact of its macro and micro environments. The report uses PEST analysis to evaluate political, economic, social, and technological factors affecting ALDI, including Brexit, terrorism, inflation, changing consumer preferences, and technological advancements. Porter's Value Chain is applied to assess ALDI's activities, while VRIO analysis examines its resources and capabilities. The report also discusses ALDI's generic strategies and Ansoff Matrix to understand its growth strategies. It highlights ALDI's low-price strategy, focus on exclusive brands, consumer orientation, and decentralized management, emphasizing its efficiency in management and operations for cost reduction and competitive advantage.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PEST ANALYSIS.......................................................................................................................4
Porters Value Chain.....................................................................................................................6
VRIO ANALYSIS.......................................................................................................................7
PORTERS GENERIC STRATEGIES........................................................................................9
ANSOFF MATRIX.....................................................................................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Strategic management is a procedure of planning evaluating and analyzing all the
requirements of the organization in order to accomplish their aims and targeted goals. Changes in
the organization environment will required to evaluate and measure their Strategies and plan of
action in order to develop and growth of the organization. Strategic management provides
direction and control to the company in order to enhance policies and strategies that are made by
managers in order to achieve their targets and goals. In this report there is explanation about
ALDI Company. This Company is develop in 1946, Essen in Germany(Fei, 2020) . This is a
grocery chain that is developed in Germany in 1948. Also, so this report is going to evaluate and
describe about the obstacles, issues and factors which are faced by the organization in regards of
external and internal rounding. Also, the impact of strategic capability and macro environment of
the company.
MAIN BODY
ALDI is a global business organization that is directing their function and operations
from last so many years. Company is operating with the retail market place where they perform
their functions by competing with different organization and they are facing several kinds of
challenges in the environment of macro. It is much required and important for the company to
analyze and evaluate their surrounding of macro and operate on the basis of in order to achieve
their targets and get more opportunities for the company and maintaining the environment of the
company. ALDI company change has grown to involve several numerous locations around the
globe which include more than 1600 in the United State. ALDI companies spending $1.9 billion
in order to remodel their existing outlets and another dollar 3.4 billion to develop or build 800
new ones outlets over the upcoming years. The organization represent and announced that they
will emphasize vegetarian, fresh, organic, and vegan items in the globe. The company ALDI is
reputed and known for their low prices strategy and no-frills store design. The reason behind
their growth is their price is so low and the quality of the products also very good that is why
they become successful in the market. The organization concentrating on catering amended
quality of the goods at a very low prices there are some key elements of the low price features of
the plan of action and strategies which is limited range price change policy exclusive brand
products. These are the policies or strategies which are very important for the company. the
company are focusing on exclusive brand products and form a partnership with more capitates
manufacturer in order to produce their own brand products. They also want to reduce the cost of
the product. Business strategy is also relies on the consumers orientation Framework. The
company is focusing on the requirements and desired of the consumers and gives their so much
attention in order to develop the loyalty of the consumers. ALDI company considered from the

perspective of the consumers and caters so many benefits to the consumers. ALDI company
initiate a slow step in order to expand the market. They will open trial outlets and examine the
profit before the launching other outlets in that area will .That means the company use
decentralization management strategy. The company is very different in regard of their Strategies
and method of implementation. The company is featured with extreme efficiency of
Management and operation that is rely on the cost reduction loss. The organization uses some
planning in order to formulate their strategies firstly the define the mission and objectives that is
related to the strategies after that they identify their competitive start the day in order to gain
competitive advantage and then they implement there is strategies in order to get better
outcomes. Strategy formulation need and company to analyze and identify the perfect strategy
where it fits into the industry.
PEST ANALYSIS
The company are adopting so many Strategies and planning in order to meet with the
requirements of the customers and to get several kinds of opportunities .in this report to evaluate
the Macro surroundings of the company the report is going to consider pestle analysis that
describe different macro surrounding factors and their circumstances for the past and current
time in context of selected company. Pest analysis of the chosen company for the current and the
past time is mentioned below:
Political factors political factors are those factors which can be described as the rules and
obligation that are developed by the government and experience required for the company to
follow this. This will going to define each kind of factors that are connected to the norms of the
government within the nation where the company is operating . in regards of selected company it
is a German discount supermarket. they are trading in several nation in the past time. They are
facing several kinds of problems and issues in order to spend their business and to manage their
brand image major political problems which are facing by the company e is related to the
BREXIT. Under this issue they have face numerous changes in their policies and their rules.
Examples like fading in Pounds as well as modification in circumstances of supermarket. So
maintaining these kinds of challenges in company increase the operations and productivity of the
company and decrease their cost of the products. In current time the major issues or problems
that are faced by the company is related to the terrorism. This is something which are very major
issue for the company and that create negative impact on their operations and functions of the
organization stuff under this because of extreme rate of terrorism in the global environment there
are low level of success and opportunities for the company. As there are several kinds of
companies who are facing several kinds of issues which are related to the terrorism and these
things will reduce the growth and success for the efficiency of the company. Eldora companies
using local marketing in order to expand or develop their functions and operations quality and to
overcome the possibilities of risk factors and threats from the terrorism factors. There are several
kinds of organization which are developing and improving their products and services in the

local market in order to raise or increase the revenue of the company without expanding their
business in other Nation.
Economic factor: economic factors are those factors that can be described as a economic of the
nation where the company is operating stop it involve all those kinds of factors that are
connected with the economic conditions in the form of dealing and selling their product and
services in the countries and in the organization .In past time the major issues which is connected
to the economic factors that create impact on the company is related to the trend of discounting.
There are several competitors of Supermarket retailers in the market place of UK and it becomes
major threat for the organization (Gofuku and Lind, 2020) .Here, there is the trend in the
market which is related to the high discount of the products and services where LED has to face
going through with several issues and problems these kinds of issues are managed by the
company in context of overcome or minimize the cost of the goods and buy catering used Range
of goods and services with the amended quality of the goods to the customer in order to
overcome the possibilities of discounting. This is strategies help the company to attract
consumers and attract opportunities towards the company and product and services which is
provided by the company. In current time the major issues or factors that create impact on the
performance of the company is related to the inflation in the prices of the product within the
economy first stop inflation is a factor which create negative impact on the organization and on
their performance and create several kinds of issues in context of productivity and profitability of
the company (Sharma and Zachariah, 2020). To deal with this kind of issue the company is
applying suitable fund management system and inventory management system that support them
to overcome the threats and risk factors that is connected to the inflation rate in the economy and
dealing with that in a very appropriate and effective manner.
Social factors: social factors are those kinds of factors that are associated with the society where
the company is operating. These involve numerous kind of factors like modification in the
behavior of the person and their taste their background their culture and there are several kinds of
more. These things create impact on the productivity of the company and performance of the
organization. It's become much required for the company to keep their eyes on the Trends and
every factors so that they can manage and deal with these factors and changes which are arising
in the environment. In past time the major factors that is connected to the social is the believers
and the taste of the consumers. These factors create impact on the organization of operating level
because in past time the consumers are more into beliefs and the brands where they only prefer
supermarkets and low price value. In the market there are several competitors for the company so
it's become quite difficult for the company to deal with the changes which are arising in the
company or in the market. So here, the company applied some effective Strategies and plan of
action in order to provide good quality of goods and to satisfy the society in order to create large
customer base in the market and to improve their outcomes and image. Social media trends is
increasing or decreasing constantly that is considered as a social factors for the company because
by increasing the Trends of social media platform create numerous threats that are connected to

the company. This Trend has to be considered or followed by the the company in order to
accomplish their goals and meet the requirements and needs of the consumers and also to
analyze the choice and preference of the consumers in the market . the companies using effective
strategies in order to Grab more opportunities and higher train the staff in order to identify the
needs and requirements of the consumers and to satisfy them.
Technology factor Technology factor and that factor which involved the Rapid modification in
the technology that has to be influence or considered by the company in order to upgrade their
performance and image in the Marketplace. The ALDI Company analyzes and identify that for
growth and development of the company it is very required to adopt the Technologies. In this
error there are several kinds of technological modification arise in the market and because of
these changes the company faced several issues (Ellis,Higgins and Simhan, 2020). In the past
time they using amended technology in the market and in order to manage the experience of
customer through the traditional Technologies. currently the company is using artificial
intelligence because as this is the best and advanced technology that is used by any company in
order to maintain their performance and solve the issues in a very effective manner. In the
current time business environment of any company faces several types of eril in order to provide
amended quality and to fulfill the requirements of the customers in this there are several kinds of
changes with this related to the online trading of the goods and services because it is very
difficult for the company to manage their supply chain using offline and online mode. So to
minimize these kinds of problems a company use a very amended in find a strategy and that is
digital marketing or social media platforms. Social media platform considered as Facebook,
Twitter, Instagram, and many more in order to attract the customer in the Marketplace.
So from the above information it can be analyzed that aldi is using effective and
appropriate strategy in order to increase their activity and development in the market in order to
deal with macro environment factors. This analysis is very helpful and supports the business to
identify their external factors which create impact on the business so that they can overcome this
business and grow their business and get more opportunities for the organization.
3. Using Porter’s Value Chain framework, critically analyze Aldi’s strategic capabilities?
Porters Value Chain
Value chain model by Michael porter's describe the activities and operations that take place in
the organization and Associate them to analyze the competitive advantages of the organization.
Porter's value chain Framework involved two kinds of activities that is primary and support
activities.
Primary activities: these are the kinds of activities which are directly concerned with enhancing
and rising product and services. This also includes operations, marketing, sales and
services ,inbound logistics and many more.

Inbound logistics: in this all the procedure which is associated to getting storing and distributing
the inputs in the company
Outbound logistic: In this they transfer the goods and services to the consumers. This activity
involves few things like storage collection and distribution system.
Operations: There are several alteration operations that change inputs into outputs that are sold
to the customers.
Marketing and sales: these are the procedure that is used by the company in order to influence
the climb to purchase from the organization rather than their competitors.
Services these are factors that are associated to managing the cost of the goods and services in
order to provide amended quality to their customers.
Support activities
Procurement this is the activity that involves identifying and analyzing negotiable cost. This
procedure is done by the organization in order to get opportunities and best quality resources
which are much essential to operate in the market.
Human resources management: in this activity influence some functions like training
motivating giving rewards to their employees.
Technological development these are the activity which are considered or connected to handling
the process of information or data in order to secure the organization and develop the knowledge
base of the organization(Müller Lude and Hancock, 2020).
Infrastructure: infrastructure and the very important and support system of the any organization.
In this the functions that allowed the company to handle their routine activities and functions.
there are some required and necessary infrastructure that is used by the company in order to gain
more competitive advantages and some benefits like legal administrative general management
and many more.
ALDI company follow few steps in order to evaluate and analyze the value chain of the
organization. Firstly the organization identifies the activities of the functions for each and every
primary activity after that they are identify support activities (Zupančič, Filipič and
Gams,2020). Primary activities include direct and indirect Quality Assurance and support
activities include human resources management outbound logistics hand in many more. After
analyzing and determining the functions the company will going to evaluate the connections and
the associations between the values that is determined by the organization.
VRIO ANALYSIS
Vrio analysis of any organization will identify and look at each of their internal resources one by
one in order to measure and identify the sources which are very beneficial for the company in

order to their growth and development. Analysis also provides competitive advantages for the
company in order to gain success in the market.
Valuable
Financial resources the analysis of the company show the financial resources of the company
are much valuable for the organizations because these resources support the company to increase
their productivity and game several opportunities in the market and maintain their financial
stability.
Local foods according to the analysis of the organization the local food products are also much
required and valuable resources because they are represent the quality of the organization.
Employees as employees are the most important part of the organization in every circumstances
of the company and to gain more benefits or positive outcomes for the company so that is why
they are much precious and valuable for the company.
Patents: these are also very precious for the company because these patents allowed the
organization to trade their products and services in the market without any boundation or
interference in the company.
Rare
Local foods the local foods are presented by the organization is not rare because these kinds of
foods are trade by several organizations and easily available in the market.
Employees: employees are very rare for the company because they have the print mind set and
behavior in the company and the training session which are provided to the employees show that
they are extremely skilled and trained that is why they are rare.
Patents the patents of the company are there because patents are the legal authority which cannot
be easily available or accessible in the market.
Imitable
Financial resources these resources which are used by the company are much costly so it cannot
be emitted by the any competitors for any company because sometimes it’s difficult for the
organization to for this financial stability(Mulolli, Boskovska and Islami,2020).
The local food products of the company are much low price in its can easily limited by the
anyone because as they are low cost and easily accessible in the market.
Employees the employees of the company also limited by the other company because as they
have also the power to train the employees and develop their skill in order to get positive
outcomes so so they are imitable.

Patents of the company are much difficult to imitate by anyone because they are legally
registered by the government and no one can access these patent or copied these patents.
Organized
Financial resources of the company are much organized as compared to the other resources.
The resources which are used in the company are in a very appropriate and systematic way and
use some effective strategies in order to invest the money in appropriate or correct place in order
to gain positive outcomes.
4. Critically analyse Aldi’s previous strategies using Porter’s Generic Strategy framework,
and the Ansoff Matrix.
PORTERS GENERIC STRATEGIES
Porter's generic strategy these strategies are the structure that was founded by the Michael
porter's in 1984 stop this Framework is applied by the company in order to analyze how an
company can get more competitive advantages and opportunities by choosing the appropriate
strategy. The Michael porter's generic strategies focus on few strategies that help the company to
gain positive outcomes and that are below mention
Cost leadership strategy is focusing on cost (Rǎdulescu, Williams and Cavanagh, 2020).
Also this is strategy involve raising and attracting a more advantages of competition by reducing
the value of the product. This is strategies is acquired by the company in order to gain more
opportunities and competitive advantages. the major aim of applying this strategy of framework
to manage and maintain the position of the leadership in the market by applying efficient and
effective value change management. This Framework also caters and allowed the company to
expand their market share by targeting the lower people in the market.
Differentiation this method is most common method which is used by any company in order to
develop and enhance the competitive advantages (Sahoo, 2020). The aldi company uses this
Framework in order to gain or achieve more success in the market and achieve their targeted
goals. This also helps the company or permits the company to spread their business and gain
more customer base by providing the unique goods and services in the market.
Focus strategy this is strategy motivate the company to concentrate on their resources by
spreading the pointed segments. When the company game for adopt the focus strategy they
caters particular targeted market and base their competitive benefits on the market domain. The
elder company use this Framework in order to reduce the value of the product and provide the
best value for the customer in order to maintain and create a huge customer base and get more
success for the company.

ANSOFF MATRIX
Ansoff matrix is a strategic tool that is formulated to help the company in context of decision
making and to gain competitive advantages for Stop The ansoff Matrix skaters some strategic
choice to the organisation that is part of development diversification market development in
market penetration. There are few strategies that is used by the company in context of ansoff of
matrix and these strategies are below mentioned:
Market penetration : this is strategy used by the organisation that help the company and look for
the development of the existing products in the market where the company are existing and
already operating in that area . this is strategy is the capacity and capability of the production and
also help the company to increase their market investment .by raising the production capability
in the organisation will going to support the organisation to meet with the customer desired and
requirements in the market area. By applying this strategy the organisation can also raise their
investment in the market area and also increase their growth and development area. This strategy
also support the organization to reduce the operational cost in order to increase the the
competitive cost of the product.
Market Development - In market Development the company makes some strategies of launching
their products for the growth in the new market. After this the company the company invests
some money in the Development and research area to know the customer needs for product.
Then Development and Research area will work on analyzing the culture, behavior of the
customers, their trends. They work according to it in the different market areas. There are some
advantages of Market Development like company will find out the new customer needs in the
market. From this there is an increment in the brand awareness in the customers.
Product Development - Product Development means when the new goods and material are taken
in the company for the organisation's growth in the market is known as Product Development
(Lewin and Campani, 2020). The Company ALDI provides their product development in
different dept. to change the current products with launching the new products with the help of
new technologies like development and research through change in the quality of the product.
The ALDI company will be going to collaborate in strategic partnership in search for the better
options for the product development’s
Diversification is the term that is refers to the development of the organization. When a
organization includes or develop a new product in the new market then diversification becomes
much essential for the company because as it format the company to make the product more
effective and successful in the market (Lamerton, Mielke and Brown, 2020). It also helps the
company to gain more competitive advantages of the product in order to remain much
competitive in and innovative and potential in the Marketplace.

CONCLUSION
From the above mentioned report it has been analyzed and concluded that strategic management
is very important for the company. It helps the company to formulate strategies in order to
achieve their target and goals. Strategic management also helps the company to identify the
internal and external factors which create impact on the company. This report explain about the
Macro environmental factors that create impact on the company for stock micro environmental
factors considered pest analysis in order to identify the external factors. Also this report explains
about the answer of matrix and analysis in order to identify the valuable and precious products of
the company. Ansoff Matrix helps the company to identify the most competitive advantages in
order to grow and develop in the market. There are explanation on porter's generic strategies that
help the company to focus on cost of the product and how to differentiate their product in order
to produce unique and rare products in the market. These all strategies help the company to gain
positive outcomes and effective results in the market towards their growth and development.

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