Comprehensive Change Management Report: Aldi's Strategic Initiatives

This report provides a comprehensive analysis of Aldi's change management strategies, focusing on implementing new technology and expanding into niche markets. It begins with an introduction to change management principles and applies them to Aldi's vision, mission, and values. The report includes a SWOT analysis, PEST analysis, and risk assessment to identify internal strengths and weaknesses, external opportunities and threats, and potential risks associated with the proposed changes. Strategic objectives are outlined, emphasizing the importance of niche market expansion and technological advancements to enhance business efficiency. A detailed change management plan is presented, addressing situational awareness, organizational attributes, impacted groups, supporting structures, and sponsor coalition. The report also includes a cost-benefit analysis and concludes with a summary of findings and recommendations. The report also includes an overview of Aldi's competitors like Tesco and Marks and Spencer. Furthermore, the report provides a review of the steps involved in change implementation, monitoring and communication strategies.

Change management
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Table of Contents
INTRODUCTION...........................................................................................................................3
SWOT..........................................................................................................................................5
PEST analysis..............................................................................................................................6
Risk assessment...........................................................................................................................8
Cost benefit analysis....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Now a days it is important for business to analyse competitive analysis. It enables in
sustaining for long term. Also, different strategies are developed to bring change within
organisation. change management refers to process to apply various models and techniques
within business (Hayes, 2018 ). It enables in maintaining standards and improving efficiency in
processes. Moreover, through it deficiencies are removed and impact is minimised. The change
selected is to implement new technology.
This report will describe about Aldi mission and vision, competitor strength and weakness,
etc. also, SWOT analysis will be carried out and strategies needed for future is explained as well.
Furthermore, PEST analysis will be discussed.
Vision – the vision is to enable shoppers to live richer lives for less.
Mission – to continually set standards for food retailing and to further expand the market
position
Values – the core value comprises of simplicity, responsibility and reliability. They want to
develop a culture that care on growth and reputation.
Steps to implement change and how to monitor it
Here, first of all areas are identified that require new tools and techniques. Then, a
document is prepared which include what systems, resources, etc. are required. So, accordingly
plan is formulated. In second step schedule is prepared and activities are defined. It gives an
insight about overall change (Doppelt, 2017). Now, for monitoring certain standards are
followed and results are compared with set goals. After each step feedback is taken from project
team.
Minutes of meetings
Date- 23/12/2019
Attendees
Project team and management
Agenda
to give brief overview of change and distribution of roles. Also, when particular task is to be
performed.
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Date- 25/12/2019
Attendees
Project team
Agenda
here, resources are allocated and time frame is decided
Date- 27/12/2019
Attendees
Project team
Agenda
in this plan is developed and decision are taken
Evidence of program
There were several issues that arise in it. the first one financial one. For this manager
stated that created a back up plan of finance. Only limited funds were allocated to project team.
the second issue was communication. So, for this, manager formed a systematic way and format
of communication. The reports were developed and feedback was taken by manager from project
team. it enabled in rectifying those issues.
Strength and weakness of competitors
Tesco
Strength
 TESCO has diversified globally as it has more than 6800 stores in 14 countries.
 It has efficient supply chain network that helps in reducing incurring costs, and having
effective waste management policies. (Cook, 2015)
Weakness
 TESCO apply low cost strategy which may cause low profit margins, although it has
price leader in UK market.
 The company's share price decreases by 9%, it is happened due to decline in its profits.
Marks and Spencer
Strength
 It offers variety of high quality products along with latest industry trends
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 The customer experience of company is strong.
Weakness
 It relies on UK market to generate high profit and sales.
 The expansion in Asian market is failure resulted in loss.
SWOT
Strength
 It has a strong network of distribution as they are having many outlets. This enables in
setting a strong network and providing products to customers quickly.
 Its low cost structure helps in selling goods to customers at affordable price. Through it,
they are able to retain them. (Bradley, 2016)
 It possesses skilled and qualified workforce. Thus, they are having a positive culture and
environment.
Weakness
 Company is having a low operating cash which makes it difficult to manage expenses.
 The company R&D is not so strong and capable enough as compared to competitors.
 Only a few products is having high market share, so Aldi have to depend on it for profit
generation.
 High employee turnover ratio is also a weakness of organisation
Threat
 Numerous new entrants can emerge in retail market. It will lead to rise in competition.
 Change in customer taste and preference can result in changing their needs and wants
 The bargaining power of suppliers can increase in coming years. It can impact on Aldi
operations and operating profits
Opportunities
 Aldi can expand in new markets which will help in generating more revenue and creating
customer base. (Hornstein, 2015)
 The company can install new and advance technology which will enable in enhancing
their efficiency. Through it, costs can be reduced and operating profit is increased.
 They can use social media for advertising and attracting new customers. Aldi can sell
their products in niche market.
Strategic objective 1
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The first strategic objective is Aldi can grab niche market segment which will enable them to
compete with big firms. Also, they can increase customer base and generate profits.
Priority – to identify the niche market segment and entering into those. Then, accordingly
strategies can be developed.
Timeframe – the time require to attain this objective is 1 year.
Responsible person – for this marketing head and suppliers are responsible to enter in attain this
objective.
KPI- Here, by measuring the outcomes with goals and objectives KPI can be measured. It will
be easy to evaluate performance of strategy. (DUECK and et.al., 2018)
Strategic objective 2
The second objective is to install high and advance technology to increase business efficiency.
For this investment can be done into R&D.
Priority – the priority is to find out latest tools and techniques that can be implemented within
business operations.
Timeframe – the time required to attain this objective is 6 months.
Responsible person – for this R&D and operational head is responsible to implement this
strategy.
KPI- the business performance can be measured with results obtained. Here, cost and profits will
be included in KPI’s.
Existing polices and procedure against strategic plan
In order to attain above objective there are some policies formed by company. this allows
them to follow procedure and maintain standards However, there is particular procedure as well
which is followed.
PEST analysis
Political – As Aldi operate worldwide, it may be affected by the global political factors such as
tax rates, stability of country and import duties to get important kinds of outputs etc. so, any
change in it directly impact on firm growth and development. (Donnelly and Kirk, 2015)
Economic- These factors include demands, interest rate, employment rate and so on. Aldi shall
require to consider these factors before taking any decision because any kind of changes affect
on the business decisions making in adverse manner to gain desirable outcomes.
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Social - It includes taste, preference of the general public and other social belief that my affect
the company. As Aldi is operating in more than one country, it is required to consider all such
factors and provides the products according to specific geographical location. It includes
lifestyle, educational background etc.
Technological – It is related to advancement in technology that can impact on company
operations. Any update in IT infrastructure can affect on growth and development of Aldi.
Change management plan
Situational awareness
Change characteristics
The scope of change is by focusing on niche market it will allow Aldi to attract new
customers. they will compete with other firms and generate profits. So, in future they will have a
large customers base (Keane and et.al., 2016). Also, by using technology Aldi operational cost in
future will be reduced. Moreover, business efficiency will increase with this change. In that the
entire staff of company will be impacted. It include all divisions that are finance, HR, marketing,
etc. in this major impact will be on R&D and operations. This is because they will have to
implement change and due to it overall operations are modified. in addition to it, operational unit
is affected in different way. the reason behind is the new process or systems are installed.
Furthermore, job roles of employees are changed. so, for working with new tools and techniques
experts are required. Therefore, in this the estimated time required is 6 months.
Organisational attributes-
It is essential for Aldi to implement new technology. This is because it will enable in
improving business efficiency. Other than this, company needs to emphasis on online selling as
well. With it more revenue is generated and customers are retained. This change will also be led
to decrease in expenses. In Aldi past changes are managed through change management model.
So, company only relied on model to implement change. However, the vision of Aldi is to enable
shoppers to live richer lives for less. But at present amount of change is $ 4000. It is easily
affordable for organisation to invest in it.
Impacted groups
This change will highly impact on various groups that are working within organisation.
Apart from it, staff who are engaged in daily operations are also impacted. for example –
technical expert, operational head, marketing team, etc. the impact is that their job roles will
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change. Now they will have to work with new process or methods. Besides, more responsibility
will have to be followed by them (Altamony and et.al., 2016)
Supporting structure
For implementing a change, it is necessary that a person is given responsibility. This is
because it enables in successful implementation. Hence, in Aldi project manager will be
responsible for doing change. Also, top management will also be engaged in it. The project and
change management team work in hand to hand. The changes are outlines to project team and
then that team develop plan to execute change. The over risk factors are lack of resources, time
management, etc.
Sponsor coalition
The operational manager will be on board for successful change. Also, CEO will monitor
the change. In this leader of operation and R&D team will be impacted. The communication
protocols followed are simple mail transfer.
Strategy analysis
Risk assessment
It is conducted to identify that what risk can occur and how it impacts on strategic plan. It
provides overview about type and degree of risk.
Identify risk Impact Priority Mitigation strategy
Failure in expansion High High By developing
effective marketing
strategies or
integrating with
suppliers.
Ineffective marketing
and communication
Medium Low By using digital
marketing and social
media to connect with
people.
Lack of funds High High By having back up of
funds
Technical error and High Medium It is mitigated by
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failure taking help of experts
and developing plan
Increase in time High Medium By preparing schedule
and working
accordingly.
Shortage of labour Low Low The HR unit will
support in recruiting
candidates.
Anticipated resistance
It is evaluated that apart from marketing and R&D division, there are some other areas as
well that is impacted. The operational department is one of those. Besides this, stakeholders may
also be impacted due to failure of strategy (Bradley, 2016). In this customers, investors, etc. will
have negative impact. The investors might not invest in Aldi. Furthermore, customers perception
may change. This can lead to decline in customer base.
Special tactics
However, in order to manage resistance, there is required to provide some tactical
solution. Thus, for operational area there are some changes made. Also, a systematic plan will be
developed. The staff will be given training that how they have to perform activities and what
action is to be taken.
Alongside, the stakeholders will be given information and report about what is been
done. their ideas and suggestions will be taken and they will be involved in decision making.
However, for customers they will be given.
Cost benefit analysis
Factors Cost Benefit
Infrastructure required $2500 Latest technology $1500
Staffing $1000 New talent $750
Training $500 Skilled labour $300
Total $4000
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CONCLUSION
It can be summarised that Aldi competitors are tesco and Marks and Spencer. There are two
main strategic objectives developed that is expansion in niche market and using technology. The
change management plan includes many elements.
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REFERENCES
Books and journals
Altamony, H. and et.al., 2016. The relationship between change management strategy and
successful enterprise resource planning (ERP) implementations: A theoretical
perspective. International Journal of Business Management and Economic
Research.7(4). pp.690-703.
Bradley, G., 2016. Benefit Realisation Management: A practical guide to achieving benefits
through change. Routledge.
Cook, N.D., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Donnelly, P. and Kirk, P., 2015. Use the PDSA model for effective change
management. Education for Primary Care.26(4). pp.279-281.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
DUECK, B., Oracle International Corp, 2018. Order management system with order change
management. U.S. Patent 10.074.114.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management.33(2).
pp.291-298.
Keane, T. and et.al., 2016. Microsoft Technology Licensing LLC, 2018. Visualizers for change
management system. U.S. Patent 10,002,336.
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