A Report on Aldi's Purpose, CSR, Ethics, and Organizational Culture

This report provides an executive summary and in-depth analysis of Aldi, a leading retail grocery store. It examines Aldi's mission statement, its approach to corporate social responsibility (CSR) and ethical considerations, and its internal organizational culture. The report discusses Aldi's specific environment, including stakeholders such as customers, suppliers, and competitors, and how these factors influence the organization. Theoretical concepts are applied to analyze Aldi's CSR and ethical practices, including discussions on ethical behavior and organizational characteristics. The report further delves into Aldi's internal culture, identifying its key dimensions and assessing the best-fit organizational culture through a quiz. The analysis reveals Aldi's commitment to quality, customer orientation, and core values of simplicity, frugality, and responsibility. The report concludes by summarizing Aldi's commitment to lawful conduct and responsible actions, highlighting its dedication to ethical and legal behaviors and adherence to corporate social principles.

Running head: MANAGEMENT
Management
Name of the University
Name of the student
Authors note

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Executive summary:
The report discusses about purpose and mission statement of Australia’s top ten retail groceries
store that is Aldi. Discussion of report has been done in context of corporate social responsibility
and ethics. It demonstrates the specific environment of organization by identifying the real factor
conduction of the chosen organization. Furthermore, corporate social responsibility and ethics of
organization has been discussed using the relevant theory and it has been demonstrated in the
context of Aldi. Specific environment of organization has been discussed by explaining the
relevant factors that influences such environment and this involves several stakeholders of group.
Some theoretical concepts are involved for discussing the corporate social responsibility and
ethics. Report also demonstrates the organizational internal culture by using theoretical concepts.
This particular section also involves assessing the best-fit organizational culture by solving the
quiz “Right Organizational Culture For Me”. Solving the quiz has helped in deducing the right
organizational culture that would fit best into the culture of Aldi. It has been analyzed from the
report that Aldi intends to provide the customers with best quality and their values is based on
three principles that is simplicity, frugality and customer orientation. The current study attempts
to sum up the relevant part of internal culture of organization by putting them into theoretical
concepts.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................4
Discussing specific environment of Aldi:........................................................................................4
Corporate social responsibility and ethics of Aldi:..........................................................................6
Describing internal culture of Aldi:.................................................................................................8
Conclusion:....................................................................................................................................11
References:....................................................................................................................................12

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Introduction:
Process of strategic management comprise of process involving strategic implementation,
planning and evaluation. It is required by every organization to have a statement of purpose.
Statement of mission provides viewer what the organization sees as purpose. Mission statement
of organization involves market, customers, concern for public image, philosophy, concern for
growth, survival and profitability, services, products and self-concepts (Peppard and Ward
2016).
Aldi is a common brand of discounted retail supermarket stores and is regarded as low
price grocery leader. They provide a focused range of high quality products at best price to
customers. The mission of Aldi is to provide customers with incredibly high quality grocery
goods at lower prices or discounted prices. Cost leadership are achieved in market due to their
highly efficient operations and this leads to optimizing their profit. Business approach of
organization is based on three core values that is simplicity, consistency and responsibility.
Products are supplied to customers at lower price due to their unique business model. Aldi has
10000 stores across world with its very first store opened in year 1913 (Corporate.aldi.com.au
2017). In Australia, Aldi opened a debut store in year 2001 and it expanded by building its
presence throughout Queensland, Victoria, New South Wales, South Australia and opening 470
stores. Aldi has its own exclusive brand philosophy that has helped in positively influencing the
quality and perception of private label goods and grocery prices. It was the first organization to
introduce a number of market leading initiatives in Australia.

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Discussion:
Discussing specific environment of Aldi:
Specific environment of organization comprise of group, organizations, individual with
whom organization interact while conducting their business activities. The performance and
operations of organization is directly and immediately affected by specific environment factors.
Specific environment of most of organizations include competitors, suppliers, customers,
employees, labor market, government agencies, industry regulators, strategic partners and
interest groups. Stakeholders is often described term of specific environment of organization.
Interest of all major stakeholders is considered by managers’ high performing organization while
taking decisions. This provides organization with several benefits such as successful innovations,
environmental changes, greater organizational flexibility and improved predictability that would
help in reducing the impact of change (Hill et al. 2014).

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Specific environment of organization
(Source: Robbins et al. 2013)
Customers- Customers can be regarded as the organizations or suppliers that in exchange
of money acquire goods and services. Needs and wants of customers influence the type, quality
of products produced by organization. Customers buying high volume of product are able to
influence the price of products and leads to customization of services and products.
Suppliers-Suppliers are the organization to individual who assist organization in carrying
out their operation by providing raw materials and input. Some of the input supplied by suppliers
include financial resources, physical resources, informational resources and business resources.
Availability and cost of inputs, the suppliers determine their quality, and they are able to
influence the services and products of organization (Robbins et al. 2013).
Competitors- Competitors are entities with whom organization compete in terms of
resources. They may comprise of best strategic partners, government agencies. Competitors
influence products and services offered by organization (Grunig 2013).
Strategic partners- They are organization who work with other organization for mutual
benefit. Organization are able to combine resources, share ideas, spread risks and learn from
each other by working closely with their strategic partners.
Interest groups- Business activities are influenced by interest groups in specific areas
such as ethical conduct and impact on environment. Interest of members are served by
organizing the interest groups and they are generally organized as profession, industry, specific
social issue and geographic locality (Tedeschi 2013).

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Aldi has a broad range of cross sections of suppliers ranging from niche producers to
major manufacturers. Suppliers are provided with product specifications that are benchmarked
against market leading household brands. Organization believes in importance of developing
equitable and fair relationship with suppliers and they do not compromise on quality. They
always look for ward of developing relationship with new suppliers.
Some of strategic partners of Aldi includes ZenithOptimedia and they form partnership
with leading brand to produce owned goods. Aldi ensures that quality products are supplied to
customers at best prices. Responsibility of organization is to intrinsically link customers with
nutrition and health in all the products offered to them (Robbins et al. 2013, pp 34-41). They go
beyond mandated legal requirements such as minimizing the potential harmful impacts of
products offered, meeting the recognized standards of safety and health and nutritional benefits
maximization.
Corporate social responsibility and ethics of Aldi:
Corporate social responsibility of organization intends to go beyond their economic and
legal obligations and engaging in activities that are considered good for society. It is expected by
society that organization should act in a socially responsible and ethical way. Stance of socially
responsible and social obligation corresponds with purely economic view that profit
maximization is organization’s only social responsibility. Responsibility of management goes
beyond maximizing profits to producing socio economic view on social responsibility. Ways in
which society are affected by operating activities are considered by organization when they
actively consider social responsible actions. When looking at being socially responsible,
organization are required to evaluate whether their economic performance are affected by social
involvement (Carroll and Buchholtz 2014).

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Competitive and social consequences of social involvement are the main consideration of
organization. Furthermore, ethical imperative can be added by organization’s being social
responsible. Three steps are involved that leads to organization behave in an ethical way. This
involves defining the problem that are intended to be solved, stakeholders identification
influenced by decision and determination of ethical principles. It is required by organization to
recognize how the stakeholders are affected by ethical decisions (Monczka et al. 2015).
Ethical behavior is defined solely on consequence of outcomes as per utilitarian view of
ethics. On other hand, ethical behavior is defined as behaviors that respects and protects the
liberty and privileges of individual as per rights view of ethics. Several factors effect unethical
and ethical behaviors within an organization. Organizational characteristics influences the ethical
behavior within organization and this involves structure of organization and culture of
organization. Mangers can influence ethical behavior within organization by employing high
ethical standards. Ethical actions can be fostered within organization by establishment of ethical
code of conducts that helps in implementation of protective mechanisms and providing ethical
training to employees facing ethical dilemma (Robbins et al. 2014, pp 52-59).
Corporate social responsibility of Aldi is defined as the range of obligations that
organization has towards society. The responsibility of Aldi is to serve community continuously.
It is essential on part of organization to act upon on social obligations to wider community and
customers being a top ten Australian retailer. Production of goods are with respect of workers
and environment. One of the integral part of operating activities and decision-making process
within organization is being socially responsible. The principles of corporate social responsibility
is key pillars of being socially responsible. A binding framework for all the activities of business
partners, suppliers and employees is represented by corporate social responsible principles in

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every area of operations (Monczka et al. 2015). Carrying out operations with due regard for
environment, people, nature would help in achieving long-term success of organization.
Being an international company, ALDI Australia is committed and obliged to do lawful
conduct and act responsible. Factors contributing to economic success of company is recognition
of the fact that organization a large part of society and maintenance of high standards of
corporate social responsibility. Overarching global commitment to values and business ethics are
defined by corporate social principles. Ethical and legal behaviors is defined by code of conduct
that defines core principles that is applicable to employees worldwide. Business interest with
competitors and strategic patterns held by internal employee involving any risk of professional
conflict of interest are not permitted by organization. Employees for avoiding such conflicts must
disclose any potential conflict of interest should disclose with supervisors or higher level of
management. ALDI Australia does not tolerate any act of bribery under any circumstances.
Assurance of products quality is an integral part of all operational activities and Aldi aspires to
provide customers with best value in market and highest quality products at lower prices. Quality
and safety standards of organization considerably exceed the relevant legal requirements.
Organization act in accordance with compliance and committed to fair principle competition for
protecting competition (Zurich 2017).
Describing internal culture of Aldi:
Internal culture of organization can be defined as shared values, principles and tradition
that influences the way member of organization behaves. It relates with interaction of
organization with environment by dealing with key issues such as handling opportunities of
environment, threats that can prosper and survived by organization and managing and integrating
activities within organization. Culture of organization can be defined by encompassing seven

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dimensions and personality of organization is shaped by emphasizing one cultural dimension
over other. Mission and vision of organization is affected by culture of organization (Deresky
2017).
Corporate culture of Aldi is referred to as collective understanding of members of
company. Organization has a strong culture that helps in controlling the internal culture by
considering that trust is basic element of task delegation. Ritual of experimenting within
organization depicts that organization seeks best solution for every problems. Profile of Aldi is to
serve the quality products at lower price to customers. There are certain discipline that are
considered as stick to things and resisting temptations is considered big improvement.
Commitment to goal is underpinned by implementation of strict faith in customer orientation.
Culture of Aldi can be classified by six dimensions that involves process oriented versus results
oriented, job oriented versus employee oriented, tight control versus lose control, professional
versus parochial, pragmatic versus normative and closed system versus and open system
(Robbins et al. 2013, pp 42-44). It has been ascertained that organizational culture of Aldi is that
it has a totally closed system, result oriented, job oriented and there is implementation of tight
control within company. Moreover, Aldi carry all its duties in a way that is parochial rather than
professional.
This section of report involves solving quiz “Right Organizational culture for me” and
gaining personal insights into the adoption of organizational culture that is best fit for the chosen
organization. Understanding culture of organization helps in encouraging teamwork, stifling
initiatives and rewarding innovation. Culture of organization that would be best depends upon
assessment of mangers by interviewing them. Seven statements would be indicating level of
agreement and disagreement using scale. There are seven primary dimensions of culture of

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organization and this involves risk taking, innovation, and outcome orientation, attention to
detail, team orientation, stability and aggressiveness. For two statements, scores would be
reversed and the total score would range from 7 to 35. Scoring 21 or lower would indicate that
managers of organization are more comfortable working in formal, mechanistic, structured and
rule oriented culture. This type of features is mainly associated with government agencies and
large corporations. Lower score would indicate strong preference for this particular type of
culture. On other hand, score above 22 indicate that managers are comfortable working in
flexible, informal, innovative and humanistic culture.
After the quiz is conducted, the scores received by interviewer is 21 and this is illustrative
of the fact that managers of organization would prefer rule oriented culture and they are
comfortable working in formal and structured organizational culture. There is a difference in
culture of organizations and it becomes essential to match the personal preferences of employees
with the prevailing culture. Adoption of well-structured culture would assist organization in
organization the tasks that helps in delivering best quality products to customers. A particular
communication approach would be adopted in light of rule-oriented culture that helps in
competing efficiently with their strategic partners. Behaviors of stakeholders within organization
are facilitated by adoption of mechanistic approach (Fayol 2016). Formal structure would assist
in well integrating and engaging employees. Therefore, adopting a rule oriented, formal,
mechanistic, formal and well-structured culture are considered as best organizational fit for Aldi.
Organizational structure of Aldi provides with leadership approach that helps in fostering a new
culture of doing business that will enable them in embracing diversity, professionalism and
overall success of organization (Robbins et al. 2013, pp 46-47).

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Conclusion:
Aldi is a retail grocery organization that ensures producing customer with high quality
products at discounted price. Organization has been witnessing strong growth in sales and year
on year growth has been recorded. However, there was a fall in operating profits despite rise in
sales. Relationship with suppliers has helped organization in proving best quality products to
customers. When it comes to price, Aldi is regarded as market leader, operation of organization
at international level is highly efficient, and successful that has helped in making organization
economically strong. They are able to maintain strategic alignment with then implementation of
low cost business model and building strategic activities with their partners and suppliers. For
retaining the share of market, it is required by organization to integrate the strategic
sustainability plans and continuous development of target market. In order for organization to
thrive continuously in Australian market, they are required to modify their internal culture
suiting the needs and expectations of stakeholders.

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