Business Expansion Strategy of Aldi in Japan: A Project Report

Desklib provides past papers and solved assignments for students. This project analyzes Aldi's business expansion strategy in Japan.

Managing a Successful Business Project

Table of Contents
Introduction................................................................................................................................4
Background of the Company (Aldi)...........................................................................................4
Background of the Host Country (Japan)...................................................................................5
LO1: Establishment of Project aims, objectives and timeframes..............................................5
P1: Project aims and objectives..............................................................................................5
Introduction........................................................................................................................5
Definition of Project...........................................................................................................5
Project aim.........................................................................................................................6
Project objectives...............................................................................................................6
Problem statement..............................................................................................................6
P2: Development of the project management plans...............................................................6
P3: Work Breakdown structure..............................................................................................7
Project scope......................................................................................................................7
Project constraints..............................................................................................................7
Types of organizational structure.......................................................................................7
Resources...........................................................................................................................8
Risk Analysis.....................................................................................................................8
WORK BREAKDOWN STRUCTURE..........................................................................10
Gannt chart.......................................................................................................................11
LO2- Conduct small-scale research, information gathering and data collection, generating
knowledge to support the project.............................................................................................15
P4- Carry out small-scale research by applying qualitative and quantitative research
methods appropriate for meeting project aims and objectives.............................................15
LO3: Analysis of the research and communicating Recommendations and Conclusions.......19
P5: Analysis of the research using appropriate tools...........................................................19
P6: Conclusion and Recommendations................................................................................30

LO4: Reflection on value of the project and its usefulness for supporting sustainable
performance..............................................................................................................................31
P7: Reflection on the value..................................................................................................31
Introduction..........................................................................................................................31
Conclusion............................................................................................................................31
Conclusion................................................................................................................................31
Reference List..........................................................................................................................33

Introduction
The assignment is carried out by choosing the organization Aldi. In this regard, it can be
found that Aldi operates there business in many nations. Moreover, the following assessment
has developed to assists the senior management of the company in order to establish their
business in Japan as this is the chosen host country for this specific assignment. The
assignment will show the impact of Aldi on the business environment of Japan. The LO1 is
covering P1, P2 and P3 while this section will be highlighted the major aims and objectives
of the project along with the organizational structure. In addition, the resources, which are
needed for this project and the cost to complete the project properly, will be described briefly.
LO1 will emphasize the Communication Matrix of the project along with the risks, which can
be raised during the project. There are three control techniques and two out of them will be
explained in this assignment. In last part of the LO1, the Gantt chart and Work Break down
Structure will be provide in order to control the time.
P4 will discuss the two methods such as structure observation and questionnaire survey to
gather Quantative data and justify the appropriate one for this assignment. In order to conduct
these process 20 participants will be chosen. P5 will emphasize the two methods such as
Average and Frequency to analysis the quantitative data and justify the appropriate one for
this assignment. In the section of P6, the recommendations will be provided to Aldi based on
the findings. The recommendation will be given regarding the improvement of Economic,
Social and Environmental effects on Japan. In last P7 will provide the reflection of learning
during the project.
Background of the Company (Aldi)
Aldi is one of the common brands of two German families, which is owned by the discount
supermarket chain (www.rethinktokyo.com, 2019). This brand holds more than 10,000 stores
in near about 20 nations while the estimated combined turnover of the company is more than
€49 billion. Aldi is a private company and this is one of the popular companies in retail
industry. There are two headquarters of the company and those are situated in Essen (Aldi
Nord) and Mulheim (AldiSud) in Germany. The common products that are selling by the
company are Food, Beverage, essentials for household and the sanitary products. The
Revenue of the brand is near about €52 million in the past year. In the year 1946, the
company was founded by two brothers Theo Albrecht and Karl Albrecht.

In Germany, Aldi Nord and AldiSud’s have been separated legally and financially since the
year 1966. However, both of the divisions’ names can appear, as they are the single company
with many stores (www.rethinktokyo.com, 2019). Aldi German consists of Aldi Nord’s near
about the 35 individual regional; organizations with more than 2400 stores in Western,
Eastern, and Northern. Moreover, AldiSud’s operates 32 regional organizations with the
1,600 stores. Globally, Aldi Nord operates their business in France, Denmark, Spain,
Portugal, and Poland while AldiSud’s operates in Hungary, Great Britain, Switzerland,
Ireland, China, Australia, Slovenia, Italy, and Austria.
Background of the Host Country (Japan)
Based on JETRO (Japan’s Governmental External Trade Agency), Japan is the second large
retail market globally and the sales value is exceeding US $1.3 billion or 150 trillion yen.
Statistics of Mitsui Fudosan’s 2016 have shown that the total retail in Japan is on the rise
generally (Aldi.co.uk, 2019). Two interesting trends are there in Japan retail industry. Super
market shopping has the long surpassed department stores as the total sales of retail are
concerned. 35% of the Asian tourists from nation such as tourist from Taiwan, China South
Korea, and Hong Kong are travelling to Japan (Aldi.co.uk, 2019).

LO1: Establishment of Project aims, objectives and timeframes
P1: Project aims and objectives
Introduction
The business project focuses on the mission and vision of Aldi Company to expand its
business in the competitive market of Japan. The analysis of the business project is done by
considering the resources and risks associated with the market penetration of Aldi in Japan.
The Work Breakdown Structure and Gantt chart is provided to evaluate the total time taken to
carry out the project evaluation.
Definition of Project
The motive of the project is to provide cost effective and value offerings to customers by
applying simplified supply chain and distribution structure through effective strategic
management.
Project aim
The primary aim of the following project is to evaluate the business planning strategy of Aldi
Company so that they can expand their business in Japan.
Project objectives
The objective of a successful business expansion of Aldi in Japan is
 To evaluate the social, economic and environmental effects of Aldi on Japan
 To increase sales in the competitive market of Japan
 To improve customer retention by applying strategic solutions
 To enhance brand awareness in Japan
Problem statement
Aldi Company can face several problems in Japan as Japan has a strong economy and the
culture of the nation differs from that of the UK or Germany.
Economic impact- Japan holds a strong economy as it is regarded as the third largest
economy across the world. It has the GDP of $5.067 trillion in 2010 and it increased to more
than 0.6% in the current years. The standard of the products in this country is high and
therefore, Aldi can face tough competition from the existing grocery retailers of Japan.

Cultural impact- As Japan is the official language in every schools, it is difficult for Aldi to
establish its business bestowing the English culture among the citizens. The company is
likely to face severe cross cultural differences and this; it can be harmful for the company.
Ethical impact- The Japan grocery retailers focus both on corporate and customer ethics and
it is difficult for Aldi Company to attract the loyal customers into their organization.
P2: Development of the project management plans
List of activities Time consumed (days) Cost/hour rate (£) Total Cost (£)
Procedure of data
collection
7 35 550
Method of Data
analysis
3 30 475
Project finalization 4 30 300
Establishment of
report
6 35 500
TOTAL 1,825
Table 1: List of cost and activities
(Source: Created by the Learner)
P3: Work Breakdown structure
Project scope
Aldi’s expansion in Japan can be beneficial as the organization holds reputation in the retail
sector. The immense discounts provided by the company are beneficial as this strategy attract
more customers towards their brand. Additionally, the company provides simple and
straightforward customer experience bestowing the tag of ‘no-frills structure’. Moreover, the
organization is utilizing innovative and digital solutions to expand their business outside their
host countries, so there is an immense scope that the strategic business planning adopted by
the company can be established successfully in Japan.

Project constraints
The expansion of business of Aldi Company in Japan can face several constraints from
political, technological, environmental and legal aspects. The post-war pacifist constitution of
Japan has raised significant concerns over the past few years and it can severely affect the
trade and foreign direct investments and thus, in turn can harm the business operations of
Aldi Company in this country (Ododoet. al., 015). Japan is famous for technological
advancements and thus Aldi has to play tough in the market environment of Japan. Several
legal regulations are developed by the government so that the labors are not exploited by the
private and public companies. Therefore, Aldi must reduce their working hours for their
workforce so as to remain safe from getting involved into legal infringement actions.
Types of organizational structure
In order to excel as a leading retailer in Japan, Aldi Company must adopt the Matrix
Organizational Structure that is an amalgamation of pure and functional project organization.
As this structure allows multiple projects to be performed with normal functional duties, this
structure is therefore, appropriate for Aldi. Through this, the organization can gain immense
integration of expertise and can acquire project requirements.
Resources
Aldi is successful as it comprises the following as its valuable resources:
Human resources- The HR policy is valued by the workforce of the organization as it states
that every employee should be treated well so that they feel mentally aligned with the
organization (Grimmer, 2018).
Costs- The organization offers maximum discounts on its products in order to retain their
customers, thereby, maintaining the economic profit in a strategic manner.
Communication-Aldi has a huge fan base and customers’ feel free to shop at their grocery
stores within budget (Argouslidiset.al., 2018). The efficient marketing strategy of the
organization has helped them to communicate well with their customers.
Risk Analysis
Week Date of
identification
of risks
Identified
problems / risks
Accountable
figure
Impact
level
Impact on
the
project
Actions taken
to reduce the
risks

17.3.2019 Misunderstandi
ng the
communication
s
Affirmation
team leader
about the
project
H The
management
on the
aspect of
risk
factorssum
marizes the
varsity of
researcher’s
reliability
and
authenticity
of the
researcher’s
data. The
negligence
on the part
of the
researcher
leads to
destruction.
The management
needs to
conductseminars
that would help to
mitigate the
interruption of
miscommunication.
The implication of
proper
communication
helps to engage
maximum labors.
Week 2 26.3.2019 Lack of
economic
investment
Team head
such as the
project manger
M The delays
are the way
of distortion
that helps the
project to
deal with the
efficient
guidance of
potential
warning for
the
accomplishm
ent of the
project.
The inference of
efficient
maintenance on the
part of the
consistency needs
for the management
for adequate
financial investment.
Table 2: Risk factors analysis

(Source: Created by the learner)
Abbreviations used-
M-Medium
H-High
WORK BREAKDOWN STRUCTURE
Seria
l no.
of
task
Name of activity
To analyze the various economic, cultural and social impacts of business
expansions of Aldi company in the competitive market of Japan
1.0 Starting of the project
1.1 Primary research
1.2 Fundamental resource classification
1.3 Relevant questions for research purposes
1.4 Project growth evaluation
2.0 Project research methods
2.1 Data congregation
2.2 Secondary literature research analysis
2.3 Qualitative research and Quantitative research
2.4 Data evaluation
2.5 Concluding the data analysis methods
3.0 Project completion
3.1 Documentation
3.2 Grounding of the project
3.3 Project presentation
3.4 Summarizing the project
Table 3: Work breakdown structure
(Source: Created by the learner)

Gannt chart
Sl. no of task Name of activity Date of
commencement
Duration of task
(days)
Date of
completion
1.0 Starting of the
project
2/11/2019 9 2/11/2019
1.1 Primary research 2/20/2019 10 3/21/2019
1.2 Fundamental
resource
classification
3/4/2019 5 3/7/2019
1.3 Relevant
questions for
research purposes
3/7/2019 10 3/19/2019
1.4 Project growth
evaluation
3/17/2019 8 3/18/2019
2.0 Project research
methods
3/16/2019 6 4/6/2019
2.1 Data congregation 4/3/2019 4 4/4/2019
2.2 Secondary
literature research
analysis
4/6/2019 12 4/11/2019
2.3 Qualitative
research and
Quantitative
research
4/16/2019 10 4/17/2019
2.4 Data evaluation 4/13/2019 11 5/7/2019
2.5 Concluding the
data analysis
methods
5/6/2019 9 5/23/2019
3.0 Project
completion
5/14/2019 6 5/13/2019
3.1 Documentation 5/23/2019 10 6/2/2019
3.2 Grounding of the
project
6/5/2019 8 6/9/2019
3.3 Project 6/6/2019 6 6/16/2019