Business Operations: Leadership and Management Analysis of ALDI

This report provides an in-depth analysis of business management and operations within ALDI Group, a multinational supermarket chain. It defines and compares the roles of managers and leaders, highlighting the differences between management and leadership by applying various theories such as trait, behavioral, and contingency theories. The report examines situational contexts and explains how theories like situational leadership, systems leadership, and contingency theory support ALDI's growth and sustainable performance. It evaluates the strengths and weaknesses of different management approaches within ALDI's work environment, critically analyzing the utility of various leadership theories and suggesting improvements. Furthermore, the report identifies key approaches to operations management, explains how operations management contributes to achieving organizational objectives, and evaluates the role of leaders and managers in improving operational efficiencies. Finally, it assesses the factors within the business environment that impact operational management and decision-making, analyzing how these factors affect the business and wider community, and critically evaluates key approaches to managing operations within ALDI.

Understanding and analysing business
management and operations
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Contents
Introduction......................................................................................................................................4
TASK 1............................................................................................................................................5
1.1: Define and compare the roles and characteristics of both managers and leaders,
highlighting the difference between management and leadership (P1).......................................5
1.2: By applying a range of theories and concepts of leadership and management, analyse and
differentiate between a leader’s roles and a manager’s functions (M1)......................................7
TASK 2............................................................................................................................................8
2.1: Give examples of at least two different situational contexts and examine how the role of a
leader and the function of a manager is applied in organisations (P2)........................................8
2.2: Explain how theories such as situational leadership, systems leadership and contingency
apply to the organisation and how these have supported growth and sustainable performance
(P3)..............................................................................................................................................9
2.3: Evaluate the strengths and weaknesses of different management approaches to situations
within the work environment of your selected organization (M2)............................................11
2.4: Within the context of your selected organisation as an example, critically analyse and
evaluate the different theories and approaches to leadership discussed above in terms of their
purposefulness and utility. Identify any leadership gaps and suggest which leadership
approach would work better for the organisation and why (D1)...............................................13
TASK 3..........................................................................................................................................14
3.1: An introduction to the key operations of your selected organisation.................................14
3.2: Within the context of leadership and management, identify and explain the key
approaches to operations management and the role which leaders and managers play (P4)....14
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3.3: How operations management contributes in achieving organizational objectives? Explain
with supported examples (P5)...................................................................................................14
3.4: With the help of suitable examples, evaluate the role of leaders and managers in
improving efficiencies of operational management to successfully meet business objectives
(M3)...........................................................................................................................................14
TASK 4..........................................................................................................................................28
4.1: With the help of suitable examples, assess the factors within the business environment
that impact upon operational management and decision-making by leaders and managers.
(P6)............................................................................................................................................28
4.2: Analyse how different factors affect the business environment and wider community
(M4)...........................................................................................................................................30
4.3: Critically evaluate the key approaches used for managing operations in organisations and
the associated roles played by managers and leaders (D2)........................................................31
Conclusion.....................................................................................................................................32
References......................................................................................................................................33
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Introduction
The entire report includes the information about the ALDI Company which has a chain of
supermarkets and operates its business in almost 18 countries with approximately 10000 stores.
Managers and the leaders are the main essentials of the company as they are responsible to carry
out the various activities and lead the business towards success. The role of the leader and the
function of the manager are important to be defined clearly so as to get effective results. They
apply certain approaches and theories to make the functioning of the company better and
appropriate. Managers and leaders use tools and techniques for handling the operations of the
business.
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TASK 1
Introduction
This report is based on the role of the leaders and the managers in the success of ALDI Group.
They have certain characteristics which are necessary for making the business successful.
Leaders and managers adopt certain theories and approaches for smoothening the business and
obtaining positive outcomes. The management of the ALDI Group is self-driven and is focused
on the appropriate management for obtaining the desired result.
1.1: Define and compare the roles and characteristics of both managers and leaders,
highlighting the difference between management and leadership (P1).
Managers of the company play the role of managing the operations as well as employees of the
company, whereas leaders play the role of leading the entire organisation and the business. The
roles of the managers and the leaders are different from each other and are explained as follows:
Leadership Management
 A leader leads the entire organisation.
 The leader designs aims and vision to
deliver the information about the company’s
functioning and the requirements to the
employees.
 They provide direction to the
employees to achieve the desired goals and
objectives of the overall business (Lussier and
Achua, 2015).
 The company is presented by the
leaders and the strategies formulated by the
 Manager manages the resources and
activities of the organisation.
 The manager employs the best
appropriate candidate for the organisation.
 The performances of the employees and
the company’s resources are managed
effectively by the managers so as to get
effective results.
 The performance of the business is
evaluated by the managers and effective
strategies are formulated to make the business
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manager are executed by them to get effective
results.
 The leader of the organisation is
confident enough to succeed the business,
fulfill the designed commitments, and maintain
a positive and good work environment.
 They apply their creative ideas for
motivating the employees.
 They have the solutions to difficult
situations and the ability to lead the
organisation in all respects.
more profitable.
 Managers of ALDI have the required
confidence to make wise and effective
decisions.
 They are self-motivated towards
achieving the desired goals and objectives of
the company (Sharma, and Jain, 2013).
 They have the ability to manage the
resources of the organisation. Their
communication skills enable them to interact
effectively with the employees and the
customers.
There are certain functions of management which are performed with the involvement of the
employees.
Planning: It includes the formulation of the plans for effectively handling the business activities
and operations.
Organising: Organisation of the resources available is ensured to implement the designed plans.
Controlling: The actual performance is differentiated from that of the set standards and
strategies are formulated by the leaders and the managers to control the outcome.
Directing: The employees are directed by the managers and the leaders to improve their
performances (Epitropaki, et. al., 2013).
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1.2: By applying a range of theories and concepts of leadership and management, analyse
and differentiate between a leader’s roles and a manager’s functions (M1).
The function of manager of Aldi Role of a leader in Aldi
 Designs the business goals.
 Analysis the available resources of the
company and manage them to reach the desired
outcomes.
 Budgets are prepared and expenses are
managed accordingly (Wang, et. al., 2013).
 Strategies are designed to attain the
goals and direct the employees’ performances
to gain effective results.
 Full utilisation of the available
resources of the company.
 Design plans according to the designed
budget plan (Kark and Shamir, 2013).
The managers and the leaders work according to the designed theories and approaches as it
provides direction to perform their roles effectively. Trait theory helps the managers and the
leaders to successfully apply their skills and traits for effective management of the operations.
Behavioural theory enables the managers and the leaders to set criteria for maintaining their
behaviour in every situation. Contingency theory helps the managers and the leaders in
maintaining good relationships with all the employees and improves their performances to the
best possible level (Day and Antonakis, 2012). Theories and approaches are the guidelines which
are followed by the managers and the leaders to get desired outcomes.
Conclusion
From the above report, it has been concluded that the leaders and the managers play an essential
role in the functioning as well as the success of the business. Managers formulate strategies and
the leaders follow the path for effectively implementing the strategies. Management functions
are effectively performed with the positive involvement of the leaders.
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TASK 2
Introduction
This report includes the information about the various types of decisions taken by the leaders and
the managers according to the changing business environment. Different situations are handled
by the leader with the help of certain theories and approaches to get positive outcomes.
2.1: Give examples of at least two different situational contexts and examine how the role of
a leader and the function of a manager is applied in organisations (P2).
The success of the ALDI group largely depends on the role of the leader and the function of the
manager and there is a positive link between the two. The application of the knowledge and
skills of the managers and the leaders ensures effective carrying out of the operations. The
different situations of the business environment affect the decision making of the leaders and the
managers of ALDI Group (Montgomery, 2012). They are explained as follows:
Slow Under this situation, the company functions in slow mode. The business
functioning and the decision-making process is slow. This ensures effective
results to a large extent as the situations are appropriately analysed and decisions
are taken accordingly.
Moderate Under this situation, the business functions moderately and gentle
implementation of the strategies is ensured to gain positive outcomes.
Quick Under this situation, the business functions at a faster pace. This is where the
leaders and managers have to handle the situations according to the fast-changing
business environment. Decision making and work process fasten to get quick
results (Jokisaari, 2013).
Formulation of strategies as per the changing business situations is the function of the manager
and guiding the employees to work as per the formulated strategies is the role of the leader.
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2.2: Explain how theories such as situational leadership, systems leadership, and
contingency apply to the organisation and how these have supported growth and
sustainable performance (P3).
Application of the relevant theories and concepts is quite important in case of ALDI group for
the improving the overall performance of the business and for achieving the objectives. It helps
in enhancing the overall performance of the employees and the company. Different theories can
be explained as follows:
Situational leadership: Under this type of theory, the leaders react according to the changing
situations of the business. The skills and knowledge are applied by them for getting effective
solutions to the difficult problems. The changes are analysed and strategies are formulated
accordingly. Different situations are handled in different ways for the effective functioning of the
business. Situational leadership enables the leaders to handle all situations and problems and
ensure sustainability as well as growth (McCleskey, 2014).
Systems leadership: Under this type of theory, managers and the leaders focus on the policies
and rules of the organisation. For making the business effectively, they mainly focus on the
systems of the organisation and ensure the smooth running of the business. The rules and policies
are designed for the betterment of the business which when implemented by the leaders gives
effective outcomes and sustainability in performance.
Contingency theory (Task or relationship orientated approach): Under task-oriented
approach, the tasks which are required to be performed for meeting the objectives are focused on
the leaders and managers. Relationship-oriented is an approach which focuses on the motivation
and satisfaction level of the employees and the team members. This builds team spirit among the
team members and enables to enhance the overall performance and ensures growth.
Chaos theory and management by objectives: This theory focuses on determining the future
results. The leaders and the managers lead and manage considering all the future aspects of the
business. Management by objectives is the method adopted which enables the management to
manage and handle the work according to the designed goals and objectives of the company.
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This provides a clear direction to the management and leaders to perform activities (Giltinane,
2013).
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2.3: Evaluate the strengths and weaknesses of different management approaches to
situations within the work environment of your selected organization (M2).
Situational leadership:
Strengths Weakness
 This approach enables the organisation
to handle all types of situations.
 Helps in maintaining the reputation and
the image of the company in different
situations.
 Managers and the leaders are able to
get knowledge regarding different business
situations.
 Lack of properly understanding the
situation leads to the adoption of ineffective
measures.
 Leaders take decisions which affect the
operations and performance of ALDI Group.
 Ineffectively applying the model
influences the results of the business.
Systematic leadership:
Strengths Weakness
 The business functions systematically
with the appropriate application of the policies
and rules.
 This approach enhances the
performance of the company in all respects.
 Formulation of policies is a time-
consuming process.
 The growth of the business is restricted
to the application of the policies as success
limits in the boundaries of the rules.
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Contingency leadership:
Strengths Weakness
 Good relations are built with the
employees to motivate them and improve their
performances.
 Positive relation with the employees
helps the leaders to enhance the performance
of the entire business.
 Ineffective relationship with the
employees leads to the increasing conflicts in
the organisation.
 Activities of the business are affected
due to the high focus on maintaining
relationships.
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