Business Strategy Report: ALDI's Mission, Vision, and Strategic Plans

This report provides a comprehensive analysis of ALDI's business strategy, covering various aspects of strategic planning and market analysis. It begins with an introduction to business strategy and its importance, followed by an examination of ALDI's mission, vision, objectives, goals, and core competencies, highlighting how these elements inform strategic planning. The report then delves into the factors ALDI considers when formulating strategic plans, including customer needs, competitive advantages, and corporate integration. It evaluates the effectiveness of techniques used in strategic planning, such as the BCG matrix, PIMS, and Ansoff matrix. Furthermore, the report conducts an organizational and environmental audit for ALDI, along with a stakeholder analysis, and proposes a new strategy. It also analyzes the appropriateness of alternative strategies related to market entry, growth, and retrenchment, ultimately selecting a suitable strategy for ALDI. The report concludes by discussing the roles and responsibilities in strategy implementation, resource requirements, and the use of SMART targets. Overall, the report offers a detailed overview of ALDI's strategic approach and provides valuable insights into its business operations.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Mission, vision, objectives, goals and core competencies informing strategic planning......1
1.2 The factors that ALDI needs to consider while formulating strategic plans.........................2
1.3 Evaluating effectiveness of techniques used in strategic planning.......................................4
TASK 2............................................................................................................................................6
2.1 Organizational audit for ALDI..............................................................................................6
2.2 Environmental audit for ALDI..............................................................................................7
2.3 Stakeholder analysis for ALDI..............................................................................................8
2.4 New strategy for ALDI.........................................................................................................9
TASK 3............................................................................................................................................9
3.1 Analysis of appropriate of alternative strategy relating to the market entry, substantive
growth, limited growth or retrenchment for ALDI.....................................................................9
3.2 Selection of strategy............................................................................................................11
TASK 4..........................................................................................................................................11
4.1 Roles and responsibilities of personnel involved in strategy implementation....................11
4.2 The resources requirements for implementing strategy......................................................12
4.3 The use of SMART targets and its contribution in strategic objectives.............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is essential for every organization to achieve goals and objectives in
specific time period. It is a process to implement and formulate the business plan within
organization process to attain desirable results. The main purpose of business strategy to prepare
the best plan which assist in increasing growth of the company. It is a set of works to achieve
long term objectives in effective manner. Basically is a process to describing vision, mission,
goals and core competencies of the business. It play important role in an organization to get
higher success at marketplace. Without its element a business organization can not run their
activities (Rahbar and Abdul Wahid, 2011). Effective business strategy is more important to
developing its process in market. It define long term planning which may cover 3-5 years. It is a
effective summary that can evaluate the plan and also define that how it is implement in business
activities to attain long term objectives. Present report is based on ALDI, it is a biggest grocery
retail in UK. Currently this company opened their 550 retail outlets at Germany. In this report
different types of policies and techniques are discussed to measure and evaluate the mission,
vision, goals and objectives. Various strategic are adopt by the ALDI to attain higher success at
marketplace. This report include strategic plan which is selected by the company in order to get
effective and attainable end results.
TASK 1
1.1 Mission, vision, objectives, goals and core competencies informing strategic planning
Every business set some important guidelines before start a new business after that they
work on guidelines effectively. This process is more important to define best way to complete all
the tasks which assist in achieving best results. Business strategy is a best process to evaluate the
business position in long term basis (Rothaermel, 2015). This strategy is used by the ALDI to
define mission, vision, goals, objective and core competencies. ALDI is a biggest retail company
which provide top quality of grocery products to its customers to get higher satisfaction by them.
Mission of ALDI: It is a statement which is giver by the every organization to define the main
purpose and aim in order to meet stakeholder expectations. Mission of ALDI is:
 provide top quality of products at low price.
 Enhance market share to attain profitability.
 Attract large number of customers.
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 Get faith and loyalty of customers.
 Increase brand image.
Vision of ALDI: It is a written statement which define future expectation of the company. The
vision of ALDI is to be best retail company by provide best quality of products (Naidoo, 2010).
It is a future path which is done by the company in future in order to improve their performance.
 To be modern and successful organization at global level.
 To become a high growth retailer.
 To offer and provide their products and service at international level.
Goals and objectives: It is an essential for organization in order to attain bets results in a
particular time period. Objectives of a ALDI is attain goals in effective manner. It is define and
measure the progress of the company. Basically it is long term and short term which provide a
framework of a company which is used by the company to evaluate their performance level at
marketplace. Goals and objectives of ALDI are as follows:
 To increase its brand image at global level.
 To offer and provide top quality of products at reasonable price.
 To expand their business at international level.
Core competencies: It is specific term which define by the company in order to attain specific
targets in appropriate manner. The unique and special skills and abilities which assist in
describing business from its competitors at marketplace. It assist in developing their brand image
in order to attract large number of customers in their process. This process of ALDI increase its
profitability at marketplace. Core competences of ALDI is their top quality of products at
affordable price which assist in attaining the end result with effectiveness (Kolk and Van Tulder,
2010).
These are essential to set the business aim and purpose. It play important role in strategic
planning of business organization. With out these factors strategic planning is waste to the
organization to attain future and current objectives.
1.2 The factors that ALDI needs to consider while formulating strategic plans
Every organization prepare strategic plan. It is and effective documents to describe the
aim of the company which is used for focusing on various tasks and abilities to get best goals and
objective in their business process (Meskendahl, 2010). Strategic planning is a process to
manage the whole activities of the company and also evaluate the utilization of the available
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resources (Santos-Vijande, López-Sánchez and Trespalacios, 2012). It define guidelines to
implement the strategy in its process to attain best end results. There are some factors which are
important while preparing strategic plan for ALDI which are as follows:
Contents of strategic plans: Strategic plan is essential for organization in order to achieve best
targets. There are various elements are as follows:
 Mission: The mission statement define purpose of the company and also define the target
which assist in developing the performance (Kim, 2010).
 Vision: It is a written document which define future expectation of the company.
 Goals and objectives: It is a basic term which is set by the company in order to achieve it
effectively. They also define the SMART targets which are specific, measurable,
attainable, real and timely.
 Strategic goals: It define effective goals which are long term and short term in order to
achieve with effectiveness (Saunders, 2011).
 Strategic objectives: In this process the organization set their objectives which are
attainable in present time.
 Accountability framework: In this process the strategic plan must be a part of the
organization structure.
 Future direction of competition: This function of strategic planning define best path and
way which is evaluated by the ALDI to manager their workers. It define after evaluating
competitors plans. This process define future frame work of the company in order to
achieve long term goals and objectives in effective manner. It also define best policies
and procedure which assist in develop their market function and growth level of the
company.
 Needs of customers: In this function company focus on customers demand and wants
because for every organization customers satisfaction is essential to attain best results
(Karpen, Bove and Lukas, 2012). ALDI focus on customers demand and provide them
accordingly. If customers are not happy with company's products so that company can
not able to attain higher success at marketplace. It is very important to company that they
have to provide best quality of products in order to get higher satisfaction by them.
 Gaining and maintaining competitive advantage: The main aim and purpose of this
function to get higher profitability at marketplace. ALDI has best strategic plan which
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helps in attaining aggressive advantage over the competitors in appropriate manner. Best
and effective strategic plan increase the organizational abilities to resolve the business
conflicts.
 Corporate level integration and communication of organizational plans: According to this
function of the strategic plan company have to provide useful information to their
subordinates and managerial level so that conflicts and confusions are reduce in the
business process (Melville, 2010).
1.3 Evaluating effectiveness of techniques used in strategic planning
ALDI use various techniques to develop the strategic planning in order to attain higher
success at marketplace. There are three techniques which are used by the ALDI to get best end
results in appropriate manner:
BCG growth share matrix: This strategy called as Boston Consulting Group which involve two
axes which is market share and market growth rate. In this process there are four groups such as
Stars, Cash cows, Dog and Question mark. These are as follows:
 Dog: It define low market growth and low market share. In this situation company
generate high profits. Business organization reduce cost which is not important to the
company. It also made and produce new and innovative products to attain lot of returns in
effective manner. This strategy is also called as pets (Grant, 2016).
 Cash Cow: It define that products have high market share and low market growth. In this
condition company has to face lower market share but at the same time they meet to
higher market share which helps in attaining and generating lot of revenues in their
organization process.
 Stars: In this factor it define higher market growth and higher market share. According to
this situation company invest lots of money which helps in decision making process
about growth of the market. Question mark: It describe high growth and lower market share. In this situation company
have risk in their process because lower market share evaluate the loss of the business.
The company provide quality of products which is offer to the customers to get best
satisfaction level by them.
Advantage of BCG matrix:
 to assist in understanding investment process.
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 To take effective decision for future time. Simple tool and easy to involve in business.
Disadvantage of BCG matrix:
 more difficult to gather useful information regarding the market growth.
 Low market share define high profitability. High market share define low profitability (Gebauer and et.al., 2010).
Profit impact of market strategy (PIMS): It define effective guidances which is provide to the
company which assist in implementing policies and procedure in their business process to attain
higher success in market place. This is support in ALDI in order to fulfil to implementing
policies and procedure. There are certain facts which are follow by the company:
 business environment cause
 Structure of production process
 Allocation of budget
 development of the strategic plan. Aggressive business position.
Ansoff matrix: In this strategy it is a effective tools which is used by the company in order to
attain best end results. There are four factors of Ansoff matrix:
 Market penetration: It is effective strategy which is used by the ALDI to introduce recent
product in determined market place. It define that how to sell the products in market and
attain target of the company.
 Market development: In this strategy define effective process to start present business in
new marketplace. Which assist in increasing customers in order to use its products. This
is only focus on expansion their business in new marketplace (Gambardella and
McGahan, 2010).
 Product development: This strategy focus on new product in market. Aldi use this
strategy in order to attract large number of customers and keep on existing service users.
 Diversification: According to this strategy company make new products and service and
introduce new market which assist in expand their business and increase profitability
level at market place.
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TASK 2
2.1 Organizational audit for ALDI
In organizational audit of ALDI which is define the strength, weakness, opportunities and
threats. This define strategic position of the company. SWOT analysis of the ALDI:
Strength Weakness
 Aldi is biggest grocery company in
different UK countries.
 They have best business strategy.
 ALDI able to generate higher revenue.
 Provide and offer best quality of
products to its customers.
 ALDI depended on the other countries.
 Geographic diversification is less.
 They have high transport cost(Chen and
et.al., 2010).
Opportunities Threats
 Aldi able to provide best quality of
products at lower cost.
 Set online sales and home delivery
service to its customers.
 They have higher aggressive markets.
 Aldi set weak brand so they they loose
customers loyalty.
Benchmarking: it is a process to compare business process and performance with competitors. It
is measurable tools which evaluate the quality and cost of the products. It is used by the company
to determine the best process and evaluate the productivity in the marketplace.
Value chain: with the help of offering effective products to its customers. It is a set of activity
which is performed by the company in order to attain best end results. ALDI provide b est and
extra service to their customers to increase the productivity of the company and get higher
profitability.
2.2 Environmental audit for ALDI
ALDI use Porter five forces model to conduct the environment audit. This process define
the impact of operation. The Porter five forces model are as follows:
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 Threats of new Entrants: Every organization needs to invest lot of money. In this process
high competitive business is high so that they require more investment (Casadesus-
Masanell and Ricart, 2010).
 Threats of substitute products: Recent time in market various substitute products are
available in market. ALDI is a active business organization to change their quality of
products according to the trends. Aldi set their small stores which provided limited
products to its customers which increase threats of the same products.
 The bargaining power of suppliers: The suppliers have high bargaining power so that
they purchase products in bulk and provide its customers to in order to increase buying
power of the customers and company.
 The bargaining power of buyers: Aldi offer high products because of the competitors are
make same product and provide to the customers at lower price. Some time ALDI do not
provide and getting loyalty of the customers because of they also not provide extra
benefits to its customers. Rivalry among Existing firms: In this factor ALDI face high rivalry from present
organization in common economy. Because many competitors offer same goods and
products at same prices which is enhance the rivalry. Effective promotional tools used by
the company to invite customers.
PESTLE analysis:
 Political factor: The Aldi set their business at global level which is impact on the political
sector. The better political condition assist in increasing the performance of the company
at marketplace (Carroll and Shabana, 2010).
 Economic factor: This factor is related to the demand and supply of the particular
products and service. Slow down of market id very risky for the ALDI to attain
profitability.
 Social factor: This factors is related to the preferences, beliefs of an individuals. Aldi
produce their products according to social demand so that they can able to attain higher
satisfaction level by them.
 Technological factor: This define important impact on company. ALDI set and define
new technologies to expand their business in order to attract more customers over there.
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 Environmental factor: It is important process which is conduct by the company in ethical
way. The operation of company can not provide harm to the environment. They define
both positive and negative on Aldi.
 Legal factor: it define legal rules and responsibilities which is given by the government in
order to increase performance level of ALDI in marketplace.
2.3 Stakeholder analysis for ALDI
Stakeholder analysis is more important for every organization to run their business
smoothly. Stakeholder are involved in the business organization which is support their activities
in order to attain best results. There are some individuals of stakeholder are as follows:
 Customers: They are important for the company who have power to increase and
decrease the market value. They are buy the products to satisfy their needs.
 Employee: These are the group of people which are working to the company in order to
achieve appropriate goals and objectives in best manner (Carney and et.al., 2011).
 Suppliers: It is important who are provide useful raw material to the company to
manufacture the products. They also provide lower quality of products at lower rate.
 Government: It is top authority which regulate some rules and regulation which affect the
organization process. They evaluate the market and make sure that all companies are
related to those policies and policy.
 Investors: They are important ho invest in the business like resources and funds to attain
and run business smoothly. In exchange of this process company provide profits them.
Importance of stakeholder analysis:
 It helps in achieving best opinion from stakeholder.
 It assist in defining roles and responsibilities of important stakeholders.
 It also helps in evaluating the risk which is involve in new business strategies (Campbell,
Edgar and Stonehouse, 2011).
To analysis stakeholder firstly they have to determine the all those individuals which
affect on the strategic planning. Next to define power and interest of the Aldi.
2.4 New strategy for ALDI
In business organization there are some strategies to develop new strategy of ALDI:
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 Mission: Aldi wants to offer and provide best quality of products to its customers which
assist in increase the profitability and market as compare to its competitors. Every
organization have own mission which is helps in running their business activities in
effective manner.
 Vision: According to this statement company expect future aspects because it is a future
process. The ALDI complete their process in order to achieve long term benefits which
are stable in upcoming time.
 Core competencies: Aldi attain their core competencies with the help of offering best
quality of products to its customers. Every company focus on their brand image in market
which define effective and best quality of products at affordable price in order to attain
their unique performance at marketplace (Boons and Lüdeke-Freund, 2013). With the
help of efficiency firm can get competitive advantage in market. It is one of the important
part for achieving success.
 Goals and objectives: In this company have various goals and objectives which are assist
in maintenance their performance at marketplace in order to attract larger number of
customers.
These factors are more important to define new strategy plan for ALDI. It assist in de
terming the best objectives in business organization in appropriate manner.
TASK 3
3.1 Analysis of appropriate of alternative strategy relating to the market entry, substantive
growth, limited growth or retrenchment for ALDI
There are following market entry strategies:
Market growth strategy:
 Organic growth: In this process the business develop their business same as they start
their business in beginning is called as organic growth.
 Merger: In this strategy where two business organization get together and work together
in order to attain common goals and objectives.
 Acquisition:In this process the company but the whole ownership of other organization in
order to attain its goals and objectives (Bharadwaj and et.al., 2013).
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 Strategic alliance: In this process the two are more company share its assets to achieve
appropriate goals and objectives in effective manner.
 Licensing: In this process the existing company giver its authority and trademark to other
company with exchange of some money and fees. The licensor is company and licensee
is other company.
 Franchising: According to this process the company provide and give its trademark and
other its function or facilities to other company is called as franchising.
Substantive growth:
 Related diversification: The process define current and existing production line which
known as related diversification (Astrachan, 2010).
 Unrelated diversification: In this process the organization define diversification which is
different from other company and existing organization.
 Horizontal integration: In this process the company define same production stage in
different organization process which are known as horizontal integration.
 Vertical integration: In this process the organization define various stages of production
in same and common company is called vertical integration.
Limited growth:
 Market penetration: In this process business organization use various strategies in order
to increase their market share which is related to the existing products.
 Market development: In this process the company offer their present products ate various
marketplace which assist in developing the market in order to achieve higher profitability
(Amit and Zott, 2012).
 Products development: In this process the company develop their existing products
according to market demand. It assist in generating more revenues and attarcta large
number of customers in their marketing process.
Retrenchments:
It is important strategy which is used by the ALDI, when they have not proper resources
to run their business function effectively. The company aim and purpose to grow its business but
with out resources they can not able to attain higher profitability in best manner.
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