Business Report: Analyzing ALDI's Success and Expansion Strategies

This report provides a comprehensive analysis of ALDI, a German retail organization with a significant global presence. The report begins with an introduction that highlights the importance of information in business operations and then presents an overview of ALDI's profile, including its history, product offerings, and global reach. Section 1 of the report delves into key terms used by organizations, such as cash flow statements, customer feedback, feasibility studies, balance sheets, and data mining, providing examples of their application within ALDI. It also covers data security concepts, including integrity, availability, and confidentiality, and outlines managerial actions in case of data breaches. Section 2 examines the factors contributing to ALDI's success, including its increasing market share, focus on customer satisfaction, business expansion strategies, and effective recruitment practices. Furthermore, it assesses the effectiveness of recruitment in supporting ALDI's expansion needs and explores how efficiency has helped the company make positive strides. The report concludes with a summary of the key findings and references relevant sources, including books and journals.

Using
Information

Table of Contents
Introduction .....................................................................................................................................3
Section 1 ..........................................................................................................................................4
1. Terms that use by organization and its example......................................................................4
2. Data security concept...............................................................................................................5
Section 2...........................................................................................................................................6
1. Factors that ALDI success. .....................................................................................................6
2. Effectiveness of recruitment in expansion needs.....................................................................7
3. Efficiency helped in making positive strides...........................................................................8
4. Information sources and overall performance.........................................................................8
5. Company's profit of 4 years....................................................................................................9
Conclusion ..................................................................................................................................10
References......................................................................................................................................11
Books and journals.........................................................................................................................11

Introduction
Information is an important part of studies that collect by researcher for research on
particular topic. It is use by all organization and people in form of data ad knowledge.
Information is use for communication and express through message and mail. It also reduces
uncertainty because through this user of information measure and evaluate uncertainty that may
occur in future so it keeps all information (Zhang, 2016). ALDI is a retail German organization
and it has 10000 stores in 20 countries. Its headquarter in Essen Germany and founded in 1946
by Theo Albrecht and Karl Albrecht. It product is food, beverage, household and sanitary
product. This report will be cover that cash flow statement, balance sheet, data mining, data
security concepts, factor that helpful in success of ALDI, competitors analysis.

Section 1
1. Terms that use by organization and its example.
Cash flow statement :- it is a statement that is a part of financial accounting. It shows
changes in balance sheet and income affect cash. It means that through this ALDI evaluate that
inflow of cash in organization and outflow of cash from organization. This statement include
three types of activities like operating, investing and financing. In organization cash flow
through these activities.
Operational activities includes those transactions that cash is use for convert non cash
items in cash items. Like account payable, depreciation and amortization. So revenue and
expenditure of operation related include in it. Investing activities is those activities that
organization invest their capital in property, plan and machinery that includes in these activities.
So cash inflow and outflow through investing activities that include in it. Financing activity is a
last activity of cash flow statement that includes dividends. Repay of loan etc (Sugimura, Hyo,
Ricoh 2017).
Customer feedback :- it is the best tool of measure and collect information related to
customer satisfaction. So through this Aldi evaluate that customer satisfied or not through with
their products and services. So it collects information through feedback, surveys and improve
their product and services according to feedback and needs of customers. So for take feedback it
uses different sources like web sites, social media etc.
It is very important for business because through this it improves their product and
services for provide satisfaction to customers. And it also gives opportunity to customers for
express their opinions. So overall decision is taken by organization through feedback.
Organization also responsible for take feedback and solve all problems of consumers. So it also
helps in increase profit and sales of organization (Miao, Teoh, and Zhu, 2016).
Feasibility studies :- it is a type of studies that helps in evaluate factors that affect to
organization so Aldi use this studies for evaluate economic, technological and different factors
that create problem. Its main objective is evaluated that project will complete or not.
Organization uses this studies for evaluate risk before invest capital. So project management use
this tool for collect information and study for reduce risk and analyze condition may occur in
future and prevent it.

Balance sheet :- it is a financial statement that ALDI use for make report and include
assets, liability and shareholder's equity. This report makes by organization in every financial
year for evaluate that it has enough assets held or not for payment of liability. It included assets
like cash, securities inventory etc and liability include all current liabilities. Assets are debit and
liabilities are credit in this report. Through this organization knows about financial health of
business and it helpful in compare balance sheet with different year. Organization use this report
for take loan from banks and financial institution (Olsson, and Bosch, 2015).
Data mining :- it is set of large data that helps in get valuable information from available
data. It is a set of many servers and data that helpful in mining and also provide important data
easily. Aldi use this tool for take relevant data from large information that consume less time and
easily get data. Because it does business at global level so it has large data.
2. Data security concept.
It is a process of secure data related to organization all activities and protect digital
privacy and also helps in prevent to access computer, database and websites. Aldi use this
concept for protect data and information from corruption because it has many types of data
related to different field. Like employees data, customers data, primary and secondary data,
profit and loss data etc. so it is secure through use of password, code and bio metric. It protects
from leaks of data because nowadays technology and digitization increase and it increases hack
of data.
Integrity :- it is a principle of data security through this principle Aldi protect data from
intentional and non intentional changes. Integrity helps in prevent users that not authorized for
use data of organization as well as prevent to user of data from make improper and modification
of data. It creates risk of leak data. So this principal use by organization for protect data.
Availability :- it is also a principle of data security that helps in that useful in keep data
and provide data and information in emergency situation for authorized data users like in natural
disaster. It in organization lack of availability present so it attackers easily leak data and do fail
to these principles (Faller, 2017).
Confidentiality :- it provides protection to use data from unauthorized persons and it
helps in only provide sensitive data to valid users of data. So if intentionally leak is not do by
anyone so this principle data and protect from hackers. So for follow all principle of data security

in an organization that it provide training to members for make privacy and secure data and
information.
Mangers do following things in case of fail above concepts :-
Identify cause :- managers of Aldi identify cause in case that data leak. It means that it
find and search reason behind leak of data. Because it very important for identify cause. Manger
is responsible for that how and why leak data and how to get information by hackers. Also
identify that it is does intentionally and accidentally.
Legal action :- manger of organization take legal action for punish to hackers because
data is very important thing for organization and it is also a crime so if it is intentionally done by
employee of it so manager terminate to hacker and also do FIR regarding hackers that they leak
data intentionally and accidentally (Del Negro and Sims, 2015).
Lock down the network :- after failure of principle of data security that manager put
restrictions of device and technologies in organization like mobile, laptop etc. so through these
employees and any members not allow technical devices because it is main root of leak data and
these things create problem. It also makes different policies and rules about protection of data
and provide order to all them for follow it.
Section 2
1. Factors that ALDI success.
Aldi get success through different type of factors that helps in increase their performance and its
business as well. Many things that helpful for organization in getting success.
Market share :- according to given case study market share of Aldi continuously
increase. Its share is increase 6.9 % in UK grocery market that is more than compare to other
organization like wait rose because its share is 5.1. Other organization like Morrison, Asda,
Sainsbury and tesco are present in market but it stables with their market share it means they do
not grow but Aldi grow continuously And around 30 % get growth.
Customer satisfaction :- Aldi focus on customer satisfaction because customers is a base
of business that helps in increase sales and revenue. Through this it got success. For provide
satisfaction to customer it evaluates and research of markets time and time and effectively
understand to their needs and wants and then provides goods and services according to their
choice that it helps in increase customer demand.

Expand their business :- according to given case study this organization opened 76
stores in United Kingdom and Ireland. It does global business with different countries and
provide their products and services to different countries. So through these numbers of customers
also increase and popularity boost (Witten, 2016).
Make strategy :- Aldi make strong and effective strategy for increase their branches in
different country and also make plan for increase revenue and also make plan about customer
and improve product and services so it also helps in got success. Its strategy is established 1000
stores by 2022 in different towns and cities of United Kingdom. So it helps in get success.
Recruitment :- it is also a factor that helps in success because it recruits in large quantity
of people and give minimum hourly rate £8.85 to store assistants and £10.20 in London. So
through these employees do job and engaged with this organization that helps in increase
productivity and profitability in an organization and it gets success.
2. Effectiveness of recruitment in expansion needs.
Aldi is a multinational organization that does business global level with different
countries so it provides goods and services to customers and people of different countries and
recruitment of this organization effect expansion of business. Day by day it expands their
business in different countries and establish stores for cover all area. So it has to recruit more and
more people for manage work and effectively manage all works. So it helps in expand business
(Redlich and Nemzow, 2016).
In this organization many types of department available and branches also present in all
countries. Every performance has need of employees so it has to recruit more employees.
Through given case study, this organization hire large employees and they help in expand
business. For every function of organization has needs of managers and employees as well.
It provides more wages to employees so they also attract through it. It hires skilled and
efficient employees for do work and create new ideas in an organization. In this organization
large numbers of employees engaged and maintain work. They provide satisfaction to customers
because distribution of product is managed effectively. Production, sales, purchase, marketing
and human resource all function of organization as needs of employees and if sufficient workers
available in it so they work effectively and also customer get satisfaction. If customer get
satisfaction so demand of product increase and company has to increase their production and
supply through strong distribution channels. So through this business expansion effective.

In Aldi it increases hiring of employees through give extra wages so employees engage in
organization with their own wish. It provides extra benefits to their employees that it increase
employees quantity so company has benefit that many skilled and talented candidate hire and
they give new and innovative ideas for improve performance and product and services.
Technology increase through new employees because skilled candidates hire and it gives ideas
about adopt technology that helps in increase production and expand business for consume
(Ramachandran and Chang, 2016).
3. Efficiency helped in making positive strides.
Aldi has efficiency that helps in making positive strides. Its adopt smart strategy for
increase market share so for this organization expand their business at global level. It makes
strategy that increase recruitment through give more wages and salary compare than other
similar organization so it helps in hire skilled and efficient employees because workers want to
high wages and benefits from companies. So it gives employees satisfaction from their efficiency
and it helps in make positive strides.
This organization works with their efficiency so that it helps in make positive strides
because its focus on provide customer satisfactions through understand their needs and wants. It
uses different sources for analyze needs that through feedback, surveys etc. and then provide
product and services according to their choice. These things help in make strides and it gets only
behalf of it efficiency (Yeh and Chen, 2018).
It increases their sales through their efficiency in festive season like Christmas. Chief
executive of this organization Matthew Barnes give order to focus on this product that
dependable in festive season. So it also helps in make popularity and maximum peoples purchase
sweets and other things from Aldi that helps in increase their productivity and profitability
(Chandra, Ray, and Goswami, 2017).
Consumer want to that purchase products and get services with high quality on lower
prices and cost so it provides all things according to customers because it has efficiency that
helps in making positive strides. Aldi has so much efficiency and it uses all these things very
effectively that helps in attract customers and increase their quantity and satisfaction as well.
4. Information sources and overall performance.
Aldi performance is continued increase because through diagram that given with case
study it shows that it sales fluctuate between 2014 to 2018. It shows that from in September 2014

sales ODF Aldi was 28 % but to November 2014 sales decrease and it reaches 22 %. After that
from January 2015 sales increase and reach 24 % and then continues decrease to march and sales
rate was 16 %. From July 2015 top November 2015 continue approx constant on 18 %. But it
reduces in January 2016 and reach 12 % and continue increase march 2016 on 14 %. So it
fluctuates approx constant in from may 2016 to February 2017 on 14 %. Sales of Aldi boost in
April 2017 to march 2018 at 18 %. Continuously fluctuation in sales of organization helps in
maintain and these things shows that customer satisfactions and also employees satisfaction is
good and well in period of 2014 to 2018. Business and not reduce and decrease their sales below
the standard level.
Market share of grocery stores in great Britain was 12 weeks to august 2014 was 4.8 %.
In 2015 to 12 weeks that market share was 5.6 %. After that in august 2016 to 12 weeks that
share of markets in great Britain was 6.2 %. In august 2017 its share in market at 6.6 % and in
august 2018 6.6 %. So from above data of market share is increase continuously that helps in
evaluate that Aldi grow continuously and it success (Tafti, Mahmoudsalehi and Amiri, 2017).
Online sales also provide by Aldi that helps in increase sales. So grocery delivery through
online of Aldi is very aggressively increase from 2016 to 2018. It only develops and implement
in five countries that Britain, France, Germany, Switzerland and nether land. In UK 50 %
increase online orders of products in one year that its earn 17 billion pounds. So through online
services this organization market share and profitability increase.
Online services is play vital role in organization because through this service people get
benefit and they easily do shopping with their mobiles and technologies. Customers wants
facility that save money of transport so they do online shopping from anywhere and get fast
delivery at their home. Maximum population of world use technology so they easily get all
information about product like new product, price etc so it helps in save time of customer as well
as organization.
5. Company's profit of 4 years.
Aldi earn profit in 2014 that it turnover was 6,893,257000 pounds its gross profit was
341,096000 pounds, operating profit 260389000 pounds, profit before interest 263,633000
pounds, profit before tax 248,673 and profit of that year is 191,174000 pounds. So total profit of
financial year that 149,288000 pounds.

it earns profit in 2015 that gross profit was 349,743000 pounds, operating profit
255,587000 pounds, profit before interest 255991000 pounds, profit before tax that 212,621000
pounds, profits of financial year was 161986000 pounds and total income of organization that
124137000 pounds (Ododo, Mulholland and Turner, 2015).
Aldi earn profit in 2016 that its gross profit 324487000 pounds, operating profit
211275000 pounds, profit before tax that was 208031000 pounds and total profit of organization
in 2016 that 165,424000 pounds.
Its 2017 profit was 173195000 pounds that is final profit of organization in this year. It grosses
profit was 417303000 pounds, operating profit 265,917000 pounds and it profits before tax and
interest 266312000 pounds.
So Aldi is a multinational retailer company that continue increase their profit through
sales. In four year it makes profit but highest profit was earned in 2017 that is 265.9 million
pounds. It also earns profit in 2016 that was 211.3 million pounds. In 2014 it earns 260 million
pounds and in 2015 it earns 255.06 million pounds.
So through above data of profit that shows Aldi continue increase their profit because it
has efficiency. It has large number of customers that helps in increase their profit in organization.
It also provides different types of products and large numbers of products that increase its profit.
It also attracts 1 million of customers and increase profit and for increase it also plans for open
130 new stores and 5000 jobs vacancy increase in an organization that helps in its customers and
also expand business. It has opportunity because it relationship with customers is very strong
(Smith, and Thanassoulis, 2015).
Following is a average and standard deviation of all above data:-
Conclusion
From above study it has been summarized that many tools use by organization like cash
flow statement, customer feedback, balance sheet for collect data and information that is so much
important for study and reduce risk as well. Organization also use data security that helps in
average standard deviation
2014 341096 358157.25 40799.474395
2015 349743
2016 324487
2017 417303

secure data and protect all data that is important. Data security has three principles like integrity,
availability and confidentiality that helpful; in secure data and it fails so manager take action. It
also covered that many factors helps like recruitment, customer satisfaction and other factors that
helps in success of Aldi. Recruitment also helps in expand business of this organization. It also
covered that profits and sales of organization increase continuously and it helps in increase
turnover.
References
Books and journals
Zhang, X. 2016. Consumer inforamtion search in social media.

Sugimura, K. and Hyo, K., Ricoh Co Ltd 2017. Information processing apparatus, inforamtion
processing system, and device linkage method. U.S. Patent Application 15/621,828.
Miao, B., Teoh, S.H. and Zhu, Z. 2016. Limited attention, statement of cash flow disclosure, and
the valuation of accruals. Review of Accounting Studies. 21(2). pp.473-515.
Olsson, H.H. and Bosch, J. 2015, June. Towards continuous customer validation: A conceptual
model for combining qualitative customer feedback with quantitative customer
observation. In International Conference of Software Business(pp. 154-166). Springer,
Cham.
Faller, J. And at.al., 2017. A feasibility study on SSVEP-based interaction with motivating and
immersive virtual and augmented reality. arXiv preprint arXiv:1701.03981.
Del Negro, M. and Sims, C.A. 2015. When does a central bank׳ s balance sheet require fiscal
support?. Journal of Monetary Economics. 73. pp.1-19.
Witten, I.H. And at.al., 2016. Data Mining: Practical machine learning tools and techniques.
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Redlich, R.M. and Nemzow, M.A. 2016. Data security system and with territorial, geographic
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Ramachandran, M. and Chang, V. 2016. Towards performance evaluation of cloud service
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Chandra, S., Ray, S. and Goswami, R.T. 2017, January. Big data security: Survey on
frameworks and algorithms. In 2017 IEEE 7th International Advance Computing
Conference (IACC) (pp. 48-54). IEEE.
Tafti, M.M., Mahmoudsalehi, M. and Amiri, M. 2017. Critical success factors, challenges and
obstacles in talent management. Industrial and Commercial Training. 49(1). pp.15-21.
Yeh, C.C. and Chen, Y.F. 2018. Critical success factors for adoption of 3D
printing. Technological Forecasting and Social Change. 132. pp.209-216.
Ododo, C., Mulholland, G. and Turner, J. 2015, November. Can Discount Pricing Be A
Comeptitive Brand Strategy? An Evaluation of Aldi. In International Conference on
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