Strategic Planning for Aldi's: HND Business Strategy Report (Unit 7)

This report provides a detailed analysis of Aldi's strategic planning, addressing key aspects such as its mission, vision, objectives, and core competencies. It examines the micro and macro environments, including a SWOT analysis and Porter's Five Forces. The report also covers stakeholder analysis, alternative growth strategies, and the justification for the selected strategy. It explores the importance of strategic planning, its implementation, and how it impacts the overall success of a business. The report aims to provide a comprehensive understanding of the strategic planning process and its application to Aldi's business operations, including the assessment of resource requirements and the measurement of strategic implementation through SMART targets. The report provides a thorough examination of Aldi's strategic choices within the context of its retail environment.

UNIT 7 BS

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
1.1 Description on strategic planning of Aldi's mission, vision, objectives and goals core
competencies. .............................................................................................................................1
1.2 Define key issues in order to determine strategic planning of Business enterprise..............3
1.3 Description of following techniques which is used to develop strategic plans.....................3
TASK 2 ...........................................................................................................................................4
2.1 Define micro environment of business enterprise.................................................................4
2.2 Description on Macro environment and porters five forces analysis....................................5
2.3 Stakeholder analysis of business enterprise..........................................................................6
2.4 level of strategies in the organisation....................................................................................6
TASK 3............................................................................................................................................7
3.1 Alternative strategies for the growth of the firm Aldi's........................................................7
3.2 justify the selection of strategy.............................................................................................7
4.2 Determining the approximate requirement of resources for implementation of new strategy
for VW........................................................................................................................................8
4.3 Measuring the contribution of SMART targets to the achievement of strategic
implementation in Volkswagen..................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
These business strategies is important tool in order to understand the need and objective
of organisation. It is very helpful in manner to achievement of goals of enterprise. To perform
business function in well manner it considers as backbone to organisation. The strategy is a
process in which business function is to be perform in well coordinated manner are as target
setting, strategies execution, monitoring or implementation actually evaluations of business
enterprises (Buckley et.al., 2016). if not use this programmer enterprise not run for long life.
To make this process effective it is very essential in order to perform activities of business in
expertise manner.
This present report is focusing on to activities of Aldi's. It is working as retail store, which deals
in grocery products. It has many stores in world. The main objective of this firm is to bring
innovative process so that customer can satisfied and retain in market for longer period.
Moreover, the following strategy is to be focused as porte's 5 forces analysis Aldi's. With the
help of this the organisation can bring various kind of changes so that each work can done there
activity in trend manner (Buckley and et.al., 2016). In addition to this by performing all the
function in well manner it is possible to develop strong image in market. The timely modification
in goof and service is very necessary in order to cope up with current strategies of market. In
addition to this, the firm need to emphasize on external and internal function of organisation.
LO 1
1.1, 1.2, 1.3 covered in PPT
LO 2
2.1 Define micro environment of business enterprise.
It is very essential for an organisation to make SWOT analysis it is very useful in order to
determine the function like strength, weakness, opportunity and threats. It is defined in following
manner are as-
Strength- The company is having lost of advantage in market one of this is like they offer
qualified products at reasonable price (Goerzen,, Asmussen and Nielsen, 2014). The Aldi's is
famous retail store having good position in market with strong brand. It is having very skilled
workforce who can communicate better with customers. Moreover, the company has variety of
good and services and they take effective steps in order to cover major developed area for
market.
1

Weakness- The biggest drawback in this condition is that it does not accept any kind of credits
so people who are having credit card do not shop with this organisation (Wutzler, Weissbach and
Springer, 2017). The firm is also facing difficulties because they are having very fewer products
as compare to any supermarket. Due to this company reputation can be decline. In this manner
they should bring various changes in accepting payment thorough credit card, not to extra charge
for credit cards they should provide wide range of products so that customer can have choices
and option to make proper selection.
Opportunity- with the using of upgraded technology and distribution of service through channel
like E- commerce and m- commerce. The Aldi's can enhance its sale revenue and net profitability
in market. They are offering various kinds of discounted service to their customer so that
customer can get attracted towards business enterprise (Patterson and Hennessy, 2017). With the
help of this all kind of activities they can help in enhancing firm productivity and profitability.
Threats- In market there are lots of competition among retail industries on UK. Due to this they
are loosing competitive advantage in market. The corporate social responsibility and
sustainability term affecting the internal rules and regulation of firm in large manner. The biggest
threat in this that customer are shifting to local suppliers because they are having wide range of
products with reasonable price.
2.2 Description on Macro environment and porters five forces analysis
This kind of method is very useful in order to make proper reduction in risk of market.
With the help of macro analysis there can be changes in government legislation, rules,
technology etc. It is defined in following manner are as-
Political factor- the law and legislation can be change at ant time. It may work as affecting
company growth and development of Aldi's cannot be in proper amount. The increasing
competition Is min factor in predetermine the profitability of firm (Patterson and Hennessy,
2017). The company should follow all rule and regulation of business to promote it sustainability
for longer time in market.
Economic Factor- it can affect largely on the performance of firm. Sometime it can be out of
control. The customer shift to local supplier because they are offering variety of good at lower
price.
Technological factor- the current market is full of innovative process. To cope with present
market it is essential to produce good and services with upgraded equipments. They should adopt
2

change in online service, it is very helpful in order to grow market and try to bring various
distribution channel so customer can get service in timely manner.
Legal factor- There can be increment in cost of CSR activities environmental taxes and excise
duty are very challenging because it works in manner to increase the operation rate of business
enterprise. The company also have to deal with various accounting regulation are as per the low
acc. To IFSS. Wide number of pressure on looses in supermarket industries.
Porter forces analysis
Threat of new entrants- in market there are various kinds of company take entry in
market which work as barrier to other organisation growth. There are various number of local
suppliers who take entry in market with various innovative product to make heigh profitability.
Bargaining power of consumer- there are various suppliers in UK market who deals with
grocery services which negatively affects the pricing policy of business enterprise. There are
various competitors of Aldiss's are as ASDA, TESCO and Morrisons (Patterson and Hennessy,
2017). They are also holding good position in market because of promotional pricing strategies.
This kind of competition in market is reducing the profit growth and turnover of the business
enterprise.
Bargaining power of consumer- consumer are the main element of business enterprise. Without
their effective support organisation cannot run their operation sufficient. The Aldi's offer limited
product service to their customers because it works in manner to declining the bargaining power
of consumer (Wutzler, Weissbach and Springer, 2017).
Bargaining power of competitors- These days retail market is facing wide range of competition.
The Aldi's should take effective steps in order to introduce in innovative products in market. It is
very helpful in maintaining of competitive advantage in market by having maximum market
share.
Threat of substitute- the substitute has negative impact on the demand of product and services in
market. In retail world there is always many types of substitute available for number of
commodities.
2.3 Stakeholder analysis of business enterprise.
The stakeholder analysis is to be done on quarterly and half yearly basis. The company
have to follow this procedure at the time of specific projects. The suppliers are one of the
stakeholder of organisation and firm need to have good relation with them because it is essential
3

to maintain heigh quality of product service in market. The employees are other important pillar
to business enterprise because they take their effective steps in order to enhance growth of firm
by having their contribution in effective working in the company (Patterson and Hennessy,
2017). They should be treated as assets to firm. The another one are customers, without their
well functioning the growth of organisation cannot be measured. In work place stakeholder is
help to increase market rate. Stakeholder Governance is an important discipline that prosperous
citizenry used to win assist from others. It helps them ensure that their projection succeed where
some other fail. Stakeholder Analytic thinking is the technique used to denote the key people
who have to be won over. For example :- An stakeholder analysis is systematized assembly and
examine of quantitative data to determine whose wonder should be taken into report when
development and or instrumentation a plan of action, programme, or task.
2.4 level of strategies in the organisation
Strategy is a method or plan to do in the future. The main reasons is to .achievement of
a goal or solution to a complete problem. Strategies are some different parts are as follows:-
Growth strategy – This type of strategies are follow at the time of the growth of the new
corporate industries . Growth strategies is use at the time when new corporate industries is
establishing.
Stability strategy – This strategy is use at the time of ruining corporation in the market
and make stable at market growth or increase market growth.
Operational strategies: the process in which the things are brought to action come under
operational strategy. It is a particular process which achieves the objectives of the firm. In this
organisation is focus on growth strategy for future outcome in organisation. Such kind of level is
help to maintained the level of performance in market. For example :- Competitor strategies
come through by relying on core competence. A company May try to distinguish itself from the
competition by great client service or good. Cost leading offers customized low prices and so
must keep reimbursement down.
LO 3
3.1 Alternative strategies for the growth of the firm Aldi's.
With the help of the various opportunity the company can grow much faster and quicker,
also can face the challenges and the problems. Here the company Aldis has taken the substantive
growth to ensure the effectiveness of the group action scheme. It hepls manufactourers is
4

perpearing in side rowmatrial rither than they puraches out side market. Alids is not like to
reduce the wastage of money or say resources.
(Madrigal, Jiang and Roy‐Chowdhuri ) . At the time when aldis company have limmitted
resourese and poor growth condition at the time company will solve all the problem be self erther
than they help other. At the time of power or say low growth strategies can not buy any item out
side in low productivity.
The policies is very good not this time because this time company will not good
condition strategy is also helpful in dealing the company during adverse situation. Plan is very
good but why the company adopt because this plan is buy when our own plan is not good or say
not run in a market . Aldi's full focues is to how to mange a good resouces at a time according to
the need of the market and full fill need and wants of the customer. To enter into a new market
is focus to different kind of strategy for overall development in structure. The key explanation
for acquisitions are to indefinite quantity the securities' industry share in a peculiar business
concern to be the deserving leader; travel into new securities' industry make the establishment'
listing wider and at the same time alteration dangers. For example, the arrangement goal is
augmented sales and return its market point. The plan of action will be limited actions that will
recognise the end.
3.2 justify the selection of strategy.
Aldi's can do good work at a time but not touch that top most postion in the market. The
growth rate will be change at the time when adli's full fill need and wand of the customer. There
is time to take place in the market . (Harrison and Wicks, 2013). That scheme should be full
focus on to totel product and the market devlopment in coming years. At this sitution the
business can do lot many activty at a time. The Aldi's say that this method is use at the time
when expand a business at large level or say that to the next level. is using this method regarding
expand its business activities at large level. It can be inculding all the marketing techniques
which are used in market like product expansion which means to expand product, market
perception means what is taste and habit of customer etc.
This is a resons to say that market search is very important to solve any problems
or to understand customer is intered our product or not. The company is diversified total focus
into international market that is the resons the comapany leads to downfall into market and profit
earnin.
5

LO 4
4.1 Accessing the role and responsibility of persons that are assiend for the post of strategic
implementation.
In stratgic implemention process only three roles will be inculede in this work. these are
imagined future plans, Providing various dimension to organisation to deliver change and
determining future strategies.
Envisioning future Strategy-This role includes sharing information related to implementation
strategy with both internal and external stakeholders. The internal stakeholder include working
people those who are directly associated with organisation (Goerzen,, Asmussen and Nielsen,
2014). On the other hand external party include people who have direct interest in activities
carried by business unit.
Orienting VW
Organisation to deliver the strategy-Anthor role includes alinggni enterprise to success
compliting strategy. . In this role it is expected that individual person will provide their
contribution to implementation of strategy. This role aim at encouraging employees to increase
their contribution in order to deliver change. The objective of this role is to bring change in an
organisation. The strategic leader plays vital role in strategic change process.
Middle level mangers and stakeholders are the two person that are responsible for
implementation of strategy (Goerzen,, Asmussen and Nielsen, 2014). Middle level mangers are
liable for implementing strategy for top level management. The top level mangers in VW are
responsible for formulating effective and suitable strategy, supervising strategic management
process, making changes and adjustments in plan. The role of middle level manger also includes
providing advice and suggestion to senior manager that can be used by them for successful
implementation of strategy. Manager is responsible for determining the right time and suitability
for implementing strategy. Their role include analysing the requirement of participation by
various stakeholders.
Stakeholders also plays vital role in strategic implementation process. Their role include
providing suggestion and information required for carrying out implementation process in
effective way (Blackburn, Hart and Wainwright, 2013). External stakeholders have more
responsibilities related to strategic implementation process. External stakeholders are responsible
for fulfilling the requirement of various resources in implementation process. On the other hand
6

internal stakeholders of VW are responsible for allocating resources in efficient way in order to
make implementation process effective as well as systematic. Stakeholders are responsible for
analysis the requirement of various resources for successful implementation of plan.
4.2 Determining a approximate requirement of resources for implementation of new strategyes
on VW.
The resources have proper work in implementation of strategy. An need of new sources
during implementation process may vary according to the nature, sizes of an new enterprise. .
The allocation of resources is the initial step towards ensuring successful implementation of
strategy (Brower and Mahajan, 2013). Organisational environment and nature of resources
determines the need of various resources. There are some main resources which are essential for
implementing strategy process these are human, physical, financial resource etc. The strategic
objective of Volkswagen is to enhance the quality of their products ans\d services so, so it is
required by them to use resources such as technological, resources in order to improve their
quality of product.
Physical resource consist of production, financial and marketing resources. These
resources are being suggested to Volkswagen as there focus is on enhancing the standards of its
products and services. Marketing resources are being suggested to Volkswagen enterprise as
these resources will assist business entity in communicating their strategy to various external and
internal parties. Financial resources help Volkswagen company in financing their technological
resources and aid in effective implementation of strategy (Gray, Smart, and Bennett, 2017). Debt
and Equity are two sources are through which Volkswagen can finance their various resources.
The equity is used as a source by Volkswagen in order to finance their machinery as the equity
does not carry any interest or charge on them. Its is advisable for Volkswagen to allocate various
physical resources for making improvement in their products and services.
Human resources plays significant role in implementation of strategy. The Volkswagen
can facilitates various training and learning programme in order to develop human resource
which would help enterprise in successful implementation of strategy.
Technological resources-The Volkswagen company should adopt advance technology for
finding innovative way for implementation process (Blondiaux and et.al., 2017). This
technological resource will assist organisation in analysing various risk and identifying various
solution for eliminating various threats that may create barrier in implementation process.
7

Volkswagen company is advised to allocate technological resources in order to fulfil the demand
of product development strategy.
4.3 Measuring a ability of doing work of SMART targets to the achievement of strategic
implementation in Volkswagen
SMART targets refers to establishing specific, realistic, measurable goals and objectives
that are to be achieved by Volkswagen organisation within particular period. It is very important
for firm to establish these goals and objectives, as the success and failure of enterprise depends
on these two factors (Blondiaux and et.al., 2017). Evaluating the contribution of Smart targets is
equally important as they provide assistance to organisation in achieving their mission and
visions. Suitability, Feasibility and acceptability are the three methods that can be adopted by
Volkswagen for These smart targets can be categorised into smaller elements in order to make
evaluation process easier and simpler. This target also act as motivational force for encouraging
employees to work hard order to achieve their individual as well as organisational long term
targets.
Suitability -Suitability can be measure using swot analysis techniques. Suitable strategy aims at
pointing the internal capabilities of Volkswagen enterprise and assist business unit in eliminating
various threats, overcoming weaknesses, capturing opportunities and enhancing competitive
strength.
Practicability- it refers to the practical approach of strategy. The feasibility approach includes
availability of resources for implementing various resources (Blondiaux and et.al., 2017). Break
even analysis technique can be used for measuring the feasibility of strategy.
Acceptability-it refers to the success of strategy in meeting expectation of various stakeholders.
The Volkswagen can use what if analysis technique on order to measure the effectiveness of
strategy.
Product development strategy is being adopted by Volkswagen organisation. The
effectiveness of these strategies can be monitored by using the above mention techniques.
Various methods are being provided by this method which assist organisation in determining and
utilising various opportunities (Wutzler, Weissbach and Springer, 2017). Acceptability method
can be used by Volkswagen in order to examine that whether the objectives has been fulfilled by
strategy or not. These targets helps business unit in measuring actual performance with standard
actions.
8

CONCLUSION
From the above report it has been concluded that business strategy is a process in which
business function is to be perform in well coordinated manner are as goal setting, strategy
execution, monitoring and implementation overall performance of business enterprise. It can be
said that Aldi's is giving special focus on to make improvement in business plan and bringing
innovation in true and fact manner. It is very essential in order to enhance future growth of firm.
Th e present study focus on making of SWOT and PESTLE analyses to determine internal and
external concept of organisation. The main object of this firm is to make better improvement in
current position of market. The smart target is also deigned in manner to achievement of strategic
objective of business enterprise.
9

REFERENCES
Journal & Book
Amato, F. and et.al., 2017, July. A Target Driven Approach Supporting Data Diversified
Generation in IoT Applications. In Conference on Complex, Intelligent, and Software
Intensive Systems. Springer, Cham.
Blondiaux, N. and et.al., 2017. Reversion of antibiotic resistance in Mycobacterium tuberculosis
by spiroisoxazoline SMARt-420.Science.
Burke, W. W., 2017.Organization change: Theory and practice. Sage Publications.
Gordon, G., 2017. Communication, Vision, and Mission. In Leadership through Trust.. Springer
International Publishing.
Gray, D. M., Smart, K. L. and Bennett, M. M., 2017. Examining espoused and enacted values in
AACSB assurance of learning. Journal of Education for Business.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 8(1). pp.8-27.
Brower, J. and Mahajan, V., 2013. Driven to be good: A stakeholder theory perspective on the
drivers of corporate social performance. Journal of business ethics. 116(2). pp.313-331.
Buckley, P.J. and et.al., 2016. The strategy and organization of international business. Springer.
Chen, Y. and Jermias, J., 2014. Business strategy, executive compensation and firm
performance. Accounting & Finance. 63(1). pp.113-134.
Goerzen, A., Asmussen, C.G. and Nielsen, B.B., 2014. Global cities and multinational enterprise
location strategy. In Location of International Business Activities. 7(6). pp.137-180.
Harrison, J.S. and Wicks, A.C., 2013. Stakeholder theory, value, and firm performance. Business
ethics quarterly. 6(01). pp.97-124.
Madrigal, E., Jiang, X. S. and Roy‐Chowdhuri, S., 2017. The professional Twitter account:
creation, proper maintenance, and continuous successful operation. Diagnostic
Cytopathology. 45(7). pp.621-628.
Mansi, M. and et.al., 2017. CSR focus in the mission and vision statements of public sector
enterprises: evidence from India. Managerial Auditing Journal. 32(4/5). pp.356-377.
Patterson, D.A. and Hennessy, J. L., 2017. Computer Organization and Design RISC-V Edition:
The Hardware Software Interface. Morgan kaufmann.
10

Wollenberg, E., 2017. The mitigation pillar of Climate-Smart Agriculture (CSA): targets and
options.
Wutzler, M., Weissbach, M. and Springer, T., 2017, May. Role-Based Models for Building
Adaptable Collaborative Smart Service Systems. In Smart Computing (SMARTCOMP),
2017 IEEE International Conference on. IEEE.
Online
SMART Goals, 2017. (online).Available through:<https://www.projectsmart.co.uk/smart-
goals.php>. [Accessed on 27th September 2017]
11

12