Strategic Planning and Business Analysis Report for ALDI (Coursework)

This report provides a comprehensive analysis of ALDI's business strategy, delving into various aspects such as its mission, vision, goals, and core competencies, and how these elements inform its strategic planning. The report examines the factors considered when formulating new strategic plans, including industry analysis, competitor analysis, and the use of SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats. It also assesses the effectiveness of techniques like the BCG matrix and PIMS for making business plans. Furthermore, the report includes an organizational audit of ALDI using SWOT analysis and an environmental audit using PESTLE analysis. It highlights the importance of stakeholder analysis and explores innovative strategies. The report also discusses the appropriateness of alternative strategies, the roles and responsibilities for implementation, the resources required, and the contribution of SMART targets. Overall, the report offers a detailed overview of ALDI's strategic approach to achieve its business objectives.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Extent to which mission, vision, goals & objectives and core competencies of ALDI
inform strategic planning........................................................................................................1
1.2 Factors that have to be considered when formulating new strategic plans......................2
1.3 Effectiveness of technique for making business plans.....................................................3
TASK 2............................................................................................................................................4
2.1 Organization audit of ALDI.............................................................................................4
2.2 Environmental audit.........................................................................................................5
2.3 Importance of stakeholder analysis..................................................................................6
2.4 Innovative strategies.........................................................................................................7
TASK 3............................................................................................................................................8
3.1 Appropriateness of alternative strategies..........................................................................8
3.2 Selected strategy...............................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Roles and responsibility of individual............................................................................10
4.2 Resources needed for implementing strategy.................................................................11
4.3 Contribution of SMART targets for strategy implementation.......................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Business strategy is very important to every organization in order to achieve particular
goals and objectives in the most effectual manner and within a stipulated time period. It is an
essential activity to develop the business policies and plans in organization. Also, it can be
termed as a summary which describes the business plan to get goals and objectives in an
appropriate manner. It defines the long term business planning to fulfil stakeholders expectations
and define market needs. Present report is based on the ALDI it is a grocery retail store at
United kingdom. They expand their business to attract larger number of customers to attain
success at marketplace. In this report different terms and process are define in mission and also
define aim and strategic plans to get success and improve their performance level (Kernbach,
Eppler and Bresciani, 2015). ALDI has best business strategies which they can implement in
their organization so they can provide quality service to their customers. This assignment will
discuss about the planning and procedures of planning and set business objectives. In every
organization stakeholder is more important to invest in it and attract large number of customers.
With the help of strategic plan company have to select best option and implement it to attain
targets in appropriate manner.
TASK 1
1.1 Extent to which mission, vision, goals & objectives and core competencies of ALDI inform
strategic planning
Strategic plan and aims is more important for every organization to attain mission, vision,
goals and objectives. Effective policies and strategies can help in reducing the operational cost
and increasing sales. ALDI sets the best planning policies and procedure to increase profitability
and improve performance at marketplace. In the enterprise, strategic planning is an essential
process to define organizational goals and objectives. There are some important elements of
strategic planning without which it cannot be done. Some of them are like:
 Mission- According to mission of ALDI, they wants to provide best quality products
and service at minimum price. They want to attract large number of customers and
investors and inspire employee to do work in a team. The mission of ALDI to improve
relation with customers and gain their loyalty towards firm. Increased market share is
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also an important aim of company to maintain the customer value. The mission of ALDI
expand their market share and attain customers loyalty.
 Vision- According to vision of ALDI, their main focus is on introducing new and
revolutionary products. ALDI focus on global environment and applying their services at
global level. The vision statement of ALDI defines future attitude, growth and potential
welfare (Wesseling and et. al., 2015). This component is more important to comopany to
enhance their performance and profitability.
 Goals and objectives- As per this function objectives can be long term and short term.
ALDI makes the business plans and strategies to increase market share and their
performance level as well. To attain business objectives, ALDI provides the best training
to their employees so that they can perform well in organization. They offer many
opportunities to attain profit in the marketplace.
 Core competencies- This term separates an organization's identity from other companies.
Core competencies help in attaining success in the market and developing their business
performance. It can help in defining the brand image to attract large number of customers
to buy their products and build trust among them. ALDI’s core competence is its existing
retail chain which can help them in achieving their main targets successfully. They
provide the best products and services to their customers and also target potential buyer
to fulfil their needs in appropriate manner.
1.2 Factors that have to be considered when formulating new strategic plans
Strategic planning is essential to achieve goals and objectives of the business
organization. It can define the best way to reach at specific target of company. It is an effective
process to develop the business policies and aims to take the best decision regarding their
activities. Top management defines the best policies to face and solve some issues along with
identifying critical options in business process (Verbeke, 2013). ALDI describes the policy plan
to provide various directions to management which they can implement in their strategies. There
are majorly three factors required to be considered when formulating strategic plans which are:
The industry- This term is more essential to evaluate whole business process. Strategic
planning describe all information respect the industry like market share, expected and previous
improvement, modern market entry. Before implementation of strategy, company should analyse
the future threats and profitability present in industry.
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The opposition- It defines the challenger's situation at marketplace. Tesco, ASDA,
Sainsbury and Morrison’s are the competitors of ALDI. It is important for an organization to
determine the strengths and weaknesses of its competitor companies.
Strengths and weaknesses- In ALDI strengths and weakness are internal factors, threats
and opportunities are external factor. SWOT analysis is an essential part of planning process
which provides success in an appropriate manner. When formulating strategic planning in an
organization, SWOT analysis is used as an effective process to implement it. Internal factors
include manufacturing process of products, performance of employees, best decision making
process and culture of business organization to get profitability in the marketplace and for
improving their performance in an effective way (Sum, 2011). These internal factors define
customer’s needs and wants of particular goods and services. Internal factors of SWOT analysis
help in increasing productivity and sales that also enhances the profitability of firm. ALDI is
focusing on new e-commerce strategies so that they can attract potential customers across the
globe.
1.3 Effectiveness of technique for making business plans
There are some various techniques which are used in making best business plan and aims.
BCG is The Boston Consulting Group's product portfolio matrix. It is long term strategy to
measure effectiveness in business process and making plans which is implement in ALDI.
According to market share and growth BCG matrix provide effective information to analysis
product service. BCG matrix divided into four parts which relate to the market share:
BCG market share and growth matrix:
This matrix help company in making long term strategies and advice the manager where
to invest or not. It guide manager or help him in taking important decisions like development of
products and many more.
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Stars- It define high growth and market share. According to stars the product need high
investment to develop their position at marketplace. At market ALDI faced down improvement
and growth and same time they will define large number of market share which can helps in
increase their profitability level and create earning process in organization. Basically stars
products having high share and high growth in marketplace. It will generate lot of income.
Cash cows- It describe high market share and low growth. According to this process it
define different business process which having less market stock. Cash cows helps in generating
lot of income and generate high performance in market place which will assist in maintaining
actual level of productivity (Sluyterman, 2013).
Dogs- In this situation, it describe low market share and low growth rate. It also known as
pets, this condition ALDI cut extra costs of product. Company shutdown production of old goods
and start a new business when a particular product make less profit at a marketplace.
Question marks- In this condition, it define high growth rate and low market share.
According to this process risk is always existing in it because the market share price is low and
profitability is also less. Basically it is based on new product production in market.
Advantage of BGC matrix- This is essential to organization to provide new and
innovative goods to their customers. It helps in maintain current portfolio balance of the
company which help in make effective decision for upcoming activity. Basically it is based on
innovative process which define innovative business at a marketplace.
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Illustration 1: BGC matrix

Disadvantage of BGC matrix- In this condition market share is low and the success is
based on other section. High market share define less profitability at marketplace and sometime
less market share define higher profitability.
Profit impact of market strategy (PIMS)
Profit impact of market strategy helps in competitive benefit to give information to set
policies and procedures in business organization. ALDI would be fit to define achievement and
execution of plan of action and activity (Segers and Inceoglu, 2012).
PIMS strategy define various structure:
 Enterprise environment cause
 Development of strategic planning
 Operating action
 Monetary fund portion
 Structure of production process
TASK 2
2.1 Organization audit of ALDI
An organizational audit of ALDI describe with the help of SWOT analysis. It helps in
evaluating internal strength or weakness of an enterprise and external or threats. Organizational
audit assist in improving performance at marketplace. With the help of SWOT analysis ALDI
perform well and assist organization to get profitability in appropriate manner. SWOT analysis
of ALDI are as describe in below:
STRENGTHS WEAKNESSES
 ALDI is a biggest company in UK, it
acquiring in different states.
 ALDI has effective business strategies
and policies.
 They provide products at reasonable
price to their customers.
 Has stable profit generation plan of
action (Ross and Blumenstein, 2013).
 ALDI having advanced conveyance
expenditure.
 Deficiency of geographic
categorization.
 Relatively compared as little to some
other brand name.
 ALDI dependent mostly on EU and
United kingdom countries.
 Store cheap and low-level product
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quality.
OPPORTUNITIES THREATS
 ALDI capable to offer best products
and service to their customers.
 It expand their business into developing
economics such as Asia, Africa etc.
 Raising home delivery service and
increase online sales to attain high
success.
 The growth of the ALDI is risky
because recent years unemployment
rate increased.
 High agonistic market.
 ALDI sale out its product under various
sub brands accepted by large number of
customers.
2.2 Environmental audit
PESTLE analysis of ALDI company :
Political : Government makes changes in legislations or introduce new policies from time to
time and every company has to comply with these policies because it effects operations of an
organisation. Same as ALDI has to follow all rules and procedures of authorities.
Economical : Changes in rates of interest, inflation rates and FDIs effects an organisations
operational working. As there is change in economical environment from recession then there
were so many chances of increase in sales because buying behaviour of customers changed.
Social : There are always changes in societal interests. UK mostly has an old age population
more and workforce may be more costly in terms of sickness an more issues for employers.
More over it other supermarkets in competition introduces different new products with new
changes including food, clothing and chemists. All those factors should be recognised (Reinhardt
and Stavins, 2010).
Technological : New technologies are coming in market as the time is passing. ALDI also
introduced new technologies like selling their products online through online shopping sites.
This is the biggest reform in technologies for selling markets.
Five forces analysis of ALDI company :
Threat of new entrants : This threat is relatively lower for this company. Because it needs high
cost to establish it self as a supermarket.
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Threat of substitute products : In changing market trends ALDI also keeps itself up to date
with the changes. It always remains active regarding new tendencies.
The bargaining power of suppliers : Supermarkets have more better bargaining power in
comparison to suppliers, often it puts to favourable terms and conditions due to the scale of
buying power (Pugh and Bourgeois, 2011).
Bargaining power of buyers : Purchasers or customers have many options to choose as a
supermarket as already there are so many markets available. They analyse their offers and then
select accordingly. But ALDI does not provide loyalty scheme.
Rivalry against existing firms : There are so may other supermarkets like tesco etc. so the
rivalry is high.
2.3 Importance of stakeholder analysis
Stakeholder analysis is essential which describe company performance in the market in
appropriate manner. Stakeholders are creditors, employees, directors, shareholders, government
and community (London and Hart, 2010). It is a effective techniques which describe the
individuals who helps in business activities to attain success. Stakeholders are more important to
develop business activities and get best results at marketplace.
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Illustration 2: Stakeholder Grid

There are some importance of stakeholder analysis to develop new strategy:
 Acquire crucial sentiment from stakeholders (employees, shareholders, government etc.)
 Interpret their quality by devising effective communication (Li, Zhou and Si, 2010).
 Capable to estimate individuals response regarding their enterprise.
There are some steps of stakeholder for ALDI are as:
Step 1- The first step of stakeholder analysis which describe individuals to involved in business
operation to attain success in appropriate manner.
Step 2- Next step is very essentials to define the quality and interest of stakeholders. With the
help of this stage facility of individuals which evaluate by effective enterprise.
 Stakeholder are essential for company who have high power and interest to promote
goods and service to satisfy their customers for applying plan of action.
 Stakeholders have high interest and less power can influence strategy of an organization
but they get bored with enterprise early (Killing, 2012).
 Last but not least stakeholder having low interest and less power which does not affect on
organization so that an enterprise offer less direction on their controlling process.
 Company should send various information relating to organization to the less power and
high interested stakeholders.
Step 3- This is the last step in which company need to analysis important of stakeholders and
then take feedbacks and support from most important stakeholders.
2.4 Innovative strategies
Technique give structure on which all work complete in a powerful way. ALDI have
great market development which get inspect by their expanding piece of the overall industry.
Every one of these plans are gone under mission, vision and objectives and their correction is
should with the goal that every single representative get mindful about them. In this way, this
prompt work them in more proper way and their working wind up noticeably smooth in nature.
According to referred to firm setting their vital arrangement which help them in making their
operation simple are:
 Piece of the pie of ALDI is high when contrasted with others. Their grasp on client is
great and proper through which their benefit gaining limit is turned out to be high. Their
main goal and vision means that their working is totally for their clients. Where
contentions deal with giving just extravagance items ALDI concentrate on every single
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gathering of clients. As indicated by organization mission and vision they simply need to
give fantastic items at low costs. That is why their piece of the overall industry is high
which is around 19.8%.
 Presently referred to firm just set up their business at UK. They effectively open around
550 outlets all finished at England. Presently their point is to set their business
everywhere throughout the globe which is consider their objective. This may help them in
giving upper hand since they are taking a shot at increasingly a more esteems through
which it plainly get recognized that their working is suitable in nature (Aithal, 2016).
 Organization need to set their destinations which is to procure benefit and settle their
business everywhere throughout the world. This factor just complete by distinguishing
the market which is appropriate for them in their high development rate. Consequently,
by applying this target on their firm this will prompt expand their piece of the overall
industry through which their productivity get rises.
 They need to give them novel items to their clients which is useful for them in
accomplish target number of clients for different number of items. Likewise association
need to define a reconsider procedure on which all their working complete.
Subsequently, organization need to get ready plan which help them in working in a
powerful way. Through this administration can procure and create increasingly benefit and their
income era turn out to be high. Thus, alongside that these new rules additionally help them in
working as indicated by exhibit condition and current situation of outer condition. As per show
working example they have great market rate and offer. Subsequently, there is no compelling
reason to transform them more. ALDI can end up plainly one of a biggest supermarket in the
event that they will going to set their business all finished in world and furthermore their piece of
the overall industry turn out to be high.
TASK 3
3.1 Appropriateness of alternative strategies
Following are the market entry strategies :
 Licensing : Licensing helps in instantly tapping an existing market that is already build
up by other companies. ALDI company gets a percentage from the profit ar4ose from
selling the products or the services under its licence. Licensing consists of a fees amount
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and that is a small % of selling price of the commodity (Kernbach, Eppler and Bresciani,
2015).
 Franchising : In this strategy franchisee has to pay franchisor a purchase fees as a
percentage of sales. It is a partnership of long term and companies wishing to be
successful needs to recognise the relationship and obligations on each of partner
(Godlevskaja, van Iwaarden and van der Wiele, 2011).
 Exporting : In this strategy overseas market is explored for the products and services of a
company. Export means to sell the products to other company after recognising its
potential in domestic market.
 Joint ventures : In this 2 different organisations work together to achieve their specific
goals. There shares ownership and both contributes towards objects of company.
Possible alternative strategies relating to substantive growth :
 horizontal integration : It happens when competitors merges or being acquired by any
another company. It includes mergers, acquisitions and internal reconstruction to increase
its market strength.
 Vertical integration : In this strategy the production path is divided into different level
or steps. By reducing expenses related to transportation company can reduce its costs and
increase efficiency.
Diversification : There are 2 types of diversification those are 1. related and 2. unrelated.
In first method organisation stay in familiar market but in another method company goes for a
sector where there is no former industry or experience (Firnkorn and Müller, 2012).
3.2 Selected strategy
Strategies suitable for ALDI company :
 Exporting : Exporting strategy can be taken as most relevant strategy because ALDI
already has a great approach in domestic markets and now need to enhance and expand
its business in overseas. It will earn more revenue in foreign and reputation of product
will also increase in international market.
 Horizontal integration : ALDI should apply this strategy to its business. It should
internally reconstruct its business and acquire some small companies so that it can hand
over some of its work to another organisation and pay attention itself to important areas.
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