Business Strategy Report: ALDI's Strategic Analysis and Implementation

This report provides a comprehensive analysis of ALDI's business strategy, encompassing its mission, vision, goals, and core competencies. It examines internal and external factors influencing strategic planning, including organizational and environmental audits, and the significance of stakeholder analysis. The report explores techniques like the BCG growth matrix and SPACE analysis for developing strategic plans. It presents a new strategy for ALDI, focusing on market entry and justifying a suitable approach. Furthermore, it outlines the roles and responsibilities of personnel involved in strategy implementation, resource requirements, and the application of SMART targets. The report highlights ALDI's strengths, weaknesses, opportunities, and threats, providing a detailed overview of its current market position and potential for growth.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 (a) Extent to which ALDI’s mission, vision, goals, objectives and core competencies
inform strategic planning............................................................................................................1
1.2 Factors that ALDI will have to be considered when formulating strategic plans.................3
1.3 Techniques to develop strategic plans...................................................................................4
2.1 Organizational audit for ALDI and analysis of current strategic position............................5
2.2 Environmental audit for ALDI..............................................................................................7
2.3 Significance of stakeholder analysis for ALDI and its importance......................................8
2.4 Present new strategy for ALDI.............................................................................................8
TASK 2............................................................................................................................................8
3.1 Identify a market and appropriateness of suitable strategy for ALDI...................................8
3.2 Justification of one strategy for market entry.......................................................................9
TASK 3..........................................................................................................................................10
4.1 Roles and responsibilities of personnel manager involved in strategy implementation.....10
4.2 Resource required for implementation of strategy..............................................................11
4.3 Use of SMART targets........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is an art and science for planning and designing effective schemes to
achieve the objectives of an organization with effective use of essential resources. Basically,
strategy is a word derived from Greek word which means “leading a team or army”. Therefore,
this term is used in business for leading whole organization by allocating necessary resources to
achieve the target of an organization (Acquaah, 2011). This report is all about actual position of
one of the major supermarket named ALDI by showing its branches across national boundaries.
Along with this, they also have approximately 10000 stores in almost 18 countries to serve the
foreign consumers. Apart from this, it also highlighted effective role of micro and macro factors
by conducting organizational audit with the help of accurate information or data. Therefore, main
motive of this assignment is to present a new strategy for developing the enterprise in
international market. At last, it also throws some light on effective schemes for entering into the
new market by considering relevant data, facts and figures.
TASK 1
1.1 (a) Extent to which ALDI’s mission, vision, goals, objectives and core competencies inform
strategic planning
ALDI is a supermarket famous for its grocery items across national borders for fulfilling
the needs of domestic and foreign clients by introducing fresh products. Basically, this company
is having its branches in approximately 18 countries with different motives and goals.
Assessment of ALDI is mentioned as below:-
 Missions:- It shows short term target of an organization by implementing various
schemes and plans by satisfying the needs and wants of whole society as well as trying
to develop economy of a nation (Acquaah, 2013).
 Visions:- This factor of an enterprise highlight long term target by implementing
effective strategies with the use of necessary resources for generating maximum revenue.
 Goals and objectives: - Main motive of ALDI is to fulfil the basic needs of whole
society by providing fresh grocery items. Therefore, they just want to make an
impressive business strategy to run their organization for longer period of time by
establishing high goodwill in the marketplace.
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 Core competencies: - Due to emergence of advanced technology, there are number of
competitors like TESCO and Sainsbury which emerges for profit maximization by
introducing close substitutes with unique and different quality.
(b) ALDI is developing rapidly due to emergence of advanced technology and equipment which
influence the growth of whole organization. While comparing ALDI with other supermarkets
like TESCO, Sainsbury and ASDA, it grow in more fastest way due to its effective marketing
strategy by fulfilling the demand of overall society (Alsudiri, , Al-Karaghouli, and Eldabi,
2013).
According to data of Kantar world panel sales of ALDI is grew approximately 19.8% in
coming 12 weeks to till 21 may 2017 whereas other supermarket for example TESCO,
Sainsbury, ASDA etc. these company grew almost 1.6%. Therefore, this data shows the current
market position of ALDI by considering available information and evidences which is very
useful for selected company to reform their present marketing strategy for more development
and growth of organization.
(Source:- Kantar World panel, 2017 )
According to this data, actual market position of ALDI has been shown at international
marketplace by collecting necessary information for maximizing the market share of company.
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Illustration 2: Market share of ALDIIllustration 1: Market share of ALDI

Business strategy is a term whose main motive is to define an impressive plans or
schemes for an enterprise which includes accurate vision, mission, or core competencies of an
association in order to perform all the activities in most appropriate way. According to........it has
been examined that these planning have a greater impact on a selection of strategy or appropriate
scheme because success of designed schemes is fully depend upon this. Along with this overall
company perform their business activities as per formulated strategy so that they can easily attain
set objectives or targets with the help of appropriate tools or techniques.
1.2 Factors that ALDI will have to be considered when formulating strategic plans
It is not an easy task to make an effective strategy for large organization due to its
complexity in nature which requires relevant information and data for the same. Therefore,
essential factors must be considered during planning strategy for gaining the success of whole
enterprise. Thus, various necessary factors which must be considered are mentioned as below:- Internal factors: - While formulating strategies for the whole enterprise, it is essential to
consider all the existing micro factors due to its roles and responsibilities towards
development of ALDI. Various internal elements are stated as follows :-
1. Employees: - One of the indispensable resources from all available resources
because every activities are controlled and regulated by labours only. In fact
success of an enterprise is depend upon capability and talent of labours (Azar,
2011).
2. Other resources: - Land and building, plant and machinery, capital and all the raw
materials which is used by company to convert input into output for fulfilling the
demand of desired customers come under the same.
3. Suppliers: - An organization must consider their supplier’s demand and capabilities
while distributing their products at marketplace. External factors: - It is indispensable to analyse all the macro factors due to its impact
on decision making process of a company. Various external sources are described here
as under:
1. Political: - According to this factor, an organization needs to consider the rules
and regulations enacted by them while formulating effective plans and policies for
attaining long and short term goals of company.
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2. Legal: - Legal bodies of a nation have amended many more laws which must be
fulfilled by ALDI while establishing their branch across the national borders.
3. Economical: - Exchange in currency rate has a great impact on world’s economy.
4. Environmental: - All necessary resources are acquired by enterprise by
surrounding for manufacturing a final product (Barberá, and et. al., 2012.).
5. Social: - Consumers are the final users of goods and services provided by ALDI.
So, it is very essential to consider the tastes and preferences of whole society.
Instead of all these above, there are also some other factors available which must be
analysed while formulating effective strategy. For example:
 Identification of short and long term objectives of ALDI
 Current market position and availability of any close substitutes
 Strategies of competitors
1.3 Techniques to develop strategic plans
After formulating an impressive and effective strategy for ALDI, it is the time to acquire
necessary information and data as well as adopt methods to develop strategic plans. There are
various types of techniques available for enhancing current plans and schemes of an organization
in an effective manner. Therefore, impressive methods are mentioned as below:-
BCG growth matrix: - Another name of this method is product portfolio matrix which is
mainly designed by Bruce D. Henderson in the year 1970 for developing whole organization by
allocating necessary resources (Chang, and Chuang, 2011). Basically, this technique consists of
appropriate graph and rank specific business on the basis of their market share in market which is
mentioned as below:- Cash cows: - According to this factor, ALDI has a higher market share in a slow
developing industry due to existence of other factors. Main motive of this market is to
generate more cash. Dogs: - In this market, organization is having minimum market share in a slow growing
industry which has a greater impact on the success of company. According to this, their
first and foremost motive is to achieve the break-even point of company which means to
acquire profitable returns on assets. Question marks: - Another name of this market is a problem children which highlight
business running with a minimum market share in a highly developed market.
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Stars: - It indicates maximum market share in a fully growing industry by having monopoly in
marketplace by considering various indispensable factors which play an eminent role in
establishing the goodwill of organization.
(Source:- BCG growth matrix,2017)
SPACE: - It stands for strategic position and action evaluation matrix which is an
appropriate method of strategy enhancement by considering actual place of company in the
international market. Main motive of this developmental plan is to create a balance between
micro and macro factors for achieving the target of ALDI within minimum time period.
Therefore, this technique is going to analyse factors which influence the growth of company
directly and indirectly as all are interdependent upon each other (Chu, KrishnaKumar, and
Khosla, 2014).
PIIMS :- This term stands for profit impact on marketing strategies which begin in
approximately mid of 1960s whose main aim is to study the presentation of a strategies
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Illustration 3: BCG growth matrix

implemented by ALDI to achieve their organizational objectives. Apart from this, main motive
of this scheme is to understand the influence of profit on planned strategies.
After considering above information it is understood that BCG growth matrix is very
much appropriate or useful while developing overall organization in a most efficient manner
because it helps in increasing the market share of a company. As a result it aids in establishing
positive goodwill at marketplace due to which number of local as well as foreign customers get
attracted towards products of selected firm.
2.1 Organizational audit for ALDI and analysis of current strategic position
Audit is term which is very helpful in identifying hidden strength and weakness of an
organization by adopting effective method which is known as SWOT analysis. Basically main
reason behind establishment of enterprise audit is to find barriers and obstacles which creates a
major problem in success of a whole company. Therefore ALDI is going to conduct
organizational audit for identifying reason behind failure or barriers which mentioned below:-
Strength :- According to this factor an organization is going to analyse their major advantages
and get aware about reason behind success of ALDI. Therefore various strength of a company is
mentioned below:-
 Fresh and qualitative products which my capture the attention of maximum number of
domestic as well as foreign consumers (Coad, 2011).
 Implementation of effective marketing strategies for promoting their product across
national boundaries.
 Using advanced technology for completing their task and activities in a minimum
duration.
 Fast delivery across national boundaries.
Weakness:- In this factor an organization is going to identify their barriers and obstacles for
implementing necessary modification to resolve existing employees. Weakness is mentioned
below :-
 Due to various branches across national boundaries sometimes communication
problems may arise.
 Insufficient capital which may influence overall success of an enterprise because all
activities are depend upon revenue.
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 Lack of resources.
 Shortage of skilled and talented employees which have a greater impact on a goodwill
of a company .
Opportunities:- Emergence of advanced technology and useful equipments provides great
opportunity to ALDI for fulfilling demand of their customers in a minimum duration by
considering eminent role of internal and external factors. In fact changes in government rules
and regulation also provide eminent chances to increase import and export across national
boundaries for profit maximization (Elliot, 2011).
Threats :- One of a major threat of ALDI is emergence of various competitors for example
TESCO, Sainsbury etc. Therefore these competitors is going to bring close substitutes of ALDI
products which influence their sales and profit.
By concluding this SWOT it has been understood that it is an appropriate and effective
method of identifying problems faced by company to reduce their upcoming risk. In fact it act as
a very useful tool and technique which is used by organization while decision making process.
2.2 Environmental audit for ALDI
Audit of surrounding is conducted by organization for identifying problems from outsider
world by considering micro and macro environmental factors which have a greater impact on a
success of ALDI (Ghezzi, 2013). In fact environmental audit is conducted by organization to
hedge their risk and upcoming challenges by implementing various strategies. Therefore micro
and macro environmental audit of ALDI is mentioned below :-
Micro factors Macro factors
Customers:- Another name of consumers are
end user because goods and services are
consumed by them only.
Suppliers :- Identification of qualitative raw
materials so that organization can manufacture
effective products which is used by
organization (Higgins, , Omer, and Phillips,
2015)
Political:- It is very essential to consider rules
and regulation amended by governing parties
for providing equal opportunity to every
enterprise.
Economical:- Exchange in currency rate have
a greater impact on a economy of a nation.
Social:- Whole enterprise is affected by change
in taste and preference of whole society.
Technological:- Emergence of advanced
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technology is very much useful and necessary
Legal:- For creating a environment free from
discrimination legal bodies have implemented
many more laws for protecting employees from
any exploitation.
Environmental:- All the resources are
acquired by surrounding for manufacturing
impressive products.
As per question requirement an effective audit of external or internal factors is
highlighted above in order to explain their affects on company performance.
Porter five forces :- According to this model an organization can easily enhance their
product by implementing various techniques and methods for achieving the target of employees.
In fact this model is going to consider various essential elements which must be considered to
develop their products. Therefore essential factors which must be considered in mentioned below
:-
 Defining bargaining power of suppliers.
 Threat from entrance of new entrants.
 Threat from availability of close substitutes.
 Explaining bargaining ability of a customers.
2.3 Significance of stakeholder analysis for ALDI and its importance
Stakeholder plays a very eminent role while formulating new strategy for ALDI because
they are the investor of a selected company so it is very important to consider their views and
opinions while planning strategy (Quartel, 2012). In fact they arr key to success for achieving
their target in minimum time period. Importance of stakeholder is mentioned below :-
 Stakeholder plays a very eminent role in attaining goals and objectives of an organization
by playing their role in a decision making process.
 Forming partnerships for developing whole enterprise by sharing their views and
opinions.
Assessment of shareholders is an appropriate process of examining influence of decision
on specific parties. It means these data is utilized to assess how the requirement of various
partners is going to be addressed in an assignment plan, sessions or various other action. In fact,
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management of shareholder is known as their analysis in which their need or demand is going to
identified in order to fulfils it as soon as possible. Generally, it has been accomplished once or on
regular basis to track modification in attitudes or behaviour of different partners.
(Source:- Stakeholder Analysis, 2017)
According to above representation it has been analysed that analysis of stakeholder is
accomplished in different way in order top determine their attitudes or behaviour towards
company.
2.4 Present new strategy for ALDI
ALDI needs to make effective and useful strategy by considering long term and short
term goals of a company for establishing their goodwill at a marketplace. An effective strategy is
implemented with the use of internal and external factors. Therefore impressive schemes for
developing whole enterprise is stated as follows:-
 Vision:- Long term goals of ALDI is to establish their goodwill at a marketplace by
fulfilling the basic needs of a foreign and domestic customers.
 Mission:- Short term mission of a company is to fulfil basic requirements of a company.
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Illustration 4: Stakeholder Analysis