Strategic Business Analysis and Planning for ALDI: A Report

This report provides a comprehensive analysis of ALDI's business strategy. It begins with an introduction to business strategy and its importance, followed by an examination of ALDI's mission, vision, goals, and objectives. The report then delves into the factors impacting ALDI's strategic plan, including consumer needs, competitive dynamics, and the need to maintain a competitive advantage. Various techniques used in developing a strategic business plan, such as the BCG matrix, directional policy matrix, and Ansoff's product market matrix, are discussed. The report also includes an organizational audit, SWOT analysis, and environmental audit to assess ALDI's strategic positioning. It explores alternative market entry strategies and proposes a new strategy for ALDI. The report concludes with a discussion of the roles and responsibilities in strategic implementation, resource requirements, and the contribution of SMART objectives.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Mission, visions, goals and objectives of ALDI...................................................................1
1.2 Factors which impact strategic plan......................................................................................2
1.3 Various techniques which are used in developing strategic business plan...........................3
TASK 2............................................................................................................................................4
2.1 Strategic positioning of ALDI by carrying out organization audit.......................................4
2.2 Environmental audit for ALDI..............................................................................................5
2.3 Importance of stakeholder analysis.......................................................................................7
2.4 Present new strategy for ALDI.............................................................................................7
TASK 3............................................................................................................................................8
3.1 Alternative strategies which are related to market entry.......................................................8
3.2 Chosen of strategies from various alternatives.....................................................................9
TASK 4............................................................................................................................................9
4.1 Roles and responsibilities of personnel in strategic implementation....................................9
4.2 Estimated resources requirement for implementing new strategy for ALDI......................10
4.3 Contribution of SMART objectives on implementation of strategic plan..........................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is considered as process which is set out for the purpose of achieve
target and objectives. In simple words it is defined as long term business planning which is attain
long term goals. It is able to reduce weaknesses and enhance strengths. It involves competitive
strategies which is needs to be implement by organization for long term process. The present
report is based on ALDI which is international supermarket. Firm having approx. 10,000 stores
in around 18 countries. Through this they earn turnover which is more than approximately. 50
billion pounds (Scholes, 2015). Cited firm is based in UK which is incorporated by two brothers
name called Karl and Albrecht in the year 1946. It provides varieties of goods and services to
their targeted customers in order to attract them. There are various factors which having impact
on their existence. There is set of mission, visions and goals which are able to maintain
performance and target as well. Staff members have to frame strategic plans. Micro and macro
environment factors are helpful for companies which having impact on its performance.
TASK 1
1.1 Mission, visions, goals and objectives of ALDI.
ALDI is an UK based retailing sector company which is able to provide large number of
products and services in international market. It is largest firm which is deals in retail sector.
Mission: ALDI wants to provide participation of citizen in in creation of environment in
order to growth and development of society (Meskendahl, 2010). They want to expand business
in various other countries through providing goods and services to them.
Vision: They have to frame plans in order to attain their target in order to positively
contribute future development of economy. Through this they provide long term growth to
organization.
Goals: There are various set of goals cited firm which are having impact on its
existence. Through this companies are able to attain their target which are as aligned below-
 Provide proper training to their staff members in order to enhance their skills and
knowledge.
 Try to provide goods and services according to targeted customers on the basis of
their expectation.

 Members needs to ensures that available resources are properly utilize for
complete task.
 The main goal of the company is to enhance performance in effective manner.
 Members are responsible to identify market demand of customers and try to
provide goods and services accordingly.
 Company is responsible to achieve target within stipulated time period and
maintain services as well.
Strategic planning consists mission, vision and goals of company through which companies are
able to attain their target and goals as well. Furthermore, this is forecasting process which is
helpful to maintain their performance (Astrachan, 2010). All factors are related to purpose of
organization which is needs to typically communicated in written form. Provide effective
working environment to their workers through which they easily perform task. Every
organization have to set mission, vision and objective in order to attain their target and maintain
performance as well. Have to frame proper planning and strategies for the purpose of meet
objectives. It is forecasting process, through which members of ALDI can meet their long term
as well as short term goals.
1.2 Factors which impact strategic plan.
Strategic plan is considered as long term goals for ALDI. Staff members of cited firm are
responsible to implement those strategies which are helpful for them to attain their long goals
and objectives (Woodcock, Green and Starkey, 2011). Implementation needs to conducted on the
basis of requirement of the firm. All activities need to be conducted according to rules and
regulation which are imposed on them as per the provisions of company.
Strategic plan is the systematic planning which is considered as forecasting process for
organizations. Members have to prepare proper schedule and follow it as well in order to comply
them. Furthermore, both managers and leaders are responsible to instruct their subordinates in
order to complete task and try to attain their target as well. It consists several factors which are as
aligned below-
Needs of consumer- Employees and other members are needs to maintain performance of
company which is able to attain needs to consumers. Goods and services which are provide b6y
cited firm is able to retain customers and able to fulfil needs of them as well. Firstly, they have to

identify current market demand of their customer and analyse their expectation as well. After
that try to set target accordingly. Try to identify current market demand of customers in order to
attract them and provide services according to their needs. Buyers play significant role in
continuous growth and development of firm.
Future direction of competition- Leaders and managers of ALDI are responsible to
provide proper direction to their staff members in order to complete task in timely and efficient
manner. They have to perform function which is beneficial to attain long term as well as short
term goals and objectives (Montgomery, 2011). Employees are bound to follow direction which
is provided by their higher authorities. Through this they can easily attain target and maintain
performance or work quality as well. There is various factor which having impact on the
existence of firm.
Maintain competitive advantage- Through this factors companies are able to expand
their business in international market and retain customers as well. With the help of this factor
company is able to compete with its competitors. Staff members have to frame plans and
strategies also try to implement them according to requirement of firm. Through framing and
implementation of strategies company can easily attain competitive advantage in order to survive
in international market.
1.3 Various techniques which are used in developing strategic business plan.
There are various techniques have been used which are beneficial for long time success
of company. But firm needs to implement them according to requirement as all are different from
each other. They provide opportunities to business in order to attain target and frame systematic
process as well (Peteraf, Gamble and Thompson Jr, 2014). Provide faster market demand and
development of planning. Through which cited firms are able to satisfy their customers and
maintain own performance as well. Techniques needs to introduce by higher authorities among
their subordinates for follow as per the requirement if company. This process is able to allow
companies to attain competitive advantage through which they easily attain target. There are
different types of technique which are as aligned below-
BCG matrix- This technique is designed to meet long term strategic plan in order to
receive long term opportunities by reviewing its portfolio of goods and services to decide to
invest to develop or grow their products and services. It is able to provide specific advice to

companies in order to attain their target (Cinquini and Tenucci, 2010). With the help of this
process form is able to increase their profit level and enhance performance as well. ALDI opt
this process to retain customers and expand business in international market. This technique
plays important role in growth and development of organization.
Directional policy matrix- The main essence of strategy is select one or more products
from various option which is able to create confusion among members. So that, directional
policy matrix is the tool for helping companies to choose segment to which they give preference.
Furthermore, it is positively contributing to the decision making process in its day to day running
activities. It is able to attract segment which are beneficial for cited firm to attain their target and
objectives as well (Klettner, Clarke and Boersma, 2014). Through firms is able to access its
production and distribution channels in across the national border. Human resource as well as
capital effectively contribute in growth and development of company. Contribute in current and
future market share. This technique is helpful to select one or more variables from various.
Ansoff's product market matrix- It is a technique to identify corporate growth and
opportunities. Also analyse its market share as well which are established at the time of merging
current as well as new goods and services which is introduce by ALDI in international market.
Through company is able to identify growth rate of firm which enhance market position. It is
able to suggest market and goods which are available in current market. In this technique two are
mentioned in it such as Ansoff which is considered as product market and on the other side
matrix shows various ways to achieve growth.
TASK 2
2.1 Strategic positioning of ALDI by carrying out organization audit.
With the help of organizational audit companies are able to identify its financial position
in international market (Reinhardt and Stavins, 2010). It is conducted by auditor who is closely
connected with ALDI. He having various rights to check books of accounts of firm and
information which organization is not able to introduce in public. While conducting audit
company is able to identify its actual position and maintain their performance as well.
SWOT analysis of ALDI-
Strengths

 The biggest strength of ALDI is offer goods and services at low prices which are
easily affordable by people. Through company is able to attract large number of
customers and maintain performance as well.
 Also staff members of this firm are responsible to operation cost low. Also it
operation business in around 15 countries by offering quality products and
services to their customers.
 They provide best quality of goods and services to their staff members in order to
attract large number of people.
 They frame plans and strategies in order to increase number of stores in various
countries.
Weaknesses
 They promote less as compare to other organizations. Through this reason its
brand awareness is less compared to other companies.
 Provide items at low cheap price through which they earn less profit.
 Cited firm not having impact globally as there are less number of chain stores.
Opportunities
 Higher authorities have to take effective decision and need to invest more in
order to advertise its products in across the national border as well as domestic
level.
 They have to expand into growing economies for increase their sales.
 Frame effective selection and recruitment process in order to appoint best person
for the company who having required level of skills and knowledge. Capabilities
for complete task within stipulated time period and in effective manner.
Threats
 increasing number of competitors is the biggest threats for companies. Through
this cited firm is not able to attain its set of target and maintain performance as
well.
 Unnecessary changes in law amendment which having impact of it functions.
Government enacted amendment in provision of law which firm needs to comply
with.

Leaders and managers of ALDI are responsible set benchmarking for their employees who are
currently employed in a firm (Verreynne and Meyer, 2010). So that, workers are need to use
their collective efforts in order to attain their task. Also they have to maintain performance
according to given scenario planning. Plan needs to implement as per the requirement of
company.
2.2 Environmental audit for ALDI.
Environmental audit is considered as management tool which involve system, document,
objectives etc. It has been to measure impact of activities on environment. This audit is
conducted as investigate, identify, analyse and understand impact of functions. This activity is
able to improve existing employee activities in order to decrease adverse effects on various
activities on environment (Nordqvist and Melin, 2010). It has been defined by financial sector
and conducted by auditor. Through this firm receive so much knowledge and data about
company and its current performance.
Evaluate micro environment for ALDI-
Competitors- Increasing number of competitors which having impact on its performance.
ALDI needs to improve its work quality then the other firms.
Customers- People are considered as important part of every company. ALDI have to
produce goods and services according to expectation of their customers. Try to attract large
number of customers.
Suppliers- ALDI is the multinational superstore which is engaged in the business of
production and distribution of goods and services in international market (Oltra and Luisa Flor,
2010). Company received raw material from their suppliers in order produce best quality of
products and distribute the same in international market.
Evaluate macro environment for ALDI-
Macro environment is having impact on the existence of company which is able to
influence its activities or functions. For the same purpose it conducts PESTLE analyse. Through
this firm is able to evaluate its performance.
P – Political: Unstable political factors are having impact on its existence. Government
impose new legislation, tax policies and other market condition are influence them (Parnell,

Lester, Long and Köseoglu, 2012). Through this factor, current performance of company is being
effected and it not able to survive as well.
E – Environmental: For the purpose of production they have to follow rules which are
related to environmental factors.
S – Social: Large number of population and unequal distribution among people is the
biggest influential factor for companies. Through this ALDI as retail firm not able to deliver their
goods and services in entire country.
T – Technological: For the purpose of promotion products and services in other
countries cited firm have to use advance technologies. Promote its products through online
shopping.
L – Legal: Companies needs to follow rules, regulation and policies which are imposed
on them as per the provision of law. Government frame various rules which are related to
performance of company.
E – Economical: Unequal distribution of income is conducted in various places. In this
situation purchasing power of people is becoming reduce and they are not able to buy goods and
services of company. Through this firms are not able to increase its level of profit margin. In this
situation there is financial pressures create among members of company.
2.3 Importance of stakeholder analysis.
Stakeholder analysis is the conflict resolving process which is helpful for every
organization. It is considered as project management, which having impact on relevant parties.
This process is able to protect the interest of stakeholder (Reich and Benbasat, 2013). Through
this companies are able to resolve problems and manage performance as well. This factor is
having ultimate impact on current stakeholders of organization. It is needs to be on a regular
basis which is helpful for entire company. Through this they can enhance performance and
maintain work quality as well. For the same purpose they have to make necessary changes which
are related to stakeholders and considered as strengths for them.
This term is also play important role in strategic plan in order to enhance work quality of
entire company. It is forecasting process which is helpful to attain their long term as well as short
term goals and objectives. Various importance of stakeholder analysis is as follows-

Identify actual position- With the help of stakeholder analysis ALDI is able to identify
its actual performance or position which is helpful for them to attain their target or objectives.
Importance of stakeholders- Through this process company is able to identify
significance of stakeholders in presence of company. These are important aspects of every
business organization.
Conflict resolve- Present term is considered as conflict resolving process which is
helpful for companies to attain their target in effective manner. Through this no further confusion
is being created in working place (Schrader, Freimann and Seuring, 2012). Also employees are
able to communicate information or data with other staff members which is important for them
in order to complete tasks and attain objectives as well.
Review performance- Higher authorities of cited firm are able to review its performance
and receive opportunity to identify own strength and weaknesses. With the help of stakeholder
analysis companies are able to manage performance.
2.4 Present new strategy for ALDI.
Staff members are need to frame plans and strategies and also try to implement them
according to the requirement of company. For the same purpose managers and leaders are
responsible to provide training and development to their subordinates in order to enhance their
skills. Staff members needs to frame new mission, goals and vision of the company. They have
to analyse or identify stakeholder analysis. Also try to implement plans and strategies in order to
attain their target and goals. Framing of strategies and planning is the forecasting process which
is helpful in development of firm. Members are responsible to use their collective efforts and
maintain performance in effective manner.
Conduct training session- Members are responsible to conduct training and
development session for their employees in order to improve their skill, knowledge and
experience.
Receive feedback- Staff members are able to receive feedbacks from their team members
for the purpose of analyse actual performance.

TASK 3
3.1 Alternative strategies which are related to market entry.
ALDI needs to opt various alternative strategies which are related to market entry. There
are variety of ways through cited is able to enter in new market in order to attract large number
of customers and increase profit margin as well (Robinson, Lloyd Sherwood and DePaolo,
2010). Acquisition, merger, alliances etc. are some best example for entry. There are number of
factors which having impact on this process.
Market entry strategies
Mergers and Acquisition- In this concept two companies are agreed to share profits and
work together. In case of merger two companies joint their business and agree to share profits
margin as well. Through which ALDI can enter into new market and its members use their
collective efforts in order to attain their target and objectives as well. On the other hand, in case
of acquisition one financially strong company can purchase one financially strong company and
able to hold majority of its share (Hahn, Kolk and Winn, 2010). After this acquirer firm having
ultimate control over another firm which is setup in another country. Through this process is able
to expand its business and increase level of profit margin as well.
Strategic alliances- This term is considered as strategic partnership in which two or more
companies who having same motive to run business are combined their business together in
order to attain their target. Furthermore, ALDI can frame agreement with other firm which is
setup in another country. It is considered as legal partnership and both companies have to follow
rules and regulation which are imposed on them as per the provision of laws.
Substantive growth
Staff members of ALDI needs to attain substantive growth for long term success of
company. This can be achieving with the help of development of goods and services in different
country, horizontal and vertical integration and diversification. These are the factors which
helpful for firm. In terms of diversification cited firm enlarging range of products and try to
attract large number of customers as well.
Limited growth strategies

The main aim of limited growth strategies is to brings company for maximum growth.
Through which reduce risk and increase level of profit margin as well (Woodard, Ramasubbu,
Tschang and Sambamurthy, 2012). Members have to plans for its product development and also
use innovative ideas in order to become their goods and services in attractive formate.
Retrenchment
ALDI having number of stores, so that, among these those not working well or not able to
expand business managers needs to liquidate them. Through this company introduce new
opportunities for them and also for the purpose firm can firm cam selling off unprofitable part of
premises.
3.2 Chosen of strategies from various alternatives.
Staff members of ALDI have to select one or more strategies from various alternatives.
Through this companies are able to enhance its performance.
Suitability- Staff members needs to ensures that its activities able to manage their
performance and work according to the requirement of firm and able to meet expectation of
people as well. Members are responsible to set strategies which are suitable for entire company
and able to maintain their performance. This is the helpful toll for entire firm. They have to use
collective efforts in order to attain current market demand.
Feasibility- In this members have to ensures that available resources are effectively use
which is helpful for the entire company. Conduct break even analysis for the purpose identify its
actual international market position.
Acceptability- This factor is related to expectation of stakeholders for this purpose they
have to analyse their expectations and try perform task accordingly. Through this able to reduce
risk and attain their set of target and goals as well (Spender, 2014). For the same reason they
have to produce and deliver best quality of goods and services to their customers. Suppliers
provide raw material as per the requirement of company.
Acceptability is the more suitable technique for companies in order to meet their
expectation of employees. Staff members have to provide various types of goods and services to
their targeted customers in order to meet their expectation and fulfil their demand as well.