BMM3003 Business Operations Management: ALDI Business Model Report

This report provides an analysis of business operations and management, focusing on a case study of ALDI. It addresses operational management issues such as supply chain disruptions caused by Brexit and COVID-19, and explores how these issues affect the availability and pricing of consumer goods. The report examines ALDI's unique business model, which offers a different customer experience with limited product variety, and discusses the sacrifices customers make to access this shopping experience. It also highlights IBM as an example of a company with strong business ethics, detailing their commitment to social responsibility and sustainable practices in areas like climate risk management and supply chain. Furthermore, the report discusses the importance and challenges of marketing, including its impact on business operations, distribution, financing, and sales, while also considering factors such as market research and pricing strategies. Desklib provides a platform for students to access this and other solved assignments.

BMM3003
Introduction to
Business
Operations and
Management

Table of Contents
Introduction.................................................................................................................................................3
Main Body...................................................................................................................................................3
TASK 2..........................................................................................................................................................4
Question 1: ALDI and similar stores offer different customer experience. Do you think a similar
business model would work in other industries? Please give examples to illustrate your answer............4
Questions 2: What are the sacrifices customers have to make in order to have access to this shopping
experiences?............................................................................................................................................4
TASK 3..........................................................................................................................................................5
References...................................................................................................................................................6
Books and journals......................................................................................................................................6

Introduction
Business operations and management is the crucial field that wherein different activities
are performed in order to offer products or services to the customers in timely manner. In
operation management, different tools and techniques are used in order to produce quality
products. On other side, management is related with administrating different activities to attain
pre-defined goals (Kumar, Mookerjee and Shubham, 2018). The preset study will address
different operational and management issues that are being faced by the companies. Further, it
will also include the analysis of case of study of ALDI company. Further, a suitable example of
ethical approach followed by the organization will also cover in the following study.
Main Body
Operational management issues are related with disruption of supply chain management
of the company. It affects the daily activities of the individuals by negatively affecting the supply
chain management (Guha and Kumar, 2018). Brexit is one of the crucial issues that have put a
profound impact on operational management of the entities. Brexit enhanced the cost and cause
delay in supply chain. Due to Brexit, Companies are not able to exchange necessary resources
and tools with each other which have direct impact on the production of the organizations. Now,
companies are required to prepare trade agreements to move between European countries and
UK. It is possible to deal with this issue by preparing suitable policies to facilitate transaction of
goods between both countries (Impact of Brexit on economy 'worse than Covid, 2021).
It is found that shortage of labor will affect the supply of necessary food and other
consumer products. Here, the customers will not able to find necessary products from
supermarkets. According to the study of Morrisons, it is found that shortage of consumer goods
will increase the overall price. The major reason of shortage is the disruption of supply chain
caused by the COVID-19. Now, the customers are not able to get necessary food and drinks in
the shelf of supermarkets of the country. In 2020, the entire east of England faced the issue of
related to lack of supply of water bottles. According to FDF, the entire country was facing the
issue of shortage of labor. In food and beverage industry, there is shortage of nearly half a
million workers that will further influence the supply of food and beverages within the country.

In UK, various organizations including supermarkets, pubs, and restaurants blamed that lack of
heavy vehicle and drivers also caused issue in food & supply chain (Food shortages could be
permanent, warns industry body, 2021).
TASK 2
Question 1: ALDI and similar stores offer different customer experience. Do you think a similar
business model would work in other industries? Please give examples to illustrate your answer.
ALDI is offering a different shopping experience wherein they provide limited number of
choices to the customers. Unlike traditional supermarket shopping, ALDI and other such small
stores offer limited variety to the customers in order to ensure that customers visit frequently to
the store. Here, the main aim of the organization is to change the traditional supermarket model
which operates at large space offering different types of variety of products. It is based on
ensuring frequent visit of clients rather storing huge quantity during one visit. For this purpose,
the entity operates within 1000 to 1500 square meters. Here, they ensure that the customers find
the stores at their nearby locations so that they do not need to travel great distance for the
purpose of grocery shopping. However, small number of products offered by the small stores but
here, it is easy to interact with the customers. This business model can be utilized in fashion
industry as it will help the companies to avoid additional cost which might occur due to stock
surplus and deficiency. Here, the entity will maintain limited varieties of fashion items. It is easy
to make forecast about limited number of items and it will also encourage the customers to visit
the outlets frequently. It will help the fashion companies to effective manage the inventory. By
this way, the fashion stores can minimize the chances of stockouts efficiently.
Questions 2: What are the sacrifices customers have to make in order to have access to this
shopping experiences?
Customers are the crucial part of business as they purchase necessary products or services
so that the organization get adequate amount of funds in order to keep the business functioning
for longer run. In the given scenario, ALDI is offering limited number of varieties to the
customers. The main purpose of the company is to ensure frequent visit of the customers in
supermarkets. In this situation, the customers are sacrificing the experience they receive in the
traditional supermarkets. Here, they cannot have variety of products to select the appropriate

product or service. The smaller size of stores naturally reduces down the number of products so
that customer will have to choose suitable products or services from the available variety. They
cannot make selection from the large quantities that will affect the purchasing experience of the
buyers. With traditional supermarkets, customers can stock up the products so that they will not
need to visit to the stores frequently. It saves the time and travelling cost of the customers. Also,
the customers can utilize their time in other work. However, the existing situation is based on
such business model where ALDI will offer limited number of choices to the customers. To gain
this kind of shopping experience, buyers have to sacrifice their buying habits of choosing
suitable product from ample of varieties. In addition, they also have to sacrifice their habit to
purchase products in bulk as there are limited number of products are available in the small store.
Also, customers have to visit to the stores frequently so that they can buy necessary products to
meet with the future requirements.
TASK 3
Business ethics are the practices of following such approaches which will have positive
impact on the society as well as the environment. It is the study of appropriate business policies
& practices in terms of discrimination, social responsibility, corporate governance and more.
Following business ethics make an organization enable to enhance the brand reputation
significantly.
IBM is considered as one of the most ethical companies across the world. The company
performs different activities in order to drive positive change in the society. The organization
follows longstanding commitment of integrity which helps them in maintaining a positive image
among the stakeholders. It is identified that IBM spends nearly 25.8 billion $ across the global
network of more than 13000 suppliers in 2018 (IBM named one of the World’s Most Ethical
Companies, 2020). Here, the entity works with suppliers in order to establish requirements &
assess compliances for sustainable solution. Since starting, IBM has adopted policies to promote
inclusion. In addition, they treat people with respect & dignity. The principle of trust and
transparency helps the business entity in making a positive influence on the stakeholders. In
addition, IBM makes plan for sustainable and profitable journey by AI powered solutions &

platforms. The sustainability principles of the respective company are based on five key areas
such as supply chain, climate risk management, emission management and more.
Climate risk management: This is a practices which is adopted by IBM in order to
ensure sustainable development to face the unexpected situation which bring together the
proprietary, weather and IOT data. Here, effectively responding towards advanced analytics on
assets, customers and employees will help in ensuring the continuity of business (IBM, 2021).
Sustainable supply chain: In this, IBM put efforts in order to minimize wastage by
offering low cost services by offering greater supply chain visibility with up-to-date analysis of
inventory and performance evaluation. For this purpose, they ensure to establish set up suitable
practices in order to control the issue of emission in an efficient manner.
It is identified that IBM has a goal to reach at net zero green house gas emission by 2030.
For this purpose, they ensure to put efforts towards sustainable energy and development. In
addition to this, the organization also takes suitable steps to prevent pollution & control the waste
management. Here, IBM will eliminate non-essential, use of plastic in its product and also
reduce down the use of hazardous ingredients. Additionally, the entity also take suitable steps to
protect the interest of stakeholders. For this purpose, they ensure to provide better work
environment to the employees. In addition they treat the employees with dignity and respect and
also provide them opportunities of future growth.
TASK 4
Marketing management or function is a discipline which focuses on the practical
application of marketing and various orientation techniques inside and business entity to promote
its products in the market (Bragg, and et. al., 2020). Marketing function is very important for any
business and it also has significant effects on the operations management and overall
business management. The impacts of marketing on business operations can be identified as
most crucial and important parts for business growth.

Marketing impacts on the distribution process of the company and helps to create
distribution channel that could help the company to distribute its products and services across the
market.
Financing in the business activities becomes more easy by conducting an successful
marketing campaign (Wiener, Ellen and Burton, 2020). For creating a successful marketing plan
certain finances are required and this also helps to allocate products and services to the most
relevant market segments. Marketing also helps to produce effective marketing research to find
out the target demographics that would help to place the products of the company at best
locations in the marketplace.
Market research can help with effective price so that the business does not lose chance to
gain profits by assessing the prices in the market and accordingly pricing their products
(Rayburn, Anderson and Sierra, 2020). The company could get advantages of pricing their
products at such a price that is not too low to decline its o overall profits.
Marketing facilitates promotion in the market which helps to create demand for its
product in the market so that more and more customers buy its products. At the end the
marketing helps in creation of demand that helps in effective sales of the company's products.
Challenges of marketing
Marketing faces various challenges and the first problem is related to defining the
product of services that a marketeer needs to explain to the common public. Even if the
marketeer is capable to explain product and services the challenge of searching the right
segment market becomes difficult for them.
There are problems and challenges related to inadequacy of marketing techniques and
knowledge among market executives. This creates the problem of adequate knowledge among
the executives to attract and influence the customers to purchase their product. Marketing was
faces the challenge of invisible nature of the business that many customers may not be aware of
the validity and authenticity of business. The customers may not be e aware of the business
that creates a different mindset among them for or the business as fraud.

Importance of marketing
Marketing plays important role in the business because it helps to create higher
revenues for the company and business. The marketing would help the business to set better
goals by studying marketing trends and analyzing the needs of customers. Marketing also
helps in promoting the business activities, products and services of the company. Marketing
improves the sales and also has to allocate finances at the places required so that the funds of the
business can be used in optimum ways. Marketing helps to understand where the products should
be placed and how much product is required to be produced to fulfill the requirements in the
market.
Reflection
From the above it could be said that marketing is essential for business and helps in
various operating activities and management of organization. From the understanding it could be
said that marketing helps in in in many ways to the business such as it helps in effective
distribution of the products and services across the market. Marketing is effective to create
effective financial plans for the business so that its activities can be done in most optimistic ways
possible (Drugova, Kim and Jakus, 2020). Marketing helps to search for the target market and
help product placement at the suitable location where most of the customers could reach it.
Marketing function also faces various challenges which are related to you define in the products
and services to its customers in the best possible ways. The another challenge faced by marketing
is related to the search of skilled and knowledgeable people to tackle this task effectively. Even
if the market is suitable and customers are willing to purchase the products they may also
hesitate to buy a product of a company which is unaware to them. The importance of marketing
on the activities of business could also be identified because it has to create higher revenues for
the business and set better goals by studying marketing trends.
TASK 5
in the following report it has been understood that operational management can create a
disruption to supply chain management of the company. In this report it has been understood that

supply chain management could negatively affect the activities of business that could be
understood with the example of Brexit. The CBR challenges were faced by many companies
during the outbreak of Brexit because due to this the companies were not able to change
necessary resources and tools that reduce the production capacity of organizations. Therefore, the
European companies are now planning to make suitable policies to facilitate transition of goods
between the countries. It is found that many different small shopping complexes which provide
limited number of choices to the customers are adapting to the change frequently. By this the
company is able to focus a limited number of items that would encourage the customers to visit
the outlets frequently. Customers are a crucial part of business as a purchase necessary products
or services so that organization can get adequate amount of profits in order to keep the business
running. The business required various ethical practices that helps to create a positive impact on
the society as well as the environment (Cornwell and Kwon, 2020). For this purpose an
organization follows religious rating commitment of integrative it has been to maintain a positive
image among its stockholders. To maintain this positive image business uses sustainable supply
chain and many other ways to stay competitive in the market. At the end the marketing plays an
important role in the overall business activities and growth. Marketing is essential function that
helps in operating activities of the business and keep the business running. Marketing can be
portrayed as the bloodline of the business as it helps to maintain the supply of products in the
market to the customers and bring revenue to the business. Marketing have its own challenges as
well as advantages that can be seen on the business and its activities. Even though many
challenges arises in a business the growth should not be hindered and it could be ensured by
keeping keen eyes on its overall activities that helps to grow.
CONCLUSION
From the following keyboard it had been understood that business activities and it supply chain
is widely affected by various factors. One such factor was brexit that affected the business in
such a way that new policies and frameworks have to be made to overcome that situation. The
business in in today's world facing many problems that are also related to sustainability and

growth maintaining growth in such a way that it also includes wellness of society and
environment. In the report it had been identified that every business is affected by its marketing
activities and it is important keep and maintain effective marketing strategies for growth of the
business.
References
Books and journals
Kumar, S., Mookerjee, V. and Shubham, A., 2018. Research in operations management and
information systems interface. Production and Operations Management, 27(11),
pp.1893-1905.
Guha, S. and Kumar, S., 2018. Emergence of big data research in operations management,
information systems, and healthcare: Past contributions and future roadmap. Production
and Operations Management, 27(9), pp.1724-1735.
Bragg, M.A., and et. al., 2020. Fast food, beverage, and snack brands on social media in the
United States: An examination of marketing techniques utilized in 2000 brand
posts. Pediatric obesity, 15(5). p.e12606.
Wiener, J. L., Ellen, P. S. and Burton, S., 2020. Journal of Public Policy & Marketing in Our
Turbulent Times: Foundations Laid and Challenges Ahead.
Rayburn, S.W., Anderson, S. and Sierra, J. J., 2020. Future thinking continuity of learning in
marketing: A student perspective on crisis management in higher education. Marketing
Education Review. pp.1-15.

Drugova, T., Kim, M. K. and Jakus, P. M., 2020. Marketing, congestion, and demarketing in
Utah’s National Parks. Tourism Economics. p.1354816620939722.
Cornwell, T. B. and Kwon, Y., 2020. Sponsorship-linked marketing: Research surpluses and
shortages. Journal of the Academy of Marketing Science, 48(4). pp.607-629.
Online
IBM named one of the World’s Most Ethical Companies, 2020.[Online]. Available through :<
https://www.ibm.com/blogs/corporate-social-responsibility/2020/02/ethisphere-2020/>
Food shortages could be permanent, warns industry body, 2021.[Online]. Available through :<
https://www.bbc.com/news/business-58519997/>
IBM 2021., IBM Sustainability Solutions. .[Online]. Available through :<
https://www.ibm.com/in-en/impact/sustainability/>
Impact of Brexit on economy 'worse than Covid'. .[Online]. Available through :<
https://www.bbc.com/news/business-59070020/>