Report on Business Operations, Management, and Ethics at ALDI

This report provides a comprehensive overview of business operations and management, focusing on operational issues faced by companies like TESCO and Sainsburry's, along with recommended solutions. It delves into the customer experience offered by ALDI, examining the viability of its business model in other industries and the sacrifices customers make for this experience. The report also explains ALDI's approach to business ethics, highlighting how the company prioritizes customer and employee well-being through systematic product presentation, efficient inventory management, and fair pricing. Furthermore, it discusses the significance of supply chain management in optimizing production flow, minimizing costs, and enhancing customer service. The conclusion emphasizes the critical role of effective operations and management, alongside ethical business practices, in achieving organizational objectives and improving overall performance.

Introduction to Business
Operations and
Management

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Task 1 .........................................................................................................................................4
Contemporary Research about operational issues as well as recommending for reducing the
issues...........................................................................................................................................4
TASK-2 ALDI............................................................................................................................5
ALDI and similar stores offer different customer experience. Do you think a similar
business model would work in other industries? ...................................................................5
What are the sacrifices customers have to make in order to have access to this shopping
experiences?...........................................................................................................................6
Task 3..........................................................................................................................................7
Explaining the approach of business ethics in ALDI grocery store...........................................7
TASK-4 class discussion.............................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Operation management refers to the area of management which is concerned with
controlling and designing the process of redesigning and production of business operations in the
production of goods and services. The key role of operation management is to transform raw
material into finished form and efforts of labour into the finished production of goods and
services as well(Biazzin and et.al., 2017). The present report will cover discussion about
operational issues of particular companies such as TESCO and Sainsburry. In addition to this, the
report will cover analysis about the solution of operational problems and also about the customer
experiences which has been provided by the ALDI grocery store. Moreover , the report will
cover discussion about significance of ethical work culture of employees and also about the
impact of supply chain management into the daily operations of business.
MAIN BODY
Task 1
Contemporary Research about operational issues as well as recommending for reducing the
issues
The operation management is very challenging for the organisation as it helps the firm in
automating the daily process of business in such a manner that it leads towards higher efficiency.
Following are the explanation which represents the key operational problems which has been
faced by large super market companies such as TESCO and Sainsburrry's
Operational issues faced by TESCO company
The operations and logistics of the company are facing great problems due to fast
changes into the industry of grocery. The operational part of TESCO company has been strongly
affected due to strict rules and regulations which has been imposed by the BREXIT situation.
The challenges are regarding the import and export of raw materials from other countries and
these are the problems faced by the company (Erasmus and et.al., 2020). TESCO is also lacking
in terms of adopting proper logistics services for delivering products to the wholesalers as well
as retailers. When company does not maintain proper data of stock and it will result into conflicts
and complexity in terms of doing operations of business on the daily basis.

Solutions of the problems : In order to overcome from these problems it has been
recommended that the company should adopt flexible approach in identifying new technologies
into effective manner. This is a approach which supports the company in terms of enhancing the
efficiency of daily operations(Francis and et.al., 2016).The company can also find out the
solutions for logistics department through expanding the space of warehouses and through
adopting advanced technology such as artificial intelligence.
Operational issues of Sainsburry's : With the introduction of BREXIT policy which lead
towards the operational problems for the supply chain process. When new trade policy has
introduced then it has negative influence on the supply chain process of the firm through
introducing different import and export restrictions. There are certain recent changes into needs
of customers which is related to new design clothes that has posed a major challenge in front of
the company as firm has to buy new machines in order to manufacture designer clothes.
Solution of the problem: From overcoming the trade restrictions of BREXIT, it has been
recommended that company has to made proper strategies for it. The company can take support
from social media platforms in order to understand needs and requirements of customers within a
set period of time. These solutions help the Sainasburry's company in order to be prepare for
future tends of fashion through analysing purchasing pattern of customers into deeper manner.
The company also require to cut their overhead costs while performing the daily operations into
positive manner.
TASK-2 ALDI.
ALDI and similar stores offer different customer experience. Do you think a similar
business model would work in other industries?
This is true that client have assorted experiences from correspondent merchandise establishment.
The ALDI is a German supermarket which operates their business since 1946. The ALDI sales
outlet focal point is on skilfulness and provide the need supported purchasing people who makes
an regular visits in stores rather than stocking up. This store supply few variant of trade good that
limits to the choices of the customer. The tiny size of shop cut down number of products that is
offered to customer. As in comparison to other similar store such as Tesco which is a British
multinational groceries and general merchandise retailer institution which offers mixture of

products to its customers which makes customer faces assorted mental object. In current
situation Tesco they have to stock up there shelves and requires cost-effective administration
inventory by having preparation and prediction of the needful products . The client also faces
various mental object in similar stores regrading the cost as ALDI is price reduction groceries
chain which attains a substantial ground in its dealing management. According to my thought
process, the similar business model won't work in the other commercial enterprise as ALDI deals
in merchandising industry which have little store offering few variety of commodity to
customers. This in general run their business operation in 1000 to 1500 square meters of space.
As in comparison to other commercial enterprise such as fetching of service industry the client
service is an customer experience which are interconnected as the this includes the human
fundamental interaction and directly supports customers. The force of stores helps the customers
in cater information regarding commodity and helps in making improved choice . The impressive
service leads to gain in customer emotional state and by hiring right people in management.
There are ways to justify the negative impact strike by up-skill workers and investing them in
long term. (.Hobbs, 2021.)
What are the sacrifices customers have to make in order to have access to this shopping
experiences?
Customer sacrifices is the space between what is delivered and what genuinely a customers
needs. The following sacrifices are made by customers.
Emotional costs- In making an merchandise acquisition this can be very feverish, discouraging
and sometimes annoying for clients. As they needs to program what and when to make
purchase, went out and arriving at store, dealing with staff etc.
Energy- The consumers invest its energy for getting ready, footstep out for shopping, movement
from home to mercantile establishment or conduct drive which also refer to the fuel
consumption for transport.
Time- This refers to the time required for physical outlets in finding the goods and comparing to
their substitutes present in the market which includes their specification and rate.
(Hofmann,Shim, and Shin, 2021)

Money- This is one of the prime concern as the various product and services offered by business
may involves different tax, charges etc. similar their can be discount scheme for the new
customers.
Task 3
Explaining the approach of business ethics in ALDI grocery store
The ethics of business is basically considered as the ethical actions which has been
performed by the management in order to improve well-being of their customers and employees
as well. The ethical approach is basically based on this opinion that every employee should have
right regarding the dignity at the organisational level. With reference to ALDI store of grocery,
the company has give major emphasis on meeting the requirements of customers through
presenting products into systematic manner(Haendel and Jordan., 2019). The company basically
provides such kind of experience which fulfil their needs and there is no wastage of time in terms
of finding out the right product for themselves. This kind of strategy supports the company in
terms of creating value for customers and encourages for frequent visit within the grocery store.
The company measures regarding maintaining low inventory level has benefited the
employees as it reduces their extra time regarding planning and forecasting stock. Moreover, the
organisation has their own exclusive brand products which supports the company in reducing
their overhead costs. This allow customers to buy products at lowest possible price. Furthermore,
proper designing of stores with the lowest product volume support employees to minimise the
challenges regarding restocking of shelves on daily basis(Tehseen and Ramayah., 2015). This
enable the staff members to lay focus on performing other business activities that can improve
their skills and knowledge. Hence, this ethical step of company assisted it to boost the loyalty of
customers as well as staff members. Most importantly this has created the healthy working
environment with the business.

TASK-4 class discussion
Supply chain management is the procedure which handle entire production flow of a good and
service manufactured by a company. This process starts from the beginning that is the raw
material and all the way to the final stage that is delivering the final useful product to the end
user. An organisation develop a effective network of suppliers that moves their finished good to
the customer through various stages. I studied that supply chain management is a very important
aspect for every organisation as it minimize cost, waste and time in production cycle. According
to me this process have many advantages for the company such as identifying potential
customers through the use of data analysis it will help manufacturer in anticipating the shortage
of material. From the study I have observed that supply chain management boost customer
service as it helps the customer to make a demand of correct product mixture and quantity.
Further I have also understood that this process improves the financial position of an
organisation as it helps to increase profit leverage, decreases fixed assets and increases cash
flows. I have also studied that a well structured supply chain management helps an organisation
to enable their inventory administration to be much more impressive. At last I have also observed
that this process helps an organisation to remain competitive in their respective market field
because every institution has unique complexities and challenges an this model helps them in
identifying their area where they have to bring a change or modification for their betterment.
(Gherghina, and Simionescu, 2021)
CONCLUSION
The above stated report concludes that at the business level operations and management
plays a very significant role in it. It has been concluded that at the organisational level there are
companies who have to face problems related to their operational part and it is necessary that to
find out solutions into effective manner. It has been determined that it is important that to do the
business into ethical terms so that results can be achieved into fast pace manner. When business
have been done into ethical framework then it enhances the level of performance into positive
manner. So its very important to have proper management at the organisational level in order to
achieve objectives into the positive framework.

REFERENCES
Books and Journals
Biazzin and et.al., 2017. Supply chain and operations strategies for problem-solving in Latin
American countries: An introduction. Journal of Operations and Supply Chain
Management (JOSCM), 10(2), pp.1-5.
Erasmus and et.al., 2020. Using business process models for the specification of manufacturing
operations. Computers in Industry, 123, p.103297.
Francis and et.al., 2016. Abnormal real operations, real earnings management, and subsequent
crashes in stock prices. Review of Quantitative Finance and Accounting, 46(2), pp.217-
260.
Gherghina, Ş.C. and Simionescu, L.N., 2021. Exploring the co-movements between stock
market returns and COVID-19 pandemic: evidence from wavelet coherence
analysis. Applied Economics Letters, pp.1-9.
Haendel, D. and Jordan, A. A., 2019. Foreign investments and the management of political risk.
Routledge.
Hobbs, J.E., 2021. The Covid-19 pandemic and meat supply chains. Meat Science, 181,
p.108459.
Hofmann, B., Shim, I. and Shin, H.S., 2021. Emerging market economy exchange rates and local
currency bond markets amid the Covid-19 pandemic. Available at SSRN 3761875.
Mensi, W., Reboredo, J.C. and Ugolini, A., 2021. Price-switching spillovers between gold, oil,
and stock markets: Evidence from the USA and China during the COVID-19
pandemic. Resources Policy, 73, p.102217.
Tehseen, S. and Ramayah, T., 2015. Entrepreneurial competencies and SMEs business success:
The contingent role of external integration. Mediterranean Journal of Social Sciences,
6(1), pp.50-50.
Wei, X. and Han, L., 2021. The impact of COVID-19 pandemic on transmission of monetary
policy to financial markets. International Review of Financial Analysis, 74, p.101705.