ALDI Business Strategy Analysis: Strategic Planning and Audit Report

This report provides a comprehensive analysis of ALDI's business strategy, encompassing its mission, vision, objectives, and goals. It delves into the core competencies that inform ALDI's strategic planning and examines factors crucial for strategic plan formulation. The report includes an organizational and environmental audit, as well as a stakeholder analysis, to assess ALDI's current position and external influences. Furthermore, it explores the effectiveness of strategic planning techniques like the BCG matrix and discusses a new strategic approach for ALDI. The report also details the roles and responsibilities involved in strategy implementation, resource requirements, and the use of SMART targets to achieve strategic objectives. Overall, the report offers a detailed overview of ALDI's strategic approach to maintain a competitive edge in the grocery market.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 ALDI's mission, vision, objectives, goals, core competencies inform strategic planning....1
1.2 Factors to be considered by ALDI at the time of formulating their strategic plans..............3
1.3 Evaluating effectiveness of techniques used in strategic planning.......................................4
2.1 An organizational audit for ALDI.........................................................................................4
2.2 An environmental audit for ALDI.........................................................................................5
2.3 Significance of stakeholder analysis for ALDI.....................................................................6
2.4 New strategy for ALDI.........................................................................................................7
TASK 2............................................................................................................................................7
3.1 Analysis the appropriate of suitable strategy for ALDI in relation to substantive growth
limited growth or retrenchment...................................................................................................7
3.2 Selection of strategy..............................................................................................................8
TASK 3............................................................................................................................................9
4.1 Roles and responsibilities of personnel who involves in strategy implementation..............9
4.2 The resource requirement for implementation strategy........................................................9
4.3 The use of SMART target and its contribution in strategic objectives...............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
...................................................................................................................................................13

INTRODUCTION
Business strategy is one of the important activities for every organization to attain
specific goals and objectives. For this, every business entity formulates some scheme for
executing all tasks in an appropriate manner. With the help of this, company easily attains their
targets in set time frame. Basically, business strategy is an effective planning process to take
future decisions which lead to enhance the performance level of company in market place.
Formulating effective business strategies contribute in the overall success of firm (Business
Strategy, 2017). It provides better support to the manager in taking right decision and attain set
goals in an effective way. Present report is based on ALDI which is grocery firm in the UK. The
main aim of this company is to provide high quality products and services in order to gain high
satisfaction by them. This report discussed about company’s mission, vision, goals and
objectives as well as core competencies which directly affect the strategic planning. Along with
this, importance of stakeholder analysis is also mentioned in this report which helps in the
decision making process of company. Further, environmental as well as organisational audit is
also discussed in this project. At last, roles and responsibilities of personnel are also mentioned
which help in implementing the strategies within organization.
TASK 1
1.1 ALDI's mission, vision, objectives, goals, core competencies inform strategic planning
Business strategy is an important process for company to formulate their schemes
in order to execute all the tasks in an effective manner. In this, company sets their outlines as
well as guidelines before starting a new business. Along with this, it defines a framework in
which manager executes their activities to attain desirable goals and objectives in the most
effective manner. With the help of this, manager of company easily takes right decision towards
its activities which leads to improve overall performance level in market place. In this, ALDI is
one of the famous companies which provide home products to its customers (Azar, 2011). In
this, manager formulates a plan which defines company’s mission, vision, goals and objectives.
With the help of effective strategic planning, company attains high success in the market place. Mission of ALDI: It is a written statement which helps in improving the performance
level of company. The main motive of this type of statement is to attain set goals and
objectives. Mainly, it shows the market size of firm in order to attain vision of firm in
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specific time frame. The mission of ALDI is to deliver high quality products and services
to its customers at affordable price. By this, company satisfies customers’ needs and their
demands as well as form their customer base. Mission statement should be more effective
because it provides guidelines to company to enhance their profitability level (Bucolo and
Matthews, 2011). Vision of ALDI: It is also an effective statement which defines the future aspect in which
company sees themselves in upcoming year . By using this company can increase their
value in the market place. The vision of ALDI is to modify their grocery store and make
attractive business models which helps in serving innovative and features service to its
customers. By this, ALDI easily acquires their objectives in an effective manner which
directly contribute in the overall success of company. Goals: It is one of the important elements for business organization to set their outlines
before formulating their strategies in market place. Basically, it plays a vital role in
increasing the productivity of company in which firm easily invites a large number of
customers towards its services. In this, goals are divided in two parts such as:
◦ Short term goal: It defines all those targets which aid in reducing the chances of
creating complexities within organization. With the help of this, company improves
their performance level. In this context, short term goal of ALDI is to introduce as
well as set new and innovative areas to attract customers.
◦ Long term goal: It stated about all those goals which are more important for the
business organization to attain profitability in an effective manner. With the help of
this, ALDI easily attains its mission in a specific time frame. Along with this, long
term goal of ALDI is to offer as well as provide high quality products and services in
order to form customer base. With the help of this, company takes a strong position in
market place. Objectives: It is also an important component of business strategy which helps in earning
high profitability in the market. The main objective of ALDI is to increase customer
satisfaction by serving variety of services. For attaining the same, company uses
digitalisation which contributes in increasing sale of company (Butler, 2012).
 Core competencies: It is an important and supporting component which plays an
important role in providing competitive advantage to company. By this, company
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improves their positive image in market place and also, increases knowledge of
employees at workplace. Basically, it is a specific term of company which differs from
another organization. In this, ALDI increases their profitability level with the help of its
USP because it plays a vital role in increasing product’s sale in market.
1.2 Factors to be considered by ALDI at the time of formulating their strategic plans
Strategic planning is an effective process which helps in implementing all the strategies
by providing better direction to its manager. The main aim of this activity is to provide path as
well as direction to manager in which they execute all the activities in order to get competitive
advantage. By this ALDI easily enhance their profitability level by attaining set targets. In this
context there are some major factors which includes in strategic planning are as follows: The industry: The important factors for business organization is to determine as well as
evaluate the whole industry to implement the strategic planning (Dandira, 2011). It cover
evaluating of new market entry, market size, potential growth and future threats. It
directly affect the overall performance of the company. Competition: For effectively implement strategic planning, it is important for ALDI to
determine competitors position at market place. With the help of this they easily improve
their process and service quality services to kits customers at affordable cost. It also help
company to capturing larger market share as compare to its rivals. Strength and weakness: It is also an important to carry out SWOT analysis of the
company which helps in determining the actual position of the firm at market place. It
define company strength, weakness, opportunities and threats. All these are play
important role in implementing strategies planning process which leads in improving the
overall performance of the company.
 Resources: It is important to having proper as well as enough resources which helps in
implementing strategies within the business organization. With the help of this Aldi
execute its activities in appropriate manner (Elhamma and Zhang, 2013). In this context,
human resource, financial funds as so on. All these consider by manager at the time of
implementing strategies which helps in attaining set goals and objectives.
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1.3 Evaluating effectiveness of techniques used in strategic planning
Strategic planning refer as an effective process which get effected by various elements
that exist in business environment. With the help of this manager of company ensure about
maximum utilization of available resources in appropriate manner. In this context manager also
use some effective techniques which helps in developing strategic plan are as follows:
BCG growth share matrix: This type of matrix include various situation which faced by company
at market place. All these situations are as follows: Stars: This situation define product that having high growth rate and high market share in
this company needs more resources to take right decision to develop as well as maintain
their growth. Cash cows: In this, it define these type of product that having high market share and low
growth rate. Along with this, company face low growth rate and at the same time they
easily generate larger number of profitability level which leads in increasing profitability
of the company (Ferreira and et. al., 2011). Dogs: It is also an important situation which define low growth rate and low market share
of company products. In this company face low growth rate and low market but they fails
in generating profitability level. For improving their performance level they have to cut
down their unnecessary cost. In this company have to close their business and start new
one.
 Questions marks: In this part, matrix define this type of product which having low
market share but at the same time high growth rate. It stated loss for company because
market share of the company is less (Galpin and Lee Whittington, 2012). Along with this
it define new made product of company.
2.1 An organizational audit for ALDI
Executives should conduct organisational audit, which is essential so that they are able to
determine workability of organisation. This also informs them about market position of firm. As
in case of ALDI, administration is able to achieve goals and objectives by making their system
function adequately. SWOT analysis of ALDI is stated beneath:
Strength Weaknesses
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 First main force which impact ALDI
business is that they provide
standardised items.
 They provide offerings at reasonable
rate (Torrent-Sellens, 2015).
 Company has established good
reputation which benefit firm.
 This firm is small in relation to rival
firms.
 Superior are not conducting much
promotion tools.
 This firm has narrow variety of items in
their list.
Opportunities Threats
 They need to devote more money to
advertise their products.
 ALDI can increase their branches in
various nations such as Africa and
Asia.
 Company can provide items through
internet websites.
 ALDI has large number of rival firms.
 Firm is not able to sustain customers for
longer period of time.
2.2 An environmental audit for ALDI
Organisation perform environmental audit which is important tool through which administration
is able to carry out business activities effectively. This had benefited ALDI, as managers are able
to accomplish outcomes which executives have determined. By taking care and controlling all
forces which impact functionality of their system. This also help superior to enhance their market
position and to compete with rival firms. As a result, management is able to select options and
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carry out decision-making process properly so that they frame strategies which are beneficial for
organisation. This can be determined through these points: Threat of new entry into market: firms which have set up branches in different nations
has to take care that they manufacture items properly through which they are able to
compete with their rivals. As in case of ALDI, they have strong brand image and market
share as they provide quality offerings. Bargaining power of suppliers: organisation should have relationship with suppliers so
that they get timely delivery of raw material whenever required (Zott, Amit and Massa,
2011). Therefore, their will be no deviation in their production activity. As a result they
will be able to enhance their profitability. Bargaining power of customers: people who buy items in huge quantity is able to get
them at low prices. In context of ALDI, customers have power that they are able to
bargain from company as there are large number of competitors in marketplace. Threat of substitute products: ALDI provide quality products so that people do not shift
to other brands. They are required to add features which sustain customers towards their
offering. So this has help management to generate adequate amount of profit through
which they are able to make their system function effectively.
 Degree of competitive rivalry: this determine rivalry among firms which are offering
similar products to customers. And ALDI has to function system through which they are
able to compete with other firms properly by providing standardised offerings.
2.3 Significance of stakeholder analysis for ALDI
Stakeholder analysis is one of the essentials activity for company in which company
enhance their performance level. In this they execute their activities in effective manner to
develop overall growth of the company. It includes employees, government, creditors. By this
company enhance their productivity level at market and also capture larger market share. One of
the main importance of stakeholder analysis for company is to gather relevant information from
them. In this context there are some steps which considered in stakeholder analysis are as
follows: Step one: Under this step, company determine all those individual who involve in
business activities and get affected by it (García‐Rodríguez and et. al., 2013).
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 Step two: In this phase, stakeholder show their power and interest which aid in improving
their satisfaction level as per their demands. With the help of this company enhance their
performance level at market place. Under this high interest of stakeholder aid in
promoting goods and services of the company. On the other side, high interest and low
power define relevant information in order to improve performance level.
 Step three: Under this last step, ALDI take feedback from its workers in order to
effectively understand their requirements at workplace. It helps in completing entire
operational activities and at the same time also attain positive outcomes in appropriate
time frame.
2.4 New strategy for ALDI
Using effective strategy is more important for business organization to set their goals and
objectives. In this ADLI use concept of porter's generic which divided in four parts are as
follows: Cost leadership: In this company do various efforts which relate with low cost producer.
In this they find out cost advantage which helps in increasing profitability level of the
company in effective manner. Cost differentiation: It define different products and services which is differ as well as
attractive from its rivals. For this company undertake research to introduce new and
innovative products with high quality to its customers. Cost focus: In this, business enterprise focus on particular niche market by analysing
customers demand (Goll and Rasheed, 2011). With the help of this, company make loyal
customers as compare to its rivals. It helps in defining particular segments less impressive
as compare to its competitors.
 Differentiation: In this company focus on its potential buyer in which they buy different
products and services.
TASK 2
3.1 Analysis the appropriate of suitable strategy for ALDI in relation to substantive growth
limited growth or retrenchment
Choosing effective strategy is important for improving overall performance level of the
company at market place. With the help of this firm easily attain goals and objectives and also
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get competitive advantage form its rivals. In this there are some effective and suitable strategies
used by ALDI in attaining better success at market place are as follows: Substantive growth strategy: Under this strategy, company easily expand their business
actuivut8ies in two various ways such as horizontal and vertical. By this firm increase
their profitability level by introducing nee and innovative products and services in market
place (Granados and Gupta, 2013). The main advantage of using this strategy is to
capture larger market share. Limited growth strategy: This strategy is effective for business organization in which
they sale their services in existing market to increase their profitability. By this company
set their target and attain in specific time scale. In this various elements are include such
as product development, penetration and innovation. All these are beneficial for
company.
 Retrenchment: This type of strategy is not more appropriate for company because it cut
down of workers due to heavy losses. In this company not able to effectively manager
their profitability as well as performance level. It negatively impact on overall image at
market.
3.2 Selection of strategy
Number of strategies are there which is used by ALDI to enhance their overall
performance level at market place. For attaining higher success company use substantive growth
strategy in which ALDI offer quality products and services to its customers which leads in
increasing profitability level of the company and also increase customers base (Hall and Wagner,
2012). By this company easily introduce themselves in another countries. One of the main
advantage of using this strategy is to rise market share and probability level also. With the help
of this ALDI serve quality services to kits target customers and get their higher satisfaction level.
Further more, by this company easily attain competitive advantage which contribute in overall
success of the company. With the helps of this strategy company capture larger market share and
compete their competitor by taking strong place at market place.
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TASK 3
4.1 Roles and responsibilities of personnel who involves in strategy implementation
Implementation of strategy is effective activity in which board of director ensure as well
as check all the execution of business activities to accomplish their goals and objectives. In this
workers of the company also play important role in implementing strategies to improve
productivity level. All the roles and responsibilities of personal can understood by some
following points: Board of directors: These individual play vital role in implementing strategies within the
business. In this a strategy committee audit various elements to make effective process
which leads in attaining set mission of the ALDI in appropriate manner. The main focus
of these individual is to eliminate all the issues of strategy implementation (Helms and
Whitesell, 2013).
 Manager: They play important role in managing all the activities of strategy
implementation. In this they motivate their worker to perform their best and also gather
all relevant data to make effective process of implementation. Along with this the main
role of manager is to allocate resource to execute operations of the company.
4.2 The resource requirement for implementation strategy
Implementation of strategies in one of the important activity for business organization to
increase their profitability level in which manager easily improve their performance level by
executing all the task in appropriate manner. For attain the better results proper resources are
necessary because in absence of this manager does not able to implement entire strategies
effectively and also increase overall cost of the company. Effective implementation of strategies
help ALDI to increase profitability level at market place. In this context there are some important
resources which required by ALDI at the time of implementing strategies are as follows: Financial resource: Enough fund is more important for executing all the strategies as
well as activities which leads in enhancing the profitability level of the company at
marketplace. So that it is important for ALDI to keep proper funds to attaining positive
outcomes in appropriate manner. Human resource: It is also important in implementing the strategies in order to improve
performance level at market place. In this manager include capable and skilled workforce
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