Business Strategy Report: Examining ALDI's Goals and Objectives

This report offers a comprehensive analysis of ALDI's business strategy, beginning with an introduction that outlines the company's mission, vision, and objectives. Part 1 assesses ALDI's goals, mission, objectives, and core competencies, highlighting the factors considered by the firm and evaluating the effectiveness of its methods and techniques. Task 2 delves into organizational and environmental audits, examining the significance of stakeholders in forming a new strategy and presenting a proposed strategic direction for the company. Task 3 analyzes the appropriateness of alternative strategies and justifies the chosen approach. Finally, Task 4 explores the roles and responsibilities of personnel involved in strategy implementation, identifies required resources, and explains how SMART targets contribute to achieving strategic objectives. The report concludes by summarizing the key findings and providing relevant references, offering a detailed overview of ALDI's strategic management.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1.1 Assessment of goals, mission, objectives, core competencies of ALDI...............................1
1.2 Factors required for considered by firm................................................................................2
1.3 Effectiveness methods and techniques..................................................................................3
TASK 2............................................................................................................................................4
2.1 Organisational audit for ALDI..............................................................................................4
2.2 Environmental audit of ALDI...............................................................................................5
2.3 Significance of stakeholders for forming new strategy.........................................................6
2.4 Presentation of new strategy for the company......................................................................6
TASK 3............................................................................................................................................6
3.1 Analysation of appropriateness of alternative strategy linked with Aldi .............................7
3.2 Justification of the strategy which is correct for business.....................................................7
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of personnel who can engaged in implementation of strategy:...8
4.2 Important resources required for executing strategies..........................................................8
4.3 How use of SMART targets can be contribute for achieving strategic objectives...............9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business strategy is action plan of organisation that used to determine company's vision,
mission and future objective to achieve higher benefits and goals as well. This is basically use to
implement business activities in effective and appropriate manner to earn higher business growth
and profitability as well. All these strategies are succeed when they lead for organisation's
growth and for getting strong competitive position in target market. This project report is based
on ALDI which is a global discount supermarket chain. This organisation was established in the
year of 1913 by Karl and Theo Albrecht. Aldi is deals in Food, Beverages, Sanitary and Hose
hold goods. This report represents organisational goal, objective, vision and mission for getting
higher business advantages in future (Acquaah, 2013). It also includes effectiveness methods and
techniques, organisational and environmental audit, presentation of new strategy, role and
responsibility as well. At last this report includes importance of effective resources and SMART
target opportunities for getting higher business advantages.
PART 1
1.1 Assessment of goals, mission, objectives, core competencies of ALDI
For a business organisation it is very important to build their own objective and mission
to get higher business advantage easily. These kind of things help them to create direction to get
higher portability and build appropriate customers relation to survive long time in market. For
this process head office of organisation build various strategy to organise business activities
more effectively in firm. These kind of things are very helpful for employees to get appropriate
guideline to achieve organisation's objective, mission and vision as well. There are various
strategy of Aldi are given below -
Mission- It is most important element of Aldi in which they decide appropriate motive
for organisation they they need to achieve in future. All the business activities are based on these
Mission. Short term mission plays very vital role while making plan for attaining short mission
of an organization such as; assisting employees towards corrective path. There are various
mission of Aldi are given below -
 Main aim of organisation is to create quality products for customer to build competitive
advantages easily (Astrachan, 2010).
 It is help to build internal values through effective stakeholders.
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Vision- Vision of a organisation is very different its rivalry companies. In it they manage various
activities to stand in market for long time. Aldi make appropriate strategy to getting long term
benefits and objectives of firms as extend business structure in new market and build positive
relation with customers to getting long term benefits easily. There are various vision of Aldi are
given below -
 Main Vision of organisation is to build effective profit and growth from target market.
 Aldi is supermarket organisation and their vision ids to build large supply chain of
specific products and services in world wide.

Goals - Goal can be defined as those work which is expected by specific corporation. Aldi is also
having different short as well as long term goals which is stated below :
 Future goal of organisation is to attempt multiple drivers of growth that help them to
build long terms values in market.
 Another Goal of them is to mange corporate governance for making specific values.
Objectives – There are certain objectives of Aldi that helps them in achieving their estimated
goals. Some of them are as follows :
 Main objective of Aldi is to getting competitive advantages after creating effective
strategies (Bharadwaj, 2013).
 Aldi want to build loyalty of customers toward the organisation.
Core competencies – This is nothing but the special characteristics which make them different
in relation to other firms. Following are the core competencies of Aldi :
 Build various opportunities after getting appropriate knowledge of advantage technology.
 Implementing innovative idea in their products and services as well.
1.2 Factors required for considered by firm
For Aldi, it is very important to build strong strategy to get all their vision, mission and
future objective. These kind of things help the to getting higher business advantages easily. For
this organisation need to understand internal and external aspects of business that can affect it
strategy management process. These both factors are provide their own contribution, so for this
Aldi need to manage strong activities in their company. There are various Factors are requires
that needs to consider by firm -
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Outside influences – These factors are related to outside factors of organisation that
directly affect on its business activities. For them, higher management level of Aldi needs to
build strong strategy to reduce its negative impacts and further influences.
Impact on manager- manager is a individual person of organisation who works to create
strong strategy and objectives that helps them to get higher business advantages easily. For them
it is very important to create clear goals that employees can easily achieve. There are some other
impact of manager are given below-
 Target – manger works to create effective target for organisation that helps them to get
higher growth and competitive advantages easily (Campbell, Edgar and Stonehouse,
2011).
 When to plan – This is one most important strategic planning of manager in which they
decide planning process that need to build for a specific time.
 Who should be involved – This factor includes specific strategy of manager in which
they determine that who should need to involve ion planning and implementation process
of organisation.
Planning System – It is includes appropriate process of organisation that need to build
for implementation various policy and planning to getting higher business advantages. These
kind of system includes utilization of sources, time management and work force planning to
achieve higher growth easily.
Customers Need – For Aldi, it is very important to analyse their customer's need and
demand to providing quality products according to their desire. Through this process, they build
higher profitability and growth easily.
1.3 Effectiveness methods and techniques
For effectiveness of various methods of techniques organisation can easily analyse its
impact on market and customers satisfaction level. Through various techniques and planning
organisation easily achieve higher success an growth easily (Gandolfi, 2010). These kind of
things help them to build effective customers relation to get higher business advantages in target
market. For this process organisation can easily analyse various methods such as -
BCG matrix – This matrix was designed by Boston Consulting group's for getting long term
strategic planning. This matrix is used to gain higher opportunities from target market. There are
four quadrant of BCG matrix are given below -
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Dogs: This is denoting lower value of new product in market. These kind of goods are
consider Low market share and low market growth. For them organisation needs to build specific
strategy which help them to increase its value.
Question mark: These kind of products has different value in market. They do bot get
higher market share but it is provides higher growth to organisation. It includes some quality or
other features as well (Gollakota, 2010).
Stars: This is related to market value of product that have rapid growth and high volume
share. These kind of products gain higher profit in market through different kind of strategy.
Cash Cows: These kind of products are needed specific strategy because they do not able
to gain higher growth but its market share consign specific market share.
In other hand Aldi can use PIMS matrix because it is also helping them to analyse profit merging
by specific strategy. Specific definition of this matrix are given below-
PIMS matrix – This is known as Profit impact of market strategy which is used to
gaining higher profit and sustainability in market. It is basically used to provide specific strategy
in business that lead to success in particular industry. Data from this strategy is used as craft
management activity which is help to build effective marketing share and build customers
relation. It is uses different kind of elements such as product quality, investment intensity,
service quality and market share as well (Jocovic, 2014).
TASK 2
2.1 Organisational audit for ALDI
ALDI is a global discount supermarket chain and it was established in the year of 1913
by Karl and Theo Albrecht. This organisation was divided into into two single teams or groups
in the year of 1960. after this they will become Aldi Nord and its headquarter is based in Essen
and Aldi Sud whose headquarter is located in Mulheim.
Strength Weaknesses
 Aldi is a multinational discount
supermarket and they expend its
structure more and more countries
rapidly.
 Aldi provides quality products to their
 Organisation faces strong competition
from market to survive in target market.
 They do not yet able to build strong
relation with customers in market.
 They faces strong competition when
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customers which is helping them to
earn higher business advantages easily.
 This organisation is known as best
loved organisation according to a
specific survey.
they deals in target market.
 Aldi do not have a specific market
share to earn specific growths and
profitability easily.
Opportunity Threat
 This organisation help to build
employment services in market to
provide effective growth easily.
 Aldi can easily build effective
alteration in market through appropriate
business strategy.
 Market values and quality services help
to build various opportunity in market
to gain higher profit easily.
 Some competitive organisation can be
threat of Aldi.
 Some private organisation can be build
labelling for establishing good image.
 Technological changes can build treat
for company.
 Changes in government policy and
market values can be reduce market
value of organisation.
2.2 Environmental audit of ALDI
Environmental audit of an ALDI organisation consist entire methodology of Porter's five force
model which includes threats from new enterprises in business market, bargaining power of
suppliers and buyers and threats from substitute products or services with rivalry among existing
firms.
Threat of new Entrants: Because of new firm entry in the same field in which ALDI
work does not affect ALDI market value, economic growth and customer-relationship. This is
because leader of this organisation have strong decision making and communication skills with
its employees and members (Köseoglu, 2013).
Industry Rivalry: This ALDI organisation has one most essential things for giving hard-
bitten competition to its all rivalry and that is cost of its products. And second thing ALDI has
strong network of supplying its products to its valuable customers with easily availability of its
products.
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Threats of Substitute: Threat may occur for ALDI from its rivalry substitute products or
service but ALDI has a very strong door to door availability of its products to its valuable
customers with very low fixed cost. ALDI may have threat that its customers will shift their
priority of buying goods from different firms but only for very short duration of time. Rivalry
substitute moderately affect ALDI in economic growth and market value.
Bargaining power of Suppliers: Big brand name and image, may affect bargaining
power supply but only for short duration. Because of sale on products according to customers
demands and price of products and services vary as per demand. ALDI does not have too much
bargaining power in terms of suppliers.
Bargaining power of Buyers: Nowadays, In this Competitive environment because of
availability of products in nearest place of people. Then people have choices from switching one
firm to another firm for purchasing products at reasonable rates. ALDI suffers from this
bargaining power of buyers because of fixed cost of its products.
2.3 Significance of stakeholders for forming new strategy
Stakeholder are authorised person of organisation who provide their contribution in firm's
future growth. In this process government bodies also helps to expend business structure in
market through effective services and quality activity. Hence, management of Aldi represent
their investor's value according to need and requirements for pickings effective activity. The
organization run their process in appropriate manner where managers willing for increasing their
market share in effective way. While creating action plan, government should refer each and
every stakeholders in their business relationship and have to take important steps for the
requirements and business needs (Martin and Rice, 2010).
Box A- Minimum effort- These kind of things are directly impact on business policy and
procedure to get higher business profitability.
Box B- Keep informed- They do not have effective power to get higher business steps.
Box C- Keep satisfied- People need satisfied products an services so that they loose interest
toward ineffective products.
Box D- Key players- They are key player and they make effective changes in business policy and
procedures.
Importance of stakeholders analysis- In an organisation, stakeholders termed as those
investors which main function and activities is to analyse the result of their business and assist in
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developing accurate decision for making growth and success. Stakeholder help in developing and
making best suitable investment in their business operations and its major functions. They have
to spend money for manufacturing effective goods and services for an organisation.
2.4 Presentation of new strategy for the company
These things are all based on various opportunity of organisation because they can build
various strategy on its bases. These things help to get higher business growth and profitability to
survive in competitive market easily. Aldi can do investment for earning effective growth and
income in various nations where stores are not available easily. Apart from this, it is to earning
market share and effective market place easily. For this process, change for completing
productivity is essential need (Montgomery, 2011). So, it is required for use new and effective
strategy where they can produce innovative and new products and services for achieving
objectives and goals.
Tactics- ALDI will help in promoting their company for doing advertisement with the
help of usi9ng different sources that includes TV, radio, newspaper, print media, etc. which gain
attention of more people.
Strategy- ALDI strategy is to fix or set up their target for the year of 2020, so they will
develop effective and appropriate strategies for fulfil the main aim which help in become one of
the most successful organisation.
Target market- It can depict as buyers which majorly focus on their firm. They
concentrate on those areas where desired customers come for purchasing various products. For
attracting new customers, ALDI need to provide creative and innovative goods in the market
place.
TASK 3
3.1 Analysation of appropriateness of alternative strategy linked with Aldi
Aldi is a well known organisation of UK and they deals in quality products on specific
price. This company is already build strong image in country through effective cost and
appropriate services according to customers demand. This organisation is oldest in market do
they have strong customer trust and loyalty which helping them to expend business structure
easily (Martin, 2010). Now company wants to build new products and services for customer to
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get higher profitability and growth as well. Aldi is trying to build effective goodwill in world
wide so for this they prepare some planning for different strategy which is given below-
Alternative
strategies
Options Explanation
Market entry
strategies
Aldi is a well known organisation
and for them it is very important to
build various strategy to take entry
in new market.
It will very helpful for them to
getting higher business advantages
from target market. Through this
process they can easily get higher
profit and growth as well.
Substantive growth Aldi is grow and sustain in food
industry as well so for them it is
very import6ant to build quality
and strategy to get higher business
growth.
Company can easily expend their
business to get higher profitability
and productivity. Substantive
growth help to build market value
of a organisation that can easily
deals in different quality services.
3.2 Justification of the strategy which is correct for business
This justification is based on current position of Aldi company, for them it is very
important to build effective strategy to getting higher business success easily. So this will
helping them to getting higher business growth easily. For this senior level of Aldi need to build
effective strategy which is helping them to get higher business advantages easily (Montgomery,
2011). For this process organisation need to build effective market research to getting
appropriate information about culture, demands and needs of customers for the purpose of
surviving in new market. In this process they can easily build new products and quality services
for customer top get higher business advantages and profits as well. These kind of things
helping them to earn appropriate revenue and income easily. New strategy always helping to
expanding the business so it is not easy to move customers or draw attention them towards
administration.
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TASK 4
4.1 Roles and responsibilities of personnel who can engaged in implementation of strategy:
For any organisation its important to make strategies to grow their business and make a
stand in the market. Great strategies can help the organisation to achieve competitive advantage
over others. For making the business successful it is also important to implement those strategies.
Implementation can be done with the help of following personnels:
Top administration:- This is the backbone of any organisation. ALDI company are very
refine in their work. They plan the strategies which can benefit their organisation at the best.
These are the personnels which are mostly responsible in Aldi company for making strategies
and conduct them in correct manner to avoid any failures. They organise their activities in
standard way and see whether others are performing their work.
Centre level:- This level involves managers, leaders, supervisors of the company. Their
major responsibility are to assign work to the employees which are experts in their field. They
are also responsible to brief them about the work and give the information about the correct
procedure in which the work will be carried out. If there is any modification in the strategy or in
the directions, the leaders should make the employees aware about the changes (Peteraf and
Thompson, 2014).
Experts/agents:- Before implementation of any strategy its important to consult with
experts and agents because they can help in better strategy execution and also they have better
knowledge about the external environment so that they can modify the strategies according to the
situation. They are also aware about the threats which can occur by executing the strategies and
they also provide them with the solution to tackle them (Scholes, 2015).
Workers at lower level:- This level is mainly responsible for the successful execution of
the strategies which is given by their superiors. They have to work hard to make the
implementation successful. Aldi company have talented staff which make possible all the
implementation a successful one.
4.2 Important resources required for executing strategies
It is prerequisite that for utilizing or executing latest technology with innovation in
effective manner any organisation will required highly skilled workable labour, financial
assistance, raw material and many more things. Several times, some organisation has to be
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change their machineries, equipments or plants with latest and innovative technology in a very
creative way for enhancement of their organisation performances and get maximum outputs
from minimum inputs of raw material, skilled labour and finance. From these small changes, any
small-business or start-ups or big brands will return large growth in terms of financial, social-
economic, customer-relationship. Small changes required strong and correct decision making
skills with communication skill and less amount of capital but it depends on size and revenue of
an organisation with strong leadership (Teece, 2010).
Human Resources: It is well known fact that manpower is backbone of any organisation
to stand and for compete with its rivals. And also required for implementing policies or rules and
regulations. But only manpower is not important or mandatory because if worker is not highly
skilled in today's world manpower will not be able to implement new technologies, equipments
or machineries with innovation or in creative way.
Financial Resources: Without financial assistance or support, no organisation small or
big will be able to run smoothly or can not done any further modifications in their existing firm.
Organisation or firm can do execution within boundary of capital or finance support for which
they required strong leadership and decision making skills.
Time and Raw Material: In today's competitive world, time and raw material both are
most important elements for any organisation to stay and compete. Because if implementation of
any technology or raw material is done after certain time period in which demand is no more
from customers then there is no use of such innovative or creative technology. It will results big
loss for an organisation that maximum inputs will give minimum outputs (Tsamenyi, 2011).
4.3 How use of SMART targets can be contribute for achieving strategic objectives
This SMART term is considered by an organisation or institution while guiding and
setting objectives or goals. This methodology is broadly given by Peter Ferdinand Drucker the
founder of modern management.
SMART stands for:-
Specific ( Sensible, simple, significant)
Measurable ( motivating, meaningful)
Achievable ( attainable, Agreed)
Relevant ( reasonable, resourced, result based, realistic)
Time bound ( time based, time limited, timely, time sensitive)
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