An Analysis of Leadership and Management in the Context of ALDI

This report analyzes leadership and management practices within ALDI, an international supermarket chain. It explores the roles of leaders and managers, differentiating between their characteristics and functions, and examining how they apply in various situations. The report delves into different leadership theories, including situational and contingency leadership, evaluating their strengths and weaknesses. Furthermore, it discusses key approaches to operations management, emphasizing the importance of leaders and managers in improving efficiencies to meet business objectives. The report also considers factors within the business environment that impact operational management and decision-making, along with the effects on the wider business environment and community. The report uses the case of ALDI to illustrate the practical application of these concepts.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Roles of leader and characteristics of manager......................................................................3
M1 Analyse and differentiate between the role of leader and function of manager by
effectively applying range of theories.........................................................................................5
D1 Critically analyse and evaluate the different theories and approaches to leadership in given
contexts.......................................................................................................................................6
TASK 2............................................................................................................................................6
P2 Role of leader and function of manager on various situational context................................6
P3 Several approaches of leadership...........................................................................................7
M2 Assess the strengths and weaknesses of different approaches to situations within work
environment.................................................................................................................................8
TASK 3............................................................................................................................................8
P4 Key approaches to operations management and the role that leaders and managers play.....8
P5 Importance and value of operations management...............................................................11
M3 Evaluate how leaders and managers can improve efficiencies of operational management
to successfully meet business objectives...................................................................................11
D2 Critically evaluate application of operation management and factors that impact on wider
business environment................................................................................................................12
TASK 4..........................................................................................................................................12
P6 Factors within the business environment that impact upon operational management and
decision-making by Leaders and managers..............................................................................12
M4 Analyse how these different factors affect the business environment and wider community
...................................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management and operations is the business practices which is liable for managing and
maintaining the procedure of developing products and services. This includes planning,
organising, coordinating and controlling all the resources which are required to produce a firm's
goods and services. It is important for every organisation to formulate appropriate policies and
strategies which is useful in completing the set target and reaching with company growth. The
report is based on ALDI which is the international supermarket chain along with 10,000 stores in
20 countries and it is situated in London, United Kingdom. They offer different types food,
beverage, household goods and so more to their customers. The main purpose of this assignment
is to analyse the role of leaders and characteristics of managers that are applied in various
situations (Jørgensen and Zaccour, 2012). This also includes discussion about different theories
and models of leadership with key approaches to operation management.
TASK 1
P1 Roles of leader and characteristics of manager
ALDI is the multinational brand of supermarket business and they are providing various
goods and services to the people at international level for fulfilling their needs and requirements.
This has matrix structure where they reduce the different number of layers of company authority
through procedure of delayering. Therefore, employees have right to develop appropriate
decision for the welfare of organisation.
Manager is defined as an individual who manage each and every activity and direct
efforts to staff members to get work done by managing them in that manner in which they easily
achieve the required results. They required to follow all business policies and reach with set
goals and objectives.
Characteristics of Manager
Delegation – It refers to distribute some power and authority to their sub ordinates that
assist them in taking quick decision according to the requirement (Hugos, 2018). This will
provide assistance to burden of manager and also improves their employee’s efficiencies so that
they easily fulfil roles of higher position in future time period.
Considerations of staff members – In this, managers involve employees and ask for their
suggestions or opinions which are helpful in taking appropriate decision. Along with this, it will

assist in gaining many number of alternative option from best one should be selected for
particular aspect in an organisation.
Role of Manager
Determine growth of employees – The manager required to focus on staff member’s
growth level which help in enhancing the business profitability that resultant in increasing
efficiencies of people. It will assist in improving company brand image in the market. The given
firm can gain loyalty of staff members by providing them huge opportunities which enhancing its
skills in order to gain success (Hill, 2012). In this, manager are determine effective growth and
success of staff members by provide them accurate training and development sessions.
Demonstrate right direction – It is the main role of company manager to show correct
direction to their employees through which they can easily gain high success and growth. In
ALDI, they are responsible for providing them accurate path for completing set goals and targets
in better manner. ALDI managers are manage and maintain their employees by providing them
correct direction so that they can easily gain desired income and profitability.
Leaders can be define as a person who complete their roles and responsibilities in own
way along with motivating other people with the help of their working style. They follow various
criteria to fulfil their duties and encourage other for improving performance.
Characteristics of Leaders
Honesty – A leaders remains honest towards company and sub ordinates that enforce
them in developing strategies and policies for both of them. Its main outcome is to reaching
growth and development of the business and provide opportunities for staff members that
facilitates to reduces the employee’s turnover.
Positive attitude – It believes in thinking positive and never get demotivated at the time
of facing various issues or problems. This is considered as spirit for them that assist in
motivating them in facing challenges and getting desired results of ALDI.
Role of leaders
Ability to face issues – A leaders have skill to introduce new concept which results in
various challenges and opportunities but they accept problems and deal with them in appropriate
manner (Greene and et. al., 2014). In the context of ALDI, they can develop innovative ideas to
implement in order to enhancing quality of products and services. In this, ALDI managers have
ability and capability to face various issues or problems which occurs within an organisation.

They are developing appropriate strategies and policies which assist them in reducing major
issues effectively.
Create vision – This define as an efficient ability and skill of leaders through which they
can develop innovative goals that help in increasing productivity and profitability of business.
ALDI managers need to make correct and clear visions in order to enhancing their brand image
and market share.
Differentiate Between Manager and Leader
Basis Manager Leader
Concept Managers have skills and
ability to conduct
implementation of vision in
strategic manner.
They put efforts in gaining
trust of staff members and
develop right path for teams in
order to reaching with
appropriate results.
Goal They have ability to provide
right direction to their
subordinates and reviews on
necessary resources which
assist in fulfilling goals and
objectives.
Leaders encourage group
members for improving their
performance for getting high
growth in future time.
Characteristic (Focus) They maintain and manage
their business by developing
appropriate rules, process and
standard of performance.
They are mainly focus on
reducing negative impact on
company operations and
functions.
Aim Managers main aim is to
getting growth and
development for the company.
Leaders only focus on gaining
accurate results or outcomes to
the firm.

M1 Analyse and differentiate between the role of leader and function of manager by effectively
applying range of theories
A leader is innovative in nature which means he continuously seek for developing their
products and services which attract large number of customers (Golicic and Smith, 2013). On the
other hand, the main function of manager is to manage and maintain their company resources in
proper manner. The leader is consultative in nature while managers are autocratic in character
that suggest that leaders are transformational in quality which follows contingency theory of
management.
D1 Critically analyse and evaluate the different theories and approaches to leadership in given
contexts
According to the view of Glasstone and Sesonske (2012) situational theory of leadership
describes that no leadership model is suitable for the company and it is mainly depend upon
situations which occurs within an organisation. This theory helps in enhancing productivity and
efficiency of the firm which are required to gain success and growth. In this, company can
evaluate specific condition and learn how to handle all work in such type of situations
effectively. On the other hand, contingency theory of leadership is very essential for the
company because this will handle certain situation in proper manner.
TASK 2
P2 Role of leader and function of manager on various situational context
There are different types of roles and responsibilities which are done by managers and
leaders to maintain the various activities in differentiated situations in order to fulfilling all
targets in successful manner. Company managers have different responsibilities which includes
planning, staffing, leading, organising and controlling on the other hand, leaders fulfil certain
roles such as combine personal and organisational goals, manage challenges, encourage people
and accomplished goals with innovation. Therefore, both of them have different criteria for
completing their duties but contribute growth of business in better manner. In ALDI, they are
strictly follows various roles and responsibilities at the time of carry out whole operational
functions and activities through managing them in specific way. Such are described as under:
Conflicts and disputes – There are different types of issues and problems which are
developed within operational processes due to technical issue in techniques and methods that

should be solved for continuous production. It involves various conflicts that are occurs between
employees and they have negative impact on daily outcomes which are required reduces threats
in regular performance (Ellis and et. al., 2016). In ALDI, managers have to solve major issues
and problems along with resolving conflicts among employees that create negative environment
in the company. On the other hand, leaders are trying to solve various issues which incurred
among their group members in order to gain desired objectives. The manager are try to resolve
major conflicts and disputes by developing effective decisions which are welfare of an
organisation. Along with this, manager are trying to solve main issues and problem which occurs
in the ALDI company in better manner.
Executing strategies and technologies – It involves to developing and making innovative
strategies for applying new technologies in order to improve productivity, product quality and
reduction in manufacturing time period. Thus, leaders can easily apply best suitable policies
which help company in increasing their profitability ratio. In ALDI, the managers are using
modern tools and methods while developing proper strategies for whole organisation.
Effective decision making – There are various types of factors which need to make
appropriate decision for conducting procedure in fulfilling set goals and targets of the firm. In the
context of ALDI, they are analyse, observe and measure to choose best option which carry out
process to develop appropriate outcomes (De Roover, 2017). The main role of leader is to
formulate the organisation decision in proper manner. In the situation of decision making, the
HR manager are taken all the employees views and reviews regarding specific decision taken and
as per this they are develop appropriate decisions.
P3 Several approaches of leadership
Leaders follows their own style of working which involves various models, theories and
approaches of leadership while dealing with different business circumstances. This is required
for firm is to understand the impact of every theory in various situations so that appropriate
leadership approach can be implemented in business to solve major issues. In ALDI, they
required to analyse and examine thoroughly regarding various leadership approaches which
apply best in particular condition of an organisation and there are some points which are
described:
Situational leadership - This model of leadership define to develop appropriate strategies
and policies which are applicable in different situation of business where they solve various

issues along with completing targets. In the context of an enterprise, they can select best theory
or model that assist in dealing with present circumstances for attaining set goals in successful
manner. In ALDI, leaders are adopting this theory because this can be used for making
appropriate decisions as per different situations. This will help in dealing with various situations
which occurs within an organisation. ALDI applied this leadership method when they are face
some uncertain situation which occurs immediately and create negative impact on business
operations and its functions.
Strength – It is provides flexibility to leaders for making appropriate decision according
to the specific situations.
Weaknesses – This is not bound to control and govern the enterprise on specific theory of
leadership.
System leadership – This theory involves various sub system that are used to deal with
different situations with the help of systematic thinking and approach (Davidson and Olsen III,
United Parcel Service of America Inc, 2013). This provides presentation and interpretation of
phenomenon and realities that help in developing suitable strategies in ALDI for gaining
required income. ALDI is used system theory which can be used for maintaining and managing
their business operations and its functions effectively. This theory assist in reducing the
difficulties in the company by resolving different issues and problems in each division. ALDI
applied system leadership method when they are smoothly running of business operations and
functions effectively.
Strength – This will help in reducing complexities in the firm by solving various issues
and problems separately in the department.
Weaknesses – People remain bounded with the specific system for completing their
required work or tasks.
Contingency theory – The contingency theory is helpful in dealing with immediate
problem or issues in the organisation and making changes in current trends of market that may
generate critical situation for the business (Crevier, Cordeau and Savard, 2012). In ALDI
organisation, they can using specific approaches which mainly deal in emergency situations. The
contingency theory is applicable for ALDI because this will assist in dealing with any type of
situations and conditions in better manner. ALDI applied contingency theory when there is some
issue arise and they required to make proper changes in current trends.

Strengths – This theory is helpful in dealing with immediate problems and issues in order
to cope up with recent modifications and changes. For instance, instant launching of new
technology impose leaders and managers in developing contingency plans.
Weaknesses – This is complex for an organisation is to select most suitable plan of action
which help in dealing with emergency situation.
M2 Assess the strengths and weaknesses of different approaches to situations within work
environment
The strength of situational leadership model is that they are developing sound and
comfortable environment which assist in developing better teams. It assist in enhancing
motivation as it involves the staff members making appropriate decision making for the welfare
of firm. It will help in boosting the workers towards attaining desired goals and targets in
effective manner. The weaknesses is lack of understanding the demographic differences due to
lack of high quality experience in the employees (Cochran, Cox and Kharoufeh, 2011). This
model is appropriate for an organisation which required to develop the coordination between
employees and the management in order to improving decision making procedures.
TASK 3
P4 Key approaches to operations management and the role that leaders and managers play
Operation management is the procedure through which ALDI manage their business
operations and its functions in better manner. As the operation manager design and control in
production process so this will help in attaining appropriate output. Along with this, there are
three main key approaches of operation management which help ALDI in reaching with desired
goals and targets. Such key approaches are described as under:
Six sigma methodology – It is the quality control program that is formulated by
Motorola. The main purpose of this six sigma methodology is to analyse the errors and problems
while producing required products and services at the satisfaction level. This will assist in
meeting customers requirements, improving customers retention and producing the sustainable
goods and services (Chowdary and George, 2011). As this will not damage the customers and
buyers. ALDI used six sigma for analysing and examining the quality of products and services in
proper manner. ALDI use six sigma methodology to reduces issues and improve the quality of
food products and services. For example, packages and storage of the eatable items which should

be qualitative. It has appropriate method DMAIC that is widely used by the firm to improve the
quality, efficiency and reduction in cost or value.
Illustration 1: Six sigma, 2018
(Source: Six sigma, 2018)
DMAIC methodology – The concept behind this methodology is that ALDI can solve any
insolvable issues and problems effectively. There are five steps which can be used for improve
the quality in better manner. Such five steps are as under:
Define – In this, a team is led by six sigma professional who are describing the faulty
procedures that required to be focused. The inaccurate process is recognised by the analysis that
can lead towards getting accurate goals of ALDI. This will emphasises on the issues, problems,
goals and deliverables of projects on which this is employed. For example, if there is some
problem arise while packaging of food items then it is mainly focus on solving major issues so
they work for reduces the level of conflicts.
Measures – After defining the issue, ALDI make sure about the inputs which are creates
major issues. This will evaluate the initial performance of the packaging procedures. Then it is
using such measurements which identifying the problem like what type of material reduces the
quality of packaging (Ashutosh and et. al., 2016). After that, it help in identifying the issues of

company which established the performance scale to measure it with the current state and needed
alterations.
Analysis – In this, ALDI manager require to analyse the whole packaging procedures
through isolating inputs and recognising the potential causes of issues.
Improve – In this state, the analysed packaging problem will be improved in better
manner. This phase provides effective solution of the packaging in appropriate manner.
Control – At last, the operation manager of ALDI company mange and control the
packaging procedures of food items in proper way which delivers quality based products to their
customers.
Lean principles - Lean methodology is used for minimising the waste and additional
value to the products that is important for the customers. ALDI can use lean methods which
reduces the wastage. ALDI can used this approach for reduces the wastage and unnecessary
material which create major impact on business operations and its functions. They are applied
lean principle for packaging the innovative and new food items and deliver to their employees.
This can apply the lean principle to the packaging of food items. There are various principles
which work on this are described as under:
Value – This is defined as the customers requirements and their demand for specific
goods and services. ALDI required to develop and formulate such packaging of food products
which have some values for the customers without wasting additional raw materials (Ashby,
Leat and Hudson-Smith, 2012).
Value stream – The managers of ALDI identifying the final goals and objectives which
help in reaching with qualitative packaging. The initial state is to access the raw material for the
packaging of food products then aligning the procedures.
Flow – After analysing the exact results and outcomes, the managers are eliminate waste
products. Then, the procedure which have certain value for the packaging can be flow in smooth
manner.
Pull – In this, after completing the past stages and improvement in packaging. ALDI will
put hard efforts in the marketing of food items.
Just In Time – This define as the continuous improvement that are mainly focus on
prevention rather than correction. So it will produces the goods when they are required because
this will save time and cost of production. ALDI provides eatable items according to their need

and requirements. It saves cost and values of raw material, developing the goods and time to the
chefs that can be used somewhere else.
Such approaches are used by ALDI in order to reduces the defects and improvement in
quality of products. The operation manager ensure about the goods quality because this is
important for the customers.
Role of leaders:
Solving issues – ALDI leaders are play an important role in resolving major issues and
problems in order to attain set goals and targets. The leaders provides accurate information to
their subordinates which implement projects if the manager face some difficulty then leaders
eliminates their issues.
Role of managers:
Management of functions – ALDI manager perform various roles and responsibilities
such as planning, designing, coordinating, supplying and many more. They require to manage
the operations of production department which implement the task in systematic manner.
P5 Importance and value of operations management
Operation management is very essential to conduct every procedures and activities in
proper manner by using available resources in better manner along with reducing the wastage. It
includes maintaining the criteria for developing effective coordination among employees so that
they can reaching with target and goals in successfully (Ashby, Leat and Hudson-Smith, 2012).
In ALDI, they require to manage and maintain operations by using some approaches such as lean
principles, six sigma and just in time in order to gain various importance are as under:
Appropriate usage of available resources – It can be described as using whole resources
in better way which assist in gaining maximum results from limited sources that area available in
the company. In the given context of firm, they can manage business operations by using lean
principle to conduct optimum utilisation of resources which help in reaching with higher
profitability.
Need coordination between staff members – The appropriate coordination and
cooperation which is required among employees so that they can easily communicate essential
concepts to done the tasks on regular basis. ALDI can using just in time approach which assist in
maintaining better spirit to work together between various section which provides higher profit.

Building good relationship with employees – It refers to establishing an effective and
healthy relation among superiors and sub ordinates so this will impact on generating accurate
results. ALDI have an appropriate and efficient communication that assist in reducing the chance
of disputes which results in developing better outputs in successful manner.
Importance and role of operational functions – In an organisation, it is required for
maintaining and managing all business functions and operations in effective manner. There are
various types of operational functions which includes marketing, financial and so more. These
are help in enhancing and gaining required income and profit by attracting large number of
customers in better manner. In marketing, the company is analysing whole customers needs and
wants as per this they offer them necessary products and services. Along with this, finance is the
major operational function in which they are maintaining budget system that required to be
prepared before target specific market place.
In respective organisation there are different type of operational function such as finance,
marketing, operations, strategy, designing of products and so on which help an organisation to
achieve its goals and objective in effective manner. Operational function is essential for ALID
because it is the basis of business or core operations.. The respective term is use to describe
process how core operations and function are design and implement but operational functions get
change over the time period and according to the need and requirements. Such as financial
department decide their financial budgets according to the works and requirements of the
respective firm.
M3 Evaluate how leaders and managers can improve efficiencies of operational management to
successfully meet business objectives
Leaders can enhancing operational efficiencies of operational management to
successfully meet the business goals and objectives. The leaders must empower their workers to
produce the highest level while doing working is the best way to empower the staff members and
team members. Thus, leaders and managers should focus on empowering the workers by
developing and promoting the work platform in effective manner. They required to concentrate
on enhancing their employees skills and abilities which assist in reaching with set goals and
targets. It will help in improving the efficiencies of operational management in order to meet
business objectives effectively.

D2 Critically evaluate application of operation management and factors that impact on wider
business environment
As per the view of Ashby (2012) the control and distribution system with the managing
or operating production for processing manufacture for effective results in comprising the
actions. Operation management help in effective operations of the management. The effect of
operation management assist in performing functions of the business with the prospective
situations for the formative strategies in order to leading actions. The legislation are govern by
actions which aid in adopting the objectives of the results.
TASK 4
P6 Factors within the business environment that impact upon operational management and
decision-making by Leaders and managers
Business environment define the internal and external factors which directly impact on
operational functions and procedures in both manner such as positive and negative. This is
required for ALDI is to analyse the overall aspects which may effect business in any aspect.
These elements are described as under:
Corporate social responsibility (CSR) – It can be described as various activities and
functions that should be conducted by firm to the welfare of society. ALDI have to fulfil their
roles towards community by providing employment to physical disabled individual, using eco-
friendly vehicles for travel (Ashby, Leat and Hudson-Smith, 2012). For instance, company
manager can take appropriate decision that determine the correct way to satisfying the same such
as donate specific amount of profit to NGOs for social welfare.
Internal factors: Organisation culture – This is required for company manager is to maintain and manage
their internal organisational culture and also concentrate that whether their employees are
adjust in company culture or not. ALDI culture is develop according to their employees
needs and requirements where they can performing their work in better manner. Employees – They are considered as internal factors which help firm in reaching with set
their goals and targets in proper manner. ALDI mainly focus on their workers who have
required skills and abilities so that they can easily acquire desired goals.

 Technology - There are different types of technological methods, equipments, software
and applications which can be adopted by firm for improving their production in order to
attain growth of business. In ALDI, they have executed some changes in business
technology to get updated according to the present situation of digitalisation that assist in
reaching with higher success. For example, leaders take appropriate decisions that can
used by organisation, but the influences of technology assist in managing operations
which being obsolete and business change according to external environment.
External Factor:-
Customers - Major factor which influence decision of respective company is customers
and satisfaction of their customers is the primary objective of an organisation. So it is
responsibility of manager of ALDI to pay attention on customers needs and demand so that they
make and design products and services accordingly.
Competitors - Management of respective company so close observation to their
competitors strategies and plans so that they can design unique and different products and
services according to requirements so that they attract more customers and audience.
M4 Analyse how these different factors affect the business environment and wider community
The business environment mainly affects by CSR policy which adopted by firm as the
CSR policy assist in improving brand image of an organisation. It promotes the company as the
society responsible which is the key concern for all stakeholders. The technology factor is
directly affects on company growth and development (De Roover, 2017). If they are regularly
update their technologies so they can easily get accurate results and outcomes in the business
environment.
CONCLUSION
According to the described report, it can be concluded that Management and operations is
the business practices which is liable for managing and maintaining the procedure of developing
products and services. There are different types of roles and responsibilities which are done by
managers and leaders to maintain the various activities in differentiated situations in order to
fulfilling all targets in successful manner. Leaders follows their own style of working which
involves various models, theories and approaches of leadership while dealing with different

business circumstances. Operation management is the procedure through which ALDI manage
their business operations and its functions in better manner.

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