BMP6002: Strategic Management Case Study Analysis Report

This report provides a critical analysis of strategic management processes, models, and tools used by organizations, with a focus on the case of Aldi, a German supermarket company. The report begins by defining strategic management and assessing the processes organizations use to determine their strategies, including vision, mission, and objectives. It then evaluates critical models and tools, such as the balanced scorecard, objectives and key results, and Porter's value chain analysis, applying these to Aldi's operations. The report also examines PESTEL analysis to understand external factors influencing Aldi's performance. Furthermore, it appraises the importance of change management in the context of organizational transformation, considering costs, risks, and sustainability. The analysis includes an examination of Aldi's strategies and provides insights into how the company adapts to market challenges, emphasizing the significance of strategic planning and the implementation of change management processes. The report concludes with a summary of key findings and recommendations for strategic improvement.

Strategic management case-study
analysis
Introduction 1
0

A critical assessment of the process used by organisations to
determine their strategy 2
An evaluation of the critical models and tools used by
organisations to determine their strategy
3
An application of these tools to a real organisation 5
Critically appraise the importance of change management based on
the complexity of the transformation process, its costs, risks and
sustainability 6
Conclusion 7
References 9
1

Introduction
Strategic management is the process which contains preparation and
supervisory of every resource to obtain the organizational goals. it contains the
formulation strategy for optimizing the competitive advantage. This study of internal
and external factors affects the presentation of the enterprises. This provides the
correct path to the group. This also gives the benefit of attaining the long term and
short-term goal of the organization. This provides the way to the organization which
demonstrations the strong mission and vision of the company (Asil, 2019) This leads
to the extreme utilization of the resources in order to perform effectively and
efficiently. Now, in the context of the company Aldi that is the German super market
company founded in the year 1946. The company provides the product that is
affordable for the customers as well as contains the good quality. This report
contains various details about the strategy and approaches adopted by Aldi. This
also suggests the different strategically plans to maintain the balance of the
organization.
A critical assessment of the process used by
organisations to determine their strategy
The strategy plans are related to the action that can be taken by the manager
to achieve the goals of the company for accomplishing the objectives of the
company. This sometimes helpful to get determine the success of the organisation
that is essential for asking for itself within the organisation. in the following strategy
the company Aldi is sometimes essentially asking from itself that what are the better
ways for achieving the goals of the organisation (Bell and Rochford, 2020) This is
also called as the guide of the business that is helpful for achieving the goals of the
business. the futter steps and process used by the determine their strategy.
Vision;
This is one of the major issues of the organisation is keeping their member
aligned as well as to be focused on the most important that will be helpful to align the
priorities of the company. This will need the effective as well as efficient resourcing.
Also, this will further assist and support by analysing the vision, mission in order to
provide the appropriate direction to the organisation. The vision of the company will
be future oriented that means to inspire the company as well as this also have been
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focused within the retail industry to provide the customers the most compelling
shopping experience as well as to provide the selection option in numerous ways as
well as to be focused on quality as well as values (Borisova, and et., al2017) The
company Aldi goals are simple to serve their customers in better way for maintaining
the lifelong relationship, this is possible only when they are serving face to face to
their customers. Now a days customers desire is speed convenience, innovation as
well as personalization. The company Aldi is get focused on the cross-channel
experience in order to combining the needs. This will be helpful in combining the
accessibility of the pure online experience with the high touch exclusive stores
Mission;
The mission of the company is just beginning; the company wants to work
together to be focused on connections as well as advertisements. The mission also
includes the inclusion as well as diversity among the staffs of the company. The
company Aldi is keep focusing on their staffs for making strength of the business to
make the strong communities as well as make their company healthy as well as
safe. The company Aldi is investing in career development as well as to be careful
about the well-being of the company. Apart, from this company is also keep
concentrating on obeying the rule and regulations, caring of their members, doing
respect of the employee as well as giving appreciation to their stakeholders on time
basis.
Objective;
The main purpose and objective of retailing company to get know the retailers
to how to give satisfaction to the customers that are loyal customers as well as to be
focused on acquiring the right products, the customers will be only satisfied by the
help of purchasing the right products to get satisfy the needs of the customers
Strategy:
As the company Aldi is the most established retailers in order to recognize to
operate the holistically and work across the functional and under the industry
boundaries. This is really difficult to get decide from where to start making the
strategies, but the organisation Aldi is also facing lots of difficulties, while receiving
the progress of organization as well as get focused on customer experience to get
follow the several path to get success within the organisation the milestone will
include the following things-
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 This will provide the conscious choices to make the customer get influenced
for the products and services. This will need the clear communication to their
employee for giving the priority to the customers. This is totally related from
the culture changes in day-to-day activities that will turn into the aspiration to
the reality of the retail sector.
 This also provides the commitment to the leadership in order to build the
major capabilities of the industry in order for doing the innovation
 Through strategic planning there is the following assessment of the layout as
well as merchandise mix and brands of the company to provide the adequate
experience of the customers for bridging the gap in between the physical as
well as digital channels of retailing sectors.
 These are the strategies also provides the reviews of the models of the
operations to get to know the talents as well as organizational structures as
well as what are the process followed in the operations as well as technology
to fit in the new area of retailing sectors. This will also helpful to know the
what are the specific roles of the stores for managing the administrative
burden for doing the task in repetitive way as well as planning for higher value
activities (Chidiac, 2018)
An evaluation of the critical models and tools used by
organisations to determine their strategy
Strategy;
The strategy is the main process of any business, without strategy no
business will be survive in the field of market. strategy helps the Aldi with their
models of planning, sales operation, marketing skills etc. Strategy gives Aldi an
identification in the business market, it also helps to give strength or to get ready with
the future planning for the Aldi (Greckhamer and Cilesiz, 2020)
Strategic planning model for the Aldi;
Strategic planning model for the Aldi is only focus on the future and long-term
goals. Aldi is also focus on strategic and continuing business strategic it gives a
growth to the company. But future and long-term goals give the boost to the Aldi.
There are 3 strategic and planning for the ALDI business are as follows: -
The balanced scorecard: - A balanced scorecard gives a opinion on the
strategic planning for the Aldi. Balanced scorecard reflecting goals, future
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assignment for the business and highly focused area for the Aldi. Balanced
scorecard can be useful in a different area at a time just like as- area which is
connected to the business, sales, different marketing services, operation. Scorecard
is the backbone or a role supportive model for the corporate. The additional name of
balanced scorecard is specific measurement of business
Objectives and key results: - A objective and key result is a part of the
strategic and planning model of Aldi. The objective and key outcome is achievement
key for the business, it’s essentially depended on the three factors – accomplishment
and records, income generated from the business, or sale and profit. When the
objective and key result words come, Aldi just thinks objective, stimulating,
thoughtful, clearly comprehensible, tangible, accessible, proponent, important, limit
to numbers, trackable, these words are a accomplishment words for any business
(Hauser, Eggers and Güldenberg, 2020)
Theory of change: - Theory of change is a way of think progressive and identify
the conditions that are necessary for the business to achieve their goals. Aldi apply
theory of change when they need goal setting, building a term, planning an initiative,
developing an action plan in case of any need. The theory of change is helpful for
this purpose is as follows-
 This helps to identify in the long-terms and future planning for the Aldi.
 They provide road map and requirement necessary to achieve the targeted
goals for the Aldi.
 This helps to classify the basic supposition and important situation.
 They control intervention Aldi creativity that helps to fulfill their achievement
and goals.
 They create up with the innovative ideas to assesses the performance of
initiative given by the Aldi.
 Its helps to reviewing their work and performance according to the initiative
with time to time. There are strategic planning tools for the ALDI business
areas follows: -
Porters value chain analysis: - this analysis is a strategic planning tools that
gives an ideal behavior of the Aldi. This analysis gives the whole attribute and
positive behavior of Aldi, this analysis reflects the positive views of Aldi. It allows to
determine new ideas, new opportunities, areas should be focused while doing
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planning, skills improvement. Also, identity negative impact and mistake that will
harms the business This analysis gives the viewpoint of force that will help to growth
of the business. This includes the marketing sales and operations activities of the
company.
Pestel analysis: - This is Generally for the purpose of political, economic.
Social and technological assessment analysis of ALDI that, focus on the porter’s
five force .in every business there are lots of competitive partners that gives an
equal amount of race in the field of market business.
An application of these tools to a real organisation
It is involved with the extent of corporate cycle that influence or influence
efficiency and profit of the Aldi entity. Here are the following tools and strategy used
by Aldi environmental forces that influence performance of Aldi entity. The further
strategy for PESTEL analysis of Aldi.
Political Factor- With developing upsurge in violence at the countries of UK,
government becomes on high alert for the protection of people. As a result,
administration bodies rule laws and guidelines. These lawgiving influences majorly
on the commercial action of Aldi entity. Company practices its professional process
as per the legislature framed by the administration. Government bodies imposed
huge amount of fine if Aldi will not practice these laws in its operations.
Economical Factor- The policies of Aldi has influenced since of economic
decline. Consumer’s modification its buying behaviour pattern and reduce the budget
of shopping. After that person choose to purchase only day-to-day crucial items.
Organisation has to achieve its price range to manage with competition.
Social Factor- It is one communal myth in the mind of UK customer that
product of lesser price will bring at lesser value level. Company tries tough to
alteration this idea. As Britain buyer not simply alteration its attitude to product. They
originate problems in converting attitude of individuals that society bring high level of
service at reasonable or low price (Meglio and Park, 2019).
Technological Factor- Progressive knowledge influence entire commercial
cycle of enterprise. The participants of business accepted promoted skill such as
digital services, credit, ATM card and numerous advanced software. Organisation
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faces trials in technology difficulty as they are not proficient sufficient to distribute
these types of services to target audience.
Environmental Factor- The government is much conscious of these
ecological forces. Object is misusing environment resources hence it is their
accountability to continue supportable financial development of country. Business
has to carry valuable idea to the customer.
Legal Factor- Organisation export large quantity of merchandises from one
part of country to another. So, they have to challenge lots of hurdles in lawful forces.
Entity has to preparation all the strategies and legislature of food industry; business
has to accept all certifying controls in its commercial process.
Aldi strategic ability adopted in Porter's Value Chain Model:
Inbound logistics- Organization trusts of numerous actions like obtain, stock
etc. it also includes warehouse that stock merchandises and raw material, alter
belongings data in digital way. Business depends on the outsource entity for
treatment its arriving logistic to improves customer base.
Operations- It combines numerous actions that help society in changing
properties into final product. They acknowledged costumer information in its
promotion that depend on target audience, goods for emerging commodities. This
will help company in sustaining strong bond with target audience.
Outbound logistics- Aldi adopted strategies to renovate concluding product
to delivery system and target audience. It includes numerous movements like
warehousing, chain of supply to final channel from wholesaler to the channel of
retailer.
Marketing and sales- Company involves several actions such as
advertisement, promotions, modes of distribution system, strategy formulation price
range, staff organization in sales team etc. Organization executes these activities for
continuing brand image in the insight of target audience so that they will buy
merchandises of company (Nykyforenko, and et., al 2019)
Services- It syndicates numerous doings so that it delivers efficiently its
commodity to target audience along with after sales services. It contains of fixing of
commodities, continue sales target record etc.
The sustenance activities of Aldi assistance its key activities of organization.
These activities support and manage primary activities
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Critically appraise the importance of change management
based on the complexity of the transformation process, its
costs, risks and sustainability
Applying the change management, within the retail industry. This is really
helpful for the brand to stay relevant within the eyes of the customers and will be
helpful to keep operations in order to running their activities successfully within the
organisation. This will provide the positive change to the organisation Aldi. This will
be helpful to reduce the waste in order to the cost management as well as purpose
of the sustainability to better influence of the customers by using the organic
products and services within the business. however, this will be helpful in order to
decrease the risk of the company and will be helpful to improve the profitability of the
organisation. some of the important things that is considered in change management
will be is as follows-
Put people first- This is the basis things that is to be focused by the company
Aldi to make changes within the business and get its business successful. This term
is directly related from the satisfaction of the employee. This is helpful to find out who
is working happily in its organisation. The satisfied employee is helps to reduce the
cost of the company in order to achieving the organisational goals.
Costs- To get applying the change management will takes time and cost
within the company. According to the change management, cost refers to the
employee training, management of people inside the organisation as well, the
change management is also demonstrating the relationship in between the
managing of the cost as well as the benefits that is helpful for applying structured
approach for engaging their employee to engage and adopt change within the
business.
Risk- The change management is getting associated to get identify the
threats of company Aldi that what are the existing threats of company can might
face, however, this is helpful in estimating the Risk of company in order to realise the
possible impact of the company (Purnomo, Suryana and Sari, 2018)
Sustainability- analysis is playing the most vital role in change management
that is related from the incorporation of the business like, social, economic and
environmental factors for analysing the decisions of the business. The sustainable
management practices within the business is used to prove the business in its
profitable way to adopt and grow the changes within the business for change in the
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market of retailing that will also provide, numerous competitive advantages to the
firms
Conclusion
From the above report the conclusion of topic is, in order to varying the
situation, the company revolutionized the new plans and various approaches to
continue the equal balance of the organization. The company is really trying in order
to improve the excellence of their products with affordable price. The organization is
keep concentrating to examines the price of the product in order to advance their
quality. This is the reason the business can attain the achievement and enhanced its
presentation in sustaining the wants of the clients. Customers always want to buying
the products that contains good quality with low prices this will add value for the
customers. Aldi accomplishment well in comparison to their competitors. Due to Aldi
rising demand they capture the consideration of the customers and also build the
brand trustworthiness of their products. The product has the approach to production
price is low but the quality is high. So, the company major emphasis to control the
price.
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References
Book and journal;
Asil, A., 2019. Design and Implementation of Strategic Agility Evaluation Model
with Structural Equation Modelling Approach. Academy of Strategic Management
Journal, 18(1), pp.1-16.
Bell, G.G. and Rochford, L., 2020. Identifying and Understanding the Core
Concepts in Strategic Management. The Journal of Applied Business and
Economics, 22(11), pp.12-24.
Borisova, O.N., Silayeva, A.A., Saburova, L.N., Belokhvostova, N.V. and
Sokolova, A.P., 2017. Talent management as an essential element in a corporate
personnel development strategy. Academy of strategic management journal, 16,
p.31.
Chidiac, E., 2018. Strategic Management of Diversity in the Workplace: An
Australian Case. Routledge.
Greckhamer, T. and Cilesiz, S., 2020. The extension of strategic management
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Hauser, A., Eggers, F. and Güldenberg, S., 2020. Strategic decision-making in
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Economics, 54(3), pp.775-790.
Meglio, O. and Park, K., 2019. Strategic decisions and sustainability choices.
Palgrave Macmillan.
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Novikov, S.V., 2018. Strategic analysis of the development of high-technology
manufacturing facilities. Russian Engineering Research, 38(3), pp.198-200.
Nykyforenko, V., Kravchenko, V., Zbrytska, T., Kryvtsova, M. and Svorobovich,
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Purnomo, D.S., Suryana, Y.S. and Sari, D., 2018. The effect of business
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