Introduction

Business strategy is an important essential of the organization that directly leads the organization
to successfully carry out its business operations in the most appropriate manner. Business
strategyis termed as management of formulating, implementing and evaluating the overall
functional decisions of the organization. This assessment will mainly deal about the business
strategies of the organization ALDI .ALDI is common brand of two global supermarket having
business in 18 countries with approximately 10,000 stores. Overall turnover estimated of this
organization is more than €50 billion. Karl Albrecht and Theo Albrecht founded this
organization in June23, 1913. As per reported in the year 2015, the organization ALDI has
104,400 employees all over the world. This assessment will enable the reader to identify the
mission, vision, goals, objectives, and core competencies of the organization ALDI . The reader
will analyze the present strategy of ALDI andaccordingly recommend for future amendments in
strategy. Further, the reader will also be able to analyze the implementation of recommended
strategy for ALDI .

Part 1 – Evaluating the strategy(1250)

a) Provide an assessment of the extent to which ALDI ’s missions, visions, objectives, goals,
core competencies inform strategic planning. (AC1.1)

The organization ALDI is private retail organization and is combined of two common brands
serving in globalized supermarket. ALDI is common brand of two-retail supermarket that are,
ALDI Nord and ALDI Sud. This organization has approximately 10,000 stores and serves in 18
countries.

ALDI’s mission

Main mission of the organization ALDI is to become the largest supermarket in the world and
provide high quality products and services to its customers.

ALDI’s vision

Main vision of the organization ALDI is to provide satisfactory experience to its customers by
providing standard quality of products at approachable price rates.
Objectives

Main objectives of the organization ALDI are as follows:

 To provide its products and services at approachable price rates

 To expand its market all over the world
 To increase the overall rate of customer satisfaction
 To ensure sustainable development in the market

Goals

Main goal of the organization ALDI is to provide a high quality products and services to its
customers at approachable price rates.

Core competencies

The organization ALDI avails a high quality products and services to its customers at
approachable price rates is one of the major factor that distinguishes this organization from its
competitors. This factor also leads the organization ALDI to gain competitive advantage in the
market.

b) Analyse the factors to be considered by ALDI when formulating their strategic plans.
(AC 1.2)

Strategic planning of an organization determines the direction or process by which the

organization is able to effectively make decisions by allocating the resources in order to pursue
strategy. There are number of factors that are required to be considered by the organization
ALDIwhile formulation of strategic plans:

Internal factor

Internal factors focuses on the concerns that are directlyconfined within the organization. These
factors include overall strengths and weaknesses of the organization ALDI. While formulation of
strategic plans, the organization ALDI needs to analyze the strengths in order to formulate the
strategic plan in such manner that it would lead in enhancing its overall strengths and lead in
reducing the weaknesses identified by the organization. This would lead the organization
toeffectively determine the shape of strategic plan and thereby, direct the organization in
attaining its required target effectively. The organization ALDI also need to analyze whether the
strategic plan are adversely affecting the organizational strengths or not. Therefore, it is very
important for the organization ALDI to identify and analyze its strengths and weaknesses in
order to attain the required target.

Stakeholders

Major stakeholders of the organization include employees, managers, customers, creditors,

suppliers, community, and government. The organization ALDI need to consider major
expectations of stakeholders in accordance to which the overall planning of strategy will take
place.Analyzing the expectations of stakeholders would lead the organization ALDI to direct the
plans of strategy and thereby lead in attaining its organizational goals and objectives in an
appropriate manner.

External factors

External factors are the external environment of the organization that needs to be considered in
order to attain a sustainable growth in market. External factors include political, economic,
social, technological, legal, and environmental factors. By considering political factors, the
organization ALDI would be able to identify the major policies of government that would affect
the strategic plans of the organization. This would lead the organization to successfully plan the
strategies for attaining the required objective of the organization. Before formulation of strategic
plans, the organization ALDI also needs to consider economic status of the market as it helps in
determining the sales objective and strategies. Further, the organization will also require an
appropriate identification of social and cultural behavior of targeted market in order to define
strategy in such manner that will lead the organization in attaining requirements and demands of
customers effectively. For an effective formulation of strategic plans, the organization ALDI will
also need to consider certain technical factors in order to analyzewhether the strategic plan for
implementation of technology is up to date in the market or not. One of the most foremostthings
that the organization ALDI needs to consider is the legal factors of the market. The organization
need to plan the strategies that are aligning with the legal aspects of the organization. at last, the
organization need to consider the environmental concerns before formulation of the strategic
plans. All these external factors need to be considered before formulation of strategic plans, as it
would directly enable the organization ALDI to frame an effective strategic plan.

c) Using evidence to support your answer evaluate the worth or usefulness of techniques
used when businesses develop their strategic plans. You are encouraged to use techniques
such as BCG growth matrix, SPACE or PIMS to enhance your answer. (AC1.3)

Development of strategic plans in the global world is one of the most critical business processes.
There are number of techniques and methods can be usedforsuccessful development of strategic
plans. The organization ALDI can effectively implementmodels and tools like, BCG matrix and
SPACE matrix for strategic planning.

BCG matrix

BCG matrix can be determined as portfolio planning model, which was developed by Bruce
Henderson in the year 1970. Based on different categories of BCG matrix, business units of an
organization are classified. The four categories of BCG matrix are, Star category, Question mark
category, Dogs, and Cash Cows category.

Stars are the products offered by the organization, which has high growth along with market
share. This type of products directly leads the organization in rising up of its overall revenues in
an effective manner. In the case if the rate of growth of star product falls, it directly converts
itself to Cash Cows. The products in Cash Cows are more profitable as it directly leads the
reduction of revenue required for this product and comparatively have high return rate. The
products that have very high growth rate but low market share lies under Question mark
category. The products that are Dogs category are generally tucked up with the fact that it will
provide no return at all.

The organization ALDI can use this matrix for development of strategy in order to determine the
category of its business unit under four categories of this model. The organization ALDI
provides fresh products like, meat, which has very high demand rate and therefore, it lies in cash
cows category. Some of the products of ALDI lies under Dogs category especially dairy products
as it has no returns. Therefore, this leads the organizationALDI to attain an outcome that
investment on these products should not be done. Therefore, only based on requirements, the
organization ALDI can develop its strategic plans. This is the reason that the organization ALDI
need to focus more onMarket development on comparison to market penetration.

SPACE matrix Commented [L1]: http://www.differentiateyourbusiness.co.uk/sp

ace-analysis-strategic-position-and-action-evaluation-matrix

SPACE (Strategic Position and Action Evaluation) Matrixis defined as a techniquie of evaluating
a sense and wisdom of strategic plan. SPACE matrix is comprised of four categories that include
Conservative, Aggressive, Defensive, and Competitive.

Aggressive
Conservative
Aldi

Defensive Competitive

Figure 1:SPACE matrix for Aldi

(Created by author)

d) Carry out an organizational audit for ALDI and provide an analysis of their current
strategic position. (AC 2.1)

For an effective evaluation of strategic positioning of the organization ALDI an appropriate

analysis of internal factors is very important. In order to analyze the internal factors that include
strengthsand weakness, SWIOT analysis are carried out.
SWOT analysis of ALDI

Strengths Weaknesses
 Fastest growing organization after LIDL  Low market share in United Kingdom
 Deliver high quality of products and  Weak supply chain management due to
services at approachable price rates which results in improper management in
 It has 10000 stores worldwide among business operations for some countries like,
which 2500 stores are located in Germany Switzerland
 This organization operate its business  Less number of stores in United Kingdom
operations in 18 countries on comparison to other countries
 Cost of operation is low due to
implementation of all updated
technologies.
Opportunities Threats
 With an appropriate market segmentation,  New entrants are the major threat for the
the organization can easily lead in targeting organization ALDI
its major customers  Tesco and Sainsbury are the major threat in
 Implementing of digital technology can the market of United Kingdom
improve its promotional activities and
thereby lead to increase its overall number
of sales.
 Continuous upgradadation in technologies
can directly lead the organization in
improving the overall business operations
of the organization ALDI
 Increase its range of products and services
availed for the its customers
Table 1: SWOT analysis of ALDI

(Source: )

e) Carry out an environmental audit for ALDI showing both micro and macro
environment. You are advised to use Porter’s 5 Forces analysis to answer this task. (AC
2.2)
Porter’s Five Forces is a tool that directly leads in identification and analysis of competition of
business in the targeted market. With the help of Porter’s Five Forces, the organization ALDI
would be able to analyze the factors of environment affecting the organization:

f) Assess the significance of stakeholder analysis for ALDI when formulating new strategy.
You will explain why stakeholder analysis is important when formulating a new strategy
and support your answer with justifiable reasons. (AC 2.3)

g) Using the research and information collected about ALDI , present a new strategy ALDI
can follow. (AC 2.4) A suggested framework for presenting your strategy could be as
follows:

I. Where are we now?

II. Where are we going?

III. How will we get there?

Part 2 – Making a strategic choice (1250)

a) Identify a market (new or existing) and analyze the appropriateness of suitable strategy for
ALDI in relation to substantive growth, limited growth or retrenchment. You will need to make
a case for at least one of the three strategies mentioned. (AC 3.1)

b) Provide a justification of one of the strategies for market entry and growth that you have
discussed in 3.1. You will need supportive evidence to your opinion or rational. (AC 3.2)

Evaluate alternative strategies in terms of their suitability for the organization

Part 3 – Implementing the strategy (1250)

a) Provide an assessment of the roles and responsibilities of personnel who are involved with the
implementation of the strategy. (AC 4.1)

b) Provide an analysis of the resource requirements for the implementation of the strategy. (AC
4.2)

c) Evaluate how the use of SMART targets (give examples) can contribute to achieving the
strategic objectives. (AC 4.3)

Conclusion (100)
Reference list (20)

Harvard referencing style