Table of Contents
1.1 Assess how business missions, visions, objectives, goals & core competencies inform strategic planning when formulating strategic plans.
1.2 Analyze the factors that have to be considered when formulating a strategic plan.
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans.
2.1 Analyze the strategi positioning of Aldi by carrying out an organizational audit
2.2 Carry out an environmental audit for Aldi
2.3 Assess the significance of stakeholder analysis when formulating a new strategy for Aldi
2.4 Present a new strategy for Aldi
3.1 Analyze the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for Aldi
3.2 Justify the selection of a strategy.
4.1 Assess the roles & responsibilities of personnel who are charged with strategy.
4.2 The estimated resource requirements for implanting a new strategy for Aldi
4.3 Contribution of SMART targets to the achievement of strategy implementation in Aldi Company:
According to Johnson et al., (2015), the business strategy means the long-term action plan which is created to achieve the desired objectives. Business strategy plays a key role in management. A business strategy is made of different principles and they are explaining the proper working way to accomplish these goals. For example, these principles explain the proper way to deal with competitors, monitor the wants and expectations of the customers, and also monitor the development of the company.
There are four tasks in this paper. In the first task the evaluation way of the business missions, visions, objectives, and main ability to create the strategic plans is described. Here the necessary issues of creating the plan and the usefulness of the strategies which are used to improve this strategic plan are also described. The next task shows the analysis of the strategic position of ALDI which is completed by an organizational audit.
The micro and macro environment of ALDI, the importance of stakeholder analysis, and a new technique followed by ALDI to improve their business are described in this task. The third task shows the analysis of the aptness of other techniques regarding market entry, true growth, limited growth, or reduction of expenditure for ALDI. The last task described the importance of the role of the employees who are in charge of implementing the strategy. Here the projected necessities of resources to launch the new strategy for ALDI as well as the involvement of SMART targets for gaining the desired improvement of ALDI are described.
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1.1 Assess how business missions, visions, objectives, goals & core competencies inform strategic planning when formulating strategic plans
Aldi, a familiar retail shop is a combination of two main universal discount supermarket chains. At present, it has more than 100,000 stores in 18 countries and its net worth is about €50 billion. It was first found in Germany by brothers Karl and Theo Albrecht in 1946. In 1990 it starts its business in Birmingham, UK. Now it has more than 600 stores in the UK, employing 28,000 people, including 600 apprentices and 350 graduates. In the previous year, the business made 7,000 new jobs.
According to Kotler et al., (2015) Vision means the aim point of a business. Aldi’s vision is “Top quality at incredibly low prices- guaranteed”. As the nation’s low-cost grocery leader, they try to give the best quality of products and services. As well as ensure the salaries and the working environments.
According to Kotler et al., (2014), the way to reach the target point as vision is known as a mission. The mission of Aldi is given below:
- Providing the best quality products
- Huge savings for the customers
- Outstanding prices
Aldi has some objectives and they are given below:
- Improve consumer satisfaction level
- Expand the business more globally
- open 130 new stores in £600 million expansion
- employing 8,000 new staffs
Kotler et al., (2014) stated that Goals mean the reasons for and plans of the objectives. Aldi’s goals are given below:
- Improve online sales
- Abroad development
- Rising market sharing
- Customer allegiance
Core competencies of the business:
Aldi strictly focuses on the prices and it is its core competency. Aldi has taken many strategies to ensure its price remaining the same. The strategies which are taken by Aldi are given below:
Cost leadership strategy: Generally Aldi stores a small number of products of high quality and sells them at reasonable prices. They achieved their leadership status that is on the basis of their offer prices.
Focus on own brands: Aldi mainly emphasized on their own brand to stay self-governing, become able to avoid high cost.
1.2 Analyze the factors that have to be considered when formulating a strategic plan
The factors of strategic planning are very important for an organization. The factors which are focused on while formulating any strategic plan by Aldi is described below:
Strategic thinking: Aldi uses some factors under this plan and they are described below:
- Future plan for the business: Aldi has to decide a future plan for its upcoming business and find a way to achieve competitive advantages in the new and existing marketplace.
- Understand the customers’ expectations: Aldi has to understand its customers’ needs and expectations to maintain its business properly.
- Achieving competitive advantages: Aldi should expose plans to achieve competitive advantages in order to survive in a competitive market.
- Portfolio analysis: by using this technique Aldi is able to analyze its goods and services and improve its business.
Planning system: Aldi should use some planning systems including top-down planning system, bottom-up planning, informal planning, and behavioral approach. This technique has some impacts on the following factors:………………..