Analysis Of Strategic Plan Of ALDI Supermarket In Australia

Mission and Vision of ALDI

Discuss about the Formal Strategic Planning Process and Flexibility.

The report helps in analysis of the strategic plan of the business of the respective organization named ALDI that is one of the largest super market in the entire Australia. The report will help in analysis of the different kind of mission, vision and analysis of the stakeholders of the respective organization as well. The different competencies of ALDI supermarket will be discussed as this will help in analysis of the position of competitors of ALDI.

The main aim and purpose of the report is to identify the different strengths and weaknesses of the company along with the analysis of the competitors. Proper analysis of the different strategic goals will be identified in the market as this will help in creating action plan, risk mitigation and cost benefit analysis of the different kind of strategies.

ALDI has emphasized in providing different kind of fresher products as the main mission of the supermarket is to provide services and products that will satisfy the customers and partners with providing them unique experience of shopping. It helps them in offering variety, quality and service based on commitment and attention to the different employees (“ALDI US – Homepage”, 2018).

Furthermore, the vision of the supermarket is to an independent, honest and innovative sustainable supermarket wherein the different customers can able to choose different goods at the prices that is reasonable in nature. The core values of the company is to listen to the different customers, employees and suppliers of the supermarket as to provide the different information and welfare through honesty and commitment.

There are different stakeholders in ALDI who plays an essential part in the organization as they help in influencing the different decisions relating to business. The different stakeholders of ALDI are as follows:

• Customers
• Suppliers
• Government
• Media
• Non-government organizations
• Employees

There are different stakeholders that create huge effect on the different kind of business decisions in ALDI. The different kinds of implementation of policies that will create direct impact on the different kind of employees and customers wherein the different employees of the respective supermarket will require to take different measures for the policy implementation along with consumers will help in experiencing different kind of terms of the quality of the different services and products.

Suppliers are required to understand the different changes in the procurement of the different policies and the different government policies are required to be within the different rules and regulations of the government. Furthermore, the different rules and regulations of the government include the different kind of competition forms along with licensing of liquor and other regulations on carbon as well.

Stakeholders of ALDI

Therefore, the respective supermarket needs to abide with the different rules and regulations of the government as this will help the company in creating a positive impact on the organization along with on the different regulations of the government. ALDI is involved in different kind of corporate social activities along with collaboration with different kind of NGOs and they need to implement the different CSR activities in an effectual manner, however if such laws are not followed this can create negative aspect on the NGOs. When the respective supermarket will face different kind of issues related to not following the rules and regulations, this will create negative aspect on the internal and external stakeholders.

Wolf & Floyd, (2017) commented that the strategic plan comprises of different kind of activities as this will help in improving the sustainability practices of the company in an effectual manner. The different sustainability practices are required to be analyzed by ALDI as this will help in gaining competitive advantage in an effective manner. The strategic planning is essential in respective supermarket as this will help in providing sense of the direction in outlining the different goals that are desirable in nature.

ALDI needs to implement different kind of strategic plans as this will provide clear facilities and direction as this will develop action plan for the organization. The appropriate strategic planning will help in assisting prioritizing the different kind of goals along with allocation of the resources to reach the goals that is directed in nature. The timeframe and accountability of the tasks is defined as the usage of the different kind of plans that is strategic in nature that will help in increasing the level of the communication and commitment with the entire company. These kinds of strategic plans will help in facilitating the development of an accurate framework that will help in maintaining proper process of decision making (Wolf & Floyd, 2017).

ALDI is one of the largest supermarkets that is situated in Australia wherein the respective company has tried to differentiate the positioning strategy in an effectual manner as this will help the company in gaining competitive advantage. The respective company has positioned their products and services in the market wherein the target customers of the company are the households who purchase different kind of grocery items in an effectual manner. The pricing has been crucial in the supermarket ALDI wherein it has been seen that prices are lower than the other competitors in the market. The positioning and segmentation has been done in an effectual manner as this has helped the company in managing the change and gain competitive advantage in the competitive market as well.

SWOT ANALYSIS OF COLES
Strength	ALDI claims to serve the customers top quality branded products ALDI offers the different ranges of products at an affordable rate The operating costs are low in nature (Hill, Jones & Schilling, 2014) It has different kind of operations in more than 29 countries worldwide It has created strong kind of presence in Germany in over 2500 stores
Weaknesses	It is relatively small in comparison to the other brands It has no global presence as there are few chain stores It is regarded as the store for the cheap along with low quality items
Opportunities	It has to invest more in the advertising as to beat the competition from the competitors Expanding the different growing economies like Asia, Africa
Threats	It cannot cater to the different shoppers for the complete experience of shopping There are different other retailers who have different SKUs There are different private level brands of ALDI can be tossed with the established brands

Competitors of ALDI

There are different competitors of ALDI in the entire market of Australia that includes Woolworths, Coles and Metcash (Wolf & Floyd, 2017). It has been seen that Woolworths is the leader in the entire market of Australia wherein the other supermarkets are the followers in the same respective market (Frynas & Mellahi, 2015). These are the different kind of organizations that offers similar kind of products and services to their customers and they target the same audiences in the market as well. However, there are different strengths and weaknesses of the different competitors that has to be analyzed in an effectual manner (Rothaermel, 2015).

ALDI has tried to gain proper competitive advantage in the market wherein they apply the discount strategy (Wheelen et al., 2017). Furthermore, Metcash follows the same kind of strategy as ALDI wherein they too provide different kind of products and services to the customers at the discounted rates as well (Galliers & Leidner, 2014). The retail sector in Australia is growing in a rapid manner wherein the different major kind of players in the market are the different competitors. The different competitors in the market serve the same kind of customers like ALDI and they have the entire ability to make the customers happy and satisfied by providing them same products at a discounted rate (Dibrell et al., 2014).

Strength and Weakness of Competitors
Woolworths	Strength	Woolworths is one the largest supermarket giants in Australia It has created strong awareness of the brand It has created strong base of the customers
Weaknesses	There is minimal kind of presence on the global market They do not have proper maintenance of the competitive advantage (Lasserre, 2017)
Coles	Strength	It has created large kind of presence in the entire market after Woolworths They apply different kind of pricing and promotional strategies The online delivery has effective presence and it helps them in becoming popular (McLean, 2018)
Weaknesses	The organization operates in low margins when it is compared to the other big competitors in the entire market globally There are no such proper and accurate negotiations with the different suppliers as Woolworths or ALDI
Metcash	Strength	It helps in delivering the different kind of products in different kind of independent stores in Australia The scale of economies is large in nature and this has huge distribution network
Weaknesses	The model of business is copied in an easy manner and this creates presence in the global market

There are different kind of strategic goals of ALDI wherein it will include the different sectors of the retail store that are as follows:

• Training and development of the different employees in the respective organization is essential in nature as this will help in solving the different kind of tasks of the managerial levels. The training provided to the employees is essential in nature as this will creating innovative ideas effectually
• Secondly, fostering positive and open team environment as this will help in disseminating the ideas and this will help in changing the different level of stores and gain appropriate business partners. Proper usage of value added portfolio is essential in nature as this will help the company in constantly improving their strategies
• Thirdly, the business that is within the entire organization is required to be customer centric and this will help in support the different organizational goals and objectives in an effective manner and this will help the employees in understanding the customer relationship management
• Lastly, it is required to proper implementation of different strategies of backward integration is essential in nature as this will help in reducing the production cost and solve the issues in comparison of the different competitors (Slack, 2015)

It has been seen that there are different strategies that has been adopted by ALDI as to gain competitive advantage in the market effectively (Jarzabkowski & Kaplan, 2015). The two strategies that has been prioritized by ALDI are the maintaining customer centric services in their organization as this will help them in attracting more customers in the future. Secondly, the integration strategy that is backward in nature has to be developed as this will help the company in dealing with different issues in an effective manner and this will help ALDI in increasing the entire operational effectiveness.

Strategic goals	Strategic Action	Responsible parties	Expected Outcome	Timeframe
Implementation of integration that is backward in nature to reduce the operating costs	Identification of different processes	Chief Operational officer	Positive	08 days (23rd march to 30th  March)
Estimation of process cost	Financial manager	Moderately Positive	09 days (30th March to 7th April)
Identification of the different raw materials	Operation manager	Positive	10days (7th April to 17th April)
Development of the product	Operation team	Positive	30days (17th April to 17th May)
Product analysis	CEO and CFO	Highly Positive	5days (17th May to 21st June)
To be customer centric in nature as to gain more loyal customers in the future	Proper meeting has to be conducted	Board of directors’ customer service department	Highly positive	6 days (21st June to 26th June)
Discuss the difficulties	CEO	Positive	2days (26th June to 28th June)
Develop solutions	Board and stakeholders	Negative	5days (28th June to 2nd July)
Implement solution	CEO	Highly negative	3days (2nd July to 4th July)

Strategic monitoring and control is essential in ALDI as this will help in understanding the different kind of resources that are required for the project along with the span of time as well. A project manager will be appointed by ALDI as this will help them in understanding the span of time required along with resources used for monitoring the different activities. In order to generate desired results, it is required to conduct weekly meetings that will help in analyzing the progress in the future progress.

SWOT ANALYSIS OF THE STRATEGIES
Strength	Backward integration will help in increasing the operational efficiency and this will increase the percentage of profit Proper connection with the customers is essential in nature that will help in solving the different kind of issues
Weaknesses	There is huge amount of risk involved in such processes
Opportunities	The different customer service is essential in nature as this will provide different opportunities to increase their purchase
Threats	Other competitors in the market has implemented same kind of methodologies

SWOT ANALYSIS OF METCASH
Strength	It has self-owned private brand level The entire business is supported by more than 6 major distribution centers (“Home – Metcash | Australia’s leading wholesale distribution and marketing company”, 2018)
Weaknesses	Innovation is limited Highly imitable kind of model of business
Opportunities	Vast scope for expanding the business outside Australia Foray into online selling their products and services
Threats	Inflation is rising Labor issues

Risks	Likelihood	Impact	Mitigation action	Responsibility	Timeframe
Delay in time for receiving different kind of materials	Low	Medium	Maintaining good relationship with consumers	Project manager	11th April to 25th April
Delay in getting approval for process of backward integration	High	High	Developing communication plan that is effective in nature	Project manager	26th April to 11th June)
Issues in different machineries used in the process	High	High	Regular maintenance of the machinery	Project manager	June 2018
Generation of unexpected issues	Low	Low	Cannot be analyzed	Project manager	Any time

Item	Details	Cost	Benefit	Estimated revenue
Licensing fee required for development of products	License required for implementation of backward integration	$6 million	Profit margin will increase by around 15%	Revenue of ALDI will increase by $50 in two quarters
Setting up factory	Factory for development of product	$ 85million	Profit will be increased wherein the operating costs will decrease by 15%	It will help in increasing generation of revenue by $ 125 million in 1 year

Strategic Goals of ALDI

There are different government rules and legislations that plays a large part in understanding the process of running the business.

ALDI along with the different competitors follow the different legislations that are as follows:

• Australian Consumer Law
• State Liquor Legislation
• National trade legislation measurement
• Retail leasing state regulations

Furthermore, there are different licenses that are required to be adhered by the different organizations or supermarkets as this will have huge impact on the business environment. The licensing and permits are as follows:

• Importing Goods
• Zoning permits
• Disposal of wastes
• Selling different tobacco product

ALDI is one of the supermarkets wherein they provide proper discounted products and services that is provided to their customers and their presence is over 10000 stores in more than 21 countries. The main business core value of ALDI is to provide the clear vision and it helps in introducing different kinds of food and beverages wherein they have earned a turnover of more than €50 billion. ALDI helps in saving money in different ways wherein they offer different kind of goods and services that will help in increasing their customer base.

As per the mission and vision of the respective company ALDI, it can be analyzed that the company needs to focus more on the vision as this will help them in gaining competitive advantage in the market. ALDI has to be more innovative in their approaches as this will help in understanding the competitors and plan accordingly as well. As per the mission and vision of the company, the company needs to offer different kind of ranges of their products along with free online delivery for the customers to gain competitive advantage in the market.

From the above stakeholder analysis matrix, it can be analyzed that in ALDI, the employees and suppliers are given proper importance wherein they are the assets of the company. Similarly, the key players are the customers of ALDI wherein they have to be given importance for receiving and generating success. The media and government institutions are essential but they re not provided with proper importance.

Conclusion

Therefore, it can be concluded that the report helped in analyzing the strategic management processes of the respective organization ALDI. There has been huge analysis done on both external and internal environment that has helped in providing proper scope of gaining competitive advantage. The risk mitigation and the cost benefit analysis has helped in understanding the issues and solved them in an effective manner as well. In the second part, the stakeholder analysis is required to be done wherein this helped in gaining customer advantage. The mission and vision has to be analyzed effectively as this helped in gaining strong customer base.

References

ALDI US – Homepage. (2018). Aldi.us. Retrieved 23 March 2018, from https://www.aldi.us/

Dibrell, C., Craig, J. B., & Neubaum, D. O. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research, 67(9), 2000-2007.

Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press, USA.

Galliers, R. D., & Leidner, D. E. (Eds.). (2014). Strategic information management: challenges and strategies in managing information systems. Routledge.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Home – Metcash | Australia’s leading wholesale distribution and marketing company. (2018). Metcash | Australia’s leading wholesale distribution and marketing company. Retrieved 23 March 2018, from https://www.metcash.com/

Jarzabkowski, P., & Kaplan, S. (2015). Strategy tools?in?use: A framework for understanding “technologies of rationality” in practice. Strategic Management Journal, 36(4), 537-558.

Lasserre, P. (2017). Global strategic management. Palgrave.

McLean, M. (2018). Understanding your economy: Using analysis to guide local strategic planning. Routledge.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.

Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.

Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven agenda. Journal of Management, 43(6), 1754-1788.