...A Case Study on Aldi I. Introduction The retail industry is a very competitive market. Organizations need to offer customers value for money. Customers want to pay for low priced but high quality products. With such hard competition it is necessary for organizations to know what their customers want. Aldi recognizes that its customers want value for money but do not want to compromise on quality. This case study will show how Aldi’s strategy led them to a competitive advantage. It will also show how Aldi provides quality products at reasonable costs. Aldi is a Germany-based hard discounter that has unique business practices. They use a lean approach to its business operations to offer its customers quality products at competitive prices. They concentrate on purchasing power; carrying only the most frequently purchased grocery and household items, of which most are ALDI select brands. As a result, they get the lowest prices from our suppliers and pass the savings on to the customers. They update operations eliminating every feature that increases cost and prices. II. Objectives and Scope Our group was given a task to do the case study analysis on Aldi. We need to find out how Aldi’s strategy leads to competitive advantage and how they achieve this strategy. We also need to find out whether Aldi’s low-cost strategy implies that they offer low quality products and why quality is important regardless of competitive strategy.For us to answer these questions, we will...
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...FOUNDATION TO BUSINESS STRATEGY ALDI ALDI is one of the world’s leading grocery retailers with more than 7,000 stores across 70 countries. The company originates from Germany, where it was founded in 1913 as one of the first retailers to offer self-service. Since opening its first store in 1913, ALDI has established itself as a reputable retailer operating in international markets including Germany, Australia, UK, and the U.S. What distinguishes ALDI from its competitors is its pricing strategy without reducing the quality of its products. In fact, in some cases ALDI’s products are 30% cheaper than those offered by its competitors. ALDI can do this because the business operates so efficiently. ALDI has operated in the UK since 1990, and now has over 500 stores in the UK and Ireland employing in excess of 20,000 people. ALDI’S POLICIES: ALDI does not have a clear defined Vision and mission statements, however it has clearly defined policies based on which it could create its competitive position in the market. ALDI’S Policies are based on ‘What if a grocery store challenged the typical retail business model?’ALDI’s business model enables to provide the customers the highest quality products at the lowest possible prices. This value stems from the numerous efficiencies and innovations instituted at every level of ALDI’S operation. The following are the cost saving strategies that ALDI adopts: * Customers bring their own bags or buy our reusable bags to save money ...
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...Table of Contents 1.0 Marketing environment analysis-Micro trends……………………….2 1.1 Competitors……………………………………………………………………3 1.2 Customers………………………………………………………………………4 2.0 Marketing environment analysis-Macro trends………………………5 2.1 Demographic………………………………………………………………....5 2.2 Technological…………………….……………………………………………5 3.0 Marketing Mix-Evaluation and Critique……………………………………6 3.1 Overview of current marketing approach……………………….6 3.2 Evaluation of Effectiveness……………………………………………..6 4.0 Marketing Mix-Redesign…………………………………………………………7 4.1 Product…………………………………………………………………………..7 4.2 Price……………………………………………………………………………....7 4.3 Place……………………………………………………………………………....8 4.4 Promotion………………………………………………………………….…..8 4.5 Physical evidence……………………………………………………………8 4.6 Processes……………………………………………………………………..…9 4.7 People……………………………………………………………………….……9 5.0 Recommendations…………………………………………………………………10 5.1 Recommendation one…………………………………………………..10 5.2 Recommendation two…………………………………………………..10 Reference List In this day and age, business is a vital element in modern society. Marketing plays an important position in business strategic. The aim of marketing is to create value for customer and capture value from customer in return (Kotler & Armstrong, 2012, p.26).The first foundation stone was laid in 1913 with the opening of a small food store in the German town of Essen. It didn't take long for this little 'service store' to become a popular place to shop. In 1954, a celebration was held...
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...strategies for Aldi Introduction of Aldi Aldi is a leading retailer with over 8,000 stores worldwide. Since opening its first store in Germany in 1913, Aldi has effectively established itself as one of the highly regarded retailers in the international business market. Aldi’s main marketing objective is to grow its market share around the world. Its emphasis is on providing high quality products and excellent value for customers. Aldi offer customers a smarter way to shop. Aldi.com states that they promise to “provide our customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices.” Aldi is a strong supporter for the environment, health and nutrition. Aldi always sources fresh fruit and vegetable produce from local growers. Aldi is expanding as many new stores have been established in suburbs where the cheaper groceries are of great value to the community such as the Introduction of Aldi in Toukley where a good quantity of the population includes the elderly people where they can have access to groceries that suit their budget. Below is from https://corporate.aldi.com.au Aldi brief Company Portfolio In the US alone approximately 1220 stores in over 30 states and the estimated sales revenue generated from all the stores in 2013 was US $7.9 billion. In Germany 3000 Aldi stores are located as Germany and over 70% of German households shop at Aldi and Germany was the origin of Aldi but Aldi has continued...
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...Introduction ALDI is a German discount retail chain which has entered the grocery market in Australia since 2001. ALDI provide low prices but high quality groceries to consumers. Although there are two major retail grocery chains which are Woolworths and Coles in Australia, ALDI has becomes another force by its low price products. This critique will analyse both micro and macro marketing environment. It will then demonstrate the current marketing approach of ALDI in Australia and redesign its marketing mix by 7Ps. The last, it will outline several recommendations. 1 Marketing Environment Analysis – Micro Trends 1.1 Trend One: Competitors A firm need to provide more consumer satisfaction than its competitors if it desires to be successful. Therefore, marketers need to modify the market strategy for the target customers. Each company should consider its position and size which are compared to its competitors (Kotler & Armstrong, 2012, p. 92). ALDI, the German discount store chain, intended to enter Australia market in 2001, they have to attract Australian customers’ attention and encourage consumer to purchase products in ALDI (ALDI, 2013). There are two major competitors of ALDI, including Woolworths and Coles, they have been occupied the top of Australian retailers for few decades in Australia. In addition, Australian brands are lack the capability of competitive and Australia was a monopoly market until 2005 (Ritson, 2013, para. 6). For this reason, ALDI must have more...
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...Aldi Supermarkets Marketing Report 1 Contents Contents and Appendix Executive Summary Audit and explanation of the business and its current customer related marketing strategy. The Four P’s Identifying and recommending new marketing objectives Corporate and Social Responsibility Initiatives Recommending new marketing objectives The Marketing of Halal in the United Kingdom Recommending new marketing objectives Company Rebranding Initiative Recommending new marketing objectives Conclusion SWOT Analysis References Insert 1.0: Marketing and Selling Models Insert 1.1: Needle. D Model Insert 1.2: New Organisational Structure Insert 1.3: Porters Five Forces Model (1980) Insert 1.4: Porters Generic Forces Model Insert 1.5: Ansoff’s Matrix Insert 1.6: Twelve-Month Marketing Plan: Gantt Chart 2 3 5 5 8 9 10 11 12 12 13 14 16 21 28 29 30 31 32 33 34 Notes to the Examiner: All additional information is stored in the Appendix The word count excludes the following: I. All references and bibliographies II. All references to diagrams and tables. III. All content within tables IV. Labels and titles of tables and diagrams V. The Learning Outcomes as Titles VI. The Contents Page VII. All content on page 2, 3 & 4 All Harvard referencing in this assignment is from the formatting illustrated in the Anglia Ruskin University document. http://libweb.anglia.ac.uk/referencing/harvard/htm I would like all ‘Inserts’, which have been placed within the main assignment to be included in...
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...1 Aldi Supermarkets Marketing Report 2 Contents Contents and Appendix 2 Executive Summary 3 Audit and explanation of the business and its current customer related marketing strategy. 5 The Four P’s 5 Identifying and recommending new marketing objectives 8 Corporate and Social Responsibility Initiatives 9 Recommending new marketing objectives 10 The Marketing of Halal in the United Kingdom 11 Recommending new marketing objectives 12 Company Rebranding Initiative 12 Recommending new marketing objectives 13 Conclusion 14 SWOT Analysis 16 References 21 Insert 1.0: Marketing and Selling Models 28 Insert 1.1: Needle. D Model 29 Insert 1.2: New Organisational Structure 30 Insert 1.3: Porters Five Forces Model (1980) 31 Insert 1.4: Porters Generic Forces Model 32 Insert 1.5: Ansoff’s Matrix 33 Insert 1.6: Twelve-Month Marketing Plan: Gantt Chart 34 Notes to the Examiner: All additional information is stored in the Appendix The word count excludes the following: I. All references and bibliographies II. All references to diagrams and tables. III. All content within tables IV. Labels and titles of tables and diagrams V. The Learning Outcomes as Titles VI. The Contents Page VII. All content on page 2, 3 & 4 All Harvard referencing in this assignment is from the formatting illustrated in the Anglia Ruskin University document. http://libweb.anglia.ac.uk/referencing/harvard/htm I would like all ‘Inserts’, which have been placed within the main assignment...
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...made by ALDI Stores 10 June 2014 1. Introduction ALDI Stores Australia welcomes the opportunity to make this submission to the Competition Policy Review (the Review). Since ALDI opened its first stores at Marrickville and Bankstown Airport in January 2001, our rapid growth has meant that an estimated 4.2 million people shop with us in an average four-week period 1. Our arrival in Australia has helped redefine the retail landscape, introducing a new and higher quality standard in private-label groceries. In focussing relentlessly on delivering exceptional quality products, matching that of the market leading brands but at prices significantly lower, ALDI provides a unique alternative to the Australian consumer. Our strong sales growth is testament to customers voting with their feet and embracing the very fact that we offer something different. Despite ALDI’s successful establishment in Australia over the last 13 years, the fact is that our expansion has been considerably slower than planned due to regulatory constraints. These take the form of rigid and overly-prescriptive land use planning and zoning rules at state and local government levels that have resulted in a chronic shortage of suitably zoned land for small format supermarkets in many built-up areas. The direct consequence of this significant barrier to expansion is that fewer Australians are able to benefit from the competition, lower prices and innovation that ALDI offers. ALDI has been consistently...
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...made by ALDI Stores 10 June 2014 1. Introduction ALDI Stores Australia welcomes the opportunity to make this submission to the Competition Policy Review (the Review). Since ALDI opened its first stores at Marrickville and Bankstown Airport in January 2001, our rapid growth has meant that an estimated 4.2 million people shop with us in an average four-week period 1. Our arrival in Australia has helped redefine the retail landscape, introducing a new and higher quality standard in private-label groceries. In focussing relentlessly on delivering exceptional quality products, matching that of the market leading brands but at prices significantly lower, ALDI provides a unique alternative to the Australian consumer. Our strong sales growth is testament to customers voting with their feet and embracing the very fact that we offer something different. Despite ALDI’s successful establishment in Australia over the last 13 years, the fact is that our expansion has been considerably slower than planned due to regulatory constraints. These take the form of rigid and overly-prescriptive land use planning and zoning rules at state and local government levels that have resulted in a chronic shortage of suitably zoned land for small format supermarkets in many built-up areas. The direct consequence of this significant barrier to expansion is that fewer Australians are able to benefit from the competition, lower prices and innovation that ALDI offers. ALDI has been consistently...
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...Objective The objective of this report is to focus on the concept Training and Development in HRM” and examines in more detail some of the theoretical advantages and disadvantages of Training and Development strategies in HRM followed by a critical review on the evidence based around what impact it has had in practice in terms of promoting and enhancing business performance. While we cannot ignore the importance of HRM theories in today’s management context, this paper explores whether these theories work well in practice. Introduction The key purpose of HRM is to enable management to enhance the individual and collective contributions of people to the short and long term success of the enterprise. (Personnel Management Lead Body, 1993) The workplace is in a constant state of change resulting from ongoing developments in technology and innovation and increasing economic, social and political pressures. This poses new and complex challenges for the human resources function within organisations. (Hathorn, 2012: 3). In today’s competitive global business climate, companies looking to improve their gross margins and increase productivity are increasingly looking for ways to boost employee performance and effectiveness. People in an organization are considered to be one of the most valuable resources of today’s firms. Other resources such as brands, products, processes, technological advancement, economies of scale can still provide a competitive advantage but an organisation’s...
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...BFF 5902 Introduction to risk principles Assignment 1 AS/NZS/ISO 31000:2009 HB 436:2004 Table of contents 1.0 Introduction 1 2.0 Statement of case 1 3.0 Identification and classification of risks 1 4.0 Risks analysis 2 5.0 Risks evaluation 4 Competition 4 Reputation 4 Stock turnover and financial leverage 5 Quality assurance 6 Performance of employees 6 Payment system interruption 7 Supplier and natural disaster 7 6.0 Risk register 7 7.0 Risk treatment 9 Risk treatment schedule 9 Risk treatment action plans 10 8.0 Recommendations 11 9.0 Conclusion 12 10. References 13 1.0 Introduction According to AS/NZS ISO 31000:2009, risk management consists of 6 components which are establishing context, identifying risks, analyzing risks, evaluating risks, treating risks and monitoring and reviewing risks. It could help create and protect value, improve decision making and explicitly solve uncertainty. In this report, Woolworth Limited will be the business case to be discussed. The report will start with classifying, then analyzing and evaluating relevant risks, followed by a risk register, risk treatment plan as well as the treatment action plan. Recommendations and conclusion will also be given at the end. 2.0 Statement of case Woolworth Limited is an Australian corporation which was established in 1924 in Sydney. It is now one of the largest supermarket chains with more than 3,000 stores located in Australian and New Zealand...
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...The Strategic Evaluation of Lidl’s within the UK Market. Submission Date: 26 January 2014 Contents Introduction 3 1. Analysis of the competition faced by Lidl within the UK food retail industry 4 2. The Strategic position of Lidl 5 2.1 Porter’s Generic Strategies 5 2.2 Bowman’s Strategic Clock 6 3. An analysis of the external business environment and how it affects Lidl 7 3.1 PEST Analysis 7 3.1.1 Political 8 3.1.2 Economic 8 3.1.3 Social 8 3.1.4 Technological 8 3.2 Porter’s Five forces Model 9 3.2.1 Threat of New Entrants 10 3.2.2 Threat of Substitutes 10 3.2.3 Bargaining Power of Suppliers 10 3.2.4 Bargaining Power of Buyers 10 3.2.5 Competitive Rivalry within the Industry 10 4. How Lidl adds value to its strategic position 11 5. The sustainability of Lidl’s strategic position 13 6. Conclusion 13 7. Bibliography 14 Introduction The purpose of this report is to carry out a strategic evaluation of the hard discount food retailer Lidl. It will cover the following key items • An analysis of the competition within the food retail industry and the strategic position of Lidl; • An analysis of the external business environment and how it affects Lidl; • An analysis of how Lidl adds value to its strategic position; This will allow for a discussion of how sustainable Lidl’s strategic position is and conclude where Lidl is likely to progress within the UK grocery sector. Research from on-line literature, books and journals...
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...[pic] TRADER JOE’S Description: Trader Joe’s has become a multi-billion dollar national chain partly through its ability to find cheap real estate, skip name brands and smartly manage its supply chain. It’s also due to its workforce management practices. Below, excerpts from a book Trader Joe’s Adventure, review the company’s management compensation, encouragement of multitasking, screening and wages, careful use of money, fun culture, sense that its people are its brand, and communication style. Learning Objective: Our focus with this case is on immersing students in the fundamentals of organizational culture. Organizational culture is defined as a complex set of shared beliefs, guiding values, behavioral norms, and basic assumptions acquired over time that shape our thinking and behavior; they are part of the social fabric of the organization—its genetic code. As such, culture drives the organization and guides the behavior of everyone in that organization—how they think, feel, and act. In other words, the culture forms a behavior template. Davis and Landa succinctly captured the essence of culture when they say, The factors which define culture are in part internal, deriving from the unique character of the organization and, in part external, determined by the background and experiences managers and employees bring to the enterprise. Culture is a major determinant of productivity; it shapes organizational responses to external pressures; and suppresses or enhances...
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...IES184 P-1071-E 0-606-009 Aldi: A German Retailing Icon “The next Wal-Mart?” Cover story on Aldi, Business Week, April 26th, 2004 “I love my Aldi – good quality at rock-bottom prices. Why do I need ‘brands’ when all they do is rip you off?” Long-time Aldi customer, driving a BMW “Discount means to leave away everything that is unnecessary.” Dieter Brandes, former Aldi executive Introduction In 2005, Aldi, a German-based grocery store chain, was turning heads throughout Europe, Australia and the United States with its rock-bottom prices, efficient store operations and growing global network of limited assortment stores. Founded in the German town of Essen, with antecedents dating back to 1946, Aldi had revenues of €37 billion ($44 billion US)1, This case was prepared by Jordan Mitchel, Research Assistant, under the supervision of Professor Marc Sachon, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. October 2005. This case was written with the support of the CIIL (International Center for Logistics Research), IESE. Copyright © 2005, IESE. To order copies or request permission to reproduce materials, call IESE PUBLISHING 34 932 534 200, send a fax to 34 932 534 343, or write Juan de Alós, 43 - 08034 Barcelona, Spain, or iesep@iesep.com No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or...
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...Course Content Overview Topic 1 Introduction to Strategic Management Accounting Strategy Analysis & Formulation Topic 2 Topic 3 Analysing the External Environment Performance Measurement & Management Topic 5 Measuring Performance and Project Value Responsible Resource Management Topic 4 Analysing the Internal Environment Topic 6 Developing and using a Balanced Scorecard Topic 8 Managing Customer Value and Relationships Developing Strategy Topic 7 Measuring Organisational Value and Integrated Reporting Topic 9 Managing Supplier Relationships and Strategic Outsourcing Topic 10 Being a Responsible Topic 12 Corporate Citizen and Managing Sustainably Topic 11 Conclusion: Managing Strategic Risks and Shared Value Creation 3 Topic 3: Required and recommended readings, and case materials Required readings: – Reading 3.1: Grant, R., Butler, B., Orr, S., and Murray, P.A. 2014. Contemporary Strategic Management: An Australasian Perspective (2nd Edition), Milton, QLD: John Wiley & Sons, Chapter 5: Industry Analysis, pp. 153-173, 174-176. Case study – Business Press 3.1: Press pack with Aldi Australia–related articles, 2014-2015, Sydney Morning Herald [download from Moodle] – NB: The following case materials from prior weeks are assumed knowledge: • Case 1.1: Van den Steen, E., and Lane, D. 2014. Aldi: The Dark Horse Discounter. Harvard Business School case [download from Moodle] • Case 2.1:...
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