The success of Aldi - 1904 Words

Aldi’s business Report 1 Executive summary This report presents a business case study of Aldi, to examine both internal and external factors that drive Aldi to the current successful position in the UK highly competitive grocery market. The report contains the PESTLE, which analyses external factors affecting Aldi’s business strategy. Furthermore, the report will discuss the essential business strategies; include the cost-leadership and price strategy, which helps Aldi to obtain competitive advantages. In addition, the report will point out the internal process as the main managerial model to Aldi. At the end of the report, it will recommend the ways to increase sales, in particular online sales. Introduction Aldi is†¦show more content†¦Strategic analysis 4 Under the divisional organizational structure with flat management, Aldi has high level of centralization, which is easy to achieve effective decision-making process, and costleadership. As Aldi expressed (2010), its organizational structure does lack of bureaucracy, its straightforward structure leads all employees to focus on delivering quality and value to customers. Figure 1 (source adapted from Aldi official website (2013) Lean production is the major business strategy for Aldi to obtain success, this means to gain more output with less input. (Times 100 business studies) 5 Just in time control Kaizen Total quality management L Lean production Figure 2 (source adapted from Stimpson, P(2002)) Under the lean production approaches, a number of factors are essential to the process for Aldi to adapt. 1, Kaizen, a corporate culture that involves continues improvements in product quality. This Japanese culture requires all the employees to develop new idea and suggestions to improve the organizational behavior. Aldi does encourage employees to be innovative, good performance and talents are recognized early and often. (Aldi 2013) 2, Just in time control The technique of Just in Time control enables Aldi to obtain a high level of inventory management. It requires no buffer stocks are held, products arrives just they are needed on sales. (Stimpson,P 2002)Show MoreRelatedThe Critical Success Factors Of Aldi763 Words   |  4 Pages A study on the Critical Success Factors of ALDI focusing on The Buyer Behavior and Involvements Module Dissertation Researcher Kalamba Mbungu Date 08-July-2016 Student Number 21306194 Module Code Module Leader: Dr Alex Pietrus This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice Read MoreAldi Runs And How It Maintains Its Success2151 Words   |  9 Pages Foreword So what is good about Aldi? What is it that they do different which make them so successful? In this report I hope to give the reader a better insight into the way Aldi runs and how it maintains its success. 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According to the companyRead MoreMarketing Strategies Of Aldi And Waitrose1277 Words   |  6 Pages By Ben Thorpe Contents 1) Title Page 2) Contents 3) Introduction 4) ALDI 5) ALDI 6) ALDI 7) Waitrose 8) Waitrose 9) Mind Map 10) References (Harvard Referencing Style) (Please note: Task 1, 3 4 have been combined together into one report. Task 2 is separate and can be found on page 9) Introduction This report will examine, compare and evaluate the marketing strategies of both Aldi and Waitrose supermarket chains. The report is divided into 9 pages with no appendices