Process of strategic management comprise of process involving strategic implementation, planning and evaluation. It is required by every organization to have a statement of purpose. Statement of mission provides viewer what the organization sees as purpose. Mission statement of organization involves market, customers, concern for public image, philosophy, concern for growth, survival and profitability, services, products and self-concepts (Peppard and Ward 2016).
Aldi is a common brand of discounted retail supermarket stores and is regarded as low price grocery leader. They provide a focused range of high quality products at best price to customers. The mission of Aldi is to provide customers with incredibly high quality grocery goods at lower prices or discounted prices. Cost leadership are achieved in market due to their highly efficient operations and this leads to optimizing their profit. Business approach of organization is based on three core values that is simplicity, consistency and responsibility. Products are supplied to customers at lower price due to their unique business model. Aldi has 10000 stores across world with its very first store opened in year 1913 (Corporate.aldi.com.au 2017). In Australia, Aldi opened a debut store in year 2001 and it expanded by building its presence throughout Queensland, Victoria, New South Wales, South Australia and opening 470 stores. Aldi has its own exclusive brand philosophy that has helped in positively influencing the quality and perception of private label goods and grocery prices. It was the first organization to introduce a number of market leading initiatives in Australia.
Discussing specific environment of Aldi:
Specific environment of organization comprise of group, organizations, individual with whom organization interact while conducting their business activities. The performance and operations of organization is directly and immediately affected by specific environment factors. Specific environment of most of organizations include competitors, suppliers, customers, employees, labor market, government agencies, industry regulators, strategic partners and interest groups. Stakeholders is often described term of specific environment of organization. Interest of all major stakeholders is considered by managers’ high performing organization while taking decisions. This provides organization with several benefits such as successful innovations, environmental changes, greater organizational flexibility and improved predictability that would help in reducing the impact of change (Hill et al. 2014).
Specific environment of organization
(Source: Robbins et al. 2013)
Customers- Customers can be regarded as the organizations or suppliers that in exchange of money acquire goods and services. Needs and wants of customers influence the type, quality of products produced by organization. Customers buying high volume of product are able to influence the price of products and leads to customization of services and products.
Suppliers-Suppliers are the organization to individual who assist organization in carrying out their operation by providing raw materials and input. Some of the input supplied by suppliers include financial resources, physical resources, informational resources and business resources. Availability and cost of inputs, the suppliers determine their quality, and they are able to influence the services and products of organization (Robbins et al. 2013).
Competitors- Competitors are entities with whom organization compete in terms of resources. They may comprise of best strategic partners, government agencies. Competitors influence products and services offered by organization (Grunig 2013).
Strategic partners- They are organization who work with other organization for mutual benefit. Organization are able to combine resources, share ideas, spread risks and learn from each other by working closely with their strategic partners.
Interest groups- Business activities are influenced by interest groups in specific areas such as ethical conduct and impact on environment. Interest of members are served by organizing the interest groups and they are generally organized as profession, industry, specific social issue and geographic locality (Tedeschi 2013).
Aldi has a broad range of cross sections of suppliers ranging from niche producers to major manufacturers. Suppliers are provided with product specifications that are benchmarked against market leading household brands. Organization believes in importance of developing equitable and fair relationship with suppliers and they do not compromise on quality. They always look for ward of developing relationship with new suppliers.
Some of strategic partners of Aldi includes ZenithOptimedia and they form partnership with leading brand to produce owned goods. Aldi ensures that quality products are supplied to customers at best prices. Responsibility of organization is to intrinsically link customers with nutrition and health in all the products offered to them (Robbins et al. 2013, pp 34-41). They go beyond mandated legal requirements such as minimizing the potential harmful impacts of products offered, meeting the recognized standards of safety and health and nutritional benefits maximization.
Corporate social responsibility and ethics of Aldi:
Corporate social responsibility of organization intends to go beyond their economic and legal obligations and engaging in activities that are considered good for society. It is expected by society that organization should act in a socially responsible and ethical way. Stance of socially responsible and social obligation corresponds with purely economic view that profit maximization is organization’s only social responsibility. Responsibility of management goes beyond maximizing profits to producing socio economic view on social responsibility. Ways in which society are affected by operating activities are considered by organization when they actively consider social responsible actions. When looking at being socially responsible, organization are required to evaluate whether their economic performance are affected by social involvement (Carroll and Buchholtz 2014).
Competitive and social consequences of social involvement are the main consideration of organization. Furthermore, ethical imperative can be added by organization’s being social responsible. Three steps are involved that leads to organization behave in an ethical way. This involves defining the problem that are intended to be solved, stakeholders identification influenced by decision and determination of ethical principles. It is required by organization to recognize how the stakeholders are affected by ethical decisions (Monczka et al. 2015).
Ethical behavior is defined solely on consequence of outcomes as per utilitarian view of ethics. On other hand, ethical behavior is defined as behaviors that respects and protects the liberty and privileges of individual as per rights view of ethics. Several factors effect unethical and ethical behaviors within an organization. Organizational characteristics influences the ethical behavior within organization and this involves structure of organization and culture of organization. Mangers can influence ethical behavior within organization by employing high ethical standards. Ethical actions can be fostered within organization by establishment of ethical code of conducts that helps in implementation of protective mechanisms and providing ethical training to employees facing ethical dilemma (Robbins et al. 2014, pp 52-59).
Corporate social responsibility of Aldi is defined as the range of obligations that organization has towards society. The responsibility of Aldi is to serve community continuously. It is essential on part of organization to act upon on social obligations to wider community and customers being a top ten Australian retailer. Production of goods are with respect of workers and environment. One of the integral part of operating activities and decision-making process within organization is being socially responsible. The principles of corporate social responsibility is key pillars of being socially responsible. A binding framework for all the activities of business partners, suppliers and employees is represented by corporate social responsible principles in every area of operations (Monczka et al. 2015). Carrying out operations with due regard for environment, people, nature would help in achieving long-term success of organization.
Being an international company, ALDI Australia is committed and obliged to do lawful conduct and act responsible. Factors contributing to economic success of company is recognition of the fact that organization a large part of society and maintenance of high standards of corporate social responsibility. Overarching global commitment to values and business ethics are defined by corporate social principles. Ethical and legal behaviors is defined by code of conduct that defines core principles that is applicable to employees worldwide. Business interest with competitors and strategic patterns held by internal employee involving any risk of professional conflict of interest are not permitted by organization. Employees for avoiding such conflicts must disclose any potential conflict of interest should disclose with supervisors or higher level of management. ALDI Australia does not tolerate any act of bribery under any circumstances. Assurance of products quality is an integral part of all operational activities and Aldi aspires to provide customers with best value in market and highest quality products at lower prices. Quality and safety standards of organization considerably exceed the relevant legal requirements. Organization act in accordance with compliance and committed to fair principle competition for protecting competition (Zurich 2017).
Describing internal culture of Aldi:
Internal culture of organization can be defined as shared values, principles and tradition that influences the way member of organization behaves. It relates with interaction of organization with environment by dealing with key issues such as handling opportunities of environment, threats that can prosper and survived by organization and managing and integrating activities within organization. Culture of organization can be defined by encompassing seven dimensions and personality of organization is shaped by emphasizing one cultural dimension over other. Mission and vision of organization is affected by culture of organization (Deresky 2017).
Corporate culture of Aldi is referred to as collective understanding of members of company. Organization has a strong culture that helps in controlling the internal culture by considering that trust is basic element of task delegation. Ritual of experimenting within organization depicts that organization seeks best solution for every problems. Profile of Aldi is to serve the quality products at lower price to customers. There are certain discipline that are considered as stick to things and resisting temptations is considered big improvement. Commitment to goal is underpinned by implementation of strict faith in customer orientation. Culture of Aldi can be classified by six dimensions that involves process oriented versus results oriented, job oriented versus employee oriented, tight control versus lose control, professional versus parochial, pragmatic versus normative and closed system versus and open system (Robbins et al. 2013, pp 42-44). It has been ascertained that organizational culture of Aldi is that it has a totally closed system, result oriented, job oriented and there is implementation of tight control within company. Moreover, Aldi carry all its duties in a way that is parochial rather than professional.
This section of report involves solving quiz “Right Organizational culture for me” and gaining personal insights into the adoption of organizational culture that is best fit for the chosen organization. Understanding culture of organization helps in encouraging teamwork, stifling initiatives and rewarding innovation. Culture of organization that would be best depends upon assessment of mangers by interviewing them. Seven statements would be indicating level of agreement and disagreement using scale. There are seven primary dimensions of culture of organization and this involves risk taking, innovation, and outcome orientation, attention to detail, team orientation, stability and aggressiveness. For two statements, scores would be reversed and the total score would range from 7 to 35. Scoring 21 or lower would indicate that managers of organization are more comfortable working in formal, mechanistic, structured and rule oriented culture. This type of features is mainly associated with government agencies and large corporations. Lower score would indicate strong preference for this particular type of culture. On other hand, score above 22 indicate that managers are comfortable working in flexible, informal, innovative and humanistic culture.
After the quiz is conducted, the scores received by interviewer is 21 and this is illustrative of the fact that managers of organization would prefer rule oriented culture and they are comfortable working in formal and structured organizational culture. There is a difference in culture of organizations and it becomes essential to match the personal preferences of employees with the prevailing culture. Adoption of well-structured culture would assist organization in organization the tasks that helps in delivering best quality products to customers. A particular communication approach would be adopted in light of rule-oriented culture that helps in competing efficiently with their strategic partners. Behaviors of stakeholders within organization are facilitated by adoption of mechanistic approach (Fayol 2016). Formal structure would assist in well integrating and engaging employees. Therefore, adopting a rule oriented, formal, mechanistic, formal and well-structured culture are considered as best organizational fit for Aldi. Organizational structure of Aldi provides with leadership approach that helps in fostering a new culture of doing business that will enable them in embracing diversity, professionalism and overall success of organization (Robbins et al. 2013, pp 46-47).
Aldi is a retail grocery organization that ensures producing customer with high quality products at discounted price. Organization has been witnessing strong growth in sales and year on year growth has been recorded. However, there was a fall in operating profits despite rise in sales. Relationship with suppliers has helped organization in proving best quality products to customers. When it comes to price, Aldi is regarded as market leader, operation of organization at international level is highly efficient, and successful that has helped in making organization economically strong. They are able to maintain strategic alignment with then implementation of low cost business model and building strategic activities with their partners and suppliers. For retaining the share of market, it is required by organization to integrate the strategic sustainability plans and continuous development of target market. In order for organization to thrive continuously in Australian market, they are required to modify their internal culture suiting the needs and expectations of stakeholders.
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