Data Analysis Problem And Digital Operations In Aldi

About Aldi

Question:

Discuss Data Analysis Problem And Digital Operations?

Problem-solving is one of the most important activities that a business organization must undertake during its operations. Making decisions is however not an easy task as the team will have to decide on the strategies that can determine their way forward. Every business contains some data that can be statistically analyzed to give out information on both internal and external environments. Aldi is a good example of an organization that can be used to exercise the data mining methods and give a clear picture of the organization’s activities. Aldi makes a significant progress especially in Australia which means that there are also many issues that affect the business. The paper, therefore, focuses on addressing the stakeholder’s state in Aldi as well as the business decisions that come up from analyzing the whole situation.

Aldi (Albrecht Discount) is a multinational retailer that was first started in Germany around 1913 by the Albrecht brothers, Karl and Theo. The privately owned organization formed by giving discounts to its consumers and catering for the low-income earners. Their prices are therefore set in such a way that they maintain the loyalty of customers from all backgrounds (Gerhard 2005). Aldi deals with a variety of products including all types of groceries, fresh vegetables, and fruits, wines and spirits, many varieties of frozen foods and any other forms of household items.

Aldi, later on, split into two, Aldi Nord and Aldi Sud and the latter expanded into Australia, Switzerland and other countries. Aldi operations in Australia has to face stiff competition from other influential organizations like Wal-Mart who also deal with similar products (Brandes 2012.). The only defining factor that keeps Aldi on top of the game is the price setting and ability to give discounts to the consumers. Aldi has managed to form two companies, Aldi Pty Ltd and Aldi Foods, to increased their target customer base (Wortmann 2004.). Aldi foods happen to be Australian’s selected head of the tax group and are therefore in charge of making sure that all businesses pay the right amounts of taxes to the authorities.

Aldi is making great investments in Australia after discovering that the country is a great opportunity for the profits they were drawing from each of their stores. At the beginning of this year, the organization has invested a property of about $2billion in Australia to secure its market and maximize the profits as well (Bonn 2006. ). Aldi has 469 stores all across Australia and is ranked amongst the most profitable organizations with annual sales of approximately $10billion. Their primary strategy to beat the competition is by having sophisticated properties and investments that remove them from the spotlight of their competitors (Kleemann 2011.). Due to their might in the retail industry, Aldi has influenced the prices of products especially groceries. They have also changed the public’s perspectives on the quality of privately branded products.

Aldi's Operations in Australia

Aldi’s customers are usually assured of high-quality products at a reasonable and constant which do not vary according to seasons or the economy. Research also shows that the retailer avoids promotions as much as possible as they can increase the price of other goods in the name of promoting the other (Voigt 2017. ). Provision of variety and consideration of the prices is, however, the major aspect that Aldi strives to achieve. Unlike other supermarkets and retail shops in Australia, Aldi can offer organic and gluten-free foods at a low price that enables people to purchase in bulk (Brandes 2005. ). All stores based in Australia provides jobs for the locals and for that reason raises their living standards hence empowering their purchasing power.

The data above is only beneficial to the organization if they can analyze it and appropriately use it to make more profits and an impact in the society. Data mining methods would be appropriate in this case to ensure for the analysis of all factors that affect the business and finally come up with a decision (Brandes 2015. ). The stakeholder strategy is a consideration of all the parties that the organization cannot do without and make a thorough breakdown. Consumers, for example, should be categorized by their consistency, items of purchase, age, gender and other factors that can affect future turnout. According to (Bolton 2010) the pricing of their products is also something that the data mining processes should consider to ensure that internal forces do not negatively impact on the whole operation.

For instance, a package of organic spinach approximately 5-ounce in Aldi sells at almost 1 dollar less than in other supermarkets. The situation encourages more purchases on the same product and hence higher profits (Zentes 2007. ). They ensure quality as well as quantity to the extent that they can maintain their customers with less or no complaints.

The products above are all organic fresh foods that can also be found in other retail shopping outlets all around Australia. However, there is a sign that Aldi makes many sales in a day, but certain factors influence the consumer turnout (Vercellis 2011.). The price difference as compared to other supermarkets of spinach and beef is similar, but the number of customers and their frequency differs. A conclusion that can be made from the variations is that people prefer to buy meat in bulk and store it themselves while the vice versa is true for spinach. The number of times a similar number of consumers visits the store is higher for organic spinach. Milk has the lowest customers in a day, and that is definitely because of the small difference in price as compared to other retailers. The company can, therefore, ensure for quality and variety of milk to attract more customers. Lastly, yoghurt has a higher price difference, and due to the nature of the product, then the frequency rises (Ngai 2009.). Aldi should invest in selling instant and ready to eat food products as a way of attracting a larger consumer base and therefore increase their profits.

Data Analysis Methods and Stakeholder's Strategy for Aldi

The data on consumer information and that of the company are beneficial in so many aspects of the advancement of Aldi as well as the community as a whole. Getting information on the demographics of a company ensures that decisions made in each step of the way are a direct translation of progress. While making decisions on the factors affecting an organization, the data obtained from the activity can be reviewed to conclude. Aldi can be able to study its consumer behaviors, predict their future turn out and work on the forces to keep them (Hormozi 2004. ). The sales and marketing representatives can use this data to determine their decisions about advertising and product promotions of their items.

From the methods of analysis presented above, some of the factors that Aldi can consider while making their business decisions include consumer demographics, pricing, quality and quantity provision and quality services. Consumers are the most important stakeholders who influence the business’ output and hence the need to ensure that they stay in the most comfortable situations ever (Ahmed 2004, April. ). The prices of different products also determine the number of sales made in a year. Lower prices favor many customers, and that comes hand in hand with the quality produced. The quantity available in the supermarkets also encourages the consumers to shop more as they are sure of getting a variety of products under the same roof.

The management team is therefore in a position to make decisions depending on the information stated above. Consumer information is important in ensuring that the finance takes all the appropriate steps that protect the interest of Aldi (Bartlett 2003. ). It is also a way of ensuring that a company’s activities and internal environment are moving towards the positive direction.

As a researcher on the topic of Aldi’s case study, I have learned that the finer details of an organization’s structure matter a lot in its progress. The decisions that a company makes on the sectors of consumer satisfaction, business regulations and their responsibility to the society are crucial to its success or failure. I have a new mentality about the institution of business and its relation to the community (Loe 2000). The factor of society and business closely relate in such a way that one cannot do without the other. I have also learned new methods of analyzing data in an organization’s point of view to ensure that all factors that affect the body are put into consideration.

Factors to Consider for Business Decisions

The journey was however not as easy as I expected to judge from all the activities I had to go through to attain the data finally and analyze it officially. I had to search online and through journal articles to obtain the information that is required to explain the situation at Aldia. The process of data mining is also an issue that got me involved in the whole research paper to the extent that I consulted more than five sources on the same subject. These challenges are however the reason as to why I finally arrived at the conclusion that could help Alida in making better decisions in the near and further future.

I read through many scholarly sources that discuss the process and strategies of data mining methods. They gave more insight on the factors that Alidia should consider while putting across their decisions on all the issues affecting their operations. I would, therefore, suggest that any company should look deeper into their internal environment and resolve the issues that might affect their external environment. Priority number one should be the consumers and society as a whole who are in need of quality products as well as high corporate responsibility.  

Conclusions

Aldia as a retailer in Australia is making a great impact in the development of the economy as well as the expansion of its operations. The company operates on a low-cost budget that allows for consumer loyalty. Due to their low prices, they make the greatest part of the retailing business in the country. Their profits are also as high due to all the discounts offered to consumers on a daily basis. It is, however, becomes a problem when there is no constant flow of customers as they are selling at a low price and therefore might stagnate in their profits. Data mining methods are used to identify the issues facing Idla and enable the team to come up with better solutions for a better future. The organization should consider setting priorities right so that they will not suffer in the future due to their reduced prices in almost all the commodities.

References

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