...Prepared by AE-2011 Resources and Capabilities 1.1 Financial Resources & Capabilities During the period from 2007 to 2009 total sales went up 8.13% which is a strong performance. Most contribution is driving from domestic sales (i.e. German operations). 2007 Turnover (€m) Total turnover growth (%) Grocery Sales Density (euro/sqm/wk) Number of Stores Sales Area (‘000 sqm) 41,818 +3.9 2008 45,183 +8.0 2009 45,221 +0.1 121 121 116 8,515 6,645 9,065 7,153 9,430 7,499 ALDI financial resources seem to be strong since that the group is operating without loans from banks and long-term liabilities over years. Increased sales in 2010 lead to the conclusion that ALDI’s financial position will continue to be strong. The ALDI-brothers are the richest Germans in 2008 (each owning a fortune of @ 17 billion € {Welt Online, 2008}). 1.2 Human Resources & Capabilities ALDI operates a highly developed system of decentralization allowing flat hierarchies and fast promotion prospects. A high level of authority for managers is encouraging to e more entrepreneurs increases motivation. A minimum number of staff is working at high speed in stores. Store managers have to be hands. The few number of staff (about 4 persons per store), allows above-average salaries (regional managers: monthly salary of 6000 € and company car) {Meffert. C. 2002}. Managers are only appointed out of own ranks, making sure the expertise they’ve won over years stays in-house and company’s pbjectives are...
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...hiring of the necessary equipment, supplies, resources and services in order to sell them in retail outlets or use them within production (http://www.prospects.ac.uk/retail_buyer_job_description.htm). A buying plan is a guide or a road map for the buying department that outlines goals and details of how the department will achieve those goals (BusinessDictionary.com). Following the immediate challenge for the ‘Like Brands’ by Aldi to increase its market share for the from 2.3% to 2.5% and encouraging customer loyalty, the department has come up with a well detailed buying plan that will help Aldi to achieve its goals. The plan constitutes the following: * Situational analysis * Objectives of the plan * Need recognition * Information search * Purchase specifications * Supplier sourcing * Tendering * Supplier selection * Cost minimisation strategies * Awarding of contracts * Contract close out 2.0 Situational analysis It is the process of identifying and evaluating existing internal and external elements that may impact an organization's ability to achieve its objectives. A situational analysis also includes a SWOT analysis which is an assessment of the organization's strengths, weaknesses, opportunities and threats (http://www.investorwords.com). A situational analysis is a critical review of Aldi’s current business situation. It serves as a starting point for our buying plan. Aldi’s current situation is as follows: Aldi is a...
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...TITLE: INDIVIDUAL CASE ANALYSIS NAME: DENIS MONEGHETTI (2661864) UNIT CODE: 2010, TP1: BUMGT 5926 UNIT NAME: STRATEGY AND MANAGEMENT OF CHANGE TUTOR: DR. ABDUL MOYEEN WORKSHOPS: WEDNESDAY 1730HRS – 2030HRS DATE SUBMITTED: FRIDAY 19 MARCH 2010 ALDI IN AUSTRALIA INTRODUCTION Since opening its first Australian store in 2001 Aldi has expanded considerably in the supermarket area by taking a healthy percentage of the retail grocery market. It currently has over 200 stores in Australia and is now be approaching 10% of the market (Aldi, 2010). It has a unique business strategy and should continue to have an impact in the Australian market. This paper explores its current and future business strategy and potential expansion into other States and Territories. CURRENT BUSINESS STRATEGY According to Hill, Jones, Galvin and Haidar (2007) competitive advantage is “when a company is able to outperform its rivals, as commonly measured by the attainment of profits above the industry norm”(p. 96). This can be more simply stated as ‘keeping one step ahead of the rest’. Critical to this is creating customer and company value. A successful company will create a business strategy based on its strengths to provide competitive advantage. This is demonstrated. Hill, Jones, Galvin and Haidar (2007) In the case of Aldi, competitive advantage is obtained predominately through radical efficiencies without compromising...
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...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 ambition than Woolworths and Coles; the company takes decision to provide consumers with lower prices than those two competitors also influences the prices of grocery. 1.2 Trend Two: Consumers Consumer plays an important role in the microenvironment of a company. In recent years, most Australian customers have shown their insufficient loyalty to local brands and adapted to foreign brands...
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...NAME: MITCH B. MENDEZ DATE: NOV. 26, 2015 CASE STUDY: ALDI 1. How does ALDI’S strategy lead to competitive advantage? How does the company achieve this strategy? * A competitive advantage is one that distinguishes a firm or a business from the competitors in the minds of the customers. It also refers to the state or condition that make a business more successful than the businesses it is competing with, or a particular thing that makes it more successful such as having a higher sales through offering low or affordable goods and services. Most of the businesses operate in competitive markets: businesses have to take on and see of rivals or competitors.ALDI, a grocery discounter is one of these businesses or companies. ALDI uses a low cost strategy through providing good quality products at affordable prices. So, ALDI’s strategy certainly and absolutely leads to a competitive advantage for through a low cost strategy it can lead to a strong market share for the reason that the main target of most of the consumers are those products with high quality offered at low price. It can also stimulate a greater demand towards the consumers: the reason why most of the customers or consumers are attracted to it. In addition, despite the low cost that they are offering their customers or consumers, quality is still not compromised with the amount which attracts the customers the most. Another is that goods and services...
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...Abstract In the summer of 2013, I received summer employment in one of the many manufacturing facilities the company, ALDI, utilizes in the southern United States. As a junior employee, I was tasked with analyzing the utilization of current resources and find the superlative combination of the resources available. However, as an undergraduate student, I had not studied mathematical formulas that would allow me to find the optimal solution. In this paper, I will use both linear optimization and goal programming to take a number of sets of data to analyze and discover the optimal use of various constraints of resources. The paper will be divided into three different sections with a specific method applied in the first two sections, and a final section to describe the possible errors in the solutions presented in the prior two sections. In the first section, I will use linear optimization to take various sets of resources and distribute them appropriately among various products to find the best allocation to achieve maximum revenues. Linear optimization is the name of a branch of applied mathematics that deals with solving optimization problems of a particular form.1 Put simply, linear programming is finding the best outcome possible using a linear mathematical model. The constraints are linear inequalities of the variables used in the cost function. This method is the best available and of the most use given the present goal of achieving the maximum revenue possible for the company...
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...update the information i.e. you are required to know the competitive situation and the internal functioning of Starbucks to October 2013. 3. You are allowed to prepare a single A4 sheet, double-sided, TYPED. Attach this sheet to your answer script. Please DO NOT attempt to reproduce everything you have written down on the A4 sheet in your answer. The A4 sheet is a SUPPORT not a CRUTCH!! 4. To help you answer the exam questions, I suggest you include data on: a. the external environment, cochlear implant industry and closely-related concentric industries and competitive environments.e.g. market share, value of market, major players, rates of change, growth rates; b. Internal analysis to determine organisational capabilities, core competencies 5. The 2-hour exam will comprise 1 section, with a choice of 2 questions. You will answer one of these 2 questions, not both. If both are answered, the answer that appears first will be marked. 6. Q1 looks at the competitive environment and asks you how to resolve a critical competitive issue where you need to devise real world solutions grounded in theory. What is your solution, and more importantly, show how your solution is viable given the firm and the environment. 7. Q2 asks about the appropriateness of a directional strategy. A course of action is suggested. Should Cochlear adopt this course of action or not? Why or why not, given the state of the external environment and the firm. 8. Study advice: ...
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...Strategies to Fight Low-Cost Rivals * Nirmalya Kumar From the December 2006 Issue * Strategies to Fight Low-Cost Rivals Strategy & Execution HBR Article Executive Summary Reprint: R0612F Companies find it challenging and yet strangely reassuring to take on opponents whose strategies, strengths, and weaknesses resemble their own. Their obsession with familiar rivals, however, has blinded them to threats from disruptive, low-cost competitors. Successful price warriors, such as the German retailer Aldi, are changing the nature of competition by employing several tactics: focusing on just one or a few consumer segments, delivering the basic product or providing one benefit better than rivals do, and backing low prices with superefficient operations. Ignoring cut-price rivals is a mistake because they eventually force companies to vacate entire market segments. Price wars are not the answer, either: Slashing prices usually lowers profits for incumbents without driving the low-cost entrants out of business. Companies take various approaches to competing against cut-price players. Some differentiate their products—a strategy that works only in certain circumstances. Others launch low-cost businesses of their own, as many airlines did in the 1990s—a so-called dual strategy that succeeds only if companies can generate synergies between the existing businesses and the new ventures, as the financial service providers HSBC and ING did. Without synergies, corporations...
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...over rivals. In addition, since ICA tends to integrate quantitative and qualitative analysis more than other courses, you will have the opportunity to apply knowledge and skills you've gained across the curriculum (e.g., from finance, ISOM, Marketing, O&M, and Strategy). Building Competitive Advantage The broad focus of the course is on building competitive advantage with special emphasis on how firms can gain access to new resources or capabilities that may grant a competitive edge. We explore strategic investments that are required to compete effectively in uncertain and turbulent environments. Managers often throw up their hands and argue that planning isn’t useful when the landscape is shifting rapidly. However, with the right set of tools, strategic management can have an even greater impact in this setting. We place special emphasis on competitive advantages that stem from valuable and hard-toimitate resources or capabilities. Accordingly, we will focus much of our energy on the question of how to build, acquire or ally to gain access to such capabilities while maximizing the value that accrues to the company. Given the uncertainty inherent in such investments, we will explore how real options analysis may assist managers in making strategic investments of this type. Learning Objectives Our primary goal is to synthesize the set of tools and knowledge students have gained to address challenging strategic management...
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...According to Mauborgne et al (1999) the focus of most organisations is on matching and beating their rivals, in view of this their strategies is about covering the same basic dimension of competition. Organisation of such share an inherent set of views about the way they compete in their industry or in an assembly that is strategic. A conventional wisdom is shared about who their customers are and their value, the level of quality of products and services they should be offering. Thompson and Coe (1997) suggested that competitive advantage that is sustainable is acknowledged as a factor that is critical for survival in the turbulent environment of the 1990s. They opined that most organisation strive to exist and at the same time aim to have a market share that is considerable in making a profit, the means to be more marketable is not by selling existing goods or services but by creating a brand name that is distinctive for itself.. However, for us to have a better understanding of the question, I would be examining the UK grocery industry with particular reference to Tesco plc and ALDI GMBH. Rivals organisations try to outperform one another thus ending up competing solely on basis of incremental improvements that is either in cost or quality. Striving to capture attention and retain their customers, the strategies of supermarkets varies between price wars, innovation and loyalty schemes. According to Harvey (2000) the developments in the UK supermarkets of recent...
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...Dublin Institute of Technology ARROW@DIT Conference papers School of Hospitality Management and Tourism 2011 Trends in the Food and Beverage Sector of the Hospitality Industry Detta Melia Dublin Institute of Technology, detta.melia@dit.ie Follow this and additional works at: http://arrow.dit.ie/tfschmtcon Recommended Citation Melia, D.:Trends in the Food and Beverage Sector of the Hospitality Industry. EuroCHRIE Conference, Dubrovnik, Croatia, October 2011. This Conference Paper is brought to you for free and open access by the School of Hospitality Management and Tourism at ARROW@DIT. It has been accepted for inclusion in Conference papers by an authorized administrator of ARROW@DIT. For more information, please contact yvonne.desmond@dit.ie, arrow.admin@dit.ie. This work is licensed under a Creative Commons AttributionNoncommercial-Share Alike 3.0 License Paper Title: TRENDS IN THE FOOD AND BEVERAGE SECTOR OF THE HOSPITALITY INDUSTRY Detta M. Melia School of Hospitality Management and Tourism Dublin Institute of Technology Cathal Brugha Street Dublin 1 Detta.melia@dit.ie Key Words: Trends, Food and Beverage Sector, Hospitality Industry, Drivers for Success 1 Abstract The hospitality sector in Ireland represents an important part of the tourism industry and comprises hotels, restaurants, pubs and clubs, guesthouses and self-catering operations. The largest component within the Irish hospitality sector is hotels. In addition to hotels, food and beverage operations...
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...Strategic Marketing Plan Q2 2004 – Q4 2007 Page 1 of 89 DECLARATION We hereby certify that this assignment contains no material which has been accepted for the award of any other degree or diploma in any university or equivalent institution, and that to the best of our knowledge and belief, contains no material previously published or written by another person except where due reference is made in the text of this assignment. Viraj Perera Sara Russell Ingrid Szikla ID: 18877095 ID: 18481183 ID: 13034715 Page 2 of 89 EXECUTIVE SUMMARY This strategic marketing plan specifically addresses Uncle Tobys Ready to Eat (RTE) Breakfast Cereal products in Australia over the time period starting from the second quarter of 2004 and ending fiscal year 2007 (1/10/2004 – 30/6/2008). This plan takes into account and builds on new marketing strategies for Uncle Tobys resulting from the take-over by Burns Philp in the USA. Uncle Tobys is a leading brand of Goodman Fielder, which is a division of Burns Philp Company Ltd. Until 2002, Uncle Tobys had the second greatest share of the RTE market by value with 20.3% in 2001, but has since slipped to third place at 15.9% in 2003 and is now behind Sanitarium (17.2%) and Kellogg’s (55.4%). Contributing factors were issues such as high debt and lack of effective IMC strategy. However, it is anticipated that efficiency gains from the new organisational structure will come into fruition during 2004-05, and Burns Philp’s...
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...growww.businessmonitor.com Q4 2010 AUStrALiA food & drink report INCLUDES 5-YEAR FORECASTS TO 2014 iSSn 1749-2580 published by Business Monitor international Ltd. AUSTRALIA FOOD & DRINK REPORT Q4 2010 INCLUDING 5-YEAR INDUSTRY FORECASTS BY BMI Part of BMI’s Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: July 2010 Business Monitor International Mermaid House, 2 Puddle Dock, London, EC4V 3DS, UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2010 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors...
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...Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills as well as the Super Bowl and NASCAR trophies. A cultural icon—its Tiffany Blue color is even trademarked—Tiffany has survived the economy’s numerous ups and downs through the years. With the emergence in the late 1990s of the notion of “affordable luxuries,” Tiffany seized the moment by creating a line of cheaper silver jewelry. Its “Return to Tiffany” silver bracelet became a must-have item for teens of a certain set. Earnings skyrocketed for the next five years, but the affordable jewelry brought both an image and a pricing crisis for the company: What...
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...382 PART 5 SHAPING THE MARKET OFFERINGS ter p ha C 14 In This Chapter, We Will Address the Following Questions 1. How do consumers process and evaluate prices? 2. How should a company set prices initially for products or services? 3. How should a company adapt prices to meet varying circumstances and opportunities? 4. When should a company initiate a price change? 5. How should a company respond to a competitor’s price change? As a high-end luxury goods provider, Tiffany & Co. knows the importance of preserving the integrity of its prices. Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills...
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