Andre Dawson

Business Policy
MAN 4720 11:00am-12:15pm
2/8/11
Aldi Foods Inc.
Corporate Strategies 2012-2014
Any economist will tell that in a changing environment the society or more specifically

those who operate within the society will have to change with the environment to survive. This

ideal is one that is fixated within the corporate arena, where changes in the environment cause

companies to make ongoing adjustments to their corporate structure and more importantly their

corporate strategies.

In an effort to make Aldi Foods Inc. more sustainable in our ever changing environment,

I have identified several strategies that will capitalize on their strengths, improve upon their

weaknesses, avoid external threats and take advantage of their external opportunities. Today’s

society expects a number of things from companies that operate within it. But one of the most

important and fastest growing expectations is for organizations to be socially responsible.

Environmental factors have come to the forefront with global warming and the high levels of

material waste in existence on earth. On this front, Aldi has already taken the initiative to be

responsible and not use plastic bags in any of their stores globally. However, not many

individuals know that they do this or even know who they are. Therefore, my first suggestion

would be to run a number of strategic advertisements demonstrating their high level of social

responsibility, appealing to the majority of consumers as well as increasing brand recognition

around the globe. Moreover, states like California have really taken hold to several go green

initiatives where the majority of grocery chains operating within this state require their

customers to bring their own bags or purchase recyclable bags at checkout. Currently Aldi only

operates in 31 states and I would defiantly suggest California as being the 32nd.
 Andre Dawson
Business Policy
MAN 4720 11:00am-12:15pm
2/8/11
They could increase market share by expanding into a state that already embraces their

company ideals, thus providing them with a strong target customer base. It’s also important that

Aldi find affordable real estate locations with a number of new tax regulations being

implemented and state and local governments transferring the burden of their budget deficits

over to corporations. To help service these new store sites a number of new distribution centers

would alleviate product distribution congestions and facilitate more effective product delivery to

stores, thus eliminating inefficiencies in the distribution channel and tremendously affecting the

Aldi’s bottom line.

Also, targeting new customers as well as maintaining relations with existing ones will be

key in maintaining a sustainable competitive advantage in the market place. Aldi must

demonstrate their ability to deliver top quality products much like their competition. Since Aldi

only uses private label brands it is imperative that they distinguish themselves among

competitors. One way to do this is to develop a strategic product comparison promotion,

exhibiting how the quality of their private label brands stacks up to national brands and in most

cases is manufactured through national brand suppliers. That being said, an expansion in product

variety and selection may be the next necessary step in order to remain competitive. As of now

most shoppers are not able to fulfill all of their shopping needs at Aldi stores; an expanded

product selection would aid in meeting customers entire shopping needs. Also, some Aldi stores

currently do not provide beer or wine where the majority of others in different locations do. This

creates inconsistency and unreliability in the eyes of the customer. Therefore, I would suggest

that when products are offered in one store they should be offered in all others.
 Andre Dawson
Business Policy
MAN 4720 11:00am-12:15pm
2/8/11
Currently in order for a customer to use a cart at Aldi they must distribute a quarter into

the cart dispenser which will be refunded to them upon their returning of the cart. It can

cumbersome for customers to have to remember to bring spare change with them when headed to

the store. For that reason I would encourage Aldi to eliminate this policy and make carts

available to the customer at will.

In terms of Aldi’s management structure I would employ a strategy that would provide

store managers with more flexibility and responsibility. As of now, district managers are in

charge of the hiring and firing at Aldi markets rather than store managers. Seeing as though store

managers are in constant and more frequent contact with store associates I would make a change

in the corporate managerial strategy and give store associate hiring and firing responsibilities

over to store managers. This change would give district managers the ability to focus specifically

on the ongoing operations of the business and ever changing climate of the retail environment.

Lastly, with Aldi Foods having operations around the globe I would consider issuing an

IPO or Initial Public Offering to help with corporate capital investments and infrastructure. Aldi

is a growth company with a strong financial background and with that combination there will be

a number of investors eager to claim their stake within Aldi.