Essays on Strategic Management and a Stakeholder Approach Case Study

Download full paperFile format: .doc, available for editing

The paper 'Strategic Management and a Stakeholder Approach' is a good example of a  Management Case Study. The food industry in Australia is a competitive one. More so than ever, retail supermarkets are required to give their consumers value for their money (Bonn, 2007). Consumers in Australia have been seen to need the best quality food merchandise at lower prices. With such a tough competitive environment in the food industry, it is important for supermarkets to understand what their customers want (Hanson and Hitt, 2011). ALDI supermarket understands its customers want value for their money but at the same time, not to compromise on their product quality. Since its inception, ALDI supermarket has established itself as a reputable brand in global markets including Austria, Germany, the U. S., and Australia (Zott & Amit, 2008).

“ The retail chain has over seven thousand stores in different parts of the world” (Bonn, 2007). What differentiates ALDI from other supermarkets is its competitive pricing strategy and still, the supermarket is able to maintain the high quality of its goods (Bonn, 2007). In fact, in some cases, the ALDI’ s products have been found to be 30 percent cheaper than those offered by other retail chains. Although the business environment is good for the retail sector in Australia, competition is also high ever than before (Bonn, 2007).

Many large corporations such as Carrefour, Woolworths, and Wal-Mart, etc, are competing for expanding both the local and international markets by implementing every strategy at their disposal. ALDI retailer is very simple and small compared to Woolworths and Wal-Mart retail chains regarding store occupancy, sell products, etc (Bonn, 2007). However, the retail chain survived in this strong competitive environment and become one of the well-known retailers that can compete with other large corporations (Bonn, 2007).

Therefore, based on ALDI in Australia, this paper will analyze the approach ALDI should use in order to maintain its strategic competitiveness and level of growth in light of competition that the retail industry is facing. Strategic management and strategic competitiveness Strategic management is a continuous process which organizations use to establish their worn objectives and goals and analyze their external and internal business environment, thus, the company is able to choose one or more strategies to use in order to create value for their customers and benefit other stakeholders (Hoetker, 2007).

Any business should set its corporative strategy so that it can be able to define its business and where the business is projected to go in the future. On the other hand, business strategy is seen as an important part of the business’ s overall strategy (Zokaei & Simons, 2006). Strategic management is a key determinant of the overall business performance because it includes a series of procedures and actions that help the business to decide how to compete and create a competitive advantage (Freeman, 2010). For instance, the business strategy that has been adopted by ALDI supermarkets can be said as simple but very effective (Bonn, 2007).

ALDI’ s core business concept has been the reduction of its production cost in every means. For example, the retail chain has in the past specialized on staple products and use its lower pricing strategy to attract customers, and this has helped the retail chain to increase its sales and achieve more profits returns (Zokaei & Simons, 2006).

ALDI supermarket is featured with high efficiency and effective management and operation that is based on a cost reduction strategy. All its stores in different parts of the world have one thing in common, simple designs and decorations, thus the retail chain has managed to minimize some of its operating costs (Bonn, 2007).



Bonn, I. 2007, ALDI in Australia. School of Business, Bond University

Birkinshaw, J. & Hood, N. & Young, S. 2005, ‘Subsidiary entrepreneurship, internal and

external competitive forces and performance’, International Business Review, vol.14,

no.2, pp. 227-248

Freeman, R. E. 2010, Strategic management: a stakeholder approach, Cambridge University

Press, London.

Hoetker, G. 2007, ‘The use of models in strategic management research: critical issues’,

Strategic Management Journal, vol.28, no.4, pp. 331-343

Hitt, M. & Ireland, R. 2012, Strategic Management Cases: Competitiveness and Globalization,

Cengage Corporation, New York

Nag, R. & Hambrick, D. 2007, ‘What is strategic management: inductive derivation of a

consensus definition of the field’, Journal of Strategic Management, vol.28, no.9, pp.


Porter, M. 2008, ‘The five competitive forces that shape strategy’, Harvard Business Review,

vol.86, no.1, pp. 25-40

Zott, C. & Amit, R. 2008, ‘The fit between product market strategy and business model:

implications for firm performance’, Strategic Management Journal, vol.29, no.1, pp. 1-


Zokaei, A. & Simons, D. 2006, ‘Value Chain Analysis in consumer focus improvement: a case

study of the UK red meat industry’, International Journal of Logistics Management,

vol.17, no.2, pp. 141-162

Download full paperFile format: .doc, available for editing
Contact Us