Report on Aldi

Only available on StudyMode
  • Download(s) : 1337
  • Published : December 11, 2011
Open Document
Text Preview
TABLE OF CONTENTS

1. Summary……………………………………………………………………………3 2. Introduction ………………………………………………………………………...3 3. Competitive Priorities & Business Level Strategy …………………………………4 4. Performance Objectives …………………………………………………………….7 5. Importance Of Performance Objectives To The Organisation ……………………..8 6. Conclusion …………………………………………………………………………11 7. Reference List………………………………………………………………………12

Summary

In reference to this assignment, I selected the first topic which is; Use the 5 objectives of operations management (quality, speed, dependability, flexibility, & cost) to describe the operations strategies, how they are implemented & how they support the organization’s competitive or effectiveness priorities. Indicate the means of measuring the success of operations management (kpi’s). I choose to write a report on Aldi. In the following report, Operations management, strategy of operations management & its 5 performance objectives i.e. quality, speed, dependability flexibility & cost in Aldi will be discussed. Also, the major key performances (kpi’s) & Aldi’s competitive qualities in comparison to the other super markets will be highlighted with relevant tables & diagrams which have suitable explanation.

Introduction
Aldi, the first Australian grocery store was started in January 2001, with over 200 stores operating successfully across New South Wales, Queensland & Victoria. Aldi is an international limited assortment discount retailer specializing in assortment of private labels & high quality products. Aldi offers a range of products in its store, like every day grocery needs which includes- fresh fruits & vegetables, frozen goods, dairy products, meat, bathroom & laundry essentials & more. Aldi supports Australian producers & farmers; therefore it offers Australian grown food products in store. Every day Aldi caters for thousands of Australians who acknowledge the Aldi philosophy as a formula for success. (About Aldi Australia, p.1)

Competitive priorities & Business level strategy
Aldi is an international ‘limited assortment’ supermarket specializing in ‘private label’, mainly food products. It has carefully focused its services concept & delivery system to attract customers in a highly competitive market. The company believes that its unique approach to operations management makes it ‘virtually impossible for competitors to match our combination of price & quality’. Aldi operations challenge the norms of retailing. They are deliberately simple, using basic facilities to keep down overheads. Most stores only a limited range of goods. (typically around 700 when compared with 25,000 to 30,000 stocked by conventional super market chains). The private label approach means that the products have been produced according to Aldi quality specifications & are only sold in Aldi stores. Without the high price of brand marketing & advertising & with Aldi’s formidable purchasing power, prices can be 30 percent below their branded equivalents. Other cost saving practices include open carton display which eliminate the need for special shelving, no grocery bags to encourage reuse as well as saving costs, & using a ‘cart rental’ system which requires the customers to return the cart to the store to get their coin deposit back.(slack, chambers & Johnson, 2008). With the cost of food fast becoming a crucial factor in choosing a super market, who wins the battle between the biggest brands? That accolade goes to Aldi, who have walked away with most satisfied customer’s award for super markets. (CANSTAR super markets, p.1). Aldi beat Coles, IGA & Woolworths in this competition.

Tabular representation:
The following table shows customer satisfaction with Aldi when compared to the other super markets. BRAND| OVERALL| PRICE| SERVICE| PRODUCT VARIETY| BRAND RANGE| STORE LAYOUT| SPECIALS| | ALDI| | | | | | | | |

COLES| | | | | | | | |
IGA| | | | | | |...
tracking img