aldi organisational life cycle

Topics: Aldi, Management, Entrepreneurship Pages: 5 (1843 words) Published: November 13, 2013


Organisation Theory

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Organisational life cycle is extremely important for an organisation to understand and to be able to apply it to each of the products or services that it provides. I will discuss how the organisational life cycle applies to the company Aldi and I will also use concepts and theories from this module to support my answer.

Aldi is a global discount supermarket chain providing good quality food and drink products to customers at a low cost price. Everything Aldi does is focused around giving its customers value for money. Through being efficient and cutting costs Aldi invest profits back into the business which helps to reach the companies goals and objectives. Aldi’s competitors are supermarkets such as Supervalu, Dunnes, Tesco but their main competitor is Lidl as they have the same business approach and are the most alike as a company. Aldi most importance aspects that they maintain include three core values simplicity, consistency and responsibility. Aldi shops portray a simple design and all shops are very similar which creates consistency. Responsibility is an important aspect of all areas of the business, from training and developing employees to drive the business forward as part of continuous improvement, to taking an active role in its supply chain to ensure continuous improvement. Aldi production is not just about reducing costs for the business. It is also about passing these savings on to its customers to offer value for money. These efficiencies show how they run there day to day operations and how they perform. Continuous improvement – a culture where all employees are constantly involved in making improvements to quality of the business. Just-in-time production – materials are received just as they are needed. Time based management – an approach that aims to reduce the time wasted in business operations. This usually requires a multi-skilled and flexible workforce. Total quality management (TQM) – a quality assurance ideal where all workers have a responsibility for getting it ‘right first time’ Aldi mission is to maintain and provide its customers with quality products at prices that provide value for money. Aldi’s success is shown by the fact that it is expanding rapidly. They are opening new shops and experiencing sales growth that requires it to take on more staff. Aldi expects new recruits to make an immediate contribution to the business. They also provide training so that they can develop their careers within the company. Aldi has entry levels for apprentices, store assistants, deputy managers, assistant store managers, trainee store managers and graduate trainee area managers. (http://businesscasestudies.co.uk/aldi/)

Goals and good management practise
To promise their customers quality products at the best possible price. They share this goal with their suppliers to put customers first. To provide product quality which includes includes consumer safety, health and well-being. To minimise both the resource intensity of their products and the negative environmental impacts of their production To make commitments to reducing the environmental impact of the business To maintain their growth rate and keep expanding, opening more stores Introduce new technologies to cut energy use such as solar power and heat capture.

Aldi’s main goal “To promise their customers quality products at the best possible price” is what the business operates around. This is what drives their management team and operations team to strive and meet this goal and to find ways to keep improving this. Aldi have spent time in making the company an environmentally friendly business they are committed to reducing the environmental impact of the business in the following ways: Continuously reducing the carbon footprint

Maximising the energy efficiency of Aldi
Meeting leading global standards for green buildings
Reducing, reusing and recycling...


References: Benefits of lean production - Competitive advantage through efficiency - Aldi | Aldi case studies, videos, social media and information | The Times 100. 2013. Benefits of lean production - Competitive advantage through efficiency - Aldi | Aldi case studies, videos, social media and information | The Times 100. [ONLINE] Available at: http://businesscasestudies.co.uk/aldi/competitive-advantage-through-efficiency/benefits-of-lean-production.html#axzz2htMjOW41. [Accessed 12 November 2013].
Reducing costs and eliminating waste - Competitive advantage through efficiency - Aldi | Aldi case studies, videos, social media and information | The Times 100. 2013. Reducing costs and eliminating waste - Competitive advantage through efficiency - Aldi | Aldi case studies, videos, social media and information | The Times 100. [ONLINE] Available at:http://businesscasestudies.co.uk/aldi/competitive-advantage-through-efficiency/reducing-costs-and-eliminating-waste.html#axzz2htMjOW41. [Accessed 12 November 2013].
Basic Overview of Organizational Life Cycles | eHow. 2013. Basic Overview of Organizational Life Cycles | eHow. [ONLINE] Available at:http://www.ehow.com/about_6540051_basic-overview-organizational-life-cycles.html. [Accessed 12 November 2013].
Company Evolution & the Organizational Life Cycle. 2013. Company Evolution & the Organizational Life Cycle. [ONLINE] Available at: http://www.product-arts.com/articlelink/1246-company-evolution-a-the-organizational-life-cycle. [Accessed 12 November 2013].
Institutional theory - Wikipedia, the free encyclopedia. 2013. Institutional theory - Wikipedia, the free encyclopedia. [ONLINE] Available at:http://en.wikipedia.org/wiki/Institutional_theory. [Accessed 12 November 
Lecture notes from organisation theory. Organisational life cycle notes pages 1-3. Chapter three notes page 4 slide 23 for introduction.
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