This website uses cookies to ensure you have the best experience. Learn more

Aldi Case Study

2161 words - 9 pages

Introduction
The food retail industry is a highly competitive market. More so
than ever, organisations need to offer customers value for money.
Customers want the best quality products at the lowest possible
prices. With such tough competition it is vital for organisations to
understand what their customers want. Aldi understands that its
customers want value for money but do not want to compromise
on quality. This case study will demonstrate how Aldi uses a lean
approach to its business operations to offer its customers quality
products at competitive prices.
Since opening its first store in 1913, Aldi has established itself as a
reputable retailer operating in international ...view middle of the document...

They can then be used to further
meet its business objectives for growth. Efficiency is not
something that is achieved overnight. Lean thinking is a
continuous process that constantly enables Aldi to improve the
way in which it meets its business objectives. This enables Aldi to
develop an ambitious investment programme to develop new
properties and suppliers as well as to provide benefits for
employees.
Curriculum Topics
• Lean production
• Reducing costs and
eliminating waste
• JIT
• Benefits of lean production
GLOSSARY
www.thetimes100.co.uk
Lean thinking: Using a series of ideas
to improve efficiency and quality while
reducing costs, time, space and effort.
Core purpose: Broad statement of
intent like a mission.
Business objectives: Outcomes that a
business seeks to achieve.
www.thetimes100.co.uk Aldi | Competitive advantage through efficiency 09
Competitive advantage through efficiency
Aldi’s
business objectives
Making Aldi
more efficient
Investing profits
back into the business
Developing
lean thinking
Lean production
Lean production is quite simply about getting more from less.
The aim of lean production is to reduce the quantity of resources
used in providing goods and services for consumers. At the same
time, it is about making the organisation more efficient. Lean
production involves eliminating waste and therefore using less
labour, materials, space and time. This in turn reduces costs.
However, for Aldi, lean 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.
Lean production is based on a number of efficiency concepts,
such as:
• Continuous improvement – a culture whereby all employees are
constantly involved in making improvements to quality
• Just-in-time production – materials are received just as they
are needed, eliminating the need to maintain large stock levels
• 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’
Although lean production is often considered in terms of
manufacturing, these principles can equally be applied to service
organisations. The principles of lean production are planned and
built into everything that Aldi does. This starts within its supply
chain. For example, up to 60% of Aldi’s fruit and vegetables are
sourced locally where possible, reducing the need for long and
costly delivery journeys. This demonstrates a time based
management approach. The principles of time based management
are also built into the training provided for Aldi’s employees. Training
enables Aldi to eliminate waste and cut costs. Through training staff
to do a variety of tasks around store Aldi can minimise its staff
requirements. This...

Other Papers Like Aldi Case Study

Management Essay

958 words - 4 pages -173, 174-176.  Case study – Business Press 3.1: Press pack with Aldi Australia–related articles, 2014-2015, Sydney Morning Herald [download from Moodle] – NB: The following case materials from prior weeks are assumed knowledge: • Case 1.1: Van den Steen, E., and Lane, D. 2014. Aldi: The Dark Horse Discounter. Harvard Business School case [download from Moodle] • Case 2.1: Grant, R., Butler, B., Orr, S., and Murray, P.A. 2014

Creating a Business Urban Outfitters Case Study

1109 words - 5 pages Urban Outfitters Continuing Case Study: Creating a Business Steve Jobs Introduction to Business Professor Mariatta Lewis July 31, 2011 Urban Outfitters Continuing Case Study: Creating a Business Starting a business can be very challenging. There’s always a positive and negative side to it and it’s not always easy. Entrepreneurs and business owners will always over come different challenges when setting up a business. Finances

Famous Amos

604 words - 3 pages marketing mix by identifying the best strategy or strategies that will allow them to satisfy the needs and wants of consumers. Marketers must develop a marketing strategy with clear objectives that will allow the company to “create a unique blend of the right product, sold at the right price, in the right place, using the most suitable methods of promotion” (BCS, n. d., para. 12). According to a business case study on Alidi, organizations can

Trader Joe's Case Study

841 words - 4 pages Case Study: Trader Joe’s In 1958, Trader Joe’s first began as a small convenience store named Pronto Markets. Trader Joe’s didn’t receive their Trader Joe’s name until 1967 when they opened up a store in Pasadena. Mr. Coulombe had transferred his stores into an oasis of value and started putting innovative, hard-to-find foods in the Trader Joe’s name. By doing this Trader Joe’s was able to cut costs and save you money. In 1979, Mr

Global Forces and the Western European Brewing Industry

1261 words - 6 pages Introduction The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological

Traders Joes

2041 words - 9 pages Case Study 1 Trader Joe’s Keeping a Cool Edge The average Trader Joe’s stocks only a small percentage of the products of local supermarkets in a space little larger than a corner store. How did this neighborhood market grow to earnings of $9 billion, garner superior ratings, and become a model of management? Take a walk down the aisles of Trader Joe’s and learn how sharp attention to the fundamentals of retail management made this chain

Walmart Retail Analysis

2127 words - 9 pages http://finance.yahoo.com/q?s=WMT&ql=1 http://www.macroaxis.com/invest/market/WMT--volatility--WalMart_Stores_Inc http://www.slideshare.net/lekshmik/walmart-innovations-case-study http://www.walmart.com/ http://instoresnow.walmart.com/Community.asp http://voices.yahoo.com/selecting-media-marketing-communications-walmart-4555933.html https://www.facebook.com/walmart http://wm5.walmart.com/walmart-moms/ http://www.pbs.org/wgbh/pages/frontline/shows/walmart/transform/cron.html http://www.slideshare.net/redwan999/operation-management-for-walmart

Mba Operations Management

2923 words - 12 pages : 1 Section 1: Introduction 2 Section 2: Literature Review 2 Section 3: Case Study Investigation 8 Section 4: Conclusion 14

Walmart's Global Strategy

3089 words - 13 pages | 2013 | | | [Case 6: Walmart's Global Strategy] | 604.800 International and Comparative Management | 1. Case summary 2006 was one of the years that marked the biggest retrenchment in Wal-Mart’s history. It was the year that Wal-Mart had decided to exit the German market after trying to penetrate it for about eight years. The company undertook its international expansion in the early 1990s to rejuvenate sales and growth

Unit 17 Marketing Intelligence

3172 words - 13 pages -consumer-purchasing.html Asong, Berlin, “Brand Loyalty| Repeat Purchase| Corporate Image|”, [Online], https://www.udemy.com/lectures/brand-loyalty-repeat-purchase-corporate-image-197251 Suttle, Rick, “Market Research Type”, [Online], http://www.ehow.com/info_7736833_market-research-types.html Types of Market Research: Case Study Barclays, [Online], http://businesscasestudies.co.uk/barclays/discovering-customer-needs-through-research/research

Strategic Development In Global Food Retail

3737 words - 15 pages Case Study – Strategy Development in the Global Food Retail Supermarket Industry Introduction In order to develop a global strategy, the deep understanding of the term ‘globalization’ is very important for every company. Globalisation: The globalization increases the mobility of goods. Globalization is a term describing different complex ideological, political, environmental and cultural forces as one world. During World War II, the

Related Essays

Aldi Case Essay

3301 words - 14 pages risk in the case of any negative perceptions that may exist of a particular product. If the entire product range was labeled as one brand, the negative views and criticism of a failed product may spread across all products, which may ultimately affect the image of the whole retailer. ALDI’s independent labeling strategy is essential as 95 per cent of its products sold are private brands (Nencyz-Thiel 2011, p. 629). Consumer perception of ALDI and

Aldi Stakeholders Analysis

2554 words - 11 pages the training to its employees and the employees should take this training very seriously. * Changing environment. The organization provide training according to the latest technology and knowledge * Human relationships. In case of conflict as one of the most condition in how the people deal with specially in work area, a training is necessary should be given to deal with human problems * Changing in the job task. When the same employee

How Does Aldi Compete Successfully With Other Supermarkets?

2274 words - 10 pages Title: How does Aldi compete successfully with other Supermarkets? By Jared Morisset Globe University Many may wonder how a smaller business can compete with a much larger business, but how does Aldi successfully compete in the grocery market with other major supermarkets? Competitive Environment They have eliminated most of the items that individuals take for granted in other supermarkets, such as shopping carts and grocery bags

Recruitment And Selection Essay

2701 words - 11 pages fill positions that can be completed quickly and with less company-specific skill required to complete the desired task. Other firms will use headhunters or hiring consultants to seek, screen and deliver employees for a fee. Using both internal and external recruitment can be used. This is often the case for senior management appointments. Benefits to Aldi for Internal Recruitment * Cheaper and quicker to recruit * People are already