The specific environment factor analysed for Aldi’s is that of the strategic partners. The specific environment for an organization is the factors within the organizational operational environment. This includes groups, individual that the organization will have to work with as part of its direct business operations. Suppliers are usually considered as the strategic partners of organizations. In the case of Aldi’s, the Australian Food news report states that Aldi is planning for an ambitious expansion from 2014. As part of the ambitious strategy, Aldi was planning to establish around 200 stores in the State. In the context of expansion, strategy and change management must be planned. Existing strategic partners who are the specific environment of Aldi’s will have to be revamped. The strategic relationships must be improved.
In the past, Aldi demonstrates a very strong supply chain relationship. “It has a strong reputation amongst industry practitioners for the robustness of its supply chain. Its limited number of lines means that it is often judged as ‘best-in-class’ and whilst it is not high tech, it is incredibly lean, with every product a best seller and great on-shelf availability” (Fmcg, 2016, para. 5). However, in more current times there have been product recalls suggesting that there are some aspects in its supply chain that needs more improvement. This is an issue of the specific environment.
“In the acquisition process, perhaps the most important activity is selecting the best supplier from among a number of potential vendors. The buying process is complex because various actors must be considered when making such a decision” (Stock & Lambert, 1983, p. 281). Now Aldi’s in the context of its more recent expansions, which would have been expanded to include more suppliers. So, supplier acquisition process would have to be carefully managed by Aldi’s. In its management structure, input must be taken from those managers that work with the strategic partners like suppliers. The manager’s input would help in realizing mistakes or issues with existing suppliers. And these issues could be avoided in the acquisition of the newer suppliers. As Boeker (1997) stated it is the chief management and executive team combined with the managerial team that can bring about strategic change for organization. In the situation of Aldi, the managers input will be discussed by top level executives to implement the right change for Aldi’s.
Aldi’s brand reputation will suffer if the issue is not corrected. Strategic partner collaborations have to be improved by collecting inputs from the respective managerial decision makers.
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