ALDI - business assignment PDF

Preview

Summary

business assignment...

Description

MANAGEMENT PROCESS AND SYSTEMS IN ALDI

ALDI 2

Introduction ALDI is a multinational grocery distribution shop. The acronym ALDI is a representation of two brands of grocery shops (ALDI Nord and ALDI Sod). The company has over ten thousand stores that spread across Europe America and New Zealand. A recent study conducted by Forbes showed that the multinational company has an annual turnover of over fifty billion dollars. The multi-billion firm has its headquarters center in Germany. ALDI traces its roots from Essen, Germany where two brothers decided to found the company. The two brothers, Theo and Karl Albrecht formerly worked in the mother’s store based in the same town starting from the year 1913. Twenty-three years later, they decided to expand the business into other shops and succeeded. However, in 1960, the two brothers decided to split up their business due to a disagreement on whether to sell cigarettes in their stores. The 50-50 split resulted in the formation of ALDI Nord which is located in upper Germany and has its headquarters in Essen and ALDI Sud which operates in Southern Germany and has its base in Mulheim. By the end of 2015, both branches had close to two hundred thousand employees on a global; scale (Abdelazim et al. 2013, 868). This essay will outline a management process standard in the grocery chain stores. Further, the article will evaluate the management proves. The composition will also provide a detailed description of a management system for implementation and how this method will be efficient in the chosen company (ALDI). Conclusively the essay will give a comprehensive list of the management skills found within the management system and process. Management Process A management process that spans across the stored owned by ALDI is the performance management process. The performance management system is the system is a

ALDI 3

mannerism implemented by the enterprise to involve all the workers/employees both as singular individual’s and also as teams in bettering the effectiveness of the business by accomplishing the goals and mission of ALDI. This process also helps the company to structure, investigate and analyses decision that is critical to the survival of the organization and improving the communication between employees and their bosses. The performance management process in the company also assists in helping create somewhat of a partnership between the employees and their respective store managers. This process involves several activities that include: •

Opening and closing the business within the recommended business hours. All ALDI

stores pen between the peak hours that is between 8 AM/ 9 AM to 9 PM. These are the peak hours of which most shoppers do their shopping. By insisting on such protocols, the company is assured that it will spend less money on overhead charges and also on extra employee shifts during the wee hours of the night. Most retail stores such as Walmart insist on operating on a twenty-four-hour basis throughout all the days of the weeks. However, most shoppers are seen during the peak hours and reduce in number as the night ages hence they spend more money on keeps the stores open for no apparent reason. At around 2 AM shoppers can be less than ten in number in an entire store (Metzger 2014, 20). •

The checkout rate in all ALDI stores is forty times faster than other grocery stores. This

means that customers get to check in and out of the store faster while shopping in ALDI than in other regular stores. A couple of reasons contribute to this rapid rate such as the conveyor's belts installed at the cashiers’ stall than help the shoppers unload their goods as the cashier continues to scan them without any delay. Secondly, the goods in its stores have barcodes stuck all over them. The cashier can, therefore, hold up the groceries to the scanner

ALDI 4

at any position without adjusting the holding position, and the scanner will identify the item instantly. The item has several barcodes on them compared to the items sold in competitor stores. The fast rate translates to more customers served within the hour and therefore ALDI receive more customers within the peak opening hours resulting in more sales and a higher profit margin (van Rompay et al. 2016, 89). •

The ALDI stores also offer goods at a reduced price in comparison to its competitors.

Their goods are close to 25% cheaper in caparison to grocery store chains such as Walmart. In addition to the lower prices, the stores also provide quality goods that are tested before they are displayed on the food stands. The corporation goes to greater lengths in testing the quality of goods that they sell in their stores and have even dedicated an entire department to the testing of food. In a week, the corporation tests close to one hundred and eighty different types of foodstuffs. Furthermore, some products even receive more than one review testing annually to ensure that the products still maintain high quality. In the testing kitchens, the employees test the different foods, and once they receive full approval, they’re ready to be sold in the store. These two strategies ensure that the customers know that the store only sells quality food at a reduced and affordable price (van Rompay et al. 2016, 89). •

Further ALDI insists on employing minimal employees in its various outlets. They ensure

that there is sufficient staffing in the multiple stores and to ensure employee satisfaction the wages and the pay to the employees are adequate. In every store, there are only four positions that fill every branch. The employee positions include the store manager and his assistant, the store assistant and the caretaker of the store. The duties assigned to these job positions are diverse because of the caretaker, for instance is in charge of keeping the store in a presentable state. The store assistant, on the other hand, has various duties that vary

ALDI 5

from being a cashier to stocking the shelves of the store. In every store, the minimum and the maximum number of employees is ten. The corporation is, therefore, able to save on wages and at the same time can pay all its employees a fair wage for the hours they work. Management system A management system is a set of policies, activities, and processes that an organization must implement to achieve individual goals and achievements that go hand in hand with the mission that a corporation aims to accomplish. ALDI being a multinational corporation needs an excellent and diverse management system that covers all departments and fields that are concerned with the prosperity of the firm (Chung 2015, 2015). The management system will focus on the occupational health of the workers otherwise known as an occupational health system (OHS). The set of processes in this system will ensure that the welfare and health of all workers involved in the corporation are assured and implemented. The parties involved in this initiative are the employees, the immediate family of the employees, suppliers and the customers. In assuming the needs of all these stakeholders, the company is assured of realizing financial growth and stability. For the implementation of the OHS to be successful, the company needs to come up with a PDCA (Plan Do Check Act) model. A PDCA model is a plan that ensures that the implementation of a project goes as planned without any hiccups. Management System Implementation To ensure that the company assures its customers of the quality of its products, it should conduct more testing reviews on all the products that they intend on selling in their stores. The thoroughness of the tests will not only reassure the public that the corporation

ALDI 6

plans to sell the highest quality of goods at its customers at a lower price but will also ensure that the company avoids lawsuits due to the selling of substandard products. Also, the company can announce open days where the customers can be allowed into the labs and witness the testing of these goods on a first-hand basis. Such initiatives will go a long way in increasing the rating of the company in the eyes of the public and thereby increase sales. Increased sales will translate to high-profit margins. Further, the corporation should distribute a memo to all its suppliers stipulating that the use of certain additives in foods will lead to an instant ban on the buying of their goods. These additives include food colorings that are responsible for increasing the number of cancerous related ailments in the globe. Since ALD aims at looking after the best interests of the consumer, the move will go a long way in proving this claim. Also, the corporation should send memos to all its suppliers specifically the suppliers involved in providing groceries to cease from the use of any herbicide and pesticides that may be associated with the death of certain insects vital to the ecological system of the world. Such insects include beats and ladybirds that also add to the beauty of the universe. To ensure the welfare of all its workers is held to the highest standards, ALDI should introduce a system that helps all its employees to save up just in case of a health emergency. The initiative includes the corporation opening a kitty which will be filled with money retracted from the monthly and weekly wages of the workers. The funds subtracted will be minimal but will assure the worker that if faced with the dilemma of a medical emergency, they will have a place where they can get the money to cater for the health needs. The company should also invest in the education of its employees to inform them of the advantages of a life cover and even to have a savings account. Further, the company should

ALDI 7

provide its workers and uniforms and also hairnets to ensure the highest standards of health of the products sold to the customers. The workers shouldn’t be asked to work more than twelve hours a day for seven days. The minimum number of days should be six days, and each worker should be awarded a free day in every week. If a worker chooses to work overtime, he or she should be paid the wages to cover the overtime worked. The welfare of the customers too shouldn’t be left to chance. Loyal customers can be awarded gift hampers as a sign of the corporation appreciating their loyalty. The customers can be given cards with microchips that track the spending of the consumer on goods sold in the ALDI stores. For instance, for every ten dollars spent, the customer can be awarded n ALDI point that is redeemable on products sold in the shops. The more points a customer has, the more significant their probability to receive gift hampers from the chain stores. Management skills There is a list of management skills associated with the implementation of this management system. Some of these management skills include: •

Conceptual skills. These conceptual skills help the manager to be focused on their

personal goals as well as achieving the company goals. The manager will make a good leader as well as a good manager because he/she will have the ability to add the company to greatness while still establishing professional ties within the corporation. • •

Managerial skills. The person also charged with implementing this management system will gain critical

human skills. Human skills include good communication skills where a person gets to be both a leader and a friend to the employees he is charged to manage.

ALDI 8

• Additionally, the person will gain technical skills. Technical skills include techniques that one gains through experience as they work in their designated job posts. Conclusion and recommendations Conclusively, when ALDI decides to implement the said management state, it is bound to experience more sales and profits. The management system recommendation is focused on keeping all counterparts in the enterprise happy. The company will motivate its employees by keeping their health in mind. Further, the business will gain loyal suppliers who will ensure the providence of quality goods. Finally, the sale of quality goods will buy the loyalty of its preexisting and new customers.

ALDI 9

Bibliography Abdelazim, A.A., Mahmoud, A. and Ramadan-Hassanien, M.F., 2013. Oxidative stability of vegetable oils as affected by sesame extracts during accelerated oxidative storage. Journal of food science and technology, 50(5), pp.868-878. Chung, F., 2015. The Supermarket switch is on as Aldi takes top award in customer satisfaction. Business retail July, 21, p.2015. Metzger, K., 2014. Business analysis of UK supermarket industry. van Rompay, T.J., Deterink, F. and Fenko, A., 2016. Healthy package, healthy product? Effects of packaging design as a function of purchase setting. Food quality and preference, 53, pp.84-89....