Please read the Aldi case (see syllabus for details) and answer the following questions. Submit your answers before the due date. Each of the four questions should be addressed and answered separately. Number your answers accordingly.
Please submit your answers as an attachment in MS Word. The exam is worth 25% of your final grade. The criteria for grading the exam include: 1) thoroughness and accuracy of information provided, 2) quality of strategic thinking and support provided for thinking, 3) specification of sources of information, and 4) clear and concise presentation of information (clearly written, appropriate images, graphs, data, etc). The length of your exam need not exceed five type written pages, excluding the list of references (five pages is not the goal; if you can answer each question clearly and completely in less than five pages, you should do so). Please insert tables and graphs within the report rather than as appendices.
Q1. Consider each of the six global revolutions emphasized in this course and the country you studied for your journal assignments. First, identify your country then analyze and discuss how each revolution will impact Aldi in your country over the next 10 years. (the country that was studied was Egypt)As you answer this question, consider all of Aldi’s product lines and assume that Aldi has a presence and competes in your country.
Q2. This question focuses on geographic markets other than the United States. Consider Aldi’s current and potential geographic markets (see Exhibit 4 of case) in light of the six global revolutions and Aldi’s aggressive goal for new store openings. Assume that Aldi could open these stores anywhere in the world. What geographic markets other than the United States hold the most promise for future growth? Why? Will future growth come primarily from expansion in current markets in Europe or from emerging and developing economies? Why? Use data to support your answer.
Q3. This question focuses on the United States as a market for groceries.
Considering your knowledge of the six global revolutions, who is better positioned for growth in the United States – Aldi or Wal-Mart? Why? Use data to support your position.
Considering Amazon’s acquisition of Whole Foods, who is better positioned for growth in the United States grocery sector – Aldi or Amazon? Why? Use data.
Q4. This question focuses on product lines. The case states that Aldi has doubled its product assortment in the U.S. from 700 SKUs in 2005 to 1,400 SKUs in 2014.
Considering your knowledge of the six global revolutions, does this expansion make sense? Should Aldi continue to expand its product assortment? Why or why not? What are the pros and cons of this expansion?
In either case (whether you favor the product line expansion or not), what specific product lines will account for the future growth of Aldi considering the global revolutions?