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This paper is divided into five (5) task, you are firstly supposed to evaluate the 2 countries to identify which has the most potentially attractive target market for Aldi’s future international expansion strategy. Furthermore, you are supposed to discuss the rationale for the selection of your chosen market and apply the 5 forces model to assess the competitive intensity of the industrial environment of Aldi. Also, Analyse the firms’ internal environment and finally critically evaluate the different modes of entry available to Aldi and provide justified recommendations.
TASK 1. Evaluate the following 2 countries to identify which represents the most potentially attractive target market for Aldi’s future international expansion strategy: • Czech Republic • New Zealand In order to evaluate which of these 2 countries represents the most potentially attractive target market, you are required to undertake a comparative PESTEL analysis of those macro-environmental factors of the 2 countries that are relevant to Aldi. This background analysis must be included as an appendix, presented in table format and must be no more than 5 pages in length. • Data should be recent, primarily quantitative and obtained from appropriate sources (e.g. the most recently published World Economic Forum’s Global Competitiveness report). • A scoring system should be used for each macro-environmental factor/subfactor for each country to show whether each factor / sub-factor is more or less attractive for your company. These scores should then be totalled for each country in order to arrive at an overall scoring of attractiveness for each country.
TASK 2. Discuss the rationale for the selection of your chosen market. Your rationale should be justified with a more detailed discussion of your PESTEL analysis of the macroenvironmental factors of your chosen market that you have presented in the appendix for Task 1. This discussion should explicitly consider the implications of the macro-environmental factors of your chosen market for Aldi. - Worth 20% of the overall mark; 825 words. • This task must be presented in the first section of the main body of your report.
TASK 3. Apply the 5-Forces model to critically analyse the competitive intensity of the industrial environment of Aldi in your chosen market. A SWOT analysis is not acceptable.
TASK 4. Analyse the firm’s internal environment in order to EITHER: 3
i) critically evaluate the resources and capabilities of Aldi and the competitive implications of these for the company when entering into your chosen market (this will require an application of the VRIO framework) OR:
ii) identify Aldi’s internal value-adding activities and critically evaluate which of these will be most relevant in supporting the company to enter into your chosen market (this will require an application of the Value Chain model).
TASK 5. Critically evaluate the various modes of entry available to Aldi and recommend – with justification based on the findings of your analyses in Tasks 2, 3 & 4 above – the most suitable mode of entry that will enable this strategic international expansion to be a success for the company.