Read the following articles (and more related ones during your research). From a supply chain management (SCM) perspective, compare the performance of the two companies in question along four dimensions (see below). Write a report to summarise the SCM of the two companies, analyse their respective critical success factors, and answer the given assignment question.
Articles on ALDI
- Nine.com.au. (2018), “Aldi unpacked: The business model making a huge dent in Australia's $100 billion grocery market”, available at: https://finance.nine.com.au/business-news/the-secret-to-aldi-australias-success/2763615c-a03a-41cc-9cc9-c035d86f3f05 (Links to an external site.)
- InsideRetail (2018), “The secrets to Aldi’s success”, available at: https://www.insideretail.com.au/news/the-secret-to-aldis-success-201808 (Links to an external site.)
- ALDI Unpacked (2018), “Behind the scenes of what makes ALDI good different”, available at: https://www.aldiunpacked.com.au/Article/August-2018/Behind-the-scenes-of-what-makes-ALDI-Good-Different (Links to an external site.)
- The New Daily (2015), “What are the secrets to Aldi’s super low prices?”, available at: https://thenewdaily.com.au/money/finance-news/2015/05/24/secret-aldis-super-low-prices/ (Links to an external site.)
- University of Warwick (2015), “Why are Aldi and Lidl currently so successful?”, Supply Chain in Practice, University of Warwick, available at: https://www.futurelearn.com/courses/supply-chains/0/steps/23702 (Links to an external site.)
- Clifford, S. (2011), “Where Wal-Mart failed, Aldi succeeds”, The New York Times, available at: https://www.nytimes.com/2011/03/30/business/30aldi.html (Links to an external site.)
- Inside FMCG (2016), “Aldi charts expansion plans”, available at: https://insidefmcg.com.au/2016/11/04/aldi-charts-expansion-plans/#daily (Links to an external site.)
- Butler, S. (2016), “Aldi cranks up the pressure on the big four supermarkets”, The Guardian, available at: https://www.theguardian.com/global/2016/apr/02/aldi-cranks-up-pressure-big-four-supermarkets (Links to an external site.)
- LBusiness Intelligence Trends (2018), “Competitive advantage through efficiency: an Aldi case study”, available at: https://businesscasestudies.co.uk/aldi/competitive-advantage-through-efficiency/introduction.html (Links to an external site.)
- Barrowclough, A (2016), “How Aldi supermarkets created converts in Australia”, The Weekend Australian, available at: https://www.google.com/search?q=How+Aldi+supermarkets+created+converts+in+Australia&rlz=1C1GGRV_enAU755AU755&oq=How+Aldi+supermarkets+created+converts+in+Australia&aqs=chrome.0.69i59j69i60l3.1683j0j7&sourceid=chrome&ie=UTF-8 (Links to an external site.)
Articles on Woolworths
- The Conversation (2016), “Retail outlook: big retailers feel the pressure of new challengers”, available at: http://theconversation.com/retail-outlook-big-retailers-feel-the-pressure-of-new-challengers-54745 (Links to an external site.)
- The Motley Fool (2018), “Here's another reason why Woolworths Group Ltd. (ASX:WOW) is losing ground to Aldi”, available at: https://www.fool.com.au/2018/08/08/heres-another-reasons-why-woolworths-group-ltd-asxwow-is-losing-ground-to-aldi/ (Links to an external site.)
- Jones, S. (2015), “Woolworths: Where did it go wrong?”, Mumbrella, available at: https://mumbrella.com.au/woolworths-where-did-it-go-wrong-308694 (Links to an external site.)
- ABC News (2018), “Aldi supermarket strategy is unlikely to challenge Woolworths and Coles”, available at: https://www.abc.net.au/news/2018-08-02/aldi-supermarket-coles-woolworths/10065018 (Links to an external site.)
- Verdi, A., Dylke, S., & Campus, R. (2012), “Woolworths Australia and Walmart US: best practices in supply chain collaboration”, Journal of Economics, Business, & Accountancy, 16(2), 27-46, available at: https://journal.perbanas.ac.id/index.php/jebav/article/view/123/90 (Links to an external site.)
- Wahyuni, D. (2010), “The importance of supply chain management in competitive business: a case study on Woolworths”, Manajemen Usahawan Indonesia, No. 1, 32-39, available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1739399 (Links to an external site.)
- Woolworths wowlink (2018), Supply Chain, available at: https://www.wowlink.com.au/wps/portal/topic_centre?WCM_GLOBAL_CONTEXT=/cmgt/wcm/connect/Content%20Library%20-%20WOWLink/WOWLink/Topic%20Centre/SupplyChain (Links to an external site.)
- Hays, J. (2014), “Woolworths Supply Chain Management”, available at: https://myassignmenthelp.com/free-samples/woolworths-supply-chain-management (Links to an external site.)
- Keith, S. (2012), “Coles, Woolworths, and the Local”, The Australasian-Pacific Journal of Regional Food Studies, No. 2, 47-81, available at: http://localejournal.org/issues/n2/Locale%20n2%20-%2007%20-%20Keith.pdf (Links to an external site.)
- Vodanovich I.M., Blythe, E.B., Leong, K.H., & Liang, J.Y. (2009), “Strategic Analysis of Woolworths”, Strathclyde University, available at: https://www.slideshare.net/KyleL1/strategic-management-group-assignment-1 (Links to an external site.)
The Assignment Question
Woolworths has been the largest supermarket chain in Australia for many years. However, its business and market dominance has been threatened by new comers, such as ALDI. To some, it is a classic story of David vs. Goliath. From a supply chain management perspective, compare the two firms and discuss (1) how and why ALDI could succeed in its invasion and (2) what Woolworths should improve in order to maintain its competitive position?
In order to compare the supply chain performance of the two companies (i.e., ALDI vs. Woolworths), you will need to research on the history of development, the challenges and issues they faced in the development process, and the different approaches they took to address these issues. The focus should be on how they ran their businesses and served their customers using logistics and supply chain management techniques as well as information technology.
You are required to analyse the performance of the two firms along the following dimensions (each to be discussed in a separate section in the report) applying what you have learned from the first few book chapters: Supply Chain Management: Strategy, Planning, and Operation, Global Edition by Sunil Chopra
- The three decision phases in a supply chain (i.e., how they run their supply chains);
- The push/pull view of supply chain process (i.e., how they structure their supply chain);
- Implied demand uncertainty, supply chain capabilities, strategic fit, and scope of strategic fit (i.e., how they ensure their successes); and
- The use of the various supply chain drivers (, facilities, inventory, transportation, information, sourcing, and pricing) to achieve supply chain objectives (i.e., efficiency and responsiveness).
Please note that you are expected to use the tools described in the book chapters, such as push/pull view, demand uncertainty spectrum, cost-responsiveness spectrum, and zone of strategic fit, etc. in your analysis to aid the discussion.
The following should be noted:
- In addition to the Covering Page(a page that properly provides the course number and title, assignment number, title of the case, student number, student name, and submission date), the report should include the following:
(a) Executive Summary (Summarise the cases and the findings of the analysis with conclusions in one page.)
(b) Table of Contents (List the sections and subsections with corresponding page numbers on a separate page.)
(c) List of Figures (List the figure numbers and captions, if any, with corresponding page numbers on a separate page.)
(d) List of Tables (List the table numbers and captions, if any, with corresponding page numbers on a separate page.)
(e) Summary of the Cases (Use your own words to give a brief summary of the cases in one page.)
(f) Critical Success or Failure Factors Identified (Analyse the information provided in the articles to identify the factors leading to the respective success or failure of ALDI and Woolworths in one page.)
(g) Answers to the Assignment Question (Answer the assignment question by analysing the two firms, i.e., ALDI and Woolworths, along the four dimensions. You should address the four areas one by one on separate page with the proper headings. DO NOT MERGE EVERYTHING into a big paragraph or essay. Marks will be deducted if answer to the assignment question is not organised properly so that the reader cannot see clearly an analysis along the four dimensions as required. Make full use of the information in the articles and from other sources, if needed, for your analysis. Assessment is based on how thorough the analysis is, using the information provided in the articles and gathered from other sources such as report, journal articles, and Web pages (e.g., company homepages of ALDI and Woolworths), and how convincing the arguments are. YOU MUST SUPPORT YOUR ARGUMENTS WITH EVIDENCE from the articles and other sources.)
(h) References (Provide all the references used in the report in strict Harvard style.)
(i) Appendices (Attach all supplementary materials used, if any, as appendices to the report.)
- Use summary tables, charts, and figures where appropriate to aid your analysis and discussion. The figures and tables should be inserted in the sections and subsections of the report immediately after they are mentioned instead of in the List of Figures and List of Tables.
- Students can refer to the document entitled “Written reports and essays: Guidelines for referencing and presentation in RMIT Business” (Version 3.0, available at http://mams.rmit.edu.au/s9sx559hurvc.rtf(Links to an external site.) (Links to an external site.)) for advice and tips on how to write proper reports and essays.
- All references must be provided in strict Harvard style. See http://mams.rmit.edu.au/zxwepdjik7ox.doc(Links to an external site.) (Links to an external site.) for guidelines and examples in using Harvard style.
- The report should be 3,000-3,500 words in length.
- The assessment of the assignment will be based mainly on the comprehensiveness of the analysis and relevancy of the answer to the assignment question as presented in the report. The more effort students have invested in analysing the two cases and writing the report, the higher the marks will be.
A Word report (3,000-3,500 words)
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