Woolworths vs. ALDI Group: Comparison of Operational Management Systems Presentation

Background information: Woolworths and Aldi

Woolworths

• Since the company’s foundation in 1924 , Woolworths has developed into household brand with its centers in New Zealand and Australia (Woolworth, 2011);
• It specializes in the production of healthy and fresh food for people under all age categories;
• The company also provides specific services;
• Woolworth expansion stated in 1926 and it is still going on expanding (Woolworth);
• In 2010, the company launch Fresh Food People program.

Aldi

• ALDI has been split into two groups: ALDI Nord and ALDI Sud (Plunkett, 2007);
• ALDI Sud controls the marketing sectors in the United States and Austrralia;
• In 2001, the company has presented more than 250 outlets;
• ALDI groups operate in many countries and introduce new stories and facilities (Plunkett, 2007);
• The company’s strategies are focused on presenting good quality and optimal pricing policies. It is the largest world grocery retailers.

It should be stressed that both companies are recognized as one of the largest retailers in the world providing people with high quality products. Due to different specializations and policies they do not stand a rigorous competition with each other.

Comparison of staff and logistics

ALDI Group

• Shop assistants and employees of each department are constantly subjected to training and developing programs aimed improving the quality and conditions of working and production (Plunket, 2007);
• ALDI managers do not seek to organize multi-branched departments having from 3 to 5 workers for each store;
• The company is focused on launching faster pace of working and paying higher salaries to their subordinates;
• ALDI has about 8,100 facilities in Europe and about 850 store locations in the United States (Plunkettt).

Woolworth

• The company is greatly concerned with its employed staff, which is about 190,000 members.;
• Woolworth recognizes that the human resource management is the key to successful performance and , therefore, it provides training programs, services and education that the employee need;
• Developing the qualities of the workers, Woolworths seeks to establish a reward and achievements system (Woolworths, 2011);
• Logistics department of the company is responsible for distributing of products to the stores all over the world;
• Within this division, Woolworths has System Administration, Clerical Support and Human Resources Management (Woolworths, 2011).

Deriving Capital and Suppliers

ALDI Group

• ALDI applies to paid up capital and plans to invest future revenues in further development and growth;
• Expansion via cash investment help the company keep their risks at a lower level;
• ALDI group is open to new offers and propositions from the world suppliers. It plans to expand its network to produce higher quality products because they adhere the principles of reliability, volume, and growth (ALDI, 2011);
• Despite the expansion polices the most part of ALDI suppliers are from Australia (ALDI, 2011).

Woolworths

• Woolworths’ supplying strategies is based on introducing low costs and expanding the profits;
• It stands a vigorous competitions with other companies and takes into consideration all the increase of margins which make the company’s profits much higher (Gottliebsen, 2008);
• In order meet the needs of their customers, Woolworths has developed a strong supply chain system for managing its stock operations effectively (Gottliebsen, 2008).

Brands and Marketing

ALDI Group

• ALDI offers a multiple range of products – from pet food and household products, to food, cosmetics, and high quality spirits supplied from different countries;
• The company has also introduced the world known brands, such as Vegemite, Nescafe, and Milo (ALDI, 2011);
• It is also focused on the development of their own brand to stay a highly competitive company (Plunkett, 2007).

Woolworths

• Woolworths home brand – providing best quality for moderate prices;
• Woolworths Fresh – the company strives to sources high quality products from reputable suppliers to make sure that food is fresh and properly delivered (Woolworth Fresh, 2011);
• Macro Wholefoods Market – products for shoppers concerned with their health.

Supply Chain Management

ALDI Group

• In the pursuit of cost-leadership strategies, ALDI cooperates with wholesaler all over the world to strike the balance between price and quality;
• It also establishes the policy of exclusive goods, that are often displayed in limited number at low price to attract more customers (ALDI, 2011);
• Supply chain management is predominantly based on efficient operations and business transactions with the suppliers.

Woolworths

• The company has recently introduced a new program on developing supply chain management in a complex combination with logistics, product and pricing policies (Woolworth, 2010).
• The company is more focused on addressing high quality, costs, and benefits for their employees and customers;
• It has also launched the problem Fresh Food People whose major focus is made on presenting the most reputable suppliers from all over the world (Woolworth, 2011).

Conclusion

ALDI group is more focused on dealing with exclusive products that are supplied in limited qualities and on presenting low-pricing polices for their customers.

Woolworth has taken the course on expansion. It introduces new opportunities for their workers and for the customers via the implementation of effective training programs and marketing projects.

Reference List

ALDI (2011). Aisles of Opportunity. Web.

Gottliebsen, M. (2008). Woolworths’ market muscle. Business Spectator. Web.

Plankett, J. W. (2007). Plunkett’s Retail Industry Almanac. US: Plunkett Research Lid.

Woolworths (2010). Woolworths Fresh. Web.