Business Process Mapping Report

Business Process Mapping Report

Part 1. Introduction

ALDI Food stores is a German chain which was first introduced in Australia in 2001, SYDNEY. Since then ALDI has expanded its presences by opening 500 stores throughout NSW,ACT,VIC,QLD,SA and WA. In just a short time since ALDI was introduced to the Australian supermarket scene it has quickly risen to be a top 10 Australian retailer. ALDI ranked 1^st in 2019 for overall customer satisfaction, which takes into consideration; value for money, freshness of fruit, vegetable & meat, customer service, layout and presentation of store, specials, variety and quality. It’s the seventh time in nine years that ALDI has emerged victorious. (Canstar Blue, 2019).

Albrecht Discount Store was founded by brothers Karl and Theo Albrecht in 1946 in the aftermath of World War II. They inherited their first store from their mother in 1913 in a suburb of Germany called Essen. Both brothers were enlisted to serve in World War II, but they returned home and took over the family business.  Looking to reduce cost and waste the brothers established a discount store, adopting a no-frill model, only selling non-perishable goods at cheap prices. By keeping prices lower than competitors the discount store found success post- World War II, managing to open four new stores in the area by 1948. By 1955, the chain had more than 100 stores throughout Germany.(Jr., 2020)

In 1961 the brothers changed the name to Aldi, short for Albrecht Discount as the company continued to grow. In the early 1960s, the company was split to Aldi Sud and Aldi Nord- following a disagreement between Theo and Karl about the selling of cigarettes in their business, Karl reportedly believed that selling of cigarettes would attract shop lifters therefore- Karl led a cigarette free division (Aldi Sud) controlling southern Germany, and Theo controlled Aldi Nord-controlling northern Germany. Theo and Karl died in 2010 and 2014, leaving behind a fortune worth an estimated $38.8 billion. (CNBC,2019)

Part 2:  Identification of mission, strategy and target market.

ALDI was chosen as I have been employed to the company since 2014, working in the stores operations section of the company. In my role as Store Manager- I am heavily involved in the day to day activities of the company, which utilises processes to align with company strategies. The two processes that will be discussed are the induction/probation process and the hiring/recruitment process.

ALDI strategy is: We provide our customers with a focused range of high quality products at the best price. Our highly efficient operation enables us to achieve cost leadership in our markets and to optimise profit.This in turn provide us with a strong financial base allowing us to grow the business and offer excellent employee working environment and competitive remuneration.(CEO ALDI, 2019).

The business approach is focused on the long term and is based around three core values which are Consistency, Simplicity and Responsibility.(ALDI AMS, 2020) These three core values dictates all activities of the business and are often starting points for all company goals and objectives. Consistency refers to reliability, striving to be consistent when dealing with people, product, price and all aspects of professional life. Simplicity refers to efficiency, clear orientation within the organisation as well as for customers. Responsibility refers to commitment towards people, customers and the environment-also includes principles of fairness, honesty, openness, service orientation and friendliness (Brandes, 2011)

Part 3: Recruitment & Induction Process

Aldi entry-level recruitment process is a time consuming but vital part of the business. Developing talent within the business is one challenge but ensuring the right fit is selected also has its challenges.Working in stores, I have seen first hand the affects of poor hiring. It leads to frustration on both parties. With reducing turnover being a company goal, looking at improving the hiring process can ensure the company meets its objectives.

ALDI keep its efficient and cost effective model when it comes to their recruitment process, ALDI does not have a HR department as these responsibilities are included in the Area Manager job title.

Applicants are required to apply for open positions online where they are required to fill out the questionnaire, testing key skills such as mental arithmetic judgement or memory-as ALDI is a leading retailer in remuneration compared to its competitors and due to the volume of applicants- they are scored based on the documentation and questions they answer- all scores above a certain level then proceed to the next stage, group interviews. (ALDI Australia, 2020) The Area Manager in store will then invite the applicants in small to medium groups to a store where they will be asked a series of questions and scenarios relating to the job role in question. Upon successful interview applicants are invited to be apart of the ‘ALDI Store Experience’, where they will meet the Store Manager. Upon consultation with the Store Manager- the Area Manager will offer the contract to the applicate after they successfully past medical examinations.

Induction begins process after a candidate is found. The Area Manager will coordinate times with the Store Manager of when the applicants will start and the responsibility is then placed onto the Store Manager to ensure the employee is successfully inducted to the business. The employee will then follow a training program called ‘5 day planner’ and will be placed under a three months probation period where they will undergo training and feedback sessions monthly with the store manager and area manager. Upon successful completion of the probationary period the employee will be taken off probation-furthermore receiving full benefits of other employees.

FIGURE 1

FIGURE 2

FIGURE 3.

FIGURE 4.

FIGURE 5&6

Conclusion

It is evident, throughout my research and experience with Aldi, that Aldi Food Stores lives up to its reputation for being an efficient business; staying true to its business model from when it was first created in Germany. My research in Aldi’s recruitment and induction process shows that this focus on efficiency has translated across Aldi’s processes; for instance, Aldi’s organisational structure does not include a separate HR department, but rather incorporates this into the Area Manager’s role. The induction process, furthermore, relies heavily on the store manager.

A suggestion put forward by an existing executive manager at Aldi refers to a need to adjust the recruitment screening programming utilised so as to implement a system that sifts through candidates more efficiently; limiting the time spent by area managers looking through non suitable candidates. This includes

psychometric questioning and character-based questions.

Or, following another avenue, another recommendation to consider is contracting recruiters to assist Area Manager’s in this process

REFERENCES

ALDI Australia. (2020). Retrieved 14 January 2020, from https://www.aldi.com.au/en/about-aldi/

Brandes, D. (2011). The 9ALDI way to retail success.

CANSTAR BLUE (2020). Retrieved 14 January 2020, from https://www.canstarblue.com.au/stores-services/supermar

Jr., T. (2020). How Aldi’s frugal, reclusive founders turned a corner grocery store into a $38 billion fortune. Retrieved 14 January 2020, from https://www.cnbc.com/2019/05/14/how-aldis-founders-turned-a-local-grocery-into-a-38-billion-fortune.html

Merrilees, B., & Miller, D. (2001). Innovation and Strategy in the Australian Supermarket Industry. Journal Of Food Products Marketing, 7(4), 3-18. doi: 10.1300/j038v07n04_02