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Organizational Behaviour (BE410) 2020-21
COURSEWORK BRIEF
Module Description
This module builds on the first year module BE400 to develop and deepen several of the
themes introduced there. The intention is to dig deeper into the concepts of management,
work and organization in order to develop understanding of the interplay of management
practices and experiences of organizational life. The focus is on understanding the social,
historical, economic, and cultural context within which things and people are organized. The
module considers a number of broad and overlapping topics in the field of organizational
behaviour and explores these with reference to both their historical origins and their
contemporary relevance.
The focus is on the social and cultural dynamics and power relations that shape the
management and experience of organizational life. ‘Organization’ here has three meanings:
(i) organization as an entity, a thing (an organization); (ii) organization as an activity, a
practice (organizing) and (iii) organization as an idea, even an ideal. All three meanings
have a direct impact on how we organize and manage in our daily lives and work, and form
the basis of our thinking about organizational behaviour.
Whilst a clear description of organizational realities is important, to really understand
management, work and organization, it is necessary to move beyond description, first to
analyse and then to critically evaluate. Analysis means moving beyond description to
understand the social contexts, processes and dynamics that give rise to particular
organizational structures, relations and patterns of behaviour. The teaching, learning and
assessment on this module is designed to support you moving from a descriptive to an
analytical, and critically evaluative understanding of OB as you work through the teaching
materials, readings and the two coursework assignments.
All students who successfully complete this module should be able to make and articulate
an informed judgement on specific management and organizational practices, evaluating
them in terms of their contexts and effects. This is an essential skill set for all managers,
who are often in a privileged and influential position when it comes to making changes to
the way we organize. It is also an important basis for final year study and beyond.
Module Aims
The aims of the module are:
1) To provide an appropriate level of conceptual and theoretical understanding of
organizational behaviour.
2) To develop an informed understanding of the ways in which broader social contexts
and changes affect organizational behaviour and management practice.
3) To develop students’ abilities to engage in critical analysis, evaluation and
argumentation through reading, participation and assessment.
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Learning Outcomes
On successful completion of the module, students should be able to:
1) Demonstrate a social scientifically informed understanding of organizational
behaviour, drawing on relevant theories, concepts and examples of organizational
settings (CWI and CWII).
2) Apply social scientific concepts and ideas to explain and evaluate changing contexts
shaping the management and experience of work organizations (CWII).
3) Develop and deploy skills in critical analysis, evaluation and argumentation through
reading, participation and assessment (CWI and CWII).
Assessment
The module is assessed by two pieces of coursework, as follows:
Assignment (1) – Short answer questions (20%)
For the first assignment, students should write a response to the following two short
answer questions.
Answers must be written in full prose (not note-style) and should be 1,500 words in total
(750 words per question) excluding references (+/- up to 100 words will not be penalized).
All parts of the question must be answered using ONE article as source material for each
question (e.g. one article for Question 1, and one article for Question 2).
PDFs of all papers are provided on Moodle.
The aim is to provide student choice, while at the same time making sure that core
knowledge is developed and demonstrated, in order to meet the Learning Outcomes outlined
above.
1. Organizing identity
Choose and read ONE of the following:
• Huber and Brown’s (2016) study of the New York food co-operative, or
• Van Amsterdam and van Eck’s (2019) paper on the experiences of female
employees who self-identify as fat.
Summarize how identity is defined in the article you have chosen and describe
TWO examples of activities or behaviours that demonstrate identity work
discussed in the article. Explain why these activities or behaviours can be
understood as examples of identity work according to the definition you have
provided.
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2. Power relations and inequalities at work
Choose and read ONE of the following:
• Dobusch and Kreissl’s (2020) paper on im/mobility governance during COVID19 lockdown, or
• Opie and Robert’s (2017) paper on racism in business organizations.
Drawing on your chosen paper, identify TWO examples of how the exercise of
power influences organizational behaviour and explain how this exercising of power
impacts on inequality.
Assignment (2) – Essay (80%)
Choose ONE question from the following two:
1. Critically evaluate the argument that the management of culture and space
determines organizational behaviour.
2. How relevant is the concept of ‘structured antagonism’ to understanding
organizational behaviour in today’s digital age.
Essays should be 3,000 words in length (+/- up to 10% will not be penalized), excluding
references.
Both assignments must be word-processed and written in an appropriate academic style.
All coursework will be processed using plagiarism detection software.
Both assignments must include a list of ‘References’ cited in the piece of work – NOT a
Bibliography. References must include a full list of all articles, books and other sources that
have been cited in the assignment. This must be written in Harvard style. In the main body
of the assignment, page numbers must be included for ALL direct quotations, using Harvard
style (e.g. Opie & Roberts, 2017: 116).
All answers should make reference to a range of well-chosen organizational examples and
to relevant concepts and theoretical ideas in order to make connections between the
changing contexts and forms of organizational behaviour.
All answers should aim to:
• Be well structured, with a clear introduction and conclusion.
• Make good use of relevant academic source material.
• Demonstrate knowledge and understanding of key conceptual and theoretical ideas.
• Engage with relevant academic debates and different perspectives.
• Be referenced clearly, accurately and consistently, using Harvard style referencing.
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• Be original work, and achieve a mark below the expected threshold when checked.
• Include a range of well-chosen examples to illustrate key points.
• NOT cite websites (apart from academic journal articles or news items accessed
online, or organizational websites as illustrative examples).
Assignments should be submitted electronically to FASER by 10.00am on the given
deadline date.
For details on electronic submission, see: http://faser.essex.ac.uk/
Academic Offences Procedure
For details of the University’s Academic Offences Procedure, see:
www.essex.ac.uk/see/academic-offence
Please note: it is a student’s own responsibility to be aware of the University’s Academic
Offences Procedure, the regulations governing examinations, and how to correctly reference
and cite the work of others.
Indicative answers and application of the marking scheme
With the intended Learning Outcomes in mind, both assignments will be graded as follows:
• Excellent answers (70s+) will demonstrate an extremely well informed
understanding of organizational behaviour, drawing on carefully chosen theories
and concepts, applying these to a well thought through and insightful analysis
deploying well-developed skills in academic research, critical evaluation, and
argumentation. Strongest answers will demonstrate a capacity to synthesize ideas
from different sources and will demonstrate evidence of originality in the analysis
and argument presented.
• Very good answers (60s) will demonstrate a considered understanding of
organizational behaviour, drawing on relevant theories and concepts and applying
these to a convincing analysis of appropriate examples, demonstrating skills in
research, critical evaluation and argumentation. These answers will be analytical
but will lack the originality or level of insight of the strongest answers.
• Good answers (50s) will apply relevant concepts and theoretical ideas to develop a
good understanding of key issues and examples, deploying skills in research,
evaluation and argumentation. These answers will tend to be more descriptive than
analytical, however.
• Satisfactory answers (40s) will demonstrate a relatively basic understanding of
key issues and ideas, relying largely on taught material and readings provided on
Moodle, thereby deploying only limited skills in research, evaluation and
argumentation.
• Weakest answers (below 40) will demonstrate only a minimal understanding of
relevant concepts, theories, issues and source material, and will fail to deploy skills
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in research, evaluation and argumentation at the required level. Assessments in this
category will tend to engage insufficiently with relevant academic source material,
with not reference sources cited accurately and thoroughly, and/or will lack a
sustained focus on the set question.
Reassessment
In accordance with the School’s Reassessment Strategy 2019-2020, reassessment will be
by coursework only (100%). Students who have not achieved an overall pass mark for the
module (40%) will be required to submit an essay 3,000 words in length (+/- up to 10% will
not be penalized), excluding references, in response to the following brief:
The global pandemic of 2020 has created a need for a rapid re-organization of work and
has meant that some workers are busier than ever while others have little to do.
Explain how theories and concepts covered on the module provide insight into these
differences.
In your answer ensure that you make reference to a range of relevant examples and
academic literature.
For indicative answers to reassessment, please see above.

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Table of Contents
Introduction. 3
Macro Environment Analysis (PEST) 4
Discussion and Analysis. 5
Retail Store Branding. 5
Service Quality (SERVQUAL) 7
SWOT Analysis. 9
Challenges Facing Aldi 10
Recommendations. 11
Short-term (1-3 years) 11
Long-term (4-5 years) 11
Conclusion. 12
References. 13
 
 
 

Introduction

Retailing is a method of selling goods and services that is convenient, comfortable, and convincing. Retailing has evolved as it takes new marketing strategies, marketing techniques, and dynamic consumer psychology. Retailing involves a direct interaction between a seller and a buyer where business activities are coordinated from the design stage to product delivery to customers. Retail marketing, on the other hand, involves retailers promoting awareness of the goods and services they offer to generate maximum sales (Jayaram, J., Xu, K. and Nicolae, M., 2011). Retailers will use various strategies to advertise and communicate what they offer top their customers leading to profitability and a higher return on investment (ROI) (Phillips, J.J. and Marston, M., 2007). The retail marketing mix is guided by products offered, price, place, and promotion of goods and services. This paper aims to provide a retail marketing audit of Aldi concerning retail store branding and the SERVQUAL model.
Aldi is a family-owned discount supermarket which is chain operating worldwide and headquartered in Germany. (Aldi Recruitment – About Us, 2020). The retailer operates selling several goods such as grocery and electronics at discounted prices. The retailer has been in operation for more than 30 years and has a standard assortment in addition to special weekly offers such as electronics and other tools (Wortmann, M., 2004). Aldi sells its products at discounted prices, although the offers have limits on quantities (Wood, L.M. and Pierson, B.J., 2006). Some of the retail stores sell alcoholic beverages, groceries, and fresh products. The retailer uses unique strategies to reach out to its customers as it does use external advertising but a weekly newsletter called “Aldi informs” and is randomly distributed to stores and via direct mail (Voigt, K.I., Buliga, O. and Michl, K., 2017). To appeal the society’s different classes, Aldi has identified itself with the lifestyles. Besides, the retailer keeps its retail store branding by offering fewer stock-keeping units (SKUs). Customers tend to dislike having an array of many products to choose from (Cuc and Miina 2018).

Macro Environment Analysis (PEST)

The PEST analysis for Aldi examines external factors such as political, economic, social, and technological (PEST) that affect business tactics for the retailer.

Discussion and Analysis

Retail Store Branding

      Aldi retail store is committed to giving its customers high-quality products that have undergone rigorous testing and procedures for quality control at great value prices. The retailer maintains its brand reputation by keeping its costs low and through its excellent retail store branding(Aldi.co.uk. 2020d). Aldi mainly stocks its exclusive brands and ensures its products are tested to meet the national brand quality (Peters and Bodkin 2018). Aldi used its excellent selection of private brands to disrupt the grocery industry offering value, exclusivity, and innovation. The assortment of the brands had a direct growth impact of private brands as consumers discover they can buy quality private-branded products at Aldi at affordable prices. Offering outstanding private brands, Aldi has gained people’s trust, and more consumers get exposed to the retailer’s products (Kiran and Dilijit 2017).
Aldi established its brand in both low and high-income areas by investing in its increasing store count. The private-label offerings adopted by the retailer, including a broader organic meat product selection, expanded selection of products, such as natural and vegetarian products, helped the retailer move upmarket. Schmid et al. (2018) explain that Aldi has also launched a private-labeled wine line accompanied with gluten-free options for prepared meals. The retailer grew a loyal customer following keeping them within its ecosystem and protect margin. The retailer was also able to focus on its brands, which act as differentiators and appealing customers who desire sustainability and quality for products but are also conscious of the prices (Ramanthan et al. 2017).
In the recent past, Aldi gained an excellent reputation due to the promotion of quality private brands together with its economical prices. Aldi has not only raised its reputation among consumers but also profiles of several private brands. Aldi quickly grew its chain stores to become a stiff competitor and bringing bout disruptiveness in the grocery industry (Kotler and Armstrong 2010). In the past decade, the retailer ramped up its market presence choosing frugality over name brands. This growth was attributed to its ability to offer products that are of better quality and innovative, resonating with all customers (Grewal et al. 2013). The shoppers base for Aldi magnificently blossomed to 40 million customers monthly by targeting a more extensive income base, particularly households whose income lies between $30,000 and $99,000 (ALDI: A private brand powerhouse, 2020)
.
Aldi strengthened its retail store branding by differentiating itself from its rivals through innovation. Differentiation began in 2014 when the retailer launched the first-ever store-brand gluten-free category of products known as liveGfree line (Murray et al. 2018). The retailer also put out another store brand known as SimplyNature, which featured natural and organic products that were made from “true ingredients.” The retailer in 2015 went on to get rid of partially hydrogenated oils, synthetic colours from its brands’ products. Aldi later launched a private label line of baby products such as organic infant and toddler snacks, formula, diapers, and wipes known as Little Journey. Then in 2016, the retailer introduced “Never any!”, a private brand that featured products made without adding any hormones, antibiotics, animal by-products, and steroids (Nyadzayo et al. 2018).
Recently, Aldi expanded provision of private brand fresh products in its stores offering more ready to cook fresh organic products such as farm produce, meats, and vegetables, grab-and-go items such as baked products and refrigerated beverages. Cherney and Hamilton (2018) explain that exclusivity at Aldi has been a result of innovation. Exclusivity was evident in some of the products that were available at Aldi and nowhere else. Therefore, customers flocked at the retailer to purchase the products since no other store had them. For instance, Aldi sold its zesty Italian meatless meatballs under its Earth Grown vegan brand, sold its bacon smoked sausage and bourbon whiskey under its Parkview brand, among other products. Additionally, Aldi sells private brand lines of several products, including Friendly Farms milk and dairy products, Clancy’s snacks, Sea Queen seafood products, among many other beverages, foods, and non-food items (Hitt et al. 2017).
Aldi has always used the “no-frills approach” in its business to strategically keep its prices lower by removing non-essential features. Gehard and Hahn (2005) explain that by lowering product prices, customers can shop more conveniently according to their budgets. Aldi offers few product choices reducing the overhead and allowing them to sell their products at much lower prices. The store has built solid relationships with its suppliers by partnering with the best food manufacturers in the country to ensure high quality and constant product innovation (McIntyre et al. 2016).

Service Quality (SERVQUAL)           

An organization’s relevance in business is enhanced by its service quality to customers. According to Zeithaml 2018), the SERVQUAL model is a conceptualization for measuring the quality of services offered to customers. The outcome of a comparison between the expectations of a customer and the actual service value offered gives the service quality. Aldi emphasizes service quality as an essential part of its customer’s perception; it determines the level of customer satisfaction. The service quality offered at Aldi stores is the ultimate determinant of customer satisfaction (Cavana et al. 2007).
The level of service quality at the retailer is high; hence an equivalent level of customer satisfaction. Aldi grocery stores follow the five dimensions that appertain to service quality. The first dimension at Aldi is related to tangibles, which refer to the physical equipment and facilities at the retailer (Kasiri et al. 2017). Aldi offers its customers high-quality products. Secondly, reliability at Aldi is seen in the retailer’s prices, product and service delivery, the providence of quality service, and problem-solving for customers. The retailer offers high-quality products and services at affordable prices and helps customers get what they need. Thirdly, the retailer puts into place responsiveness by supporting customers through fast and efficient service facilitated by communication between the firm and the customers. The fourth dimension if assurance and is conceptualized at Aldi through the vast employee understanding and willingness to satisfy customer needs. Through continuous customer assurance and satisfaction, Aldi has created a trust relationship with its esteemed customers. The final dimension of service quality is empathy; employees at Aldi show care and pay attention to customers’ needs to enhance their shopping experience (Yang et al. 2019). Employee communication and behaviour at Aldi is designed in a way to meet the customer’s requirements while considering their feelings as they try to solve customer problems.
The ultimate result of the five consumer perceptions of service quality in conjunction with product quality and price is customer satisfaction. Wilson et al. (2016) explain that the service quality at Aldi is designed to fill the five possible gaps that would occur between expected and delivered service quality. The first gap which could occur as a result of the management not knowing the demands of their customers is overcome by familiarizing every member of staff with the store’s information. The second gap could occur by giving wrong service guidelines. Aldi overcomes this gap by ensuring sufficient commitment to improving service quality. Thirdly, a gap could arise in the case of a difference between performance and specifications (Ngobo 2017). Aldi has addressed this by making sure there is certainty in employee roles to avoid conflict. The fourth gap occurs as a result of undelivered promises. Aldi ensures no promises go undelivered by facilitating clear communication between employees, customers, and through adverts. The final gap could be a result of customers having expectations of service quality that are different from reality. Aldi addresses this by clearly outlining the service quality offered to avoid disappointments (Beneke et al. 2012).

SWOT Analysis

The SWOT analysis plays the role of a strategic tool that can be used by Aldi’s management to understand the organization’s strengths, weaknesses, opportunities, and strengths. The data can then be used to do a situational analysis of the organization’s business environment.

Challenges Facing Aldi

• The European food industry is as competitive one. However, despite the competitiveness, it is important that businesses stay on the radar to provide their customers with high quality products at favorable prices (Wu et al 2014).
• Just like most organizations in the retail food industry, Aldi needs to understand its customers’’ needs. Aldi faces the threat of new entrants in the market since entry is fully controlled by a country’s economies of scale.
• In the United Kingdom, Aldi faces the challenge of a relatively high bargaining power within the industry. This power makes it had to switch possibilities from one store to another due to the high costs. Suppliers would therefore have to improve product quality and reduce costs to give Aldi the power of choosing the most favorable and reliable supplier (Schmid et al 2018).
• Several emerging grocery stores pose the threat of substitution in addition to the stiff rivalry within the existing market.
• Aldi faces the issue of competition from its rivals due to technological advancements that it is yet to embrace. Upcoming brands with strong technologies are in a position to overthrow Aldi’s private labels.
• Aldi still lags behind when it comes to online payments hence requiring customers to wait in long queues to make their purchases.
• In addition, the retailer limits the products it offers thus inconveniencing consumers who would want to have a more inclusive shopping experience. Aldi uses minimal space in stocking its products as part of its core strategies to increase lean production (Cuc and Miina 2018). However, using smaller store space poses as a challenge for the firm since it can only serve a specific number of customers at a time.
• Finally, Aldi is excited about investing in new markets. However, it is essential for a company to look into and establish a customer base before actually expanding into a new market that requires new customers.

Recommendations

Short-term (1-3 years)

• The retailer should also consider offering competitive prices as one strategy of positioning themselves as the market leader. This strategy will facilitate penetration of different markets by the company.
• Aldi should also adapt new technologies available in the market as a way of increasing its competitiveness. The level of income will be increased by adopting latest technologies and the store’s operational efficiency will increase. Aldi should allow online payments to save customers’ time that would otherwise be spent in long queues (Wilson et al 2016).
• It would also be advisable for the company to assess its tangible resources such as finances to minimize the cost of operation.

Long-term (4-5 years)

• Aldi should consider expansion as a strategy for increasing price and accessibility to all its chain stores; this is a useful factor that will help the retailer to strengthen its presence in the market and increase its market share.
• Aldi should also consider strategically constructing its stores in locations that are fully accessible as a strategy of increasing consumer preference.
• The firm should also consider amending its infrastructure to increase space so that customers have more shopping space. The store should also add more items to its supermarkets to allow customers a more inclusive shopping experience (Cherney and Hamilton 2018).

Conclusion

Aldi is a leading grocery store that has its grassroots in Germany and serves the U.K. the retailer has incorporated a number of strategies to remain relevant and competitive in the industry. A PEST analysis is given for Aldi to determine the factors that affect its relevance in the industry. Factors that influence retail store branding at Aldi are discussed with special focus on Aldi’s private brand promotion. The service quality (SERVQUAL) analysis is given for Aldi and how the firm overcomes the five gaps that hinder business. The organization’s SWOT analysis is also conducted to identify the company’s areas of weakness and opportunities available. Challenges facing Aldi are addressed and recommendations on how to overcome the challenges are given.
 
 

References

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