Aldi Is a No-Frills Grocery Chain

question 60

Multiple Choice

Aldi is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced,private-label brands.Aldi stores are typically about one-third the size of the traditional supermarket.By controlling expenses,Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.Aldi has a(n)

• A) market-homogeneous focus
• B) cost competitive advantage
• C) product aggregation strategy
• D) revenue-based competitive advantage
• E) profit-enhanced advantage

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Definitions:

Incremental Cost Approach

A decision-making process that focuses on the changes in total cost that would result from a decision to pursue one alternative over another.

Income Taxes

Taxes charged by the government on earnings generated by businesses and individuals within its jurisdiction.

Net Present Value

A calculation used to estimate the value of an investment, adjusting for its cash inflows and outflows over time and discounting them to the present day.

Post Audit

A review conducted after the completion of a project or period to evaluate its compliance with projected outcomes and objectives.