Management and Business Context Assignment - Tesco

Business Context

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. History of the company............................................................................................................1
2. Vision, leadership style, management practices and strategies used by TESCO....................2
3. Analysis Of Leadership Style, Management Practices and Strategies Adopted By Tesco.....3
4. Recommendations....................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Business refers to the activity that include the purchase and sale of goods and services for
the purpose of earning profit. Every business needs an investment to be done by the owner of it
so that more customers are attracted towards it.
Present study will be based on the TESCO company it is a British multinational groceries
and general merchandise retailer. Its headquarter is located at Welwyn Garden City,
Hertfordshire, England. It is the third largest retailer in the world by gross revenues and ninth
largest retailer in the world by revenues. It was founded by Jack Cohen in 1919(Hammer, 2015).
Report will include history about the TESCO company and the leadership style followed
by it. It also include management practices and various strategies followed by TESCO.
MAIN BODY
1. History of the company
TESCO is a British multinational grocery and merchandise retailer and its headquarter is
located at Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the largest
retailer of groceries in the world. It has its operations in more than seven countries. Jack Cohen
son of Jewish migrants from Poland founded TESCO in 1919.It was first appeared in 1924.It is
listed in the London stock Exchange and is a constituent of the FTSE 100 indexes. It has
expanded its business in the early 1990's by providing operations in the 11 countries of the
world. It was started in 2013 in USA and in 2018 it growing at fast pace. It has expanded its
business such as retailing of books, clothing, electronics, furniture and many more. In the 1990's
it re positioning itself as providing low cost product to the customers and known as low cost
retailer that offers various product ranging from low cost to high cost(Storey, 2016.) It has
expanded by mid of the 1990's by 500 shops to 2500 shops in fifteen years. It has its net income
of £1,208 million by 2018.It has employed 460000 employees in the company by 2017.In 1994
the company is took over the supermarket chain.The logo of the company is changed to the
current version with reflection of stripes in the logo. On 21st March 1997 the company purchases
the retail arm of Associated British Foods. The deal was approved by the European Commission
on 6 May 1997.The company starts its diversification in different countries of different variety of
products such as household goods and clothing under the Delamare brand.In 2001 it started its
business in online groceries retailing in the USA. It also purchased the C Two Networks in Japan
and also acquired the supermarket chain in Turkish.TESCO started its business operations by
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doing joint venture with the Charoen Pokphand Group but face difficulties in growing the
company(vom Brocke, Zelt and Schmiedel, 2016).
The rationale behind the choosing of TESCO company as it is the multinational company that
provides the services to different parts of the country. As it is famous for its service providing in
the united kingdom and other parts of the country.
2. Vision, leadership style, management practices and strategies used by TESCO
The vision of the TESCO company is to grow its business operations with full of
opportunities and by creating new ideas and innovation in the company to achieve success in the
future.
The leadership style followed by the TESCO company is participative leadership style
that is also known as democratic style of leadership that involves the participation of employees
as well as leader in decision making process. TESCO followed this leadership style as it involves
all the employee's of the company in taking decision of the company. If employees are not
involving in the decision making process they are not aware about the company's decision and
policies that are being implemented by the company(Apenko, 2017).Employees in TESCO
company are more involved with the strategies that are adopting in the company and take
initiative in doing work effectively and efficiently. As employees are more engaged in the
company's activities and employee engagement is also improves as there is interaction between
the employees regarding the work. As by applying this leadership style the TESCO company can
achieve its goal easily and effectively by proper utilization of resources of the
company(Leadership styles and frameworks, 2019).
Management practice followed by the company is employee engagement activity and
performance management. Under TESCO employee engagement activities are conducted on
time to time so that each and every employee is familiar with each other and do not feel
unprotected in the company(Iqbal, Anwar and Haider, 2015). It leads to provide sanctification to
the employees as they know each other in the company. It reduces the absenteeism of the
employees in the company that will benefit the TESCO in achieving its target. The employee
engagement activity helps in achieving the vision of the company as through this strategy the
company can achieve growth and get success in the future through that the company has achieve
the success.
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