Leadership Style, Management Practices, and Strategies at Tesco

This study explores the leadership style, management practices, and strategies implemented by Tesco, a leading retailer in the UK. It discusses Tesco's vision, democratic leadership style, and management practices, highlighting their impact on the company's success. The study also provides recommendations for improving leadership styles, management practices, and strategies at Tesco.

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Assignment title: Assignment-2, Individual Report
Course: BABS Foundation
Student ID:
University Name:
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Contents
Introduction......................................................................................................................................3
1. A brief history and summary of the business you have selected and the rationale for your
choice...........................................................................................................................................3
2. According to your research, discuss their vision, leadership style and management
practices and the various strategies making use of various theories you have studied as
evidence.......................................................................................................................................4
3. Analyse how the above have been achieved or implemented by your selected company
with specific examples.................................................................................................................6
4. What could be your recommendations as an improvement (the proposed leadership styles,
management practices and the various strategies that can be undertaken by this firm based on
research done) to your company..................................................................................................7
Conclusions......................................................................................................................................8
References........................................................................................................................................8
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Introduction
The key purpose of this study report revolves around researching the leadership style,
management practices and the various strategies undertaken by a firm operating into a retail
sector in UK. For this research both the domestic and as well as international reputation will also
be taken into account in order to better comprehend their styles and practice of leadership and
management including the strategies. To begin with the research firm that has been chosen as the
case study is UK based Tesco, which is the third biggest retailer across the globe in terms of
gross revenues.
1. A brief history and summary of the business you have selected and the rationale for
your choice.
Founded in 1919 by Jack Cohen as a group of market stalls Tesco plc, having headquarters in
Welwyn Garden City, Hertfordshire, England, UK is a British MNC retailing groceries and
general merchandise. When the company measured by revenue is also the 9th largest retailer in all
over the world. Tesco operates in seven countries across Asia and Europe. Apart from being the
market leader of groceries in the domestic market, having a market share of around 28.4%, it is
the market leader Ireland, Hungary and Thailand too. Tesco, a UK grocer in original since the
early 1990s has made global expansions. However, in 2013 it pulled out of America and
continues to see growth elsewhere as of 2018. The retailer has diversified its business into areas
like retailing of books, clothing, electronics, furniture, toys, petrol, software, financial services,
telecoms and internet services. The brand for attracting a wide range of social groups was
repositioned during the period of 1990s from being a down-market high-volume low-cost retailer
to one designed by providing products ranging from low-cost "Tesco Value" items to its "Tesco
Finest" range. This successful broadening of its appeal helped the chain in growing from 500
shops in the mid-1990s to 2,500 stores 15 years later. Infrastructure of the business in UK has
been reinforced with intent of continuously providing competitive offers to the customers
with sharper prices, better quality, wider product ranges and improved services. According to
Tesco Plc (2019), as a leading retailer Tesco as every week millions of customers are served
across its physical and online stores. The focus of retailer on customers is unique, which enables
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them in leading the way to deliver first class customer services. Customer loyalties are
acknowledged through Tesco Clubcard. The reason behind choosing Tesco for the research is it
being one of the leading retailers in the world and a powerful brand, having a reputation for
value, low prices and a customer-focused culture.
2. According to your research, discuss their vision, leadership style and management
practices and the various strategies making use of various theories you have studied
as evidence.
Tesco, which has been enjoying success for a long period of time, is literally focused on business
both domestically and internationally. It has a core vision that continues to be constant as an
MNC. The retailer is operating within a global environment that is increasingly competitive.
According to Henry (2017), the vision of Tesco is more realistic in giving an aspirational view of
where it wants the business to be hence, providing a criterion for what it is hoping to attain.
Being a company that is built around customers and colleagues Tesco’s direction and its strategic
decisions are guided by the vision. The retailer’s vision emphasizes on being the most highly
valued business by the customers it serves, communities it operates into, its loyal and dedicated
colleagues and shareholders. Tesco has a seven part business strategy for helping in successfully
achieving the vision, which comprise of five components i.e. wanted and needed across the
globe; a growing business with opportunities; contemporary, inventive and full of ideas; winners
domestically while implementing expertise internationally; inspiring, earning customers
colleagues and communities trust and loyalty.
Tesco has a domestic and international reputation of being a customer-orientated business, which
aims in offering products its customers’ value for money besides delivering quality services. For
ensuring that it remains at top of its game besides maintaining its No. 1 position in that market,
Tesco engages skilled staff across all levels and in all different roles. The company intends of
developing the leadership qualities of all its employees, right from administrators, customer
assistants to the board of directors. According to Donkor and Dongmei (2018), the leadership
style that has been widely adapted across Tesco is democratic style of leadership, popularly
known as participant leadership. The effective use of this style ensures that the voices of
employees are heard while decisions are made. Tesco recognize the need of motivated staffs in
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the delivery of good customer services. This style of leadership has made significant
contributions in keeping the employees morale higher always. Moreover, emphasis is given by
the management on relevance of appointing leaders in every department for efficient handling of
the day-to-day operations and other organisational processes. Leadership roles are appointed to
individuals for ensuring that every employee is aware and clear about his/her responsibilities.
This helps in getting the strategic decisions implemented through productive communications in
the forms of routine meetings and employee progress follow-ups. It contributes in assuring that
employees are not drifting away from their motive of offering quality services to customers and
that the company is effectively operating. The managers appointed team leaders across all
departments imitate the leadership style adapted by the management thereby, bringing a change
in Tesco’s structure. For example, store managers encourage the ground staffs into decision-
makings for supporting and improving the store’s overall operations and performance. They also
ensure that all team leaders are well trained, experienced and participating.
According to Donkor and Dongmei (2018), the management practices at Tesco revolve around
handling of processes, human resources, information and other things necessary. Moreover, for
increasing employees productivity, simplify decision-makings, strategic planning,
communication, encourage employee participation etc. the retailer has incorporated classical
management theories such as scientific management theory into its management practices.
Implementation of these theories has contributed in increasing its operational output by tasks
simplification, minimizing wastes and reward high-performing employees in the form of wages
and bonus. This helps in improved employee motivations. For considering every business aspect
across its domestic and international markets, which includes competition, future plans and
opportunities, current market trends etc Tesco use strategic marketing strategy for decision-
makings. Its marketing strategies help in delivering maximum customer satisfaction by
effectively meeting their demands and expectations. Moreover, strategies such as market
penetration, product diversification, market development and brand management has helped to
attain competitive advantage thereby, establishing the brand one of the biggest retailers globally.
Tesco for sustaining its leading position both domestically and internationally in today’s highly
competitive market has successfully applied these strategies
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3. Analyse how the above have been achieved or implemented by your selected
company with specific examples.
According to Nafiisa Sobratee (2018), Tesco has tied its vision to attainable goals for employees
further making it an intrinsic part of everyday experiences. This has helped Tesco in ensuring
that everybody right from the CEO to ground staffs feed into the system for driving the business
toward its goals. For example, Dave Lewis (Group CEO) has enforced Tesco’s vision in giving
the best possible services to customers. He emphasizes that Tesco is a customer service company
that just happens to retail groceries and general merchandise. The culture in the company centres
on customer experience. This goal is comprehended and shared every day by each staff. The
contributions of employees with outstanding performance are routinely recognized and
rewarded. This approach acts as a technique for motivation besides reminding the impact
employees can make on the comprehensive vision of Tesco.
The democratic leadership at Tesco has been implemented successfully, which gets reflected
from managers and team members’ participation in giving inputs and suggestions into decision-
makings and running any project. Organizational leaders at Tesco having vision for a bigger
dream by managing workforces and making beneficial investments to ensure a brighter future
have adopted this style. An adequate combination of one-man management with concurrent
involvement of employees in Tesco’s growth has been achieved through democratic leadership.
For instance, all departmental representatives are given the authority of making independent
decisions by Tesco's Board and Executive Committee. According to Nafiisa Sobratee (2018), a
corporate culture has been cultivated where higher value is given to openness, honesty, and
employees’ support. The management practices are implemented for example enhancing
employee productivity. Monetary incentives are designed for benefitting all departmental
employees. Meaningful feedbacks are constructively provided periodically besides arranging
frequent trainings and supporting employees whenever required. Meanwhile based on a pricing
strategy Tesco’s marketing plan is implemented. Lower prices are offered on high-demanding
products than competitors. Their promotional strategies focus on multipronged advertising
campaign that includes different media such print (newspaper and hoarding), television
commercials, social media advertising, radio etc. For increasing market share specific
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promotions are designed for example, discount coupons for enticing consumers in trying their
products.
4. What could be your recommendations as an improvement (the proposed leadership
styles, management practices and the various strategies that can be undertaken by
this firm based on research done) to your company
It is recommended that through reflection, which is highly effective in improving leadership style
Tesco can bring improvements in the leadership style and skills of their leaders and/or managers.
Taking out 10-15 minutes of time all through the day will help. Company sponsored weekend
getaways can also be arranged for upper management thus, allowing time for extended
reflection. It should include questions about the team results attained so far, how it is in-line with
business vision or why a particular project failed. On the other, Tesco can improve the
management practices by starting to make wiser hiring decisions. This can be done through the
selection of right candidates with right expertises requisite across all vacancies and positions.
Fresh talents should also be opportunities for proving their potentials. According to Laeeque and
Babar (2016), regular leadership skills training should be given to supervisors and managers for
enhancing their business knowledge. Moreover, for finding ways in becoming more productive
Tesco can also spark a friendly and healthy competition between their departments. Cash prize
pools or other incentives each quarter for sales and customer service outcomes can be
implemented. The workplace can be gamified by making it fun and competitive area for working
thus, sparking creativity and productivity amidst employees, making them more productive. For
improving the marketing strategies of Tesco it is recommended in building value for its
customers. This can be done by easily adopting a strategy of making adjustments in the online
site for generative outcomes thus, providing value to the business website. The focus of the
company should be on offering more value to its audience. This because more is the value
customers feel, the more it is likely that will recommend the brand Tesco to their near and dear
ones. By following the rule of giving or adding more value is the best way for establishing
connections with customers besides growing the network. Apart from this, it will help Tesco in
gaining opportunities of creating genuine relationship with their customers. Focus should also be
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given on top customers by relying on the 80/20 rule emphasizing that approximately 80% of
customers bring in 20% of sales. The remaining 20% bring in 80%of sales hence, for
maximizing the sales volume it is recommended to place the focus on the most bankable 20%.
Tesco should strive for building long-term relations with its top customers.
Conclusions
It can be concluded from the above study that the effective leaders of Tesco have successfully
established achievable objectives for the business. Moreover, with the help of their clear vision,
supportive leadership styles, productive management practices and various strategies Tesco has
ensured that employees are producing outcomes enabling long lasting success and profitability.
Moreover, the effective management of human resources had helped the organizational leaders
in enabling the employees meeting the challenges of changing business environment thereby,
achieving the strategic objectives.
References
Donkor, F. and Dongmei, Z. (2018). Leadership styles: A decade after economic recession and
lessons for businesses in developing economies. Management Research and
Practice, [Online]10(3), 5-23. Available: https://search.proquest.com/docview/2111086783?
accountid=30552 Accessed on 1/4/2019
Henry, C. (2017). Leadership and strategy in the news. Strategy & Leadership, [Online] 45(6),
58-63. Available: https://search.proquest.com/docview/1969805989?accountid=30552 Accessed
on 1/4/2019
Laeeque, S. H. and Babar, S. F. (2016). Examining the moderating role of leadership styles in the
relationship between learning organization practices and firm performance. Global Management
Journal for Academic & Corporate Studies, [Online]6(1), 85-93. Available:
https://search.proquest.com/docview/1925376873?accountid=30552 Accessed on 1/4/2019
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Nafiisa Sobratee, S. B. (2018). Leading in a global context: The balancing act between
leadership and management. Journal of Business and Retail Management Research,
[Online] 12(4) Available: https://search.proquest.com/docview/2080782362?accountid=30552
Accessed on 1/4/2019
Tesco Plc. (2019). Our Business [Online] Available: https://www.tescoplc.com/about-us/our-
businesses/ Accessed on 1/4/2019
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