TESCO and Sainsbury's Business

This report compares the business operations of TESCO and Sainsbury's, analyzing their leadership styles, management practices, and strategic approaches. It concludes that TESCO's participative leadership and Sainsbury's transformational leadership have contributed to their success. The report also provides recommendations for improvement, suggesting that TESCO adopt a situational leadership style and Sainsbury's implement an autocratic approach.

CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
TESCO and Sainsbury's business................................................................................................3
Organizations leadership styles, strategies and management practices.......................................4
Implementation and goal achievement........................................................................................6
Recommendations as improvement.............................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Business is action of making money by manufacturing products and selling or buying
goods. Retail business refers to activity of marketing services and selling goods directly to
customers (Ciravegna and Brenes, 2016). TESCO and Sainsbury's work in retail sector and run
their business effectively in marketplace. The present report will explain summary of
organizations business and clarify their vision, management practices and leadership style. It also
justifies different strategies using by companies with the help of using various theories. It
includes about implementation or achieved goals by firms within chosen leadership style and
management practices. Furthermore, it explains recommendations for companies as
improvement.
TASK
TESCO and Sainsbury's business
About TESCO
TESCO is a British international groceries and general merchandise retailer company in
UK. It is one of the third biggest retailer firm in the world sounded by high revenues, company
has shops in several countries such as Europe and Asia. They knew as the leading grocery
provider in market of UK where they generate high market share rather than the others. It is
founded by Jack Cohen who is the founder of company and run business effectively by
implementing new and required technologies.
Expansion process-
TESCO expand their business at global level and diversified it into many areas such as
clothing, retailing of books, toys, electronics, software, internet service etc. In UK organization
run various operations like, Tesco extra, superstores, express, Tesco metro, clubcard, petrol
stations etc. Company also expanded their business outside the United Kingdom to 11 another
countries in the world for example, Ireland. With the help of expansion strategy firm entered into
new market through joint ventures partnership with local partners of country. Company made
commitment to CSR in term of contributing of 1.87% profit to local community companies and
charities. They invest money in marketing or advertising process that help to promote their
products in marketplace and garb the attention of customers.
Firm operated 3,751 stores in 2008 worldwide which enhanced to 6,966 by 2018. It is one
of the leading Hypermarket and supermarket brands in UK, systematically ranking high in forms

of grocery market share. In UK organization offering six various store formats to their
consumers and provide range of goods in it.
About Sainsbury's
Sainsbury's is the biggest chain of food market or supermarket, founded by John James
Sainsbury. Company is an innovator in development of their own brand products and offer goods
that well-matched with quality of national branded products but at low price (Everett, 2014).
They open trail food to go shop in London where firm selling baguettes, sandwiches, hot snacks
and other food product in effort to expand their business into new fields. Company identify the
best areas of business growth such as: opening new convenience stores, growth of non food
ranges, provide online home delivery etc.
Other business-
Organizations operated 270 pharmacies within their supermarkets and also provide
outpatient hospital medicine facilities, operating pharmacies at major hospitals in UK.
Sainsbury's Save and compare is a switching and comparison service website which promoted
huge range of television, telephone and broadband deals with different of suppliers.
Organizations leadership styles, strategies and management practices
Vision is aspirational view of where business needs to be in the future, it offers
benchmark for what the organizations hopes to win.
TESCO wants to be more successful in marketplace by providing good quality products
to their customers and retain clients with them for longer term of period, it is one of their vision
statement in which company work according to it and perform well and manageable in way.
Clients need great products or services at good or valuable prices, so it is required that Tesco
perform accordant to it and manufacture quality things for people as they expected.
Participative leadership style-
Participant leadership theory refers to ideal leadership style where leaders take input of
others in workplace or pressure another staff members to give their ideas and suggestions in
process of decision making.
TESCO management followed democratic leadership style which also known as
participant style of leadership. By adapting this theory company management value their
workers and heard their voice during taking any decision. Leaders encourage employees to take
part in decision making action that helps to feel more committed and relevant to the process.

They motivate workers and try to make them feel comfortable in workplace which is
beneficial for company. Due to motivation company consistently provide good products and
services to its customers and gain more profit rather than the others.
Management practices-
With the help of participant style leader motivate employees to contribute in decision
making procedure. It is very essential in management practices in which TESCO manager
empower staff members by creating health and happy environment around work area. They
create work environment in which workers are productive, empowered, creative and feel free for
sharing their ideas with the others.
TESCO used cost leadership business strategy that help to gain competitive advantages
to firm by having low cost of operations in retail industry. Cost leadership strategy drive
company towards success and growth.
Sainsbury's vision statement refers that company wants to be the most trusted and
faithful retailer in the world, where customer love to shop and people like to work with them.
They need to ensure to their customers that organization provide great service and products every
time when they are shop with them. Firm have the most talented, creative staff members who
work effectively and give hard working performance to satisfied their customer. \
Transformational leadership style-
Sainsbury's leaders adopt transformational leadership style in which they focus on
making good connection and relationship with their workers. They inspire and motivate
employees for helping other group members. Company leaders give importance to their people
and focus on their performance and also try to improve it. They want that each individual often
have high moral and ethical standards which helps to grow more and more in their career.
Management practices-
Manager of company plan training session to their staff members where they will build
good relationship with them and develop their skills more and more. Training is one of the most
effective and essential part of business development in which firm gain positive outcomes rather
than another.
Business Strategies-

Sainsbury's retain their workers with them for long term and provide training to them for
achieving desired organizational goals. They used low cost strategy because they want to make
their customers happy and satisfy.
Implementation and goal achievement
TESCO management adopt participative leadership style that help to encourage their
staff and enhance performance more. It is very effective ways to boost up employees' morale and
increase their interest of work. They implement participant style, leaders arrange board meeting
where they try to inspire people for giving their feedback and share feeling (Sagnak, 2016). With
the help of taking workers' feedback about organization working environment company gain
their trust. Leaders encourage employees to give their suggestion and recommendation that
improve business activities. They inspire people to take part in decision making where all are
free to share their ideas and thoughts. With the help of this activity organization empower staff
and create healthy working environment. Leaders receive valuable input or ideas form front line
workers and others how have better grasp on decision making then senior leaders in firm.
It also contributes in empowering staff rather than the other companies in industry. By
following participant style principles company will grow more and more and succeed in
marketplace as high market share. By motivation and encouragement leader enhance workers
working style and achieve good positive results. Participation style make staff able to fulfill their
needs as well as company, it also helps to reach organizational goal and business objectives. By
implementing participant leadership style company fulfill their needs and requirement. People
take participation in decision making process during meeting and express their feeling that
contribute to achieve goals and objectives. Participant style provide advantage to TESCO for
building their bond or connection with staff stronger. They will gain their trust and understand
their needs at workplace. For example, Some companies implement this style and conduct
meeting where they discussed about to do some changes in business structure, leaders inspire
people to give their ideas about it and share their thoughts which is very beneficial or useful for
taking decision.
Sainsbury's management implement transformational style in business for getting
positive outcomes (Shurbagi, 2014). For example, leaders conducting meeting for new and
existing workers in firm, they try to inspire people more and more and provide training session to
all the members. With the help of getting training employees get developed their skills and

knowledge more and more and inspire other in workplace. It will help to strengthen business and
make their reputation in marketplace better than others. Transformational leadership style make
leaders and workers advance to high level of motivation and moral. Higher motivation increase
working interest and contribute to run business effectively as achieving goals. Organization
wants to provide customers good experience and quality products, so that they will retain them.
With the help of motivated people company achieve their business objectives (Nguyen and
et.al., 2017). During meeting time leaders try to communicate with their workers and understand
their needs which help to build trust among them. They support all the staff members and inspire
others for helping team member.
Sainsbury's achieve their goals within having skilled and motivated staff in company,
they all work effectively as comparing to others in business world.
Recommendations as improvement
Recommendation for TESCO-
TESCO must used the situational leadership style that also helps to take good decisions
after identify situation. Leaders required to implement this style which is beneficial for company,
they resolve any issues with the help of using situational leadership style. It is one of the best
way to chose better course of action based on situational variables. It builds trust among workers
and employee because leaders take their actions based upon analyze the situation in workplace.
With the help of this style leader must solve any problems and assure workers about company
concern. TESCO leaders should implement situational style in work structure that help to get
positive outcomes and raise their position in marketplace better than others. This must style
encourage firm leaders to take stock of its group members, weigh many variables in workplace
and select the best leadership style which fits to circumstances and goals.
Recommendation for Sainsbury's-
Sainsbury's leaders must adopt autocratic leadership style that provide authority and
full power to leader. With the help of implementing this style they can take any decision in firm
without any consultation with team members or other persons in workplace. Leader should
follow all the principles of autocratic style that support during taking any decisions about
employees performance. With the help of this style they can give instruction to workers as work
according to their expectations. They must implement autocratic style as improving or
developing business more than now.

CONCLUSION
The present report discussed about TESCO and Sainsbury's Business operations and
other activities. It has been concluded that TESCO leaders adopt participative leadership that
helps a lot while taking any decision and Sainsbury's leaders adopt transformational style to
motivate and inspire workers more and more. It includes the participant style implement in
workplace that helps to achieve company goals. This study discuss more about transformational
style implemented by Sainsbury's that contribute to gain competitive advantages in marketplace.
Furthermore, it has been concluded the recommendation for both company's where TESCO must
used situational leadership style and Sainsbury's should implement autocratic style to get the best
outcomes.

REFERENCES
Book and Journals
Ciravegna, L. and Brenes, E.R., 2016. Learning to become a high reliability organization in the
food retail business. Journal of Business Research. 69(10). pp.4499-4506.
Everett, A., 2014. Sainsbury on thinking about fictional things. Acta Analytica. 29(2). pp.181-
194.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review. 5(5). pp.1-6.
Lam, C.K., Huang, X. and Chan, S.C., 2015. The threshold effect of participative leadership and
the role of leader information sharing. Academy of Management Journal. 58(3).
pp.836-855.
Mujkić, A. and et.al., 2014. Transformational leadership and employee satisfaction. Ekonomski
vjesnik: Review of Contemporary Entrepreneurship, Business, and Economic Issues.
27(2). pp.259-270.
Nguyen, T.T. and et.al., 2017. Effect of transformational-leadership style and management
control system on managerial performance. Journal of Business Research. 70. pp.202-
213.
Sagnak, M., 2016. Participative Leadership and Change-Oriented Organizational Citizenship:
The Mediating Effect of Intrinsic Motivation. Eurasian Journal of Educational
Research. 62. pp.181-194.
Shurbagi, A.M.A., 2014. The relationship between transformational leadership style job
satisfaction and the effect of organizational commitment. International Business
Research. 7(11). p.126.