Tesco's vision, leadership style and management style: TASK 11 1. The context of business

Discussion on important for individuals and organisations to manage responsibly, ethically and behave ethically in relation to cultural, social, economic and environmental issues.2 TASK 23 1. Identify and discuss micro and macro environmental factors that in your view, changed nature 2 of modern business in the global environment There are so many factors that affect business environment such as Micro factors and Macro factors.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Identify and discuss micro and macro environmental factors that in your view, changed
nature...........................................................................................................................................1
of modern business in the global environment...........................................................................1
2. Discussion on important for individuals and organisations to manage responsibly,
sustainably and behave ethically in relation to cultural, social, economic and environmental
issues...........................................................................................................................................2
TASK 2............................................................................................................................................3
1. Brief history about the company.............................................................................................3
2.Tesco's vision, leadership style, management practices and strategies....................................4
3.Implementation of leadership style and management practices can be achieved....................6
4.Recommendations regarding the leadership style, management practices and the various.....7
strategies that can be undertaken by the Tesco...........................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Business refers to the term in which goods and services are exchanged between different
people for the purpose of earning profit. The purpose of doing business is to maximise the profit
With aim to expand business at global market(Schaltegger, Hansen and Lüdeke-Freund, 2016).
Present study will be based on the Tesco company it is the British multinational groceries
and general retailer company. Its headquarter is in Welwyn Garden city, Hertfordshire, England,
United Kingdom. Tesco has developed into areas such as the retailing of books, clothing,
electronics, furniture, toys, petrol, software, financial services telecoms, and internet services.
Report will include identification of micro and macro factors that changed the nature of
modern business in the global environment. It also includes the responsibility of individual and
the organisation in relation to social , cultural, economic and environmental issues. Further more
it includes the leadership styles, management practices and various strategies followed in the
Tesco company(Storey, 2016).
TASK 1
1. Identify and discuss micro and macro environmental factors that in your view, changed nature
of modern business in the global environment
There are so many factors that affect business environment such as Micro factors and
Macro factors. Micro factors affect the daily business activities and it can be controllable.
Example: Suppliers, competitors etc. Macro factors are beyond the controlled of business and
affects the working of the business to great extent. These are such as Political, Economic, Social
factors etc. As Supplier is the micro environmental factor it affects the operations of the Tesco in
the global market as there they have to talk to the local suppliers of that country to run the
business operations at global environment. This helps in minimising the transportation cost and
getting raw material quickly. Local suppliers provide goods by considering needs of buyers thus,
Tesco will be able to offer satisfactory services to its consumer in international market(Bitektine
and Haack, 2015).
Competitors also changed the nature of the business environment at global level as global
companies use updated technology so the domestic company have to search about the technology
used in the global environment and have to adopt the same technology to beat the competition in
the global environment. As competitors have high command over local markets thus, Tesco will
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have to make changes in its product designing and services so that it can gain attention of
consumers in global market. Before entering in to new location company has to conduct market
research and have to make changes in its operations so that it can raise satisfaction level of
customers and can gain competitive advantage as well. In global market the Tesco have to attract
the customers to buy their product by offering special discount, offers etc. For running the
company at the global environment it will have to satisfy the needs of the customers(Van
Wormer and Besthorn, 2017)
As macro factors also changed the nature of the business the company have to
changed its policies according to the rules and regulations of that country. Tesco has to follow
legal guidelines of government of that nation in respect to trade activities, licensing etc.
According to new norms Tesco has to make modification in its existing operational policies so
that it can sustain in market for longer duration. Establishing business at the global environment
also lead to change in the social factors as different countries have their different values and
beliefs so the company have to adopt their values. Legal factors also changed as certain laws
which affects the domestic company's operations so the company have to run accordingly at
global environment. Environment of the global market is different from the domestic market if
there is any impact on the environment then it will change the image of the company(Wong,
2017).
Economic factors like inflation rate, corruption also changed the modern business
operations at the global environment. If value of currency is high then Tesco can sell its products
at high prices in that market but if there is recession or inflation then Tesco will have to make
changes in its pricing policies so that it can generate sales in international market.
2. Discussion on important for individuals and organisations to manage responsibly, sustainably
and behave ethically in relation to cultural, social, economic and environmental issues.
Every organisation has to manage cultural, social issues responsibly, sustainably and
behave ethically in order to sustain in market for longer duration. It is important to manage the
social issues effectively so that it does not affect the environment of the organisation. It is
necessary for an individual and the organisation to maintain the decorum of the organisation so
that it will be easy to sustain and the work is doing in ethical way. As cultural of each person is
different thus, Tesco is required to give value to cultural aspects of employees and consumers.
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This supports in retaining skilled people in the firm for longer duration and raising satisfaction
level of consumers as well(Noe and et. al., 2017).
Due to company’s operations environment get affected, wastage is increasing in Tesco
that is why it is essential to recycle the waste material. It is very important for Tesco to fulfil its
corporate social responsibility like growing more and more plants around the company so that it
will control the pollution and make it green and safe. Furthermore, recycling need to be done so
that natural resources can be protected and managed well. Use of chemicals also affect the
environment as most of the companies drain the waste in the nearby rivers which destroy the
natural resources from the environment so individuals and the organisation have to manage it
ethically so that the resources can sustain for longer duration.
Economic slowdown is another major issue, in such condition, Tesco contributes in
improving economic condition. It provides job opportunities to people in the country so that they
can get economic sources and can live their life happily(Valtonen, 2016).
Differences in the work style of the individual will affect the diversity in the environment
of the business so it is important to maintain same work culture in the organisation. If the work
culture is similar it will help in avoid conflict in the organisation. It is important to manage
responsibility, sustainability and ethical environment in the organisation. These issues can be
avoiding in the organisation if all the employees work together and there is good employee
relations in the organisation. Employee engagement helps in achieving sustainability in the
organisation. It is a morale duty of an individual and the organisation to manage all the issues in
the organisation which enhances employee to work in a productive manner(Storey, 2016).
TASK 2
1. Brief history about the company
Tesco plc is the British multinational groceries and general retailer company. Its
headquarter is in Welwyn Garden city, Hertfordshire, England, United Kingdom. On the basis of
the revenue it is the third largest retailer company in the UK and ninth largest retailer company
in the world on the basis of the gross revenue. It has seven stores across Asia and Europe. It is
also the market leader of groceries in UK.
Its vision is to be most values business by the customer they serve, the communities in
which they operate, their loyal and committed colleagues and also shareholders.
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Its objective is to provide all the services and goods what they want and fulfilling their
needs and requirements better than competitors, and also earn profit and create value for
shareholders.
Tesco was founded in the 1919 by Jack Cohen and by the end of 1939 he had over 100
Tesco shops across the country. Its revenue in the year of 2018 is £57,491 million and operating
income is £1,644 million. Its worth net income in 2018 was £1,208 million. It has 460,000
employees working with the company and help to sustainability of its brand image and achieving
the overall target of the company. It has 6,569 shops in number of locations in across the world.
Tesco is listed on London Stock Exchange and is a constituent of FTSE 100 Index. It had
the market capitalization of approximately £18.1 billion as of 22 april 2015, and the 28th largest
of any company.
Tesco stores Ltd. Tesco bank, Tesco mobile, Tesco Ireland, Tesco family dining Ltd. etc.
are the subsidiaries of the Tesco. In 1994 Tesco took over the supermarket chain William Low
which operated 57 shops, this helped Tesco to expand their presence in Scotland, in which its
presence was weaker than in England. Tesco introduced a loyalty card, branded club card and
also stared the online services in 1995(Tesco plc, 2019)
Sainsbury, ASDA, Morrisons,Waitrose, AldI all are the biggest competitors of the Tesco.
2.Tesco's vision, leadership style, management practices and strategies
Tesco plc is the British multinational groceries and general retailer comany. Its
headquarter is in Welwyn Garden city, Hertfordshire, England, United Kingdom. On the basis of
the revenue it is the third largest retailer company in the UK and ninth largest retailer company
in the world. Its vision is to be most values business by the customer they serve, the communities
in which they operate, their loyal and committed colleagues and also shareholders.
Its objective is to provide all the services and goods what they want and fulfilling their
needs and requirements better than competitors, and also earn profit and create value for
shareholders(Yahaya and Ebrahim, 2016).
Leadership Style:
Autocratic Leadership style - In this leadership style leader holds the all authority and
responsibility, mainly this style is only centred on the boss. In this type of style only leaders take
the decisions without consulting with their employees or members.
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Democratic Leadership style - In this type of leadership style subordinates and employees are
involved and participate in decision making process. Most effective feature of this style is that
the communication between all the levels of the organisation is always active.
Transformational Leadership style - As it name shows, this style of leadership is all bout the
take initiate to change in the organisation. In this leadership style leaders motivate others to think
innovatively and to do more than they do originally. Leaders make changes and according to the
possible situation and satisfied the organisation.
The Democratic leadership style is being adapted by the management of Tesco which is
also known as the participative leadership style. In this leadership style management heard theirs
employee's voice during the decision making process. This leadership style of the Tesco motivate
their employees and because of this organisation continuously provides the best services and
goods to their customers(Noe and et. al., 2017).
Management Practices:
Management practice transform the struggling businesses into streamlines system in
which employees are inspired to produces their best work. These are as follows:
Engage workers - In this manager engaged their employees in business activities and attracting
fresh talent in the company. Fist thing need to know about that employees care about the
company vision and then involve them in the company for accomplish the overall objective of
the organisation.
Reward efforts- In this mangers recognise their employees work and efforts and achievement
and make employees valued in the company. Reward motivates the employees to achieve more
and helps to build company loyalty.
Seek Clarity - A problem with many companies is lack of clarity of the objective and alignment
among the managers, who sometime stop working for fulfilling the company's vision and
objective and never understand the exact objective and vision of the company and fail to explain
it with employees. Company's manager need to focus on to understand and explain the objective
of the company, position in the companies why do they exist, what must do and how they will
succeed.
Focus Team Efforts -In this managers invest their energy on team efforts they get off on the
right path for the right goal and make sure members don't get distracted by individual activity
that lead them off track(Gutierrez-Gutierrez, Barrales-Molina and Kaynak, 2018)
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Strategies:
Product differentiation strategy- Many companies use this strategy of differentiating the
product of the company with the other company. This strategy is used when the competition is
high in the market. Small companies also use this strategy of product differentiation when the
competition is there in market so that they can gain the advantage of quality of product.
Growth Strategy for product- This strategy defines that growth can be achieved only if
company is introducing new product in the market so as to gain the competitive advantage.
Growth will be achieved only if innovation can be done in the company for increasing the sales
in the company.
Finding new market for products- Competition in the market helps companies to find new
product and to improve the growth areas for the company. Consumers are more attracted to the
firm that introduce the new product in the market in different time intervals so that profit can be
earned at constant rate. For example in schools pens are needed in bulk quantity so the company
start to manufacture cheap rate pens so that everyone can afford it and ultimately the growth of
the company is increasing.
Price skimming strategy- It is the strategy in which companies raise the price of the product
when it is introduced for the first time in the market. Companies are using this strategy so that
their cost of manufacturing can be recovered easily from the customers. Because at the initial
stage of the product launching there is no competitor so company can able to earn its cost easily.
Acquisition Strategy- Small companies use this strategy for purchasing the another of similar
product manufacturing firm. For example if any clothing company want to take over the other
company of same product line this strategy will be used(Prajogo, 2016).
3.Implementation of leadership style and management practices can be achieved.
As Tesco is adopting the democratic style of leadership it will be implemented in the
company as employees are also involved in taking decision for the company. It can be achieved
as if the employees are also engaged in decision making process of the company they get more
involved in the company operations and take initiative to do work in the company which also
motivate the employees. For example:If Tesco involves employee in the activities of the
company they also feel sense of belonging in the company and feel good in the environment of
the company. So in Tesco every decision is taken with the involvement of the employees of the
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company which makes the friendly environment in the company(Leadership styles and
framework, 2019)
Tesco is adopted the reward practices in the company for example: Tesco is providing the
rewards to the employees for doing overtime in the company which motivates them to work
effectively and efficiently. It is also providing incentives on the basis of performance of an
employee. This management practice helps employees to engage more in the work of the
company. Tesco is achieved its objective as employees are getting rewards and motivated to do
work.
Tesco is using product differentiated strategy to increase sales in the market. As it is
dealing in the various areas so it tries to innovate its idea daily. It added many products in the list
of its product line and always try to innovate something different through which customers get
attracted towards it. Tesco is dealing in telecommunication area also through which it expands its
market at larger pace.
4.Recommendations regarding the leadership style, management practices and the various
strategies that can be undertaken by the Tesco
Tesco have to adopt the transformational leadership style as in this style the employees have to
adapt the changes in the organisation. It will be more suitable for the company like Tesco as it is
retailer market and deals in other areas also where at anytime changes can be made so if this
leadership style is followed employees are comfortable in accepting the changes in the company.
Changes in the company is necessary after a certain period of time so that employees are also not
get bored with their work and get more involved in the activities of the company. If the changes
are bring into the company they also take initiative and give new ideas for betterment of work in
the Tesco.
As Tesco is adopting the reward as the management practice in the company. It should
have to focus team efforts as management practice for the company. It enhances the employee to
work in team. It also helps in improving employee engagement activities in the work. If the
employees are working in a team which builds trust among the employees and helps in achieving
the objective of the company through teamwork. It also helps employees to interact with each
other and doing productive work. Team building activities also improves the communication
between the employees in the company. Employee relations are increased through the team
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work. If all the members in the team are doing efforts then it helps in achieving success for the
company(Best practices in business management, 2019)
Tesco should adopt the growth strategy in the company to enhance the productivity of the
company and to innovate new product .Growth in the business can be achieved only when
company have take strategic decisions for the company. If company increase its sales by
satisfying the needs and wants of the customers. Similarly, it should have to increase its brand
image in the market and to evaluate its brand positioning. Company can able to grow if it has the
ability to beat the competitor in the market. Always have to focus on the growth areas of the
company(Wong, W.H., 2017)
CONCLUSION
From the above study it can be concluded that various business is the trade of exchanging goods
and services for the purpose of earning profit and to achieve the objective of the company. There
are many factors which influence the functioning of the business like micro and macro factors
that can change the nature of modern business into the global environment. It is the responsibility
of the individual and the company to manage the social, cultural, economic and environmental
issues. Different business uses their own leadership style , management practices to achieve the
organisational goals. Hence, different business use different strategies to achieve the objective
and to earn profit.
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REFERENCES
Books and Journals
Bitektine, A. and Haack, P., 2015. The “macro” and the “micro” of legitimacy: Toward a
multilevel theory of the legitimacy process. Academy of Management Review,.40(1).
pp.49-75.
Gutierrez-Gutierrez, L.J., Barrales-Molina, V. and Kaynak, H., 2018. The role of human
resource-related quality management practices in new product development: A dynamic
capability perspective. International Journal of Operations & Production
Management. 38(1). pp.43-66.
Noe, R.A and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171,
pp.241-249.
Schaltegger, S., Hansen, E.G. and Lüdeke-Freund, F., 2016. Business models for sustainability:
Origins, present research, and future avenues.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Valtonen, K., 2016. Social work and migration: Immigrant and refugee settlement and
integration. Routledge.
Van Wormer, K. and Besthorn, F., 2017. Human behavior and the social environment, macro
level: Groups, communities, and organizations. Oxford University Press.
Wong, W.H., 2017. Macro-and micro-scale anthropogenic impacts on Chinese white dolphins in
Hong Kong: quantifying impacts of habitat loss and coastal tourism. HKU Theses Online
(HKUTO).
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature
review.Journal of Management Development.35(2).pp.190-216.
Online
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Best practices in business management. 2019.[Online].Available
through<https://online.stmary.edu/mba/resources/8-best-practices-in-business-
management>
Leadership styles and framework.2019.[Online].Available
through<ttps://www.verywellmind.com/leadership-styles-2795312>
Tesco plc.2019.[Online].Available through<https://www.tescoplc.com/>
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