Influence of Culture and Management Style on Business Functions and Strategies of TESCO

This report explores the influence of culture and management style on the business functions and strategies of TESCO, a leading retailer in the UK. It discusses the history and summary of TESCO, its vision, leadership style, and management practices, and provides recommendations for improvement.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................................3
1. A brief history and summary of the TESCO..........................................................................................3
2. Vision, leadership style, management practices and the organizational culture using theories.........4
3. How the culture and management style influence business functions and strategies of TESCO.........5
4. Recommendations...............................................................................................................................6
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................8

INTRODUCTION
Business is the way on buying and selling the product and services to the customers and business also give
their contribution in the economy of the country. There are several factors that help in maintaining the business for
the long run. This report includes the brief history and summary of the TESCO and the rationale of the TESCO and
the Vision, leadership style, management practices and the organizational culture of TESCO using different theories
and it also includes the influence of culture and the management styles in the growth of the business of TESCO and
some of the important recommendation of for the development of the company which helps in maintaining the
stability in the market and can give the competition to the other companies in the market.
1. A brief history and summary of the TESCO
TESCO is one of the top leading retailers of UK with the headquarters in Welwyn Garden City,
Hertfordshire and the largest food retailer across the world. It was started in 1919 by Jack Cohen and by his hard
work and dedication, TESCO is having more than thousands of stores in different countries. The working culture
of TESCO is very different from other countries and this makes it different from other companies. In 1930, TESCO
brand was regularly expanding and showing the great profit and in 1932, TESCO became the private limited
company and in 1947, TESCO was on the top of the share market and this was the great achievement of TESCO.
This organization also sell the non-food items such as cloths and the electrical goods etc., and there are about
326,000 employees are currently working with TESCO and having 2,138 stores and covering the major areas of
UK, Europe and Asia. TESCO is having the brilliant market capturing strategies and having the large consumer
base and this is the only reason, TESCO has recorded the revenue of 42,641 million Euros and raise by 8.1% every
year and the profit ratio is of about 2,648 million Euros and raise by 16.1% every year. TESCO has started their
business with the very small grocery store but after the regular expansion of the business in different countries, and
today, TESCO is counted among the leading retailers (Rosemann, Recker and Flender., 2015).
Rationale of TESCO
The purpose behind taking this company is that it makes the potential impact on the efficiency and
effectiveness of every organization and the way it makes the impression in the market is the best part of TESCO.
TYESCO faced several problems and closed 49 stores because the loss percentage was increasing day by day and
by this, about thousands of employees were affected and in January 2019, TESCO announced the cost cutting and
that would close about 90 stores and about 9,000 employees were affected. Ups and downs are always there in
every company but the thing is TESCO did not lose hope and makes better strategic planning for the organization,
and this is the reason of the success of this organization (Shi, Li and Bigdeli., 2016).
2. Vision, leadership style, management practices and the organizational culture using theories.
TESCO is known as one of the biggest game changer in the word because of its market planning and the better
strategic management. The several factors of TESCO are discussed as follows-
Vision
The vision of TESCO is very simple and unique and it states that it focused on the every small details that makes
that can make the company up and down and also give attention to the details that is useful for their customers that
helps in maintaining the long term relationship with the customers and TESCO is always willing to follow the
customers and their each and every needs and be the only retailer to help them out with every kind of help the

company and other’s need who are connected with this organization and the help can be of small or big and the
company will never go back from their responsibilities (Souto., 2015).
Leadership style
TESCO follows the democratic style of leadership which is also known as the participant leadership. This
leadership style gives the freedom and open platform to the other employees when taking any decision for the
growth of the company and their voice are heard during decision making. The leadership of the TESCO motivates
the employees to provide the qualitative product and services to the customers. The management of the TESCO
appoints the best leaders for their team members so that employee can learn something and the good leader always
impacts on the growth and contributes in the success and the achievement of the organization directly and
indirectly. The democratic leadership style of TESCO is adopted by the management that is imitated by every team
leaders and the skilled and innovative leaders are appointed by the senior management which is responsible for the
change in management. As the management style of TESCO is democratic so the information exchange is from top
to bottom and the benefits of this hierarchy is that everyone is free to speak with the senior management and their
ideas helps in giving the growth and success to the organization (Lankoski., 2016).
Organizational and management practices of TESCO
There are several theories related to organization and the management practices. The organizational and
management theories are used in different aspects in every business and many organizations adopt these theories to
become better and advanced in future but this demands some of the sacrifice in order to get the success for the
longer term. One of the best of organizational theory is in the finance department of TESCO where the people know
how to achieve the better economy and the profit and what are the rules they have to follow to get the success
(Harding., 2017). Sometimes, Human resource management department have to make the rules for the employees
and for the entire working culture of the company and this helps the company to improvise their weaker sections
and convert them into strengths. If any employee wants to fit into the working culture of the company according to
the organizational culture, then it may start to avoid the other areas of the business (Rekik, Boukadi and Ben-
Abdallah., 2017).
Management theory is also works in a same way and this theory give the infrastructure to the employees. This
theory may differ with the different and specific guidelines that have been presented by the organization so as to
complete the particular activity effectively and professionally. The company needs to move away from their
standards and execute the particular task. There are several other theories of the management that is system and the
contingency theory that focuses on the internal dynamics and the external determinants of the organizational
behavior and structure (Baker, Dant and Weaven., 2019).
3. How the culture and management style influence business functions and strategies of TESCO.
TESCO follows the top to bottom hierarchy approach because IT has bunch of layers and the juniors communicate
with lot of people because the employees go their senior management with the very small problems and the senior
management have to face such kind of issues but this is the wrong practice. The management of TESCO take care
of these things and also follows the top to bottom communication channel and this influence the business
management in a positive manner and also the brings the success in future. In the Top to bottom hierarchy, each
level is having one person to monitor and the person monitors each and every aspect of the communication till the
information completely goes down to every employees and if there is any type of communication gap or the error in
the message then the person reports to the management and again sends the message with the proper channel

without any error. This kind of practices helps the organization in maintaining their productivity for the longer term
(Dörndorfer and Seel., 2017).
TESCO also uses the role culture because TESCO is the big organization and there are several competitors of
TESCO are available in the markets that are always ready to downsize the organization but this can be avoided by
the complete contribution and support of the employees. In the role culture, particular roles are assigned to the
every employee and they completely focused on the goals and this increases the overall efficiency of the company.
The culture of TESCO is market oriented which means TESCO wants to maintain the integrity, respect and
responsibilities among consumers and this directly influence the market of this organization and more and more
customers will attract towards the company (Suder., 2015).
In other words, corporate social responsibilities are taken seriously and this helps in maintaining the long term
relationship with the customers. This is because of the stakeholders are completely involved in the business and
also helps in giving the success to the company. TESCO believes that every customers treat in a same manner
without any partiality and mechanical method so that the customers will be happy and the one is always responsible
for spreading the positive and negative reviews about the company but if consumers is happy with the services the
customer will always remain loyal for the company and this will be the biggest advantage for the company and by
this manner, the management of the employees, customers, operations, finance and the community are all balanced.
So by this way, the culture and the management styles influence the business functions and strategies of TESCO
(Swart., 2016).
4. Recommendations
As TESCO is the third largest retailer in the world and due to its different marketing styles and strategic
management, TESCO is the leading retailer of across different countries and controls over 30% of the UK market.
But in previous years, TESCO was running very low and that years was the lost years for this organization and the
market shares and stocks has been declined because the top leaders of TESCO left the company and this was the
main reason of declining of the company. The company should recapture the lost market and search the better
opportunities for the long term growth of the company. There are several other recommendations for TESCO that
are as follows-
 Money owed to the suppliers must be paid on time to maintain the long term relationship the marketers
because the suppliers are the key to success and the marketers and suppliers are the responsible for spreading the
positive views about the company and it helps in increasing the consumer’s base (Lassoued, Bouzguenda and
Mahmoud., 2016).
 TESCO must not take the unilateral deduction. Deduction must be bilateral so that any type of
miscommunication in the business can be removed by the bilateral to the multichannel methodology.
 The company should increase the premium and the different kinds of products so that it will be helpful in
attracting the customers.
 Further diversification of the company in the new and emerging market because it will be helpful in
capturing the new market and also the helps in identifying the new trends in the market and the current requirement
of the customers.
 A good leader is always responsible for the development and growth of the company because leader
always encourage the employees and if the employee are energetic and confident in their work then it will be more
beneficial for the company to achieve the target and TESCO should maintain this quality for the lifetime to remain

in the market for the longer term and also the marketing strategies of the company should be improved more so that
it will be beneficial for the company to achieve the future goals and can do preplanning and the planning is always
best as compare to plan at the time of emergency and the unsystematic planning always gives the bad results at last
(Bell, Bryman and Harley., 2018).
CONCLUSION
The whole file concludes about the different factors that can influence the market. This also summarize
about the history and the summary of TESCO and the rationale of the TESCO and the vision, leadership style and
management practices and the organizational culture of TESCO by using different theories and the analysis of
culture and management style that influence business functions and strategies by using different examples that can
influence the company culture and working environment of the company and at last, the recommendation for the
improvement of the company and this helps in maintaining the productivity of the company and also the give the
success to the organization.
REFERENCES
Books and Journals
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models. Journal of Business Research, 69(7), pp.2541-2550.
Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management, 51, pp.142-155.

Lankoski, L., 2016. Alternative conceptions of sustainability in a business context. Journal of cleaner
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Rekik, M., Boukadi, K. and Ben-Abdallah, H., 2017. An end-to-end framework for context-aware
business process outsourcing to the cloud. Computers & Electrical Engineering, 63, pp.308-319.
Suder, G., 2015. Regional trade agreements: Non-market strategy in the context of business
regionalization.
Swart, M.P., 2016. Proposing an experiential value model within the context of business tourism. In The
Handbook of Managing and Marketing Tourism Experiences (pp. 451-468). Emerald Group
Publishing Limited.
Lassoued, Y., Bouzguenda, L. and Mahmoud, T., 2016. Context-aware business process versions
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Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Dörndorfer, J. and Seel, C., 2017. A meta model based extension of BPMN 2.0 for mobile context
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Baker, B.L., Dant, R.P. and Weaven, S.K., 2019. An empirical examination of the dark side of
relationship marketing within a business-to-business context. In Handbook of Research on
Distribution Channels. Edward Elgar Publishing.
Harding, C., 2017. Sanction Accumulation in the context of business offending: The Full Force of the
Law?. European Journal of Crime, Criminal Law and Criminal Justice, 25(2), pp.163-187.