Context of Business in Tesco (pdf)

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
Organisational history and rationale for selection.......................................................................1
Organisational culture, vision, leadership and management practices .......................................1
Impact of management style and organisational culture on business .........................................4
Recommendations .......................................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Leadership refers to the skills to motivate and guide the individuals so that shared
business goals can be achieved. The management and leadership practices followed by the
organisation plays significant role in the success of organisations. These approaches are often
influenced and depends upon the organisational culture. Thus, it becomes very essential for the
organisations to analyse these managerial and leadership practices so that operational efficiency
can be improved and competitive success can be assured (Renz, 2016). The study will analyse
the leadership approaches and management practices followed by a retail business. It will also
describe the impact of culture and management on the success of organisation so that necessary
improvement strategies can be adopted.
Organisational history and rationale for selection
Tesco is one of the famous and successful multinational retailer dealing in general
merchandise and groceries. The organisation has its headquarter in England, United Kingdom
and in terms of gross revenue holds the third position in the world. The grocery stores of Tesco
are present in UK, Aisa, Thailand, Hungary, Ireland and other European countries. Though
effective management practices has helped organisation to sustain the high quality services from
long but increasing global and local competition has made it essential for the organisation to
review its leadership approaches and organisational culture (Oshagbemi, 2017).
Thus, the main reason for choosing the organisation as basis for this study is that it aims
at delivering high quality services and has potential to achieve its goals. However, there is need
that the organisation responds to global and technical changes by improved leadership
approaches (Klinga and et.al., 2016). Thus, its study can help to effectively review the role of
leadership on business.
Organisational culture, vision, leadership and management practices
The vision of Tesco is to ensure that customers are served complete value of and service
quality is excellence. The vision of the organisation is based upon various principles and
elements which are to establish itself all over the world as a highly efficient global service
provider, to enhance the customer loyalty along with the trust of communities and employees
and to serve communities with innovative ideas and practices (Herman, 2016). For achieving
this vision the management practices followed by Tesco are as follows:
Organisation culture:
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The organisational culture has significant impact upon the performance of employees.
The effective customer service has been one of the key reason for the success of organisation and
thus Tesco maintain a culture which maximises the employee productivity. For this purpose
Tesco culture appreciate the hard work its employee through suitable motivational and reward
system. The employees are allowed to have flexible working system so that staff members can
provide services to customers with more focus (Hallinger and Wang, 2015). To improve the
organisational culture Tesco also ensures that diversity is respected in its culture and thus there
is strict monitoring that no discriminatory practices are followed at the organisation. To enhance
the productivity of culture company also pay much emphasis on its recruitment, selection and
training process so that its workforce planning can deliver efficient planning. Another
characteristic feature of the organisational culture of Tesco is that it has effective communication
network. Employees as well as customers can find it very easy to share their concerns and
innovative ideas so that there is innovative and interactive culture within organisation. These
practices make the culture of the organisation highly productive and efficient in terms of output
and functional efficiencies.
Leadership approaches:
The leadership style followed by Tesco is one of its key strength in retaining its
efficiency in the competitive business environment. Currently the organisation is following
transformational leadership style. According to this leadership approach leaders of the
organisation works in collaboration with the other team members and specific vision is created to
accomplish those changes (Gopee and Galloway, 2017). In order to achieve those goals the
leaders inspire the employees so that commitment and contribution of the team members can be
increased. This leadership style has been very helpful for the organisation to achieve its vision of
providing quality services to its consumers. Since leaders and team members work together to
identify the business opportunities and risks there are higher possibilities of overcoming the
operational challenges for the business.
Another benefit of using transformational leadership is that it becomes very easy for the
Tesco to integrate change management. Since there is good integration of leaders with other
team members and situational analysis company find it easy to analyse the changes and to
incorporate them into functionality (Thorpe, 2016). For instance when online retailing trends are
in peak Tesco has found it easy to cope up with the changes and to implement them without any
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