Tesco Company Analysis and Leadership

This report provides a comprehensive analysis of Tesco, a retail company that has utilized democratic leadership style, role and power culture, administrative management theory, vision and mission. The report discusses how these factors have influenced the implementation of strategies within the firm and makes recommendations for improving leadership and management practices to change the organizational culture.

Context of Business-2

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 2 .....................................................................................................................................1
1. History and summary of business ......................................................................................1
2. leadership style, Vision, management practices and organizational culture utilising the
theories...................................................................................................................................2
3. Culture and management style influences functions and strategies ..................................3
4. Recommendations as improvement for leadership and management of firm ...................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business context is the discourse in which specialized knowledge is employed . This can
be individual company, larger business community or particular project (Amanchukwu, Stanley
and Ololube, 2015). This examination is based on Tesco. It is the British international groceries
as well as general merchandized retailer in the UK. Report will explain history and summary of
business. It will discuss leadership style, management practices and organizational culture
utilising by theories in the firm. It will analysis of culture and management style influences
functions and strategies.
PROJECT 2
1. History and summary of business
Tesco is the British international grocery store and general merchandized retail merchant
within the headquarters in Welwyn Garden City, England UK. By gross revenue, it is third
biggest retailer in worldwide and 9th biggest retailer in world assessed by revenues. It is the
market leader of groceries in United Kingdom. Company was founded in 1919 by Jack Cohen as
group of marker stalls. Selected organization had diversified into areas like retailing of books,
clothing, electronics, furniture, petrol, financial services and telecommunication as well as
internet services. Company has operated in different locations with 6569 shops in the 2018.
The first appearance of Tesco brand in 1924. Tesco declared another cost-cutting
initiatives which will close the food counters in 90 shops influencing across 9000 employees. In
the recent years, there are 460000 employees are working in the Tesco. Earlier UK
merchandiser, company has expanded internationally since the early 1990s with transactions in
11 other nations in the worldwide. Organization pulling out of the USA in 2013 but as of 2018
constants to look the growth and development. Tesco had marketplace capitalisation of across
£18.1 billion as of 22 April 2015, the 28th biggest of any firm with primary listing on the London
Stock Exchange.
In order to that, there are £57491 million and operating income total of £1644 million
within the 2018. The net income total of £1208 million in the 2018. The repositioned of Tesco
itself from being down market high volume low cost retailer to one designed to attract scope of
social groups through offering goods compassing from the low cost “Tesco Value” items to their
“Tesco Finest” range. The global expansion strategy of Tesco has expanded to the need to be
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sensitive to localised expectations in other nations by entering into joint ventures with localised
partners to form Tesco Lotus as well as by establishing the large dimension of localised
personnel to management orientation. Selected company has been utilised innovative utilisation
of technology which core part of expansion strategy of company. It was one of the first to build
self services boulder clay and utilisation of cameras to decrease queues.
2. leadership style, Vision, management practices and organizational culture utilising the theories
Vision and Mission:
The vision is an plan of aspects where the company wants to be. It gives criterion for
what the enterprise anticipation to accomplish. Tesco is the firm built around the consumers and
union. The vision is to leader path of the firm and strategical judgements it makes. The vision of
Tesco is to be most largely valued business by effective serving of consumers, communities in
which are operated, their loyal and committed colleagues as well as their shareholders (Anderson
and et.al., 2017). The vision of selected company has five elements that defines sort of firm it
aspires to be. These elements are such as followed: desired and required approximately world,
increasing business, full of chances, modern, creative and full of thoughts, winner localised
whilst implementing their abilities internationally, inspiring, earning trust and loyalty from
consumers, colleagues and people.
Management Practices:
Tesco has followed the different management theories for improving the practices and
behaviour of management within the workplace. Theories like scientific management,
bureaucratic management, behavioural management and so on. In this context, company has
followed the administrative management theory which involves 14 principles lie division of
labour, direction, order, equity, discipline, authority and responsibility, stability of Tenure,
remuneration, scalar chain, unity of command, centralization, unity of direction, Esprit De Corps,
subordinates of individual interest to general interest (Nawaz and Khan PhD, 2016). With the
help of this theory, company easily and effectively managing the people and their practices that
can aid to improve performance and behaviour of employees as well as Tesco.
Leadership Style:
Leadership is about effecting, motivative and exalting people. It is about coaching job and rising
people, treating the with respect but challenging them. Leaders try to make powerful group with
people committed to be objectives and goals of company. The kind of leadership can deviate
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calculating on the activity. Managers or leaders enables group to take charge of own decision-
making for many activities. Team leader will establish the goals but appoint team member to
decide ways of accomplishing the objectives. In this context, leaders of Tesco follow the
participative or democratic leadership style which is allowed to employees for involving in the
decision making process (Leadership and management at Tesco Incorporated, 2012). This
motivates them as they feel that they are part and parcel of great family manning the business.
This kind of leadership style is good for employees for involving the decision making like profits
and sales of the business.
Organizational Culture:
Organization culture is determined as fundamental values, premises and mode of
communicating which contribute to the specific social and psychological atmosphere of
company. It involves expectations, experience, values which guide to member attitude and
verbalised in member self image, internal working and communication with the external world.
The culture of company in which employees can expand both personally and professionally like
healthy mixture of work, play and personal growth (Capilla and et.al., 2016). This culture not
only promote life balance in their workers but also build healthy interpersonal relations and sense
of community between their team members. Their workers enjoy coming at work and also
working together. As per Employee Stock Ownership Plan, team oriented, power as well as role
culture of ownership adoptive invention, personal development and authorisation. This kind of
plan gives many recreational, team building and family positioned events which is more
advantageous for employees in relation to effective working in the Tesco.
3. Culture and management style influences functions and strategies
Organization culture and management style are very essential aspects for employees in
terms of performance improvement, productivity increases, motivation within the Tesco.
Therefore, company needs to focus on culture and leadership style improvement for changing the
environment of workplace. Also, organizational culture and management style are important for
operating the functions and implementing strategies effective within the business (Kitana, 2016).
If the company culture is very good in which employees feeling happy and working comfortably,
so that they are highly contributed in operating functions and implementing strategies in the
Tesco. Also, this can aid to improve the consumer services and their satisfaction which can aid to
improve the performance of firm.
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Management Style:
The management of Tesco has followed the participative or democratic style in which
they team members take participative role in the procedure of decision making. Everyone is
given chances to involve, thoughts are exchanged freely as well as boost the discussion
(Anderson and et.al., 2017). This kind of leadership or management style influences functions
and strategies of Tesco. Participative leadership style is one of the most impressive kinds which
leads to larger productiveness, better effort from team members and raised the team morale.
Powerful democratic leaders inspire trust and respect between subordinates. They attend to feel
inspired to take activity and contribute to the team. Great leader also take care to seek diverse
thoughts and do not try to condition dissident voices or offers less popular point of view.
Democratic leadership can advantage to better thoughts and more innovative solutions to
difficulties, because team members are pleased to share their ideas (What Is Democratic
Leadership?, 2018). Also, they feel more included and committed to tasks, making them more
liable to care about the outcome. This leadership style lead to larger productivity between group
members. With this, team members are highly motivated to operate functions and applying the
strategies within the Tesco. Also they make efforts to highly contribute in decision making
process of the firm.
Organisational Culture:
Tesco has followed power and role culture for effective functions and strategies in the
workplace. In power culture, focuses power to very advanced level or little group as well as its
controlled like web. This requires few conception and little government officials. The role
culture is based power of individual who delegates within the largely determined structure.
Therefore, manager needs to assign tasks according to the roles and duties which directly
influence on strategies and functions of company. Company raising positive environment and
healthy avenues of interaction and support with leadership structure (Alvesson and Sveningsson,
2015). In addition to that, Tesco make culture in which people of all kinds can come together and
thrive in rewarding, confirm atmosphere. Role cultures are largely bureaucratic with detailed
rules about interact people and departments with each other consumers and vendors. For this
culture to work well, market and competitors must remain pretty must stable, as they can not
react changes all that well. This can involve owning the market, so that they get to select what to
do or having good that is long life. Power culture tends to be leader who needs to lead firm and
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make it develop. It is likely to modification to another power as one person can not expand that
much but they will look into that later. The culture enables for quick modification mainly due to
fact that there are not many employees, thus it not lot to do to change.
4. Recommendations as improvement for leadership and management of firm
From the above study, Tesco should follow the transformational leadership style which
managers boost, inspire and motivate workers to creative and make modification which will aid
grow and shape upcoming success of the organization. Also, this leadership style should aid to
employees for effective working in relation to operate the functions and implementation of
strategies within the Tesco. Transformational leadership style also influence on the team which
have larger levels of execution and satisfaction than team led by other kinds of leaders (Naranjo-
Valencia, Jiménez-Jiménez and Sanz-Valle, 2016). In addition to that, company should make
efforts to improve the culture of workplace in relation to effective communication and functions
of firm. For improving the leadership effectiveness, company should follow strategies or ways
like find out best mentor, clarify the leadership vision, treat people right, learn from mistakes and
high committed for hard work. This can help to effective team work and accomplish the common
objectives by team members.
In order to that, company should follow different strategies for improving culture and
implementation of strategies within the firm. Strategies involves theories, techniques and
methods of management, leadership and culture for accomplishing the vision and mission of
Tesco. As well, company should also follow the person culture which is also called as market
culture (Amanchukwu, Stanley and Ololube, 2015). There are many ways of conduct the
business by members, treat worker and consumers as well as wider community are powerful
characteristics of person and market culture within the Tesco. In order to that, company should
follow different strategies for improving the culture of organization in which transparency, make
collaboration the work standard, set up channels for worker feedback and stick to core values by
the Tesco. Through these ways, company can be improved the culture and performance of
business. Effective organisational culture aid to increase the competitive edge within the industry
in which they operates.
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CONCLUSION
This report has summarised that history and summary of company which operates in
retail sector. It can be concluded that company has utilised democratic leadership style, role and
power culture, administrative management theory, vision and mission of selected firm. It can be
discussed that role and power culture as well as democratic leadership has influenced on
functions and implementation of strategies within the firm. Furthermore, report has completed
that make recommendations as improvement for changing the leadership, management practices
and culture of selected organization.
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REFERENCES
Books and Journals
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change
work in progress. Routledge.
Amanchukwu, R. N., Stanley, G. J. and Ololube, N. P., 2015. A review of leadership theories,
principles and styles and their relevance to educational management. Management. 5(1).
pp.6-14.
Anderson, H. J. and et.al., 2017. What works for you may not work for (Gen) Me: Limitations of
present leadership theories for the new generation. The Leadership Quarterly. 28(1).
pp.245-260.
Capilla, R. and et.al., 2016. 10 years of software architecture knowledge management: Practice
and future. Journal of Systems and Software. 116. pp.191-205.
Kagan, S. and Kirchberg, V., 2016. Music and sustainability: organizational cultures towards
creative resilience–a review. Journal of Cleaner Production. 135. pp.1487-1502.
Kitana, A., 2016. Overview of the managerial thoughts and theories from the history: Classical
management theory to modern management theory. Indian Journal of Management
Science. 6(1). p.16.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D. and Sanz-Valle, R., 2016. Studying the links
between organizational culture, innovation, and performance in Spanish
companies. Revista Latinoamericana de Psicología. 48(1). pp.30-41.
Nawaz, Z. A. K. D. A. and Khan_ PhD, I., 2016. Leadership theories and styles: A literature
review. Leadership. 16. pp.1-7.
Online
Leadership and management at Tesco Incorporated. 2012. [ONLINE]. Available through. :
<https://barbradozier.wordpress.com/2012/10/12/leadership-and-management-at-tesco-
incorporated/>.
What Is Democratic Leadership?, 2018. [ONLINE]. Available through. :
<https://www.verywellmind.com/what-is-democratic-leadership-2795315>.
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