Tesco Plc Management Practices and Leadership Styles

The assignment provided is a study on Tesco plc, a leading British multinational retail company. The report focuses on the company's management practices, including democratic, autocratic, and transformational leadership styles. It also discusses the importance of customer satisfaction, market share, and competitive advantage. The document includes various management strategies and theories implemented by Tesco to achieve organizational goals and objectives. Additionally, it provides recommendations for further improvement of the company.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.) Brief history and summary of Tesco and the rationale..........................................................3
Rationale of the study..................................................................................................................3
2.) Assessment of the vision, leadership style, management practice and various strategies and
theories........................................................................................................................................3
3.) Design and development of the organization........................................................................6
4.) Recommendations and improvements...................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
This study will highlight, brief history and vision of the Tesco company. This study also
includes leadership styles, management practices and various strategies and theories. It also
includes design and development of the organization with improved recommendations for
effective results and outcomes of the company, with improved operational efficiency,
performance and productivity.
MAIN BODY
1.) Brief history and summary of Tesco and the rationale.
Tesco plc. is on of the leading British multinational retail company which was founded in
the year 1919 by Jack Cohen. The Tesco company is headquartered in Shire Park, Welwyn
Garden City, Hertfordshire, England. Tesco plc. Has operations in United Kingdom, Republic of
Ireland, India, Czech Republic, Hungary, Slovakia, Japan, Poland, Malaysia and Thailand. Tesco
is one of the third largest retail company in the world in terms of gross revenue and ninth largest
retail company as measured by revenues. Tesco is a market leader of groceries in United
Kingdom with market share of around 28.4% and over 6800 shops around the world. Tesco plc.
is one of the diversified industry which mainly deals in clothing, electronics, toys, groceries,
petrol, software, telecom, financial services and internet services (Wood, Wrigley and Coe,
2016).
Rationale of the study.
The main focus behind choosing Tesco plc. is that it is one of the leading company and
operates its business in United Kingdom and rest of international. Tesco offers wide range of
products ranging from low value Tesco products to high value Tesco products. Tesco plc.
follows hierarchical organizational structure, which helps in systematic implementation of
various management theories, leadership styles and management theories, practices and
strategies in the dynamic structure which leads to higher operational efficiency and productivity.
2.) Assessment of the vision, leadership style, management practice and various strategies and
theories.
Vision of Tesco plc.
Tesco plc. aim at being one of the most highly valued business to serve the customers and
communities in which they operate. Tesco vision is segregated into five core elements that

mainly comprises of: expansion of business around the world, growing business with full of
opportunities, implementation of modern and innovative ideas, gaining trust and loyalty from
customers and winning local market by applying the skills which leads to higher operational
efficiency, performance and productivity (From vision, mission and values to KPIs at Tesco,
2013).
Leadership styles
Leadership style refers to characteristics and behaviour of leaders when directing,
guiding, motivating and managing group of individuals effectively and efficiently. Autocratic leadership style: Leaders provide clear role to its subordinates. In this the
leadership style, effective decision is made by leaders without taking any input of the
employees of the organization. Tesco plc. use autocratic leadership style to motivate
employees of the organization who are unskilled to achieve desired goals of Tesco plc. Democratic leadership style: Tesco plc. opt for democratic leadership style where they
entertain ideas and opinions of employees which helps in effective decision making
which leads to higher quality improvement. This also helps Tesco plc. to keep employees
engaged and motivated to accomplish the desired task. Tesco plc uses critical success
factor which helps in guiding employees towards team work and customer satisfaction
(Holten and Brenner, 2015).
 Transformational leadership style: Tesco plc. Leaders aim at helping employees of the
organization to commit towards achieving organizational goals. This leadership style
helps in finding effective solution to the problem to improve the overall efficiency of the
organization (Leadership and management at Tesco Incorporated, 2012).
Management practices
Tesco plc. Is a growing retail industry and aim to focus on continually developing
operations of business effectively and efficiently. Tesco plc. also aim at developing lean
management solution for effective supply chain which leads to higher operational efficiency,
performance and productivity which helps in achieving organizational goals and objectives of
Tesco plc. It is one of the leading retail company which aims at engaging workers to perform the
task with more enthusiasm which leads to higher productivity (Albuoul, 2017). Tesco plc. Also

aim at rewarding efforts of employees to make them feel more valued and helps build trust and
loyalty of employees. Management practice helps in developing clear sense of company's vision
with effective delegation of responsibilities which helps in achieving strategic goals of the
business with clear set of directions in an effective and timely manner. Tesco plc. aim at
developing work ethics by respecting every cultural diversity. Another management practice
followed by Tesco plc. Is that they aim at developing team efforts who work together to achieve
common goal of the organization. Tesco plc. also aim at giving regular training to the employees
of the organization to achieve effective results and outcomes in a coordinated manner (10 best
management practices for work processes, 2019).
Strategies
The core strategy of Tesco plc is to improve the competitiveness of the organization with
increased market share by expanding business to different geographical areas of the world. The
another major strategy of Tesco plc is to develop higher customer base by competing with
smaller chain and shifting towards digital marketing by customizing and personalizing the
marketing which helps attract large number of customers from across the globe. Tesco plc aim at
conducting management development program, where they aim at improving skills and
knowledge of employees which leads to higher performance and productivity. Tesco plc aim is
to focus on customer satisfaction and has committed to invest £1 billion by making goods
available on the large scale effectively and efficiently which helps Tesco plc in maintaining
competitive advantage (Renko and et.al., 2015). Tesco plc aim at creating differentiated brand
image which helps in developing long term value for the business. It also aims at reducing
operating cost of the business by £1.5 billion which leads to higher profit margins. Tesco plc
aim at maximizing the value from property by effectively optimizing the freehold and leasehold
property which leads to higher increase in rental incomes. Tesco plc also aim at developing
innovative and improved quality products to the customers at varied price range which helps in
increased operational efficiency and productivity.
Theories Employee engagement theory: Tesco plc. aim at developing strong relationship between
employers and employees who aim to focus on achieving organizational goals and
objectives effectively and efficiently on a timely manner. Tesco plc also aim to retain

prospective employees in the organization who have desired skills and knowledge and
aim to motivate employees to accomplish task effectively.
 Motivational theory: Tesco plc aim at increasing satisfaction of employees by motivating
and guiding them to perform particular task effectively and efficiently which helps in
achieving organizational goal in a systematic and timely manner. Tesco plc aim at
rewarding employees for their work and also focus on maintaining work life balance
(Iqbal, Anwar and Haider, 2015).
These theories and strategies implemented by Tesco plc helps in achieving higher market
share which leads to improved customer base and higher profit margins. Implementation of
effective strategies and theories helps in meeting stakeholders interest. Tesco plc aim to focus on
customer satisfaction which helps in retaining prospective customers which leads to higher
customer base and profit margins. Tesco plc also work in compliance with various legal laws
and policies which satisfy the interest of shareholders. Implementation of motivational theories
helps Tesco plc in retaining prospective and skilful employees in the organization and higher
employee satisfaction.
3.) Design and development of the organization.
Tesco plc is one of the leading retail multinational company who has operations all across
the globe and has market share of around 28.4% in the United Kingdom. Management of Tesco
plc. aim at developing employee engagement practice in the organization by giving them proper
and effective training to improve their skills and knowledge to achieve organizational goals and
objectives which leads to higher operational efficiency, performance and productivity. For
instance, Tesco plc improve skills and capabilities of employees by effectively implementing
personal development programs into the organization which helps in achieving organizational
goals with higher efficiency and productivity.
Implementation of motivation theories helps management in appreciating employees of
the organization by rewarding them which boost up their confidence and loyalty towards
company. For instance, Tesco plc aim at motivating employees by enhancing and appreciating
each employee of the organization by rewarding and recognizing them which leads to higher
operational efficiency (Eilon, 2018).

Development of varied range of products according to the needs and want of customers
which helps in customer satisfaction and eventually helps in retaining old customers and building
new. For example, Tesco plc develop varied range of products and mainly deals in clothing,
electronics, toys, groceries, petrol, software, telecom, financial services and internet services at
varied price range varying from high premium priced Tesco products to low priced Tesco
products to attract large number of customer base from all over the world. Tesco plc also offer
loyalty contract to its customers where they earn points every time they shop from Tesco plc.
Tesco plc also aim at maintaining its competitive advantage in the market by effectively
expanding its business by reaching large number of the customers all across the globe which
leads to higher market share. For example, Tesco plc develop varied range of products with
improved and innovative products which leads to higher operational efficiency. It also aim at
improvising it's supply chain to effectively distribute products to its prospective customers on
time.
Tesco plc aim at expanding its business by effectively managing the growth opportunities
of the organization by implementing effective strategy by giving them discounted products by
introducing royalty club card to increase the market share and customer base of the organization.
Tesco plc must focus on democratic style of leadership to effectively entertain ideas and
knowledge of employees which will help in decision making. This helps Tesco plc to focus on
building and producing more innovative and creative products to attract large customer base.
Tesco plc must also focus on engaging employee thoughts and ideas and effectively applying
management practice to effectively accomplish organizational goals and objectives on a timely
and systematic manner.
4.) Recommendations and improvements.
Tesco plc must use various social media platforms like Facebook, Instagram, YouTube
and twitter to improve the marketing strategy of the company which helps in reaching large
customer base across the globe and also attract more people to make them aware about the
improved quality goods produced by the Tesco plc. Implementation of improved technology and
online digital distribution of goods by developing personal website and collaborating with
various other online shopping sites by making goods available online which leads to higher
customer base and customer satisfaction (Bilińska-Reformat and et.al., 2019).

Tesco plc must also focus on organizing various training programs which helps in
developing personal and professional skills, knowledge and capabilities of employees which
leads to higher employee satisfaction and loyalty towards Tesco company. It must also focus on
understanding psychological needs and wants of employees which helps in retention of
prospective employees. Tesco plc must develop innovative and quality products to maintain
competitive position in the market which leads to higher growth and expansion of the company
with increased market share and profit margins. Tesco plc must focus on implementing effective
leadership styles which helps in guiding employees of the organization to work in a coordinated
manner to achieve organizational goals and objective of the company on a timely manner.
CONCLUSION
From the above study it has been summarized that, Tesco plc is one of the leading British
multinational retail company who has operation all across the globe. This study also highlights
vision of the Tesco plc which is to focus on customer satisfaction and achieve higher market
share and competitive advantage with increased market share and customer loyalty. Tesco plc.
Aim at democratic leadership style where they entertain ideas and opinions of employees for
effective decision making. Sometimes they also implement autocratic and transformational
leadership style according to the particular situation. Further it also includes, various
management practice, strategies and theories which are implemented by Tesco which help in
achieving organizational goals and objective. It also highlights, recommendations for further
improvement of the Tesco plc.

REFERENCES
Books and journals
Albuoul, B.Z., 2017. Management Practice. International Journal of Contemporary Research
and Review. 8(10).
Bilińska-Reformat, K. and et.al., 2019. Sustainable development concept and creation of
innovative business models by retail chains. International Journal of Retail &
Distribution Management.47(1).pp.2-18.
Eilon, S., 2018. Management practice and mispractice. Routledge.
Holten, A.L. and Brenner, S.O., 2015. Leadership style and the process of organizational
change. Leadership & Organization Development Journal.36(1). pp.2-16.
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.
Renko, M and et.al., 2015. Understanding and measuring entrepreneurial leadership
style. Journal of Small Business Management.53(1).pp.54-74.
Wood, S., Wrigley, N. and Coe, N.M., 2016. Capital discipline and financial market relations in
retail globalization: insights from the case of Tesco plc. Journal of Economic
Geography.17(1).pp.31-57.
Online
10 best management practices for work processes. 2019. [ONLINE]. Available
through:<https://www.promapp.com/resources/10-best-management-practices-for-work-
processes/>
From vision, mission and values to KPIs at Tesco. 2013. [ONLINE]. Available
through:<https://www.performancemagazine.org/from-vision-mission-and-values-to-
kpis-at-tesco/>
Leadership and management at Tesco Incorporated. 2012. [ONLINE]. Available
through:<https://barbradozier.wordpress.com/2012/10/12/leadership-and-management-at-
tesco-incorporated/>