Leadership and Management at Tesco Inc

Context of Business report

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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1 Brief history and summary of the business...............................................................................3
2. Analyze the organizational environment of the selected business..........................................4
3. Analyse the organizational culture and management style affect their business.....................5
4. Recommendations for the business to improve its organizational management and
leadership style............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In this report it discusses leadership and management at Tesco Inc. and Tesco is considered
to be the largest retail chain in the UK. The company's mission is to ensure that value is created
for customers to build long-term customer loyalty. Tesco integrated relies on two important
business solutions. The first solution is always wise to treat customers as someone wants to be
treated. Second, it's always good to try to be soft to our customers. The main purpose of this
work is to discuss leadership, management practices, management integration, organizational
culture, and the style of power in Tesco.
TASK
1 Brief history and summary of the business
Tesco is one of the leading retailers in the UK and one of the largest retailers in the world.
The Tesco store was founded in 1919 when Jack Cohen began selling additional foodstuffs from
kiosks at Brixton's East End store, located in London. On the first day, Mr. Cohen made a profit
of £ 1 on sales of £ 4. However, the Tesco brand became visible after five years and later in
1924, when Mr. Cohen bought tea from Mr. T. E. Stockwell. What was later combined with the
initials to form Tesco and Mr. Cohen opened the flagship Tesco Store at Burn Oak, North
London. In 1930, the Tesco brand continued to grow and Mr. Cohen decided to set up a
headquarters in north London, and in 1932 Tesco became a limited liability company (PLC). In
1947, Tesco Ltd shops rose to the top of the stock market at a price of 25 pence. They also sell
non-food products such as clothing and electrical equipment. Tesco employs around 326,000
people and operates around 2,318 stores in the UK, Europe and Asia. According to
tescocorporate.com, the Group achieved sales of £ 42,641 billion in 2007, an increase of 8.1%
from 2006. (Bonnitcha and McCorquodale, 2017) mentions the company's net profit of £ 1.892
million for fiscal year 2007, up 20.5% from 2006.
Tesco opened a company with a wholesale store, but later developed into a market with a
wider choice of retailers. Tesco also enhances business with a variety of services. Which
includes insurance, travel agents and telecommunications, finance and other products? Tesco
also has an influential gasoline retail business. Tesco, however, is mainly present in
supermarkets as well as hypermarkets, because they are very different because of revaluation.
The company has continuous operations, which constantly cover various facilities and sales of
gasoline through the Tesco Express fascia, their small roads on Tesco Metro, supertsentri at

Tesco Extra and non-specialists through Tesco Homeplus. Their financial services consist of
financing Tesco's online financial services and shipping them.
2. Analyze the organizational environment of the selected business.
Leadership style in Tesco - Tesco runs a form of democratic authority. This is because all
employees are encouraged to participate in the decision making process (Leadership Styles,
2016). Whatever executives do, they are guided by decisions that motivate Tesco employees to
be motivated. This form of motivation is inherent and leads to higher returns on capital. As
mentioned earlier, Tesco Inc. has proven to be the most durable retailer in the UK. Chief
Executive Officer Signatory Terry Leigh is the driving force behind the company's success. The
Chief Executive Officer is identified as a visionary leader after reminding companies to change
strategic organizations. This is due to the fact that customers are focused. Therefore, he does not
recognize the close relationship between employees and customers. The company's CEO is very
confident that leadership style develops when employees are satisfied because nothing is
contradictory. Therefore, he believes that as a leader, it is important to give your employees the
work where they are interested. In addition, they must be treated with respect to leaders who
provide the assistance needed to solve problems and Leahy was an official officer when came to
Tesco. As a result, he was able to lead his team by using the power given to him by the company.
Therefore, company management is active because all employees are involved in the decision
making process. This motivates them because they feel they are part of a large family that runs a
business. Therefore, the Chief Executive Officer has successfully appointed executives to assist
organizational change. This has increased the effectiveness of the management process.
Tesco management practices- Tesco's vision is to open more business opportunities in the UK
and Europe. The management of the company is based on an organizational structure consisting
of five functional departments. The department is divided into finance, administration, human
resources, marketing and research and development. Each department is managed differently
because there is a separate office separate from the others. As a result, Tesco uses the goal
management concept. This is because the goals of the company are limited in time, meaning they
are dependent on employee ratings. As a result, each supervisor is given different responsibilities
by the supervisor. For example, at a certain point in time, the supervisor can set a goal so that the
number of customers increases to a certain percentage over a period of time

Organizational culture - Tesco culture is market oriented. This means that they are committed
to compliance, integrity and accountability throughout Tesco's operations. In the real sense,
corporate social responsibility is given strong consideration. It is assumed that all stakeholders
are the most important for the success of the company. As mentioned earlier, Tesco believes that
we must treat customers as we want. In addition, Tesco believes that customers are friendly
because they are the key to business success (Cruz and Dominguez, 2016). These are the two
basic values that determine Tesco's culture. In addition, Tesco management uses a management
model that ensures balanced management.
3. Analyse the organizational culture and management style affect their business
The organizational structure and culture are interdependent in my opinion. Therefore,
organizational culture and organizational structure have similar characteristics in business
organizations. They can state the following consequences for organizational change and
organizational structure.
Employee Productivity - If Tesco management is not satisfied with Tesco's performance, it
might consider changing the brand's organizational structure. This will enable a smoother brand
business, which will increase brand productivity.
Empowering Employees - Moving certain responsibilities to subordinates will motivate them to
work better in the workplace. In this way, employees are responsible for their implementation
and support them in times of crisis (Gokcen and Teraman, 2018).
Customer Service - Tesco focuses on providing world-class passenger services and strives to
meet expectations. Therefore, the organizational structure can provide better customer service to
its users.
Culture - Organizational culture has a profound impact on organizational brand performance ().
As a global brand, Tesco relies on teamwork and collaboration between employees in daily
business operations.
Factors that influence employee behavior at work
The following are attributes that affect the behavior of Tesco employees.
 Work safety - Safety of employees at work is a key factor in workplace behavior.
Employees feel safe and work better when they know their work is safe for a certain
period of time. An organization that provides worker safety for its employees creates
loyalty to brand employees

 Work Environment - Tesco offers employees a better work environment than
competing brands in the global market
 Compensation - This brand offers outstanding compensation to its current employees. It
also creates incentives for employees to work by encouraging them to work better.
 Employee Expectations - Tesco employs a large number of qualified employees with
expertise in various fields (Dissanayake and Harun, 2016). Money is not always the main
concern of these people. Self-esteem and the achievement of individual goals are still
very important. If employees do not meet these expectations, their performance may be
difficult.
4. Recommendations for the business to improve its organizational management and leadership
style.
The following are the recommendations for the Tesco to improve its leadership and
management style in the organization
Strategic management - Strategic management is a process where management comes with
strategic ideas and makes effective decisions on goals and plans to achieve the goals and
objectives for the future of the organization. Strategic management consists of making decisions
and actions to formulate and implement strategies that will provide superior competitive
consistency between the organization and its environment in order to achieve organizational
goals.
Leadership - Leadership is the union of a group of people and their focus to achieve a common
goal. It is an environment where company employees can realize their individual and collective
potential. There are three basic types of leadership, namely: authoritarian leadership, also known
as dictatorship and this type instructs followers to perform various tasks, democratic leadership
allows groups to participate in the decision-making process and the final direction of Laissez
Faire (Khilji and Schuler, 2017).
Relationship between strategic management and leadership - Strategic management focuses
on strategic decision making and leadership implements management decisions through effective
communication with employees. Management performance assessment of employee
performance is carried out for them, controlling and distributing tasks to their employees and
also motivating and appreciating good performance through recognition and leadership by
example, which enables the quality of work to be produced. Strategic governance is the mission,

values and policies of the organization. They are strategic thinkers and are responsible for
strategic decisions and among them they appoint CEOs, MDs, Presidents, etc. to run the
organization (Mitonga-Monga Flotman and Cilliers, 2016). These individuals are considered key
players in strategic management and bear the greatest responsibility for the growth of the
company. Business success is first based on good quality management and then on performance
efficiency, which depends on leadership, influence, communication skills and motivation
CONCLUSION
This research shows that Tesco's success shows that a company's culture, structure, and style
are flexible, flat and decentralized, that everyone has the right to speak and hear the voices of
employees. Focusing on their long-term strategies has helped strengthen them further in the
future. However, because of Tesco's democratic leadership, the company continued to lead the
retail market.

REFERENCES
Books and Journals
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Principles on Business and Human Rights. European Journal of International Law, 28(3),
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Cruz, G. and Dominguez, C., 2016. How can we prepare future engineers to the labour market?
A University-Business Cooperation project using Context and Problem-Based Learning
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Dissanayake, K.M. and Harun, R.N.S.R., 2016, November. Perception of students and teachers
over ESP curriculum design for a business management programme in the Sri Lankan
context. In Proceedings of English Education International Conference (Vol. 1, No. 2, pp.
302-309).
Gokcen, G. and Teraman, O., 2018. Importance of Synergistic Value in the Context of Business
Combination: A Case Study From Turkey. Economics, 6(1), pp.49-60.
Karnitis, G. and Karnitis, E., 2017. Sustainable growth of EU economies and Baltic context:
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Khilji, S.E. and Schuler, R.S., 2017. Talent management in the global context. The Oxford
Handbook of Talent Management, p.399.
Mitonga-Monga, J., Flotman, A.P. and Cilliers, F., 2016. Workplace ethics culture and work
engagement: The mediating effect of ethical leadership in a developing world
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