Tesco PLC Business Report

This report examines the business context of Tesco PLC, a leading British multinational retailer. It analyzes the company's history, vision, leadership style, management practices, and various strategies implemented to achieve success. The report also provides recommendations for improvement in leadership styles, management practices, and strategies.

CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
1. Brief History and summary.....................................................................................................1
2. Vision, Leadership style, management practices and Various strategies................................2
3. Above have been achieved and implemented by the firm......................................................4
4. Recommendations for improvement ......................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business refers to buying and selling of goods and services in order to earn profits. Business is a
commercial activity done by people or group of people as an occupation. The project report in
context of Business will outline the Brief History and summary of the Tesco plc. The report will
further on the basis of its research of Tesco plc will explain about the vision, leadership style and
management practices of the company. By making use of various theories report will discuss
about the various strategies of Tesco plc. The report will analysis that how Tesco plc has been
achieved and implement the above strategies in their business. Lastly the report will provide the
recommendations for an improvement of leadership styles, management practices and the
various strategies in Tesco plc.
Main Body
1. Brief History and summary.
Tesco PLC
Tesco plc is a British multinational groceries and merchandise retailer in the United Kingdom.
The Company was founded in the year 1919 and its founder was Jack Cohen. Tesco plc
headquarters were located in Welwyn Garden city, Hertfordshire, England in United Kingdom.
At initially the company was a group of market stalls. Later in the year 1924 it was named as
Tesco after Jack Cohen purchased a shipment of tea from T. E. Stockwell. The first Tesco shop
was opened in the year 1931 which was located in Burnt Oak, Barnet. The Tesco is a listed
company on the London Stock exchange. The Tesco plc grew up rapidly between the year 1950's
and 1960's. On march 21 in the year 1997 Tesco plc purchased the retail arm of Associated
British foods. The Tesco plc became involved in the internet groceries retailing on July 21 in the
year 2001. The Tesco plc purchased the C Two Networks in Japan in the year 2003. In the year
2006 Tesco purchased 80 % stake of Casino's who was leading company in Prime supermarkets
in Poland. In the year 2013 the Tesco purchased restaurant and Cafe chain Giraffe with a
consideration of £48.6 million. On January 27 in the year 2017 Tesco plc had merged with
Britain's largest wholesaler Booker group. In today's date Tesco plc is one of the leading retailer
in the United kingdom with a market share of 27.4%.
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2. Vision, Leadership style, management practices and Various strategies
Vision of Tesco – The Vision of Tesco plc revolve around 5 elements.
 The Tesco plc wants and needed itself to be around all over the world.
 Tesco plc aspires to grow the business and to create business with full of opportunities.
 Tesco aspire for modern. Innovative ideas in its business.
 Tesco plc look for inspiring. Earning trust and loyalty from their customers, communities
and employees.
 The Tesco plc is aspires to be winners locally and to apply their skills on global level.
Leadership style in Tesco
Democratic Leadership – The democratic leadership style is a participative leadership style. In
this leadership style every member of business participially involve in decision making of the
Company. Every one has given the opportunity to participate actively in the business and to
share their innovative and creative business ideas to all group members (What Is a Democratic
Leadership?, 2018). The group members are encouraged and motivated during course of actions.
The Tesco plc use democratic leadership style in their business.
Management theories
 Scientific management theory – The scientific management theory is developed in 20th
century by Fredrick Taylor. Scientific management theory analysis and synthesis the
workflows. The main objective of this theory is to improve economic efficiency. This
approach uses data of Tesco for measuring the organisational efficiency. Through
observing and evaluating the process of Tesco in numeric terms, the mangers of Tesco
are able to distil the information. This approach is helpful for mechanized the operations
of Tesco plc.
 Systems Theory – System theory of management was founded by Ludwig von
Bertalanffy and William Ross Ashby between the year 1940's and 1970's. System theory
of management is an organisational theory. The System theory of management treats an
organisation either an open or closed systems. The Systems Theory is a process of
interdisciplinary study of systems. Every system is influenced by its environment. This
theory helps Tesco plc to identify its business environment and in accordance to that
Tesco makes business strategy (Renz, 2016). This theory helps Tesco plc for recognizing
the business goals and leveraging the patterns that Tesco operations follow.
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Management practices in Tesco
Customer relationship management – In order to support Customer relationship management
the Tesco plc offers loyalty card schemes to their loyal customers. Various discounting and flat
prices offer is being launched by Tesco plc to retain large number of customers. This helps Tesco
plc to drive sales growth. The Tesco has official website where they ask customers for feedback
in order to interact them about the customer needs and current demands with Tesco plc.
Corporate Social Responsibility – The Tesco plc takes initiative steps towards corporate social
responsibility. The Tesco plc shows very sensitivity in the matter of food wastage. They ensure
that no food for human consumption should go for waste. They upstream the waste they are
having from manufacturing and agricultural process. They also consume waste food which
comes from their distribution centres and operational activities (Hammad and Hallinger, 2017).
Tesco plc manage food surplus in their stores and provide that food to charities and communities
which works for the welfare of the society.
Supply chain management practice – Tesco plc has introduced lean management solutions into
their supply chain. The lean management system adopts path breaking techniques and systems
like point of sales data, continuous replenishment primary data. In order to make supply chain
more efficient the Tesco plc has introduced RF-ID technology.
Various Corporate Strategies of Tesco
 The strategy of Tesco plc is to create differentiated brand in the marketplace. The Tesco
plc Serve shoppers with a little better every day. Through improving food quality they
satisfy the customers needs. Tesco offers unique and finest food ranges such as Hearty
Food co. ready meals, and Fox & Ivy home-ware (Donate and de Pablo, 2015). Through
their love stories campaigns they had continued to celebrate the food their customer love
to make for their loved ones. Food quality is a powerful driver to snatch customers
towards supermarket choice.
 The strategy of Tesco plc is to reduced operating cost by 1.5 billion pounds. The Tesco
plc continuous encourage cost conscious culture in their organisation (Bush, Bell and
Middlewood, 2019). They save money to reinvesting it for the benefits of the customers.
The Tesco plc has simplified the shopping experience for their customers.
 The strategy of Tesco plc is to generate 9 billion pounds more cash from the operational
activities of Tesco. To minimise the environmental impact the Tesco plc has reduced
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transportation costs. Through ordering full lorry of products from their suppliers that
means rounding up the order. By forecasting orders they sort stock between lorry that
eliminate the cost of an additional lorry.
 To create innovation in the products of Tesco plc. The Tesco plc has innovated different
product ranges like they have launch exclusive Wicked Kitchen range of plant based
dishes. Tesco plc also introduced Tesco Now app which is helpful to deliver products
within an hour to the customers.
3. Above have been achieved and implemented by the firm.
The Democratic Leadership style is achieved and implemented in this way -
The employees actively take part in important decision making of Tesco plc. They share and
bring innovative and creative ideas with the management in order to lead company towards
greater profitability. The Employees are involved and actively participate in important projects
of Tesco plc (Northouse, 2018). The democratic leadership style helps the Tesco to resolve their
management problems and to motivate their employees to even perform better and this
eventually helps the Tesco plc to lead towards greater productivity.
The management practices of Tesco is being implemented and achieved as follows -
Customer Relationship management - The Tesco plc launch products according to customers
desired demands and preferences which is helpful for increasing customer satisfaction. The
Tesco plc often do product development to bring new and innovative products for customers
which provide familiarity with the customers choices (Jefferies, 2016). This helps Tesco plc to
built and maintain good relationship with their customers.
Corporate Social Responsibility – The Tesco plc is working for health concern issue in United
Kingdom. Tesco plc is cutting off sugar content with 5% from UK soft drinks. Tesco plc provide
free fruits for the children in their stores in order to control diabetes in United Kingdom. Tesco
plc is also working for environment safety and believes in sustainability development in United
Kingdom. Tesco plc has reduced carbon emissions by 3.1% in their manufacturing process.
Tesco plc has expanded MSC label scheme for pre-packed fish to control fish frozen and save
the environment (Klinga and et.al., 2016). Tesco plc is also taking initiative for human rights and
labour standards. They have 42 locally sourcing specialists across the world and have supporting
450,000 people through organising social programs.
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Supply chain management practice - The Tesco plc has doing standardised of payment terms
in United kingdom for improving supplier relationships. The Tesco plc has launch new supplier
helpline in Central Europe and new supplier website. As a result in 2016 the Tesco plc has
recognised as the most improved retailer.
Various strategies of Tesco is achieved and implemented in this way -
Through Marketing Tesco achieved and implemented various Strategies
Created new product lines – The Tesco has shifted towards new product line in farm brand
products. The branding includes beef, fish, pork and fruits in order to appeal cost conscious
consumers which don't value Tesco offering (Amanchukwu, Stanley and Ololube, 2015). Tesco
has reduced price of farm products to 15%. As a result the sales of fish is being increased.
Digital marketing – Tesco plc has spent 30% of its marketing revenue on Digital marketing. This
helps Tesco to reach highly targeted individuals. This boost the sales of products of Tesco plc
and lead Company towards profitability.
Customising media – The Tesco plc is applying direct customised marketing approach that is
appealing specific number of shoppers desires. Tesco plc has providing deep discounting to its
customers in order to increase the sales. The Tesco plc also deliver birthday wishes to the
customers through email.
4. Recommendations for improvement
Leadership styles
 To improve the leadership styles Tesco plc can adopt Transformational Leadership style
in its business. Transformational leadership style will help Tesco to navigates their
organisation towards improvement. Through changing existing thoughts, procedures and
organisational culture. It is required for changing old ways of doing things for a
betterment and to drive Tesco plc towards Success (Bush and Glover, 2016).
 The Tesco plc can also adopt autocratic leadership style to some extent where the
Organisation tends to lose its control (Donate and de Pablo, 2015). For providing
direction and proper guidelines to Employee's to perform in efficient way Autocratic
leadership style is helpful for Tesco plc at some extent.
Management practices and the various strategies
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The Tesco plc can go for Facebook advertising for promoting their Brand image and to expand
their business at very minimum cost. Through Facebook they can easily connect to large number
of customers. Tesco plc can also adopt content marketing to increase their sales. Tesco plc can
listed themselves at Google My business. Google My Business listing is helpful for ranking the
Tesco plc Business at top. The Google search engine will help the Company to show up the
Tesco plc at top.
CONCLUSION
The conclusion is been drawn from the above project report of Business that Tesco plc is a
leading grocery retailer in united Kingdom. It is been concluded that to drive a successful
business it is necessary to formulate Business Strategies like Tesco plc is made to retain
Customers and to lead company towards profitability. It is been concluded that to increase the
Brand image of Tesco plc in market they took various steps for built good Customer relationship
and to maintain corporate relationship management they are taking so many initiatives as a
result, Tesco plc is a leading retailer in the United Kingdom.
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REFERENCES
Books and Journals
Renz, D.O., 2016. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Bush, T., Bell, L. and Middlewood, D. eds., 2019. Principles of Educational Leadership &
Management. SAGE Publications Limited.
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.
Klinga, C. and et.al., 2016. Co-leadership–a management solution for integrated health and
social care. International journal of integrated care.16(2).
Bush, T. and Glover, D., 2016. School leadership and management in South Africa: Findings
from a systematic literature review. International journal of educational
management.30(2), pp.211-231.
Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in
knowledge management practices and innovation. Journal of Business Research, 68(2),
pp.360-370.
Northouse, P.G., 2018. Leadership: Theory and practice. Sage publications.
Hammad, W. and Hallinger. P. 2017. A systematic review of conceptual models and methods
used in research on educational leadership and management in Arab societies.School
Leadership & Management.37(5).pp.434-456.
Jefferies, Court, J., 2016. Leadership and management in UK medical school curricula.Journal of
health organization and management.30(7).pp.1081-1104.
Online
What Is a Democratic Leadership?, 2018 [Online] Available
through:<https://www.verywellmind.com/what-is-democratic-leadership-2795315 >
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