Tesco Retail Supermarket Strategic Analysis

The assignment analyzes the retail supermarket business of Tesco, focusing on leadership styles and management practices. It recommends adapting autocratic leadership to achieve great results and outcomes, emphasizing employees' engagement and implementing acquisition strategies to gain competitive advantage. The document also provides a brief explanation of different leadership styles, management practices, and strategies.

INDIVIDUAL ESSAY

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Brief history and summary of business and rationale of choice............................................3
Vision, leadership style, management practices and various strategies of business..............4
Analysis of implementation of various practices and strategies............................................6
Recommendation for improvements......................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
Every business organisation aims at adopting best leadership style and management
practices so that it can achieve great results and outcomes. The management practices,
leadership styles and various strategies adopted by organisation helps in motivating and
encouraging employees so that they come up with innovative ideas and improve their
performance level. Tesco is a British multinational company that deals in retail sector. It
offers wide range of products and services including general merchandise and groceries. In
the present report, a brief explanation of business is given. Further report explains about the
management practices and leadership styles of the selected business. Analysis of
implementation of various strategies and practices in business is done further.
Recommendations are also provided to bring further improvements.
MAIN BODY
Brief history and summary of business and rationale of choice
Tesco is a retail sector business that is considered as largest commercial and grocery
store in terms of both number of stores and annual income. This is a multinational company
based in UK and operating in many countries around the world including Asian region and
Europe. Tesco Company was founded by Jack Cohen who used his good management skills
and selling skills and opened first official store in the year 1930. The company started for
development and growth very dynamically from since then. John Cohen successfully started
up approx hundred more retail stores within the next decade. Tesco effectively showed its
expansionary zeal by purchasing up the rivalry stores. The business idea of John Cohen was
easy and resulted in quick and instant success. Tesco focused on building good and cheaper
supply system so that they can ensure reasonable and good prices for the products.
In the 1960s, grocery stores have started up for creating first supermarkets and then
further to hypermarkets that ended up providing almost everything that can be bought, such
as, from furniture up-to car tires. At present times, Tesco has almost 5000 retail stores in the
world-wide. Finest brand of Tesco was established in the beginning of 2000s and since from
then it is unstoppable. Tesco Bank was launched in the year 2009 as a joint venture business
with the Royal Bank of Scotland.
Tesco also started the business expansion plans having big plans for moving to
American markets as well. The company focused on bringing diversified products in its
product list that included offering bio-product and also advocating healthy lifestyle. Tesco
also focused on diversifying its retail stores that resulted in starting of small and more
targeted shops like Tesco Metro or Tesco Express. These shops are for those people who are
travelling or commuting within the city. Tesco being considered as large retail and
commercial store chain business proved for being successful in various European countries

that includes specially countries of former Eastern Bloc. It includes Hungary, Slovakia and
Poland.
Tesco deals in retail sector that is very wide in nature. Thus, this is the reason to select
the Tesco organisation. Tesco enjoys long-term success and is considered as focused
business. It is the largest chain retail business of the world, thus, this organisation is being
chosen. Tesco aims at providing effective services and shopping experience to every
customers including both online and in-store.
Vision, leadership style, management practices and various strategies of business
Tesco enjoys effective and long-term success and it is a focused business. Tesco have
a core vision which generally remains constant while other aspects continually changes
according to the changing world (Li, Castaño and Li, 2018). Vision statement of Tesco is,
“To be the most highly valued business by: the customers we serve, the communities in
which we operate, our loyal and committed colleagues and of course, our shareholders”. The
vision statement comprises of five different elements that describes sort of organisation it
aspires to be. Mission statement is referred as core purpose and Tesco describe it as, “We
make what matters better, together.” The goals, mission and vision statement are all
interrelated which states about what company is seeking for achieving (From vision, mission
and values to KPIs at Tesco. 2013).
There are different styles of leadership that can be adapted by Tesco to bring
effective results and outcomes. Different leadership styles are adopted by leaders of Tesco in
different organisational situations, and explained in brief as follows:
 Coach: Leaders with this style focus on recognizing the strength and weakness of
team members and employees and also helps them for bringing improvements. Coach
leaders have skill and knowledge for setting clear goals and creates positive and
motivational working environment.
 Servant: Leaders with leadership style focuses on building trust and morale of
employees and motivates them effectively (Basran and et,al., 2018). Servant leader
aims at making employees feel professionally and personally fulfilled. This leadership
style puts emphasis on motivating and encouraging employees and on effectively
collaborating them.
 Autocratic: This is called as authoritarian leadership style and leader with this style
greatly focuses on end results and outcomes. Tesco adapt to autocratic leadership
style when following some strict guidelines or in case of compliances issues.

Autocratic leaders do not involve employees in decision-making process and make
decisions on their own.
 Laissez-faire: Leaders with this style aims at delegating task to employees or team
members and provides little supervision to them. Laissez-faire leaders do not much
focus on managing employees but on dedicating other tasks or projects. Tesco adapts
to this style when certain task involves well-trained and highly experienced
employees who requires less oversight and guidelines.
 Democratic: Leaders with this style are more focused for considering feedback from
employees and team members before making any decision. Democratic leader focuses
on engaging employees into business activities and operations and also ask for their
views, ideas and opinions in decision-making process (De Ruiter and et.al., 2018).
Leaders with this style tend to bring creativity and innovation as it leads to bring
workplace satisfaction on the side of employees.
Management practices aim at improving performance level of employees so that it can
bring improvements in productivity and profitability. Tesco aims at adapting best practices so
that it can achieve great success and results.
 Engaging employees: This is considered as the best management practices as it leads
to bring great results and outcomes, Engaging employees in business operations and
activities leads to effectively motivate them. Motivated employees tend to focus on
putting their best efforts in the business operations thus; it leads to bring great results.
 Reward effort: Employees feel motivated and encouraged when their efforts in
certain task get recognized (Li, Castaño and Li, 2018). Therefore, making employees
feel valuable and rewarding them for their efforts tend to bring improvements in their
performance level and in overall business performance.
 Selecting and recruiting best candidates: Management of every organisation is
expected to bring talented and knowledgeable candidates who can bring innovation
and creation in business activities and operations. Selecting and recruiting talented
candidates for the right position within the organisation can help in improving the
performance level.
 Flexible working: Managers with flexible approach allows and motivates employees
for working in their own individual style. Flexible working practices tend to motivate
and encourage employees and they come up with innovation and creation in the
business activities and operations.
Different business strategies are explained as follows:

 Price skimming strategy: This strategy ensures to bring great profits and revenue.
This involves setting high prices for products and services in the initial time period so
that it can increase brand awareness (Tortorella and et,al., 2018). This strategy also
allows business for targeting multiple segments of customers and for generating
higher revenue.
 Acquisition strategy: This strategy refers that acquiring or purchasing another
company or even one of the product lines so that company can expand its business
and also drive profitable and sustainable growth.
 Differentiation strategy: This strategy enables organisation for positioning
themselves as the industry leading providers for innovative and unique products or
services.
Analysis of implementation of various practices and strategies
Tesco is a multinational corporation that operates number of chain restaurant stores,
thus, it requires large number of motivated and satisfied employees (Rahman and Najwa,
2018). Different management practices and effective leadership styles are adapted and
implemented by Tesco retail stores in order to bring great results and outcomes.
Tesco aims at implementing best leadership styles, management practices and also
different strategies which helps in improving the employee’s performance level and
efficiency in business operations and activities. Leaders of Tesco retail stores focus on
implementing and adjusting their style, practices and business strategies according to the
demands of situations.
Servant leadership style: Tesco implements this leadership style so that it can build
morale of employees and help them for re-engaging with their activities (Li, Castaño and Li,
2018). This leadership style effectively and efficiently motivates employees and they tend to
focus on putting their best skills and knowledge in business activities which brings
improvements in overall business performance.
Democratic leadership style: Leaders aim at encouraging employees to take
effective part in business activities and operations. Tesco implements this type of leadership
style so that it makes employees feel satisfied in the workplace and organisation. Democratic
leaders often credited for fostering high level of employees engagement and also workplace
satisfaction.
Laissez-Faire leadership style: Tesco implements this leadership style when the
employees are well-trained and they require less guidance and direction (Hong, Zhang and

Ding, 2018). This style is implemented in the situations where employees can work without
oversight of leaders.
Following are given the implementation of management practices within the Tesco
organisation:
Performance management: Tesco retail stores aim at implementing performance
management practices that refers to reward efforts. Employees are valued and appreciated for
their efforts in the business activities and operations. Rewards are being provided to them in
the form of both extrinsic and intrinsic methods.
Recruitment and selection: Tesco is chain retail business requiring large number of
employees. Thus, internal and external recruitment practices are implemented by Tesco so
that it can recruit and select best talented employees who can come up with innovative ideas
that bring great results and outcomes (Gutierrez-Gutierrez, Barrales-Molina and Kaynak,
2018).
Flexible working practices: Retail stores of Tesco aim at implementing this
management practices so that it can help in motivating and satisfying employees and staff.
Flexible working practices enables and ensures that employees feel comfortable and satisfied
at workplace so that they can up with new and innovative ideas that helps in achieving the
overall goals and objectives.
Following is given the implementation of different business strategies in Tesco retail
chain organisation:
Product Differentiation strategy: Tesco implements this strategy to gain
competitive advantage through its superior quality products and services. This approach or
strategy puts emphasis on quality over cost.
Price skimming strategy: Tesco implements this strategy by relatively high prices
for its new products and services in its initial stage and then lowering it down (De Ruiter and
et.al., 2018). This strategy is implemented by Tesco to increase the brand awareness and also
to ensure steady revenue.
Recommendation for improvements
Tesco retail supermarket needs to focus on bringing further improvements in
leadership styles and management practices in order to sustain in intense competitive
markets. The retail business has great and intense competition, thus, Tesco needs to bring
improvements and changes in its business activities and strategies as well.

Autocratic leadership style needs to be adapted and implemented by Tesco (Cheung,
Yeung and Wu, 2018). This leadership style focuses on achieving great results and outcomes.
This leadership style ensures for achievement of results and overall objectives of company.
Tesco needs to focus employees’ engagement as this leads to motivate and encourage
employees to great extent. Employees’ relation needs to be maintained and engagement of
employees in business activities needs to be appreciated. Engaging employees in business
activities and decision making process leads to bring innovation and creation and overall
achievement of business objectives.
Tesco can focus on implementing the acquisition strategy so that it can gain
competitive advantage (Basran and et,al., 2018). Retail sector has intense competition thus,
acquisition strategy will ensure that Tesco effectively gain competitive advantage by
purchasing comparable another grocery chain and expand business operations and market
share.
CONCLUSION
Business organisation aims at adapting best leadership style so that it can motivate
and encourage employees for bring improvements in their performance level. There are
different types of leadership style, such as, democratic, autocratic, laissez-faire, coach and
servant. Management practices tend to put emphasis on motivating and encouraging
employees so that they put their best efforts in activities and operations of business. Various
management practices are flexible working, reward efforts, engaging employees and
recruiting best candidates. The different leadership styles, management practices and
different strategies are explained in brief and further some recommendations are being
provided.

REFERENCES
Books and Journal
Basran, J. and et,al., 2018. Styles of leadership, fears of compassion, and competing to avoid
inferiority. Frontiers in psychology. 9.
Cheung, F., Yeung, D. Y. and Wu, A. M., 2018. Employees’ perception of leadership styles
and successful aging in the workplace. Journal of Career Development. 45(6).
pp.610-624.
De Ruiter, M. and et.al., 2018. Leadership and the creation of corporate social responsibility:
An introduction to the special issue.
Gutierrez-Gutierrez, L. J., Barrales-Molina, V. and Kaynak, H., 2018. The role of human
resource-related quality management practices in new product development: A
dynamic capability perspective. International Journal of Operations & Production
Management. 38(1). pp.43-66.
Hong, J., Zhang, Y. and Ding, M., 2018. Sustainable supply chain management practices,
supply chain dynamic capabilities, and enterprise performance. Journal of Cleaner
Production. 172. pp.3508-3519.
Li, Y., Castaño, G. and Li, Y., 2018. Linking leadership styles to work engagement: The role
of psychological capital among Chinese knowledge workers. Chinese Management
Studies. 12(2). pp.433-452.
Rahman, A. and Najwa, S., 2018. The impact of training and development management
practices on organization performance at UNIKL business school/Siti Najwa Abdul
Rahman.
Tortorella, G. L. and et,al., 2018. Lean manufacturing implementation: leadership styles and
contextual variables. International Journal of Operations & Production
Management. 38(5) pp.1205-1227.
Online
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/>