Organizational Culture in Tesco

Context of Business
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. A brief history and summary of the business..........................................................................3
2. Discuss their vision, leadership style and management practices and the organizational
culture using theories..................................................................................................................4
3. Analyze how their culture and their management style influence their business functions.. .6
4. What could be your recommendations as an improvement (the proposed leadership styles,
management practices)................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................1
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INTRODUCTION
Business is an economic system in which goods and services are exchanged to satisfy
wants of consumer for the money. In business main factors are culture, management and various
kinds of strategies that build an effective coordination in works and activities within
organisation. This report is based on Tesco which is an multinational grocery and merchandise
retailer,headquarter is in England, UK. It is third largest retailer in world in context of gross
revenue. This report is based on leadership style, vision and mission of an organisation with
management practices to build an effective culture. It also includes various culture and
management styles that influence business functions and at last recommendations about the
whole discussion to reach at desirable outcomes.
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MAIN BODY
1. A brief history and summary of the business.
This report is based on Tesco which is an British general merchandise and grocery
retailer that serves in the almost countries. It is one of third largest in context of revenue in world
and ninth largest in world measured in gross revenue. It has large stores in seven countries that
are Asia, Europe and market leader in UK. It was founded in year 1919 by Jack Cohen as an
market stalls. In 1960s it diversified its market In some areas that are retailing of books,
electronics, financial services and many more are their key fields in which they spend. It is listed
in London stock exchange and major constituent of FTSE 100 index. The stores of Tesco are
very large and majorly situated in out of town in hypermarkets that store or stock products nearly
their product ranges (Bargiela-Chiappini, Nickerson and Planken, 2013). Their some stores are
situated in heart of their towns and cities that helps to consumers to purchase in easy way from
their stores rapidly. That organization which is chosen to achieve objectives behind conducting
that report is Tesco. The main function of Tesco to deliver the products and services as per the
need of consumers in effective manner. The rationale to select that organization that it is one of
the largest firm that established in many countries. The reason is to remain always competitive
organization always adopt various measures and conduct research and development to give best
environment for their workers (Bell, Bryman and Harley, 2018). So selection of that
organization is very much important to conduct research so that other organizations can also
understand their internal environment and their working patterns. The another major reason that
most retailers faces changing environment and also faces variations on daily basis regarding
consumer demand, manufacturer promotions and holidays to get right arrangement with suitable
assortment of products in their stores. There are some problems that faced by Tesco that are
incorrectly placed flat instead of aisle that hinders or frustrate consumers that face problem of
searching products and services in proper way. So majorly choosing that organization to find out
internal working with problems that they are facing regarding selling products and services. The
major reason to select that organization that its information and data are easily accessible to
conduct research and development.
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2. Discuss their vision, leadership style and management practices and the organizational culture
using theories.
Before conducting research and development it is very much obligatory for an
organization to understand the vision, mission and objectives so that everyone can give their best
in organizational growth and enhancement in better way.
Vision of Tesco:
Tesco's core vision is “ We make what matters better, together”. Its vision, mission and
objectives are interrelated and operate as an whole for shaping an identity for company. Together
with strategic goals they play crucial role to achieve organizational goals and objectives in
proper way.
Leadership style:
Leadership style is an manner or style with approach to provide direction,
implementation and plans each and every activity to motivate people (.Bucchiarone and et.al .,
2012,). In leadership style includes total pattern of both implicit and explicit actions that
performed by leader. Every organization adopts a particular leadership style that helps in pace in
right direction by following a systematic route to reach at goals and objectives.
Democratic style of leadership to manage Tesco:
Management of Tesco adopts the democratic leadership style that also known as
participant leadership style in which voice or opinions of employees are very much important for
management to taken right kind of decision (da Cunha Mattos and et.al ., 2014.). That leadership
style helps employees to remain always motivated to give their best in organizational growth and
enhancement. That leadership style also focus on appointing a leader in each and every
department to manage organizational process in better way. Tesco able to adapt democratic
leadership style as they follow flat organizational structure that enables each and every employee
to give their opinions in organizational process.
Management practices:
Management practices refers to working methods and innovations that helps to managers
to enhance effectiveness of organizational work systems in better way. Management of Tesco are
very much conscious for organizational development and enhancement by giving best
environment at work so that they can give their best (Marlow and McAdam, 2015.). With
management believes that success of leaders relies on happy and satisfy staff members by giving
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a that they are interested to do. Organization also give chance to their employees to move on in
their life by identifying their potentiality and skills in major area so that they can understand
strength of own self. Tesco always promises to their staff members with their mission statement
“Every little helps” that builds loyalty in front of consumer base to reach at large consumer base.
So all best management practices make it global brand name in the whole world. Tesco follow
fair wages, flexible work environment and equal pay for equal work are major practices that they
follow. With the help of system management theory that aims to achieve integrated and
balanced whole in organization that helps in set management practices that are homogeneous in
all organization.
Organizational culture:
Organizational culture includes expectations, experiences and values with philosophy that
guide an individual to behave in proper manner. Every organization follows a culture that affects
on their works and procedures to reach at desirable outcomes in positive way.
There are many theories of organizational culture that helps to coordinate each and every
attribute in proper manner that are as follows:
Handy's typology:
Charles Handy who is a leading authority to define various kinds of organizational
culture by Power, Role, Task and person culture that are as follows:
Power culture:
In an organist which follows power culture in which roles and authority resides in few
hands ( Merugu and et.al , 2013.). Employees are judged on basis of results rather than their
efforts that put by them to achieve those results. In context of Tesco in which management takes
opinions of their employees so that they feel motivated to give their best.
Role culture:
Role culture in an organization based on rules which is highly controlled in manner and
every one acknowledged about their roles and responsibility so that they are able to give their
best in way.
Task culture:
Task culture formed on basis to solve some issues or problems of an specific projects in
proper way. Task and related activities are very much crucial for an organization in that case
power shift one person to another to give their best. In context of Tesco which works on many
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projects simultaneously for that they require kinds of skills and capabilities to attain desirable
goals and objectives.
Person culture:
For an organization person culture in which individuals consider themselves as an
important and superior r. With organization exist as per skills of manpower that they possess. An
firm with that culture is a collection of individuals who exist to work for same. In context of
Tesco they work on that concept to give level of motivation so that they can give their best in
organizational development.
So it has been concluded that Tesco have positive work culture in which every one can share
their ideas and opinions in proper way to reach at desirable goals and objectives.
In that aspect organization follow the task culture to deal in effective manner to attain
organizational goals and objectives.
3. Analyze how their culture and their management style influence their business functions.
Culture and management style is one of the important to manage and influence business
functions of an organization in both affirmative and negative manner (Nell and Andersson,
2012.). In context of Tesco which uses visionary management style in which visionary higher
authority share or communicate objectives and give direction in which employees can believe
that motivate them to work harder and give their best in organizational growth and enhancement.
As per the above discussion it has been observed that culture and management of Tesco is very
much liberal and have flexibility in their work that helps to keep motivated to give their best. On
other hand they give opportunities to their employees for sharing their views and opinions that
brings creativity in organization by bringing harmony in works and procedures of an
organization (Sandkuhl, Koç and Stirna, 2014,). Effective culture helps to management to get
higher productivity from side of employees. Culture majorly affects how an individual think and
in which manner act on their jobs. With impact of culture on relationship with business
associates. Understanding towards culture will affect on major function of business while enter
into local market by developing relationships, negotiate successful deals, conducting marketing
and advertising campaigns and many more. In context of Tesco they by understanding the
culture of their local people and trends prevails in employee selection helps them to remain
always competitive in market place. On other hand management style that is visionary in context
of Tesco helps to manage each and every function of organization by giving opportunity to all
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people who associated with them so that they remain always motivated and can give their best in
organizational development and enhancement. Management styles distribute roles and
responsibilities to each and everyone in proper way so that they can give their best efforts in
achieving organizational goals and objectives. Management styles helps in coordinate activities
and it passes through a definite path to remain always competitive in market place by
understanding the needs and wants of employees.
4. What could be your recommendations as an improvement (the proposed leadership styles,
management practices).
For an organization to remain always competitive in business world Tesco have to not
only change in their internal structure and strategies but also have to analyze external forces that
affect on their business and related procedures. As competition rises day by day and they face
many challenges in these days they suffer from improvement of services that divert their
consumer base from other competitors of an organization that hinders their self interest. In that
condition they have to modify in their leadership style that is democratic but as per situation
organization have to adopt situational leadership style (Stuhec and Pentcheva, SAP SE, 2012).
Situational leadership style helps in moderate working patterns as per the situation demands in
positive way. With strategies and practices should be changed accordingly and they have to
focus on differentiation strategy that helps them to beat in competitive market. Management
practices are very much important for organization in which internal best practices and external
practices are very much crucial and Tesco have to focus on both these aspects. To remain always
competitive in market place organization have to focus on change that are very much crucial for
organizational development and enhancement to remain always competitive in marketplace. So
all major changes that are very important for an organization to remain always competitive in
marketplace. Change management is also very crucial for organization to manage dynamics.
CONCLUSION
From the above report it has been summarized that in an organization culture, manpower
and many other factors plays very much crucial role in organizational development and
enhancement. Organization have to remain always competitive in marketplace they have to
change in internal and external factors that impacts in both positive and negative in business
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functions. Organization have to build practices and policies that give them definite path to move
forward to achieve desirable goals and objectives.
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REFERENCES
Books and journals:
Bargiela-Chiappini, F., Nickerson, C. and Planken, B., 2013. What is Business Discourse?. In
Business Discourse (pp. 3-44). Palgrave Macmillan, London.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Bucchiarone, A., Marconi, A., Pistore, M. and Raik, H., 2012, June. Dynamic adaptation of
fragment-based and context-aware business processes. In 2012 IEEE 19th International
Conference on Web Services (pp. 33-41). IEEE.
da Cunha Mattos, T., and et.al ., 2014. A formal representation for context-aware business
processes. Computers in Industry. 65(8). pp.1193-1214.
Marlow, S. and McAdam, M., 2015. Incubation or induction? Gendered identity work in the
context of technology business incubation. Entrepreneurship Theory and Practice.
39(4). pp.791-816.
Merugu, S., and et.al , 2013. Extracting rich temporal context for business entities and events.
U.S. Patent 8,606,564.
Nell, P.C. and Andersson, U., 2012. The complexity of the business network context and its
effect on subsidiary relational (over-) embeddedness. International Business Review.
21(6). pp.1087-1098.
Sandkuhl, K., Koç, H. and Stirna, J., 2014, May. Context-aware business services: technological
support for business and IT-alignment. In International Conference on Business
Information Systems (pp. 190-201). Springer, Cham.
Stuhec, G. and Pentcheva, D., SAP SE, 2012. Context-specific modeling of collaborative
business process. U.S. Patent 8,280,755.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management. 36(3). pp.486-495.
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