Leadership and Management Concepts for Tesco: An Investigation of External Factors and Operational Approaches

This research investigates the external factors and operational approaches that impact the operations of Tesco, a multinational grocery store. Learn about the company's history, objectives, mission, vision, key operations, roles and responsibilities, and the impact of external business environment.

LEADERSHIP AND
MANAGEMENT
CONCEPTS

Introduction
 The research is based on the
overall improvement of the
operations of Tesco
 A brief history of the company is
provided
 The research investigates the
external factors that impact the
operations of the business

About the company
 Tesco is a multinational grocery
store set up in 1919
 It has its subsidiaries in the form of
banks and mobiles
 The revenue of the company is
about £55,917 million
 It has over 6000 locations all
around the world

Objectives
 To become a pleasing place for
employees to work
 To provide customers with the best
quality of services
 To upgrade the existing stores and
technologies
 To make profits so that it can help
in gaining high returns

Mission
 To be the best retail supermarket in
the world
 To increase the value of the
customers
 To earn the loyalty of the
customers
 To respect the values and ensure
employee satisfaction at all level

Vision
 To expand the sale of organic
materials to about £ 1 billion in the
next five years
 To increase share of the non-food
items as well as the food items

Key Operations
 Tesco Superstores
 Tesco Extras
 Tesco Metro
 Tesco Home plus

Key functions
 Tesco Superstores: These are set up
based on the standard store format
 Tesco Extras: These are the
hypermarkets of the company used
mainly as inventory
 Tesco Metro: Medium sized stores that
have large food lines
 Tesco Home plus: This contains all
other range of products expect food
items based on the warehouse style units

Roles and
responsibilities
 The managers need to ensure that
the resources in each of the
departments are managed
 The resources include the
employees as well as the financial
stability
 Managers also need to ensure that
the stores are opened on time so
that the company can reach its
goals

Operational approaches
 The operational approaches
undertaken in Tesco includes a lean
manufacturing process to eliminate
any kind of wastes
 The application of six sigma can
help the company to focus on its
qualities
 Benchmarking is also adopted so
that the best products or services
of the competitors can be analysed

Impact of external business
environment
 Political: The increase in the rate of VAT
has affected Tesco due to the lower rate of
customer spending
 Economic: The positive recovery sign from
the financial crisis have helped in
increasing the rate of sales in the company
 Social: Due to the increased number of
aged people, the introduction of mobile
applications for the company need to be
reanalysed as it has a negative impact

Contd..
 Technology: The technology
improvement may have a positive impact
in the modern world particularly in the
supply chain management of the company
 Environmental: Tesco contributes in
diminishing utilisation of greenhouse
gases so that the speculated melting of
the Arctic can decrease
 Legal: This affects the company in a
negative manner as it markets a variety of
products and services

Recommendation
 The managers of Tesco need to undertake
a close monitoring of the works of the
employees so that they can achieve their
objectives
 Customer satisfaction can be maintained
by promoting the operational stores in
social media such as Facebook or Twitter
 The inventory of the operations can be
increased in a legal manner so that it can
help in increasing the production
 The leaders need to guide the employees
by adopting a democratic style and
maintain its objective of satisfying the

Conclusion
 It can be concluded that Tesco
need to consider its operations
management in a manner that can
help in the overall success of the
company
 In future, Tesco can aim to increase
their revenue by improving its
products and services

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