Leadership and Strategic Issues at Tesco

LEADERSHIP

TESCO 1
Introduction
In this part of the report, a brief background of Tesco will be given. In 2011, the
organisational structure of Tesco had undergone a major change when Terry Leahy who held
the position of chief leader for over 15 years at Tesco, was replaced by Phillip Clarke.
Followed by the brief introduction about Tesco, the strategic issues that are being currently
faced by the company due to the said change will be mentioned.
Strategic issues:
 No clear set of goals and objectives at Tesco: The first issue that could be included
in the report is the lack of adequate management strategy at Tesco. Since the time
when Terry the ex-finance director of Tesco left his position, the company has been
facing various problems in meeting its goals and targets. The current leaders at Tesco
have failed to define company’s goals in the clear and concise manner. Moreover, the
strategies and policies required to achieve the desired goals and objectives are not
clearly defined which often creates confusion among the employees of the company.
 Employee’s resistance to change: The employees at Tesco have low tolerance to any
organisational change that occurred and hence they resisted to such change. Thus, it is
highly required for Tesco’s new director i.e. Phillip Clarke to provide a reasonable
assurance of well-being and job security to the employees of the companyto retain
their motivation and interest in the company.
 Maintaining the reputation in the market: Tesco had to undergo various changes
such as changes in organisational culture, model of leadership, level of productivity.
The employees, customers and other stakeholders of the company have lost the
confidence on the company as a result of leadership change.