A Report on Leadership and Organisational Behaviour Issues at Tesco

This report delves into the leadership and organisational behaviour issues at Tesco, a major retail chain. It examines the impact of various leadership styles, including democratic, autocratic, and others, on the company's performance and employee morale. The report analyses the changes in leadership and their effects on Tesco's competitive position, particularly in the UK market. It explores the causes and consequences of corporate scandals, such as the leadership issues and profit diminishing in 2014, and reviews relevant literature on leadership theories to identify the most suitable leadership approaches for Tesco. The report also assesses Tesco's workplace culture and suggests potential solutions to improve the company's efficiency and regain its competitive edge. Finally, it provides recommendations on leadership strategies to enhance Tesco's organisational effectiveness, including the adoption of democratic leadership and strategies to support employee well-being and development.

Introduction
This report analysis the corporate scandal spoiled by the leadership and behavioural issues. In
order to have an effective example of leadership issues in Tesco. A leader maintains a
synergy, trust, and confidence among the team members in relation to cross-cultural teams.
This report contributes the identification of leadership issue that has led to corporate failure.
A literature review has been undertaken to identify and explain the relation between the
leader`s effectiveness and employee`s morale (Adner, 2016). The literature review brings out
leadership theories such as democratic leadership, autocratic leadership, laissez- faire
leadership, behavioural leadership, participative leadership, situational leadership, and the
contingency leadership that will finally identify most suitable and appropriate leadership for
the Tesco issues (Adner, 2016).
It has been seen that identify and evaluate Tesco’s workplace culture to improve the business
situations. Further., a possible set of solution will be analysed that can enhance the
company`s efficiency. At last, a strong recommendation has been strategized to adopt the
leadership skills that can improve the Tesco issues. This report conducts a research on
Tesco`s leadership and organisational behaviour issues, which analyses competitive position
of Tesco in order to measure the impact and finally critically analyse the main purpose of
studying the relative effect on the competitive capacity of the organisation. This report will
analyse the current trends and explore the relationship between the comparative analysis and
the effect of different leaders on formulation of the strategies in UK market.
Introduction to Tesco
Tesco is and renowned and largest chain of retail outlets which was established in 1997. The
main aim of the company is to undertake a vision to change the structural formation of the
company. The company focuses on achieving the best product and service outcome to the

customers. The company is a British multinational groceries and other general merchandise
retailer group with the number of 450000 employees and the operating income 2206 million
dollars (Aithal, & Kumar, 2016). The company is a third largest retailer in terms of the
revenues in the whole world. The company`s 75 percent of the revenue streams is from the
UK and it`s level of export is less and it sells less to the outside countries. The company has
started offering many new financial services and the telecommunication in expanding the
market and also enable it for the organisation to deliver the long-term growth. It allows
delivering long-term growth opportunities into the market (Aithal, & Kumar, 2016).
Analysis of leadership and organisational behavioural issues
Analysing the leadership changes and position of Tesco was quite common, as it had
contributed to greater market share and the attainment of competitive edge in UK. Since
1997, the company has changed the whole sum of structural organisational levels. It is seen
that Terry retained the maximum leadership duration (Arena, & Uhl-Bien, 2016). In the
influence of stewardship theory, the company has accomplished various well-established
mission and vision emerging as a market leader. He chose democratic leadership style with
the basic attributes of leadership including clarity of the goals, delegation, simplicity, and
consumer focused (Arena, & Uhl-Bien, 2016). The approach of Clarke who has failed to
transform the company`s strategy. The Philip succeeded Dave in order to bring back the
stability in the largest supermarket chain in UK. There were several changes noticed on
operational level in the supermarket. The change includes recruiting more staff at the shop
floor by reducing the huge range of products so that it could avoid duplication and at the
same time reducing the certain prices of the products (Arena, & Uhl-Bien, 2016). Certain
changes in the leadership led to the transformation of the different process of the operation in
the company. It is quite significant to the changes to explore the effect of changes on the
competitive position of Tesco. As the consequences of the changes in the leadership policies,

Tesco started suffering from years of negligence and underinvestment that has also turned to
poor customer services and unimpressive product assortment (Cranston et al., 2016).
Consumers started shifting its discounted retailers from Tesco to the value conscious and
high quality companies such as Waitrose, Sainsbury, marks and spencer, and Aldi. After
facing these issues such as shifting of the loyal customers, the leader has introduced big price
drop in 2011 as it has cut the prices of 3000 items but at the same time, it has affected the
Tesco’s sales in a negative way (Blancero, Ruiz, & Padilla, 2018). Further occasions started
proving the disappointing for the company where the sales has fallen 2.3 percent in the next
six weeks. During 2012, the leaders decided to announce the recovery plan in order to
improve the services, delivering the value, brand, and finally introducing certain new e-
commerce plans, marketing plan and brands. Although, the leader has incurred an investment
1 billion dollars but still it could not improve company`s fortunes and announced a huge fall
in the annual profits (Blancero, Ruiz, & Padilla, 2018). Apart from UK, other international
market such as china, Czech Republic, and Turkey started falling and dwindling. There is a
need to rebrand Tesco and finally address certain issues pertaining to pricing issues (Arena,
& Uhl-Bien, 2016).
Application of leadership through literature review
Literature review will be used to examine several academics and other different scholars. It
will facilitate review of the existing definition conceptualisation. According to leadership,
maintaining traits is an talent of a person who leads the company with the usage of
temperament personality which leads to the development of the company. According to
Glass, C., & Cook, A. (2016), leader should deal with the challenge in managing the
organisation with the consistency and uncertainty while comparing to other organisation. A
leader requires active vision with the compliance of continuous efforts towards the
organisational goals, improving, successful implementation, innovation, and making unique

strategies. According to Glass, C., & Cook, A. (2016), The successful business
transformation reflects perpetual changes in leadership in order to suit to changes from the
external and internal market. Several changes in the external business environment, it is seen
that it is vulnerable to the competition while considering the supermarkets. According to the
Annual reports, (2014), it is seen that leader in the retail sector of UK undergo fastened
expanding and growing for offering several services as provided to the customers on the
global scale (Lu, Laux, & Antony, 2017). As there are several affecting changes in the
leadership strategies after the introduction of Tesco clubcard that has been proven as a single
factor in the organisational success? Various strategies have been adopted that includes
customer’s attraction and further gathering several raw data material and converting it into
profitable information (Fevre, & Robinson, 2015).
As per the statement of Jacobs, J., Gordon, S. P., & Solis, R. (2016), As per the leadership
strategies undertaken by the Tesco has significant impact on internal environment. The
company has successfully diminished the frequency and intensity of carbon and further
operations in UK by almost 50 percent. This scandal has led to greater savings for the
organisation and it has reduced the vulnerability to increasing cost of the energy. The
dynamic nature of changing leadership that has led to the collaborative growth of the
company and appropriate amount of energy in Tesco`s supply chain found to be greater in
terms of supply chain used in the operations. It is orated that company`s culture of Tesco is
one of the renowned and strongest workplace culture that helps to reform and shape the work
process and culture, work relationship, and work satisfaction. Change in leadership was one
of the successful step in achieving the long-term success of the company. The company
performs as an informative analysis in the purchase of more than 13 million who owns
loyalty card program.

The research of inclusive of continuous efforts for the goal of undertaking the empirical
enquiry in order to answer the research questions with the assistance of huge gained
knowledge. A research design is an important component of the research as it will further
implements the strategy of studying the aspects in a logical manner. The two main research
designs include descriptive and exploratory. The research has followed the theories related to
leadership issues in Tesco in an effective manner. Several leadership theories are trait theory,
participative leadership, contingency leadership, transactional leadership, transformational
leadership, and situational leadership. Great man leadership theory looked towards the
explanation of servant and strategic leadership as organisations often think and demand of
leader who has heroic abilities and other failures in order to justify the success. These leaders
are not created and they are born for the exploration of success and at the same time, the
credibility of the leader has been challenged by the subsequent occasions and events that is
quite irrelevant to the organisational growth and organisational other restrains. Person born
with certain qualities such as intelligence, determination, inclination of becoming a leader,
confidence and identify the difference between the effective leaders and the followers. It is
seen that Tesco`s leader has failed to consistency and degenerated illogical speculation. A
leader who displays job centred process and behaviour to follow the procedure and other
practises in the development of cohesive attention and satisfaction when following the initial
structures.
Further description says that the company can develop a framework to examine types of the
leadership known in the name of managerial grid. It is focused and measure on the two basis
named as production concerns and concern for people.
It is seen that it is mandatory to reveal in the future research when trying to study a certain
and specific group of behaviours in every situations that can overlook the set of behaviours in
every circumstances of the person`s behaviour in the company. When a different approach is

seen and applied to the organisation then different theories are evaluated such as at the
intricacy of the leadership, contingency theory, and the situational leadership. According to
the, application of theory is effective when it totally depend on discrepancy and leader-
situational matches resulting in the effective outcome of the approach as per the situation and
the personality.
Recommendation to improve and enhance the organisational strategies
Currently the company has an appropriate strategies but still after the scandal of leadership
issues and profit diminishing in 2014. There is a need to adopt a path of democrati8c
leadership as the flat structure can provide an change to the lower level of management to
attempt to give ideas rather than investing large cash resources to minimise the losses
occurred during the management failure and poor customer services. The management and
leadership style can help the organisation to be effective in supporting the company in an
effective way in order to grow. At Tesco, the company should be quite committed to assist
and help the staff for the best job hours in order to support and suit the needs of company
(Ferkins, Shilbury, & Boyle, 2018). It is important to understand that the leader will have to
support the employees for their healthcare services and support the disability and the illness
(Ferkins, Shilbury, & Boyle, 2018). The management should try to understand that it is
necessary to become flexible so that it can regulate strategic change. High performance of the
management is another important competitive advantage and position of Tesco. The company
should not let the management to serve the customers in any of the bad way, serve them well,
and grow through the economic recession. In the process of continuous growth of the
managers, it is seen that Tesco has to focus on the continuous growth of the employees can be
achieved through autocratic leadership as it provides an strict set of rules and procedures that
are tend to be followed (Ferkins, Shilbury, & Boyle, 2018).

The mission of the employees is to handle both internal and external stakeholders by
attempting small tasks and regarding their small achievements. It is the obligation of the
manager to restore the information with a statement of “Every little helps”. It is quite
important to increase the morale of the employees and motivate them at the same time
especially while delivering the promise to the customers (Ferkins, Shilbury, & Boyle, 2018).
The management trusts that the company to foresee the success of the leader depending on
maintaining an happy workforce in the company and make the work more interesting, a
possibility to move forward in the life and identify the performance and respect them parallel.
A well established strategic view by finding the issues and give support directly to the
development of advantageous as compared to its competitors and make them highly
profitable and productive.
Conclusion
The company mainly values the employees by contributing them to become and pay
competitively and occasion to progress a long- term and sustainable career with good training
facilities, which keeps the people committed, determined, and exciting in the operation of the
organisation. The company give a review of the performance by classifying the difficulties
and benevolent support guiding the workers to happen their goals. Tesco attempts to take its
employees as an very important human resource in the organisation as they all work together
to fund and lead to the development of the company. They also are determined to look after
their employees in a way they are expected to deliver to the customers. Tesco also established
an academy that provides training to help to groom the employees so that they can develop
their thinking to a strategy and prepare themselves as becoming future leaders by preparation
to progress leadership, management, marketing skills, and other technical skills. The
managers will carry out in each of the store daily and weekly reviews to categorize and
steadfastness issues in the company and perform operational routine, which involves the

process to deliver great store standard, better availabilities, and great service for customers.
As the management and leadership, style of Tesco is democratic. Therefore, their way of
operating is decentralised and information is approved from the higher management to the
lower employees and everyone is free to speak and allowed to initiate and underwrite
operative ideas for the growth of the organisation.

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