Leadership and Management Strategies at TESCO: A Detailed Report

This report provides a detailed analysis of TESCO's management and leadership practices. It begins with an introduction to TESCO and its management structure, including a discussion of its global and geographic divisions. The report then defines the roles of managers and leaders, highlighting the differences between them and comparing their respective characteristics. It explores various management and leadership theories, such as trait theory and contingency leadership, and their application in different organizational situations, including conflict resolution and decision-making. The report also assesses the strengths and weaknesses of various leadership and management approaches. Furthermore, it delves into TESCO's key operational functions, outlining the roles and responsibilities of managers in these areas and examining key operational approaches. The report concludes with recommendations for improving operational efficiencies to successfully meet business objectives, considering the impact of external business environment factors on decision-making.

Management
and
Operation

INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1. Introduction of TESCO and it's management structure..........................................................3
3. Different roles and theories of management and leadership in different organisational
situations.....................................................................................................................................5
4. Strengths and weaknesses of different approaches of leadership and management...............6
5. Conclusions and recommendations on the impact of managers and leaders on the organisation.
.....................................................................................................................................................9
TASK 2.................................................................................................................................................9
1. Introduction to the key operations of TESCO.........................................................................9
2. Roles and responsibilities of managers in the key operational functions...............................9
3. The key operational approaches to operations management and their value........................10
4. External business environment factors that affect decision-making by leaders and managers.
...................................................................................................................................................11
5. How operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches................................................................12
6. Conclusions and recommendations for future improvements to be taken by the organisation.
...................................................................................................................................................13
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................14

INTRODUCTION
Management is a process which is use to manage different operations and functionality of an
organisation. It provides a systematic format for making integration between different tasks in an
organisation. Manger is person who uses to make plans for performing all these activities. They also
have to monitor the work that it is going according to planning or not (Baboli, 2014).TESCO is a
multinational company of engage in the retailing industry of providing products through the
medium of superstore, hyper store, supermarket and convenience shop. Company is situated in
United Kingdom while headquartered in AL7 1GA England .In this report a brief discussion will
take place on the roles of managers and leader, along with their theories and approaches. Strength
and weakness of them will also get discussed, which shows the impact of leadership and manager
on organisation. Along with all this, the key operational functions with roles and responsibilities of
a manager will get explained. Approaches of key operational to operations management will get
covered in study. Also the impact of external factors on decision making and how operational
efficiencies can be improved to meet successful objectives took place in discussion.
TASK 1
1. Introduction of TESCO and it's management structure.
TESCO is one of the leading retailing companies of the world. It is a British company, which have
their outlets in all over the world. The company was established in the year 1919 by Jack Cohen the
head quarter of company is in England, United Kingdom. Having, more than 460,000
employees.The management structure of TESCO follows a 3 level hierarchy, where they have
divided the power of decision making too many other managers and employees according to
situation. Elements of Operational hierarchy of TESCO
Global hierarchy: In this company has decided to increase the decision making power of regional
head, so that they can take appropriate decisions according to the situations. This helps them in
making effective and quick decision making. Also while taking decision, region head have to report
the central head quarter in England this lead the system of decision making is less centralised
(Bahmani-Firouzi, 2014). But at the last, the major decision is taken by head quarter in England,
and these are done after knowing and understanding the situations.
Geographic Division:

Here TESCO perform their functions in so many geographical locations including, i.e. north
America, East Asia, Japan, Europe, Middle East, Africa, Oceania, China, Asia, Caribbean and Latin
America. TESCO has established its head quarters at each and every region which can make
decisions according to the situations and conditions.
Product based Division:
This is the last feature of this TESCO management hierarchy. Here they have made the
division according to the products they have offered. The company offer their products with a
medium of Superstore, hypermarket, supermarket and convenience shop
2. Definition and difference between managers and leaders.
Leader is a person use to set the goals and objectives for an organisation, which they have to
achieve in a certain period of time. Leader of TESCO must be a capable person who can read the
and identify the current conditions of the company and set the objectives according to it only.
Whereas, a manager is a person who use to manage the organisation and make plans to achieve the
goals and objective that are set by leader ( Binz, 2014). Manager of TESCO has to play some
special roles which are as follow:-
 The main role of managers is to monitor the works and performance of individuals.
 The roles of manager in TESCO are to make a proper of required information in the
organisation, so that their subordinates can give their best.
Characteristics of manager:-
 Manager of TESCO has to emotionally stable and creative, so they do not get frustrated or
angered.
 Manager has to provide work according to the potential of their employees and has to set
priority according to importance of task.
Roles of leader:-
 Leaders also effectively design short and long term goals for developing their organisation.
 Leaders also focus on the future goals and objectives so that working of organisation do not
get affected.
Characteristics of leader:-
 Leaders in TESCO have to be creative in nature and also have to be motivational, which
help them in leading in effective manner.
Comparison chart between management and leadership is as below:-
Basis Leadership Management

Meaning Leadership is an individual's
skill of leading an organisation
or a group of people.
Management is a process used
to manage activities in an
organisation.
Emphasis on Leadership generally work to
inspire people to achieve
organisational goals.
Management work to manage
activities of an organisation to
achieve personal as well as
organisational objectives.
Power Leadership has power that can
make changes in working of an
organisation.
Management has power to
make rules in order to achieve
changes efficiently.
Focus on In TESCO the main aim of a
leadership is on encouraging
changes.
Whereas, management focuses
on bringing stability in an
organisation.
Strategies Leadership of TESCO use to
design Strategies which are
proactive.
And strategies made by
managers are reactive.
Formulation of Leadership make the principles
and guidelines of TESCO.
On other hand, management is a
combination of policies and
procedures of an organisation.
Example In TESCO, leaders decide to
break down their management
hierarchy according to their
products.
In such conditions, management
make plans that how they can
break this effectively without
disturbing the functionality of
their organisation.
3. Different roles and theories of management and leadership in different organisational situations.
Leadership and management are the most important part of an organisation. Good leadership
and a strong management system help an organisation to achieve their goals and objectives easily.
But some time leaders and management has to play different roles, which depends on the situations.
Beneath are the roles of management and leader in different situations :-
Situation 1 – Conflicts : In modern era, conflicts are considered as a normal conditions in
organisation, but solving these conflicts are very important for an organisation in order to achieve

their goals. In such conditions, Management have to study the situation so that they can make
solutions for that ( Johnstone, 2016). Where as, leader has to play a motivational role in such
situations. For example, if any individual or group of people in TESCO has conflicts related to
working of system, then management has to make modifications in their plans so that the conflict
get solved, and effective leadership by leader helps in motivate group or individual so that they can
work properly to achieve goals. In these conditions, Leader and manager both can use the theory of
conflict management. According to this, conflict is a natural process in an organisation, and
manager and leader has to solve them in efficient manner. For example, Manager of TESCO
announce bonus for employees in organisation and employees having working experience of more
than 3 year with TESCO will get $ 3000 whereas, employees having 2 year experience with
organisation will get $ 1500 as bonus. This raises conflict in organisation, and in such conditions
leader have to motivate their employees and also have to explain them that why they providing
bonus in different cost. And manager of organisation have to make plans which reduce these
conflicts by making changes in their plans.
Situation 2 – Decision Making: Making decisions are very important activities for an
organisation. This help organisation to make plans and strategies which will help them in achieving
their goals and objectives. In such conditions, leaders and managers has to play different roles.
Here, leader of an organisation use to make decisions that can influence the working and future of
organisation ( Kato, 2014). For example, if TESCO has to grow or expand their business, then the
decisions related to this will be taken by leader, and the plans to implement that will be taken by
management. Here, they both can adopt the contingency theory of decision making, while help
them in making decisions which will good for organisation. For this leadership will make decisions
which will take their organisation to different level, where as management will take decisions that
how will they can opt these goals. For example, Company's leader takes decision to increase their
employees in headquarters, so that they can produce products that can fulfil requirements of
customers. For this, manager of TESCO decides to focus on the experiences of applicants not on
their education background. By using this, manager is able to make a experienced team but, the job
satisfaction, which was required by manager was not get fulfilled due to lack in education
qualifications. This lead organisation to face huge loss due to wrong decisions.
4. Strengths and weaknesses of different approaches of leadership and management.
Approach of leadership is discussed below :-
1. Trait Approach: In this approach of leadership, it is said that greats leaders are born not
made. According to this, the leader of TESCO has to be a person, who is born with qualities

like intelligent, honest, creative, confident, driven, courage. Strengths and weaknesses of
Trait approach is :-
Strengths Weaknesses
 It builds on premises that leaders are
distinctive.
 It provides benchmark for identifying a
leader.
 It is unusual for training and
development purpose.
 It focuses on leaders only not on
followers.
2. Contingency leadership theory: According to Contingency leadership approach there is
nothing which is known as best way of organising a work or maintaining an organisation. It
says that, the styles adopted by leader in different situations that can give result are best
style of leadership.
Strengths Weaknesses
 This leadership style is to make clarity
between employees about their roles in
complex situations.
 The major drawback of this theory is
leader have to be very skilful in adopting
different styles of leadership, which is
not easy for any one.
3. System leadership theory: This leadership theory says that firstly identifying the
behaviour of an individual is very important for a leader, so that effective plans can be
conditions can be created. This will help individuals to give their best to organisation and
also help in achieving their goals and objectives.
Strengths Weakness
 System leadership approach helps in
designing a frame work for employees
and also helps in making innovative
ideas by which employees can give their
best.
 It is a quite lengthy and time consuming
process with lots of complexities.
Leader of TESCO can use trait theory of leadership, as this will help them in finding leader
which can make some innovative changes in organisation.
Approach of management is as below :-
1. The classical approach: This approach of management states that, the employees working

in an TESCO only have economical and physical needs, they do not have any social or job
satisfaction needs, and if they have that then they are not important ( Liu, 2015). Strengths
and weakness of The classical approach of management is :-
Strengths Weaknesses
 It provides methodology for how the
management will work.
 It make division between employees
which results in faster working.
 The structure of this approach is very
tough and rigid.
 Can be expensive for creativity and
human relations in organisation.
1. The Behavioural approach : This approach of management says that, for increasing the
production and managerial efficiency, it is important for manager to understand the
behaviour of
Strengths Weaknesses
 Help in understanding the behaviour of
employees and also help in making
effective plans.
 It is very time consuming and also do not
guarantee to give appropriate results.
2. The system theory: This approach of management says that, manager of organisation
consider the whole system as one body which is made up of numerous elements. \
Strengths Weaknesses
 This help in systematic and integrated
working of different elements.
 Failure of one can lead to failure of next
all functions.
Manager of TESCO can use The Classical approach for management, which help
organisation in fulfilling the physical and economical needs of their employees, so that their
employees can work in proper manner. As this will also help them while they want to take some
tough decisions for organisation.
Conclusion
From the above study, it is concluded that, a person who is born with leadership quality are
very much effective for TESCO, where as manager has to take some tough steps for achieving
difficult tasks.

5. Conclusions and recommendations on the impact of managers and leaders on the organisation.
TESCO is one of the biggest retailing companies of the world. It is a British multinational
general merchandise store and has their company headquarter in England, United Kingdom.
TESCO execute their functions also in Asia and other parts of England and that make this company
world ninth largest retailing store in terms of revenue. As company serve their offerings worldwide,
it is important to hire most effective leaders and managers in the organisational structure as to bring
consistency in their functions. Along with this, while providing effective educational training to
their leaders and managers TESCO can remarkably increase their proficiency which results
management of company in best effective way. Leaders and managers impact on an organisation in
so many ways as they help employees and subordinates to conduct their work in effective way and
encourage them so to fulfil company objectives in better way. TESCO provide their products and
services in different regions in the world through the medium of convenience shop, superstore,
hypermarket and superstore. Therefore, it is important for company to hire and provide best training
to their leaders and managers as to increase their efficiency. This will not only benefit TESCO to
maximise their profitability but also aid leaders and managers TESCO to adopt different theories
and approaches as per the required condition and situation in order to make their decisions more
appropriate. For future, they can increase in the number of regional manager, which will help them
in making their management system more flexible and stronger.
TASK 2
1. Introduction to the key operations of TESCO.
All the organisations from all over the world has many operations to follow, but there are
some key operations that depend on the working sector of an organisation. TESCO is one of the
leading retailing industries, they also use to perform several operations in their organisation, but
some operations are their key operations. These all are dependent on the functioning of their
organisation ( Morschett, 2015). Finance, operation, strategy, design of product, forecasting, supply
chain configuration, managing the quality is some key operations of TESCO that affect its
performance in market. For achieving these operations efficiently TESCO has to apply some
approaches like Just in time, six sigma and lean production. These all will help the management of
TESCO to meet their goals and objectives that are decided by leaders.
2. Roles and responsibilities of managers in the key operational functions.
In order to conduct smooth functioning of management function managers have responsibility to

set clear objectives and goals and frame effective policies in context with various departments of
company as to ensure its sustainability. Managers of TESCO in operational functions have
responsibility to conduct proper sales forecasting and make strategies as to plan. Along with this
formative responsibility of managing company resources holds by managers as to effectively
manage organisation operational function. Mentioned below there are some certain key operational
functions:
1. Finance: Finance is one of the key operational functions for any organisation. TESCO has
huge source finance, but then also it is necessary for them to make sure that the funds
provided to any section get utilised properly. In this, manager of TESCO has to make
finance plan according the requirements and proposal, and after allotment of fund have to
monitor that the allotted funds are used properly or not.
2. Operation: This is the function where an organisation makes plans and strategies for making
quality products. In this, manager have to make effective plans so that quality products can
be produced by using resources, raw material and man power ( Palizban, 2014). Here,
manager also has to monitor the work and check whether the work is going according to
plans or not.
3. Strategies: TESCO has a large source of resources, but then also it is very important for
them to manage their resources and get competitive advantages. In this manager make tactic
for optimization of their resources, so that the cost gets reduced and they are able get some
competitive advantage. In this, manager use to verify the process that it is according to the
strategies or not.
3. The key operational approaches to operations management and their value.
Managing operation is very necessary for an organisation like TESCO. It is a big
organisation and it is not easy for them to manage their operations. For this firm use different
approaches that can help them, some of these approaches are:-
1. Just in Time: Just in Time is a widely used approach for managing operations. In this, the
raw material ordered by organisation at the time when require ( Pelley, 2015). This is very
effective for companies like TESCO, as this help them in reducing waste of raw materials
and increases efficiency. This all help organisation to decrease their inventory cost.
Value – This is very effective in order to reduce the cost of an organisation. As companies
use to send raw material directly to production hub, that is ordered by them only according to the
needs and demand. This reduces the waste of raw material and also sending raw material direct to

production cell decrease the inventory cost.
2. Six Sigma: Six Sigma is a methodology used by organisations to reduce defects and errors
form their operations. This lead the management of operations easier and faster. It is very
important for organisations like TESCO to deduct errors from their functioning, so that they
can increase their efficiency of working. It is generally a result of high end engineering and
manufacturing.
Value – This is very useful approach for an organisation, as this help them to reduce their
cost and save time. TESCO has a huge operation which has many errors and defects, using this will
help them in cutting down the errors and defects from their system, which reduce their cost and
saves time. This all help them in managing their operations easily.
3. Lean Production : This is an approach used by many organisation throughout the world. In
this management make their focus on cutting down the waste that occur in each and every
activity ( Pingili, 2014). This helps TESCO to save their funds by cutting out the wastes.
Value – This is very effective approach for managing the operations. This will help TESCO
to save huge amount that are invested in waste of resources. They can apply this in any activity or
operation of organisation.
4. External business environment factors that affect decision-making by leaders and managers.
There are several factors that affect the decision making of a manager and leader in an
organisation. Such as:-
Competitors:
Competitors are one of the biggest factor for any organisation that affect their decision making.
TESCO provide their products and services through all over the world, they have to study the
marketing strategies of their competitors from different regions of world that can affect their
performance in that specific region ( White, 2016.). After that they have to make changes in their
policies and decisions according to the result of study. This will help them in getting some
competitive advantages. It is very important for TESCO to evaluate overall strategies of their
competitors and then formulate most appropriate policies in order to gain more competitive
advantages and maximise their productivity.
Customers:
The primary goal for an organisation is to satisfy their customers. In different regions of world,
customers have different satisfaction level. This factor can lead an organisation to make changes in
their policies and decisions (External factors that affect decision making, 2017)..In order to satisfy

every essential needs of their consumers in best effective way manager of company is required to
analyse current demand and preferences of customers as to make products and services as per
according to their need and increase company profitability.
Suppliers: Suppliers are those individuals who provide material required by an organisation for the
production of their products and services. They have power that leads an organisation to make
changes in their decisions. It is very important for TESCO to maintain good and healthy relations
with their suppliers. This will help them in producing cost efficient products.
Employees: Employees are very important part for an organisation like TESCO; therefore it is very
essential for them to keep care for them. Managers of TESCO is required to provide effective
training and development programmes to their employees as to increase their efficiency which
automatically results in maximising company productivity in best effective way.
Share holders: In order to strengthen company internal and external structure it is important for
TESCO to protect company shareholders interests and make formal strategies in order to effectively
manage and protect organisation shareholders interests. It will effectively aid TESCO to increase
their shareholder value.
Government: In order to operate organisational objectives in best effective way it is important for
TESCO to abide all governmental rules and laws as to reduce any further legal obstacles. This will
benefit company to conduct their business functions in best effective way without facing any kind
of governmental hampering.
5. How operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches.
Operational management is a task that involve planning, organising, managing, controlling,
supervising of products and manufacturing. It help an organisation to make collaboration between
their different elements, so that they can give their best in achieving their goals and objectives. It is
very important for an organisation to make their operations efficient that will help them in achieving
the business goals and objectives. For doing all this, some approaches are required to be
implemented by leaders and managers.
The main objective of the organisation is to, decrease their cost of their production, so that
organisation can give some extra profit to their customers. Inventory control is of the efficient
operational approach that TESCO can implement in their functioning to achieve their future goals
and objectives. For achieving this, TESCO have to adopt Trait theory of leadership, which says that,
TESCO has to hire a leader which have qualities like intelligence, honest, creative, confident,

driven, courage ( Shaheen, 2014). This all will help TESCO to find a person who has ability to lead
their team, and also can do works that are assigned to them, along with this, the person must have
the ability to introduce some innovative changes in their organisation. This will help them in
making their performance better. Inventory control is one of the difficult operation in a business, as
leader has to find some innovative idea that they can implement to their system for making and
achieving inventory control easily. Where as, manager can adopt the Classical approach of
management to manage the performance of organisation in order to achieve Inventory control. In
this, according to manager, employees working with organisation have only economical and
physical needs, they do not have any social as well as needs related to job satisfaction, and if some
one have these, they are not important for organisation. This approach will help manager to make
strategies and plans which are required for achieving an affective inventory control ( Strande,
2014). As this is a tough process, therefore manager also have to design some strategic strategies
and plans. Along with all this, leader and manager of TESCO can use Fayol’s 5 Functions of
management in their organisation, so that they can achieve their goals and objectives. These are as
follow :
1. Planning : Leader and manager of TESCO have to make plans which can help them in future
growth and also help in gaining their goals and objective.
2. Organising : It is very important for an organisation to make organised system between their
different elements. Leader and manager of TESCO also need to make some plans and
strategies which help them in making organised system for their elements.
3. Commanding : It is very important for leader and manager of TESCO to command their
organisation, and rule them so that they can perform their tasks in best way.
4. Coordinating : Making coordination between different operations will help TESCO's leader
and manager to increase efficiencies in their organisation.
5. Controlling : Leader and manager of TESCO have to control the in organisation, so that they
can achieve their goals and objectives easily on time.
6. Conclusions and recommendations for future improvements to be taken by the organisation.
TESCO is one of the leading auto mobile company in the world, which provide their
products and services across the world. They use to perform several operations in their organisation
but some of them are very important in respect to their performance. The key operations are
different for each organisation which depends on their functionality. Finance, operation, strategy,
design of product, forecasting, supply chain configuration, managing the quality are the key

operations of TESCO, that plays a vital role in their performance. For attaining all this in
appropriate manner, they have to adopt some approaches, that will guide the management and help
them in achieving operational efficiency in functionality ( Webb, 2017). They can use just in time,
six sigma or lean production in their operations to make them more productive and cost saving.
There are several external factors that can affect the decision making of leaders and managers in
TESCO. These factors can be competitors, customers, suppliers, regulators, strategic partners. For
future, leader of TESCO that have innovative approach, have to invent some idea that help them in
achieving some difficult approach easily. Along with also have to make policies so that the affect of
external factors on their decisions make can be reduced. That will help them in gaining competitive
advantages and customer satisfaction.
CONCLUSION
From the above report, it is concluded that, leader is a person who work to lead a team by
motivating and guiding employees. They also use to make future objectives for organisation that
will give some benefit to them. While manager is a person, who work to make plans and strategies
according to the goals and objectives made by leader. Manager use to monitor and verify the work
performed by employees that they are according to plans or not. TESCO is one of the leading auto
mobile organisation of the world, they have adopted an operational hierarchy in their management.
Their leaders and managers have to play different roles in different situations. Along with this, there
are several key operational functions that affect the functionality of TESCO. Hiring a leader
according to Trait approach, will help them to achieve some difficult changes in their operations,
which will help them in successfully meeting the goals and objectives.

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