Leadership and Strategic Management: Tesco plc Case Study Analysis

This report delves into the leadership and strategic management practices at Tesco plc, a prominent UK-based retail firm. It begins by outlining current issues in the retail sector, such as employee turnover, pricing strategies, economic changes, and technological advancements, and analyzes their impact on Tesco's operations. The report then evaluates the leadership competencies of key figures like the CEO, CFO, CTO, and project managers, highlighting their roles in designing, planning, and implementing corporate strategies. Furthermore, it assesses leadership traits using various theories, including the Great Man theory, and examines their relationship to strategic management within the organization. The report also explores leadership theories and their practical applications, offering recommendations for improved leadership effectiveness. The analysis incorporates tools like the Leadership Traits Questionnaire and Kolb's learning theory to assess leadership styles and their impact on organizational success. Finally, the report summarizes the key skills and assessments of personal learning and concludes with an overall evaluation of leadership and strategic management at Tesco, providing insights into how effective leadership can drive the firm's operational capabilities and address challenges within the competitive retail landscape.

Leadership and strategic
management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Outlining the current issues in retail business.............................................................................3
Critical analysis and evaluation of leadership competencies of different leaders on design,
planning and implementation of corporate plan or strategy........................................................4
Evaluation of leader and leadership traits using different theories and its relation to strategic
management of the organisation.................................................................................................6
Underpinning Theories for critical analysis of leadership and strategic management with its
role on leadership and examining of relevant leadership theory with effective
recommendations........................................................................................................................9
Summery of skill set and assessment of personal learning.......................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Leadership will help in suitable increase functional capability of the organisation by
effective management of wide range of business operations that supports a better rise in overall
operations of company. Leadership helps the firm to mitigate various issues and reduce their
impact using various theories and measures to maintain the sustainability of the organisation
(Renz and Herman., 2016). A good leader aids in guiding the employee's to perform in a better
way and this assist in suitable improvement in operational capability of firm. Good and positive
leadership will help in suitable rise in ability to meet the aims and objectives set by the firm.
Other than this, it will help in suitable rise in efficiency of the firm (Barney, 2014). For the firm,
Tesco plc has been taken in consideration which is the UK based retail firm. This report will lay
a rise in leadership traits that will help in assessment of strength and weaknesses of a CEO as a
leader of the firm to rise in operational capability of firm (Fitzroy, Hulbert and O'Shannassy,
2016). It will involve the better rise in operational competencies affecting design, planning and
implementation. Various leadership measures are analysed and interlinked in between leadership
and strategic management at Tesco plc. Also, various effective leadership theories and measures
such as a Leadership Traits Questionnaire and Kolb's learning theory is been analysed in the firm
(Ginter, 2018).
MAIN BODY
Outlining the current issues in retail business
The retail sector is facing a vast range of business operations that has impacted suitable
rise in operational capability of the firm. The mitigation of these factors will support that will
help in good growth and development of organisation. As globalisation is increasing, retail firms
like Tesco plc are facing various issues which have impacted growth and development of
operations. This has also helped in suitable rise in functional capability of the firm and thus, it
will give a good support in carrying out the business operations of the company in a better way.
Other than this, it will help in suitable rise of operational capability of retail entity in a better way
(Goetsch and Davis, 2014). The leaders at firm will see through better rise in compatibility of
organisation by mitigating or reducing effect of these retail factors. Some major issues that are
being faced by the firm are:
 Employee's Turnover: As the global competition is increasing, the dissatisfaction level
among the employees is also rising to a high extent. Due to inability to cope up with

stress level and growing competition, workforce at Tesco plc will have to look after the
adoption of suitable and innovative practices to avoid such dreadful and deteriorating
conditions. Thus, leaders or managers at cited enterprise have to take effective step to
ensure employee’s retention in the firm. A good leader will look after the employee
retention and growth measures that will support a good rise in the effectiveness of the
organisation. For instance the CEO will help in taking and implementing proper measures
to retain its work force at Tesco plc.
 Pricing: With opening of global market and entry of many retail firms in field,
competition has increased which has forced retailers to cut down cost to attract maximum
number of customers and meet operational requirements of organisation. This has
impacted auditing and overall financial management of firm. Thus, in such case,
organisation has to handle business operations in the market that will improve overall
operational capability of organisation. Leader has to see through effective management of
operations in a better way (Rothaermel, 2015). The leaders will see through the effective
handling of the pricing strategies in order to lurk in maximum number of potential
customer towards the firm. As a top leader of the firm, The CEO will have the crucial
role in deciding the pricing of various commodities manufactured by the retail firm.
 Economic changes: Tesco plc operates on international level which makes the firm
susceptible to different kinds of economic changes that occur at global level in a firm. It
will affect the overall operations of firm that are required to be taken in consideration in
order to meet the operational requirements of company. Other than this, it will give rise in
operational capability of organisation which will lay a deep and crucial effect on
operational capability of a firm. Leaders at Tesco plc on global level will see through the
better handling of business operations and economic stability of firm (Renz and Herman.,
2016). The leaders at Tesco plc will see through the effective handling of the operations
that will support a good handling of various effective measures to improve the economic
stability of the organisation and reduces the disruptions to a greater extent. Being the
senior most leader of the organisation, a CEO will analyse and implement various
economic strategies that will be beneficial for the cited retail entity.
 Technical advancement: Adoption of the latest technology will help in improving the
overall functionality of organisation that will support a good control on business

operations of organisation. The assimilation of advance technical measure will support a
good handling of operation by the management of operations at Tesco plc. But any sort of
technological glitches and reluctance of adopting the latest technology will impact on
operations that will lay a very deep impact on operations of business entity in a better
way. Leaders at Tesco plc have to see through its effective implementation (Bergh and
et.al., 2016). Leaders at Tesco plc will also see through the adoption and implementation
of different technical implications that will help the organisation to improve its
effectiveness to a greater extent. The CEO at Tesco plc will see through the effective
planning of implementing technological tools within the organisation.
Critical analysis and evaluation of leadership competencies of different leaders on design,
planning and implementation of corporate plan or strategy
Different leaders will be working on the operational capabilities on Tesco plc that will
help in suitable rise in operational capability of organisation. This will help in better handling of
functionality of a firm. Other than this, the leaders will look after the adoption of effective
strategic plan and operations on strategic level that will support effective increase in operational
efficiency of organisation. This will also help in suitable rise in functional capability of an
organisation. Different leaders will look after varied operations and will lay a deep impact on
effectiveness of organisation. Some major corporate persons or leaders and operations performed
by them are as follows:
 Chief executive officer (CEO): he is a leader or the corporate persona which is on
highest level of an organisation like Tesco plc. He will see through the better looking
after of all the different operations that are been followed by the firm. This will help in
suitable rise in operational capability of organisation and thus will help in looking after
the management of the plans and strategies that are been followed by the business
organization. Other than this, he will look after the better decision making process that
will be followed by the business organisation for an effective productivity and growth
(Renz and Herman., 2016). As a leader within the firm, they will see through the overall
operations and actions that are been followed by the firm. Besides this, they will provide
the proper guidance and motivation to fellow employees.
 Chief financial officer (CFO): The CFO will be the concerning ad responsible person
who will look after all financial and monetary related operation that are been followed in

the firm. His main responsibility is to gather effective information and resources related
to financial requirements of the organisation. This will help in better management of
different operations to have a financial stability and sustainability by Tesco plc. Other
than this, the rise in operational capability of a firm will support a better rise in financial
feasibility of enterprise. They will see through the effective management of the financial
strategies and fulfilling the requirements related to it. Other than this, they will adopt the
proper strategies and measures to mitigate the financial risk over the retail enterprise.
 Chief Technical Officer (CTO): He is the concerning person that help in maintaining
and adopting of technological system at Tesco plc. He will look after the better
management of operations which will help in suitable rise in operational capability of an
organisation. Other than this, it helps in effective management of technical functions that
will support a better growth and development of the organisation. A CTO will also look
after the better implementation of the latest technologies in a firm and thus supports a
better enhancement of functional capability in a better way (Hill, Jones and Schilling,
2014). They will also look after the analysing and implementing of the different technical
measures that will help in effective rise in the effectiveness of the business organisation.
 Project managers and leaders: They act as the link between the higher authority and the
lower level management by becoming and intermediate and communication channel for
them. They will see through a better operational management approach and thus will help
in developing a good plan and strategy that will help in better growth and development of
the company. This will also help in suitable rise in overall functionality of a retail
business enterprise. They will motivate the employee's to perform better and will
communicate with higher executives in company to make them aware about need and
demand of customers and employee's. They will interact directly with the employees and
thus will see through the better management of the business project and manage the
requirements associated with it. Besides this, they will also motivate the work force to
effectively execute the business operations.
These executive leaders will lay a deep impact on the operations that will help in suitable
rise in operational capability of organisation that will support a better rise in operation's of the
company. This will also support a good management of different functionality of a business
operation's in company (Johnson, 2016.).

Evaluation of leader and leadership traits using different theories and its relation to strategic
management of the organisation.
A leader will play a very deep and crucial role in execution of operation's that will help in
suitable rise in effectiveness and operational capability of Tesco plc. It will help in suitable rise
in functional capability and thus will lay a deep impact on business operations of the
organisation. He will have a wide range of traits and skill sets that will help the business
operations of the company in a better way. A good leader will have the traits like effective
communication skills, time management attributes, management of business operations of retail
firm and meeting of targeted goals that are been set by the organisation in a better way. Also, a
good leadership will guide and motivate the employee's of organisation to perform better and
handle a wide range of business operation in a better way. Some major theories that are been
taken in consideration by the firm are:
 Great man theory: it is based on perspective that will help in suitable rise in operations
and meeting of targeted goals. This theory is based on principle that leaders are born not
made. It involves the intrinsic characteristics of a good and effective leaders. Besides this,
it will help in suitable rise in operational capability of organisation and supports a good
management of favourable conditions for growth of company. This will indicate that the
leadership traits that are been showcased by an organisation will lay a very deep and
crucial impact on the operations that are been taken in consideration by the organisation.
The leader in these theories will be leading by the perception owned by their followers.
The strength of this theory is that it helps in building of a good trust level in firm but the
major drawback is that it doesn't support the conventional approach of leadership based
on traits and qualities (Urby and McEntire, 2015). The CEO will show cases the qualities
he has acquired through the environment and thus will see through the effective handling
of operations that will support him to execute the operations as a leader at the cited retail
enterprise. However, it is not necessary for him to be born with these qualities, which
nullify the implication of this theory at business entity.
 Trait theory: this theory states that the leader are a result of their environmental
conditions and the skills sets possessed by them ad not on the basis of birth. It involves
the traits that are been obtained by a business operation that will support a good rise in
overall functionality of a business enterprise. The traits and skill sets will involve mental,

social, and physical attributes that will help a leader to gain a good support of his
subordinates. But, this showcase a good behaviour followed by the organisation. The
following of this good traits will help the cited retail firm to have a good control on its
operations and meeting of operational requirements of the company that will help in
suitable rise in functional capability of a business organisation (Morden, 2016). The
strength is that it supports and value the traits but the major weakness is that it doesn't
operate on behaviour of a leader. The CEO at the cited retail enterprise will exhibit
certain traits and qualities which he had acquired through the surrounding environment,
learning and improving of his skills. These traits will motivate him to encourage his work
force as a leader to perform better using these traits and qualities, which can be gained by
anyone.
 Behavioural theory: this theory state that the success of a leader is largely based on the
behaviour and gaining of its operations. It will help in gaining a good control over the
operations that will help in suitable rise in functional capability of a business
organisation. A good behaviour of a leader in his firm will support building a good
relationship with his sub ordinates and will motivate them to meet the operational
requirements of the organisation in a better way. Tesco plc will look after the effective
handling of this theory, that will help it in gaining a good market share and meet the
operational requirements of retail organisation. As per this theory, the CEO will behave
as per the conditions and traits that are been acquired by him. He will react like a leader
at the cited retail enterprise. His behaviour will encourage and guide the employees at
Tesco plc to work in an effective and significant manner and thus will help in improving
the performance of the firm.
 Contingency theory: this theory will state that there is as such no fix measure that will
help in suitable handling of operations that will support the retail firm in a better way.
The attributes and operations that are been followed by the organisation will be
dependent on the situations and attribute that are been existing in the organisation and
thus will help in suitable rise in functional efficiency of a business enterprise that will
support a better rise in capabilities of organisation (Ma and Seidl, 2018). According to
this theory, the leader at an organisation will have certain traits and qualities that will help
in improving the performance of the business organisation as per the prevailing

conditions and thus will help the CEO as the leader to encourage its workforce at the firm
to improve their efficiency and effectiveness.
These leadership theories and traits will help in suitable rise in operational capability of a
business organisation that will help in improving the operations of the company. These theories
and traits will help in corporate strategy management of the operations which will include the
following factors:
SWOT analysis
Strength Weaknesses
These theories will help in suitable rise in
functional capability of the organisation. They
will support a better development of traits and
attributes in company.
The inappropriate selection of traits and
leadership theories can lay a negative impact on
the operations of the company that can impact
the growth and development of a business entity
(Rees and Smith, 2017).
Opportunities Threat
Tesco plc has a good opportunity to adopt
suitable measures that will help in better growth
and development of a business organisation and
thus help in suitable rise in functionality of
organisation.
Inappropriate selection of leader or leadership
qualities can impact the growth of company in a
business scenario.
Porter's five force:
 Competitive rivalry: Tesco plc has to look after the increasing competition in retail
market, that has impacted the revenue generation of the company. This will lay a very
deep impact on operations which will help in suitable rise in functional capability of an
organisation.
 Bargaining by suppliers: suppliers play a very deep role in operational management of
firm. Thus, in this case, leader at Tesco will look after a good negotiation with supplier to
save the revenue.
 Bargaining by buyers: the consumer's are the core source for the income in a company.
Thus, they will look after the better handling of operations which will support a good rise

in operational capability of cited retail entity. Leaders at Tesco will see through better
communication with their clients to have a sustainability (Stead and Stead, 2014).
 Threat of substitution: The firm has to look after the better measures to avoid the
chances of getting substituted in market. The better assessment and adoption of
innovation by a leader in Tesco plc will help in suitable rise in operational capability of
the company.
 Threat of new entry: As Tesco plc is well established in retail market, the treat factor
from the new entrant is very nominal. The leaders will look after the maintenance of
sustainability.
SLEPT analysis:
Social factors: The leaders will see through the effective handling of business operations that
will help in suitable rise in company's operational capability and customer's trust level (Lasserre,
2017).
Legal factors: Leaders at Tesco will see through the effective management of legal obligations
that are been face by an organisation that help in suitable rise in capability of a business
organisation.
Economic factors: Tesco will see through various factors like inflation rates, exchange rates and
monetary policies to have a good sustainability in market.
Political factors: Leaders at Tesco will look after the better following of political relations
which will help in suitable rise in compatibility of a business organisation.
Technology factors: Leader or executives will look after the assessment of latest and innovative
technological measures and will see through effective implementation in organisation to sustain a
better productivity and profit margin of company (Donate and de Pablo, 2015).
Underpinning Theories for critical analysis of leadership and strategic management with its role
on leadership and examining of relevant leadership theory with effective
recommendations.
At Tesco plc, the transactional and transformational leadership theory is been taken in
consideration which help in suitable handling of operation in the company. This will involve the
cultural and political factor that help in suitable rise in efficiency of the operations by improving
the relationship with their employee's.
Transformational leadership:

The transformational leadership helps in better handling of operation that will help in suitable
rise in conscientiousness and better setting up of organisational goals that will help in better
handling of the operations of the company. The CEO will work for implementing the proper
strategies and actions to improve the employees or workers loyalty towards the firm (Betz,
2016). It will help to bring the necessary alterations and transformations within the firm in order
to improve their performance and thus will help in good rise in trade activities and confidence
level of the work force at Tesco plc.
Transactional leadership
The transactional leadership approach will play a very deep role in operations of the
company that will help in suitable rise in overall functionality of retail entity. It will lay the
following impact on improvement of overall actions of Tesco plc in a very effective and efficient
manner such as:
 The transformational leadership will help in suitable rise in operational capability of the
organisation that will help in suitable handling of business functions which are been taken
in consideration by the organisation to meet the operational capabilities of the company
(Contractor and et.al., 2015).
 It will help in building of a good relationship with the employee's of different operations
that will support a good operation in a better way. It helps the employees to rise above the
self interests and make a strategic and feasible plan for the betterment of organisation. It
will also support a better adoption of innovative measures that will help in suitable rise in
compatibility of employee's in a better way. The interpersonal bonding and effective trust
level will help the organisation to increase its efficiency and gain a good market share.
 The leadership will also help the management of firm to make strategic and operational
changes for the betterment of the business enterprise. This will help in suitable rise in
operational capability that will help in suitable rise in effectiveness and achievement of
targeted goals and gaining a suitable customer satisfaction level.
 The better adoption of operational measures under transactional leadership approach will
help in better improving in functional capabilities of organisation. This will help in
superior rise in operational capability of cited retail entity which will support a rise in
functional capability of organisation (Fitzroy, Hulbert and O'Shannassy, 2016).

It will help a CEO to handle a wide range of business issues that will help in good
improvement in performance of the business activities and thus will help in suitable motivation
of the workforce at cited retail entity.
A leader will follow either the transactional or transformational theories in a better way to
gain a good control over the operations that will help in suitable rise in compatibility of work
force of different departments of the company in a better way. A leader will follow the operations
that will help in better growth and development of operations which will help in suitable rise in
functional capability of organisation. The CEO at Tesco plc will use these theories to imply
effective leadership within the organisational structure and motivate, guide and lead its work
orce to perform better in the market scenario.
This will also help in better development of an efficient individual as an effective leader
that will help the organisation and its work force to guide and gain a good share of market. This
will help in suitable rise in compatibility which will support a good rise in functional capacity of
a business organisation. This leadership approach will lay a good impact on operations of
company and will affect a leader in following way:
 Developing as a strong role model: a good leader will emerge as a very effective role
model for its sub ordinate and fellow employee's. This will help the leader to motivate the
employee's which will help in appropriate rise in efficiency of an organisation.
 Showcasing competence: a good leader will effectively showcase the competency
measures that will help in suitable rise in his personal efficiency as well as that of his
employee's in the cited retail firm.
 Enabling communication: this will help in suitable handling of communication process
that will help in suitable rise in operational compatibility of organisation. A good
communication will help in developing of better understanding and imparting of policies,
code of conducts and regulations within various departments of the firm (Betz, 2016.).
The CEO at the Tesco Plc will look after the effective adoption and implementation of
these measures which will help in rise in the effectiveness of the business organisations to meet
the needs and demands of their buyers in an effective and significant manner. This will support a
good rise in the compatibility and handling of the different sort of business operations by the
work force at the cited retail enterprise. It will also help in better management of the corporate
strategies and effective planning of business operations.