TESCO: Leadership, Management, Operations and Business Environment

This report provides a comprehensive analysis of leadership and management practices within TESCO, a multinational retail company. It begins by differentiating the roles and characteristics of leaders and managers, highlighting their significance in achieving organizational goals. The repo...Read More

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Roles and characteristics of leaders and managers...............................................................4
TASK 2............................................................................................................................................4
P2. How are roles of leaders and managers applicable in various situations..............................4
P3. Applying different models and theories of approach............................................................4
TASK 3............................................................................................................................................4
P4. Key approaches to operations management and role played by managers and leaders........4
P5. Importance of operations management in achieving business objectives ...........................4
TASK 4............................................................................................................................................4
P6. Factors of business environment affect operational management and decision-making by
leaders and manager....................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Operation management is concerned with management function of business practices
with the purpose to ensure maximum efficiency in business organisation as this further helps to
increase profitability (Beske and Seuring, 2014). This is wide concept which is associated with
identification, review and control operational function for manufacturing of products and
services. This is related to maintaining quality standards of products along with systematic
management for balance between revenue and cost for the entity. This report is based on TESCO
which is multinational retail sector company dealing in general merchandise and groceries. It is
situated in Hertfordshire, United Kingdom, which was founded by John Allan in the year 1919.
This company follows hierarchical structure as it emphasises on various department of business
as TESCO has multiple layers of departments in organisation structure. This report explains
about characteristics, roles and responsibilities of managers and leaders in specific situation.
Along with this, different approaches concerned with operations management along with various
theories and models. Besides this, Factors of business environment affecting operational
management and decision-making by leaders and manager have been described (Boyd. and
Dougherty, 2016).
TASK 1
P1. Roles and characteristics of leaders and managers
Leaders and manager both are inseparable and important components for every business
organisation. Roles and responsibilities performed by them ensures growth and profitability of
company.
Leader: They are known as individuals having the ability to influence and motivate the
employees towards achievement of set objectives and goals (Simons, Collewaert and
Masschelein, 2015). With respect to TESCO, leaders motivate their employees by using their
positive attitude and behaviour as this helps to motivate them to perform their task as per their
competency level. This assist the leaders to ensure completion of tasks and accomplishment of
set targets as per specified time period.
Leaders role at TESCO
 Leaders of TESCO, formulates a plan for both company and employee's as this helps in
performing tasks effectively and efficiently.

 The role of leaders of TESCO is to set clear vision by motivating and influencing
employees to accept and understand the anticipated position of organisation.
 In TESCO, leaders decision-making process is concerned with taking right decisions for
their organisations towards fulfilment of their goals and objectives.
Characteristics of leaders in TESCO
 Leaders in TESCO are honest, skilled and highly committed towards their work so,
they have the ability to influence and motivate individuals and employees to be like
their leaders.
 The leaders of TESCO possess attractive and charismatic personality because of this
they become idols for their subordinates and employee's which helps in enhancing
their overall performance and productivity.
Managers: They are individuals who are responsible for administration and management
of company affairs in most effective and efficient manner (Hershberger, 2015). Their main
functions are concerned with planning, organising, directing, monitoring and controlling so that
organisational objectives are achieved on timely basis with optimization of resources. In context
of TESCO, managers delivers instructions of top level management to subordinates and ensures
that operations are completed on timely basis. They act as linkage pin between top level and
lower level management.
Functions of a Manager:
There are five major functions which includes planning, organising, controlling,
commanding and coordinating. For instance, manager of TESCO plan to develop a new product
in order to gain competitive advantages at the marketplace. First managers should convey this
information to their employees and decides in advance what steps should taken in order to
accomplish their target. In order to develop a new product it is essential to arrange or organise
required material as well as human resource. It is the duty of manager to give command to their
employees which can aid them to perform their work in an effective manner. Along with this,
while giving command it is also very important for a manager to maintain coordination among
their employees which can reduce chances of conflicts and disputes. For eliminating overlapping

and defects while manufacturing products it is very essential to control and evaluate on a regular
basis.
Role of Managers in TESCO
 The primary role of managers at TESCO is related to management and controlling of
tasks along with performance appraisal of employees on regular basis.
 Managers of TESCO are accountable for communicating needful and relevant
information to lower level employee so as to provide their assistance towards
achievement of organisational goals and objectives (Ellitan, 2017).
Characteristics of Managers in TESCO
 Decisional power- Managers in TESCO delegate task to the employees on the basis of
their ability and knowledge in an organisation. With the help of which company can
enhance their overall productivity and performance (Fan, Liu, and Zhang, 2015).
 Adaptive in nature- Managers of Googles, are adaptive in nature, so they easily accept
the changes in environment on continuous basis. In today's competitive scenario, the
managers must adopt latest technology which will enhance their productivity and
maximise returns (Eraki, 2015).
Differences between Management and Leadership of TESCO
Basis of Comparison Managers Leaders
Traits Managers of TESCO are
synopsis of innovation along
with decision-making ability
and communication skills.
Leaders at TESCO lay down
more emphasises on
motivating, and influencing the
employees with confidence as
this helps in achievement of
goals and objectives.
Authority and power The managers of TESCO are
accountable for allotment and
management of work activities
and have the power for
decision-making and
Leaders of TESCO possess
with power as they ensures
enhanced production along
with completion of tasks in

controlling of organisational
tasks.
effective manner.
Subordinates The subordinates of managers
of TESCO are their
employee's.
For leaders of TESCO the
followers are their
subordinates.
TASK 2
P2. How are roles of leaders and managers applicable in various situations.
TESCO is British multinational retail sector company which offers groceries, household
products, and general merchandise products to customer's by conducting business operation's in
the international market (Fredendall, and Hill, 2016). It is very much important to formulate
strategies so as to remain competitive in dynamic and complex business environment. Managers
in TESCO performs various activities related to important projects, allotment of tasks to
employees based on their skills and expertise. It is important for managers of TESCO to adopt
and change their technologies as per environmental changes and accordingly training is provided
to leaders and their team members. On the other hand role of managers is to focus on
development of the organisation. Both managers and leaders perform their tasks in coordinated
manner so that complex business situations are handled effectively. Two examples of such
critical situations with regards to TESCO have been stated as under:-
Team-building: This task is the most critical task for business organisation as there are
many members from organisational culture. In this, managers of TESCO follows democratic
style of leadership in order to allow employees to take active participation in decision making
process. In which managers directs its team members to work in a team, which leads in

improving their performance in a competitive business environment and achieving the business
objectives. On the other hand, leaders of TESCO try to establish trust among its subordinates,
which helps in creating a positive and healthy work environment in business organisation
(Glukhov and Balashova, 2015).
Project management: The creative thinking of many business organisations depends on
implementation of their projects in efficacious way. This is also regarded as difficult for every
organisation as it helps in choosing effective strategies for businesses. With reference to TESCO,
it is necessary for managers of TESCO to make optimum allocation of resources and carry out
business operations with the objective to attain the objectives and goals in stipulated time period.
It is important for managers of TESCO to assign roles and responsibilities to their subordinates
as per their abilities. Here the main role of leaders of TESCO is to monitor performance of their
team members and also provide training sessions, in order to increase their skills and knowledge.
On the other hand, the role of a manager is to provide proper guidance to their subordinates,
which helps in completion of tasks in effective and efficacious manner to gain competitive
business environment (Muller, 2014).
P3. Applying different models and theories of approach.
Leadership is an art, which help an individual in leading huge number of people
and guiding them, so that they can improve their performance and attain their as well as
organisational goals and objectives. Therefore, for manager and leader of TESCO, it is very
much important for them to adopt different theories which can help them in leading and
managing their organisation and work place in different situations. Some of these are given
below :-
 Situational leadership : This is a leadership style which is very much effective for
leaders and manager working in any organisation. As this help them in adopting different
leadership styles according to the situation, which help them in playing different roles in
different conditions at work place in order to run the organisation smoothly. Leader and
manager of TESCO can use this leadership style, as this will aid them in guiding and
managing their employees according to the situation arise within the workplace. For
instance, if the employees of TESCO face some issues within the organisation related to
the changing technology, at this time it is the duty of leader to motivate their employees
as well as try to understand the issues faced by them. On the other hand, manager of

TESCO should make strategies according to the changes takes place and try to resolve
the problem in an effective manner. For this managers have to conduct some training and
development sessions for their employees, in order to develop their skills and knowledge
which will aid them to adopt new technology effectively (Nayak, 2015).
 Contingency leadership : This leadership style was given by Fred Edward Fiedler in
year 1964. In this, they use to say that, there is no leadership style which is said as best
for a leader. The leadership style which is adopted by leader and which use to give some
results to leader are the best for them in that situations. Here, leader and manager of
TESCO, it is very much important for them to adopt different leadership theories in
different situations, which can give them some results. As this will help them in playing
ample number of roles at working environment, which depends on situations. For
example, If employees working at TESCO, have some issues between each other and also
have dispute among each other or have grouping at working place. Then in such
conditions, for leader it is very much important for them to adopt some effective
leadership style, so that they can motivate their employees and also can decrease the level
of difference among employees. Along with this, manager of organisation have to make
plans and strategies, so that the love and affection between these employees can get
increased. Therefore, manager and leader of TESCO have to place different roles and
responsibilities in different situations, so that they can manage a discipline at their work
place (Ozguven, and Ozbay, 2015).
From the above discussion, it has been states that, the leadership style which is said to be
most beneficial for leader and manager of TESCO will be Contingency leadership style. As this
will help them in adopting different style of management and leadership in different situations,
so that they can get best results.
TASK 3
P4. Key approaches to operations management and role played by managers and leaders.
Operation's management is concerned with the procedure of procurement of raw
materials until they are converted into finished products. This emphasises on elimination and
reduction of wastage of resources and also ensures optimum allocation of resources (Plesser, and
et. al., 2014). The purpose of this objective is to increase the level of effectiveness and efficiency

of the operations of TESCO. Their are two major operational functions being performed at
TESCO which are discussed below:-
Production: This is the major and most important activity within the company. This
organisational function is related to transformation of raw materials into finished products which
means conversion of inputs into outputs.
Transportation: As now task of production is completed now the another major function
is related to transportation of products from one place to another. This is important function for
managers of TESCO as this ensures that the groceries and merchandise are delivered to
customer's on time.
Various approaches being used within operations management are described below: -
Six Sigma: It is a discipline, data driven approach based on statistics, which involve
continuous improvement in order to eliminate or reduce defects in the whole process or products
manufactured by companies. This approach was developed by Motorola and Bill Smith in the
year 1980 with the aim of eliminating defects in the products, services and processes (Qin,. and
Nembhard, 2015). It is referred to as statistical approach utilised by managers in business
organisations to reduce any type of error and defect that are available in products and services
which are being delivered by company. The six sigma approach helps leaders and managers of
TESCO in enhancing their productivity with minimum defects so that goals and objectives of
organisation are accomplished within specified time period. This approach of operations
management is used in TESCO for analysing and evaluating the performance of their employee's
within company and finding out if there are any errors and defects. Six sigma approach is further
classified into two types, namely, DMAIC and DMADV. This approach also helps management
of TESCO for appraising current performance of human resources which will further help in
maintaining quality standards (Tristancho, . and Gutiérrez, 2012).
Just in time approach: It is a strategy adopted by various organisations which improve
the efficiency and reduce waste by receiving raw material only when it is required. This
approach is put-upon in action by business organisation to eliminate the delay caused in
acquisition of materials and production process for conversion of raw material into finished
products. This is being used by leaders and managers of TESCO to carry out effective inventory
management process. This method makes use of lean methodology for enhancing the existent

level of performance of individuals as well as organisation. Just in time approach focuses upon
reduction of cost associated with inventory management along with elimination of dead stock
possibility (Wang, 2015).
Total Quality Management (TQM): It is defined as a customer oriented process with
the aim of continuous improvement in order to satisfy the requirements of customers. This is
management approach is used by business organisation whose main aim is to maintain the
quality of products and services. In context of TESCO, this approach leads to maintain the
customer's loyalty in favour of brand image for long term purpose. This approach is associated
with coordinated efforts of all employee's as this helps to eliminate wastage and provide
customer's with supreme quality products. Also, Total Quality Management helps in developing
the organisational culture of TESCO which leads to promote operational excellence in the
overall organisation.
P5. Importance of operations management in achieving business objectives
Operation's management is lifeblood for every business organisation as this function is
concerned with management and control of activities of the business organisation. This process
is mainly related to planning, organising, controlling and monitoring as this helps in managing
people, information and all other necessary resources. With reference to TESCO, the core
function is operation's management as their main objective is to maintain quality of products and
services as per customer's expectations. Along with this, it further helps to develop positive
image of the organisation in market. The importance of operation's management for organisation
is discussed below:-
Customer satisfaction: this is important aspect for every organisation to fulfil
customer's needs and provide them with maximum satisfaction as this leads to retain customer's
for long term. Managers of TESCO, emphasises every need of employees by listening to their
problems and do proper survey to fulfil their needs and wants as this will maximise their
satisfaction level. Also, to satisfy customer's leaders of TESCO adopts latest technology and
motivates employees to accept the changes rather than resisting changes as this can act as hurdle
for the organisation (Wen-chao 2012).
Enhancing overall productivity: Enhanced productivity is significant factor which leads
to long term success of every business organisation. In TESCO the products and services are

rendered to customer's by emphasising on providing maximum satisfaction as compared to
competitors as this further leads to increased productivity. The leaders at TESCO provides
proper guidance and motivation to their team associates for adapting latest technologies which
will keep them highly committed towards their work. Also managers conduct training and
development sessions as this enhance their knowledge base which in turn results in increased
productivity.
Quality management: Now-a-days people are becoming very much conscious about
quality of products and services which are provided to customer's so, quality of every product
must be maintained with proper quality management tools and techniques. The managers of
TESCO maintains quality of products by adopting latest software and technology. The quality of
products and services is maintained by going through continuous monitoring, checking and
changing with respect to quality standards. The leaders of TESCO provide proper and complete
information at the time of production of quality products and services which helps organisation
to remain efficacious and competitive in the market and assist both managers and leaders
towards accomplishment of their targets and objectives (Wiggins, 2014).
High Goodwill: The management function related to operation's helps business
organisation in building strong brand image and goodwill in the market. High reputation and
goodwill helps the managers and leaders to gain competitive advantage within market. Leaders
of TESCO prefer situational leadership style as change their leadership styles as per the
situational aspect. The leaders and managers of TESCO influence and motivates their employees
to attend training sessions as this further leads in achieving objectives in effective and efficacious
manner.
TASK 4
P6. Factors of business environment affect operational management and decision-making by
leaders and manager
There are various factors in complex business environment which impact operational
management and decision-making process of both leaders and managers. The business
environment is composed of internal and external factors which involves employees,
organisation structure, clients, customers, technology, economical changes and many more

which has influence over functioning of operations in organisation. Both these factors impact
decision-making of leaders and managers (Wilke, 2014). The factors of business environment
are further categorised as internal and external factors which are discussed below:-
Internal Factors
Internal factors are referred to those factors which arises in the organisation and are under
control of managers and leaders. These factors can also leave either positive and negative impact
on operation's and success of business organisation. Various internal factors are briefly described
below:-
 Value system- The value system of every organisation is concerned with ethical beliefs,
morals, standards and traditions which will help in achieving aims and objectives of
organisation. This system is not only confined to values towards production or consumers
but it is also helps in determination of behaviour towards their employees and society. In
context of TESCO, the values involves that they treat their employees and customers
fairly. Also, decision-making of managers and leaders is based on transparency and
ethical considerations of TESCO.
 Organisation structure- This structure outlines hierarchy of jobs, roles and duties
which are directed towards accomplishment of objectives of organisation. The
organisational structure followed in TESCO is hierarchical organisational structure. As
per this structure the duties and positions are segregated into part as this ensures that
activities are conducted smoothly and efficiently. TESCO's organisation structure
involves five committees which directly reports to Board of Directors. It is hierarchical
as this reflects the large scale business of the business organisation. If there are any
changes in structure of organisation than leaders and managers decision-making must be
done after having proper knowledge about changes being made (Williams, 2015).
 Human resource- The human resources are considered to be most valuable asset for
organisation as this helps in profit maximisation with increased profitability. For every
organisation human resources can act as strength or weakness which is associated with
their knowledge, commitment, expertise and skills. With reference to TESCO, the
managers emphasises on recruiting attractive and efficient talent in organisation. The

employees of TESCO are highly motivated and committed towards work as they get
effective compensation packages and various non-monetary incentives and benefits
which leads to enhanced productivity and profitability. Along with this the decision-
making of leaders is done after considering the various factors which indirectly or
directly encourages employees towards attainment of organisational goals in best
efficacious manner (XIANG and et. al., 2013).
External Factors
External factors are known as those factors which are available outside the business
organisation and these are beyond control of managers and leaders. Some of external factors are
briefly explained below:-
PESTEL analysis:
 Political factors: It is one of the biggest external factor which affects the working of an
organisation. In context to TESCO, company offer its products and services across the
world, changing in governmental policies can affect the functioning in both negative as
well as positive manner. For example, rise in the rate of export and import duty can
reduce the overall profitability of the company.
 Economical factor: Economic factor of a company plays very important role in the
overall performance of an enterprise. With the help of good economic condition, TESCO
is conducting its business operation's in an effective manner. For instance, rebate in
taxation policy can increase the profitability of company.
 Social factor: It is the factors refers to cultural beliefs, values and customs of a specific
region. TESCO has a good reputation at marketplace, which adopts the customers values,
beliefs in an effective manner which increases their overall profitability as well as
goodwill at the marketplace. For example, one of the biggest problem is unemployment
which is reduced by TESCO by hiring large number if capable employees as well as
increase their reputation at the marketplace.
 Technological factors: There are many technological changes as the business
environment is dynamic in nature (Yun,. and et. al., 2018). Every company must adopt
technological advancements as these are uncontrollable and put direct impact on business
operations of the company. Also, these advancements leads to generate more returns with

enhanced productivity but sometimes these can become threat for business. Leaders are
so much adaptable in nature as they are constantly looking for developing the
organisation in this complex technological environment. For instance, the managers of
TESCO makes huge investments to adopt latest technology with the aim to maximise
productivity and returns as this leads to reduction of production cost with effective
quality products and services (Zhao, 2015).
 Environmental factor: It is one of the most important factor where government of the
country formulate rules and regulations in order to secure the environment. In context to
TESCO, company is using renewable resources in order to generate electricity by the
year 2030. In addition to this company also reduces their carbon footprint by the end of
year 2020.
 Legal factors: These factors are very essential as it helps in identification of success
factors for company all over the world. Their will be direct impact on activities of
businesses as these changes are beyond the control of managers and leaders. For
development of any business organisation the managers and leaders must adhere to laws,
rules and policies of the specific country. In TESCO the leaders and managers decision-
making is concerned in such a way that company entertains benefits which are taken as
per laws prevailing in the country. Only those legal factors are considered which helps in
diversification and expansion of business at international level.
CONCLUSION
From the above summarised report, it has been concluded that operations management
plays significant role at all levels and functions in every business organisation. It has been
analysed that leaders and managers are important individuals which assist organisations towards
sustainable growth and development. Also, it helps to have understanding that leaders adopt
transformational theory whereas, managers adopts classical theory of management as this
ensures accomplishment of goals and targets in effective and efficient manner. The leaders and

managers follows different principles and approaches for increasing efficiency of employees as
this helps in increasing productivity for company. Along with this, there are various business
environment factors which affects the decision making power of leaders and managers and leave
impact on operational management. Lastly, it can be said that management operations and its
approaches assist organisation in maintaining overall production system and plays crucial role
towards achievement of business objectives and goals.
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