Tesco: Leadership Styles, Vision, Culture, and Management Practices

This report provides a comprehensive analysis of Tesco, a multinational retail firm, focusing on its leadership style, vision, organizational culture, and management practices. It begins with a brief history of Tesco and explains the rationale behind its selection for the study. The report delves into Tesco's democratic leadership style, vision statement, and organizational culture, including power, role, task, and person cultures. It further examines management practices such as communication, goal setting, and strategic planning, and how they influence business functions. The report also explores the influence of management style and culture on business strategies. Finally, it concludes with recommendations for improvements to Tesco's leadership style and management practices, offering insights for future development.

Context Of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
1) History about Tesco and stated the reason for the choice. .....................................................1
2) Discuss leadership style, vision , organizational culture and management practices. ...........1
3) Examine the management style and culture and how they influence business strategies and
functions in the market place. ....................................................................................................4
4)Recommendations for improvements to Tesco in regards to leadership style and
management practices.................................................................................................................5
CONCULSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Leadership style is a method used by leaders for providing direction and motivating staff
members to perform better (Aji, 2018). Whereas, management practices and organizational culture
in an organization aid to perform effectively in order to meet the emerging needs and demands
of the customers. This report is based on Tesco which is a multinational retail firm in UK. It
cover explanation regarding vision, leadership style and management theories. Also, focus on
culture and management style and how they affect the business functions.
1) History about Tesco and stated the reason for the choice.
Tesco is British multinational groceries retail store in UK. Organization was founded in
the year 1919 by jack Cohen . This retail store is located in Welwyn Garden City and around
4,50000 employees are working across the globe (Jończyk and Buchelt, 2015). The organisations
has 6,800 shops across the globe. The reason behind choosing this multinational grocery store is
that firm gained profit of £1 on day one from the sale of £4. Business associated work day and
night to buy up rival shops in the competitive market place. Tesco opened the first petrol station
in UK in the year 1974 which become the largest independent petrol retailer in the market
(History about Tesco, 2018). The official website of Tesco is Tesco.com which came into
existence in the year 2000 and expanded its range of products which includes, clothes, personal
finance product, grocery items, home products, electrical appliances etc.
2) Discuss leadership style, vision , organizational culture and management practices.
In today's era of 21st century every small or big organization has their own vision
statement, leadership style, management practices and organizational culture in order to create
tough competition for other firm in the competitive world (Kim and HWANG, 2016). Tesco is a
British multinational grocery retail store in United Kingdom, the vision statement, management
practices, style of leaders and culture of company are explained as follows:
Leadership Style: There are two types of leadership style which are, autocratic and
democratic leadership style. In the intance competitive world Tesco adopts democratic leadership
style in order to retain capable and skilled workers for longer time duration. The other name of
this style is participant leadership style. However, this particular style is adopted in the working
premises of Tesco so that employees suggestion are valued in the decision making process in
order to achieve best outcomes. By doing so Tesco's staff members will be assured that they are
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valuable and most precious assets of the organization. Due to which productivity and market
ratio raised at a tremendous scale. In this case the authority and responsibilities are decentralized
so that employees gets motivated to perform better in order to meet the emerging needs of the
customers (Leadership style used in Tesco, 2018). Top level management of Tesco has less
control on the staff members working pattern due to which both personal and firm's goals are
meet on time which is a positive sign for the company.
Vision statement of Tesco: In the neck to neck competition the vision statement differs
from each other. However, Tesco's vision statement is “ Firm design what matters better,
jointly”. In order to fulfil the formulated vision of Tesco staff members and enterprise work
effectively and efficiently to bind the consumers with the goods and services. They come up
unique thinking and idea so that customers does not switch to some other brand in order to
satisfy their preferences (Vision statement of Tesco, 2018). The vision statement depicts that
administration work together in order to gain what is better.
Organizational culture: Tesco is a British multinational grocery retail store in UK and
it's organizational culture depends on it's type of business in the competitive world. Tesco uses
Handy's four classes of culture in their organizational which are explained as follows:
Power culture: In this case power is held by limited people but their impact is spread
across the organization premises. The employees of Tesco achieve the set goals by either hook or
crock in the given duration of time. Here, workers are judged on the basis of their achievement
rather then how they achieved or how they do things. By doing so productivity level and
profitability ratio increased at a rapid scale in the competitive market place.
Role culture: In this particular case company is based on rules and responsibilities. The
power of people is identified with the position or the post in the organization structure. In an
organization the role culture varies accordingly for example, in small business enterprise role
culture tend to be bureaucratic. Whereas, in big organization like Tesco the role culture is tall
with long chain of command (Nuansate, 2016).
Task culture: In an firm task culture is adopted when particular project or problem is
addressed. In order to get results for the issues this is used so that business functions can be
carried out easily. According to the responsibilities the power changes and depends on the status
of the project or problem respectively.
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Person culture: In the market every organization exists for people to work. In person
culture every employee should consider themselves unique for the firm. Tesco staff members
care treated as valuable assets of the company as given the first priority so that they work
effectively. In the cut throat competitive world administration with person culture is a heap of
people who are working for the same firm (Organizational culture of Tesco, 2018).
Management practices: This can be explained as innovations and working methods
which mangers adopts in order to upgrade work system effectiveness. Here, are some of the
common management practices which are used by every small and big firm such as , training
staff, implementing schemes for uplifting quality, modern technology, empowering employees
etc. In this case the management practices such as, setting demanding realistic goals,
communication, effective planning etc. are carried out in the enterprise. Due to which every
department of the firm runs smoothly. Distinguished organization has various management
practices which help the business to run smoothly. It is the core function of every administration
and is accountable to the well-being of firm's stakeholders such as, employees and investors.
The various management practices are discussed as follows:
Communication: Effective communication is one of the best management practices
which need to be carried out in the working premises (OS, 2017). Due to which information is
carried out transparently which leads to more productivity. Management is about
communicating relevant information and knowledge to their staff members so that chances of
error decreases in the cut throat competitive world. Tesco management carries out free flow of
communication due to which every department provides best results. When channel of
communication is ineffective in the working premises the outcomes are also un-stiasfactiory.
Due to which customer base for the product or services decreases at a rapid scale. In order to
achieve best results clear and transparent free flow of communication should be carried out in
order to build goodwill in the market.
Setting and demanding realistic goals: To be successful in the market place
organization need to frame realistic objectives which can be achieved. By doing so it motivates
the employees to perform better in order to raise productivity and profitability in the intance
market. Many times business associates tends to fail in the market because of unrealistic and
unachievable goals. Tesco can is succeeding bin the market because the set objectives are
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realistic in nature and employees can work accordingly to meet them. In order to survive for
longer time duration it is very mandatory to set realistic goals in the market place.
Strategic planning: For long term benefit Tesco design strategic planning so that it can
be achieved respectively. By formulating strong strategic planning it directly aid the
administration to grow and flourish in the international market. Tesco is able to capture huge
market ratio because the tactics used is unique and innovative (YILDIRIM, 2018). Top level
management is accountable to preparing strategies for Tesco so that tough competition can be
created for other firm in the competitive world. By doing so expansion of business in retail sector
increased at a tremendous scale.
3) Examine the management style and culture and how they influence business strategies and
functions in the market place.
The influence of culture and management style on business functions are explained as
follows:
Management style influence on business strategies and functions.
 Democratic management style is used by Tesco so that skilled and capable workers can
be retained for longer time duration. Due to which business functions are carried out
smoothly. As employees are involved in decision making process firm is able to build
strong strategies in order to capture more market ratio.
 This style helped the administration to raise their productivity level by using the
resources effectively and efficiently in the cut throat competitive world. Workers
involvement in the decision making process is the main reason to frame strong strategies
for marketing the goods and services. By doing so it gives birth to innovative idea.
Moreover, conflict ratio decreased and effective functioning of the working is carried out.
 Tesco is able to flourish in the internation level because of democratic style because in
this roles and responsibilities are decentralized. By involving them in the decision staff
members are assured that they are valuable part of the firm. Due to which they work day
and night to meet the emerging needs and preferences of the customers. Which directly
leads to raise in functioning of the business at a rapid scale. As well as strategic ways are
adopted to achieve it.
Cultural influence on business strategies and functions.
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 Handy's model helps the organization to meet set goals on time duration. Due to which
business functions improves in the cut throat competitive world.
 Role culture helps to better understand the power of the individual by it's post. Due to
which strategies are formulated respectively to remain in the post for longer time
duration. It directly improved the functions of Tesco to cope up with the emerging trends.
 Person culture helps to frame unique tactics as ever employee is precious and unique in
themselves. Due to which Tesco operation activity increases at a rapid scale by which
emerging needs and preferences of customers are meet on time. Y doing goodwill is
raised in the market (Sunarni, 2015).
4)Recommendations for improvements to Tesco in regards to leadership style and management
practices.
The various recommendations suggested to tesco are discussed as follows:
 Tesco should use other leadership styles like autocratic and positive and negative
leadership style so that huge market ratio can be captured in the near future.
 Powers should be centralized so that employees can not misuse it.
 Involving in every decision making process can be problem for the organisation as there
are chances to leak the information in the market.
 By decentralizing the power in the hands of the staff members chaos and conflicts
emerged on continuous basis due to which productivity decreases (Moe and Boonpram,
2018).
CONCULSION
From the above it can be summarized that administration frame vision statement,
leadership styles, organization culture and management practices so that company can survive
for longer time duration in the competitive world. Vision statement motivates employees of the
business to work effectively and efficiently to meet the desired goals on time. Additionally, It
focus on how management practices like, communication, realistic objectives, strategic planning
etc. assist them to grow and flourish in the market. Whereas, organizational culture helps the set
tough standards for other competitors.
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REFERENCES
Books and journals
Aji, S. S. B., 2018. THE DETERMINANTS AFFECTING FRAUD TRENDS. Asia Pacific Fraud
Journal, 3(1), pp.21-31.
Jończyk, J. and Buchelt, B., 2015. Employee Appraisal as the Tool of the Pro-innovative
Organizational Culture Formation in Hospitals36. Journal of Intercultural
Management. 7(2). pp.135-150.
Kim, H. J. and HWANG, H. S., 2016. The Effects of KindergartensOrganizational Culture,
DirectorsTransformational Leadership and TeachersCreative Personality on
Kindergarten TeachersTeaching Flow. Journal of Fisheries and Marine Sciences
Education. 28(1). pp.150-161.
Moe, C. M. M., Ye, Y. and Boonpram, V., 2018. The relationship between teachers’ perception
towards organizational culture and occupational stress at no. 2 basic education high
school, in insein township, Myanmar. Scholar: Human Sciences. 9(2).
Nuansate, S., 2016. Synergistic effect of responsive, proactive market orientation and
organization culture and its impact on hotel overall business performance in
Thailand (Doctoral dissertation, Universiti Utara Malaysia).
OS, Z. H. B., 2017. PENGARUH GAYA KEPEMIMPINAN DAN MOTIVASI KERJA
TERHADAP KINERJA KARYAWAN DI HOTEL MAXONE PALEMBANG (Doctoral
dissertation, Universitas Muhammadiyah Palembang).
Sunarni, C. W., 2015. Management accounting practices at hospitality business in Yogyakarta,
Indonesia. Review of Integrative Business and Economics Research. 4(1). p.380.
Wasiuzzaman Shohan, M., 2015. Case study on solid waste mangement in Dhaka City.
YILDIRIM, A., 2018. LEADERSHIP QUALITIES OF YOUTH. Cherkasy University Bulletin:
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Online
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Vision statement of Tesco. 2018.[Online]. Available
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Organizational culture of Tesco. 2018.[Online]. Available
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handy//>
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