Leadership and Management Strategies at Tesco: An Evaluative Report

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This report provides a comprehensive analysis of Tesco's leadership and management practices, examining the need for change and the implementation of strategic planning to improve services. The report utilizes PESTLE analysis to evaluate external factors influencing the organization and highlights the importance of strategic vision, mission, and objectives. It discusses the resources required for change, including physical resources, information technology, and human resources development. The report also explores the use of Gantt charts for project management, emphasizing the democratic leadership style employed by Tesco and its impact on stakeholders. Furthermore, the report considers the integration of customer-focused leadership and the importance of key performance indicators (KPIs) in measuring success, with a focus on quality management and performance improvement. The report concludes by assessing the short, medium, and long-term impacts of the action plan on stakeholders.
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Split Leadership and
Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
What needs to change and why?..................................................................................................3
Resources required to implement the changes and improve the services....................................5
Implementing the plan to improve the services...........................................................................6
Impact of action plan on stakeholders in short, medium and long term with reference to KPI 10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
From the current situation of the Tesco discussing SWOT(strength, weakness, opportunity and
threat) and opportunity which could be explored along with relating it with thinking and planning
strategically theories. Specifying SMART(specific, measurable/ quantifiable, achievable,
relevant, time-limited). Key performance indicators. Presenting the Gantt's chart which helps
team to work around deadlines and properly allocating resources. Explaining plan to implement
to project management tools. Democratic style of leadership means here every member of the
group takes part in decision-making and highlight how they influence the outcome of action plan
and identifying the best idea in achieving the goal. Then discussing how to motivate the staff
with the motivational theory. How that action plan has put impact on stakeholders in short,
medium and long term. Considering the quality management and performance improvement
issues.
MAIN BODY
What needs to change and why?
Business operations is a continuous operations which require many types of innovations and
changes in the system for improving the productivity and growth of the organization. For
improving any process in a business organization some strategies and planning need to be
followed by the employees in order to achieve more success. For changing any task the
organization perform three tasks like at first it builds and modifies the strategic vision and
mission, commits to goals that drive overall health and the last one is to develop a long term plan
to achieve the goals (AlQershi,2021). Strategic planning is very important for achieving the
goals and for this there are six elements of this like defining the vision of the organization,
creating the mission ,setting objectives, developing strategies, outlining the approaches and
getting down to tactics .here the opportunities of Tesco company will be discusses on the basis of
PESTLE analysis. The PESTLE analysis of Tesco analysis helps in identifying the various
external factors like political, economic, social, technological, legal and environmental aspects of
the organization. It is very helpful for the organization in understanding the dynamics of the
market and improve the business.
Political factors:
Tesco is one of the largest retailer in the world have various types of rules and regulations to be
followed for ensuring the safety of the products. The company have business in many other
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countries as well so the organization need to keep a tab on the changing political situations .it
would be better for trading if the political environment is stable in the company.
Economic Factors:
The company should take of the economic changes that are occurring in the country and there are
many factors that affect the revenue and profit earned by the organization. The company should
have deep knowledge of taxation for getting benefits (Adamyk, 2019). Tesco also needs to
understand that pricing will affect the sale of the products so as to maintain this pricing should be
done accordingly because of increasing inflammation rate.
Social factors:
Due to the trending nature people are buying products in bulk and because of this Tesco has
planned stores to give such benefits to the customers. Due to social factors the company has
moved from food products to non-food products. Tesco is believing in local hiring for knowing
the trend and culture and satisfied the customer by their service.
Technological factor:
It is very important for the organization to adapt the changes in technologies for the better
productivity and growth. Tesco is achieving success by doing online retailing and by influencing
customers through social media promotions. Forty three percent of the customers are doing
online shopping from Tesco and getting the products at their home (Rosnizam, and et.al 2020).
Recently Tesco has paired up with Amazon Go for creating new technology for cashier less
billing.
Legal Factors:
The change in rules and regulations and policies of government affect the operational department
of the company. The company have to follow the local as well as the international laws of the
market for getting smooth operations. Recent update from the Tesco Company is that the
company is caught for paying unequal amount to male and female. These problems should be
solved immediately in order to save the reputation of the company. Credibility is very important
for the company to grow.
Environmental factors:
Tesco have done lot many efforts for improving the environmental factors and helps in creating a
more sustainable environment. Recently Tesco have launched one program which consist of
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remove, reduce, reuse and recycle plan (Edwards and et.al, 2019). The company have taken
many efforts for recycling the products and using minimum plastic bags.
Resources required to implement the changes and improve the services
Resources which are to be used by Tesco in improvement in their services and bring
positive changes in there organization. Main use of resources in physical resources as it
contributes the maximum part of the Tesco, resources as building, land, vehicle and equipment
which are to be used for bring changes in the organization which are being used in daily purpose.
Small changes can bring big changes to the organization. There is necessary of having the
effective management of physics resources for continuing successful operations in organization.
The adaptive strategy of Tesco open the chance of doing operation all over the world (Awadari,
2019). If their will be lack of proper management and equipment leads the company towards
unstable operations into business. As Tesco uses the computer vision technology to improve their
systems. Here information technology helps Tesco in dealing with sales of product, stock,
purchasing, stocks and agreement of values. As a technology Tesco is using heat sensing
technology to monitor and also informed to use improved scanners, bring betterment in self-
service and al the checkout cameras. According to human company effectively instruct and guide
their employees towards the goal of organization. It refers to staff development as training and
development in specific skills, abilities and knowledge to employees. Training and development
needs good performance which helps the organization (Lin, 2018). Some elements are:
Flexibility, communication skills, motivational, punctuality and person should be a quick learner.
Company is allowing the learning opportunities which are design to help in employee growth.
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Implementing the plan to improve the services
Gantt's chart is a project management tool which help in illustrating the project plan. It has two
sections: Left side which shows the outline/ name a list of task and Right side includes the
timeline with some schedule bars that shows the work that to be done. It also includes the date
and timing of the task that should be performed along with the start date and end date of task,
dependency between tasks and assignees. Origin of Gantt chart was in early 20th century by
henry Gantt. At that time it was written on the paper (Cox, 2021). At a time Gantt chart is one of
the most used project management tools. It is used to referred to roadmap tools. It has two
roadmap tools to create Gantt chart project: Roadmaps, which creates plan to assign team and
advanced roadmaps, which do same things across the teams and organizations.
Project managers use this Gantt chart for mainly three reasons:
Build and manage a comprehensive project: it visualizes the building blocks and organize it in
small and more convenient/ manageable tasks.
Determining logistics and task dependencies: It can be employed to keep an eye on the projects
and its logistics. The main thing is task dependencies give surety that new task can be start only
when another task is completed. If it is delayed than dependent one is automatically be
rescheduled. This is mostly used in planning of multi-team environment.
Illustration 1: Gantt Chart Examples and Templates For Effective Project Management, 2022
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Monitor the progress of a project: monitoring means, it can be monitored the progress of
projects and make adjustment through understanding the health of the project which are
necessary. Release date can also be included in Gantt chart to track the record.
There are mainly two reasons why Gantt chart is loved by project management world:
they make it easy to create complicated plans especially in which it needs to involve multiple
teams and changing deadlines (Rogers, 2021). It helps to allocate proper resources and deadlines
that must help in making plan work.
Tesco's project management is a system of practices, rules, techniques and procedures
used by implementation team to ensure the customer higher quality and higher customer
satisfaction. In the market there is nothing that fits every one, each and every person have
different needs and wants. Tesco has to look towards the customer's preference methodologies.
Majority uses waterfall methodology for implementation of projects. This approach has proved
successful to many of the Tesco that ensure the higher quality and customer satisfaction. Tesco
have variety of tools to implement the project management process. Sometimes access has been
given to the customers and also customer tools are used for various items. The main critical
success factor is to align the objectives of customer along with the proper project management to
ensure that goals and objectives are achieved in proper effective and efficient manner.
Current leadership and management style used by Tesco is Democratic leadership style,
which is also known as participative leadership or shared leadership. In democratic leadership
style members of group take participative role in decision-making process. Here everyone has
given the same opportunities to take participate, help in exchanging ideas and doing discussion.
This indirectly focus on group equality and share the ideas within the team/group. It is basically
based on mutual respects and it requires the collaboration in the work or task which is going to
perform between leaders and the people they guide. There are five types of democratic
leadership styles: participative leadership (used by Tesco), shared leadership, open book
management, participative-decision making (also used by Tesco), Democratic management style.
Through the research it has founded that democratic leadership is the most effective type of style
and with higher productivity power. It also allows the members to give better contribution in
decision and here democratic leader is still available for guidance and control (Devi, 2021).
Characteristics which helps Tesco: members of the group are encourage in sharing ideas,
opinions even decision is over, it helps the group members to feel more engaged and involved in
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whole process. Here is the chance of creativity and leaders do encourage and reward that. It is
being reflected that good and strong democratic leader had a big involvement in making Tesco
big brand and also helped to take it to the another level. Which let followers feel respected and
trustworthy among the organization.
All these leaders take a decision sincerely and never break their rules and moral. In Tesco
democratic leadership helps in allowing the members to speak out and bring big change in
company which allows group members to feel inspired and positively involved in the task or
decision that are performed by them. Benefits of democratic leadership are: Leadership leads to
generate better ideas and bring more solutions which are creative according to the problems. As
group members are encouraged by sharing their thoughts they feel that they are being listen and
getting involved and committed to the group projects (Bhuyan, A.H.M.M.I). Encourage them to
work more and realize them that organization care for their employees. The best style for Tesco
to achieve and successfully implement the plan is to reduce price of the key items and also
maintain the good image and quality of the products. Tesco is now turned towards the customer
focused leadership style in which company is completely understand the needs and wants of the
customer and try to meet and exceed customer expectations. So company will shine brighter in
the market and be well-known. As it is the customer oriented business along with it, Tesco
provide quality items at reasonable price. Mainly Tesco is now working in increasing the
customer base as well as retaining existing customer. Tesco can also use Transactional
leadership, it is also known as relationship theory which focus on the relationship between the
followers/members and leaders. Transformational leaders are motivated by showing followers
significance of task and good involved performance. Like others, it also helps in sharp the skills
and give your best. At every different stages, different styles are not required as defining goals,
conducting marketing research, check out the risk factors, assigning the tasks and responsibilities
and allocating resources.
If applying the Levin change model in the organization. After having the situation which
is developed by Tesco. Action plan is much-needed for retailers because of what managers and
decision makers could be able to overcome the change effectively. As Lewin's three steps
unfreezing, change and refreezing. At the step of UNFREEZING, the organization or an
individual need to understand that they have to bring change and step out of their comfort zone,
otherwise that change will break them. That can be certain that decision makers and managers
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have successfully unfreeze themselves. In the second step CHANGE they need to implement the
changes in the way that company will stay out of turbulence and problems like discussing new
industrial policies and many more. At initially this stage needs to work properly as improvement
is shown to the employees of Tesco. At last, it is dispensable that Tesco experience the last and
final stage REFREEZING in order to see that new changes or implementations are safe from
regression.
Lewin's change model is easy to understand as some other takes' lot of training to learn and
implement. It is straight forward with main three stages. It works on the focusing the customer's
behaviour as it is actually in agreement of many other change models that focus on human
elements.
The model makes some sense, while using this model unfreezes, change and refreeze
makes sense to many people (Paris, 2018). Simplicity of its help to make better understanding to
the people of change management. One of the part is not effective is that this model is not
detailed enough to understand.
Theory which helps the Tesco to increase motivation in the employees is Maslow's need
hierarchy theory, this theory is introduced by Abraham Maslow in 1943 which have five
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different levels starting with the first one is Physiological needs: these are the needs without of it
person can not even live which are basic needs for survival: Food, Water, Homeostasis, shelter
and clothing. Maslow considers the physiological need as a most essential need of human being.
Safety needs once the physiological need is fulfilled then it arrives to safety need which shows
the safe environment. Maslow here pointed the points that in adult living in developed nation as
a purchasing insurance and help to contribute to the saving accounts. Love and belongings the
next need of the human is feeling loved. It also includes the need that feeling of being in the
social group. As having social connections is related to having better health physically and
mentally also feeling isolated and removing the negative consequences. Esteem needs it
includes feeling good about ourselves (Utama and et.al., 2022). According to Maslow's theory it
includes two components first is self-confidence and feel good about ourselves and second one
involve feeling valued by others which means feeling achievements and contributions that help
in getting recognized by others. Last one is self actualization refers to feeling fulfilled and it
makes feel that living at our standard. For someone self actualization means that feeling good
and it might involve achievement in the creative field.
Impact of action plan on stakeholders in short, medium and long term with reference to KPI
Impact of action plan on stakeholder is that as they are of two types externals and
internals both internally and externally it affects the stakeholders as they are also included in
organization and get it to the right track. It is a business document which is internal that must
take within the certain timeline while running business to achieve goal. As improving service for
the customers help customers to involve in better way and can be external stakeholder. Internal
stakeholders: managers, employees board and executive committee are main internal
stakeholders. It consists chairman, CFO, CEO and many non-executive directors (Zaihan and
et.al., 2020). External stakeholders: main external stakeholder are customers, suppliers, creditors,
government, etc. as Tesco serves to the millions of the customers every month it should be
excellent quality, healthy and sustainable products it works with hundreds of suppliers and
producers. Actions plan directly effect the suppliers to supply and producers to produce.
Customers have faith on the company when they buy something on regular basis and it helps to
understand that what customer think where should to focus and how they feel that organization is
fulfilling their needs or issues or not. All across the market customers says similar things like
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they want good quality food, fresh product and at affordable price also treated fairly to everyone.
Suppliers are the person who build trust with the organization and make partnership of supplying
various products that helps in delivery value and quality to the customers. Development of the
suppliers are must otherwise they won't be interested in business (Moura, 2021). Tesco provide
suppliers to feedback on the interaction and experience with Tesco to share the best practice and
learning across whole supply chain.
Understanding the Tesco's previous approach which is corporate steering wheel, it used
to manage the framework because of its circular shape also as they provide clear direction for the
business. Company's top strategic planning which are supported by Key performance indicators
that acted as a compass. It is organized by five perspective: Financial, customer, community
operations and people. This includes: Sales, profit, Operating cash flow, customers
recommended and came back, colleagues recommend that it is a great place to work and shop, in
building trusted partnership. It clearly defines and quantifiable that help in measure the
performance of Tesco's business.
CONCLUSION
In this above report discussed leadership and management what organization should change to
improve the productivity and growth of the business. Changing any task the organization
performs tasks like at first it builds and modifies the strategic vision and mission, commits to
goals that drive overall health and the last one is to develop a long term plan to achieve goals.
Then discussed the PESTLE analysis, exploring the opportunities that need to be explored and
actions should be taken. Action plan that improve the services SMART. Then getting the choice
of resources that are required to improve the service. Further, mentioned the nature of staff
development. Then describing Gantt's chart and current leadership style that is being used along
with Lewin's leadership style. Also, explained the Maslow's need theory. At last impact of action
plan on stakeholders referred to KPI.
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REFERENCES
Adamyk, K., 2019. PESTLE Analysis on Tesco PLC.
AlQershi, N., 2021. Strategic thinking, strategic planning, strategic innovation and the
performance of SMEs: The mediating role of human capital. Management Science
Letters, 11(3), pp.1003-1012.
Awadari, A.C. and Kanwal, S., 2019. Employee participation in organizational change: A case
of Tesco PLC. International Journal of Financial, Accounting, and Management. 1(2).
pp.91-99.
Bhuyan, A.H.M.M.I., Organizational Performance Management and Leadership Development:
Theories, Styles, Ethical, and Legal Issues. In MESSAGE FROM THE CONFERENCE
CHAIRS (p. 356).
Cox, K., 2021. Business Analysis, Requirements, and Project Management: A Guide for
Computing Students. Auerbach Publications.
Devi, A.D. and Subiyantoro, S., 2021. Implementation of Democratic Leadership Style and
Transformational Head of Madrasah in Improving The Quality. Nidhomul Haq: Jurnal
Manajemen Pendidikan Islam. 6(1). pp.14-26.
Edwards, C.H., and et.al,2019. A single-enzyme system for starch digestibility screening and its
relevance to understanding and predicting the glycaemic index of food products. Food &
function, 10(8), pp.4751-4760.
Lin, C. and Peng, J., 2018. Analysis and Solution of the Problems in the Distribution of Suning
Tesco. Transportation Management. 1(1).
Moura, M.B.L.D., 2021. Equity Research in Food & Retail Industry-TESCO PLC (Doctoral
dissertation, Instituto Superior de Economia e Gestão).
Paris, D.L., Bahari, M. and Iahad, N.A., 2018. Business to customer (B2C) e-commerce
implementation process: a case study experience in fashion and apparel business in
Malaysia. International Journal of Business Information Systems. 29(1). pp.92-105.
Rogers, J., Dombkins, P. and Bell, F., 2021. Legal Project Management: Projectifying the Legal
Profession. Law, Tech. & Hum. 3. p.133.
Rosnizam, M.R.A.B., and et.al 2020. Market opportunities and challenges: A case study of
Tesco. Journal of the Community Development in Asia (JCDA), 3(2), pp.18-27.
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Utama, A.G.S and et.al., 2022. A Research on Tesco's Consumer Purchasing Behavior towards
E-Commerce during the Pandemic Period. International Journal of Accounting & Finance
in Asia Pasific (IJAFAP). 5(1). pp.53-63.
Zaihan, E.E.B and et.al., 2020. What Drives the Success of a Business Entity or An
Organization? A Case Study of Mydin Mohamed Holdings Berhad. Journal of the
Community Development in Asia (JCDA). 3(2). pp.35-42.
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