Business Management Report: Tesco's Leadership and Global Strategy

This report provides a comprehensive analysis of Tesco Plc, a multinational retailing enterprise. It begins by examining the leadership style of Tesco's CEO, David J. Lewis, highlighting his democratic approach and its impact on strategic decision-making. The report then explores the countries in which...Read More

Running head: BUSINESS MANAGEMENT
BUSINESS MANAGEMENT
Name of the Student
Name of the University
Author’s Note

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Table of contents
Introduction......................................................................................................................................2
CEO of Tesco and its characteristics of his leadership style...........................................................2
The countries in which Tesco competes and its global strategy......................................................3
Tesco’s SWOT analysis...................................................................................................................3
Example of planning that Tesco has executed.................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
The company chosen for this study is Tesco Plc, which is one of the biggest multinational
retailing enterprises that is headquartered in UK. Tesco has been ranked third -biggest retailer as
accounted by profits and ninth–biggest in terms of revenues. Over the years, this company has
diversified into several areas including- financial services, electronics, telecoms etc.
CEO of Tesco and its characteristics of his leadership style
The CEO of Tesco is David J. Lewis whose leadership style facilitates this company to
make strategic decisions regarding growth of this enterprise. Leadership basically acts as
catalyst which makes each elements of business work together. According to Yıldız, Baştürk,
and Boz (2014), leadership is critical to organizations as each leader adopts their own style as
well as strategy for attaining success in business. It has been opined by Daft (2014) that,
leadership is a vital aspect of company as leaders also have the capability in making strategic as
well as visionary decision regarding attainment of business goals.
The CEO of this company adopts democratic or participant leadership style whereby the
voices of employees are heard while making business decisions (Bhatti). According to this
leadership style, David Lewis way of operating has been decentralized and thereby the
information is generally passed from high management to workers working under them.
However, the employees of this company have the freedom to speak and are also permitted to
contribute their effective ideas for company’s growth. Adoption of this leadership style also
helped Lewis to attain praise for innovative approach in developing product or service.

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The countries in which Tesco competes and its global strategy
The countries in which Tesco Plc operates apart from US are UK , England, Malaysia,
Ireland and so on. As Tesco operates in highly competitive business environment, the
management of this company implements global strategy in order to stabilize their market share
and gain competitive advantage against their competitors (Wheelen et al.).
. The global strategies adopted by this enterprise involves- innovative utilization of
technology, advertising their product both in print media as well as television, integrating
internet operations that makes it easier for their customer to get linked to their product, creating
online hub via 2 degree network for reducing carbon footprint.
Tesco’s SWOT analysis
SWOT signifies strength, weaknesses, opportunities and threat of a specific enterprise. The
SWOT analysis of Tesco is illustrated below:
Strength-This organization is considered as powerful retail brand internationally. It offers wide
produce range, value for money and sensitive management (Khan, Muhammad and Muhammad
2014). Its strengths lie in joint ventures, online shopping, loyalty packages that aid them to
retain their customers, purchasing in bulk due to huge size as well as facilities.
Weaknesses- Tesco’s weaknesses lies in bad debt attained from credit cards, less investment in
web technologies, deficiency in their experience while entering new market and so on.
Opportunities- The opportunities of Tesco includes- expansion into competitive market namely
digital entertainment through investment in their Blinkbox, expanding business operation

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globally helps them to meet their customers needs, strategic alliance with several brands etc.
(Twarowska, Katarzyna and Magdalena).
Threat- Tesco’s rivalries are the main threats, which include Wal-Mart, Asda, Sainsbury etc.
Rise in food price reduces the willingness of consumers to purchase goods, government
regulation putting pressure on this company is also considered as threat.
Tesco providing loyalty packages and its investment in Blink box are the two most vital
determinants that lead to long term success in their business. Loyalty packages encourage its
customers to purchase products, which in turn increases their total sales ( Additionally, Tesco’s
investment in Blinkbox helps to penetrate into new market and expand its business globally.
Example of planning that Tesco has executed
As the main concentration of Tesco is to increase sales, they executes strategic planning
for achieving success in market. The business planning involves-
Market Development- The strategy used by Tesco for market development is strategic alliance
and joint development. This will increase their strength and maximize profitability.
Development of product- Tesco uses diversification strategy for developing their product in
order to huge customers globally.
Resource allocation- Based on the requirement of customers and stores, Tesco allocates their
resources in proper way (Khan, Muhammad and Muhammad).
Execution- Tesco monitors their production process to avoid any discrepancies.

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A plan that Tesco will integrate in future is to develop new discount grocery chain for
taking on Aldi’s cut- price chains (Wheelen 2017). They planned to develop separate brand,
which will match discounters on product price in order to stop drift of consumers away to its
rivals.
Conclusion
The conclusion that can be drawn from the above study is that strategic business
management helps the company to maximize profitability and gain reputation in market. Tesco
develops strategic plan for analyzing their target market and rivalries before entering into new
market. Additionally, proper leadership style adopted by their leaders also aids them to meet the
goal within specified time.

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References
Bhatti, Nadeem, et al. "The impact of autocratic and democratic leadership style on job
satisfaction." International Business Research 5.2 (2012): 192.
Daft, R.L., 2014. The leadership experience. Cengage Learning.
Khan, Muhammad, and Muhammad Khalique. "Strategic planning and reality of external
environment of organizations in contemporary business environments." (2014).
Twarowska, Katarzyna, and Magdalena Kąkol. "International Business Strategy-reasons and
forms of expansion into foreign markets." Management, knowledge and learning International
conference. 2013.
Wheelen, Thomas L., et al. Strategic management and business policy. pearson, 2017.
Yıldız, S., Baştürk, F. and Boz, İ.T., 2014. The effect of leadership and innovativeness on
business performance. Procedia-Social and Behavioral Sciences, 150, pp.785-793.