Leading Business Organizations: Tesco Leadership Report, Summer 2017

This report provides an in-depth analysis of Tesco's leadership, focusing on the challenges faced in the summer of 2017. It examines various leadership models and theories, including behavioral, autocratic, transactional, and participative styles, and contrasts the leadership approaches of Philip Clarke and David Lewis. The report assesses challenges such as budget constraints, declining sales, and job cuts, recommending appropriate leadership styles to address these issues. It also delves into motivational theories, emphasizing the importance of stakeholder analysis and mapping to improve engagement. The report concludes by suggesting actions to enhance stakeholder engagement, while also addressing the potential risks associated with these strategies, providing a comprehensive overview of leadership practices within a leading business organization.

LEADING BUSINESS
ORGANISATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Leadership models and theories.........................................................................................1
2. Contrasting background and leadership style of Philip Clarke and David Lewis..............3
3. Motivational theory and two recommended actions to improve stake holder's engagement
along with including potential risks associated......................................................................5
PART 2............................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A business organisation is an group or individuals who comes together to achieve certain
commercial goals and objectives. Among these business some of them are formed for the
objective of earning profits whereas some of them incorporate for providing services without the
aim of earning profits. These business raise funds from different sources and utilize resources
effectively for achieving there purposes. The firms who have gained successful position in
business world and have capacity to compete with there competitor are known as leading
business organisation. This firms are enough capable to earn good amount of profits out of their
operations(Adams, Khoja and Kauffman, 2012). In this report the reader can learn about the
ways and techniques and all other things which is essential for a business to maintain there
business in leading position. The following assignment is based on Tesco which is a leading
retail grocery store operating in United Kingdom. It focuses on delivering high quality of
products to customers with affordable price range. Leadership context faced by Chief Executive
Officer of Tesco is being described briefly with the use of models and theories of leadership.
Also, significant study is done on the background and leadership styles used by Philip Clarke and
David Lewis along with motivational theory.
PART 1
1. Leadership models and theories
Leadership: - It is a skill possessed by an individual of organisation. It enables the
personnel to guide and lead other members and teams of firm (Bateman and Snell, 2013).
Leadership has different models and theories which have been described as follows:-
From the above explained theories and models of leadership, behavioural theory is
significant for Chief Executive Officers of Tesco in summer of 2017. It is the best to use as it
defines behaviour of leaders in different situations. This theory will help to select most suitable
style of behaviour of leader in different situations. In case when quick decision is required, they
can follow autocratic behaviour and in other situation, they can adopt democratic or laissez fair
style (Granovetter, 2010). All the theories which is used by leaders in management of
organisation have positive and negative benefits. The benefits depends upon the situations if
right theories is used according to situation then it will act positively apart from these if leaders
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adopt styles which is just opposite to situation then it will have negative impacts over
functioning.
Challenges faced by Tesco in summer 207: - The organisation is facing many challenges which
directly hinders its level of performance. Some of the challenges faced by business is being
described as follows: -
Budget: - The enterprise is facing large issues of budget in summer 2017. Organisation is
spending more amount of funds is its operation activities as compared to its budgets (Bateman
and Snell, 2013). This directly led to the increased in the production cost of products and
services an declines its profitability it is important to resolve these issue in order to enhance its
profitability.
In the following issue of budget is necessary for David Lewis to make proper use of suitable
leadership style which will support in overcoming from the problem faced. In overcoming these
David can make use of autocratic leadership style by which he will not involve any members of
organisation in formulating plans and policies. All the prepared polices by him is compulsory to
be followed by each and every employees of organisation. This style also helps in reducing the
wastage of time in development of strategy. Autocratic style will force workforce to work
according to prepared budget which supports in solving the issue faced by Tesco in summer
2017.
Sales: - Organisation is also facing challenges of decline in its sales of product and services. It is
due to improper use of budget prepared which increase cost of products. The increase in cost of
products declines number of customers and directly leads to low sales volume. Apart from this,
the another reason behind decline in sales of products and services is because of high labour
turnover because these led to decline in effectiveness of service which declines number of
customers towards goods offered by Tesco. The sales have also declined to lack in use of
effective strategies. In is important for David Lewis CEO of Tesco to use best suitable style of
leadership in regard to solve following issue faced. In this he can use two leadership style i.e.
transactional and participative style (Blanchard, 2010).
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Transactional style of leadership is signifiant in which he is only one who is involved in making
decision after which he guides his subordinates as well as by use of these he predetermine goals
and objectives that is to be achieved within a period of time. These is to be used while
formulating strategies in order to increase sales. Apart form this, participative style is to be used
which involves all employees in taking decisions. It will help in enhancing interest of all towards
objectives of enterprise and helps in increasing sales of products and services offered by Tesco
(Galaskiewicz, 2016).
Job cut: - It is referred to a situation where organisation faces an significant issue of high
employees turnover. In summers 2017, Tesco is facing this issue significantly. The problem of
high job cut have affected operations of organisation which also impacts over performance level
of enterprise. The period i.e. summer 2017 is an peak time where there is significant increase in
more number of customers towards products and services offered. These issue have impacted on
sales as well as budget. These is due to low number of employees within organisation cannot
provide effective services to consumers which leads to declines in sales which affects budget
prepared by them. The problem have directly lead to increase in cost for hiring of new capable
employees for working effectively towards achievement of business goals and objectives. It is
necessary for CEO to take necessary action for retaining workforce for longer period of time
which will positively support in increasing the sales and enhancing profitability.
Form overcoming from the issue of high job cut CEO of Tesco David Lewis can make use of
participative style of leadership which will support in retaining employees for a longer period of
time. It is an significant style by the use of which he can involve all members of organisation
which making any decisions these help in motivating employees as equal importance to all is
given while taking decision. This will effectively support CEO in influencing the interests of
members towards organisation and supports in retaining them form longer period of time within
enterprise (Granovetter, 2010).
2. Contrasting background and leadership style of Philip Clarke and David Lewis
Leadership style followed by Philip Clarke:
Philip Clarke follows different types of leadership styles while leading its subordinates
which support in motivating them towards performing well. The styles used by Philip helps him
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in maintaining healthy relation with all the members of organisation. Different leadership styles
used by Philip in different situations are being described as follows:-1. Autocratic style: - This style is used by Philip while making important and confidential
decisions for organisation. According to this style, he does not involve any other
employee while taking decision. This style is also followed by him in situations where
quick decisions are needed (Galaskiewicz, 2016). As this style does not involve other
employees while taking decisions, it relatively saves the time (5 Different Types of
Leadership Styles, 2017).2. Participative style: - This style of leadership is also called as democratic. It is another
style which is used by Philip Clarke for leading the members of organisation. By
adopting the same, he involves all employees while making any decision. This supports
him to get ideas and suggestions from the members which assist in taking effective
decisions (Ruíz, Martínez and Rodrigo, 2010). It helps him in building healthy relations
with others and maintaining a positive working environment in Tesco (Lin, 2011).
Leadership style followed by David Lewis:
Different styles of leadership are used while leading employees and subordinates by
David Lewis. This style helps him to influence the members towards their work which supports
in increasing productivity and level of performance. Different styles of leadership used by David
to lead individuals are being described as follows:-1. Transactional style: - This style is significantly used by David in leading its subordinates.
By following this leadership style, he predetermines the goals and objectives which have
to be achieved (Ruíz, Martínez and Rodrigo, 2010). After this, he guides all the members
towards achievement of goals effectually and efficiently which help in motivating them.
By following this style, he provides certain rewards and punishments to the members as
per their performance. These rewards help to motivate employees to increase their
performance level.2. Autocratic style: - It is another style which is followed by David Lewis. By following this
style, he does not allow any other individual while taking decisions. This helps him in
taking quick decisions (Schlechty, 2011). But, using this style all the time is not effective.
It is only useful in the emergency situations and while making secret policies for Tesco.
Appropriate style of leadership for summer of 2017:
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David Lewis is Chief Executive Officers of cited organisation. As per the above
mentioned different style of leadership currently used by both of them in leading subordinates,
there is a need for changes in summer of 2017. David lewis must follow participative style of
leadership for leading employees of Tesco in summer of 2017. These style is most appropriate
because by the use of these style CEO can involve all the members of of organisation while
making decisions is respect of Tesco activities (Hatcher, 2010). The involvement of all
employees in process of decision making supports in generating new ideas and it enables
employees to state their view points by which effective decisions can be taken. It will
significantly help in solving the issues faced by Tesco in summer 2017. This style is determined
by the behavioural theory of leadership which will help him in taking effective decisions by
involving all members of business that lead to generate effective ideas and suggestions from all
employees and directly support them in taking the best decisions.
3. Motivational theory and two recommended actions to improve stake holder's engagement
along with including potential risks associated
Motivation is a significant factor which is used by the leaders of organisation for
influencing employees to enhance their level of performance to attain goals and objectives of
business effectively within the given time period (Schlechty, 2011).
Stakeholder analysis: - It is necessary for leaders to take effective actions towards
analysis of stakeholders who have more or less impact on the organisation. It will help in
determining their needs and further, it will be fulfilled by using motivational theory. This action
helps in improving positive engagement of stakeholders (Tho and Trang, 2015)
Stake holders mapping: -
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The main stake holder of Tesco Plc are its employees working within the organisation, its
customers, its shareholders. These individuals have directty relationship with its operations who
may impact it positively or negatively. The stakeholder mapping is an process where the main
stakeholders who have more interest in business is analysed. After these they are given ranking
as per interests.
The stakeholder of Tesco determined as per the mapping who have high or low interest and
powers with functioning of organisation is being described as follows: - High powers and low interest: - The institution and individuals who provides funds for
operations of Tesco are stake holder who have more powers and low interest.
Shareholders, institutions and banks are the one included under this (Kirkman and et. al.,
2011). High powers and high interest: - CEO, Director and government of United Kingdom are
the individuals included under the following category. All the individuals under this, are
main individuals who are significantly involved in functioning of Tesco. It is because
plans and polices prepared by them have direct impact over operations (Adams, Khoja
and Kauffman, 2012).
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Illustration 1: Stakeholder mapping
(Source: Stakeholder mapping, 2017)

 Low interest and low power: - Customers and general public are individuals or group
who falls under this category. These personnels do not have any relation with activities
carried out by Tesco. They are only one who may impact over sales of products and
services offered (Lin and et. al., 2010). High interest and low power: - The suppliers of organisation are the one who has high
interest in operations of Tesco but do not have any power in relation to it. The interest is
high because if they do not provide supply of required material within a time frame it will
directly impact over production cycle and it may also led to shutdown of organisation
(Piercy, 2010).
Recommendation linked with motivational theory and potential risks involved in it
For positive engagement of stakeholders of Tesco is important for CEO to follow
motivational theory stated by Maslow. By following this, he must identify the needs of all
stakeholders who have interest over functioning of organisation. This will support in determining
actual needs i.e. what actually they want from business. It further helps in fulfilling the needs
accordingly and enhances their positive engagement within organisation. This need is most
important for example, customers always expect high quality of products and services with low
cost if these is being fulfilled effectively it will help to influence their interest towards
organisation positively and supports in their positive engagement.
Another recommendation for positive engagement of stakeholder is being stated as follows: -
It is necessary for CEO of Tesco to determine the safety needs of all stakeholders who
my influence operations of organisation. The safety needs is also an one factor which is
determined under Maslow hierarchy of motivation. According to the following safety needs are
concerned with employment security, health of customers and protection of resources available.
For positive engagement of all stakeholders within organisation it is necessary to fulfil all these
safety needs (Osterwalder and Pigneur, 2010). If organisation provides better quality of products
and services which are non hazardous to health of customers will help to influence their positive
attitude towards Tesco which will increase sale and profitability directly. Apart from this
employees are main element of enterprise who are directly linked with its success in competitive
business market. So it id must for CEO to provide them complete job security for longer period
of time which will help in retaining them for long time frame with their positive engagement
(Lin, 2011).
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In these some potential risk is being involved which is being stated as follows: -
Firstly it is important to determine the needs of all stakeholder who may have high or low
interest in the operations of Tesco. The main risk is that if needs which are identified and after
which if they are not fulfilled it will directly decline the sales of organisation which is not good
for them (Ruíz, Martínez and Rodrigo, 2010).
Effective communication: - The leaders of organisation must follow effective
communication channel to connect with individuals who have high interest within business. This
action helps in transferring the information among them which supports effectively in improving
their positive engagement (Hatcher, 2010). It leads to negative impact if it is not used properly
and creates miscommunication. It is an action which directly helps in motivating the employees.
There are theories of motivation given by experts which can be used by the leaders in
influencing members towards effective working. Maslow's Hierarchy of Needs is an effective
theory of motivation defined by Abraham Maslow. This is used by the leaders in Tesco to
increase positive engagement of its stakeholders by taking necessary actions (Sheth and Sisodia,
2015). This is being described as follows:
The effective use of motivation theory by leader supports influencing behaviours of
employees towards the achievement of business gaols and objectives which helps in business
success. It is only an motivational theory which supports in fulfilling all monetary and non
monetary of employees working within a organisation (Schlechty, 2011).
PART 2
Covered in PPT
CONCLUSION
As per the above study, it can be said that adopting suitable leadership models and
theories is important for Tesco to run business successfully in the long run. It has been assessed
that this is important for the leader and senior manager of the organisation like CEO and other
authorities to use effective leadership style so that they can make necessary improvements in
their business. Transactional, Autocratic and Participative are the leadership style that are
followed by the CEOs of Tesco. It is required for them to use such theories in an effective
manner so that they can provide adequate motivation to their employees. Also, it is important for
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them to use these theories and styles of leadership and motivation according to the needs of
different personnel.
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Online
5 Different Types of Leadership Styles. 2017. [Online]. Available through:
<http://smallbusiness.chron.com/5-different-types-leadership-styles-17584.html>.
[Accessed on 4th July 2017]
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