Context of Business: Tesco PLC Leadership and Management Strategies

This report provides a comprehensive analysis of Tesco PLC, a major global retailer, examining its historical background, mission, and vision statements. It delves into the company's leadership styles, particularly focusing on its autocratic approach, and explores various management practices and st...Read More

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. History and summary of company..........................................................................................1
2. Vision, leadership style and management practices and strategies making use of various
theories........................................................................................................................................2
3. How it can be achieved or implement by company................................................................4
4. Recommendation for improvement.........................................................................................5
CONCLUSION...........................................................................................................................5
REFRENCES...................................................................................................................................6
INTRODUCTION
In every organisation, management plays an essential role as it manages their business
operations which leads to execution of work in effective manner. Along with this, the manager of
a company manage and evaluate performance of their employees in order to enhance profit and
profit as well as maintaining sustainability of business at competitive market place. With the help

of this, manager solve the problems and issues of their employees by which they feel
comfortable in an organisation through that they leads towards productivity and profitability.
Furthermore their main motive is to attain organisational goals and objectives so that they able to
maintain positioning at market place (Easterby-Smith, Thorpe and Jackson, 2012). Tesco plc
group is chosen as a base company in this present report and it provides grocery products across
the world. Its headquarter in Welwyn Garden city, England, United Kingdom which is founded
by Jack Cohen in the year 1919. In this report, various things has been covered which includes
history and summary of the company as well as vision, management practices and leadership
style and explain how it will adopted by this company. At last, recommendation for
improvement are going to be mentioned in this present report.
MAIN BODY
1. History and summary of company.
Tesco plc group is one of the largest retailer across the world. Along with this, its
headquarter in Welwyn Garden City, Hertfordshire, England, United Kingdom. This company is
founded by Jack Cohen in the year 1919. Along with this, it deals in various products such as
clothing, furniture, grocery, financial services, software and so on. Furthermore, in Tesco around
460,000 employees are worked in the company. Also, this company has various subsidiaries that
are Tesco Bank, Tesco Stores Ltd., Dunnhumby, Booker Group, Jacks and may more. This is
also known as market leader of groceries in UK as they have various shops or stores in many
countries. By this, it covered huge market share and expand their business at international level.
Moreover, they operate their business in various countries such as Europe, Ireland, Thailand,
Poland etc. and has around 6,569 shops across the world (Belbin, 2012). The Mission statement
of Tesco plc group is that we innovate which is better, together in order to fulfilling customers
need and wants accordingly. Whereas its vision statement make with five element which says
that they generate innovative ideas by which they expand the business al global level and get
various opportunists. With the help of this, they enhance skills and capabilities in their
employees as well as gain trust and loyalty from potential customer by which they maintain the
sustainability of company at competitive market place.
The Tesco brand come out in year 1924. This name appeared when Cohen purchase a
shipment of tea from Thomas Edward Stockwell. Along with this, Tesco name is become with

the first three letter of the Thomas Edward Stockwell name i.e., (TES) and last two letter come
from Cohen surname i.e., (CO), after forming these letters it become TESCO. Jack opened his
first shop of Tesco in 1931 at Watling Street. On the other hand, in 1956 their first self service
shop is opened in St Albans as well as first supermarket in Maldon (Pines and et. al., 2012). The
motive of Jack is to get success by providing goods in low rate at good quality as well as their
internal aim is “YCDBSOYA” which means you cannot do business by sitting on your arse.
With the help of this, they motivate their workforce so that they gives their 100% in work and
improve their performance in order to gain more profitability and productivity. This company
expand their product line, where as in 1960 they sold contains cloths and household goods, after
that in 1974 they opened first petrol station. In this duration they opened almost 800 stores across
the world. In 2013, they launch first Tablet computer in a 7 inch model which known as Hudl.
Furthermore, in 2016, Tesco plc group enhance their sale by 8.6% and capture huge amount of
market share. It is mainly focuses on supermarket and hypermarket as these stores aid company
to gain more profit in an effective manner. At present era, this company become a repudiated
company by satisfying customers need and requirement. As comparison to other, Tesco become
largest British retailer as well as has largest customer base by which they create competition at
market place.
In this present report, opt supermarket retail industry as this sector plays very important
role in across the world. Along with this, it is respective industry in which role of leadership aids
them to solve the issues and problems regarding business activities is order to enhancing the
growth in an appropriate way. As well as in this sector has various scope which maintains the
value and name of the company in customers mind.
2. Vision, leadership style and management practices and strategies making use of various
theories.
Tesco plc group is a British multinational grocery as well as general merchandise retail
store. This company operate business activities and function in various areas all around the
world. Along with this, its established in the year 1919 which situated in Hertfordshire, England,
United Kingdom. As well as this is one of the biggest retailer company that has around 6569
stores in all around the world. Furthermore, it deals in various products such as general
merchandise. telecom services, financial services. Groceries and many more. Around 460000
employees are employed in this company by the motive of earning profit through fulfilling

mission and vision of the company in an effective and appropriate manner. The vision statement
of respective company is to satisfying customers need and demand by providing good quality of
product and service in affordable price. Along with this, manager of Tesco, do market analysis
so that they can evaluate the taste and preferences of customers by which they maintain the
growth and profitability of company (Giltinane, 2013). With the help of this, they improves the
quality of product and services in order to accomplish organisational goals, objectives and ends.
In context of, Tesco plc group, they focuses on improving quality of product for attracting more
and more customers towards their brand and maintain sustainability for long period of time.
Leadership is an ability which aids individuals for becoming a good leader so that they
can manage the work and handle the situations or problem in an organisation. In addition to this,
the role of leader is to done the work from others by which company will accomplish their goals
and objectives and lead towards success accordingly. Their are various number of leadership
style which is opted by leaders for managing workforce of the company such as laissez- faire,
autocratic, bureaucratic, democratic, transformational, strategical, transactional and so on. In
relation to Tesco plc group, they opt autocratic leadership style in their working environment so
that the able to operate business functions and activities effectively. It is also called authoritarian
leadership which means their is an involvement of every single individual at the time of decision
making process. In context of, Tesco plc group, they involved every single employees while
making decision so that they can handle and gain success in an effective manner.
In every organization management practices plays crucial role as this help company for
managing its business activities and motivates employees for achieving targeted goal. With the
help of this, manager of a company makes proper plan by which employees can perform their
work or activities in an appropriate in order to gain profit (Yahaya and Ebrahim, 2016). For
instance Tesco plc group, opt management strategies so that they can do effective recruitment
and selection process. By this process company can mange its functions so that they will enhance
their ratio of profit and growth. The reason behind of this process is to fulfil the vacant position
by attracting and hiring highly skilled and knowledgable candidate so that company can achieve
their targets. Also, it motivates or encourage other employees for performing well in their
assigned work.
In relation to Tesco plc group, manager of company opt management theory i.e., theory X
ans theory YY for managing managerial functions in an organisation. Along with this,

motivational theory is also adopted by them for motivating and encouraging employees in order
to fulfilling assigned task in an effective manner. On the basis of this theory, organization
evaluate the behaviour of employees which is based on two categories i.e., X and Y. Theory X
says that in this category involve those employees who always need direct from seniors at the
time of doing work as well as they always wanted money only (Myers 2013). On the other hand,
theory Y like conduct for those employees who do not want supervision as they are self
motivated as well as encouraged for doing work in an effective and appropriate manner.
3. How it can be achieved or implement by company
In relation of Tesco plc group, they adopted autocratic leadership style for operating
business functions and activities. For this, they make management function in their work which
includes planning, organising, directing, motivating, developing plans and so on. As per
manager of company hire highly skilled and knowledgable employees for running business
operation in an effective way. Also, they provide proper training and development to their staff
members for accepting changes and adopting techniques which aids company for performing
work or task effectively. With the help of autocratic leadership style, respective company are free
to take decision as per the arising situation of company as their main motto is to accomplish goal
and vision of company.
Manager of Tesco opt effective marketing strategies that will help company to conduct
right things at right time. Along with this, manager of respective company provide proper
training and development session or programmes so that they can enhance motivation and
confidence of their employees such as corporate learning, role specific training, on the job
training, store attachment, off the job training,and so on. Furthermore, this company use
marketing practices as per the to situation of working environment, so that they attain
competitive advantage by which they leads towards enhancing market shares as well as
profitability. This is also aids companies for managing relationship between employers and
employees so that they will makes effective solution for dealing with the situations.
By following such methods and steps help Tesco plc group for gaining profitability as
well as capturing market share and retaining employees for long period.
4. Recommendation for improvement
As per the analysing above mentioned topics aids Tesco plc group for implementing
changes as well as generating ideas so that company makes some innovation in order to

accomplish goals and objectives. With the help of changes and innovation respective company
can increase their profit ratio and market shares through expansion of business at domestic as
well as global level (Tesco Organisation Behaviour, 2019). Their are some recommendation for
Tesco company i.e., to adopt hi-tech technologies so that they can improve their working style.
This strategy also aid company for attracting customers towards their brand in effective manner.
In addition to this, respective company should provide effective training to their employees so
that they can manage their work. If Tesco plc group opt such recommendation then they will able
to enhance ratio of profitability as well as customer base.
CONCLUSION
As per the above mentioned report, it has been summarised that, management
practices aids organisations for operating and managing their business operations. With the help
of this, company will attain goal and objective effectively. Also, manager of company analyse
the issues and problems of business in order to developing plans or strategies. Furthermore, this
is necessary for manager to adopting leadership theory that aid them to manage business
activities and functions. This is also necessary for company to establish both mission and vision
statements as these statement aid staff of company to doing work accordingly.

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Online
Tesco Organisation Behaviour. 2019. [Online]. Available
through:<https://www.researchomatic.com/Tesco-Organisation-Behaviour-21127.html>.
Vision, values and business strategies
A Tesco case study. 2019. [Online]. Available
through:<http://businesscasestudies.co.uk/tesco/vision-values-and-business-
strategies/vision-and-mission.html>.