Strategic Management of Tesco: Leadership Styles, Change, and Analysis

This report provides a detailed analysis of Tesco's strategic management, focusing on the influence of stakeholders, leadership styles, and political dimensions. It examines both internal and external stakeholders and their impact on strategic planning. The report explores the democratic leadership style implemented by Tesco, emphasizing employee motivation and empowerment through team-based factors. It also investigates leader-follower relationships, highlighting the importance of leadership traits and skills. Furthermore, the report discusses leadership's role in change management, emphasizing the significance of human resources and workforce planning in adapting to the competitive retail environment. The conclusion summarizes the key findings, underscoring the role of leadership and management in achieving Tesco's objectives.

Running head: STRATEGIC MANAGEMENT OF TESCO
STRATEGIC MANAGEMENT OF TESCO
Name of the Student
Name of the University
Author Note

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Table of Contents
Part 2..............................................................................................................................2
Introduction....................................................................................................................2
Analysis of the stakeholders...........................................................................................2
Political dimensions that affect the organization...........................................................3
Consideration of the leadership styles, traits and skills.................................................3
Team based factors, including leadership......................................................................5
Leader-follower relations in Tesco................................................................................5
Leadership of change in Tesco.......................................................................................6
Conclusion......................................................................................................................7
References......................................................................................................................8

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Part 2
Introduction
Tesco is a global retail company that offers general merchandise and groceries to the
customers. The origin of Tesco is in the United Kingdom and the company has its
headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. Tesco has
gained the place of the third largest retailer in the world based on total quantities of revenues
that have been gained by the company (Tesco.com 2019). The organization was founded in
the year 1919 by Jack Cohen. Tesco had stared its operations in the industry as a group of
market stalls. The operations of retail stores of the organization had started in the year 1924.
The report will be built on the study of the impact that the strategic planning will have on the
stakeholders and leadership of Tesco (Tesco.com 2019).
Analysis of the stakeholders
The stakeholders have the ability to affect the operations of an organization and the
strategies that are implemented as well. The stakeholders of Tesco also have a major
influence on the methods by which the firm is able to uphold the sustainable processes in the
retail industry. The two types of stakeholders who are a part of the stakeholder groups of the
organization include, the internal and external stakeholders. The internal stakeholders of
Tesco are owners, directors, employees and shareholders (Agote, Aramburu and Lines 2016).
The external stakeholders of Tesco on the other hand include, the suppliers, customers,
government, communities in different countries of its operations. The internal and external
stakeholders of Tesco have an impact on the prices of products that are provided to the
consumers. The strategic planning process will also be influenced in a massive way by the
influence of the stakeholders. The suppliers are able to play a key part in the appropriate
development of the products that can be offered to the customers (Akinbode and Al Shuhumi

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2018). The communities and customers are able to affect the sales of Tesco and the
profitability levels of the organization as well. The strategic plan that is developed by the
organization will be influenced in a huge manner by the stakeholders. The investors or
creditors are affected by the revenues that are gained by the organization with respect to the
operations that are being performed (Al-Ali et al. 2017).
Political dimensions that affect the organization
Tesco is a large organization has global operations in different countries of the world
and serves different types of consumers as well. The political situation that has been
developed in the country has an impact on the policies that are developed by Tesco. The skill
levels of the employees who are a part of Tesco have an impact on the ways by which
different organizational operations that are performed by the company. The support that is
provided by the government to organizational operations is considered to be a significant
aspect that is able to influence the profitability levels (Al-Haddad and Kotnour 2015). The
organizational operations of Tesco are supported in a direct or indirect manner by the fiscal
policy of a country. The organization is able to receive financial support from different
government institutions in the country. The political and economic turmoil that has taken
place in the UK has an influence on the policies and procedures that have been applied by the
firm. The profitability levels of the firm are affected by the economic situation of the country.
The activities that are developed by Tesco are also based on the government policies and the
tax based policies that have been developed (Appelbaum et al. 2015).
Consideration of the leadership styles, traits and skills
The leadership style that is followed in a firm is able to play a key part in the
appropriate implementation of strategic plans in its operations. The process of strategic
management is based on the decisions that are made by the organizations and are

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implemented in different organizational processes as well. The decision making process of
the organization is considered to be an important factor that is influenced in an enormous way
by the leadership process. The process of strategic management is thereby directly related to
the leadership style that is implemented (Cameron and Green 2015). The managers and
leaders of Tesco have implemented the democratic style of leadership in order to maintain its
operations and to continue offering actual services to the consumers. The leadership of Tesco
is mainly built on the methods by which the organization can motivate the employees so that
they are able to provide the best stages of services. The leadership roles are provided by the
management to different employees based on the levels of their capability (Deschamps et al.
2016).
The leadership based style is adapted by management of Tesco in order to grow a
positive environment within the company. The management style that has been developed by
Tesco is democratic in nature and the organization has maintained its operations in a
decentralised manner. The information based on different operations are passed from higher
management to the employees who are a part of the firm. The management of Tesco has been
able to empower the methods by which they are able to take part in the organizational
operations (Halkias et al. 2017). The most significant part of the motivation that is provided
by Tesco to the employees are mainly based on the benefits and rewards that are offered to
them built on diverse activities that are accomplished by them. The effective improvement of
the management based process of Tesco is mainly related to the leadership style of the
organization (Higgs and Dulewicz 2016). Tesco can also be considered as highly customer
oriented in nature and the organization has always tried to satisfy the customers based on the
levels of their needs. The operations of Tesco have been able to adapt to the democratic style
of leadership due to the development of a flat organizational structure. The commitment

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levels of the staff of Tesco are built on the methods by which the firm is able to support the
needs and demands of the employees (Holten and Brenner 2015).
Team based factors, including leadership
Teamwork is considered to be a significant part of the strategic management
processes that are implemented by the global or multinational firms. The various groups in
the organization are able to offer the best levels of their services in order to fulfil the
objectives and goals that have been set. Different teams within the organizations are provided
with different responsibilities in order to reach the final goal. The levels of teamwork that
have been established in the company are able to support the growth levels of the
organization in a huge manner (Li et al. 2016). The activities related to teamwork have been
provided with high levels of importance by the management of Tesco. The teams have been
established in Tesco in such a manner that has an impact on the ways by which the
organization aims at maintaining the levels of revenues. The strategic plan and different parts
of the development of the plan are implemented with the help of proper teamwork (Marshall,
Coleman and Reason 2017). The teams that are a part of the organization have an impact on
the development of the revenues. Different aspects of the strategic plan are able to play a key
part in the methods by which Tesco can implement new strategies in order to achieve
different objectives. The proper establishment of the teams is considered to be a significant
aspect that is able to influence the ways by which organizational objectives can be fulfilled
by the employees (Schell 2019).
Leader-follower relations in Tesco
The leadership traits are considered to be an important part of the relationships that
have been developed between the leaders and the followers of Tesco. A leader in an
organization needs to depict different traits and skills in order to perform the leadership based

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functions in an effective manner. The different traits that are a part of the leadership process
of Tesco include, group influence, command, coolness, judgement, responsibility. The
leadership traits are able to play a key role in the methods by which relationships can be
developed between the leaders and the employees (Storey 2016). The transformational
leadership style has been followed in Tesco and the association that is developed between the
leaders and employees are highly collaborative in nature. The achievement that has been
gained by Tesco in the retail market with the support that is provided by the leadership based
activities (Van der Voet, Kuipers and Groeneveld 2016). The organizational changes that
have been implemented in Tesco have also been possible due to the high levels of support
offered by the management. The relationships that have been established by the firm are
considered to be significant factors that affect the operations of Tesco. A major part of the
effective leadership process of the organization is based on the management skills that have
been developed by the leaders (Marshall, Coleman and Reason 2017). The different skills
that have been gained by the leaders mainly include, interest levels and concern,
communication process, negotiation, conflict resolution, compromise, flexibility and synergy.
The leaders and management of Tesco have an impact on the relationships that are formed by
them. The leader-follower relationships are thereby able to play a key role in the methods by
which Tesco is able to implement the strategic plans in an effective way. The proper
management of human capital is considered highly important for the implementation of
strategic plans (Van der Voet, Kuipers and Groeneveld 2016).
Leadership of change in Tesco
Human resources have been able to play a key part in the development of Tesco in the
competitive retail industry of the UK. The levels of competitiveness of the business
environment have an impact on the ways by which Tesco can develop an edge in the
environment. The employees of Tesco have been quite participative in nature and the

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management skills have also been able to play a major role in fulfilling the requirements of
the employees. The process of effective employee empowerment is an important factor that
can have an impact on satisfaction levels of the employees (Cameron and Green 2015). The
process of employee empowerment is a major part of the change management based activities
that are performed by Tesco. The future processes of Tesco are built on the proper
management of changes. The leadership related factors have been implemented by the
organization in order to fulfil the vision of the company (Al-Haddad and Kotnour 2015). The
process of leadership development is an significant aspect that is able to influence the
processes and profitability levels of Tesco as well. The training that can be offered to the
employees is a significant aspect that has an impact on the proper workforce planning (Li et
al. 2016). The proper analysis of the external environment of Tesco is able to portray that
Tesco needs to implement changes in the processes on a periodic basis in order to maintain
the profitability levels. The impact of the external environment is quite high on the operations
of Tesco and the company needs to develop strategies that can help the organization to
achieve different objectives (Agote, Aramburu and Lines 2016).
Conclusion
The report can be concluded by asserting that the leadership and management of
Tesco has been able to play a key part in the methods by which different objectives can be
fulfilled. The strategic plans that are developed by Tesco can be implemented in a successful
manner with the support that is provided by the proper collaboration between the employees
and the management. The operations of Tesco are also able to affect the external environment
in a huge way. The political situation of different countries has an influence on Tesco and the
policies that have been applied by the firm as well. This is considered to be a major factor
that further leads to effective management of changes.

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