Business Report: Tesco PLC - Management, Culture, and Strategies

This report provides a comprehensive analysis of Tesco PLC, a multinational retailer, examining its background, vision, leadership styles, management practices, and organizational culture. The report delves into Tesco's vision of achieving higher profitability through innovation and customer retention. It explores the application of contingency and transformational leadership theories within the company. The analysis further covers Tesco's management practices, including reward systems, open communication, strategic planning, and performance monitoring. The report identifies Tesco's clan culture, emphasizing collaboration and teamwork. The influence of management styles, such as consultative management, on business functions and strategies is also discussed. The report concludes with recommendations for strategic improvements, such as leveraging social media and expanding into emerging markets, along with a summary of the key findings.

Context of Business-2

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of Company.............................................................................................................1
Vision, Management practices, Leadership style and organizational culture of the company....1
The Culture and management style influence the business functions and strategies of company
......................................................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business refers to buying and selling of goods and services in the consideration of
money. It is type of occupation that trade in purchasing and selling of goods in order to earn
profits. The owners of businesses has unique selling proposition which gives them a competitive
edge over their competitors. The research report will focus on leadership style, management
practices and the organisation culture of chosen enterprise which is Tesco plc.
This current assignment will outline the topic as vision, management practices, leadership
style and the organizational culture they are using to drive their working effectively. Project
report will discuss the business culture of chosen firm to define their strategies and
organisational functions. Lastly, it will provide recommendations for making further
improvement in their business strategies.
MAIN BODY
Background of Company
Tesco plc is multinational merchandise retailer and groceries dealer. The Company is
established in the year 1919 about 100 years ago. It has been founded by Jack Cohen. The
headquarters of this firm are situated in Welwyn Garden City, Hertfordshire in England. Tesco
plc business is widely spread in 7 countries across Europe and Asia. The Company is renowned
as market leader of groceries in United Kingdom. The firm deals in various diversified products
such as clothing, furniture, books, electronics, toys, financial services and telecommunication
services. It is listed on London Stock Exchange. Products of Tesco are generally of low costs that
helps to attract large number of customers.
Vision, Management practices, Leadership style and organizational culture of the company
The Vision, Management practices, organisational culture and leadership style of Tesco
plc are as follows -
Vision - Tesco plc vision is to shape their company to achieve higher profitability through
grabbing the current opportunities and introducing innovative products in the market (Bloom and
et.al., 2019). To fulfil the customers needs in order to increase their retention towards the
company.
Leadership style - This means the manner in which leaders of the company directs the
employees to implement the current plan in order to increase productivity of organisation.
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Contingency theory of Leadership
It is the theory that has been proposed by the Fred Fielder in the year of 1964. The theory
states that effectiveness of leader is identified by how contingent they took decisions in the
organization. It claims that decisions of leader are based on the situations. The leader take
decisions in the Tesco plc with help of taking analysis of the external and internal situations. By
identifying the current situation of the organization they proceed decisions.
Contingency theory uses by the Tesco Plc to bring effective performance and to have
desired results. The leaders took organizational decisions by considering the macro environment
factors (Donate and et.al., 2015). To control the employees it is essential to make opinions on the
basis of current analysis. The leader can easily resolve the problems of the employees when they
will know them better. Thus, they do detail analysis of the business.
Transformational Leadership theory
The leader brings change in the organization for the sake of the improvement. They
believes in transformation. The leader accept that this will bring positive change in Tesco plc.
The employees skills get developed by doing transformation in the organization. They get to
learn new things when they allotted new tasks. There creative skills get improved by
implementing transformation at the workplace. The productivity of Tesco plc can get increased
by focusing over quality performance of staff.
Management practices
It refers to adoption of various methods and techniques to improve the overall efficiency
of business. The managers in Tesco plc are using various management practices -
Reward system - The managers of company gives rewards to their employees on timely basis in
order increase satisfaction among the employees. They are facilitated with the bonuses, fringe
benefits and salary increment as a way of recognition of their work they had done for the
company (Winnubst, 2017). The managers of company timely appreciate their workers for their
outperforming performance in the organisation. The managers create conducive work
environment for their team members and also give promotion to the employees who are worth
capable of it. Through these employees feels motivated and eventually, it results in increased
productivity of company. Reward system supports the employees to work at their optimum level
with full enthusiasm.
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Open Communication - The top level management of Tesco facilitate their employees with
open communication channel. The employees actively takes part in decision making of company.
The employees are free to share their ideas and thoughts in order to bring innovation in the
company. This helps to increase the employee's creativity skills in organization. They listen to
employees problems and provide better solutions to minimise the chance of conflicts and
disputes at the workplace. The managers also bring employees into important managerial
decisions in order to drive company towards success (Driskill, 2018). The managers do effective
communication to direct and guide their employees about the work to achieve the target of
organization within the allotted time duration.
Strategic planning - Tesco plc do corporate planning to minimise the business risk. Strategies
are being made in company to improve organisation efficiency in long run. It is formulated to
took a competitive edge in the market. Objectives of company is accomplished through strategic
planning. The company defines priorities and set targets to bring innovation in organization. The
planing is being done to introduced a new product in the market. By launching new products the
company's profitability get increased.
Performance Monitoring - Managers of Tesco plc continuously evaluate their employees
performance. Through these they identify the area in which employees need improvement
(Paulraj and et.al., 2017). By analysis key performance indicators they took necessary actions to
enhance their performance. They also give training to employees by organizing induction
program to develop particular area of employees in which they are weak. After conducting the
training they measure the success of induction session.
Organisation culture
This means the underlying beliefs, values and assumptions of company. It gives unique
proposition that contributes in organisational achievements. Thus, it defines the business
operations and working environment of Tesco plc.
There are four type of organisation culture -
 Clan culture - In this type of culture leadership turns into mentorship. The employees
are bound by the organizational commitments. The leaders believe in collaboration. They
believe that through working together as the team the outcomes can be improved (The
Four Types of Organizational Culture, 2019). Clan facilitates in building effective
relationships with customers, employees and suppliers.
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 Androcracy culture - This culture supports the creativity at the workplace. Employees
feels encouraged to take risky projects of the company. They tend to accept
organisational changes easily. The leaders and managers of this type of culture are also
not afraid of doing experiments in order to bring something new in the company. They
maintain coordination with employees and identifies the individual skills to extract best
of them.
 Market culture - The leaders of this type of organization culture are more goal oriented
and tends to be demanding. They don't satisfy with one achievement they believe in
continuous improvement (Nawaz, Z.A.K.D.A. and Sveningsson, 2015). They serve
company with full dedication in order to take competitive advantage and to beat the
rivals. In this type of culture people are unified to achieve common objectives and goals
of company.
 Hierarchy culture - The influence of top management is more in this culture. They are
highly responsible to take major decisions of the firm. The employees are bound by strict
rules and regulations of company (Paulraj and et.al., 2017). This culture creates formal
work environment in which leaders provides guidance to their employees for improving
efficiency at the workplace. This culture put more emphasize on uniformity.
Tesco plc is using Clan culture in their organisation. Under these managers of the
company show cooperative behaviour with their employees. They act as mentors for the
employees. They provide directions and guidance to employees for getting work done from them
at optimum level (Amanchukwu and et.al., 2015). This leads to increase productivity in the
company. The employees believe in teamwork to achieve the targets of the company on timely
basis. They support their subordinates to improve efficiency and for accomplishing
organisational goals.
The Culture and management style influence the business functions and strategies of company
Effective Management helps to achieve the formulated strategic plan of the organization.
Managers provides guidance to employees to accomplish the targeted objectives of corporate
plan.
Management styles
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It refers to overall methodology and techniques used by the managers to sharpen the
skills of employees in the organisation.
There are six types of management style which are as follows -
 Autocratic - It refers to a style in which managers takes decisions without consulting their
subordinates. They show power of authority on their employees. They provide them
direction and assigned responsibility at individual basis.
 Consultative - This refers to a management style in which managers consulate with
employees before taking any managerial decision (6 Types of Management Styles, 2016).
The employees feel free to discuss the problems with managers of company. They took
active part in decision making and shows their best talent in organisation.
 Persuasive - Employees convince their managers to take decisions in favour of them
under this type of management style. The choices are being made on the basis of suasion
of subordinates.
 Democratic - The managers gives opportunity to employees to involved them in decision
making process. The decisions are taken by the majority of all.
 Laissez-Faire - This type of style facilitates the managers for allowing employees to take
majority of business decisions without consulting the management. Managers consider as
a mentor instead of a leader.
 Management by walking - This refers to business technique in which managers collects
information through listening employees ideas and thoughts. Managers acts as counsellor
rather than director under this type of leadership style.
Tesco plc is using consultative management style in their business. This managerial style
supports the employees decisions at the workplace. Managers takes consultancy of subordinates
before implementing any major business decision. The employees freely shares the problems
which they are facing in the organisation premises (Yahaya and Ebrahim, 2016). The managers
also provide long lasting solutions to resolve the problems of employees and to minimise the
arisen of conflicts in the company. Through this it facilitates towards the synchronised and
organised business functions.
Planning is being done in proper manner because of clan culture in Tesco plc. The
employees and managers workers together as the team to achieve the desired outcomes. They
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work in accordance with the formulated plan. Managers efficiently leads their team members to
work in organised manner. The managers took proper control over production function of
company in order to improvise the product quality of Tesco plc.
Recommendations
Various strategies that Tesco plc can undertake -
 The firm can use Social media advertising as their promotional strategy as large number
of people are highly active on social media platform.
 The Company can expand their business in emerging countries like Greece, Korea and
China.
 The Company can adopt transactional leadership style in their organization to increase
their productivity.
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CONCLUSION
It has been concluded from the above project report that Business refers to an occupation
that deals in trading of goods and services in order to make profitability. It has been summarised
that Tesco plc vision is to grab the current opportunities through introducing innovative products
in the market. The company follows contingency leadership theory into their business where
leaders took decisions in accordance with the current situations. It has been determined that
company follow the clan culture in their organisation where leaders believe in collaboration.
They believe that through working together as the team the outcomes can be improved and
beneficial. It has also been summarised that Tesco uses various management practices to drive
their company towards success.
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REFERENCES
Books and Journals
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature
review. Journal of Management Development.35(2). pp.190-216.
Amanchukwu and et.al., 2015. A review of leadership theories, principles and styles and their
relevance to educational management. Management. 5(1). pp.6-14.
Nawaz, Z.A.K.D.A. and Khan_ PhD, I., 2016. Leadership theories and styles: A literature
review. Leadership. 16. pp.1-7.
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change
work in progress. Routledge.
Driskill, G.W., 2018. Organizational culture in action: A cultural analysis workbook. Routledge.
Winnubst, J., 2017. Organizational structure, social support, and burnout. In Professional
burnout (pp. 151-162). Routledge.
Donate and et.al., 2015. The role of knowledge-oriented leadership in knowledge management
practices and innovation. Journal of Business Research. 68(2). pp.360-370.
Bloom and et.al., 2019. What drives differences in management practices?. American Economic
Review. 109(5). pp.1648-83.
Paulraj and et.al., 2017. Motives and performance outcomes of sustainable supply chain
management practices: A multi-theoretical perspective. Journal of Business Ethics.
145(2). pp.239-258.
Online
The Four Types of Organizational Culture. 2019 [Online]. Available through :
<https://www.popinnow.com/four-types-organizational-culture/>.
6 Types of Management Styles. 2016 [Online]. Available through :
<https://online.grace.edu/news/business/types-of-management-styles/>.
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