Table of Contents
2.0 A brief history of Tesco Plc and rationale of choice.
2.1 Overview of Tesco.
2.2 Rationale of the study.
3.0 Vision, leadership style and management practices and the various strategies of Tesco PLC.
The vision of Tesco Plc.
Leadership styles and Leadership style of Tesco.
Management theories and Management practice of Tesco PLC.
Various strategies in Tesco making use of various theories.
4.0 Implication of leadership style and management practices and the various strategies by Tesco.
This paper focuses on various factors of Tesco’s business contexts including its leadership styles, management practices, company vision, and strategies development and their successful implementation. The activities of Tesco are significantly reviewed through leadership style and management practices and the various strategies. Then the final part is described as a recommendation of the leadership style and management practices and the various strategies of Tesco through strategic models.
2.0 A brief history of Tesco Plc and rationale of choice
2.1 Overview of Tesco
Tesco is now the biggest retail company in the UK, even in the EU. It has now over 440,000 dedicated staff who provided excellent services to its customers. It attracts over 80 million customers every week in its over 6800 physical stores and online. It is now operating in many global markets including the EU, Malaysia, Czech, Slovakia, Hungary, and India. In 2016/17, it gained group sales of £51.0 billion, statutory revenue of £55.9 billion, operating profit of £1837 million, and net profit of £1298 million. Tesco gains about 29% of market share by retaining and making loyalty to its customers. Tesco is committed to offering cheaper products by maintaining quality and integrity. Tesco always tries to understand its customers and meet their changing needs and expectations and is socially responsible for the communities where it is operating. Tesco also takes care of its staff to work as a team, by trusting and respecting the staff, by listening, supporting and saying thank, and by sharing knowledge and experiences (Tesco Annual Report, 2018).
2.2 Rationale of the study
A notable business leader is a person who can encourage their group and comply with enterprise management practices for success. The business management system is the system by which an organization gets its employees to supply the finest outcomes with the least amount of attempt. The implementation of a better leadership style helps the firm to satisfy the employees and achieve the targeted goals of the firm. The management procedures also play a vital role to influence the goals of the firm. Tesco is using different modern technologies in its management practices to gain a sustainable competitive advantage (Tesco Annual Report, 2018). Here I choose Tesco PLC to evaluate the best Management practices and leadership style and the various strategies of the company. The rationale of the study has a great impact as the study contributes a lot to understand the modern business practices of retailing.
3.0 Vision, leadership style and management practices and the various strategies of Tesco PLC
The vision of the Tesco Plc
Mission determines the aspiration view of the employer. The vision statement of the company helps to gain a standard. Tesco is a corporation, that’s specially constructed for the customers and colleagues. According to Tesco Annual Report (2018), the vision of Tesco is “to create value for customers to earn their lifetime loyalty”
Leadership styles and Leadership style of Tesco
A method of providing direction, implementing plans, staffing and motivation in people is called leadership style. According to House et al. (2014), there are six types of leadership styles and their functions in business. These are as follows,
Tesco is one of the largest retail industries in the UK and it uses the democratic leadership/ Participative style within the firm to lead the subordinates. This administration style is a balanced mix of the Autocratic and Laissez-Faire styles. This style is portrayed by the comprehensive basic leadership process. Democratic leadership or participative leadership focuses on the team of the leader and the decision-making process is being shared through the team members. Democratic leadership encourages concerned engagement and input of employees that improve worker skills and performance. This type of leader is typically excellent at solving complex problems, creates a creative environment as well as builds a strong team in his or her business unit (Bratton, 2010).
Figure: Democratic Leadership practices at Tesco Source: Bratton (2010)
Tesco communicates the decisions from the subordinate employees to make the decision right for implementing them in the right way. The real position of the market and the firm can be found out through the use of democratic or participative leadership. That is why the team members of Tesco are very supportive and strong. The opinion of everyone is taken into consideration for taking any decision for the business unit (Tesco Annual Report, 2018).
Management theories and Management practice of Tesco PLC
Management is the core characteristic of any organization. Management is accountable for well being of the enterprise and its stakeholders, together with the investors and employees. Consequently, management needs to be a professional, skilled, and stimulating set of individuals, who will do anything essential for the best interest of the organization and stakeholders. First- practices are usually outcomes of knowledge management. Exceptional practices are the reusable practices of the agency that have been capable in respective capabilities (Meyer and Allen, 2013).
Frederick Taylor, “The Father of Scientific Management” Invents Scientific Management theory. It starts in the U.S.A for the need to increase productivity at the time when skilled labor was not sufficient at the very beginning of the 20th century. Fayol’s management theory or administrative theory implies a broad sense and most businesses can apply this theory. Another theory of management can be regarded as the contingency management theory. Participative Management refers to an open type of practice where workers are effectively associated with the basic leadership process. Here the managers seek a strong relationship with their subordinates. They know that employees are the facilitators who manage the clients and fulfill the necessities of customers (House et al., 2014).
Tesco observes participative management’ theory by giving subordinates a place in decision-making. Tesco, a large retailer in the market, counsels, communicate as well as develop its subordinate. Tesco helps subordinates and gives support when they do any mistakes. It expresses appreciation when an employee does their best. Tesco gives the best output from the employee by practicing management theory……………………….