Introduction: Tesco Is A Customer-Oriented Business

Introductiontesco Is A Customer Orientated Business It Aims To Offer

Introduction Tesco is a customer-orientated business. It aims to offer products that provide value for money for its customers and to deliver high-quality service. Tesco wants to attract new customers, but it also wants to keep its existing customers happy. Building customer loyalty is a cost-effective strategy to grow the business. This is because satisfied customers are a good advert for the business.

Tesco has more than a 30% market share of the UK grocery market, nearly double that of its nearest rival. In its 2009/2010 financial year, Tesco earned revenues of £38.6 billion in the UK and employed more than 280,000 people. To keep at the top of its game and to maintain its number one spot in the market, the company needs skilled staff at all levels and in all roles. Roles in Tesco range from business development, supply chain management and marketing to finance, store operations, and personnel management. Each area of expertise requires leadership and management skills.

Tesco aims to develop the leadership qualities of its people throughout the organization, from administrators and customer assistants to the board of directors. It adopts a similar approach to leadership development for staff at all levels, aligning with Tesco’s employment philosophy: ‘We believe in treating each other with respect, with everyone having an equal opportunity to get on, ensuring Tesco is a great place to work.’ This case study will show how Tesco’s leadership framework is fundamental to developing the qualities of leadership needed at every level in the business.

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Understanding leadership and management within Tesco is essential to comprehending how the company maintains its competitive advantage and fosters a positive organizational culture. Although management and leadership are closely related, they serve distinct functions. Management primarily focuses on organizing resources and ensuring day-to-day operational efficiency, while leadership emphasizes inspiring and motivating employees to achieve long-term goals.

Management and Leadership: Definitions and Distinctions

Henri Fayol, a pioneering management theorist, articulated a comprehensive functional approach to management, emphasizing five key functions: planning, commanding, controlling, coordinating, and organizing. Fayol’s model underscores the importance of systematic processes and structured authority in achieving organizational objectives. In contrast, leadership involves influencing individuals and groups through vision, inspiration, and personal traits, fostering commitment and enthusiasm (Northouse, 2018).

This distinction highlights that while managers may focus on processes and control, effective leaders seek to energize their teams and foster a shared sense of purpose. Nonetheless, the roles often overlap, as managerial positions in Tesco require leadership qualities to motivate staff and implement strategic initiatives successfully.

Management Styles and Their Application

Leadership styles in Tesco are diverse and adaptable, ranging from autocratic to laissez-faire. The autocratic style, characterized by directive decision-making, can be effective during crises or urgent situations. For example, in handling store emergencies such as accidents or inventory discrepancies, a manager may need to assume tight control to ensure safety and compliance (Lewin, Lippitt, & White, 1939).

In contrast, democratic leadership encourages participation and collaboration. Managers like Stephen, the Tesco store manager, prefer to consult their teams and involve them in decision-making processes, especially when planning stock reductions or introducing new initiatives. This style fosters motivation and innovation, as employees feel valued and empowered (Bass & Riggio, 2006).

Laissez-faire leadership, exemplified by Martin, the Programme Manager for Education and Skills, involves trusting experienced managers to make decisions independently. This approach can be advantageous in specialized tasks requiring expertise but may be less effective with less experienced staff (Blanchard & Johnson, 2013).

Factors Influencing Leadership Style

Choosing an appropriate leadership style depends on several factors, including the nature of the task, the skills of the team, and organizational culture. For example, urgent or high-stakes decisions necessitate a more authoritative style, whereas routine or strategic tasks benefit from participative approaches (Goleman, 2000).

Internal factors such as employee skill levels and team dynamics influence whether a manager adopts a directive or consultative style. External factors, like customer interactions, may also require adaptable leadership approaches—for instance, persuading a customer to accept a replacement product using a persuasive style (Herzberg, 1966).

Critical Success Factors and Leadership Development

To sustain growth, Tesco emphasizes critical success factors (CSFs) such as customer focus, integrity, teamwork, and development of self and others. These CSFs guide managers in adopting leadership behaviors aligned with organizational values and strategic goals. Tesco’s leadership development programs include self-reflection, 360-degree feedback, and career progression opportunities, enabling staff to enhance their skills and prepare for higher responsibilities (Goleman, 2000).

Effective leadership at Tesco involves inspiring, guiding, and setting an example. Leaders who can adapt their style according to the situation—sometimes directive, other times participative—are better equipped to handle the complexities of retail management. Developing leadership competencies across all levels ensures a cohesive organizational culture and operational excellence (Northouse, 2018).

Conclusion

In conclusion, Tesco’s success hinges on its ability to blend management and leadership at every organizational level. Managers and leaders must be capable of adopting suitable leadership styles, fostering team motivation, and aligning individual efforts with organizational goals. By cultivating a culture of continuous development, reflection, and adaptability, Tesco ensures sustained growth and a strong market position in the competitive UK grocery sector.

References

• Bass, B. M., & Riggio, R. E. (2006). Transformational Leadership (2nd ed.). Lawrence Erlbaum Associates.
• Blanchard, K., & Johnson, S. (2013). The One Minute Manager. Harper Business.
• Goleman, D. (2000). Leadership that Gets Results. Harvard Business Review, 78(2), 78-90.
• Herzberg, F. (1966). Work and the Nature of Man. World Publishing Company.
• Lewin, K., Lippitt, R., & White, R. K. (1939). Patterns of Aggressive Behavior in Childhen and Children. Journal of Social Psychology, 10(2), 269-299.
• Northouse, P. G. (2018). Leadership: Theory and Practice (8th ed.). Sage Publications.