Context of Business of TESCO

Context of Business of TESCO

For any organization, it is very important to have a proper leadership process designed and used effectively. The leadership process helps the organizations to set their goals with the collaboration of the organizational objectives. Appropriate and suitable leadership helps the organization to align its mission and vision with the process of selection and leading the employees towards goal fulfillment. It is one of the most discussed, studied and researched topics to understand the process of managing people and personnel with a better leadership attitude. The nature of leadership and its relationship with its different variables such as employee satisfaction, commitment, and performance level are very important to analyze (Dunkerley, 2002). Here different kinds of traits, behavior, and contingency approaches are necessary to understand and learn leadership for the business purpose. So here we will learn from the perspective of an organization that what is leadership and how it works in an organizational context. For the report, we are considering Tesco here. It is one of the renowned and well known British Multinational Super shops and retailers of merchandise products. The organization headquarter is situated at Selwyn Garden City, Herefordshire, England. It is the 3rd largest retailer super shop all over the world based on their earned gross revenue. The successful implementation of their organizational functions helps to use the leadership process in Tesco according to their needs and requirements. Management of Tesco promotes leadership skills and professional betterment for the organization and also influence the successful use of manpower (Dunkerley, 2002). So here in the report, the leadership process, management, and implementation areas will be discussed.

Context of Business (TESCO)

Mission, vision, leadership theory and the management process of Tesco

The mission of the Tesco always focuses on making better things that matter to their customers. Their vision consisted of five elements. The organization wants to set up more branches and offices all over the world. Tesco wants to use their business opportunities on full swing in its different branches. They want their business to flourish with new ideas, innovation and implementation of them successfully (Hale Öner, 2012). They are using all their expertise and skill of leadership and management process globally. They are not only trying to get better with time but also exploring new ways and opportunities everywhere to find out the way of serving their customers.

The Leadership Theory of Tesco

There are many leadership theories are developed and organized to ensure the efficient people use inside and outside of the organization. Tesco has also adopted various leadership theories based on their traits, behavior, and situation. Some of their most-used leadership theories are described below:

  • Transactional leadership theory: Transactional theory consists of three elements. They are:
  1. Management by exception
  2. Management by passive
  3. Contingent reward.

By applying management by exception theory the leaders build a trustworthy relationship with their employees. To reduce the failure of delivering projects leaders apply the management by passive theory (Hale Öner, 2012). Finally for providing motivation and increasing employees’ work efficiency contingent reward theory can be applied in Tesco.

  • Contingency theory: The theory of contingency is related to different kinds of variables. All the variables are related to the environmental factor. So the variables help to determine a suitable leadership approach based on their organizational setup. According to this theory, leadership skills are not only important to become a successful leader (Jogulu, 2010). Managerial skills and abilities also play a significant role to increase the quality of a leader.
  • Situational theories: In the case of situational theories leaders are responsible for analyzing and diagnosing critical situation problems. Such kind of critical and situation problems can occur unexpectedly anytime. So leader’s skills, knowledge, experience and leadership quality helps them to take immediate decision by proper analysis. These types of leadership skills are very crucial for any retail supermarket for their success and betterment (Jogulu, 2010). The critical situation can arise for the problems in the product, handling customer service with critical and problematic customers, etc.

Management process of Tesco

Tesco the retail super shop has built a strong and efficient management team to take a decision regarding production, operation and delivery process. The overall process of management of Tesco is described as follows:

  • Planning manufacturing plan: For the planning process of Tesco, the organization decides to manage all the products from different sources. They find out all the sources and manage the best all alternatives of each source. So their products and services can be managed easily whenever the customers need them (Larsson, 2016). Based on all the decision they focus on the purchase and collection decision of the products.
  • Managing project: The organization is basically a product and service-oriented business. Tesco has various projects service and product development and efficient management for it (Larsson, 2016). So here the management team of Tesco is responsible for managing and maintaining the various steps and functions of the project with full responsibility.
  • Planning information system: Today’s world is running based on information. Whoever has the more information they can perform better than each other. Information on different product sources, product development, and market condition, current and potential need of the customers depend on the information management process (Slack and Brandon-Jones, n.d.). It helps to process, produce and deliver the customer with the best value of the organization. The management team of Tesco is responsible to find out all the information related to the products and services.
  • Performance measurement: Performance measurement is another way to improve the management process of any organization. It is managed by the overall functional team to perform better in the long run. The process is used in Tesco to provide feedback and follow up on the employee’s performance every year or month. Herewith the performance management process employees are recommended to improve their performance, work skills and development (Slack and Brandon-Jones, n.d.). Various kinds of training, seminars, etc. are part of the performance measurement process.

Development of the people

The development process of people refers to make people better and skilled with time. To build up the skilled and professional work personnel for Tesco it is very important to focus on the capability and dedication of the employees towards the organization. To ensure better performance inside and outside of Tesco they focus on the employee’s productivity and efficiency of the performance (Stamp, 1986). The human resource department finds out the best-suited workers for the organization by using their selection and recruitment process. They arrange different training programs, practice tasks and seminars for the employees to make employees better. Overall they help the employees to increase the full performance potential of the employees.

Impact of culture and management style on Tesco

Impact of culture on Tesco:  As a global grocery retail shop, Tesco has a huge base of customers from different cultures, religions, and ethnicity. The differences in culture, behavior, and attributes of the customers focus on the need and demands of the customers and increase their variety of demand management (Stamp, 1986). So the management of the organization focuses on their customers’ demand by analyzing and understanding their beliefs and set up of the culture. A survey and taking customers’ shopping feedback can be very useful for understanding the cultural effect on the purchasing behavior within a community and country.

Organizational culture also effects on Tesco’s work environment as the organization has to hire many of the employees frequently from different countries and communities. They have to build a diversified work-friendly environment to make them employees feel comfortable. If the workers get a friendly environment their work performance will improve and they will feel connected with their organizational goals and the outcome of any projects will also increase (The business process phenomenon: innovating value management, 1998). So Tesco management always tries to give its employees better experience in their workplace to get the best outcome.

Impact of management style on Tesco: Tesco is fully sufficient with the strongest management team of all. Their overall management process and their work functions are already explained in the report. Now to know the impact of the management styles following explanation can be considered.

  • Directive: After planning a strategy for the organization, Tesco needs to focus on organizing the resources and brings all the elements together to apply on different functions based on the plan and decision-making strategy. Proper guidelines help the organization to perform in a better way and also need to give the employees a positive experience. The direction is also required to maintain a deadline of all the works and fulfill the work necessity (The business process phenomenon: innovating value management, 1998). The management team is always aware of their ability and procedure of the work and also follow the leader to ensure the proper process of the management.
  • Authoritative: Authoritative leaders focus on directing long term mission and vision for the organization. They also have the skill and experience to find out the problems and analyze the future outcomes from any of the organizational functions of a given input. This skill very efficient to save time, money and energy. Without knowing the cause and effect of any input process of the work it is impossible to ensure better management of the invested money and time(Trkman et al., 2015). An authoritative leader has the ability to determine the return from specific input and also he is capable to get the alternative option ready for further use.
  • Participative: Participative leadership is known as democratic leadership. Which is comprises of different objectives leading to the commitment and consensus of the team of Tesco? This process encourages team members to participate in all the works actively and inform their opinion and suggestion to the authority. By doing these all the members help to increase the performance and confidence of the employees (Trkman et al., 2015). They feel more motivated, committed and connected with the authority of the owners of the organization.
  • Additional resources: To manage the overall operational function the organization focuses on the arrangement and proper collaboration of the resource. All the elements can be used efficiently by the leader for a different purpose and it is possible only if he knows the source and capable of bringing them together at any time. Similarly, additional resources are very useful for the production or functional department to use them whenever necessary and ensure a better management process without increasing the cost of the organization (Stamp, 2006). Tesco always tries to keep additional resources in its stock to decrease uncertainty and problematic situations.

Recommendation for the further improvement of the management policy of the Tesco

Though Tesco has the best leadership style with the combination of management processes overall the organization structure. It is important for every organization to work on their management policy improvement from time to time. With the different phases of the competitive business, Tesco needs to work on continuous improvement for its management policy.

The organization has full faith in its leaders that they are capable to find out the right and efficient worker anytime. As a result, Tesco finds out their future leader and people with leadership ability to play the role of organizer and motivators (Stamp, 1986). Tesco uses leadership styles based on different situations. From the above discussion, we can found out that Tesco can follow the contingency leadership style which is very suitable and best suited for the retail store. This leadership style helps their employee to perform better and provide rewards for their performance. It also encourages the employees to participate in the decision-making process and get the training and self-development help from the organization.

In this report, the management process of Tesco is also explained which is perfectly matched with Tesco’s mission, vision, and goals. They are focusing on quality management of the products and customer satisfaction levels (Stamp, 1986). Providing quality products at a lower price compared to their competitors is the core competency of Tesco. By implementing all the customer-friendly works Tesco is getting popular day by day all around the world.


This report is basically focused on the business context of the leadership and management arrangement process of Tesco. The company is a British retail merchandise organization that deals with different business functions all over the world with great success and profitability. The leadership and management process of the organization is explained elaborately in this report to understand the different leadership styles which are beneficial for the retail super shops. All of the processes help to increase the efficiency and collaboration among the organization functions of Tesco (Dunkerley, 2002). Overall the report will be very useful to get acquainted with different leadership styles, development processes of the organization and proper implementation of the management process for any retail super shop.


  1. Dunkerley, D. (2002). Leadership Styles and Leadership Effectiveness. Personnel Review, 1(4), pp.57-62.
  2. Hale Öner, Z. (2012). Servant leadership and paternalistic leadership styles in the Turkish business context. Leadership & Organization Development Journal, 33(3), pp.300-316.
  3. Jogulu, U. (2010). Culturally‐linked leadership styles. Leadership & Organization Development Journal, 31(8), pp.705-719.
  4. Larsson, J. (2016). Healthy and effective leadership behavior through a leadership development program. Total Quality Management & Business Excellence, 28(13-14), pp.1617-1631.
  5. Slack, N. and Brandon-Jones, A. (n.d.). Operations and process management principles and practice for strategic impact.
  6. Stamp, G. (2006). Management Styles. Leadership & Organization Development Journal, 7(3), pp.27-32.
  7. The business process phenomenon: innovating value management. (1998). Knowledge and Process Management, 5(3), pp.206-206.
  8. Trkman, P., Mertens, W., Viaene, S. and Gemmel, P. (2015). From business process management to customer process management. Business Process Management Journal, 21(2), pp.250-266.


Written by

Md. Shadequr Rahaman

Email: [email protected]

Context of Business of TESCO

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