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Strategic Management & Leadership

Strategic Management &
Leadership
Tesco

ABC
5/11/2013


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Table of Contents
No Title Pg. No.
Introduction 2
Strategic Management & Leadership 2
1.1 Link Between Strategic Management & Leadership 3
1.2 Impact of Management & Leadership on Strategic Decision 4
1.3 Leadership Styles can be Adapted to Different Situations 5
2.1 Impact of Management and Leadership on Organization 6
2.2 Leadership Strategy Supporting Organizational Changes 6
3.1 Reviewing Current Leadership Techniques 7
3.2 Future Situations Needing Leadership 8
4.1 Developing Leadership Skills for Specific Requirement 9
4.2 Usefulness of Method to Plan Leadership Skills 9
Conclusion 10
References 11


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Introduction
The retail industry committing to food and beverages is currently ranking among the top most
industry segments in UK. Of the various retailers, Tesco has the maximum hold in UK as a
retailer of food and beverages. In the UK markets, this organization has widened its segment
by including clothing and other non-food product lines as well. Close to 40,000 products are
owned by this organization. Tesco labelled products are available to consumers in three
categories namely Value, Normal and Finest. With convenience produce becoming popular,
this organization has entered this segment as well with their gas stations. Tesco is today one
of the biggest and popular gas retailers in UK.
Strategic Management & Leadership at Tesco
Tesco believes in the line “Customer is the king” and, all its strategies are implemented
keeping the consumers of the organization in mind. “It is always wise to treat your customers
the way you would want somebody to treat you. You should be soft to your customers”
(Hillary & Jolly, 2001). If an organization wants to market itself as the most effective and
efficient business, it should always be based on consumers.
The management and leadership elements of Tesco are completely founded on customers.
The leadership style in Tesco suggests that for customers to be happy, the employees should
be happy. So, the employees should be entrusted with tasks that they love doing the most.
Also, the employees should be taken care of. At some points, an employee should be
empowered so that he/she feels independent and good about carrying out a task. The decision
making process as well as the leadership style at Tesco is very interactive. All employees are
a part of the final decision making process. When an employee gets the chance to voice their
opinions, they consider themselves a part of the organization and, enjoy their work more. At


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the end of the day the decisions are going to affect the employees as well as the consumers.
So, they should be a part of the decision making process.
The main aim of Tesco as an organization is to grow within the boundaries of Europe and,
build customer loyalty. So, if and when Tesco wins over some clients, it believes in retention
of these clients for a long time. An integrated Logistic management system that Tesco has
developed as a strategy has allowed it to reduce the costs and increase the performance of
their business. Today, the business operates using Supplier collection strategy where the
supplies are collected from the supplier and transported to Tesco thus saving costs.
The management of Tesco is divided into five different departments each of which work
separately but are collaborated for the proper functioning of the organization. The five
departments include administration, finance, human resources, marketing and R&D. The
heads and line managers of each department are different. The management of Tesco is
carried out using the famous style of “Management by Objectives”. In this case the objective
is performance appraisal of each employee on which depends the working of the company.
1.1 Link between Strategic Management & Leadership
At Tesco, the link that brings Strategic management and leadership elements together is
performance appraisal of the employees. In both these elements, performance appraisal is a
continuous process that determines the efficiency and effectiveness of the employees. With
performance appraisal, the leaders decide who the best performer is and, award him. This
award allows the employee to take pride and, continue to make more efforts towards the
company. Appraisals and rewards always make an employee more effective and, in turn the
consumers more satisfied. To give out appraisals, the performances of every employee are
under scrutiny by the management. This management gives out the top performers and the
bottom performers. As per the rules, if the employee is constantly under- performing, he/she


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has chances of losing the job. This way the leadership style allows appraisals and rewards to
be given for motivation while to ensure the appraisal to happen, the management has to look
into the performance and standard of working of every employee under their scrutiny.
1.2 Impact of Management & Leadership on Strategic Decision
The strategic management of every organization helps understand the goals and vision of the
organization. It defines the way the organization is moving. For Tesco, the vision of the
company is to be the apple of the customer’s eye. They wish to retain customers and, for that
they believe both the internal and external factors play a great role. Their...