This paper is in following to the assessment one conducted about the company Tesco. The assessment one evaluated details about the company Tesco and the issues that they are facing in the current environment. Along with the issues, theories and frameworks are also being discussed in the report. These theories lead to the impact of issues on the functioning of the company and future strategic recommendation for Tesco as well. It is very important for every business to initiate accurate leadership strategy so that they can successfully lead the company in the competitive target market. Tesco is a retail organization based in UK that is currently facing the issues of difference in business objective, resistance to change (Personal Today 2010). Also, the company is facing problem in managing a dignified reputation in the target market. Further, the transformation theory or leadership along with situational theory will help the company to successfully lead the strategies properly. Further, more details about the report are discussed below:
Transformational Leadership Theory: transformation style of leadership refers to the leadership under which the leader works with the team to identify the changes needed by the management. A transformational leader creates a vision and guides the subordinates to implement changes to complete the vision in the environment. This type of leaders is very flexible who believes in working with the employees rather than supressing them with their decisions in the environment. Transformational style leadership motivates the employees and job performance of the followers by providing them a sense of identity and self in the project that they follow. With the help of this type of strategy, the employees get a sense of recognition in the project that motivate them to the maximum extend to complete the project (Renko, et. al., 2015). The transformational leader becomes the role model of the follower due to which they inspire them and raise the interest of the employees for the company. The transformational leadership style motivates the process of intrinsic motivation and positive development of followers. Such leaders also initiate cooperation and harmony at workplace. Thus, in this way transformation leadership works by employing the leader in project so as to make them understand the required changes in manage to create a collective identity of the employees as well (Popli, and Rizvi 2015).
Contingency or situational theory: The situational style of leadership states that there is no leadership style that can be regarded as the best style for the business. Effective leadership strategy is task relevant, it cannot be said that single type of leadership is fit for all the business function. There are diverse business activities, so one leadership cannot act rightly for all the activities of the business. Thus, according to this type of leadership, a successful leader is one who adapts their leadership style to performance readiness of individuals with an aim to influence them. Effective leadership varies on the basis of the requirement of task and the type of employees present with the company. So, a situational leader is one who matches the right type of leadership skill with the right type of business event (Anderson, and Sun 2017).
The fact should be noted that issues faced by each and every company in the target market lays negative impact on the business. Similarly, in the case of Tesco Plc. the below mentioned issues impacted the growth of the company in a negative way:
No clear set of goals and objectives at Tesco: The company has faced in managing a clear set of goals and objectives for the company. Due to such differences, the company has struggled in convincing the employees to move in the right direction. The employees themselves are getting confused because of lack of proper objectives for the company that is subsequently increasing problems for Tesco (Fiona Cumming, Bettridge, and Toyne 2005). This issue has affected adversely in the position of the company. After the resignation of Terry from the company, the customers have started shifting to other supermarkets present in the industry. The quality of the products offered by the company has also reduced due to which the consciousness of the customers have increased. Customers have started believing that the products offered by the company are filthy and unhealthy for them. There has been a significant change in the position of the company (Pradhan, Panda, and Jena 2017).
Employee’s resistance to change: Post retirement of Terry Leahy from Tesco, the employees have become insecure and resistant to change as well. This is human tendency that people trust only those people who have worked with them and spent time with them. So, introduction of new director in the company has made the employees insecure due to which they have become resistant to change. The impact of this issue has portrayed on the company in such a way that employees have started resisting towards any new program initiated by the board. Each and every leader present in the society have their own way of working so, changes implemented by Clarke were not supported by human resource that created a conflict of interest in the company (Mekraz, and Gundala 2016).
Maintaining the reputation in the market: The Company underwent various changes with an aim to maintain dignified reputation in the society. The company initiated various change management program along with changes in leadership and culture just to consistently maintain the image of the company (Antonakis, and House 2014). But this aspect negatively affected the interest of stakeholders in the society. Because of implementing changes on regular basis, the employees and investors started losing confidence from the activities of the company. If the people of the company will not have confidence on the actions of the company then the image of the company will definitely go down no matter how hard the board tries to grow (Elliot 2018).
Below mentioned are the strategies that the company Tesco should use considering the leadership styles and the issues faced by the company:
Change in Culture using Transformation Leadership: The Company is facing a real need to make changes in the culture in order to maintain the image in the target market. As the organization is facing the issue of employees where they do not trust the activities of the leader in the market. So, the leader Clarke should make use of transformational leadership style to change in culture of the company. After the retirement of Terry from the organization, the environment has become negative and the employees and investors have started losing trust from the company. So, introduction of transformational approach in the business will help the employees to regain positive energies from the environment and grow (Wehrmeyer 2017). Tesco is facing problems in the external environment as the employees have stopped trusting on the activities of the company, so if the leader will make use of transformational style of leadership then he will invest more of his time with the employees of the company. If the leader and subordinates will work together under one roof then the subordinates will slowly start to change their perception for the leader and will attain respect for him. When the employees will start looking at Clarke as their role model, then Tesco’s environment will turn into positive one and then employees will start to support the decisions of the leader. So, the company should make use of this type of strategy to regain their position and eliminate issues from the business (Tesco PLC 2018).
Plan to Grow: Every business requires a solid plan for the future growth. A plan helps the leader to lead the subordinates in the right direction and reach at the desired position as well. Planning process effectively increase the efficiency of the company by letting them know the standards that they want to achieve and complete as well. Effective planning also reduces the level of risks connected with the company and helps the business in implying innovation positively. However, if the company does not have a solid plan then the employees certainly face difficulty in following the right path and collectively grow as well (Nwagbara 2010). Tesco is facing an emergent need to attain effective planning process for the business. Effective planning will help the management to eliminate the problem of filthy reputation in the environment. As the company is struggling to maintain a qualified reputation in the environment, so effective planning process will provide an effective path to the management that will help them to move in the right direction in order to attain competitive edge in the market. Lastly, it should be noted that planning process provides evidence to the future activities of the company as well. For instance, in future if the management want to follow a different approach then past planning activities and outcomes received will help the company to create new planning strategies in the environment (Management Today 2014).
Good Promotional Strategies: Good promotional strategies never hurt the business of any company. As the fact is known that the name of the company Tesco has gone down in recent years, so if the company will introduce good promotional and branding strategies in the environment then it will definitely help them to reduce their struggling the environment. The company should initiate promotional strategies in front of the middle class customers so that they would change their mind to purchase the products of the company (Haddock-Millar, and Rigby 2015). The management should provide goodies and offers to the loyal customers present in the market and they should also provide different offers to the prospective customers that are willing to buy the products of the company in the market. The management should make the product more approachable so that customer does not need to go another store to buy the product (Financial Times 2015). Quality of the product should be considered as the most important aspect for the business. Quality is the biggest attracting factor for the customers in the market. So, the company should work on the quality of the products that they deliver along with the promotional strategies in the market (Butler, & Farrel 2014).
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted the paper evaluated details about the company Tesco. It has been noted that in recent years the company Tesco has started facing problems in management. Post retirement of Terry, the new director is facing difficulty in involving with the employees due to which trust issues, quality issues etc. have been aroused. So, the above mentioned report evaluated strategies with the help of which the company Tesco will effectively maintain their current position in the market. The strategies recommended will also help the leader to initiate effectively leadership strategies in the business as well.
References
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Antonakis, J. and House, R.J., 2014. Instrumental leadership: Measurement and extension of transformational–transactional leadership theory. The Leadership Quarterly, 25(4), pp.746-771.
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Elliot, K.J., 2018. Investor case study. In The Business of Farm Animal Welfare (Vol. 97, No. 101, pp. 97-101). ROUTLEDGE in association with GSE Research.
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Management Today, 2014. 6 challenges new Tesco chief Dave Lewis will have to tackle. Available at: https://www.managementtoday.co.uk/6-challenges-new-tesco-chief-dave-lewis-will-tackle/article/1304346 Accessed on: 24.11.2018
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Nwagbara, U., 2010. Managing Organizational Change: Leadership, Tesco and Leahy’s Resignation. E-Journal of Organizational Learning and Leadership, 9(1), pp.56-79.
Personal Today, 2010.Tesco HR team to face change management challenges after Leahy retirement. Available at: https://www.personneltoday.com/hr/tesco-hr-team-to-face-change-management-challenges-after-leahy-retirement/ Accessed on: 24.11.2018
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