SHR011-6 Leadership Project In Management Styles
The primary motive of this particular assignment is to initiate a critical appreciation of leadership style with a specific organisational context. In addition, the seven structure system will also be discussed in the organisational context of Tesco Plc. Apart from that, the leadership style will be discussed in terms of its differences based on various organisational scenarios, such as its culture, history, business conditions and geographic life. Moreover, the organisational business scenarios will also be explained based on their impacts on performance and productivity. Furthermore, the skills and ability of Tesco will also be criticised based on the leadership styles and significant problems that may arise within the operational efficiency of the company. Besides that, requirements for the future development of the company will be specifically evaluated in the assignment.
1. Theoretical consideration and identification of the characteristics of the organisation
a. The seven structure system in Tesco
While discussing the seven structures, McKinsey’ 7s model has been discussed in this particular segment of the assignment. It can be observed that the McKinsey’ 7s model of Tesco Plc mainly illustrates a specific connection between several elements of the business that may enhance the effectiveness of the company. In addition to that, this particular model includes both sift and hard materials that describe the behaviours and performances of the company in a significant way.
Figure 1: McKinsey's seven-stage model
The seven significant structure of this model in respect of Tesco Plc are discussed as below:
Strategy: It can be observed that Tesco Plc has managed to pursue a cost-effective leadership and organisational strategy that can enhance its marketing communication and deliver the desired business results within a specific timeframe. In addition, this supermarket chain has sustained its operational strategy. The company has also sustained such a strategy in order to initiate extensive exploitation of both economic and monitory scale of the company. Besides that, a proper exercise has been incorporated by the management of Tesco Plc, so that the bargaining power of the company can be easily enhanced. However, in the modern scenario, the company is dealing with extensive business challenges due to which a dramatic decline of the sale has been observed. Moreover, for enhancing the strategic ability of the company has tended to be increased by shifting the focus of the management towards maximizing the priority of the products within the customers and make the products significantly available in the market(Dudovskiy, 2020).
Structure:It can be stated that the original operational structure of the Tesco Plc is highly hierarchical and includes several layers of management and leadership traits. The organisational structure of the company also includes assistant CEO for the retail stores and deputy store managers that controls the business operations within a specific region. Moreover, in order to make the organisational structure more effective and simple, the CEO of Tesco have divided the organisational operations into various sectors and recruited different managers for the responsibility of each department. A committee has also been formed within the company that includes 11 committee members and board of directors.
System:It can be identified that Tesco Plc has several systems regarding business operations, which are required to be done by the company on a regular basis. In addition, the CEO and board of directors of the company have also created the operational structure simplified so that the business data can be easily channelized within various departments and maintain the business on track. Furthermore, a new and enhance performance evaluation has been undertaken so that the required revenue can be earned within a specific time. The Steering wheel of the performance evaluation system of the company has delivered additional assistance to identify the major flaws and gaps in the operational structure of the company(Dudovskiy, 2020).
Skills:The core objective of Tesco is to deliver efficient services to all the customer through enhancing the skills of the employees and staffs. In addition, coaching management has also been deployed within the organisation that may help the staffs to learn several business skills. The operational administrator of Tesco uses one of the senior staffs to inspire other members so that they can work with their full potential for achieving the targeted business objective. Apart from that, through monitoring the activities of the staffs will help to assess their flaws and the higher administrator will support them to enhance their skills.
Staff:Tesco only recruits elegant and skilled staffs in the organisation who can serve as per the demands of the company. In addition to that, there is more than 400,000 activated staff that works for the company across the globe. Besides that, skill enhancement training for the staffs is also available within the company that delivers the required services to all the customers in various nations across the world.
Styles:The working style of the company is to achieve the targeted objective within a specific time. The company mainly focuses on four major aspects while operating in a global arena such as financial aspects, employee performances, internal & external operations and customer preferences.
b. Analysis of the present leadership value system and impact of organisational structure in the leadership, staff and management
The “leadership value system” of Tesco Plc plays an effective role to drive the overall operations of the company. In addition, the current leadership value system has provided equal opportunity for all the employees so that they can be established as well. Through developing a significant leadership, Tesco Plc tends to train all the employees regarding the process as to how to achieve the targeted objective and make efficient business decisions. Apart from that, the value system also allows the employees to implement their own innovations so that they can play an efficient role in the operational structure of the company (Gurd and Helliar, 2017).
The impact of the organisational structure in various aspects are stated as below:
Leadership: The organisational structure of Tesco have allowed the leaders of the company to influence the organisational culture. Due to this, the leaders of Tesco Plc have set a specific tune through which the work experience can become more perceived. Moreover, the organisational structure has driven the ability of the leaders to shape the organisational culture.
Staff:The organisational structure of Tesco have ascertained the skills of the staffs and recruited them in the departments as per their field of excellence. Moreover, by using such a process all the operations of the company have been conducted without any sort of issues. Additionally, the organisational structure of the company also ensures each data has been transferred from the lower-level employees to the hierarchies.
Management: It can be stated that the organisational structure helps to utilize the business resources more properly. Therefore, if the resource is properly being utilized then the business objective can be easily gained. Besides that, the organisational structure also helps the management structure of Tesco to become more dynamic and help to provide responses against several organisational issues (Alam, 2016).
c. Consideration and analysis of various competitors
It can be stated that the success of a particular organisation can be measured based on its productivity and revenue over its probable competitors. However, the productivity of the company also depends on the number of its market shares. In addition, while discussing the competitive business environment it can be stated that a proper operational and market strategy is required to be established so that a competitive position can be gained in the market. Moreover, in terms of Tesco, it can be observed that currently, the company is in a noticeable spot that makes it quote comparative in respect of other companies in the current industry of retail. Currently, Tesco is one of the largest grocery retail supermarket chain of the United Kingdom that has several competitors in the industry. ASDA, Sainsbury and Morrison's are identified as the most significant competitors of Tesco in the retail industry of the nation. The analysis of the competitors are stated as below:
ASDA:ASDA is one of the subsidiaries of Walmart that have more than 2000 acquisitions in the current scenario. ADA mainly sells clothes and other furnishing items in the retail market of the nation. Apart from that, the company, have also implemented a significant competitive strategy while operating its business in the UK. Besides that, along with Tesco Plc, ASDA has been considered as one of those largest supermarket chains, not the just UK but also in the entire globe(DOWNIE, 2020).
Sainsbury:It is the third-largest retail business chain of the UK that has opened its outlets in more than 1200 locations across the entire nation. In addition, the company has been identified as the high- quality retailers of groceries that serves premium level services for the customers.
Morrison’s:The Morrison's have more than 500 supermarkets and approximately 150 departmental stores in the UK. It is the second-largest supermarket chain of the nation and operates its business operations with a highly integrated vertical management structure(DOWNIE, 2020).
d. Different positive points and negative traits of Tesco
The positive points of Tesco may include the size of the firm and its effective management structure. It can be observed that over the past few consecutive years Tesco has managed to gain a considerable spot in the retail market and managed to expand its reach in multiple regions of the market. Bulk buying, distributions, technology, marketing and transportation are the most commendable improvements of the company (Awadari and Kanwal, 2019). Apart from that considerable economic growth has also been identified in the operational structure of the company. The company minimizes its production cost and delivers the products with an affordable price to all the customers.
While discussion the negative traits of Tesco the following aspects can be identified:
- There are various subsidiaries of Tesco are available which are not successfully being operated. Moreover, the subsidiaries are drastically vulnerable regarding the external business factors (government laws and regulations, market environment, activities of the stakeholders) (Wood, Wrigley and Coe, 2017).
- Due to the competitive pressures, the price of several items has been increased that have reduced the profit margin of Tesco in various regions of the United Kingdom.
- Tesco underestimates the CSR (corporate social responsibility) as the company ignored the local community while creating recruitment options for local individuals.
2. Consideration of the organisational structure in the current operational sector
a. How the sector has evolved?
The Tesco Plc operates in the retail industry of the United Kingdom. Therefore, based on the operational quality and opportunities of the sector, it can be stated that the industry has drastically evolved over the past few years. In the current scenario, there is nearly no room for complacency are available in this industry. However, as per the modern business prospects of the retail industry, it can be observed that the company of this sector must be stand out for the competitions otherwise their undifferentiated will become exposed. Due to the uncertain arrival of Brexit various prospects of the retail sector have been harmed, but besides that, the retailers have also identified additional ways for operating with profitability (Rauf and Karjaluoto, 2019).
By using the relevant situations for acquiring significant changes, the organisations of the retail sector have implemented artificial intelligence and augmented reality along with other technological enhancements in their business. Therefore, it has made the customers of retail stores of UK to become digitally active and stay connected with the organisations.
b. A Difference of the sector from other competitors
It can be stated that the retail industry has critically differed from other industries in a significant way. In addition to that, the retail industry does not crates or manufactures the products as it just delivered the goods to the respective customers through its retail and departmental stores. Additionally, retailers mainly purchase the products from the manufacturers at bulk and sell them with a mark-up price. Apart from that, there is various type of retail stores are also available, such as convenient stores, speciality stores, supermarkets and discounts stores. However, the competition of other industries can be defined in terms of the revenue and the overall contributions of the nation’s GDP.
Figure 2: Difference industries and its contribution in GDP
(Source: Edwards and Ortega, 2017)
Apart from manufacturing sector there is finance, transportation, administrative and other industries are available in the nations that delivers their part of contribution towards the revenue of the nation(THE RETAIL SECTOR, 2020).
c. What extent are the differences differs from positive or negative traits?
It can be stated that the differences of the operational efficiency and functionality of the industries are significantly different from both positive and negative ends. In addition to that, ten negative traits of the differences can be explained as geographical scopes of these different industries that may differ the scope profitability. Furthermore, the dominant economic characteristics of the industries can also minimize the profitability of other sectors to a drastic level. As the supply chain is one of the crucial factor of each of the industries therefore a proper utilization and allocation of all the resources must be acknowledged properly so that the required reverie can be generated within a significant timeframe.
Although, the industries are also significantly connected with each other. As in terms of the retail sector it can be stated that, if the manufacturers does not produces the products, retailers will not be able to sell the customers. Therefore, due to this a significant inter-relation must be formed within all the industries. While discussing different type of traits of these different sectors, it can be stated that, due to the number of shares revenue contributions of the sectors may differ and the expectation of the investors as well (Retail Trends, 2020).
3. Having examined change and transformation critically assess an analyse how to ensure your organisation’s continued growth and success, organisations need to undertake transformation and growth
a. What kinds of changes are taking place in your sector and what do you believe the most successful organisations are doing to embrace the changes required to deliver continued success?
It can be stated that, the retail sector of the United Kingdom is drastically changing within an unprecedented speed and making itself able to tackle various challenges. Furthermore, new and enhanced opportunities are also being acquired by the retail sector in the recent periods. The major changes of the retail sector are stated as below:
- In the recent times a shift from the paradigm of sustainability has been observed that have made this sector as one of the crucial adopter of carbon free business operations.
- The sector have invented various retailing process by using the artificial intelligences and digital systems.
- The industry have started to generate more brand awareness among the customers of the nation.
There are several retail organisations are available in the United Kingdom, such as ASDA, Sainsbury, Tesco and many more. However, apart from the other companies, Tesco Plc have successfully adopted this changes and have implemented them in its operational structure. The company uses big data structure for imitating a productive analysis. Moreover, for increasing the customer’s interaction several artificial intelligence agencies have been used by the company. By using the digital technology it allows the customers to order online by using their mobile applications(Rossi, 2020). Therefore, it can be stated that Tesco Plc can be recognised as one of the significant organisation of the retail sector that have embraced all the recent technical and operational change of the sectors to ensure future successes.
b. To what extent is your organisation at the forefront of this transformation (or maybe it is trailing some of the best organisations in the sector). Give examples of specific actions and leadership behaviours you are seeing to underpin your view
The introduction of Artificial intelligence has led to a revolutionary transformation of the working procedures of Tesco Plc (van der Voet 2016). After the introduction of AI, the multinational company has managed to save huge working expenses. Moreover, the enterprise can save lots of expenses by reducing the number of human labour. Besidesthat, artificial intelligence accelerates the rate of production thereby increasing theefficiency of the organization. Along with that, Tesco Plc has managed to establish itself as thefastest growing retail company in the world (Rahman and Hadi, 2019). This has only become possible as the leadershipfunnels of the organization are much advanced and efficient. The leaderspresent in Tesco are eligible enough to take vital decisions that will lead to its rapid growth in the foreign markets. Tesco is also known for having a cordial culture in its workplace where the lower working staff can reach out to the topmost level in case they face any issue in their work processes. Apart from that, the culture of proper skill training also helped in creating skilled working staff for Tesco. As a result of that the quality of output gets better and effective. The allocation of proper resources so that the efficiency of the net output can be improved is taken proper care of by the leaders (Alexander et al. 2019).
4. Every organisation faces challenges and problems, which can be driven from rapid growth or serious decline. Identify and critically assess:
Due to the increase of rapid growth and expansion in the international markets, Tesco Plc has been facing problems related to communication (Evans 2020). The problem of communication is happening due to the diversification of culture and valueswithintheorganization. Since there exists workers ofvarious cultures and origin, clash of interests often take place thereby hampering the overall the working atmosphere of the workplace. Apart from that, there is a lack of synchronization in the storage of databases in cloud computing department. The leaders of Tesco Plc must find a way out so that all the data and information can be stored in a proper and systematic manner. Moreover, another big issue for Tesco lies in the domain of employee dissatisfaction. Due to massive expansion in the international markets,thenumber of employees is growing. However, the management team sometimes fails to provide satisfaction of the employees in terms of facilities, rewards and salaries (By 2020).
b. Key actions your organisation needs to take to put it on a path of future sustainable success
In order to enforce sustainability to the organization, deeper utilization of artificial intelligence must be enforced so that the production rate of the company becomes faster and effective. Apart from that, operations will be further improved after the effective application of artificial intelligence. The opinions of the employees working within the organization must be given proper importance so that they can express their thoughts and feelings freely (Neves and Schyns, 2018). This will help in elevating the employee satisfaction thereby resulting in the further growth of the enterprise. Besides that, all the sections and department of Tesco must be in proper synchronization with one another so that various functions of the company can be fulfilled in an organized manner. Tesco needs faster supply chain mechanism so that it can carry out effective distribution in native and international markets (Al-Ali et al. 2017).
From the above discussion it can be concluded that, Tesco Plcis recognised as one of the most significant business organisation of the retail sector of UK. In terms of the above discussion it can be stated that Tesco also have a specific position over any other organisations in the retail sector, as the company have managed to implement various operational strategy and digital technologies in the business operations. Moreover, the differences of the retail sector along with other industries of the nation have also been discussed in the assignment. It also have been assessed that there are several competitors are available in the market of retail biasness of UK. Sainsbury, ASDA are the significant competitors of Tesco Plc in UK. By evaluating the seven structure system of Tesco Plcthe efficiency of the operational behaviour of the company can be understood. By using the McKinsey’s seven step model has been used to describe the seven structure system of the company. Finally, it can also be understood that, Tesco Plc plays a significant role to drive the contribution of retail sector in the overall GDP of the nation.
There are five major recommendations which can be acknowledged by the operators of Tesco Plc for enhancing its operational capability and business infrastructure:
- It can be recommended that the suppliers of the company are required to be paid in line, regarding all the payment terms.
- Apart from that, the flaws and gaps of the operational management structures of the company should be evaluated property and probable measures should be taken.
- An efficient leader should be placed for each department so that the team members can place their enquiries and fulfil the tasks as per the requirements of the company.
- The internal operations should be operated with utmost transparency and clarity. Furthermore, the instructions of the leader should be efficiently transmitted to the team members in an understandable way.
- The finance team and the market analysts of Tesco should implement the strategic operations based on the preferences of the customers and suppliers.
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