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Strategic Management Assignment Examining Organisational Strategy Of Tesco


Write a well-researched and structured report on strategic management assignment critically analysing the organisation strategy of Tesco.


Executive Summary
The following strategic management assignment presents an important analysis of the organisation Tesco Plc. for its strategy development. The report begins with an in-depth organisational overview that tends to present the existing and current strategies of the company including its mission and vision statement. The organisation Tesco Plc. is one of the huge retail company in UK and it offers retail products and services of premium quality that in turn helps in developing a loyal consumer base for the company. The background of the company in turn illustrates the revenues and employee size of the company as well as the geographical regions served. Therefore, the report further presents the current changes that the organisation suffers as well as analysis of its competitive market. The in-depth analysis of its competitive market further provides scope for identifying opportunities of the company for further strategy development for better organisational operation. It is evident that strategy formation is significant for the attainment of growth and development in the long-run.

The current strategy that the organisation follows is also highlighted in the following report that helps to identify the areas of improvement for further strategy development. Moreover, the company’s internal and external environment analysis is presented to identify the main factors that influence the organisational success. Therefore, for conducting environmental analysis of the following report PESTLE and SWOT analysis is undertaken to analyse the success factors of the company. The existing business scenario of the company is analysed via porter’s five forces and VRIO model to identify the company’s scope for further development. Moreover, the following report identifying the strategies and helps in developing a strategy plan for the organisation that in turn can help the company to attain competitive advantage. The various leadership styles like transformational leadership style, charismatic leadership style, transactional leadership style, and the democratic leadership style that impact the organisational performance is analysed in the study of the report that further helps in effective strategy management for the organisation.

1. Introduction
1.1 Organisational overview
1.1.1 Mission and Vision Statement and Organisational Objectives and Strategies

A company like Tesco Plc. Needs a proper strategic direction with a core foundation of values. It helps the organisation to be in the right track and maintain consistency (Elving, 2005). Tesco has a core vision that remains constant but the practices of the organisation are consistently transformed with new adaptations to be relevant in the market. Tesco's vision is directed to the aspiration to become a global entity while catering to the domestic market. It also wants to become the most preferred innovative brands with a modern touch. It also aspires to earn customer loyalty by providing full of opportunities.

The fundamental goals of the company are:

  • To maximise the usage of technology to analyse their customer better
  • To focus on innovation and development
  • To gain employee respect
  • To properly use employee strength and intellectual resources

The company is currently opting for a new mission which includes a set of strategic moves to initiate further growth in the future. It is focusing on the inclusion of high-tech features to increase back-office agility and efficiency (Pollack and Pollack, 2015). Establishment of premium stores is also on the strategic list of the company where the brand will sell its luxury products.

1.1.2 Offering of Products and Services
The product variety is the key strength of the company (Gupta, 2011). Tesco offers a wide range of products including clothing, electronics, foods etc. It also offers financial services to its customers. Tesco offers grocery delivery services and free music downloads.

1.1.3 Geographical region served and revenues and employee size
Tesco is a multinational company serving different nations across the globe (Smith, 2011)\. Tesco is a UK based company which has its operation in nations including Ireland, India, South Korea, Czech Republic, Slovakia, and Hungary. The company has collected £63.911 billion in revenue until 2019. Its operating income is £2.206 billion and net income is £1.320 billion. The company has a huge employee strength with almost 450,000.

1.1.4 Company Brief
Tesco is one the largest brand that has been operating in the market from the year 1919 by Jack Cohen. The company has a rich reputation among its customers. The brand has an international recognition which helps the company to dominate a vast share of the market both domestically and internationally. It offers a wide range of products which helps to stay relevant in the market. The brand has a strong customer base across the globe which adds to the brand enhancement significantly. The brand value helps the company to gain customer preference.

1.2 Business Scenario
1.2.1 Analysis of current changes that the organisation faces

During the year 2019, Dave Lewis, the CEO of Tesco has decided to close its organisational fresh food counters across the market of UK, with closing over 90 of its chain's stores. Thereby, around 9000 employment has got in risk. Therefore, the employees, who got the significant risk during their job practices within the organisational culture, they have started to strive against the organisational business to get back their employment (Evans and Mason, 2018). In this aspect, Tesco has decided to make the continuation within its remaining around 700 fish, meat, etc. selling stores, which significantly fetch the threat that hamper the organisational culture.

1.2.2 Analysis of the competitive market and organisational rank
During the business operation of Tesco in the market of UK, various organisations like Asda, Aldi, Lidl, Sainsbury, Morrisons, etc. organisations also prominently operates its business in the same market by staying in the same industry. Therefore, Tesco has obliged to fetch the extensive growth within its organisational culture by implementing the utilising different kinds of strategies and strategic approaches, and also implemented the Clubcard facility and automation in a self-checkout system that helps to enhance its organisational operation (Cheng, Lyu and Zhang, 2020). Through which, nowadays, the organisation has been able to enhance its market share and take the leading brand image in the retail industry of the UK.

1.2.3 Critical evaluation of the organisational strength, weakness and core competencies
Tesco now has taken the leading role in the global platform throughout its efficient organisational business operation. In this way, the organisation now holds a vast amount of market share during its business. Moreover, the organisation has been able to implement different kinds of technological features within its organisational culture due to which, the organisation now has been able to engage a potent base of consumer within their organisational activities. However, the organisation get significant competition by its core competitors like Asda, Lidl, Morissions, etc., which also provides their service and product within a low cost manner.

1.2.4 Evaluation of the competitive advantages of the organisation
Porter’s Five Forces




Bargaining Power of the Buyers

Due to the having of the vast amount of options for the consumer to choose the organisation for accomplishing their needs, the bargaining power of the buyers is high (LAMBA and POLLOCK, 2017). Therefore, Tesco has started to provide its product within a low-cost manner due to which, the organisation has been able to engage a vast range of consumer base during its business operation.


Bargaining Power of the Suppliers

Tesco holds around 2500 suppliers within its business across the country, and the organisation provides significant profits to its supply chain system than its rivalries (Kurnianto et al., 2019). Therefore, the suppliers have no options to shift their business with the other organisation. In this aspect, the bargaining power of the suppliers is low.


Threats of New Entrants

To enter in the market of UK, a new organisation needs to holds a vast amount of revenues during its business. However, due to its having of vast market share in the UK, the other new organisations cannot meet with the market requirements regarding the organisational revenues (Kurnianto et al., 2019). Therefore, the organisation does not get any risk by the new entrants in the competitive market of the UK.


Threats of Substitutes

Moreover, Tesco sells and provides a vast range of products to its consumers, due to which, the organisation significantly get the advantages to engaging a potent base of consumers with its organisational business practices (Fiselier, 2016). Therefore, its competitors cannot provide dominating competence to the organisation.



During the organisational business of Tesco, Asda, Aldi, Lidl, Sainsbury, Morrisons, etc. organisations are greatly operating their business in the same market (Fiselier, 2016). These organisations also implemented the advance technological feature within its business to develop its operation for sustaining the business in the competitive market of the UK.


Table 1: Porter’s Five Forces of Tesco

Figure 1: Porter’s Five Forces of Tesco
(Source: LAMBA and POLLOCK, 2017)

VRIO Model:

  1. Valuable: The workers of Tesco are really a vital asset for the company. A large part of its staff is highly skilled or that contributes to the more profitable performance of the organisation. Moreover, the organisational rights help to give the allowance to the organisation for selling its products and services without any interference of the competitors (Lopes et al., 2018). On the other hand, whereas, the organisation provides its products within a fair cost manner; therefore, the organisation has been able to enhance the brand value in the market.
  2. Rare: During the organisational business of Tesco, the organisation has been able to hold its own financial resources by getting significant profits during its business operation (Min et al., 2016). Therefore, the external financial resources are not so essential for the organisational business operation.
  3. Imitable: Due to getting the potent impact of the competitive market, the organisation has been obliged to enhance its product variation to grab all the consumer community of the UK within its business (Lopes et al., 2018). Moreover, the organisation provides effective benefits to its employees to get the huge involvement of the employees to enhance the organisational business in the market.
  4. Organisation: Moreover, by getting a sustainable competitive advantage, the organisation has been able to reform its organisational structure of the business. In this aspect, the organisation has implemented various technological features like the Clubcard system, automation in the self-checkout process (Min et al., 2016). These systems significant save the times of both the organisation and the consumers.

Resources and Capabilities





Competitive Advantage

Positive Market Reputation





Long Term Competitive Advantage

Leadership Team





Strong Competitive Advantage

Awareness of Brand





Sustainable Competitive Advantage

High Consumer Rating





Realised Sustainable Competitive


Table 2: VRIO Model of Tesco

1.2.5 Evaluation of the current strategies that impact the organisational performance
During the business operation of Tesco, the organisation has become more prominent to implement various strategies and strategic approaches within its organisational culture like its corporate strategy, international business strategy, etc., which significantly helps to enhance the organisational business. Moreover, nowadays, Tesco potentially has been eager to implement some strategy to reduce the cost of its provided products and services, through which, the organisation has been able to efficiently engage a vast range of consumer with its organisational business practices (Alam and Raut-Roy, 2019). Also, the organisation implements its strategies to fetch the extensive technological innovation within its business culture to make easier it's business by implementing the automation.

1.2.5 Analysis of the organisational design and discuss how it affects the organisational performance
Since the business initialisation of Tesco, the organisation maintains the structure of its corporate governance. Firstly, the organisation keep the board at a top position, and under this, the organisation keeps audit committee, corporate responsibility committee, nominations committee, remuneration committee, and disclosure committee (Awolowo et al., 2018). This structure of its organisational corporate governance efficiently helps the organisation to potentially control the entire business in the global platform.

Figure 2: Corporate Governance Structure of Tesco
(Source: Awolowo et al., 2018)

Moreover, within its stores, the organisation pursues another structure for extensively developing the business. The position of regional manager of Tesco is in the top level, and under this, the store manager performs its job. Also, under the store manager, the food trading manager, non-food trading manager, and personnel manager perform their duties. Moreover, the food trading manager controls department of the fresh food section, and ambient food section, the non-food manager handles the department of electrical section and clothing section, and the personnel manager operates with the personnel assistant (Wood, Wrigley and Coe, 2017). These potential structures of the organisational stores proficiently help the organisation to efficiently operate in the market.

Figure 3: Organisational Structure at Store of Tesco
(Source: Wood, Wrigley and Coe, 2017)

2. Critical Analysis of the Organisational Environmental Factors
2.1 Analysis of Internal and External environment of the organisation
SWOT Analysis:



By its efficient business operation, Tesco now has been able to take the position of leading retail and supermarket brand in the UK, which significantly enhance its profits by 28% per annum. Moreover, nowadays Tesco holds 27% market share in the UK through operation in 14 countries with its 6800 stores of grocery product (Fatricia, 2017). Also, the organisation operates its business with 6 divisions like Tesco Homeplus, Tesco Metro, Tesco Extra, Tesco Express, One Stop, and Tesco Superstores. Thereby, it has been able to offer around 743,000 job opportunities to the people.

However, during the year 2017, Tesco was fined due to its misrepresentation and fake accounting declaration of profits. Moreover, the organisation has got threats from the Japanese government to close its stores during the year 2012 (Tirawatnapong and Fernando, 2018). In this way, due to its re-invention of this poor and weak organisational reputation, the organisation got the falling within its share prices by 9% during the year 2018. Due to which, Tesco has got a negative impact on its organisational business operation.



In the recent year, Tesco newly introduced its new stores Jacks, in which, the consumers could get significant discounts on their purchasing. This potentially helps the organisation easily compete with its low-cost rivalries Aldi and Lidl in the Market of UK (Tirawatnapong and Fernando, 2018). Moreover, Tesco has started to open its business in joint venturing with the company of the host country that prominently helps the organisation to efficiently enter and operate in a new market.

Due to the Brexit, the organisation gets significant losses during its organisational operation. Moreover, due to the launching of the clubcard system without notifying its consumer to fetch various negative impacts within its organisational business (Fatricia, 2017). On the other hand, due to the rising growth of the business performance of Walmart, the organisation gets in risk with its business.


Table 3: SWOT Analysis of Tesco

Figure 4: SWOT Analysis of Tesco
(Source: Fatricia, 2017)

PESTLE Analysis:



Political Factors

The domestic market of Tesco is stable and potent; however, due to the Brexit, the organisation has got significant hamper within its business. Even, Tesco had been obliged to close its operation in the international market due to the Brexit (Tetlow and Stojanovic, 2018). However, nowadays, the government of UK provide prominent support to the organisation. Due to which, the organisation gets back its existing stability and potentiality of the business. Through which, the organisation has been able to fluently operate its business in the international market through maintaining the potent relationship with the political leaders.

Economic Factors

During the outbreak of COVID-19 pandemic, the organisation has got pause within the consistency of its organisational business. Thereby, its gets a potent amount of loss during its business in the year 2020. Also, the maintenance of its labour cost, and managerial costs, Tesco has lost a vast amount of revenues that prominently hamper the organisational business of Tesco (Tetlow and Stojanovic, 2018). In this aspect, the organisation has decided to implement various strategies and strategic approaches to develop its organisational financial stability to extensively operate its business.

Social Factors

Due to its having of global business operation, the organisation gets numerous variations within its consumer segments. Generally, the organisation operates its business by engaging a vast amount of cultural differentiation within the engagement of the consumers (Wu, 2020). Therefore, to efficiently meet with the needs of the people, the organisation has started to provide a potent variation within its products and services to efficiently meet with the distinctive needs of the consumers.

Technological Factors

During the organisational business of Tesco, the organisation gets significant support by its organisational supply chain management system in the UK. Due to which, now it has been able to implement the automation within its self-checkout system (Matovic, 2020). Moreover, with getting efficient support from the suppliers, the organisation has been able to invent the Clubcard to make purchasing easy.

Legal Factors

Tesco during its organisational business operation always potentially pursues all the governmental trade rules and regulations to maintain the fluency within the business (Cheng, Lyu and Zhang, 2020). Also, the organisation always pays all the taxes associated with the trading in both the domestic and the international market. Therefore, the organisation does not face any legal issues with its operation in both domestic and international market.

Environmental Factors

During the outbreak of COVID-19 pandemic, the organisational business of Tesco has got the significant pause; due to which, the organisation has been obliged to deduct a vast amount of employment from its organisational culture (Wu, 2020). Moreover, within the product manufacturing process of the organisation, Tesco uses some chemicals that vigorously affect the environment. Therefore, the government has launched an environmental act to potentially protect the environment. In this aspect, the organisation significantly started to reduce the utilisation of chemical equipment within its product manufacturing process.


Table 4: PESTLE Analysis of Tesco

Figure 5: PESTLE Analysis of Tesco
(Source: Matovic, 2020)

3. Identification and Implementation of the Strategies
3.1 Analysis of the Strategies to overcome the challenges
3.1.1 STP

  1. Demographic: Tesco plc is a brand that almost caters to each and every age group and genders. It has a range of products to offer to customers (Awadari and Kanwal, 2019). Every working person and individuals who have families are the customers of Tesco. They almost offer products for every age group. the company will have to now especially address the requirements of low to millennial people.
  2. Geographic: The brand operates in different locations across the globe. Especially the brand offers its services in both rural and urban areas. Tesco operates in 13 nations other than the UK. But it can expand it international operations by entering more in developing nation as these countries have people from different economic segments which will increase the brand preference among them.
  3. Psychographic: Fundamentally the company targets people with an average expense capacity. They offer affordable products for people with traditionalist perspective and mindset. The company will have to attract the attention of the young people who are more prone to new and branded products. Addressing the needs of these people will help the brand to gain more competitive advantage in the market.

The main customer base of the company is the cost-sensitive customer base. This means people who do not want to spend much and have a strict bargaining capacity (Rosnizam et al., 2020). This offered product for cost-conscious individuals. Especially working classes-, lower- and middle-class people are the fundamental target market for Tesco. Targeting the young adults and teenagers with trendy product features will help the company to gain more advantages in the market.

Tesco offers a range of items and thus have various positioning strategies depending on different factors. These strategies help to address the target customers properly while catering to their needs (Odor, 2018). Tesco opts for multiple positioning strategies including functional positioning, price positioning etc. through the functional positioning Tesco offers its products with added features and functional qualities. Tesco introduced its finest range of products with functional features. Products sold through these strategies are often expensive compared to other products as these have extra features and functional traits. Tesco also uses price positioning strategy to make a significant approach to the price-conscious people. In order to gain the ultimate market existence, the brand will have to establish a strategy that solely address the young generation. It can be through the adaptation of trends and opting to the current market requirements.

3.1.2 Marketing Mix

The products are the key elements of Tesco. The diverse products help to cater to a wide range of customers (Kiitam, McLay and Pilli, 2016). The company offers different products with exceptional features to meet the needs of quality and functionality. It offers conventional designs with unique features which attract people. Tesco will have to focus on the additional products which are in line with the current market trend to extend their product line.

Tesco sells its products at high price limits. the high price is due to the highly featured items. Competitors of Tesco offers a similar price range thus it is important for Tesco to align the price range according to the market demand to stay relevant in the market (Elving, 2005). Tesco will have need to opt for a discount strategy to lower the prices for a particular period for the customers to increase its market preference.

Tesco sells its product through two different channels. It sells its products directly through its website and also it sells through the wholesalers. These wholesalers sell to the retailers and then the products are sold through the retailers (Kiitam, McLay and Pilli, 2016). Focusing on various other selling channels will also be a good strategy for Tesco to increase its visibility.

For its promotion, Tesco uses conventional advertising methods such as TV commercials and radio advertising (Smith, 2011). In order to be in trend, the company also promote its products through social media platforms which are more accessible and trendier among modern customers. Tesco will need to adapt more channels for promotions such as influencers and celebrity collaborations to emphasise the brand position.

The employees are the pillars of Tesco. The company has various employees working under different segments. Customer services, marketing, retail store etc. involves a huge workforce. Tesco thus should increase its training process to increase its efficiency.

Tesco has a systematic retailing process where the retailers can inform about their product requirements to through specific systems which are installed to speed up the process (Kiitam, McLay and Pilli, 2016). It also offers online delivery process. It should include advanced IT features to further elevate the process quality.

Physical evidence
Tesco has a distinct packaging style which easily identifiable in retail stores. The company also provides special shelves to make their products more visible to the customers. The online website also offers a vivid description of the products and displays images to make specifications clearer.

Tesco can use some of the most advanced strategic development approaches to initiate success for the company. The global range of operation is the key success factor for the company. The customer loyalty also plays a significant role ibn the consistent performance and growth of the company. Tesco can increase its existential success factors and utilise these to increase efficiency.

3.2 Implementation of the different strategies
3.2.1 Adaption of probable improvements and innovation

Organisational change is a process that leads to organisational productivity enhancement. Innovation is the key strength that can lead to a further increase in organisational stability. In order to achieve market standard and maintain the current trend factors. Companies need to adapt to new ideas and innovation to enrich the existential capacities to gain competitive edge in the market. Tesco being an international brand can also initiate innovation and adaptivity to increase its organisational efficiency (Kiitam, McLay and Pilli, 2016). Tesco though has been quite innovative in its operation but still it can add some more advanced strategic innovations to boost its current performance level. Technology and innovation go simultaneously. Inclusion of IT and advanced technological features is a great way to enhance organisational success. It can aid the process of organisation change process and assist the brand to uplift the existing range of productivity sufficiently.

3.2.2 Analysis of the implementation plan for the business
A transformation is a predominant approach that can initiate a long-term process which will lead to the progress of an organisation (Awadari and Kanwal, 2019). The desired goals can be achieved through the implementation of regular strategic alteration.

Figure 6: Kotter's Eight-Step Model
(Source: Odor, 2018)

Kotter’s eight-step change model:

  1. Creating urgency: Tesco needs to involve into the discussion of creating urgency requires to communicate on how the current strategies can create future threats, identification of the probable opportunities, engaging employees to think over the change and how to execute the transformation process.
  2. Forming Powerful Guiding Coalitions: Employment of the efficient change leaders and also selection of the appropriate shareholders, urging their involvement is a great way to initiate change (Odor, 2018). Tesco should emphasise on this factor.
  3. Developing a Vision and a Strategy: Adopting and establishing a strong foundation of core values is often considered one of the most important factors for the organisation. Tesco needs to ensure that the leaders can clearly communicate the core values with the other members to translate those visions into reality.
  4. Communicating the Vision: Connecting the vision of change with others is the most important factor for Tesco. In order to initiate a change, the organisational leaders must know how to communicate with the employees efficiently (Smith, 2011). Creating a convincing dialogue with them is necessary to attain the desired change.
  5. Removing Obstacles: Creating a strong operating system within the organisation is vital. It is important for the company to ensure the alignment of the company vision with the internal as well as external procedures. Monitoring the challenges and adopting new strategies to eliminate the obstacles with proactive strategies is important to mitigate the issues.
  6. Creating Short-Term Wins: Creating short term targets is immensely significant for the company to actually attain the goals. Creating multiple goals and accomplishing one at a time can increase efficiency and initiate rapid change within the organisation. These goals are achievable and comparably less expensive (Rosnizam et al., 2020). The company should also provide appropriate rewards to people who have contributed to the accomplishment of targets.
  7. Consolidating Gains: Observing the inefficient approaches and activities can help the company to constantly improvise their initiations. Analysing individual success stories will help the organisation to achieve meaningful insights about the issues and barriers.
  8. Anchoring Change in the Corporate Culture: Communicating the successful chance initiatives on every given opportunity is important (Kiitam, McLay and Pilli, 2016). Integration of the change is very important to make a significant shift in the strategic movement.

3.2.2 Evaluation of the positive and negative factors to change the principles for handling the transformation during the implementation of the strategies –
Change has been considered one of the most significant factors within an organisation. The Only constant thing in an organisation is change. Companies often face multiple challenges that need to be resolved with proper strategic direction (Elving, 2005). The main objective of an organisation is to accomplish the tasks efficiently to reach their desired goals. for a company like Tesco, it is more important to look into the matters that can create barriers for the attainment of these goals. Changes can be included through incorporating both major as well as minor factors. Major changes often lead to more complicated organisational scenarios which sometimes become difficult to mitigate.

Change assist a business to be updated with definite industrial trends whi9ch helps to stay relevant to market demands efficiently. It helps to retain existing and new customers with proper services and products. During the incorporation of new changes, the employees will be able to gain practical skills and knowledge on certain domains. Employees are the pillars who need to get accurate knowledge of their sphere of operation to gain creativity and professional credibility (Rosnizam et al., 2020). It will also increase the opportunities for the employees to exercise their potential skills effectively and contribute to the organisational goals. Adapting new changes can also initiate further progress of the new employees and transfer the knowledge gradually. It will reduce expense and also will assist to save more time.

Companies which are able to adapt new changes and execute the additional processes properly often promote an ambience that stimulates innovation. It will allow the employees to become more open-minded about changes and will not resist the probable changes. The organisational change also enables the employees to think more rationally and invest their intellectual resources into decision making. Changes can increase organisational positivity and initiate proper communication. It helps the company to sustain its performance and reach the corporate goals (Pollack and Pollack, 2015). Tesco being a globally recognised entity can also effectively incorporate change into their business strategy by initiating short-term and attainable targets to meet the requirements of the organization and also facilitate the customers.

Major changes within an organisation are effective but can create complications to execute the prior activities. Thus, changes can create certain risks for the organisation which can be difficult to identify and mitigate (Odor, 2018). Companies often incorporate various change strategies at the same time, it can increase the cost of activity execution and lead to over expense of human and other monetary resources. Sudden changes such as reconstructing or me4rging can create an ambience of tension and stress among employees which will affect their performance considerably. Employee is the active participants of a transformation process. Most importantly employees might need to change their co-working space which increases detachment. This can reduce inter-dependability and faithfulness among new members and existing employees. It will translate into their communication and interrelation.

In a nutshell, it can be said that changes are the indispensable aspects of the company. It often has diversified implications on the growth of an organi8sation. It is important for the company to analyse the company's existing resources and strength and weaknesses to adapt to new strategies according to their capabilities. Challenges should also be considered while deciding on a particular change approach (Kiitam, McLay and Pilli, 2016). Tesco is a multinational brand and has a market reputation. The company has been facing certain challenges which need to be properly recognised and resolved through the implementation of appropriate strategic inclusion. Embracing a new organisational culture might increase the efficiency and productivity of the company while mitigating the probable challenges. Managing the changes also has a significance on the success of the transformation. Appropriate management of the changes also helps to restrict conflicts.

4. Leadership Values and Manage Strategic Changes
4.1 Leadership styles and Organisational performance
4.1.1 Adoption of different leadership style and their impact on Organisational performance

The performance of organisations is connected to the company’s viability for long-term as well as short-term growth and benefit. Successful and dynamic leadership is needed for organisations, like Tesco, to do well apart from physical and abstract capital (Du et al., 2013). In the past, most scholars agreed that leadership is related to corporate success.

The type of leadership is seen as a mixture of various traits, features and attitudes used to communicate with its subordinates by leaders. Leadership means the management action style that combines corporate or personal desires and results to accomplish basic goals (Khan and Adnan, 2014). Organizational performance in business literature is a nuanced and multi-dynamic phenomenon. This section discussed how adoption of different leadership styles can influence organisational performance and effectiveness.

Transformational leadership style
The transformational style reflects on the growth and contemplation of followers. Leaders working on transition leadership are centred on improving the employee’s global belief structure, moral growth, expertise and inspiration (Doan et al., 2019). The transformational leadership functions as a good bridge between the supporters and leaders in Tesco, establishing a shared sense of inspiration, beliefs and interests. Transformational leadership will reveal the superior leadership in Tesco. Transformational leadership takes place as executives extend or lift the staff’s confidence in Tesco.

Charismatic leadership style
Charismatic leadership is seen as one of the most effective forms of management in which charismatic leaders establish a vision and followers are called upon to support and carry out the vision (Wasim and Imran, 2010). The charismatic leadership will call for imagination, ingenuity and inspiration for the workers of Tesco. Although the biggest downside to this leadership style is that people rely entirely on the leader and if the leadership exits the organisation, they are not in the right direction. The dilemma gets worse when charismatic leaders should not train subordinates to replace them in the future. This will lead to happy followers but few leaders in the future for Tesco. Thus the Tesco’s organisational performance may have a long-term detrimental impact.

Transactional leadership style
A leader is regarded as a transaction leader whether he or she is still able to return. This covers a lot of aspects of Tesco such as promotion, salary rise, assessments of success, new tasks, etc. Expectation is the big issue with this kind of leadership. Transactional leadership may, thus be described as the sharing between management and employees of goals and incentives (Al Khajeh, 2018). Transactional leadership has a positive effect on the success of the company, Tesco. The style of transactional management helps build and maintain the context in which Tesco’s corporate and individual capacities are maximised as workers will still receive tangible and immaterial benefits.

Democratic leadership
Democratic leadership is a leadership that decentralises decision-making and shares it with all subordinates. The propensity for weak performance and bad decision making in Tesco will be high in the democratic form of leadership. However, it is also understood that democratic leadership motivates workers to do well when their views are respected (Al-Khaled and Fenn, 2020). The idea that everyone concerned has a fair interest in policy making with common experience is also a significant issue with democratic leadership.

4.1.2 Impact of Leadership in managing organisational strategic change
Most companies today accept for days that good management is one of the key contributors to corporate success and progress overall. Knowledgeable leaders are people who have a store of resources and expertise that helps them to efficiently and effectively handle everyday activities. In order to bring about positive reforms, effective leadership is often important (Al-Ali et al., 2017). In discussing the topic of organisational reform, researchers pointed out the value of culture, and cited some roadblocks which could impact attempts to handle change, including a hidden culture, the culture of individualism and silence. These challenges can be dealt with by the professional leadership. Awareness and other talents and abilities are handled by expertise within Tesco.

There are proven leadership qualities which are obligatory for efficient and successful leadership can be effective for Tesco. Different skills are highly effective for leaders and are also linked to the efficient organisational transition. Virtanen stresses these skills of leaders to effectively improve the corporate style of his leadership skills. Leadership skills are closely related to effective organisational change, and leadership skills have a great relation to success and change (Doan et al., 2019). Organisation change in Tesco can be fostered through five stage change management process, like planning, enabling, launching, facilitating and maintaining. The manner in which leaders manage the job can be separated into five stages, some good for preparation or initiation while others are good for tracking and marinating. In Tesco, multi-faceted leaders are called strategic leaders. Tesco’s leaders should know how to schedule and arrange tasks at work, how to treat clients and expand the creativity to the staff to create and execute plans. The handling of transformation is also of considerable significance to leadership skills.

Figure 7: Leadership and Organisational Change
(Source: Al-Ali et al., 2017)

4.1.3 Impact of Leadership on Corporate Values and Social Responsibilities
Leaders have a remarkable influence on business culture and core values. Employee leadership is also defined as identifying a specific goal, expressing it and addressing immediate disputes between workers and facing the company in general in a professional and cultural manner that has an extensive effect on Tesco itself. Effective leadership can affect the values of Tesco, such as integrity, respect, ethics and tolerance, through an outstanding attitude at work, a vision among the workforce, better responsibility, an encouragement for personnel, an approach to community and values, and coaching of employees (Prigozhina, Leonova and Kontorshchikova, 2018).

In an organisation, analysis into the influence of leadership models on CSR is frequently theorised and analysed using strategic leadership or senior management concepts. Many studies have analysed demographic factors of leadership and leadership principles to determine leadership’s effect on business CSR decisions (Alrowwad et al., 2017). Any sustainable experiments have shown a significant role in the area of leadership in Tesco. Transformational leadership has major impacts on the responsibilities of Tesco. For environmental practises and societies, Transformational Leadership has a positive effect on employee happiness and dedication. The constructive partner with Tesco’s CSR operations is transformational leadership. Transformational leadership has been positively correlated to the trend in CSR deployment firms. In addition, scholars have established the positive reinforcement for CSR practises in an organisation through transformational leadership.

Instead, transactional leadership has a detrimental impact on administrators making decisions regarding CSR execution. Altruistic ethics are synonymous with transformational leadership and utilitarian ethics transactional leadership (e.g., use of power, rewards, and sanctions). Transformational leaders are rather ethical and value-oriented. The leaders of change will achieve greater stages of spiritual development in Tesco than the transactional leaders and express a vision that is just as accurate and in line with the demands of the different actors (Kiitam, McLay and Pilli, 2016). Transformational leaders, especially intellectually engaging, will explore and think deeply about the environmental landscape in Tesco and the way in which diverse stakeholders can be supported.

4.2 Recommendation
Tesco is dismissive of unilateral deductions for vendors, duration of delays in contracts, which were often deliberate, and its own funds were targets for equal consideration of suppliers.

In the following some key recommendations for Tesco have been provided:

  • Tesco should apply the understanding of various leadership style’s influences on company corporate social responsibilities and performance.
  • Money payable to providers shall be billed according to the terms of payment;
  • Unilateral deductions must not be made by Tesco;
  • Supplier-identified data entry errors need to be corrected promptly;
  • In its relations with suppliers Tesco must ensure accountability and clarity;
  • The analysis results must be trained by the Tesco finance team and the customers.

Also, there are various corporate values that Tesco should focus to implement within its organisational workplace. Such as:

  1. Integrity: Organizational integrity relates to personal players’ ethical honesty, the ethical nature of their interaction as well as the prevailing values, practises, decision-making and success within a particular entity (Prigozhina, Leonova and Kontorshchikova, 2018).
  2. Honesty: Establishing a climate of honesty further encourages an independent and responsible environment. The transparent workplaces, the happier the workers are. Honesty develops trust in the business and loyalty in management.
  3. Trustworthiness: It is based on the trusted party's ability, kindness and integrity." One party trusts another on the grounds of the trustworthiness of the other party.
  4. Accountability: Corporate accountability exists if all workers operate in such a fashion that they can achieve their duties effectively and promptly (Xu et al., 2016). However it is not overnight to establish a corporate accountability culture.
  5. Customer Experience: External and subjective customer experience includes some interaction with an organisation directly or indirectly. During buying, use and operation, direct communication is normally made by the customer and is typically initiated.
  6. Discipline: Corporate discipline is the self-restraint exercise and learning to take the right course of action that cannot be your wish. Discipline is of paramount significance in team sports, where many participants are committed to the same objective.
  7. Humility: Organizational humility is a work ethic based around a will to listen, cooperate with and even accept errors (Stankiewicz and ?ychmus, 2017). This is a consistency that can improve companies’ trust among associates and executives, through the turns and turns of challenging business circles.
  8. Constant Improvement: Constant improvement is a structured strategy that can help an enterprise achieve the targets of rising profit, lowering costs and driving growth. Innovation is an organised approach.
  9. Teamwork and Collaboration: Teamwork is the combined activity of persons with common skills and collaborating for the same goal. A collaboration of members is a very unusual version of a conventional team, since their participants have different abilities.
  10. Innovation: organisational innovation is the introduction of a modern organisational approach in the firm’s management processes, workplace or external affairs.
  11. Idealism: Idealism is the process of shaping and following values in the sense of strategic management (Lim, 2019). Ideals correspond to the ideal or optimum conception. Idealism is also viewed as unreal.

5. Conclusion
In the overall article a significant review has been provided for the company Tesco Plc. for its strategic growth. The company’s history, in particular showed the company’s income and scale and the fields in operation. The study therefore further presented the developments currently being faced by the company and the examination of its business competition. A detailed study of the business environment also helped the corporation to recognise prospects for further implementation of plans for better organisational activity. The current policy adopted by the company was also outlined to better define the areas for progress in the implementation of a strategy.

In order to determine the major factors that affect corporate performance, the company’s internal and external environmental analysis was presented, through SWOT and PESTLE tool. In order to assess the organisation s scenario for further growth, Porter’s five forces and VRIO model evaluated the current business case. The article further described the tactics which allows the corporation to establish a business strategy to help the business achieve competitive advantage. The analysis of the paper allowed the successful strategic management of the enterprise and also analysed different leadership types that influence organisational performance. Therefore, the report also had suggested strategic recommendations for Tesco. The recommendations included strategic changes to be implemented and core corporate values that should be followed by the company.

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