Developing appropriate leadership styles
A Tesco case study

Page 1: Introduction

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Tesco is a customer-orientated business. It aims to offer products that provide value for money for its customers and to deliver high-quality service. Tesco wants to attract new customers, but it also wants to keep its existing customers happy. Building customer loyalty is a cost-effective strategy to grow the business. This is because satisfied customers are a good advert for the...
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Page 2: Management and leadership

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There is a difference between management and leadership. Management is about getting things done. Managers organise human and physical resources to achieve business aims and objectives. Leadership is about influencing, motivating and inspiring people. It is about coaching and developing people, treating them with respect but challenging them. Leaders seek to create strong teams, with people...
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Page 3: Leadership styles

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The business writers Tannenbaum and Schmidt categorised different leadership styles. They suggested that leadership styles could be explained on a scale ranging from ‘autocratic’ through ‘democratic’ to ‘laissez-faire’. The autocratic or authoritarian style is characterised by an ‘I tell’ philosophy. Autocratic leaders tell their staff what to do...
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Page 4: Leadership styles in action

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Although each person will have their own preferred leadership style, the most effective leaders adopt a style appropriate for the situation. They will consider several factors in deciding which style to use: The task - Is it business critical? Must a decision be made immediately? What will be the potential impact on the business? The team - Does it have the right skills and resources? Is it...
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Page 5: Factors influencing leadership style

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People at each level of responsibility in Tesco, from administrators and customer assistants to directors, face different types of decisions. Each comes with its own responsibilities and timescales. These will influence the most appropriate leadership style for a particular piece of work or for a given project or audience. Tesco managers have responsibilities for ‘front of house&rsquo...
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Page 6: Conclusion

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Tesco leaders need to be inspirational, creative and innovative, ready to embrace change and with a long-term vision for achievement. Effective leaders manage by example and in doing so, develop their teams. Tesco encourages all its managers to lead by example. It requires leaders who can motivate, problem solve and build great teams. Tesco employs people in a wide range of roles and provides a...
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