Asda and Tesco: Restructuring to Reflect Multichannel Markets - Coursework Example

Asda & Tesco - Restructuring to reflect multichannel markets Contents Introduction 3 Influence of theories on Management practice 3 Significant influence of theories on leadership and management in 21st century 4 Leadership theories 4 Contribution of theories in restructuring plan of Tesco and Asda 5 Analysis 6 Literature Review 6 Omni channel Strategies 6 Examples of Business practices 7 Comparison 8 Inference 8 Recommendation 9 Conclusion 9 References 11 Introduction The multinational national company Asda and Tesco are restructuring its business to reflect is multichannel market. For the advancement of the ecommerce trade both of these businesses is losing its sales. The companies are thinking to restructure themselves from their shop floor to boardroom. The management practice of the firms is influenced by the leadership theories. Tesco is working on its management process to improve its retail business. The companies are trying to improve its management levels to cater more customers. By multichannel system the companies are trying to serve the rising demand and popular taste of the customers. It helps to increase the business system in various segments of the market. The management practices of the companies for restructuring the organization are influenced by leadership theories. Asda and Tesco are making different strategies and plan to restructure its current process by creating new roles and developing new stores in various countries. Influence of theories on Management practice The traditional theories of management help to implement rapid changes of business environment in the organization. Traditional actions of the employees were influenced for the implementation of different types of theories which are generated from a long time. With the help of these theories the managers of the company adopted many new practices and management process to organize the work process of the company (Coriolis Research Limited., 2004). Theories help to analyze different situations and according to that the company restructures its business process. Set skills of the employees are identified on the basis of various theories. It allows the manager to allocate work according to the skills and potentiality of the employees. The management practices of the organization are influenced in such a way for various theories that different rules and regulations of the company are formed after implement and trying out many theories (Geller, 2014). The behaviour, professional etiquette and also the productivity of the company are affected by theories. Many theories are there which motivates the employees. Implementation of those theories helps to increase organizational productivity. Significant influence of theories on leadership and management in 21st century The theories have a significant influence on management and leadership of the company in the modern century. Great Man Theories portrays different qualities of the leaders. By implementing this theory the company chooses its different leaders to organize smooth work flow process. Management system of the company is based on the performance of different leaders. By the implication of theories traits of different qualities of the employees are highlighted. In the 21st century the organizations focuses on the quality and characteristics of the employees for allocation responsibilities and duties (IBISWorld, 2014). Situational theory plays an important role to select different employees to handle various decisions. The modern organization maintains a definite organizational structure. Different theories play a vital role in forming the organizational structure. If helps to determine effective employees who will contribute in the growth of the company. With the help of theories group performance of the organization is improved. Team work of the companies in the modern century is mainly based on application of various motivational theories of human resources (Crutchfield and Roughton, 2013). Leadership theories Behavioural Theory of leadership is based on the belief that great leaders are not born but they are made. This theories focus on the actions of leaders. Their leadership qualities are not inherent. They have learned these qualities through observations and experience. With the help of this theory, companies take different initiatives to enhance the leadership qualities of the employees. Participative theory focuses on the leadership style where the leaders of the company take input from other employees for developing business operations (Gilbert, 2014). They encourage the contribution and participation of the team members in the process of decision making. In this theory the leaders judge the inputs of the team members for improving their performance. Contingency theory of leadership highlights different variables of the environment which determines the leadership style of the employees. According to this theory leadership style varies with situations. Success of the leaders depends largely on many variables which affects the situation (Ruddick, 2014). Contribution of theories in restructuring plan of Tesco and Asda In the restructuring plan of Tesco and Asda, behavioural theory, contingency theory and participative theory has a huge contribution. Both of these companies are involved in restructuring its whole business for its growth and development. With the help of Behavioural theory Tesco and Asda develop the potentialities of their employees. These companies recruit efficient staffs and provide them high quality training which helps the employees to have detailed knowledge about work process and enhance their skills and qualities (Manunphattr, Denny and Thomas. 2014). Contingency theory has a huge contribution in the handling the changing environment of the retail business. By the present system of retail business these companies are suffering from a loss of sales. Changing business environment promotes the growth of online stores. By this theory companies develop new leaders who very easily adopt these changes and manage different situations. These leaders motivate other employees of Tesco and Asda to help in the process of restructuring the company. Participative theory of leadership contributes in the work process of the companies (Ruddick, 2014). On the basis of this theory the employees get influenced by their leads and place their opinion in the restructuring process of the company. Analysis Literature Review As per the authors Stephen P. Robbins and Timothy A. Judge behavioural theory of leadership focuses on specific behaviour of the leaders. The leadership style helps the organization to develop different marketing potentialities with the influence of motivating behaviour of the leaders. The writers highlight the issues that according to the trait theory different persons have different qualities. In the behavioural theory the development of those traits helps the organization to develop efficient leaders (Robbins and Judge, 2011). According to the author Michael A. Hogg contingency theories of leadership has a strong connection with the behaviour and traits of the leaders which is based on different situations. The leaders do not have any such specific qualities. Their quality varies with the situations. With the development of business system of the company the leadership traits keeps on changing. Implementation of new system helps to build new traits of the leaders (Hogg, 2001). As per the authors Bernard M. Bass and Ruth Bass participative leadership theory is a very popular theory in the modern business operation. It is used by many companies to enhance the performance of its teamwork. This leadership style helps in participatory management process of the company. This theory plays a huge role in motivating the employees (Bass and Bass, 2009). Omni channel Strategies Multi channel retailing is known as Omni Channel Retailing. It is a seamless approach by which the consumers can shop through mobiles, computers and from other electronic devices. The retail companies are satisfying the customers’ demands by deploying new technologies and strategies in the business (Schein, 2010). Tesco and Asda are restructuring its business to compete with the changing business environment of the retail industry. Both of these companies are trying to develop its online stores to effectively deliver its services. By this system the companies attracts the customers who are very much tech savvy. For developing its online business the companies appoints different leaders in this business system for its efficient performance. The organic growth of the company influences the business to get involved in different online business. Examples of Business practices The three theories of leadership used in this paper are participatory, contingency and situational. To talk about the real business practices of participatory leadership the name of Carlos Ghosn deserves mention. Being the CEO of Renault and Nissan he offered his employees day to day challenges to perform better and incorporated the sense of his belief in them. He was of the opinion to empower them to take decisions (Western, 2007). An example of situational leadership style can be James Parker. Following such an approach James Parker involved Southwest Airlines into crisis situations. The tragedy of September, 2001 led to an unprecedented situation and it forced all airlines to shut the operations for some days. The employees of Southwest Airlines took passengers for some refreshments and the worse situation paved the way for the company to get recognized further on the airline industry. Steve Jobs, former CEO of Apple Inc. can be treated as the example of cognitive leaders. He had the capability to analyze situations and trapped the market pulse quite early. His leadership style is a success factor for Apple over the years (Kouzes and Posner, 2012). Comparison The strategy followed by Asda in the case study is some sort of cognitive leadership approach. They have taken the strategy of shaking the entire management structure. The entire management team will leave and the newly appointed management team will replace them. The new team will have specific job roles and will be under the monitoring system of more senior managers. Such a strategy aims to enhance the performance and level of empowerment of them (Barjasic, 2010). On the other hand, the strategy followed by Tesco can be regarded as the type of situation leadership framework. The company is now undergoing rapid transformation in the departments of Marketing, Information technology and in commercial. They are trying to put the staffs under better use with the aim to make optimum use of resources. Tesco has not tried to keep it a secret but rather disclosed it with the launching of the program called “building tomorrow’s Tesco”. They have tried to line themselves up with the multichannel model (Schein, 2010). When compared with Asda, Tesco has made transformation at the top management and followed the policy of bringing in fresh talents in the operation process. Inference From this case study it can be inferred that leadership theories and many other theories of management plays a vital role in the growth and development of Tesco and Asda. Restructuring its multi channel market both of these companies are implementing different theories of leadership which are contributing a lot in their business process. The important theories of leadership like behavioural, contingency and participative theories help to train staffs and develop their new job role in the multi channel business process of the companies. Based on this theories these businesses are rebuilding their operation model. It is also inferred that the companies are recruiting right talent to giving importance to leadership traits for implement different organizational changes. Undergoing transformation of both of these companies is highly influenced by various theories and management practices. Recommendation Tesco should undertake different initiatives to develop and implement various leadership theories for its organizational development. It can hire famous and well known people who have strong leadership skill in motivating and inspiring people. Both Tesco and Asda can implement different other theories of leadership and management to improve its business operations. The companies can introduce Laissez faire leadership in its management process. By this they will allow its employees and leaders to make decisions freely according to the problems. Quality of the training must be improved to develop leadership skills of employees. It will help them to implement the change successfully. Conclusion Tesco and Asda are implementing many new management practices for the growth and development of the company. Many theories are followed by the companies for restructuring its business operations. Presently the companies are facing a huge loss of sale for its old business structure. With the change of business environment the retail companies are changing its whole system for satisfying the changing need of its customers. Different theories of leadership are playing a vital role in the growth and development of these companies. Restructuring of the organizations are highly dependent on contingency, behavioural and participative theories of leadership. With this theories both of theses company recruits different employees and analyze their skills and capabilities. According to that companies provide training to them and develop their leadership qualities. By implementing Omni channel strategies Tesco and Asda are developing its online business for capturing more market share. References Barjasic, I., 2010. Drivers of Change and how Leadership can affect the Organisation: A case study of British. Germany: GRIN Verlag. Bass, M. B. and Bass. R., 2009. The Bass Handbook of Leadership: Theory, Research, and Managerial Applications. New York: Simon and Schuster. 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