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EFFECTIVE LEADERASHIP

Submitted to:
Maam Saima Naseer
Submitted by:
Munazzah Iqbal
Wajeeha Razzaq
Samar Iqbal
Hira
Maria
MBA



ASSIGNMENT # 1
CASE NO. 1
TERRY TESCOS LONG SHELF LIFE


Case Summary
This case is about a career of Terry Leahy at Tesco,The man from the Liverpool council estate who
transformed Tesco from a tired and tatty supermarket to the biggest company in Britain the
supermarket that takes around 1 of every 7 spent in the High Street. And also a bank, a 1billion-
a-year clothing business, the UKs biggest internet retailer and one of our top five retailers for
books, toys, electrical equipment and home products.
And thats not touching on its global empire the shops in Asia, Australasia, Europe and America.
The list is endless. With Terry at the helm, Tesco grew into a giant worth 35 billion.He was a UK
based retailer, especially ten years of her career are discussed more closely when he turned into a
great leader. And become CEO in 1997. Terry Leahy started his journey from zero, as he belonged to
very ordinary ignorant family. Tesco has come a long way since the beginning of the 1990s, when
he was playing second fiddle to Sainsbury `s. It currently has a 30% share of the UK market
products, almost as large as its two nearest competitors, Sainsbury and Wal-Mart supported by
Asda, combined. It used its solid domestic base to develop its international operations, culminating
with the launch of a chain of stores in the native land of Wal-Mart at the end of 2007. The case looks
at the leader, who had been watching this remarkable progress, Terry Leahy.
It keeps track of its growth from the child council houses of the most respected business leaders of
the UK (five times) and the Advisor to the Prime Minister of Great Britain. His success is all the
more surprising, given his low-key style and lack of charisma. We look at other factors such as
ambition, passion and personal example that have contributed to its growth, efficiency and
durability as a leader. She got all desirable personal qualities of an effective leader, the basic
competencies required and the important role played by the leader. These three aspects are
complementary and enable participants to get full satisfaction task management by covering how
leaders should be, what they need to know and what they should do. The case also allows us to
explore other issues related to the training environment itself, the allocation of time and maintain
their edge over time. Leahy believes that the key would be when youre not improving your
business as much as somebody else could.
Q.1) What do you think Terry Leahys personality traits are for each of the Big Five
dimensions of personality? Identify and justify with reference to the case.
Surgency:
He was highly extravagant. According to MacLaurin, Leahy Tessy was very good
marketer, he has an influence on people and very big motivator of them.
He was very decisive, bright and sharper than others and assertive as well. His
customers and employees were much influenced, they used to listen him and follow
him by heart.
Deputy Chairman of Tesco conceded him as He was very sharp and fairly difficult.
He is a competitive guy and there is more iron underneath.

Consciousness:
He was determinant; punctual and very clear in his thoughts, believed on real
practical work as once his remarked as Its not a dream factory. We dont sit in the
dark dreaming up things. All our innovations come from close observation of the
way customers live are changing.
He used to set goals and then achieve them at the very right time.

Emotional Stability:
Leahy was not so emotional but he believed in satisfaction of his followers either
customers or employees, as he offered bonus programs twice a year for each
manager from top or bottom to appraise their performance.

Openness to Experience:
Leahy was very creative, innovative person. Always came with new and risky
marketing ideas (Part time workers to the final pension scheme and introducing a
new share ownership scheme.) believe on the idea of being listener.
Moreover he introduced TWIST (Tesco week in shop together) back to the shop
floor and it was a brilliant idea to make his staff more hardworking and active.
Q.2) Considering the 9 narrow personality traits required of effective leaders, how would
you rate Terry Leahy on all these 9 narrow traits (i-e which ones he rate high, medium and
low)? Why? Justify?
To be effective leader, it must consider high rank of nine narrow personality traits. First and most
attribute yourself for success and failure depicts the internal locus of control and in that case to
become stand out, Terry Leahy believed in execution of strategy to pursued the consistent
unmatched goals with building confidence and trust that made him pessimistic, consistent and
determined about his work.
Deals with thousands individual in mild manner to motivate them under one roof. Leahy was
enough confident and believed in his own capability as good marketer, having good retail sense and
strategic vision that leads the Tesco competitive over Sainsbury.
Leahy believed in interesting, challenging, innovative task and likes to help his follower as a boss
rather than to become biggest problem for them.
Q.3) The first weakness he mentioned was his Irish Temper. Explain and justify whether
Terry Leahy has a bad temper or not.
Demanding and ambitious personality of Terry Leahy made him aggressive because according to him
he had to deal with thousand individuals who want to do something else on their jobs. However Terry
Leahy doesnt have a bad temper. However, underneath Leahy was charming and warmhearted with
good Liverpudlian sense of humor.
A CEO has to have a spiky side to him. You cant be nice to everybody all the time.
Q.4) Is Terry Leahy really modest. How do you remain that modest in spite of the success and
the accolades? Does this man have no Ego?
Terry Leahy is a humble and modest person. His brothers left school at the age of 16. He admired
his parents as they really work hard for him so that he could do his A-levels. And he is the only
person who got higher education. Leahy has seen hard times in his life. According to him:
Its undoubtedly the case that if you have nothing behind you or if youve seen hard times it
develops in some people anyway, an insecurity and the basic motivation to put the past behind
you.
Q.5) What type of Self-concept does Terry Leahy have and how does it affect his business
success? Does Terry Leahy possess a theory X or theory Y attitude?
Terry Leahy possess a Theory Y attitude. As he believes that people want four things from their
work:
1. A job that is interesting,
2. A chance to get on in life,
3. To be treated with respect and
4. A boss who is some help and not their biggest problem.
If thats all you do each day, try to give them those things, and then they will follow you anywhere.
And this attitude helps the Leahy and in his lead the Tesco stretched its lead as the UK's largest
retailer and also grew internationally as the third-largest retailer measured by revenues.
Q.6) According to McClellands Achievement motivation theory, which of three needs Terry
Leahy rates high, medium and low on? Justify.
McClellands theory Achievement Motivation theory
Need Rates Justification
Affiliation Moderate He wants to have good
relations with his subordinates,
customers and supervisors.
Power

Moderate He was warm person but want
to have control to some extent,
so as to achieve targets.
Achievements

High He developed strategies and
implement them to achieve
goals. Like to take challenges
and risks. Committed and
passionate to his work.



Q.7) According to the 3M Leadership competency framework there are 12 competencies
required of effective leaders (i-e 1) Ethics and Integrity 2) Intellectual Capacity 3) Maturity
and Judgment 4) Customer Orientation 5) Developing People 6) Inspiring People 7)
Business health and results 8) Global Perspective 9) Vision and Strategy 10) Nurturing
Innovation 11) Building Partnerships and Alliances 12) Organizational Agility). Considering
the above 12 competencies for effective leaders which ones Terry Leahy good at and which
ones he is less good at and Why?
According to the 3M leadership twelve competency framework, terry would become effective
leader by having intellectual capacity and good strategic vision to build and nourishing the
innovative idea by embracing the Brownfield, regenerating stores in downtown, diversified into
nonfood items like services of internet, telephone online grocery business etc. He believed that your
action should be consistent with your words. He has clear thinking decisive individual shows its
ethics and integrity.
He set up a customer insight unit to analyze the business, customers and competitors for its healthy
running business and for getting the highest shares in market. Customers were relentless focused
by Leahy who set among them and observed their views during store visit. He is a good motivator,
assertive in its judgment and appraises the performance of employees. His main phenomena of
developing people are what you cause other people to do rather than what you do yourself and its
much about motivating, inspiring and challenging other to do more differently.
Being a leader he was very sharp at making social contacts, According to MacLauin first impression
of Leahy is stubborn person but inside hes very warm-hearted and friendly. He got a very good
sense of humor. So he always had good relations with his staff and his customers he was very
influential that people usually find it difficult to reject him. To enhance TESCO he didnt stop. He
diversified his business by switching to clothes from food and build branches in 8 big countries
include china. He was very innovative and creative, high at risk taking. So he grabbed each
opportunity in market at right time. He was very challenging that one of his statement is that we
like to point out to people who says we are number one in Britain that we are only number twelve
in world.
Q.8) Effective Leaders need to have skills and take actions on three different fronts i-e as
strategists, as architects and as mobilizers (both internally and externally). Working
through the case how would define Terry Leahys role as a strategist, as an architect and as a
mobilizer.
Terry Leahys Role as aStrategist:
By creating a 4 pronged strategy prior to becoming CEO to have a vision on how to improve
the company.
Diversity in food chain was requirement of future success.
Innovation in retail products like non-food store to compete in the market.
Identify competitive edge in trust it had and low customer acquisition cost moved into
financial service sector.
International expansion by different ways.
Proper execution of strategies for achieving his goals.
Terry Leahys role as anArchitect:
Implementing the 4 pronged strategies in stages successfully and delivering what he had
planned.
By moving out of the shadow of copying Sainsburys and using methods such as the one in
front method to minimize checkout queues.
The Club card loyalty scheme
His Customer Insight Unit helped gain valuable insight on the business, its customers and
competitors on a daily basis.
The annual Tesco Week in Store Together program was essential to keep employees
knowing their bosses also know the strains of the jobs they do every day.
Made sure their company image always gave the impression of being a classless store.
By introducing self-scanning machines this reinforced the ideal that the customer is the one
in control.
Terry Leahys role as a Mobilizer:
His confidence as an example to motivate employees to always take charge.
Never being afraid of challenges and using them to instill triumph over adiversity
He used aggressiveness and determination to get the job done
His clear thinking and swift decision making skills made the company quickly gain headway
to success
Always believed innovation and ideas dont just pop up but a company needs to keep close
observation on the way customers lives are changing.
He was always a part of every job of his companys running from visiting stores often to
improve operations to sitting in customer surveys.
Q.9) What evidence is there that Terry Leahys leadership has evolved over time? How has
he developed his career?
Leahy is considered as a visionary leader who led the company into a series of organizational
changes that aimed for the company to become more customer-focused and to develop the
companys workforce.Leahys leadership style is basically responsible for the organizational
success of Tesco. This is essentially because Leahy sees Tescos transformation as the only variable
that would guarantee his leadership making a difference.
The success of Tesco was heralded by the appointment of Terry Leahy as the CEO Terry Leahy is
revered as an excellent leader. He believes that the success of a leader depends upon maintaining a
happy workforce. Leadership was also found in customers. Leahy said that if you allow them,
customers will take you further than you can go on your own. Leahy was quick to point out that
Tescos success was not all his own, acknowledging that it was a team effort. Leahys tenure is
proof of his effective leadership. The average CEO remains for four years while Leahy was CEO of
Tesco for 14 years.
He used every chance to improve his leadership. These opportunities increased his confidence step
by step.
Q.10) Identify some of challenges (or dangers) facing Terry Leahy today and in coming years.
While Terrys 14 year leadership has made Tesco grow much but future leadership of the
company needs to be trained so that they can follow the same growth pattern that Terry
has helped sustain over the years.
The situation of local industries development will affect Tesco because Tesco has a wide
range of operations. So its various industries in the region are underdeveloped they cannot
purchase locally and have to transfer goods from further afield or establish a local
distribution. This will increase the cost of delivery of goods.