Leadership Transition at Tesco – The Challenges in Store for Dave Lewis




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

In July 2014, Tesco Plc (Tesco), the largest retailer in the UK, announced a change in leadership. Dave Lewis (Lewis), head of personal care at Anglo-Dutch FMCG conglomerate Unilever plc. (Unilever), was appointed as the CEO in place of Philip Clarke (Clarke). Since its inception in 1919, Tesco had always had insiders at the helm. Lewis was the first outsider to lead it.

Leaders like Ian McLaurin and Terry Leahy (Leahy) played a major role in transforming Tesco from the third largest retailer in the UK to the third largest retailer in the world. The initiatives started by McLaurin like revamping the stores, opening large stores, and introducing customer centric programs, were taken forward by his successor Terry Leahy, who became the CEO in 1997.

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Issues

The case is structured to achieve the following teaching objectives:

  • Examine the role of leadership in the organization – Transactional Vs Transformational
  • Explore the managerial challenges that accompany rapid expansion and growth
  • Sum up the characteristics of the retail industry in the UK
  • Building the Adaptive Firm.
  • Assess competition in the industry
  • Determine the key success factors in the industry
  • Understand the strategies of a market leade

Contents
Introduction
Background Note
Tesco Under Leahy
Philip Clark At The Helm
The Plunge Continues
Challenges For Dave Lewis
Exhibit

Keywords

Tesco, UK, retail, recession, hard discounters, Philip Clarke, leadership challenges, Management style, recession, leadership styles, change, business environment, leadership challenges, leadership transition, strategy, retail in the UK,

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