Change Management Name of the Student Name of the University

Running head: CHANGE MANAGEMENT
Change Management
Name of the Student
Name of the University
Author note

1CHANGE MANAGEMENT
Executive Summary
The report has thrown light on analysing the process of change management which has been
implemented by Starbucks, however they have been unsuccessful in the market of Australia.
Furthermore, it has been noticed that there were different internal and external factors which
have affected the overall convenience of the company in a negative manner. Moreover, with
the help of the different change management models such as Lewin’s model and the Kotter’s
eight step change model have been implemented which helped in improving the overall
situation effectively. Lastly, the different recommendations have been provided which helped
in improving the overall status of the company appropriately.

2CHANGE MANAGEMENT
Table of Contents
1.0 Introduction..........................................................................................................................2
2.0 Causes of the Problem..........................................................................................................3
2.1 Internal Factors.................................................................................................................3
2.2 External Factors...............................................................................................................4
3.0 Proposition of Change Process for Managers and Employees.............................................5
4.0 Recommendations................................................................................................................8
4.1 Recommendations for managers......................................................................................9
4.2 Recommendations for employees....................................................................................9
4.3 Recommendations for similar companies......................................................................10
References................................................................................................................................11

3CHANGE MANAGEMENT
1.0 Introduction
Starbucks Corporation is one of the American organizations of coffee along with
coffeehouse chain. The company was founded in Seattle, Washington in the year 1971 by
Jerry Baldwin, Zev Siegl and Gordon Bowker. As of the year 2018, the company operates in
more than 28218 locations worldwide (Starbucks.com, 2019). The areas served by Starbucks
is in the entire worldwide and the key people involved in the organization is Myron E.
Ullman who is the chairman of the company. The number of employees working in Starbucks
is 238000 and there has been huge increase in the revenue which is about US$22.387 billion
till the year 2017. The products which are sold by Starbucks includes coffee, beverages along
with baked food products and sandwiches.
The problem which has been faced by Starbucks in the present scenario is relating to
the cultural issue faced by Starbucks after expanding their business operations in the
Australian market. The major reason for the failure was that the company could not match
with the culture of Australia and the customers in the Australia prefer different types of
ambience along with there is differences in the tastes of the coffee and other food items
which are sold by them. The crucial reason was in relation that the Starbucks organization did
not pay attention to the optimization of the product and it affected their profitability in the
competitive market of Australia (BusinessInsider.com, 2019).
The main aim and purpose of the study is to identify the changes which have occurred
in the Starbucks Corporation along with proper analysis of the internal and external factors
which are the major causes of the change. With the implementation of the change
management models, it will be helpful in recommending the different aspects which will be
helpful for improving the issue with the help of the change management models and theories.