Management

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

1MANAGEMENT
The modern business organizations are facing the impact of the tremendous
competition of the business industry. The continuous entry of the new organizations into the
market is one of the prime reason of the intense market competition. Under such situations,
the organizations are observed to try different strategies to cope up with the pressure of the
competition. Many of the business organizations of the modern generation are observed to
apply the competitive pricing policy and on the other hand, some of the organizations are
seen to focus on the improvement of the quality in their services as a strategy for the effective
management of the impact of the competition (Macchiavello and Morjaria 2017). The
changes in the strategies of the organizations are in need to be efficiently managed by the
organization to make sure that they achieve the desired success with the new strategy. The
paper is focused in the elaboration of one such organization in the form of Starbucks which is
in definite need to restructure some of their key business policies to achieve higher
preferences of the customers. I was able to work for the chosen organization during last year
where I faced that the organization is in need to change some of the key aspects of their
businesses. The paper provides the objectives of those changes, identifies the sponsors for
driving the change project and conducts a SWOT and Cost Benefit Analysis for the case.
Apart from this, the paper develops a timeline for the change project, evaluates the impact of
the change on the key stakeholders of the organization and portrays the plan for the effective
management of the challenges that are expected to be faced in the implementation of the
changes.
Overview and Rationale of the change project:
The chosen organization Starbucks is a global leader in the coffee shop industry. The
organization is able to develop their business in a significantly manner which is pretty evident
with the generation of 22.387 billion US dollars as revenue in the year 2017 (Starbucks.in.
2019). The chosen organization sells a wide range of food products starting from the coffee,

2MANAGEMENT
beverages, baked goods, smoothies to tea (Starbucks.in. 2019). However one of the main
weakness of the mentioned organization is observed to be their inefficient strategy in
penetrating the low income groups. Starbucks is renowned for the quality in their products
and the services and are also known for applying premium pricing policy which is significant
in stating the high prices of the products and the services of the mentioned organization
(Delmas and Grant 2014). However, it is pretty evident that the global financial crisis is
forcing a majority of the customers of the company to reconsider their spending on the
purchases of the coffees and beverages. Adding to this, the chosen organization is seen to
target the youth generation for their products and in that case, the application of the premium
pricing policy has the potential to create considerable number of problems for the youth in
purchasing the products of the organization and also influences the intention of the repetitive
purchases in a negative manner (Geereddy 2013). The introduction of the products at cheaper
prices was much needed for the chosen organization in order to expand their business in the
smaller cities to overcome the excessive dependence on the US markets. Adding to this, the
employees of the organization were also seen to be significantly stressed with the excessive
demand of quality in their services. Hence the company is seen to be in definite need of an
effective rewarding policy along with the employee engagement sessions.
Objectives of the change:
Introduction of products at cheaper rates.
Entry into the smaller cities.
Creation of the effective rewarding policy.
Roles
Impacted
Description of
Impact
Level of
Impact
Behavioural
Change
Change
Management
Who is
Accountable?

3MANAGEMENT
Required Strategy
Manufacturing,
Sales and
Marketing
The
manufacturing
department
will reduce the
manufacturing
cost of the
products. The
sales will be
responsible for
the increment
of the sales of
the products at
cheaper rate
and the
marketing
department
will increase
conduct the
communicatio
n regarding the
low prices of
the products.
High The
employees
need to be
more
concerned
regarding
their
operations.
The
increment in
the sales and
the
generation
of increased
profit will be
the main
success
criteria for
the
organization.
The
departmental
heads of the
three
different
department
and the
senior level
management
of the
organization
will be
accountable
for the
change.