Change Management in Business Operations

This assignment discusses the essential role of change management in a business process, highlighting its benefits and impact on operations. It also emphasizes the significance of internal and external drivers, as well as effective leadership styles, in achieving organizational aims and objectives.

Understanding and
Leading change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparison between different organisational operational strategies after adopting changes
.....................................................................................................................................................1
P2 Measurement of internal and external drivers of change on leadership, individual and team
.....................................................................................................................................................3
M1...............................................................................................................................................5
M2...............................................................................................................................................5
D1................................................................................................................................................5
P3 Evaluate how to minimize negative impact of change on organisation.................................5
TASK 2............................................................................................................................................7
P4 Barriers which effect the change and affect leadership decision making strategies..............7
M3...............................................................................................................................................8
D2................................................................................................................................................8
TASK 3............................................................................................................................................8
P5 Application of suitable leadership style in organisational context........................................8
M4.............................................................................................................................................10
D3..............................................................................................................................................10
CONCLUSION ............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
In a business organisation, process and operations of business can be
much more successful by adopting various tools and techniques and thus
utilising them at uppermost level and that too for a long period of time.
Besides this, there are some dynamic nature of marketplace which is being
needed to be adopted. There are number of modifications which takes place
within the marketplace and there are various reasons for that like changing
in trends, tastes and desires of customers (Caruth and Caruth, 2013).
Flexible is an essential element for the company as thus provide many kinds
of benefits and most of it, it helps in company grow and get success. In this
report, company chosen will be Starbucks and Costa Coffee and they both
are multi national companies who are dealing in coffee products across the
globe. There are certain things which are being discussed like highlighting
up of impacts of changes within the structure of company and its policies.
Furthermore, there are various others sections like the drivers which have
potential to create direct impact on the behaviour of team along with
leaders for attainment of aims and objectives in better and effective
manner.
TASK 1
P1. Comparison between different organisational operational strategies after adopting changes
There are number of factors due to which several modifications are being done and those
factors are culture, tastes, technology and many others. Whole process of changing up the
process and operations are stated as organisational change. For acquiring up the changes which
are being needed by a company to grab they best opportunities for taking out the better position
for the future along with staff members and long term relationship with the customers
(Colcleugh, 2013). Two companies are being taken which are at multinational platform and
are dealing in food chain and those companies are Starbucks and Costa Coffee.
STARBUCKS

This company is one of the largest organisation who mainly deals in coffee products and
that too across the globe. This company was founded in 1971 by the three people named as
Grodon Bowker, Jerry Baldwin and Zev Siegel in Washington DC, United States. There are
approx 15000 outlets of this company within 50 countries.
COSTA
This company is the major competitor of Starbucks because both of the companies
mainly deals in similar products and other eatable items. This company was founded in 1971 in
London and now it is dealing in about 31 countries. There are around 3100 stores opened
worldwide and thus operations are being expanded.
There are number of policies and strategies which are being formulated and thus adopted
by both of the companies but while adoption, they made some few changes of their own and they
are being described below:
Strategies Starbucks Costa
Demand based
strategies
The main focus of the company is
on analysing and determining the
needs and wants of the customers
and thus changes the factors
within the products and services.
The menu of the Starbucks has
made number of changes within
the items they mainly serve
(Getha-Eby and O'Brien,
2014). Apart from this, they have
put innovation within the
operations which are being
conducted according to the needs
and wants.
The main products and services of the
Costa Coffee is the coffee of various
cultures and tastes of products of
various places. There is the main
difference between the Costa and
Starbucks is that they do not focus on
demands of customers. Products prices
are high in nature and sometimes it
becomes difficult to have a cup of
coffee at those level of prices. This
company is mainly focusing on
innovation and experiments so that the
taste of people can be modified.
Pricing strategies When the company attained
effective and high goodwill, they
increased the prices of products
There are number of cost effective
strategies which are being adopted by
this company in order to have a leading

and services and this in turn
directly affect the profit ratios of
the company as they prices were
not reasonable for the customers.
So after conduction of deep
market research, they came to the
conclusion of redefining the
pricing strategies for lifting the
ratios.
position within the marketplace.
Various changes like unique and
innovative taste is being put in products
(Grootenboer, Edwards-Groves
and Rönnerman, 2015). This is
all done for giving out the new
experience which can be given to
coffee lovers.
Promotions and
advertising tactics
The priority and criteria of the
company was adopting marketing
strategies which are effective in
nature and thus high investment is
being done among those so that
various benefits can be availed by
the company. High market share
was being adopted by them by
placing and utilising the strategies
at the same time.
This can not be stated as among the
priorities of the company but as per the
dynamic nature of market share, there
are number of strategies which are
being obtained and along with that
promotional activities are mainly
focused on in order to have high market
share.
Process Particular structure was being
made and thus they have been
following it but with time
modifications are being done for
having better approaches in
effective manner (Ielmini and
Fugazza, 2011).
There are various tactics which are
being adopted by this company and the
most effective one is traditional
methods of customers like they serve
the coffee on the table along with
having friendly nature with employees.
There are number of changes which are
being done like hospitality,
communication channels, behaviour
and presentation as well.

P2 Measurement of internal and external drivers of change on leadership, individual and team
Leadership
Leadership can be stated as process in which there are large number of people who
mainly works as team and the person who is head of team is called as leader. There are some
certain objectives which are being allocated and thus it is the duty of leader to manage it within
they team and achieve it within provided tenure. There are number of qualities which are being
needed according to the framework (Jellison, 2010). Every element needs to be processed
while manufacturing up of products and services. These can be stated as internal and external
drivers of an organisation.
Internal drivers
 There are various structures which are being defined like capital structure and goodwill
of the company and thus those are being compiled within the marketplace.
 Number of elements are being utilised who plays crucial role in improving the goodwill
of the company and those factors can be creativity and Innovation.
 It is highly essential for an organisation to maintain and regulate the effective and
comfortable environment at the workplace forb applying the modifications in easy
manner.
SWOT Analysis:
Strengths weaknesses
Starbucks has a unique roasted taste in its
coffee. Apart from this, they also have ample
number of stores in all over world which
helping them in making profit at its maximum
level.
Starbucks employees do not accept changes
this may lead organisation to losses. Also, it is
vital for management to make them understand
about alterations.
Opportunities Threats
Starbucks on a continuous manner gives
training to employees which aid consumers in
New organisation with unique innovative ideas
can be a threat for Starbucks. Management

getting proper sort of experience while
communicating with them.
have to make alterations as per demand of
customers for sustaining at marketplace.
External drivers
 This can be stated as one of the most essential driver on which the whole business
process mainly depends upon along with the growth factors.
 There is another factor which has potential to create direct impact on the company
production and profit ratios and that is the rivals which are present within the
marketplace. There are various factors which are being considered as external drivers of changes and
those are like investors, Govt. , technology and many others who can directly put an
impact on them.
PESTLE Analysis Political – In this context, it is vital for organisations to keep on looking at every single
political aspect at the time of adapting changes. Because, they may put both positive and
negative impact on leaders decisions.
 Economical – This element plays an important role while making alterations.
Modifications in taxes may lead organisation to make changes in prices of products.
 Social – Consumers are part of society. Thus, their perceptions for company plays an
essential part. Their taste may lead organisation to make modification in their products.
 Technological – It has been found that marketplace is dynamic in nature. Hence, it is
vital for Starbucks to adapt all the changes that are coming in technology which leads
them to advantages in context of competition.
Linkage of leadership with drivers of changes:
When there is presence of needed skills and knowledge, then becoming a leader becomes
easy and even the possibilities enhances of becoming one. It is highly essential for a leader to

identify and study the nature of an organisation so that skills can be applied for making the
changes.
It is very important for a leader to have the certain skills and abilities according to the
various plans and strategies which can be adopted for making the target attained (McLaughlin,
Afsar-manesh and Martin, 2013). This in turn provides assistance in availing various
kind of advantages for an organisation.
Leadership goals and motive:
There are number of leadership objectives which are being described below:
Direction: Team is being directed by a leader and other members so that effective guidance
which can be provided for various kind of purposes and thus error chances can be minimised.
Control: It is highly essential for monitoring up of enhancing the performance level of the
company.
Authority: There are various roles and responsibilities which are being allocated to the leader
along with the power for effective and appropriate guidance which can be issued by the team
members.
Influence: There are many times when the company faces adverse types of situations and thus
effective appropriate guidance which is being needed, so the leader should have various kind of
abilities to handle this kind of situations. This entire factors can be attained by the help of various
theories for attaining the objectives.
M1
Coordinate effects can be seen of hierarchical exercises and different tasks because of
number of drivers and most fundamental among those are inward and outwards. These can be
clarified by the expounding as culture of an association, workers, administration, contenders ,
Govt. also, numerous other people who assume efficacious part in accomplishment of an
association (O'Connor, 2015).
M2
It is highly essential for a firm to adopt the concept of change management so that
various changes which are highly needed within the environment can take place. Kotter's
changes can be applied in this type of scene so that up-gradation can be applied for the
performance level of an organisation.

D1
There are various particular strategies and plans which are being made and in order to
make them much more effective, it is very important to analyse them in deep manner for the
modifications within the process of company. Training and development sessions are given to
staff members so they can have knowledge and confidence for dealing with outside environment.
P3 Evaluate how to minimize negative impact of change on organisation
Within the factors of organisational change, there is high risk which is being involved
and this can directly have the impact on the culture and framework of the company. For
Starbucks, sectors are being appointed who have potential to focus on resolving the issues and
along with that take care of the risk factors which are being involved. There are certain new and
innovative methods which are being enforced and thus they can even have the negative impacts
and those are described below:
Employee resistance:
When there are changes which are being done within the company then it directly affect
its structure and this is a proved fact. Company mainly utilise the traditional process while
conduction of process (Reiman and Pietikäinen, 2012). Best example can be taken up of
applying up the artificial intelligence inj the records regulation and data of manufacturing
process which can be happened within certain elements in apprehending up of system.
Expenses:
There are various modifications which are required and in order to make it successful,
essential element like Innovation is being needed so that it can be implemented within Starbucks.
Arranging large amount is an easy task for a large scale company from the investors while it
becomes difficult for the small scale industries as they faces many types of obstacles for
applying those changes. It is necessary to do the financial planning so that high costing within
process can be minimised. There are many options regarding the finance which are analysed by
the managers and leaders and therefore opting the best suitable for meeting needs.
Lack of Support and failure:
There are various situations which mainly occur due to miscommunication and lack of
exchange of essential information. This in turn can be the cause of various changes within the
nature and environment of an organisation and staff members. This needs to be ensured by the
managers and other leaders that everything should be stayed at the places they were (Robert,

Tilley and Petersen, 2014). There are some tactics which needs to be learned by staff
members for uplifting the performance level of certain tasks and activities along with the
changes which should take place within the company.
Morale:
There are various factors which are being considered as human nature like confidence
level, skills and willingness for attaining up of aims and objectives of the firm within the given
period of time. There is time when situation arises where the confidence and morale level of an
employee gets low while working within workplace and this in turn can hinder the ratios of
productivity and profitability. Various modifications can be done which are required by the firm
for adopting in the favourable circumstances. The most essential duty of management team is
that it provides effective communication channels for exchanging up of data and other vital
elements and most of all it helps in getting company as flexible in nature.
TASK 2
P4 Barriers which effect the change and affect leadership decision making strategies
The principle focal point of leadership and administration stays compelling and proficient
while directing the activities. Points and destinations of firm can be accomplished by the leader
as it is their fundamental duty to accomplish goals. There are compelling plans and procedures
which are being expected to figure keeping in mind the end goal to settle on powerful procedure
of basic leadership. In Starbucks, different number of components which are being available for
influencing authority and basic leadership process.
There is a sector within the Starbucks which can be taken as example and that sector
mainly focuses on formulating up of innovative strategies regarding the marketing. There are
number of components which should be kept in mind while conducting the decision-making
process and thus allocating them roles and responsibilities. There are team members who mainly
look out for having the various point of view and thus there will be many option and out of that
bet suitable one can be taken (Shirey, 2011). The main cause is the change management
behind the number of effects within a company and thus it directly affects the various sections
like sales, finance, operational, production, administration and many others. There are many
factors which are being present along with the factors of complexity, performance level of an
employee can be fluctuated while applying those changes.

There are various number of factors which are required like sound knowledge, awareness
and vital data in order to formulate the structure of change management and thus provide the
support to company. It is very important for the leader and the company for adopting the number
of changes like latest technologies and other various techniques and tools for making the
environment of company much more effective and dynamic in nature. In this scenario, leaders
and managers of the company mainly seek out for performance level of workers and thus
monitoring them to increase the set of skills and knowledge for attaining up of objectives. There
are number of tactics which are being adopted for dealing out with various kinds of situations.
Hence, leaders and administration of Costa Coffee and Starbucks counters issues regrading time
consuming process of operations applying due to lack of high experienced employees. Barriers to
change and their impact are mainly Government, Employees and Environment.
M3
There are various obstacles which are being followed specially while taking the
leadership for modifications and other various changes in factors. There are many reason behind
the obstacles and they are low discipline, self confidence, poor communication, high cost,
impulsiveness and many others. There are many factors which have capability of hampering the
productivity and profitability in negative manner (Zhu, Devos and Li, 2011). Through an
example it can be stated that it is highly effective to launch communication channels else vital
data will not be shared among the employees and thus will effect the future decision-making
process.
D2
For determining the performance stage of employees, force field is being minimised in
order to make the actual skills and abilities which can be determined for certain changes.
Training is being provided to they staff members for enhancing the skills and abilities so that
aims and objectives of the firm in smooth manner.
TASK 3
P5 Application of suitable leadership style in organisational context
According to the business process, there are number of leadership theories which are
being implemented. There are various tools and techniques which are being adopted by the
Starbucks with various effective styles as this is a coffee Industry and this in turn will directly

lead to effective management and along with that completion of aims and objectives (Different
type of leadership styles, 2017).
(Source: Leadership Styles, 2017) Autocratic- In this kind of approach, leadership is being performed by gathering our
feedbacks and surveys from the employees and other members of company. Democratic- This kind of leadership theory can be adopted for leading and promoting
the company and along with that participation scope and feasibility to people. Employees
have platform of chances within Starbucks in order to uplift themselves and polish their
level of skills along with knowledge and thus it can be shown them within the future in a
company. Laissez Faire – In this type of factor, there are various kinds of fundamentals which can
be applied specially for an individual. There are various rights which are being provided
for choosing the appropriate ways so that number of tactics which can be applied along
with methodologies so that it can be ensured that balancing is being done along with the
process which should be conducted in smooth manner (Colcleugh, 2013). Transformational: In this kind of approach, there are various kind of skills which are
being possessed by a leader so that modifications can be done along with the goals and
objectives of the company can be structured. Guidance can be provided along with some
creative and innovative ideas along with thoughts. Strong relations can be maintained
with employees and thus it can provide flexibility to Starbucks.

 Transactional: The main focus of this type of leadership style is on maintaining the
healthy relations with employees. There are various tools and techniques which are being
utilised specially when the strategies are being formulated along with policies like
appreciation, rewards and recognisance, promotions and positioning. Leadership and
management skills are the perfect combination.
M4
There are number of leadership styles which are being utilised by the company according
to the situation and those styles are Autocratic, Democratic, Laissez Fair, transactional and
transnational. This provide guidance to the managers for creating such kind of environment
where high level of performance can be given by employees and thus objectives can be attained.
D3
If there are some modifications which are being adopted by the managers for the
activities and other operations of business, there is high need of adopting various plans and
policies along with leadership styles. Company needs to apply change management which are
like Kotter's Model of change so that process of business can be managed in effectual and
systematic manner.

CONCLUSION
From the above report, it can be concluded that changes are highly essential element for a
business process in order to avail the benefits. here are other factors which has direct impact on
operations which are being conducted and those factors are internal and external drivers which
can help in attaining aims and objectives of firm in an efficient and effective manner.

REFERENCES
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Online
Different type of leadership styles, 2017. [Online] Availavle
through<https://www.pinterest.com/pin/486670303463675723/>