Understanding and Leading Change

Understanding and Leading
Change

Contents
INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Impact of change on operations and strategy................................................................................3
P2 Evaluation of ways in which change drivers influence leadership and behaviour........................4
P3 Measures to minimize adverse impact of change..........................................................................6
TASK 2.................................................................................................................................................7
P4 Barriers for change and determination of their impact on leadership decision making.................7
TASK 3.................................................................................................................................................7
P5 Range of Leadership Approaches to a Change Initiative..............................................................7
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................10

INTRODUCTION
Change is a process which is necessary for every company in order to grow and
sustain in competitive market. Surroundings of business is dynamic and it highly influence
the operations of firm. So, organisations need to adopt changes on continuous basis in order
to ensure its sustainability (Aslan and Reigeluth, 2013). This assists in accomplishing targets
and objectives in effective way. Change is crucial for organisations for exploring
opportunities and satisfying needs of customers. Without alterations business lose its
competency and fail to fulfil needs of their loyal customer base. In the present report, chosen
company is Starbucks and Costa coffee which provide coffee products to customers. The
assignment includes change drivers and their influence on strategies and operations of the
organisation. It also involves various measures that a firm take for reducing adverse impact of
alterations. Apart from this, barriers of change and the way in which they impact decisions of
leaders. At last, leadership approaches and its application to handle and deal effectively with
change is included in the project.
TASK 1
P1 Impact of change on operations and strategy
Organisational change refers to the process related to reviewing and altering business
processes and management structures. In it, firms going through a change or transformation.
It occurs when strategies of business or major sections of company are altered. It is the
process aimed at assisting workforce to understand, commit, adopt and embrace changes in
existing business surroundings. Perception and position of employees directly influence the
bottom line. Unfavourable perceptions related to taken decisions can spread quickly
throughout the organisation as workforce gossip. It negatively influences the morale and
affects productivity. Though it can be challenging to alter perceptions, these changes can be
attaining through persistence. Administrators of small enterprises should actively take actions
to change the beliefs of misguided employees so that workforce understand the reasons
behind organisation’s actions (Clarke and Persaud, 2011).
.
Positive influence of change:
 Increase in confidence level of employees
 Provide competitive advantage to firm over rivals in market.
 Provide growth and sustainability to firm.
 Creates dynamic atmosphere within organisation.
Negative influence of change:
 Lack of support & failure.
 Employee resistance.
 Results in high expenses.
 Inability to handle change may lower down morale of employees.
Types of organisational change:

Organisation wide change: It is a large scale change that influence the overall company
structure. This tends to entail restructuring, resizing of any form or collaboration. It is
basically a step to change nature of organisation (Doppelt, 2017).
.
Transformational change: It is necessary for organisations to continuously examine
its underlying strategies. A firm should be in touch with surroundings around them. It
involves understanding social climates, cultural trends, clued up on advancements related to
technology.
Personnel change: It occurs when firm undergoes mass layoffs or hiring. This
obliges a shift in organisational processes and culture.
Unplanned change: Amidst planned strategies and endless data analysis, a firm can
undergo various unplanned changes. Sometimes, drastic then planned one. These changes
may have introduced in unplanned way in response to alterations in demographic
composition.
Starbucks and Costa Coffee are the two well-known coffee houses which undergoes
change. They execute alterations in their business structure and processes in order to attract
large group of customers and retain them for longer period of time. Some changes that affect
their operations and strategies are as follows:
Change in Starbucks:
Starbucks undergo strategical and technological changes. In existing competitive
market, the strategies of company focuses to target on the customers of every income
segment. They are not paying attention to premium segment but now, they alter strategy and
emphasize on this segment of customers. They also focus and move towards expansion of
business in distinct parts of the world. They open their outlets in those countries which are
developing as they are aware about unorganised market potential. It is undoubtedly a positive
strategy which is beneficial for the company as it provides cost advantages to the Starbucks.
Firm is not using penetration strategy as it is unsuitable for premium segment.
In terms of technological changes, company believes in making use of high
technology machineries in order to make coffee. It is a crucial part of operations of
organisation. Currently, firm focus on updating its digital platform. Many new technologies
are adopted by the firm in producing coffee or other goods. Adoption of this technology is
not considered in long term plan of the firm earlier. But now, because of speedy changes in
technology, digital platform is used by them for promoting their goods and brand name
(Fullan, 2014).
Change in Costa Coffee:
Recently, because of Brexit, drastic changes are made which influence strategies,
operations and growth of Costa Coffee. One other factor that force the enterprise to make
alterations in working is increment in national living wage. The company known for its
expansion but because of exiting of European union the business of Costa Coffee is highly
influenced and enforce them to change their strategy. Various laws and regulations needs to
be followed by the company in upcoming time. Various legal troubles are faced by them in