Change Management Strategies: Starbucks and Costa Coffee Analysis

This report provides a comprehensive analysis of change management strategies, focusing on the case studies of Starbucks and Costa Coffee. It begins by comparing the operational strategies of both companies after adopting changes, examining aspects like competency, pricing, promotional strategies, and processes. The report then delves into the internal and external drivers of change, evaluating their impact on teams, individuals, and leadership. It also explores measures taken to minimize the negative effects of change on organizational behavior. Furthermore, the report investigates different change barriers and the influence of leadership decision-making, utilizing force field analyses to analyze driving and resisting forces. Finally, it examines various leadership approaches that effectively deal with change, critically evaluating their effectiveness and offering recommendations for successful change implementation. The report highlights the importance of proactive approaches, including overcoming resistance, engaging employees, and effective communication, to ensure successful organizational change.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................2
P1) Comparison between different organisational operational strategies after adopting
changes........................................................................................................................................2
P2) Internal and External drivers of change affecting team, individual and leadership.............4
P3 Measures taken to minimise the impact of change on organisational behaviour...................5
M1 Different Drivers for change ................................................................................................7
M2 Models and theories in response to change..........................................................................7
D1 Conclusion and Recommendation related with change impact analysis...............................8
TASK 2 ...........................................................................................................................................8
P4) State different change barriers & determine the influence of leadership decision-making .8
M3 Force analyses to analysing the driving and resisting forces. ............................................10
D2 The use of force field analyses ..........................................................................................10
TASK 3 ........................................................................................................................................11
P5 Application of various leadership approaches that effectively deals with change..............11
M4 Evaluate the impact of leadership approaches ...................................................................12
D3 Critically evaluate the effectiveness of leadership approaches...........................................13
CONCLUSION .............................................................................................................................13
REFRENCES...................................................................................................................................1

INTRODUCTION
In this modern scenario the major purpose of each business organisation is to sustaining
high position at market place. This create value in companies growth and success at market place
(Ballester and et. al., 2015). Change is important for each small as well as large business
organisation as to gaining competitive edge at market area as the competition is so high and
organisations are concern on satisfying the needs and wants of people. The taste and preference
of customers are change due to alteration arises in market trend. In this competitive market it is
required for each business organisation to conduct their business operations in flexible
environment as it is effective in smooth function of firm and its activities. Starbucks and Costs
are the chosen company for this particular report. The two companies are multinational
organisations which deals in high quality coffee products across the world. The major focused
area of firm is to gaining attention of large number of people towards their products and services.
This report contents the study about comparison among different firms where there has been an
impact of change on an organisation's operation and strategy, various ways in which internal as
well as external elements affects leadership, teams and behaviour of an individual within an
organisation, various measures that are used by firm as to reducing negative impacts of change
on organisational behaviour, different barriers for change, various approaches of leadership
which is useful in deliver organisational change are discussed in detailed manner.
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TASK 1
P1) Comparison between different organisational operational strategies after adopting changes.
In this competitive era it is necessary for each business organisation to implement change
as per the change arises in market trend. The term change plays an effective role in achieving
high profit and revenue at market place. Change has direct or indirect influence on functioning
and performance of an organisation (Breen and et. al., 2016). Change is inevitable because the
environment in which a company prevail is dynamic in nature and is continuously changing. The
changes in environment can take place in various forms like a change in
leadership,technology,customers preferences and demands the prevailing trends etc. These
changes have a direct effect on workings of the organization and management have to modify
and review its business processes and structure accordingly. If an organization resist such change
and does not act upon it,The organization may end up in loosing its market share,the relevance of
its goods and services etc.
STARBUCKS: It is an American coffee house chain and company. It was founded in
Seattle,Washington in 1971. the company is operating right now in more that 27,300 locations
worldwide (Calhoun and Tedeschi, 2014). Its locations serves Various drinks like hot and cold
drinks,whole bean coffee,micro ground instant coffee are some of the examples of the products
offered by Starbucks along with various beverages it also offers various types of
cookies,smoothies etc. on its stores.
COSTA COFFE: It is a British multinational coffee house company which has its headquarter in
Dunstable,Bedfordshire. It is a wholly owned subsidiary of Whitbread. The company is just
behind Starbucks in terms of total business and locations. It was Founded in 1971 by the costa
family as a whole sale operation supplying roasted coffee to caterers and specialist Italian coffee
shops.
Strategies Costa Coffee Starbucks
Competency
based Strategies
Costa coffee was reluctant to make
products which are as per the
customer demand and it resulted in
loss of loyal consumers. Afterwards
company started focusing on
Starbucks emphasize from its inception
in meeting with consumers demands
and needs and making adjustments in
their products accordingly. The main
aim of the company has been to satisfy
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innovation and living up to the
expectations of consumers and
making products according to their
need and demands (Chen and et. al.,
2011, August).
consumers in an effective and efficient
manner. For Instance, The company it
has recently updated their menu in
terms of adding new drinks like
freebie, ombre pink drink etc.
Pricing
Strategies
Costa coffee believes in providing
premium range services to its
consumers. This has been the USP
of costa coffee they delivers high
quality coffee and posses high brand
value in the market. They also offers
discounts to loyal customers.
It is observed that after creating a brand
value and reputation in the market the
company tries to raise its pricing of
products in order to attain high
profitability but overtime it results in
loss of customers. Thus,after
considering all these points Starbucks
has redefined its strategy came up with
different pricing strategy which creates
value for buyers.
Promotional
strategies
Company does not believe too much
in promoting its products but due to
transformation taking place in the
market and changing habits and
needs of customers,The company, in
order to remain competitive have
created its own account on social
media platforms like Facebook and
Instagram to perform promotional
activities.
Before the company used to rely on
promotion through advertising,but the
company is now using social media
platforms to build long term
relationship with consumers (Clemons,
and et. al., 2016).
Process
Strategies
The company has redesigned its
business process in terms of
communication,presentation,behavi
our and hospitality in dealing with
consumers.
The company has redesigned its
process in order to meet the gap
between consumer's demand and
supply.
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P2) Internal and External drivers of change affecting team, individual and leadership.
Internal and external drivers can be considered as most essential element of firm which
has some positive as well as negative impact on the behaviour of team, leadership and individual
within an organisation. This significantly based on the organisation and action or reaction
towards the change (Cornish-Bowden and Cornish-Bowden, 2012). There are various internal as
well as external forces which has direct influence on the working ability and performance of an
individual, leaders and team member's. Impact of both internal and external factors are evaluated
as below:
Impact of Internal Drivers:
These can be considered as an events, situations and things that has direct influence on
internal environment of firm, these elements are managed by firm or its internal sources, some
essential internal drivers are evaluated as below: Technological Capacity: This is the most essential element in which changes are arise at
continuous level (Duffy and Jonassen, 2013). Competition is so high at market place and
each business concern in focused on implementing best and innovative tools as to
improving their productivity at market place. As a popular and large business
organisation Starbucks and COSTA are concern on adopting new and innovative tools as
to increasing their performance and productivity at market place. Innovative tools are
effective in shaping the functioning of organisation in a systematic manner. In respect to
effective utilisation of time leaders and higher authority of Starbucks take an effective
decision to take order through mobile app which helps in placing the order in given
period of time. This create value in gaining attention of customers. Employees Morale: In an organisation employees and staff member plays an effective
role in implementing their vast efforts in fulfilling the desired goals and objectives of
firm. Organisation and its managers are concern on encouraging their employees as to
developing their performance and productivity at market place. As a large business
enterprises the leaders of Starbucks provide various monetary and non-monetary benefits
to their employees as to encouraging them at work place. Organisational Culture: This consist as an most essential element which plays a crucial
role in overall development of firm. The organisational culture is based on the attitude
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and behaviour of individual, team members and leaders who are contributing their efforts
in attainment of organisational goals and objectives. Each business firm is concern on
creating positive working environment as it helps in enhancing the performance of
employees at work place. Leaders and managers plays effective role in establishing
coordination and cooperation among employees as to gaining higher results and
outcomes (Hernandez, 2016).
Impact of External Drivers:
These elements and situations are arises from outside environment of firm and has a huge
impact on external performance of firm, some essential elements of external forces are evaluated
as below: Economic Condition: In an organisation it is required for higher authority to maintain an
effective relationship with economic environment as it plays most significant role in
implementing all business operation in well planned manner. Company needs to maintain
their financial position as to facing any kind of issue relation with fluctuation and
recession in prices. This has direct influence on organisational operation. Competition: This can be considered as the most effective external element which has a
direct influence on the performance and productivity of firm. In this modern era
competition is so high at market place and the major objective of firm is to attaining
competitive edge as to giving competition to their rivals (Lagrange and et. al ., 2016).
Competitors create issue for firm through applying various new tools and techniques at
work place so that customers can attract towards the other organisation as to satisfying
their needs and wants.
 Political Factor: The influences of political factors has a huge impact on development of
firm. These can be arises in the form of government policies, tax or tariff policy, political
stability etc. Brexit create political instability in UK which impact on the entire operation
of Costa Coffee either in positive or in negative manner.
P3 Measures taken to minimise the impact of change on organisational behaviour
The changes which are implemented in suitable manner, then their outcome will be
perfect. If the same are not implemented in effective manner then it leads to disastrous outcome.
Organisation which are efficient in handling the change effectively can lead to higher
competition rate and success. For successful implementation of changes in the business practices
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both Starbucks and Costa coffee are suppose to inculcate with proactive approach that are mainly
divided into four steps: Overcoming resistance: This stage is concerned with the interaction of the company
with the workforce. It aims at making the worker aware about the need and purpose
behind the change. The customer have to wait for long time in order to place an order of
Starbucks company. For attaining the target and objectives of the company, management
decided to design a mobile application which will help the consumer to place an order in
advance. Company also makes strong effort in training and development of its
employees. Engaging Employees: Employees are the one who brought higher productivity and
revenues for the company. The main aim of the concern business is to promote and help
their employees in process of modification as they are the one who apply the changes
and yield higher output in comparison to its competitors. Implementing changes in phase: This stage divided into three phases which are as
follows :
Prepare for change: The strategies of both the companies are related to change in designing
their strategies for proper management of their processes. It also give clear context of
responsibility and the specific role which is carried out by employees and employers.
 Manage the Changes: This stage is concerned with healthy relationship and better
communication channel and operations that tends to manage the change in systematic
manner.
 Reinforce the change: This stage concern with the collection of feedback and applying
restorative measures where necessary.
 Employee resistance: This approach coined as an universal truth, which means when
company made some changes which is related to certain structure of the company. It will
affect the employees directly. The changes ,if implemented within the organization in an
effective manner the outcome will be Better,if on the other hand,It is not implemented
properly the Results could be disastrous. Organisation which are efficient in handling the
change effectively can lead to higher competition rate and success. For successful
implementation of changes in the business practices both Starbucks and Costa coffee are
suppose to inculcate with proactive approach.
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 Engaging Employees: Employees are the one who brought higher productivity and
revenues for the company. The main aim of the concerned business is to prosecute their
employees in process of modification as they are the one who are apply the change
changes and yield higher output in comparison to its competitors.
 Communicating the change: according to the scrutiny, it is assumed that if company fails
to inform worker about change, resulting wrongful conduct made by employee has
increased by 42%. It is necessary to have two-way communication which give assurance
of success when organisation implement any change.
M1 Different Drivers for change
There are various factors which can be termed as the drivers for change. Most crucial
among them are government,management,employees,competitors etc. They prevails in the
Environment and are the most important element of it. These plays an important role in efficient
and effective workings of the organization. There are various changes within the organization
which got affected by by those change drivers these changes are in terms of productivity and
profitability. The impact of these factors and the changes adopted by the organization to
overcome those factors adversely affects the business operation and performance. Management
should do proper analysis and should be vigilant of its environment both external and internal
from time to time in order to stay competitive and relevant in the market.
M2 Models and theories in response to change.
Different companies responds to change in different manner and uses different approach
to deal with such change one of such approach is Proactive approach Which includes 4 major
steps overcoming resistance,employee engagement,implementing change in phase and
communicating change. The other approach is reactive which basically means reacting to the
changes that has taken place in the environment and it involves analysis and evaluation of the
change and implementation of the same within the organization. The barriers within the
organization needs to be removed and policies and procedures incorporating new changes should
be implemented along with the consent and help of the staff management of the organization.
The company should also perform a swot analysis of itself from time to time in order to asses its
internal strength and weaknesses with external opportunities and threats,This allows organization
to check where they lack and and where they need to improve.
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D1 Conclusion and Recommendation related with change impact analysis
When an organisation do modification in certain policies and strategies formulation
concerned with the probability of two aspects such as whether the changes made by an
organisation are implemented properly and organisation are able to handle those changes
effectively. Employees are able to adjust themselves according to the changes made, that leads
to productive result. Concern with another aspects it led to disastrous results. Organisation
should conduct various training programme before implementation of strategies and policies
which would enable the employees to deal effectively with both internal and external change
drivers. Organisation should formulate all activities in modification process and company should
recognise the area where modification can be applied. Organisation should analyse deep research
for the modification process in which area it is required. Organisation can implement those
modification into small area of the organisation and after that it should be done at mass level. So
there is no chance of any misbehaving activity from the employees working within the
organisation. Because before implementation of modification organisation should provide better
training and development session to the employee. Employee are able to attain modification
process in effective and efficient manner.
TASK 2
P4) State different change barriers & determine the influence of leadership decision-making
Starbucks uses Force field analysis in taking their decision with regards to change in the
organization. This analysis was created by Kurt Lewin in the 1940's. Lewin originally used it in
his work as a social psychologist. The idea behind force field analysis is that situations are
maintained by an equilibrium between forces that drive change and others that resist change. For
change the driving forces must be strengthened or the resisting forces weakened. Following are
the steps in the analysis :
Step 1: Defining Goal or vision for change and writing it down on the page
Step2: Finding about the kinds of forces that are driving change. These can be Internal and
External. Internal drivers include :
 Outdated machinery or product lines
 declining team morale
 a need to increase profitability
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External Drivers may include:
 A volatile,uncertain operating environmental
 Disruptive technologies
 changing demographic trends
Step 3: Identify Forces against change
Internal resistors or restrainers could include:
 Fears of the Unknown
 Existing Organizational structure
External factors might be:
 Existing commitments to partner organizations
 Government legislations
 Obligations towards your customer.
Step 4: Assign scores
Next step is to score each force from one to five where 1 is weak and 5 is
strong,according to the degree of influence each one has on the plan,and then add up the scores
for each side (Leiceaga and et. al., 2015).
Step 5: Analyse and apply
Now after the forcefield analysis it can be used in 2 ways
 To decide whether or not to move forward with the decision or change.
 To think about which supportive forces can be strengthen and which opposing or
resisting forces can be weaken.
Barriers to change and their Impact : Lack of Employee involvement: This is the most common barrier to change
management. Employees always have the fear of change,and unless they are involved in
the change process,it is highly likely that even the most loyal member among the
employees will resist the change. Proper involvement of employees in the change is
crucial before making any transformation within the organization,otherwise it may lead to
higher labour turnover. Lack of communication strategy: Some organizations have no effective communication
strategy,Some leaders and managers thinks that once they will announce the change
people will be liable to change and will adjust according to them. They should
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communicate well with the employees before bringing any change within the
organization. Government: Stringent laws and regulations might affect the workings of the
organization and plays an important role in the development of businesses within the
country. For example,laws related to export and import which are framed by the
government can adversely affect the workings of the company and may force company to
bring necessary change in the organization.
 Environment: Political and economical stability is also one of the major causes which
affected Starbucks and forced company to accept changes. The purchasing power of
customers gets affected by these factors which affects company's growth and profitability
(Váscones-Gatski, 2015). A stable and healthy political and economic environment is
very crucial for effective and efficient working of the organization and for a prosperous
growth of the businesses within the economy.
M3 Force analyses to analysing the driving and resisting forces.
Force field analysis is a development in social science. It Provides a framework for looking at
the factors that influence a situation. It looks at forces that are either driving movement toward a
goal or blocking movement toward a goal. This principle is developed by Kurt Lewin. The idea
behind forcefield analysis is situations are maintained by an equilibrium between forces that
drive change and others that resist change. For change the driving forces must be strengthened or
the resisting forces weakened. The steps involves are Defining goal or vision,finding about kind
of forces that drives change,Identify forces against change,assign scores,analyse and apply.
D2 The use of force field analyses
 By using force field analysis change management tool early in the change management
process it helps us to weigh up the 'for's and against' and the importance of these factors
to decide whether a plan is worth implementing.
 It benefits company by helping them identify challenges that lie ahead so that it can plan
to strengthen the forces supporting the decision and take the necessary steps to reduce or
eliminate the forces opposing it.
 Doing a force field analysis helps to provide an idea of the timeline required,and
additional resource requirements that may be necessary to drive the project through
completion.
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