Leading Change: Impact on Strategies and Organizational Behavior

This report examines change management within the context of two major players in the food and beverage industry: Coca-Cola and Pepsi. It delves into the impact of change on the strategies and operations of these organizations, highlighting how internal and external factors, such as market trends, customer preferences, and technological advancements, influence their business models. The report explores the influence of these change drivers on leadership and individual behavior within the companies, analyzing how leaders navigate these dynamic environments. Furthermore, it outlines the measures taken by Coca-Cola and Pepsi to mitigate the negative effects of change on organizational behavior, including strategies to adapt to shifting market demands and maintain employee engagement. The report also identifies barriers to change and assesses the application of various leadership approaches in managing these transitions, providing a comprehensive overview of how these companies adapt and thrive in a competitive market.

Understanding & Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1. Impact of change on strategies and operations of organisation ......................................1
P2 Influence of internal & external change drivers on leadership and behaviour of individuals
................................................................................................................................................4
P3 Measures taken to minimize negative influence of change on behaviour of organisation 6
TASK 2 ...........................................................................................................................................7
P4 Barriers to change and its influence on leadership decision making................................7
TASK 3 ..........................................................................................................................................8
P5 Application of various approaches of leadership to manage change ...............................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Changes are necessary for growth and sustainability of every business enterprise in
today’s competitive market. Understanding and leading change is an important aspect and an
organisation needs to keep in view all the changes that takes place in market and adopt them in
order to gain competitive advantage over competitors (Aslan and Reigeluth, 2013). It is also
necessary for employees of company to adapt these alterations and work in an effective manner
in order to attain objectives and targets of firm. As the business environment is dynamic, various
changes take place in internal as well as external surroundings of firm that directly affect the
decisions of manager. It is required by the administrator to accept these unpredictable changes
and formulate suitable strategies so that risks and uncertainties can be reduced. In the present
assignment, chosen organisations are Pepsi and Coca Cola that deals in food and beverage sector.
Report includes impact of changes on strategies and operations of firm as well as influence of
change drivers on leadership and behaviour of individuals. Apart from this, various measures
taken for reducing the negative effect of changes on organisational behaviour are also defined.
At last, barriers to change and application of various leadership approaches to deal with these
alterations are included in the project.
TASK 1
P1. Impact of change on strategies and operations of organisation
Business environment is dynamic as so many changes occur in the surroundings of firm.
Various internal and external forces influence the working of organisation. It also affects the
structure as well as strategies of business. Factors that exist in firm's surroundings are
responsible for change as these are the main drivers. These involve technology, suppliers,
customers, stakeholders, competitors, market, government laws and policies, social, cultural,
economic as well as political and legal factors (Booth, Wade and Walker, 2014). All these
elements highly affect the activities and operations of organisation. For smooth functioning of
business, it is required by the firm to understand these changes and adopt them in an effective
manner so that growth and sustainability of firm can be ensured. Adaptability to change
administers various opportunities to organisation regarding increase in market share, gaining
customer attention, managing strong and healthy relations with consumers, etc. So, for Coca
Cola and Pepsi, it is essential to identify the change and adapt with them by executing effective
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strategic plans and strategies. There are various reasons that encourage organisations to execute
changes in its activities, processes and operations. These are mentioned as below:
 In order to gain advantage in market over competitors by understanding and adopting
change (Carrington, Deppeler and Moss, 2010).
 For attaining and maintaining a strong position of company in market by gaining
customer attraction towards brand and attracting their loyalty.
 For promoting innovation and creativity among workforce by enhancing performance of
different departments of firm.
 To satisfy needs and desires of customers by offering them good quality of products and
services.
 For improving processes and operations of firm in order to manufacture high quality
products and services.
Both; Coca Cola as well as Pepsi operate business in all over the world and adapt
various changes in their strategies, activities and operations whenever needed. Overview of both
the organisations is defined as below:
Coca Cola: Company deals in beverages and offer soft drink products to the customers
worldwide. Various types of drinks are provided by the firm namely, Caffeine Free Drink, Coca
Cola zero, Diet Coke and many others. Company serves more than 200 countries & around 1.8
million drinks are consumed by people everyday. Firm's brand value is high and is very popular
among customers. Pepsi is one of the main competitors and this forces management to adopt and
implement various changes in its processes and operations.
Pepsi: It is a multinational organisation that offers soft drinks, foods products and snacks.
Headquarter of company is located in New York and serve its products worldwide. Different
variants of Pepsi include Vanilla, Diet, Crystal and Zero Sugar Soft Drinks. In order to compete
and sustain in market, various strategies are formulated and changes are adopted by the
organisation (Doppelt, 2017).
For maintaining a strong position in market and accomplish business targets and
objectives, Coca Cola and Pepsi adapt changes and implement strategies to grow and expand
business in various countries.
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Strategies Coca Cola Pepsi
Pricing
strategies
Coca Cola is a multinational company
that operate all over the world. The
firm has a strong position in market
and want to maintain it by providing
high quality products to customers.
Different variety of soft drinks are
provided by company in order to
satisfy the customer needs (Fullan,
2014). Pricing is an important factor in
this that highly influences sales and
profits of organisation. For this, it is
crucial to know the willingness of
buyer to pay for that particular product.
By understanding this, firm is able to
adopt appropriate pricing strategy.
Coca Cola adopts economic price
policy and set reasonable prices for
drinks. It helps the organisation to gain
competitive advantage and retain its
place in market.
Pepsi also offers same products as that
of Coca Cola and deals in same sector.
For attracting a large group of
customers and attain high growth,
company changes their pricing
strategy and adopts competitive
pricing for setting the price of
products according to competitor's
product price. It helps the firm in
capturing a large market share with
attracting more customers.
Marketing
strategies
Effective strategies are designed by
company in order to enhance its profits
and sales. Various marketing strategies
are formulated by Coca Cola in order
to effectively promote brand and
communicate its value and benefits to
customers so that they can become
aware about different variants of soft
drinks. They use various tools of
Magazines, electronic and print media,
websites etc. are the different tools of
promotion that are used by Pepsi for
promoting its product in market in an
effective manner (Hrebiniak, 2013).
This helps in brand expansion and
enables company to reach at a large
number of people from various regions
of nation worldwide.
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promotion such as social media,
newspapers, advertisements, websites,
etc. Use of social media is beneficial
for company as it reduces the
promotional cost of firm and highly
contributes in attracting a large group
of youngsters.
Process The company operates in various
countries and perform its operations
there (Malenfant, 2010). Adoption of
new technology helps the firm in
improving its process of production
and enables them to produce high
quality goods in order to satisfy needs
and demands of customers in an
appropriate manner. They adopt online
way of ordering drinks which provide
benefits to customers as it saves their
time.
Pepsi offers its products to customers
by the assistance of various stores.
This helps company to interact with
consumers directly and managing
healthy relations with them. This also
assists in influencing the buying nature
of customers.
P2 Influence of internal & external change drivers on leadership and behaviour of individuals
Internal and external change drivers put influence on leadership and behaviour of
individuals and teams in both way; negative as well as positive. So, it is the duty of managers of
both the companies , Coca Cola and Pepsi to assess those change drivers which influence
organisation and employees performance (McLoughlin, 2011). Internal as well as external forces
highly influence the working and performance of organisation and their impact on business are
defined below:
Impact of internal factors:
Culture of firm: Organisational culture highly influence the behaviour of its employees.
So, it is important for the administrator of Pepsi and Coca Cola to identify difference in culture
and maintain & provide healthy culture to employees within business enterprise so that stay
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happy and motivated and able to work in better and effective way. It is also necessary to adopt
appropriate policies and strategies that assists in keeping high morale of workforce.
Customers: Consumers are considered to be an important part of organisation as they
highly contributes in its growth and success (Nahavandi, 2016). They plays important role in
maintaining sustainability of the company. So, it is important for administrators of bot the firms
to determine needs and demands of customers and produce products as per their demands in
order to satisfy these.
Managing funds: It is essential for the manager to manager the funds of business in
proper and effective manner so that all the operations of business can be run effectively and
smoothly. It is important to emphasize on proper management of funds so that smooth
functioning of business can be ensured.
Impact of external drivers:
Political factor: It involves tax rates, exchange rates, political stability, policies of
government etc. These components influence functioning of business and it is important for
manager to consider all these factors as these influence their leadership quality and motivation
level which may hamper growth of teams and individuals. Various regulations and policies made
by government also influence soft drink prices of company.
Economic factors: These factors lowers down the capacity of enterprise as the activities
of business are influenced by this force. These includes unemployment, recession, exchange
rates, inflation, currency rates etc. Economic condition of country and enterprise functions are
interrelated with each other and influence the working of business (NHS England, 2016).
Social factors: This force impact demand of customer for cold drinks. It includes culture,
religion, age, lifestyle, income etc. Coca Cola and Pepsi supply their products in various
countries that relates with culture. Products are manufactured by company as per their needs and
preferences. Sugar free drinks are also provided by the firm by keeping in view good health of
customers.
Technological factors: Introduction of new technology or any change that takes place
related to technology impact the strategies and operations of firm. These factors affect behaviour
and leadership of individuals as various difficulties are face by business in adopting any change.
Both the organisations, Coca Cola and Pepsi use high technology processes and machinery so
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that hygienic and high quality products can be prepared. Social media is used by the company in
order to attract with their customers.
Above mentioned are all the change drivers that influence behaviour as well as leadership
of individuals and teams (Parsons and Cornett, 2011).
P3 Measures taken to minimize negative influence of change on behaviour of organisation
Various measures are taken by administration of Coca Cola and Pepsi so that negative
impact of change can be reduced. For this, different theories are adopted by company that helps
in identifying results of change. It provides some measures to management that helps them in
reducing its negative impact on performance and behaviour of individuals and organisation.
These theories acts as remedial measures that helps the manager to lowed down adverse
influence of change behaviour of firm and its individuals. Some of these are defined below:
Continuous improvement model: This model helps in regular improvements products
and services of business by improving its operations and processes. This model is executed by
both the firms so that targets and objectives can be accomplish with effectiveness and efficiency
Mukherjee and et. al., 2012. For successful execution of this model, it is important to follow the
below defined cycle:
PDCA Cycle: For enhancing productivity and performance, Coca Cola and Pepsi used
this model. It includes 4 phases which are as follows:
Plan: This phase includes opportunity identification and plan formulation process so that
changes can be successfully bring in the organisation.
Do: In this phase, managers applied changes at small level within the firm. They apply
these in practices and policies of the company.
Check: In this stage, performance of firm is evaluated and results are determined. After
that, managers measures the performance with set standards that helps them in identifying results
of change due to its adaptivity (Pelling, 2010).
Act: If the implemented alteration helps in increasing growth and profitability of firm,
managers apply this at large level and identify results. If this method fails in reducing adverse
influence of change, then managers need to apply other methods in order to lower down its
impact on behaviour of company as well as its individuals.
System theory: This theory is effective in improving motivation level of employees and
encouraging them, to perform in better manner. It is used by managers of Pepsi and Coca cola in
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order to enhance performance of firm. It helps in building team work, super system and
organised leadership.
Bohner and Arnold change effect analysis theory: This model helps the managers of
company in lowering down the influence of change on organisational behaviour. It helps in
identifying results of change and taking effective measures in order to attain desired results.
Actual performance of the company is measured with standard performance (Suchman, Sluyter
and Williamson, 2011). This helps the administrator in developing proper plans and strategies
that renders direction to employees to adapt changes in effective manner and reduce its
influence. Application of this theory also helps the managers in determining risks that may arise
due to implementation of change within firm.
TASK 2
P4 Barriers to change and its influence on leadership decision making
Force field analysis:
This analysis helps the manager in assessing the pressure face by company during
adoption of change. It depicts balance between the forces that drive and resist change.
Phase 1: Proposal for change
This phase includes the process in which objectives and targets related to adaptability of
change in firm is set.
Phase 2: Determination of change forces
It includes the process in which all those factors that are being the reason of bringing
change is determined (van der Voet, Kuipers and Groeneveld, 2015). It involves both internal
and external change drivers.
Outdated machinery.
Low morale of manpower.
Phase 3: Identification of forces against change
This involves those elements that restricts the organisation to introduce change. It consist
of:
Fear of unknown.
Government legislations.
Phase 4: Assigning of sources
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In this phase, each factor is rated on 1 to 5 scale on the basis of strengths and weaknesses.
It facilitates the firm in determining those components which put high influence on
implementing change (Yoder-Wise, 2014).
Phase 5: Evaluation and execution
Under this, various factors and their influence on organisation is assessed. It supports the
company in effective execution of change and accomplishment of desired results.
Barriers to change and its impact:
There are various barriers that exists in Coca Cola within its business surroundings that
restricts adaptability of change and influence decisions of leaders. There are various barriers that
reduce the firm's ability to improve performance and expand enterprise business operations. It
hampers the capability of firm to gain advantages in competitive market. Some barriers are
defined below:
Government: It is necessary for the organisation to adhere all the regulations and laws
made by government in activities and operations of the firm. Sometimes, these barriers restricts
the firm to introduce change within the organisation. These also influence the decisions of
leaders and working of firm (Understanding and Leading Change, 2017). Laws and regulations
by government restricts in changing processes of the company.
Employees: These are the major barrier that is confront by company as employees are not
ready to adapt with changes . They are not ready to adopt change and it restricts the manager in
taking decisions related to operations & activities.
Environment: Surroundings of work place influence influence the decisions of
administrators. If environment within organisation is not good , it in turn results in demotivation
among employees and may leads towards declining performance.
TASK 3
P5 Application of various approaches of leadership to manage change
There are various leadership theories that are used by administrators in order to enhance
performance of firm as well as its employees. It facilitates in increasing skills and ability to deal
with changes in effective manner. Some approaches are as follows:
Situational leadership: According to this theory, it is important for leader to adopt
leadership style as per the situation. Leaders should adapt style to administer guidance to staff
members so that effective working can be performed. It is essential to alter strategies on ongoing
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basis so that changing expectations of manpower in different situations that occurs in the
organisation can be meet (Aslan and Reigeluth, 2013).
Transactional leadership: This approach facilitates in controlling flow of functions
within organisation so that effective performance can be ensured. In transactional leadership,
managers promote compliance by employees by rewards and punishments. Individuals with this
style are looking for keeping things same instead of looking for change. It is effective in
emergency situation.
Transformational leadership: In this approach, motivation and morality of both leaders
and followers are high. The model is related with integrity as well as fairness that assists the
administrators in setting clear objectives. It encourage individuals, provide them recognition and
support, stir their emotions & inspire them to achieve goal.
Application of approaches in Coca Cola:
Two leadership approaches are adopted by firm which are mentioned below:
Situational: This approach can be adopted by manager in every situation as it is flexible.
It facilitates the administrators of Coca Cola in designing suitable strategies. It is appropriate in
introducing new change within organisation (Pelling, 2010).
Transformational: Managers focuses on maintaining healthy relations among employer
and employee, team performance and coordination. In Coca Cola, it helps the administrators in
building effective teams.
CONCLUSION
As per the above mentioned report, it has been concluded that adoption and
implementation of change is important for every business enterprise. It is necessary to done this
on continuous basis in order to ensure growth and sustainability of firm. It helps in improving
performance and profitability of the company. Change administer various advantages and
opportunities to organisation and provide it competitive edge over competitors. There are various
barriers that a firm face at the time of adopting changes. It influence the decision making of
leaders and behaviour of individuals as well as teams.
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REFERENCES
Books and Journals
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rebellion, and change. Westview Press.
Carrington, S., Deppeler, J. and Moss, J., 2010. Cultivating teachers' knowledge and skills for
leading change in schools. Australian journal of teacher education. 35(1). pp.1-13.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Hrebiniak, L.G., 2013. Making strategy work: Leading effective execution and change. FT Press.
Malenfant, K. J., 2010. Leading change in the system of scholarly communication: A case study
of engaging liaison librarians for outreach to faculty. College & Research Libraries.
71(1). pp.63-76.
McLoughlin, C., 2011. Leading pedagogical change with innovative web tools and social media.
International Journal of Adult Vocational Education and Technology (IJAVET). 2(1),
pp.13-22.
Mukherjee, and et. al., 2012. Leading virtual teams: how do social, cognitive, and behavioral
capabilities matter?. Management Decision. 50(2). pp.273-290.
Nahavandi, A., 2016. The Art and Science of Leadership -Global Edition. Pearson.
NHS England, 2016. Leading Change, Adding Value: NHS England's commitments. British
Journal of Healthcare Assistants. 10(10), pp.502-505.
Parsons, M. L. and Cornett, P. A., 2011. Leading change for sustainability. Nurse leader. 9(4).
pp.36-40.
Pelling, M., 2010. Adaptation to climate change: from resilience to transformation.
Routledge.Goldstein, J., Sauer, P. and O'Donnell, J., 2014. Understanding factors
leading to participation in supplemental instruction programs in introductory accounting
courses. Accounting Education. 23(6). pp.507-526.
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