Leading Change: Starbucks and Costa Coffee Comparison Report

This report delves into the critical aspects of understanding and leading change within organizations, using Starbucks and Costa Coffee as case studies. It begins with a comparison of their operational strategies, highlighting how they adapt to market trends and maintain a competitive edge. The report then examines the internal and external drivers of change, such as customer demands, competitor actions, technological advancements, and government regulations, and how these factors influence leadership decisions, individual employee behavior, and team dynamics. Furthermore, it explores strategies to mitigate the negative impacts of change, including employee resistance and financial considerations. Finally, the report analyzes various leadership approaches to effectively manage and implement change, providing insights into achieving successful outcomes. The report concludes with a comprehensive overview of leadership approaches to dealing with change in the context of the two companies.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Comparison between different organisational operational after adopting changes.........3
P2. Measurement of internal and external drivers of change on leadership, individual and team
................................................................................................................................................6
P3. Evaluate how to minimize negative impact of change on organisation...........................8
TASK 2............................................................................................................................................9
P4. Barriers which effect the change and affect leadership decision making Strategies.......9
TASK 3 .........................................................................................................................................10
P5. Leadership approaches to dealing with change..............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Understanding and leading change can be defined as an important tools to tackle all the
problems which arises due to initiation of implementing any kind of change or modifications.
This technique facilitates to reduce all threats or issues such as psychological, political and
organisational which may raised due to changes(Amey, 2010). It is essential to implement
changes regarding continuously changing culture or environmental trends of market and
maintain different changes in This assignment includes comparative effect of changes or
modifications within the two organisations regarding their operational as well as strategic aspects
in business. Also the drivers of causing modifications and influence of behaviour of leaders,
individuals and teams will be studied in discussed. Besides of this, there are several approaches
of leadership which can be utilises to determine aspects of achieving success by implementing
changes. This reports consists comparison between Starbucks and Costa of their operational
aspects leads to success.
TASK 1
P1. Comparison between different organisational operational after adopting changes
Changes and modifications are necessary in today's scenario because everyone wants to
be up to date according to trends the it becomes important to implement modifications to their
products or services. This will helps in building strong position in front of competitors in market
situations. Occurrence of new innovations facilitates many opportunities as well as challenges
and they have to grab those chances to attain profit and tackle with challenges easily(Carter and
et. al., 2013). It can helps to retain the current customers and attract new clients as well. There
are two companies named Starbucks and Costa which have a business of restaurant chain at
different geographical areas and places.
Starbucks and Costa
Starbucks is very famous company of America renders service of coffee and refreshment
to people in United States of America. This firm is founded in 1971 and the founders of this
enterprise are Grodon bowker, Jerry Baldwin and Zev Siegl at city of Washington in United
states. They have their coffee chain in around 50 countries with operating in more than 15000
shops or stores all over America. Costa is also a familiar coffee shop having its different tea
stores more than around 31 nations. It was also established in 1971 by family of Costa provides

their service of coffee with a unique way by render coffee beans as well as their special recipe of
Italian coffee in streets of London in united Kingdom. This firm has around 3400 centres in
different nations and this enterprise enhance its coffee chain by launching it in India as
well(Davis and arshall, 2014).
Comparison between different strategic and operational aspects of Starbucks and Costa
coffee restaurant to running their businesses more successfully to attain higher level of position
in market scenario:
Strategies Starbucks Costa
Competency based strategies  This firm have a policy
to enhance their
qualities of goods or
services according to
taste and preferences if
customers. They
implement
modifications or
changes to fulfil the
demand of clients as
per current trends.
 This company deals in
teas, infusions,
chocolates, iced and
frescato and provides
already bifurcated
products. They have
An issue of not
identifying exact no. of
demand which delayed
their service so that
they have to work on
this aspect.
Pricing strategies  This enterprise has
high levelled position
of brand in market and
they have quite
expensive goods or
services(Drover and
Ariel, 2015). They will
try to launch some
reasonable products in
 This firm has cost
effective policy as they
provide affordable and
good quality of
refreshment to their
clients. They will put
their efforts to fulfil
their customer's
demands at reasonable

market so that middle
class people can afford
their products. By this
they can attract new
clients and easily grab
more market area.
price.
Promotions and advertising
tactics
 This company had
spent a huge amount of
money on promotional
activities at its initial
stage to grab market
successfully. This
facilitates to attain long
term profits by
improving productivity
and profitability.
 This firm is not
interested for investing
lots of capital to
advertisements
aspects(Fragouli and
Ibidapo, 2015). But it
focus on rendering
better quality of
products or services to
its customers.
Process  This organisation has
broad range of centre
to provide its services
at different places.
Previously, they used
to serve by self service
but in today's scenario
of technologies they
renders online delivery
on placing orders in
current trends of
market(Goldstein,
Sauer and O'Donnell,
2014).
 They have different
method to deliver their
services by appointing
staff members to attend
every customer
personally to fulfil their
demands of
refreshments.

P2. Measurement of internal and external drivers of change on leadership, individual and team
Leadership
This term can be described as technique which facilitates focus towards effective working
for implementing change or modifications for attaining goals and objectives. Sometimes, to
apply changes and to make them effective, it is needed to appoint specially skilled or able
employees to fulfil roles or responsibilities of a leader. This aspect is necessary for directing
focus and efforts of overall human resource in a correct to achieve profitability or productivity
by implemented changes(Groppel, 2011). Leadership may refers to a special quality which differ
them from other people. Besides of this, the fact is that leadership qualities or styles are there in a
person from their birth and they lead everywhere with their special characteristics.
There are several challenges or issues which arises by implementing changes or
modifications along with opportunities and benefits which have to solve immediately with proper
methods. Some internal and external drivers of changes are mentioned below.
Internal Drivers of Change Forcing factors:- This term basically includes several factors such as improving brand
image, capital structure and market share of an organisation to run that successfully. Innovations facilitates profits:- Implementation of innovations and creations regarding
strategies or policies to boost up goodwill of brand which helps in increasing sales and
profits. Knowledge to workers:- Sometimes, organisational roles and regulations, procedures of
working, managing criteria impacts the scope of implementing modifications in an
enterprise(McLoughlin, 2011). It is necessary to convey details about applied changes
and make confidence for their leader. It results in proper implementation to achieve more
profits or benefits.
 Maximum utilisation of resources:- The firm need to change their policies for attaining
better utilisation of available resources and reduce wastage of elements to improve
productivity or profitability of an organisation.
External Drivers of Change Customers:- The firm's profits and brand position will be determined by its clients so that
it is necessary for organisations to boost up qualities and features of products or services

as per demands and needs of customers. It is important to take care of taste and
preferences of people which facilitates to attain loyal clients as well as helps in attracting
new customers. Competitors:- There is very tough competition found in market scenarios. It is necessary
to improve features of products in respect to competitor firm's services to grab market
area and fulfil flexible demands of customers as per trends(Pelling, 2010). The
organisations have to monitor strategies of competitors to render better goods to people
for maintaining image of particular brand. Investors:- They are important people for an enterprise because they invest capital or
money to business and the companies have to return them profits. They can force
authorities or owner of firm to implement something new for achieving better profits or
benefits. They have to work on suggestions of such people regarding to attain
profitability and productivity. Technology:- Sometimes, technologies play role of forcing factor which leads to apply
changes or modifications to make working outputs more effective and efficient.
Implementation of high technology facilitates easy working with generating better
outputs on daily basis as well as helps in enhancing brand image in market competition.
 Government:- Many times when legal authorities implement several changes in their
rules and policies then all the organisations have to apply certain modifications according
to legal aspects of government. It is mandatory to run any business without any legal
issues or problems.
Linkage of leadership with drivers of change
The well skilled and capable leaders are necessary to implement changes in an
organisation to directs individual workers or teams in a correct direction. It results in completing
targets or objectives of modifications more successfully to facilitates improvement of
productivity as well as profitability(Reiman and Pietikäinen, 2012). This is the reason of hiring
expertise leaders as per requirement of changes to gain better profit from modifications.
The companies have to appoint such kind of leaders who bears ability of analysing
employees expertise field to assign appropriate projects to them. This will facilitates worker's
interest towards their performance and better output as expected. The leader have to plan an
effective and efficient procedure for implementing changes in the firm. This results in

achievement of profits and benefits more successfully by applying different strategies or policies
in the company.
P3. Evaluate how to minimize negative impact of change on organisation
Advancements and changes includes high factor of risk which effect structure and culture
of company. When the company want to implement some new innovative techniques then it
bears opportunities to boost up profits as well as it contains challenges which are mandatory to
control. If these issues are not solved hen they will turn into huge loss. This is the reason behind
that many organisations want to hire expertise leaders to attaining successful implementation of
new techniques or strategies. There are panels and committee which are made for risk analysis
factors of changes which are picked out in shop of Starbucks coffee. Considering the risk and
showcase changes are the potential and capacity of companies be a leader of market.
Organisations have to work on several aspects by which they can control negative effects
of changes in firm and put efforts to facilitate profits and benefits(Thomas and et. al., 2013).
Having a various kinds of negative influences which may fall upon companies by new changes
implementing and companies tactics are discussed below:
Employee resistance
Changes are natural which affect work format and nature in organisation. Workers are
used to follow their operations of process and prior procedure in type of an normal business. It
consider an example which implement artificial intelligence for maintaining records and data of
an units which are manufactured can cause some issues in understanding of an system.
Giving guidelines which are required and programs of training which help in software
understanding to workers.
Expenses
Changes which includes investments at a large amount and requirements of finance for
implementing plans and ideas in Starbucks. It is easy in a companies of multinational and large
size for generating requirements of finance from financiers and investors. Having small entities
difficulty and companies consist of less share of capital in market. Without finance analysing
there are requirements of changes should implements it lead to a higher cost of products and
which reduces profit rate. Leaders and managers had analysed various options and finance source
which choose the best options which fit for generating finance of companies.
Lack of support failure

having miscommunications possibilities and lack of information of descriptive to persons
of companies for factor of understanding changes in companies. Its nature effects, employees
behaviours also effect and members of staff within a company affect in a effective and a positive
way. In an management conditions and needs of leaders ensure workers their positions and rights
are remained secured while changes. Explanation is needed and tactics are taught of changes and
realization of changes are necessary for performance enhancing and affectively.
Morale
It is abstract of an nature of human which consider skills, self confidence and willingness
for task completing in an timeline given. It also affect performance level of an workers within an
company. This way it will be possible for workers loosing their morale for targets meeting and
tasks completing with in a company. Outcomes of an low productivity are profitability and less
efficiency.
In a way of summarising it advice that changes in profitability happen in the situations of
favourable. It prior management duty and responsibilities they should construct their
communication strong level for understanding changes dynamics.
TASK 2
P4. Barriers which effect the change and affect leadership decision making Strategies
Management and goals of leadership are remained focused towards management and
efficient operations. Leaders are remain active and effective while achieving a objectives and
goals of an companies(Wedding, 2010). It is one of an process of making decisions which help in
finding an plan effectively and implement strategies for gaining higher profitability and
productivity. Having various factors which affect decisions of leadership in Starbucks.
They can understand with the help on an example as department of management of
seeking Starbucks for strategies of new marketing. When it come on leaders that it plan
according to capacity and facilities of workers. Plan sorting, making a plan of implementing of
an role assign and major factors responsibilities occurred for preparing strategies of decision
making.
Experiences of past. Individual minds are set, cognitive biases, personal relevance are
some of an factors of internal team it create a huge differences in effective option and optimizing
best fit for companies.

Changes are not effected only to a administrative department and management system
but it also effect their sub departments like as sales department, IT department, marketing
department etc. are various kinds of complexity is found in which the changes are applied. It
affect capability and capacity of workers dealing with a system.
Information support, awareness and knowledge frame changes of an company and
specified needs format. There are various kinds of technical and project changes for adopting a
management of excel operations and functions. It that conditions leaders and managers have to
seek out experiences and knowledge of workers which could operate and understand system
functions. Some times advancements and technology are new for each having a situation of
challenging. They suggest for implementing these kinds of tactics for some period of time.
Leaders and managers of Starbucks face long time and lagging for program implementing
because of people are not much experienced and workers.
Budgets and cost also influence upon making of decisions in a leadership [process.
Various kinds of program of training and developments are conducted for teaching an members
of staff and its changes. Evaluation of leaders cost plans are effective from markets. Examples
of company expand their wants its size of an capital business then in that situations leaders are
having two options for finance generating needs of debentures and loan. It is require for
analysing capital cost for plan and identify the end outcomes and product profits.
TASK 3
P5. Leadership approaches to dealing with change
There are several approaches and models which are helpful to deal with positive and
negative impacts of implementing changes in an organisations. Different approaches have their
own role and value to solve challenges of modifications in respect to various kind of nature or
environment of different companies. It is mandatory to analyse previously the nature of firms
then try to use particular approach of leadership top attain its useful aspects. If wrong model will
be applied then it results in huge loss of an organisation so that it becomes necessary to
implement correct approach of leadership to gain profits from modifications and changes.
Situational leadership theory is very useful because it refers to make changes according
to the situational demand if current scenario of market and customers. This indicates that, firms

have to analyse the need of changes in respect to condition and then make plan or strategies to
improve performance of employees.
 Autocratic:- It can be considered as situational leadership approach a which
mentioned above. It is possible by observing and analysing feedbacks or views
from employees because it will facilitates better implementation of new
innovations or creativities. Starbucks and Costa can apply this approach in
different conditions to achieve better profits or benefits.
 Democratic:- It is a kind of method which provides freedom of flexibility or
scope regarding involvement of investing efforts willingly for particular
implementation in an organisation(NHS England, 2016). Starbucks and Costa
may also apply this method because a person can work freely according to their
own style then they can generate more profitability and productivity as well.
 Laissez Faire:- This refers that, the organisations wants desired output but they
do not bound their employees with particular methods or techniques to attain
goals or objectives. This type of leadership includes working with freedom but the
policy is to fulfil daily based tasks on time having preferred profits. Starbucks and
Costa have to work on this aspect to provide the employees stress-free working
and just focussed on its outputs rather then techniques of performing.
 Transformational:- this approach includes that aspects in which the leaders needs
to change several techniques according nature of situation and missions which
needs to be fulfilled in particular period of time. Starbucks can implement this
approach to facilitate more smooth work at the time of innovative
implementation. Starbucks and Costa need to do work according to this theory
because different methods in respect of various situations impacts differentiation
between productivity.
 Transactional:- this approach of leadership can be defined as miser of
management skills and leadership capabilities. In this, the organisation have to
provide rewards, bonus, incentives to employees according to their working
efficiency or output in situational context. Starbucks and Costa have to accept this
strategy of proving awards to its its employees for their excellent performance to
create better output in every condition. This will make them feeling valuable so

that they become loyal to organisation and perform more willingly and efficiently
for earning better productivity or profitability.
CONCLUSION
This report had concluded that implementation of new innovative and creative strategies
or policies is necessary by accepting changes in market. This may helps in improving operational
and strategies aspects by studied about internal and external drivers facilitating modification and
changes in an organisation. It is mandatory to analyse impact of forcing factors of changes on
leadership, individuals and teams and try to evaluate them to minimize negative aspects. This
report indicates that barriers which can affect the changes and decisions of leadership are also
need to sort out with suitable solution. The organisations have to studied and analyse about
suitable leadership style according situation or nature of modifications to gain better profits.
Changes and modifications facilitates opportunities to grab them for making more benefits as
well as making strong position of brand in market. Along with this it has several risks or
uncertainties or challenges as well which are needed to solve at a time to get rid off problems or
loss.
REFERENCES
Books and Journals
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Leading Change in Your Organization. John Wiley & Sons.
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p.71.
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Groppel, J. L., 2011. Thinking beyond the playing field: Leading change in your community.
Journal of Physical Education, Recreation & Dance. 82(6). pp.35-40.
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.