Leading Change: Strategies, Drivers, and Organizational Impact Report

This report delves into the complexities of leading change within organizations, using Starbucks and Costa Coffee as illustrative examples. It examines the impact of change on an organization's strategy and operations, exploring both internal and external drivers that affect leadership, team, and individual behaviors. The report highlights actions to minimize the negative impact of change on organizational behavior, while also addressing the barriers to change and their effects on decision-making processes. Furthermore, it identifies and evaluates various leadership approaches essential for navigating and managing organizational change effectively. The analysis covers a range of factors including technological advancements, market competition, and customer preferences, providing a comprehensive overview of change management strategies and their practical application in real-world business scenarios.

Understanding and
leading change

Table of Contents
INTRODUCTION..........................................................................................................................................................3
TASK 1...........................................................................................................................................................................3
P1 Impact of change on an organisation's strategy and operations.....................................................................3
P2 Ways in which internal and external drivers of change affect leadership, team and individual behaviours .6
P3 Actions to minimise negative impact of change on organisational behaviour...............................................8
TASK 2...........................................................................................................................................................................9
P4 Barriers of change and its effect on decision making.....................................................................................9
TASK 3.........................................................................................................................................................................11
P5 Leadership approaches to deal with change ................................................................................................11
REFERENCES..............................................................................................................................................................14

INTRODUCTION
Changes are something which involves modification of policy, rules, regulations in the
organization. Every Business operates in environment which is not constant and keeps on
changing with the course of time. Along with this, there are various operators of changes which
have a huge impact on the company structure. This report includes Starbucks and Costa coffee
company which is operating successfully in UK with the main objective of lending quality
services to their customers through fulfilling their needs and enjoy highest market share. Costa
coffee house in among the second largest in the world behind the Starbucks. The aim of this
report is to highlight the aspects related to organizational changes. Understanding the concept of
leadership process is accounted important for gaining sufficient profit and production level for
the company (Anderson, 2010). There are several leadership approaches which are applied by
the firms according to their system and environment. Therefore, it is required by the industries
to foresee, schedule and furnish required changes considering the various internal and external
factors which have a huge impact on the corporation's structure.
TASK 1
P1 Impact of change on an organisation's strategy and operations
Every firm have to bear the changes which happens in the surroundings through making
changes in the procedures, operations, policies and structure. Modifications can be of two types
positive as well as negative which are needed to be properly understood by the management of
company so that effective and efficient results can be produced by business. Organizational
change basically involves inspecting and assessing structure of the management and various
related business processes. Every business should accept changes and look as a way to organize
base to follow plan of actions.
The kinds of changes in business are associated with reference to policy, strategy, people,
functions, operations etc.(Aslan, 2013). Internal and external factors need to be considered
properly by the company's managers which results into achieving sufficient profits. To manage
all these factors , firm has to make suitable plans for such modifications by executing appropriate
and suitable models and processes. Starbucks and Costa are the two famous coffee houses of UK
with their proper dealing. Starbucks is a large association with outlets in other nations on the

other hand Costa is the second largest coffee company that provides roasted coffee to their
customers. whenever any changes occur in these company, leads to the impact in the process.
The impact of risks are different depending upon size of the organization. Big associations have
a huge impact of risks as compared to small association. Business risks can grow from internal
and external factors. There are basically five division of risks that are strategic, operational,
financial,compliance and other elements (natural disaster). Starbucks is the big organisation,
hence changes which are taking place in the business environment related to prices of raw
material used to make coffee beans. Other changes involve alterations that has to be executed in
operations of strategies of these two coffee houses. Similarly, Costa company bears same kind of
influences from the changing environment. The impact of changes on these companies are
different that are discussed below:
Basis StarBucks Costa
Emerging technologies Starbucks is a big sized
organisation, thus they have to
adopt updated and new
technology to operate their
business in order to make
quick changes in system.
There are
Costa is comparatively a small
sized coffee house that needs
to adopt technological changes
but at lower level. They will
require more funds to
introduce new technology
concepts which is not available
with the management.
Change in external factors External influences include
economic conditions,
government policies as well
customers preferences. Any
change in demand of
customers result in restructure
of management system. All
these factors impact the overall
organization system. Hence,
StarBucks has to alter their
Due to less number of
operations in Costa coffee
house the impact of change in
customer preferences and
behaviour do not impact the
management system majorly.
The chances of negative
impacts are very few.

structure whenever need arises
and draft a new one. This
means negative influences are
more.
Change in structure Whenever the changes or
alteration arises in
organization structure, it will
not ruin the big firm as they
have well established
hierarchy system. The whole
structure need to be reviewed
again by top level of
management of Starbucks so
that proper accomplishment of
vision could take place.
Employees easily take the
change and implement it in
their working style.
In Costa coffee house,
employees resist changes
which are not suitable for an
organization. Thus, it is
difficult for hem to make
changes in their structure.
There are several kind of strategies that implemented by the organisations such as Starbucks and
Costa to enhance their sales and profits to achieve growth in business career. These are beneficial
to attract more clients and help to retain the current ones by improving goodwill of company in
strong market competition. Some of these policies are given below:
Pricing strategies:- Starbucks is very popular company of providing coffee to customers with
different varieties. They have implement several modifications into manufacturing budget so that
they become able top render better product and services to people which can be affordable to
targets customers. It impacts to positively to improve sales and profits. In case of costa, their
pricing strategy is something like that as they are providing price of products varies as per
quality of product. It makes the budget of production stable and help to make firm more
profitable in market.

Marketing strategies:- Starbucks is a large organisation and use various mode of online
marketing to improve its goodwill and productivity. This will make brand more strong in front of
competitors and improve growth of business as well. At the other hand, Costa have to establish
its marketing through banners, and audio and videos to make it more familiar with people. It will
make this brand to become popular amongst areas that are out reach till now.
It is the responsibility of managers and leaders to frame proper strategy in order to
convert all negative impacts in positive influences. In this regard, industry form planned policy
in order to fulfil the requirement. Thus, Starbucks and Costa leaders or managers have to make
their existence significant so that they are able to handle various adjustments correctly.
(Bingham, 2010).
From the above discussion it is clear that there is need to change polices when there is
change in environmental factor. There is positive as well as negative impact of these factors.
Starbucks carries good image in market, so it is important that company has to apply changes in
their operation to make good relations with consumer. Starbucks serves coffee, desserts so they
have to give importance to customer demand. In case there are technological changes then
organisation must adopt them and to implement in operations effectively, manager has to give
training and communicate properly to workers. External factors are not in control of management
of Starbucks but they can take measures to reduce its negative effects.
P2 Ways in which internal and external drivers of change affect leadership, team and individual
behaviours
Change management system involves accomplishment of particular set targets and
specific tools are adopted to achieve modifications in association of process become able to
produce more and more gains. For attaining the required changes in the company proper system
is framed and than executed in definite format. It seems to be important to learn about several
factors which may impacts on firm's aspects and directly impacts on productivity as well as
profitability of organisation. Even though, internal and external factors of changing environment
have to be properly scrutinize by the managers benefiting each individuals and team members so
that negative impact get manage efficiently. There are generally five components of external
factors that need to be estimated in considering the business context which have a h uge impact
on each factor of the business:

 Competitors oriented Drivers: Business environment is full of competitors which
increase the competition for every player at vast level. Thus, StarBucks have to give
attention to this area in consideration of the situation. Competition scenario directly
supply the environment of changing elements. There are number of competitors of
Starbucks company like Cafe Coffee day, Tea leaf. Technology oriented drivers: In order to establish the competitive advantage in the firm
as every business have to adopt the technological changes which are beneficial for better
outcomes. Customers oriented drivers: Customers are considered important part of the
organizational change which need to be consider by the leaders so that change process
can be concluded in a proper manner. Starbucks and Costa inspect their buyers properly
in order to full fill the desires, so that they achieve their targets of maintaining their
established market share. Government oriented drivers: StarBucks and Costa have to conduct PESTLE analysis
in order to properly implement the assigned strategies and hence achieve the targets in a
proper manner. For this context, the most suitable tools which are included in external
changes are: Political: StarBucks and Costa have to find out various political factors attentively so
that firm can manage their different tasks legitimately. Any changes in political policies
have a huge impact on the organization structure as they have to modify their working
policies according to it. For this leaders have to be very energetic and active in order to
tackle such situations. Technological: It is that aspects which keeps on changing so frequently, hence every
business have to compile with every ones interest. Thus, this aspect have to be consider
properly in order to achieve the technological changes.
 Social: Social consents also have the impact on the business. This includes change in
the attributes, lifestyle etc. hence, it is the duty of the organisation to continuously
examine the recent trends to work properly in the changing environment (Branson,
2010). StarBucks have to examine consistently about the society's perspective and then
use the media to communicate effectively. They have to perform market research

frequently so that they can able to examine the current market situation and than take
decision accordingly.
Achieving these aspects management have to draft their policies in accordance with the internal
aspects of the business so that better results can be gained. Strength: As Starbucks is a big association they have to deal with changes appropriately
due to presence of sufficient number of resources. Thus, negative impact are low as
compared to Costa company. Weakness: StarBucks gets easily influenced by political and economical changes. As it
harms the operations of the business hence they need to update their policies accordingly.
 Opportunities: StarBucks have an opportunity of operating in vast level as they include
numerous customers in overall country. This helps in achieving the corporation in order
to gain the better promotions in their position.
These are the drivers which impacted drivers of change in adverse manner. Like the
number of competitor at external business world is high and more in nature under which chances
of impact are more. Leaders need to understand the competitor led driver properly so that they
could facilitate and guide individuals properly which further enable them to deal with market
world properly. Although at the time of workload business teams get impacted more and more
where they lead to face so much barrier for managing work. Hence, this external factor need to
assess properly by business managers so that better and suitable gains become possible. All the
changes that occur have huge influence on various elements of Starbucks that include leaders,
individuals and team. As management have to make sure that all modifications and alterations
need to be executed correctly and effectively in their system. Leaders have to change their style
and individuals have to follow them. Team members have to work upon newly draft rules and
regulations to accomplish final aim of the coffee house.
P3 Actions to minimise negative impact of change on organisational behaviour
Sometimes, changes are needed to be implemented according to demands of current
trends or it will be applied to maintain the image of brand amongst clients as well as competitors.
If in case other organisations are doing their work with new and fast technology then it becomes
important to adopt new soft-wares or advanced machinery so that they can facilitates to improve
efficiencies of employees as well as achieve fast output. Starbucks is focussed on digitalisation,
new innovations, reserve and expansion of roaster. Negative changes can be defined as those

impacts and factors which hinders the growth of the business. Various actions and steps are
implemented by Starbucks and costa to minimize these influences as it is directly linked with
changes on organisational behaviour. This means mobile payments, mobile order, company
rewards for clients, prepaid cards etc. changes should be implemented to make more profit as
well as fast working but sometimes they have negative impacts also (Carrington, 2010). The
firm need to overcome with these aspect by adopting several methods so that changes will render
better results. Steps to avoid negativity in company are as follows: Creation of pathway: This factor includes to built a particular department or team which
can provide every kind of knowledge about new implemented strategies to the
employees. It is necessary to solve each type of problem or issue to facilitates
comfortable working environment amongst the people then only they can adopt new
things easily. Before this, superiors have to explain all aspects clearly about plan of
execution to sub-ordinates. This can be regarded as first step under which proper plans
and paths are made which are directed towards the achievement of set goals and targets. Information about innovation: All the information of factors regarding implementation
of new creative or innovative idea must be conveyed to staff members. They have to tell
about goals, objectives or appropriate reasons behind new applied technologies or
policies. To render information about criteria of Starbucks is important because people
can work only the when they have proper knowledge about it. By providing all this,
manager's will make their co- workers more comfortable to adopt new strategies and
perform effectively as well as efficiently (Doppelt, 2017). Participation in seminars and meetings: Whenever several kind of meetings,
presentations, conferences or seminars will be conducted in Starbucks company then
active participation is must because it can help to understand as well as people can share
their views or issues regarding the aspects delivered by speaker. They may have an
opportunity to share their own ideas having better impact on profit of Starbucks. Manage planning and Implementation: Planning is primary and theoretical part of
everything because this will importantly done before practically to evaluate it so that
Starbucks can avoid future threats and problems which can turn into a huge loss. To get
rid off future loss it is necessary to re-check the plan step by step and execution will be

more successful. All the activities, tasks or processes should be assigning to employees as
per their field of expertise then they can work more efficiently (Finnigan, 2010).
 Implementation of plan with suitable goals and objectives: The targets and goals of
Starbucks are well defined clearly to everyone so that they can focus in single direction.
Applied change is to boost up sales and profit and to improve working efficiencies of
workers by enhancing their knowledge skills.
All of above mentioned steps are helpful in reducing the negative impact of change in
Starbucks so that whenever change is needed then all these aspects must be follow, to make new
implementation more effective without having any negative impact on behaviour of business.
TASK 2
P4 Barriers of change and its effect on decision making
Changes are needed to make future profits as well as strong position in market amongst
the clients. As per changing trends of market people also accept these modifications very easily
and frequently. So that it is important for companies to get up to date with changing fashions of
market scenarios by avoiding certain barriers. Some of barriers are as follows: Resistance to change: People who are working in Star Bucks are major factor turns as
barrier because they become biased to current environment and become habitual of it.
They need a little bit time to overcome with change. Sometimes, employees deny in bulk
then company have to modify or delay the implementation of changes. It affects in
decision making so that meetings should be conducted regarding need of change and
profits or benefits will discussed to motivate workers for adopting changes. Unknown Current State: If the experts don't have sufficient knowledge about current
situation of company regarding its strategies, policies, rules, technologies etc. then they
are able to find out need of change. It will become quite impossible to make effective
decision about to apply change so that proper information gathering is necessary to build
any kind of change (Fullan, 2014). Integration: It is very well known that when a firm apply something new then different
issues or problems will raised immediately one by one. For example, if StarBucks
modified its structure then employee turnover will arises in parallel as well. By this

aspect. This is well defined that a firm will implement certain changes then it will
definitely faces some difficulties for a particular period of time. Competitive forces: Sometimes, organisations have to driven several kind of
modifications due to external forces like competitors, clients preferences, market trends,
economic forces, technological improvement and many more. To maintain the goodwill
in market it is important to follow current condition of market as well as analyse the
strategic change of other competitive firms to make their own policies better.
Modifications have different goals like profits, goodwill, position of brand in
competition, customer's demand and preferences etc. Complexity: Always having a strategy to do better results sometimes into difficult
structures, systems, activities etc. which seems to be complex to understand or learn
about it. And when they need to implement certain changes then it will become more
challenging to be done (Fyke, 2013). So, it can be consider that complex structure is a
barrier itself to apply something new. It affects decision making at every level and
consumes more time to make any judgement. Changes are part and parcel of business life
in today's scenario. Changes have to be managed to so that decision making process is
not affected. There are number of obstacles while processing. Hence, all the above
mentioned barriers are to be properly examined before taking any judgement regarding
organisation. Lack of communication:- Company at the time of running their business divided their
work into different department in which they have to compete daily targets but all
employees fail to complete task on time because they are aware about the working
structures and techniques used at the time of performing activity which act as hurdle in
decision making.
 Lack of consensus:- In large organisation when company is fail to convince corporate
members regarding acceptance of changes then in such condition it is difficult to take
decisions. All the management level staff need to be on board and able to deal with all
alteration or they may face difficulties at the time of taking rational decision.
 Edgar Schein theory:- It is kind of theory in which regards to change of three levels.
These are unfreezing, changing and refreezing of changes to be implemented in company.
Theses stages are really essential so that changes and modifications can takes place. This

model is known as successful and simplistic so that it is widely accepted by many of
organisations.
 Force Field tools:- This can be described as that procedure in which analysis of social
science is done. It includes several factors such as framework for looking at elements
which affiliate a condition, originally societal circumstances. Some of components like
psychology of community, development of organisation, process management and
changes are easily tackled by studying these factors.
TASK 3
P5 Leadership approaches to deal with change
Kurt Lewin's change model: It provides a very simple way of understanding the
processes or activities while implementing any kind of modification in an organisation such as
Starbucks company. This model includes several steps like unfreezing, changing and refreezing
by which changes can be done easily to attain desirable level of profits. This model is widely
accepted in modern scenario of change models ( van der, 2015). Unfreezing:- Due to people resistance, a firm have to render information about issues and
problems arises in current status and the ways of applying change by which they can
overcome with current problems. It is all about to convey benefits of modification before
implementing them so that manpower of Starbucks will easily adopt them. Changing:- This stage indicates to take first step at the beginning towards new change
and it is realistic. At this level, people have to manipulate their mind set ups as well as
learn about new strategies or technologies to adopt them (Hintz, 2013).
 Refreezing:- This level is top balance the modifications in Starbucks so that performance
will render proper output as well as staff members feel comfortable to work in new
environment with different policies and techniques.
Kotter's 8-step change model: It simply means to apply the modifications effectively
and efficiently. It model includes several steps which are given below: Create urgency:- Sometimes, changes are needed according to demand of market trend
or when employees of organisation wants new technologies or flexible working shifts.
Introduce factor of immediate change implementation in Starbucks by identifying threats
and opportunities.