Investigating Organisational Change: Change Management Report Analysis

This report provides a comprehensive analysis of change management within an organizational context, using Starbucks' innovation lab as a focal point. It begins with an introduction that highlights the drivers of change, both internal and external, and emphasizes the importance of adapting to a competitive business environment. The report then delves into Starbucks' innovation lab, detailing its objectives, projects, and impact on sales and efficiency. A PEST analysis is conducted to examine the political, economic, social-cultural, and technological factors influencing the company. The impact of change on various aspects of the organization, including leadership, individual behavior, and team dynamics, is thoroughly assessed. Strategies to minimize the negative effects of change are discussed, and Lewin's change management model is applied to provide a structured approach for managing organizational transformations. The report concludes by summarizing the key findings and emphasizing the need for proactive change management to achieve sustained success. The report is supported by references and a bibliography.

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Change Management
Assignment 1
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Table of Contents
Introduction................................................................................................................................2
Starbucks Innovation Lab..........................................................................................................2
PEST Analysis...........................................................................................................................3
Impact of change........................................................................................................................5
Impact of change upon leader effective, individuals and team behaviour.................................5
Strategies to minimise impact of change...................................................................................6
Lewin’s Change management model.........................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8
Bibliography.............................................................................................................................10
Additional readings..............................................................................................................10

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Introduction
In order to develop a learning organization it becomes imperative to implement change and
survive in the competitive business environment. The need to implement change in the
organization is due to the pressure of the external and the internal forces. The main drivers of
change include the desire of the organization to use its capabilities and the resources that
helps in developing innovation (Hayes, 2018). It also includes the occurrence of
dissatisfaction among the employees which fosters to implement change in the existing
policies. The external drivers for change include changes in the technology and the lifestyle
of the customers. The development of the new policies by the government and the increasing
competition among the companies develops the emerging need to implement change and
sustain the modest lead of the business (Cameron and Green, 2015).
The implementation of change creates new business opportunity for the organization. It
allows the organization to stay updated to the current industry trends and increases the
efficiency of the business which allows the company to target the new potential customers.
Changes in the organization strategy allows the company to adapt the changes in the legal
environment and develop cost friendly solutions but it also come with more risk of failure
and resistance of employees to adopt the changes (Celik and Ozsoy,, 2016).
Starbucks Innovation Lab
Considering the complexities in the business environment Starbucks has developed new
innovation lab that brings the new approach to change at the coffee giant. It is named as Tryer
center at its headquarter in Seattle. The aim of the centre is to bring a next wave of innovation
it its brand and focuses on developing new beverage platform and delivering improved in

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store experience. It also focuses on creating stronger digital relationships by quick
prototyping through 3D printer and enhancing the distribution devices (Rogers, 2019).
Through this innovation lab the company has developed 133 unique projects comprising tech
informs, Instagram commendable drinks and soup making equipments. The innovation lab
has developed a single cup making model that brews the coffee in two minutes and
mechanically gutters it to make simpler for the Baristas. This lab focuses on bringing the new
ideas and converting it into action in 100 days. It has implemented 40 projects in the stores of
Starbucks. It is analysed that the innovative projects has helped the company to increase its
sales growth to 4% in United States (Taylor, 2019).
It is analysed that the company faces the complexity in adapting change in the organization
strategy and due to increase in its scale the speed of innovation become low. The company
faced fierce competition from Dunkin Donuts and Mc Donalds and independent local stores
that provided the local taste at the lower prices. In response to the competition the company
focused on adding new flavours to the beverages and sells roughly 200 beverages to its
employees for $5. It developed innovative system for the clients to choose up their mobile
orders. It has developed Nitro cold project that has helped the company to boost its sales and
has converted the long cycle innovation approach to 100 days (Taylor, 2019).
PEST Analysis
It is a framework that helps the company to analyse the external factors and its affect upon
the business. It includes the technological, social, political and economic factors which are
not in control of organization and majorly affects the functioning of the company.
Political Factor

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It includes the policies and the norms laid by the government. The presence of Brexit creates
uncertainties and chaos for Starbucks and other industry competitors. The UK welcomes
foreign direct investment which increases the competition for the company and the rate of
corporation tax is high which decreases the revenue of Starbucks. The government of UK is
supporting for the development of the infrastructure which in turn creates the opportunity for
the company to increase its investment (Haskova, 2015).
Economic Factor
It is analysed that the cost of importing goods is high and the country faces high rate of
inflation. Starbuck also faces the challenge of increased cost because of increase in the labour
cost which in turn increases the cost of the company (Sisson & Bowen, 2017).
Socio-cultural factors
It includes the changes in the lifestyles and the perceptions of the customers. Such changes
provide the opportunity to grow and increase the pressure of change upon the company. The
increasing demand towards the coffee culture creates the opportunity for the company to
provide new beverages platform and increasing awareness towards the health conscious
products develops the emerging needs to add healthy menu and attract the potential
customers.
Technological Factors
The increasing use of the mobile apps provides the opportunity to the company to increase its
revenue and the availability of the coffee machines at homes creates the threat of decreasing
demand. The farmers use the technology which provides the opportunity to the company to
enhance its supply chain. It developed the need to develop equipments and growth in the tech

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update apps to deliver improved customer experience and attract the potential customers
(Chang and Chen, 2015).
Impact of change
The development of the innovative lab increased the sales of the business to 4% and aided the
firm to attract the potential customers. It developed 133 unique projects and has already
implemented 40 projects to increase the velocity of innovation. The 100 days innovation
cycle helped the company to drive innovation and instill creativity in developing equipments
that helps the Baristas in delivering efficient services. It allowed the company to develop new
beverage platform that allows the company to beat its competitors and attract the potential
customers. It has helped the company to improve its efficiency and drive the entrepreneurial
spirit. Through the development of the unique projects the company was able to deliver
personalised services to its customers.
The complexity in the models has led to resistance of the employees in adoption of the
change and learns the complex process. It increased the investment and the cost of labour and
material was increased which increased the price of the products. Development of the
innovation lab shifted the employees towards the higher roles which creates dissatisfaction
among the lower level employees. Attaining of complex job roles created pressure of the
employees and created fear of failure (Pangarkar, 2015).
Impact of change upon leader effective, individuals and team
behaviour
The implementation of change in the organizational strategies demands for adoption of new
leadership styles that allows flexibility to the members and creation of new organizational

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structure. It leads to increase in part time workers and allows the leader to effectively
delegate the responsibilities and implement change in the organization.
The introduction of the innovation lab at Starbucks created fear among the individuals due to
the complexities of the job and also created conflicts among the team members because the
employees resist performing complex task and introduction of the new machines would
require training to handle them. The employee’s resistance affected the performance of the
team members. The members were not able to adopt the change and work efficiently towards
the common goal. In development of innovation lab some employees were shifted towards
higher roles which created dissatisfaction among the lower level employees and in turn
affected their performance (Appelbaum et al., 2015).
Strategies to minimise impact of change
The impact of change was minimised by providing the training to the employees to make
them understand the complex job roles and easy adoption of change. The leaders focused on
communicating the need for change and make them understand the importance of change in
the organization process. The company focused on providing monetary and non-monetary
benefits to the employees by increasing the minimum wage and praising the employees in
front of all the team members. It shares the transparent information with the employees and
the stakeholders to hold the trust and easily adapt the variations in the business (Helfat and
Martin, 2015).
Lewin’s Change management model
To minimize the negative impact of the variation Starbucks must focus on adopting Lewin’s
change management prototype. Under this model the first step is Unfreeze which includes
communicating with the teams and making them understand the need of change to minimize

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the resistance. The leaders will emphasize upon the need for the change and how the change
will bring profit to the company.
The second step is Change under which the company implements change in its process and
policies and the leaders guide for effective implementation of change. The last step is
Refreeze under which the company ensures that the change is embraced and the organization
becomes stable again (Hussain et al., 2018).
Conclusion
From the above discussion it is concluded that the complexities in the business environment
has created the emerging need to implement change in the organization process and policies.
The main drivers for the change include the external and the internal factor that necessitates
change.
It is analysed that Starbucks has developed innovation lab to respond to the changing
environment and has created 133 unique projects to satisfy the fluctuating needs and wants of
the customers and sustain the competitive advantage. The company has effectively managed
the resistance of the employees and can apply Lewin’s change management model to
minimize the impact of variation.

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References
Appelbaum, S. H., Degbe, M. C., MacDonald, O., and Nguyen-Quang, T. S. (2015)
Organizational outcomes of leadership style and resistance to change (Part One). Industrial
and Commercial Training, 47(2), 73-80.
Cameron, E. and Green, M., (2015) Making sense of change management: A complete guide
to the models, tools and techniques of organizational change. Kogan Page Publishers.
Celik, A. and Ozsoy, N., (2016) Organizational change: where have we come from and where
are we going. International journal of academic research in accounting, finance and
management sciences, 6(1), pp.134-141.
Chang, W. L., and Chen, S. T. (2015) The impact of World Café on entrepreneurial strategic
planning capability. Journal of Business Research, 68(6), 1283-1290.
Doppelt, B., (2017) Leading change toward sustainability: A change-management guide for
business, government and civil society. London: Routledge.
Haskova, K. (2015) Starbucks Marketing Analysis. CRIS-Bulletin of the Centre for Research
and Interdisciplinary Study, 2015(1), 11-29.
Hayes, J., (2018) The theory and practice of change management. Baskingstoke: Palgrave.

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Helfat, C. E., and Martin, J. A. (2015) Dynamic managerial capabilities: Review and
assessment of managerial impact on strategic change. Journal of management, 41(5), 1281-
1312.
Hussain, S. T., Lei, S., Akram, T., Haider, M. J., Hussain, S. H., and Ali, M. (2018) Kurt
Lewin's change model: A critical review of the role of leadership and employee involvement
in organizational change. Journal of Innovation & Knowledge, 3(3), 123-127.
Pangarkar, N. (2015) Performance implications of strategic changes: An integrative
framework. Business horizons, 58(3), 295-304.
Rogers, K. (2019) Starbucks is speeding up innovation at its Seattle research hub [Online].
Available from: https://www.cnbc.com/2019/05/02/starbucks-is-speeding-up-innovation-at-
its-seattle-research-hub.html [Accessed 20/6/19]
Sisson, D. C., and Bowen, S. A. (2017) Reputation management and authenticity: A case
study of Starbucks’ UK tax crisis and “# SpreadTheCheer” campaign. Journal of
Communication Management, 21(3), 287-302.
Taylor, K. (2019) Starbucks has a new innovation lab that developed more than 130 projects
in under a year, including tech updates, Instagram-worthy drinks, and soup-making
equipment [Online]. Available from: https://www.businessinsider.in/starbucks-has-a-new-
innovation-lab-that-developed-more-than-130-projects-in-under-a-year-including-tech-
updates-instagram-worthy-drinks-and-soup-making-equipment/articleshow/69774303.cms
[Accessed 20/6/19]

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Bibliography
Additional readings
Bakari, H., Hunjra, A.I. and Niazi, G.S.K. (2017) How does authentic leadership influence
planned organizational change? The role of employees’ perceptions: Integration of Theory of
Planned Behavior and Lewin's three step model. Journal of Change Management, 17(2),
pp.155-187.
Cummings, S., Bridgman, T. and Brown, K.G. (2016) Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. Human relations, 69(1), pp.33-60.
Hornstein, H.A. (2015) The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
pp.291-298.