Leading Change: Impact on Operations, Drivers, and Leadership

This report delves into the critical aspects of leadership and change management within organizations, using Starbucks and Costa Coffee as illustrative case studies. It begins by examining the impact of changes on operational strategies, including the effects of CEO transitions, market expansions, and technological advancements. The report then assesses both internal and external drivers of change, such as employee morale, supplier relationships, economic conditions, and political factors like Brexit. It analyzes how these drivers influence individual, team, and leadership behaviors. Furthermore, the report evaluates strategies to mitigate negative impacts, applies relevant theories and models to organizational change, and explores barriers to change, including leadership decision-making processes using force field analysis. Finally, it examines various leadership approaches to effectively manage change, evaluating the effectiveness of different leadership models to provide a comprehensive understanding of leading change in business environments.

Understanding and leading change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Impact of changes on different organisational operations and strategy...........................1
M1 Assess the different drivers of change in each of the given example with type of change
................................................................................................................................................3
D1...........................................................................................................................................4
TASK 2............................................................................................................................................4
P2. Internal and External drivers of change affecting team, individual and leadership.........4
P3 Evaluate measures that can be taken to minimise any negative impacts of change on
organisational behaviour........................................................................................................6
M2 Apply appropriate theories and models to response organisational change....................8
D2...........................................................................................................................................9
TASK 3............................................................................................................................................9
P4 Different barriers for change and determine how they influence leadership decision making
................................................................................................................................................9
M3/D3 Use of force field analysis with influences about decision making process............10
TASK 4..........................................................................................................................................11
P5 and M4 Different leadership approaches to deal with change........................................11
D.3 Evaluate effectiveness of leadership models.................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business managers are the ultimate part of an organisation where they need to determine
the changes used to take place in business. Managers and leaders have to take active participation
while evaluating any kind of change or alteration used to take place in business environment.
Such understanding will going to support a firm in order to sustain operations at keen dynamic
environment. This report is based on Starbucks whom provide quality coffee products to all their
users. For this context, management have to evaluate about various firms when they used to
determine change taking place in operations and strategy. Along with this, it will also describe
about the drivers of change on organisational behaviour and working. There will be various
barriers get evaluated which support at the time of leadership decision making. Thus, it will also
influence about the utilisation of leadership approaches when any kind of change and
modernisation identify.
TASK 1
P1. Impact of changes on different organisational operations and strategy
The term changes play an vital role in managing all the operations of business which
improve overall performance of business. Modification can be done in respect of culture,
choices, desire, leadership behaviour and organisation structure in order to achieve
organisational objectives. It is mainly done in order to adopt all the alteration coming in
environment so that competitive advantage can be gained. According to John stroke, it can be
explained as process in which changes are done in whole working structure, their objectives,
aims and methods used in order to sustain in external market. Starbucks and Costa Coffee have
executed all the alteration in their business practices for establishing long term relation with
customers.
STARBUCKS: - It is one of famous coffee chain established in UK and planning to run
their business all over the world and open 23,768 stores in different countries. The USP of
company is the taste and quality standard maintain by company which distinguish their brand
value from other rivalry. It is very oldest brand found in 1971 and running coffee business for
past 47 years. Apart from coffee they are dealing in beverages, baked goods, tea and smoothies.
COSTA COFFEE: - It is an multinational coffee house whose headquartered is situated in
Dunstable, England. It is second largest coffee company after Starbucks who is subsidiary of
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Whitbread. Company expand their business by opening around 3401 outlets in which UK is
covering major share of 2,121 restaurants. Further organisation dealing in sandwiches, coffee,
ice-drinks for their target audiences.
Following are the kind of changes which were made in the strategies and operation of Starbucks
described below: -
Change in Starbucks
In recent report it has been acknowledge that CEO of this company announced that he is
stepping down from his position. This alteration will result in formation of new strategies from
management side because the new CEO which is appointed are different in their thinking and
have their own knowledge and skills.
Old and new strategy:-
In today scenerio Starbucks is not concentrate on premium segment market rather that
that they create major strategies in order to focus on target customers of income group. But now
they have made alteration in their tactics and their main focus is on premium segment and faster
expansion in various parts of world.. They are also planning to open stores in developing
economies like India because they know that this is an unorganized market which has great
potential. The main benefits company get large number of customers having different needs and
wants which must be satisfy with their products. Their is not doubt that it is positive strategy of
expanding business and grabbing the opportunities of that market. This company is not going to
use penetration pricing strategy because they are not suited to their premium segment.
Another modifications is related to technology, this company always believe in using
latest techniques and innovations for making coffee. Technology is important part of whole
operational procedure. Recently this organisation has started focusing on updating their digital
platform and they have adopted new techniques for making coffee and other products. Earlier,
adopting latest technology was not considered as part of their long term strategy but now,
because of rapid changes in technology coming in dynamic environment they are using digital
platform for promoting their goods and services which lead to increase in brand image.
Costa Coffee
Presently UK votes for existing EU. This a big political change which made a huge effect
on overall growth strategies of Cost Coffee organisation. Increasing national living wages is
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another alterations which forced this company to make modifications is their management
operations.
Old and New strategy
Costa Coffee is well known for their fast growth and expansion. But Brexit forced them
to change this strategies and tactics because they known that in upcoming time they have to
follow various legal compliances and other troubles, at the time of opening stores in European
countries. In order to cope up with all environmental changes, Costa Coffee need to formulate
new strategy which concentrate on global expansion. They are also marketing their uniqueness
i.e. high quality coffee beans. Increase in minimum wage made negative impact on profit of this
organisation. This enterprise has adopted new strategy i.e. raise price of their offers so they can
manage alterations in effective way. They are also working on reducing cost of production by
focusing on operational process.
Strategies STARBUCKS COSTA COFFEE
Competency based strategies Company offer various type of
taste to its customers which
encourage them to visit again
and again. It offers a
competitive benefit to
enterprise and help in generate
more number of profits.
Firm collect data and analyse
the same in order to offer
them products as per their
specific requirements and this
support firm in retain them for
a long time period.
Pricing based strategies Company examine various
elements before set the final
price of its products as this is
the only factor that largely
affect the buying decision of
customers.
Starbucks gives a tough
competition to costa coffee
which largely affect the
pricing strategies of
enterprise.
M1 Assess the different drivers of change in each of the given example with type of change
Various drivers of change for a business are internal and external drivers of change. In
this aspect, business need to consider various aspects like morale of staff members, with suitable
SWOT analysis. This will enable them in managing change better so that desire outcome could
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be assess. Along with this, external drivers of change get evaluated through PESTEL analysis so
that better understanding of environment could be reflected. The new change is planned change
which not going to impacted the working operations of Starbucks more. This result in estimating
better and suitable growth gain so that effectiveness and efficiency could be maintaining and
manage. Planned changes are always controllable to business authority through which they
become able to deal at market world in more definite course of frame.
D1
In order to manage change in an organisation it is recommended that same should be well
communicated at the work place so that the desired objective associated with same can be
achieved. Proper planning should be done well in advance so that arrangements that are
associated with same can be made properly. if the work force is not provided with training to
implement change than there are chances that the actual result do not match with the desired one.
Planning is known as a key function of every business organisation without this firm cannot
achieve its set business goals and objectives. Before introduce any change at workplace it is very
essential for manager to formulate a plan as this provide direction and at the same time help in
utilise all resources at an optimum level. Planning is the one which help in get maximum benefits
related with the introduced change at workplace.
TASK 2
P2. Internal and External drivers of change affecting team, individual and leadership
Modifications in business will take place either in direct or indirect manner. This will
provide affect to entire business activities as well. Reaction of affiliation on it will be positive
and negative as well. Henceforth, this will be divided into two parts, one is internal and another
is external. Influence of these alteration will be see on working execution of leaders, member of
group and in addition individual.
Impact of internal drivers: There are many things which will take place within working
environment, it will be either event or circumstances. It will easily controlled by superior of
company. There are some drivers which will comprise into this:
Morale of staff members: If a person is much confident and capable them he will
accomplish his task effectively. This will render growth and success of an enterprise. But if, any
employee is having less spirit then it will affect working operation in an adverse manner.
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Therefore, it is required for superior to encourage staff members so that they will accomplish
task with maximum effectiveness. It can be in two form, one is monetary and another is non
monetary. Manager will take assistance of workers as this improve their confidence level.
Strength: Starbucks is having an appropriate relations with their suppliers. It will render
positive affect on style of leadership. This boost morale and confidence of leader in an effective
way. Many kind of teams are in an enterprise, such as purchasing, they will take support of
supplier due to better relationship. As a result, they will be able to run and regulate affiliation in
a smooth manner. This aids them to gain maximum revenues and market share as well.
Weakness: There are some workers of company are head of two department, which will
develop confusion. It results to raise lots of clashes in an association.
Opportunities: Starbucks will expand their business in some other marketplace, such as
European and Latin American. They will formulate some contract with airline also, that will help
them to increase level of perception of individuals. This will done by manager appropriately and
for this, they need to alter their leadership styles minor. Along with, they will prepare some
groups for this.
Threats: In forthcoming duration, value of coffee bean will get raised which will help an
association to earn maximum revenues. They will take assistance of staff members into
procedure of decision making; therefore, they will be able to maintain recent cost in a significant
manner. It is must for people to use available resources in an appropriate manner; thus, they will
overcome from the influence of enhanced price.
Impact of external drivers: This sort of circumstances will happened outside the association.
These are stated as beneath:
Economic condition: There is an affirmative relation amongst organisation as well as
economic surrounding. This has been analysed that company's performance and in addition
function is highly associated with on going economic environment. If there is inflation or
recession in nation then, this will carter impact to operational activities. Therefore, it is required
for leader to forecast these kind of situations so they will develop some strategies or policies in
this relation and deal with this significantly. Economic growth of United Kingdom is much less
which will provide affect to organisational profits and they will not be able to provide promotion,
incentives, bonus etc. to staff members.
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New competitors: If there is high competition at marketplace then this will develop more
obstacles for firm. New companies will come with latest or new methods, technologies, thoughts,
innovations and so on. They will accomplishing requirements and desires of people at affordable
values as well. Thus, it is must for manager of Starbucks to create some effective strategies so
they will be able to deal with rivals in an effective manner.
Political factors: This kind of element will provide influence to an organisation in an
direct manner. It will be many forms, such as government policies, political stability, regulatory
parties, tax policy and so on. This has been examined that Brexit brings political instability in
United Kingdom and this will affect overall operational exercise of company adversly. This
impacted leadership as well because they need to modify their style of leadership; therefore, they
will run or regulate business at marketplace properly. In recent time, they are using Democratic
style which help them to take support of employees into decision making process.
Technological capacity: It is must for an affiliation to use latest and unique method into
business because this enables them to accomplish requirements of people in an appropriate
manner. They have to alter their products and services as per demand of customers as this helps
them to take benefits form rivals at marketplace. To decease waiting time or take benefits from
competitors, Starbucks launched a mobile application, through which people will place their
order. It aids them to fulfil requirements and demands of consumers within minimum period of
time.
Legal change: There are many nations like United Kingdom, regulatory body has
increase minimum wages. It bind company to enhance salaries of staff members. Along with,
many time superior needs to use situational style of leadership so that they will be able to sort
out or deal any type of circumstances in an effective and efficient manner.
P3 Evaluate measures that can be taken to minimise any negative impacts of change on
organisational behaviour
Whenever any kind of alteration arise in working and management of a company it lead
to facilitate growth and decline options both. Its all up to managers to modify and alter the
growth and development by considering all major changes lead to take place during business
operations. For deriving better and supportive results, business need to concentrate on changes
and alteration first and then implement such strategies which used to deal with such problems
and issues. Whenever any change arise, suitable and effective strategies required to implement
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properly so that better and supportive outcome could be derive. Managers of a business need to
understand such changes and modifications properly so that better deriving and supportive
outcome could be assess for better and long term success.
Most of the associate do not want to modify business activities ad operations which
further create problem in operations and thus evaluated as major barrier in company growth and
success. Thus, manmagers and leaders have to perform their duty properly where they need to
adopt and determine such steps which enable sand facilitate an option to minimise such negative
course in consideration so that beneficial and effective outcome could be enhance (How to
Overcome Resistance to Change in an Organization, 2018):
 Creation of pathway: It is essential for supervisors or an association to make a pathway
for imparting every last sort of data to workers about every new activity. Alongside this,
business directors need to teach key administration to give all refresh subtle elements to
their group in group gatherings.
 Explain about plans: To manage changes or modification into business, in which
directors need to convey each assent about objective and system of administration to
every last representative appropriately with the goal that such changes negative effect get
limit as all specialists end up ready to legitimize and perform obliged obligation
legitimately.
 Participation in meetings and seminars groups: One of an approach to manage change
and lessen its negative effect is taking dynamic interest in group gatherings and different
practical things legitimately with the goal that related procedure get render and convey in
a suitable edge. Despite the fact that, interest in gatherings and workshops bunch is a
fundamental assent for each business when they prompt oversee protection from change.
 Manage planning and its implementation: Administration need to decide one individual
from each gathering who can manage different assents in a proper way. Therefore, such
individual real work is simply to oversee plan and make them viable in nature by
reasonable usage of it. Therefore, business supervisors should be more spotlight on
oversee arranging and its usage.
 Implementation of plan with suitable goals and targets: The last advance is to actualize
the methodology which is related with change. Consequently, business needs to make
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some point of reference and objectives viably with the goal that change get oversee
successfully and in this manner all odds of negative perspectives get limit.
Starbucks have to combine and align all these aspects with the analytical tools and
segments of a company which further assist them to manage changes. Business could suppose to
be used Burke Litwan Model of change which define about change and effect relationship
between 12 organisational dimensions which associated as key factors. Thus, management have
to relate these drivers of management with external factors of environment and then implement
such changes at business in a define and appropriate manner. Although, such aspect will directly
support in increase chances of better and associated return. Starbucks have to create a path first
and then assign such responsibility to several major individual. All these members required to
explain the plans to others and then organise a seminar and meeting. It will enable in determine
the appropriate pathway to deal with such modification properly and then create plan on the basis
of provided information. This section will support Starbucks to manage changes and alteration
from business and maximise effectiveness.
M2 Apply appropriate theories and models to response organisational change
Whenever any kind of modification arise into business, it is really essential for an
organisation to estimated that things went done well or not. Managers need to understand about
various theories and models properly so that change could be implemented in better and signified
manner. For a project Burke Litwan model of change could be used under which 12 dimension
of modifications could be listed. Starbucks could implement this section in their working while
managing change properly. This will result in analysing better and considerable change at
workplace. Thus technological implementation is a kind of planned change because it require
huge fund which might not reflect so much deviation on business and its related operations.
Burke Litwin model directly can bring change in the firm. It has various purposes.
Organization can create various strategies and policies so that it can give a direction to all staff
members. They can also change their culture so that they can give a motivating environment to
the company. They can also create a democratic structure so that they can create good and
positive environment in company. This can directly bring changes in firm. One of the main
reason why this model is useful for implement change at workplace is that it helps in identify the
external elements that affect the change and that should be consider by manager while formulate
plan for manage change at workplace. Further, policies and strategies formulated by top
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management require to examine by the employee’s point of view. When manager use this model
for implement change at workplace then it helps in identify the leadership style and organization
culture that should be there at workplace. As per this model, strategy, teamwork, monitor and
measure all are very essential element for implement and manage change at workplace.
D2
According to Thomas, T. and et. al., (2013) the Force Field analysis is a graphical tool or
visualization tool for supporting decision making. It can be used equally by individuals or teams.
In 1951Kurt Lewin developed the concept based in the physical sciences. He originally proposed
it as a tool to understand problem based situations in social science and to effect planned change.
A force Field model is also used which directly helps the company top bring changes in
firm. There are various forces which can affect the environment. Thus it include internal factors
such as outdated techniques, reducing the team morale. External factors such as changing
disruptive tools and thus they have to create tools so that they can easily earn revenues. Various
factors that are against change and thus company have to create many plans.
TASK 3
P4 Different barriers for change and determine how they influence leadership decision making
Barriers are a part of successful business organisation which have to understand by
managers of a company. Such barriers of change need to understand by leaders of a company as
they are the ones which impacted decision making badly. Thus, such barrier need to understand
and evaluated properly which further not lead to impacted the working operations and decision
of leaders. For this consideration, business suppose to use organisational culture which proposed
by the Edgar Schien so that effect of culture and leadership lead to understand in better and
definite manner. A major problem or issue arise for business and a working association due to
number of employees whom belong to differ kind of culture and aspects. It could also linked up
with bureaucracy of working management and environment interference where every level of
management get impacted most.
Many times business environment get fluctuate due to dynamic in nature as thus, such
consideration also influence the decision making of leaders. Hence, to deal with such problem,
leaders lead to implement a culture which might be completely differ from previous one and
work as a major barrier for a company. Hence, business leaders need to recognise and understand
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