BTEC Leading Change Report: Analyzing Change in Organizations

This report provides a comprehensive analysis of change management within organizations, focusing on the impact of change on strategies and operations. It examines the experiences of Costa Coffee and Starbucks, particularly in response to the COVID-19 pandemic, analyzing how these companies adapted their services and operations. The report delves into internal and external drivers of change, utilizing PESTEL and SWOT analyses to evaluate Metro Bank. It also explores measures to minimize negative impacts of change, including Kotter's and Lewin's models, and identifies barriers to change, using the Force Field Analysis Model. Finally, the report investigates different leadership approaches, such as Autocratic, Democratic, and Transformational leadership, in navigating organizational change. The report aims to offer insights into effective change management practices and leadership strategies.

Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Impact of change on an organization's strategy and operations............................................3
P2. Internal and external drivers of change ................................................................................5
P3. Measures taken to minimize negative impacts of change.....................................................5
P4. Different barriers to change and their influence on decision-making...................................7
P5. Different leadership approaches to deal change in the organization.....................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Change management is defined as methods in which changes are implemented or taken
place in both external and internal business environment for growth and development of
organization (Hayes, 2018). Different steps are taken for changes to occur in organization which
includes preparing employees, monitoring post and pre changes in activities for successful
achievement of goals and objectives by following effective and efficient ways. Change is
necessary for organization to progress on positive terms.
The report will analyse the impact of change on strategies and operations of Costa Coffee
and Starbucks company. It will also evaluate the internal and external drivers of change which
will be elaborated through PESTEL and SWOT analysis. Measures taken to minimize negative
impact of change will be analysed which will constitute Kotter's Eight — Step Model of change
and Lewin's Three — Step Model of change. Different barriers to change and their influence on
decision-making will be evaluated which will consist of Force Field Analysis Model including
Driving and Restraining Forces. Finally, different leadership approaches to deal change will be
explained through Autocratic Leadership, Democratic Leadership and Transformational
Leadership. Thus, leadership and leading changes will be explained throughout the report
depicting the importance it holds in different organizations.
MAIN BODY
P1. Impact of change on an organization's strategy and operations
When an organization changes its strategy it has to go through various other changes
which occur in between the process of that change.
For Costa Coffee -
With Costa Coffee there has been a major change which is defined as Covid — 19
pandemic. Due to this pandemic, Costa Coffee has changes its strategy and operations of
providing services and products to its customers (Qi, Huo, Wang and et.al., 2017). Largely

because the customers are self — isolated, they have changed the ways of providing services to
its customers and moreover have redesigned their products and services or some way have
created new services according to the demands and wants of customers. Costa Coffee has
changed the ways of providing services to the customers during this pandemic. They are taking
online orders through the website and contactless delivery of products are being served to the
customers. This is due to the technology advancements over the years which is helping the
company to serve best the customers. Also, the Costa Coffee is ensuring that they take
preventive measures concerning Health and Safety aspects of both their customers and
individuals in the company.
Costa Coffee has formulated a new strategy which focuses on the technology aspect. The
company has made advancements in the technology through which the company provides a
tailored — version of ordering application or the website. Through ordering on mobile phones
the services and products are easily made available to the customers in this pandemic. This has
also enhanced the customer experience as they are now able to communicate their reviews on the
services being offered to them.
Pandemic has largely impacted the changes which are done on the organization's strategy
and its operations. Due to pandemic, strategy and operations of Costa Coffee has changed which
incurs to loss and largely affects sales and profit of company as whole (He and Harris, 2020).
The operations of company have now been framed in such a manner that it provides its services
to the customers which are based on satisfying the needs and wants of customers. The pandemic
has degraded the value of customers as mobility factor has been decreased due to the risk caused
due Covid — 19.
The changes which have taken place during this pandemic at Costa Coffee are as follows -
 Change in role of Assistant Store Manager is at risk and under consultation.
 Costa Coffee has safely and quickly opened 2,400 stores which are now trading with the
help of Government's VAT reduction.
 New “Eat Out to Help Out” scheme has been launched for trade to recover to pre —
covid levels (Kerigan, 2020).
 A Furlough Scheme is introduced to provide financial support and to look after the team
members. This scheme is helpfully provided by Government.

 Costa Coffee has also made some investments in re — opening and safe acceleration of
stores for team members of company and customers.
 Costa Coffee has also made changes by freezing all pay increases within support centre
and has cut all non-essential expenditure.
Thus, this pandemic change has affected operation and strategy of Costa Coffee resulting
in overall changes of company's procedures. As the operations and strategy are based on
changes, this has also affected not only the company but customers as well. The customer
engagement has decreased as they fear of being allowing services to reach their doorstep during
this pandemic.
For Starbucks — Due to Covid — 19, Starbucks has been affected largely on its strategy and
the operations which the company had formulated. The changes due to pandemic have impacted
the operations of the organization as the revenue of the company had fallen 38% during the past
pandemic year (Sarkis, 2020). Due to this problem, the company was still optimistic about the
years to come rather this change has impacted the organization on a positive basis.
The company has planned to move progressively by allowing and gaining opportunities
which provides them profits along with growth and development factor. Digital touchpoints like
mobile orders and Starbucks reward loyalty programs both aspects saw an up tick in the
customer engagement and demand in the last quarter. Delivery of products and services of
Starbucks has seen a boom during Pandemic (Pinzaru, Zbuchea and Anghel, 2020). In this
Pandemic, Starbucks has not been largely affected rather has reopened 60 stores and have
strengthened their delivery and takeaway procedures to reach to customers effectively and
efficiently by providing their best of services and products.
The change has impacted the strategy and operation systems of company but Starbucks
are much more focused on maintaining their customer base by engaging with them on the digital
media. The company has also proven to emerge up strong as they are more inclined towards
trusted brands among which is Starbucks.
Thus, pandemic has impacted positive change on organization's strategy and operations to
come up with much stronger base and provide the customers with best of its quality services and
products. Due to pandemic the company has changed its ways of working and are focusing more
on customers to provide services according to their needs and wants. As through this, the

company will be able to gain more advantage in near future while growing along with this
different set of operation and strategy framed.
Similarities of operations between Costa Coffee and Starbucks -
 Layout of Starbucks and Costa Coffee are similar in nature.
 Costa Coffee and Starbucks are places where people meet and gather on coffee.
 The assortment of products and services offered at Starbucks and Costa Coffee are
similar (Pinzaru, Zbuchea and Anghel, 2020).
 Both the companies are eyeing global expansion for years to serve the customers best of
their services and products effectively and efficiently.
P2. Internal and external drivers of change
Metro Bank Plc is a retail and commercial bank which is operating in UK. The bank is
committed to provide services to customers, kids and community. Metro Bank provides services
such as safe deposit boxes to store valuables and important documents. The eligible money is
deposited at Metro Bank is protected by FSCS.
Leadership is defined as management approach in which the leaders help the organization
set strategic goals by motivating and encouraging individuals within group to successfully carry
the tasks and work processes to be effectively and efficiently attainable (Rosari, 2019).
The internal and external drivers of change for Metro Bank are elaborated through
PESTEL and SWOT analysis -
PESTEL Analysis -
Political Factors — The political stability of Metro Bank provide high, friendly business
environment with current market growth trends which takes place in external environment. The
company also follows trade and taxation policies for effective functioning (Yusop, 2018).
Policies and regulations framed by Government are followed by leader of the company. These
policies and procedures drives changes which are implemented in organization by leader.
Economic Factors — The GDP growth of Metro Bank determines its ability to pursue long —
term strategies which are formed for growth and development of the organization. The global
expansion strategies of the bank are influenced by the financial market efficiency to enter into
new markets. Different growth strategies are framed which progress towards change in

organization. These strategies are framed by leaders and the team members follow them wisely
and in proper manner.
Social Factors — Demographic characteristics of Metro Bank helps the company in choosing
right market segment with high growth potential. Metro Bank focuses on the consumer
behaviour patterns which helps in increasing the productivity of the services rendered by the
company (Çitilci and Akbalık, 2020). Bank provides the services to customers as per their needs
and wants for which changes are taken place in services to be rendered as per requirements.
These changes are implemented by the leaders in Metro Bank.
Technological Factors — The company leverages the opportunities offered by social media
marketing which improves business performance and their efficiency. The technological
innovations made by the company helps to deliver its services and products on easier basis.
Changes in technology has improved the ways of Banking done through Augmented Reality,
Blockchain, API platforms, Hybrid Cloud etc. these changes are taken into consideration by the
leaders of bank are applied for the advancement in technology for better services to avail to
customers.
Environmental Factors — The company encourages in producing renewable technologies and
benefits from it through its long — term sustainability. Organization also recycles its products
and services towards biodegradable management systems. Changes are being made in the
Banking process to safeguard the environment. Changes such as making soft copy of important
documents is followed. Leaders ensure that this change is primarily concerned and being focused
upon by the team members.
Legal Factors — Employee protection laws are followed by the company to ensure their good
health and safety. Along with this consumer protection laws are also followed by the company
which enables consumers privacy and security concerns. Changes in Legal banking laws and
regulations are being framed by government which are framed by leaders to be followed by team
members (Thakur, 2021).
The leaders and team members deal with these changes in positive manner to have more
chances of growth and development in future and the team members indulge into these changes
by reverting in progressive way.
SWOT Analysis -

Strength — Metro Bank holds the strength that it has strong dealer and distributor community.
Due to its strong brand portfolio, it has expanded into new product categories and services. The
company has also integrated other technology companies which helps in building its operations
and effective supply chain flow (Teoli and An, 2019). Its main strength is that the company holds
strong distribution network progressively.
Weakness — Metro Bank faces challenges with new entrants in same segment of services and
products. The company lacks in advancement of its technologies making it the biggest weakness
which also leads to poor product demand forecasting in market. Organization is also very poor
while merging with different work cultures. The structure of organization is not compatible with
business model which company follows.
Opportunity — The Green Drive opened by government provides an opportunity for
procurement of Metro Bank's products (Lurati and Zamparini, 2018). New trends which are
observed in consumers can open to vast business new marketplace. New pricing strategies can
help company to maintain customer base and engage them towards their great services. Thus,
these opportunities will help company to develop more on terms of producing effective products.
Threats — Intense competition has decreased the value of the company by affecting its
profitability and sales. Spick-and-Span environment regulations becomes threat to existing
products of the company. New technologies developed by the competitors affects Metro Bank
which becomes a serious threat to its products and services. Continuous fluctuations in market
affects the company's growth and development in future run.
The external drivers of change affecting leadership, team and individual behaviours within
Metro Bank as -
Leaders of Metro Bank get affected by the changes through external drivers in which political
factor is influenced. Leaders must educate themselves towards the current political factors which
affects the marketplace as this aspect influences the leaders as how they accomplish their goals
and objectives.
Leadership, team and individual behaviour also affected by the economic factors which involves
suppliers, customers and competitors position in the marketplace (Espinoza, Proaño,
Villavicencio and et.al., 2019). Leaders and team members should take in account the economic
measures to successfully interpret the market conditions.

Social factors also affect the leadership, team and individual behaviour of the company and in
this demographic and cultural aspect in which leaders are affected by the current trends running
in the market for designing the product and services for its consumers.
Leadership behaviour is also affected by the technology factor which the is incurred by the
Metro Bank. Changes in the technology affects the leadership styles. This situation can be
improved when leaders take corrective actions towards the Research and Development segment
for making operations easier.
The internal drivers of change affecting leadership, team and individual behaviour within
Metro Bank are -
As the strength of company is that it holds strong distribution channel and effective supply
chain which adds a strong point as technology factor functioning in company (Gürel and Tat,
2017). This strength shows that Metro Bank has advanced technology which enhances its
products skilfully to reach to its customers.
Weakness of the company affects the leadership and team behaviour which denotes
incompatible organizational structure followed by the social factor being weak in the company.
These factors or drivers affects team and individual behaviour as these aspects influence
individual's performance resulting to either positive or negative results. The positive factors
include the strengths and opportunities and negative factors include weaknesses and threats.
When there are changes in external and internal drivers, it is also seen that individuals and teams
are affected. This also changes their way of working towards a task (Cox and et.al., 2018).
Leaders have dealt with these changes by observing the wide horizon of growth and
development which is seen after the changes takes place. This has improved the effectiveness of
thinking abilities which leaders possess.
P3. Measures taken to minimize negative impacts of change
Measures taken to minimize negative impacts of change are -
 Training should be provided to the individuals so that they do not find any difficulties
when there arise any urgent crisis situation.
 Communication skills should be focused on to minimize the negative impacts of change
taking place in the company. This can be done by improving employee morale and
encouraging them to achieve the organizational goals (Castillo and et.al., 2018).

 Proper leadership styles should be followed and applied so that leaders are aware of the
capabilities of their team members in the organization.
 Realistic timelines should be set such that accomplishment of objectives and goals are
done before time effectively and efficiently.
 Organization should take charge of the circumstances which affects the change.
These changes are also demonstrated by applying these two models of change that are explained
below-
Kotter's Eight — Step Change Model and Lewin's Three — Step Model of Change for Metro
Bank-
Kotter's Eight — Step Model of Change — Kotter introduced the Eight — Step Model of
change which is elaborated as below - Step 1 — Create Urgency — Develop a sense of urgency for change to take place. For
this change to happen, identifying the potential threats, examining opportunities for the
bank to prosper in the marketplace (Galli, 2018). Along with this, customers support,
help from stakeholders and bank's individuals can add up for changes taking place. Step 2 — Form a Powerful Coalition — Formation of powerful coalition is necessary
which can be done through convincing individuals of the Metro Bank by forming a team
and bringing them together. This can be done by identifying true leaders of the
organization and working with them for the purpose. Step 3 — Create a Vision for Change — Different concepts and ideas of change should
be focused upon so that vision of the Metro Bank is clear. This can be done by
determining the values of change, creating a strategy to execute that vision, Step 4 — Communicate the Vision — Communicating the vision within the bank will
help in minimizing negative impacts of changes which can take place. This can be done
by talking often about the change vision, by addressing individuals concerns, applying
vision to all aspects of operation within the organization. Step 5 — Remove Obstacles — By removing the obstacles, the bank will lead to changes
in positive way. This can be done by hiring leaders which progresses change, recognizing
and rewarding individuals who make the change happen and taking action to remove
barriers (Rajan and Ganesan, 2017).

 Step 6 — Create Short — Term Wins — Create short — term targets which can be done
by not choosing targets which are expensive, by analysing the pros and cons of the targets
to be achieved and rewarding the employees of the bank who help in meeting those
targets. Step 7 — Build on the Change — This can be done by setting goals to continue building
and improving the performance and by bringing new ideas and creativity through leaders
and agents of the Metro Bank.
 Step 8 — Anchor the Changes in Corporate Culture — By anchoring the changes, the
bank can grow more and develop its techniques in changes while they take place. This is
done by progressing over the chances, changing the ideals and values while the
organization hires and trains new staff and by creating plans to change the key leaders.
Lewin's Three — Step Model of Change — This model is a three stage process of change
which constitutes - Unfreeze — This first stage of change involves preparing the bank to accept the change
which is necessary (Hussain, Lei, Akram and et.al., 2018). This involves the breakdown
of previous methods of procedures and framing the new methods of operation.
Unfreezing changes the internal structure of work procedures which includes changes in
sales figure, measures taken to improve customer satisfaction and other controlled
measures which takes place during the changes in the formation of new system. Change — In this stage, individuals of the Metro Bank resolve their uncertainty and
work on the new ways to do things. Change takes place in progressive way to move
forward in new directions and ways that lead to innovative ideas and forms pathway for
growth and development.
 Refreeze — When the changes are proceeding to take place and the Metro Bank embrace
the new ways of working, the company is ready to refreeze (Bakari, Hunjra and Niazi,
2017). Refreezing factors include organization's stable chart, job descriptions that are
consistent. This step also ensures that changes are taking place on day to day basis and
function accordingly. This process also ensures stability in positive way that it
encourages the new ways to work effectively and efficiently.

P4. Different barriers to change and their influence on decision-making
Force Field Analysis Model is applied for the decision-making in Change Management -
This model emphasized on counterbalancing forces which are present during any
situation. There are two types of forces which complete this model -
Driving Forces — Driving forces are the forces which push a situation in a particular direction.
These are encouraging forces which helps in supporting the goals and objectives of the
organization. These forces aid John Lewis company to look at the positive side of success and
facilitate the changes which takes place during action (Mak and Chang, 2019). Some examples
are — New personnel involvement, changes taking place in the market structure, advancement in
technology etc. New personnel involvement will encourage and drive the new individuals to
work in progress with the John Lewis company's development and contribute to its different
ways in which goals and objectives are been framed. Advancement in technology adds up to
having various ways in which Artificial intelligence helps the company to modify products and
services of organization overall.
Restraining Forces — Restraining forces refer to the forces which work to block or enable
negative progress towards a goal or objective set. These forces limit or decrease the driving
forces which assists in accomplishment of goals (Eynat Gal, 2017). The restrainment force
becomes the stoppage to the progress and the changes which takes place for the betterment of the
organization as whole. Some examples of this force are — Individuals fearing failure which
restrains them to perform effectively, organization's apathy towards negative side, hostility being
served in a decreased manner. These factors incur restrainment and negatively affects the
company's success and profitability aspect while decreasing the morality of the employees.
There are different barriers to change in John Lewis company which are explained as -
 Lack of Clear Scope — One of the most common barriers to accelerate the change is the
lack of understanding of what a change is. John Lewis is not able to analyse the clear
picture of the consequences of change which becomes its barrier (Rafferty and
Jimmieson, 2017).
 Prioritization Problems — The company in this situation is not able to prioritize its
resources and projects along with time which becomes a barrier of change.