Analysis of Change Management: Coca-Cola and Pepsi Report

This report delves into the intricacies of change management within organizations, using Coca-Cola and Pepsi as comparative case studies. It examines the impact of change on company strategy and operations, exploring both internal and external drivers of change, such as consumer behavior, technological advancements, and competitor actions. The report evaluates measures to mitigate the adverse effects of change on firm behavior, analyzing barriers to change and their influence on leadership decision-making. Furthermore, it investigates different leadership approaches to address organizational changes, including the application of force field analysis to understand the forces driving and resisting change. Through this comprehensive analysis, the report aims to provide a thorough understanding of change management principles and practices in the context of these two major corporations, offering valuable insights for students and professionals alike.

Understanding and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparing ways in which change impacts on company's strategy and operations..............1
P2. Diverse ways in which internal and external drivers of change influence change...............3
P3 Evaluate measures for lowering adverse effects of change on firm behaviour.....................5
TASK 2............................................................................................................................................7
P4 Different barriers for change and their influence on leadership decision making.................7
TASK 3..........................................................................................................................................10
P5 Different leadership approaches to deal with the changes in organisation..........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Change is the essential aspect of life avail in sustainable development to an individual or
organisation. However, It is the significant elements that us utilised through various organisation
for becoming and developing as the leading organisation in business sector (Anderson and
Anderson, 2010). The report will discuss about the change, anticipation, planning and rendering
organisation alternation. Despite this, here is requirements to have pre-set competent and
intervention timely that are require to obtain advantages for decreasing risk of fall or loss to fir.
For efficient completion of this report, it will needed to develop a good knowledge and headship
information comparing between both companies which is Coca-Cola and Pepsi as well as there
contribution in the change management.
TASK 1
P1. Comparing ways in which change impacts on company's strategy and operations
Change
Change is a process of alternation to become different from the previous version of one.
For a business organisation development, this is one of the most effective tools. If Coca-Coal do
not make alternations and modifications in their organisation in context of their competitor then
the firm is going to face various issues and backward in the business industry and company will
become invisible in prospects of consumer. Henceforth, through conducting the need of change
in the competitive market, the company need to make positive alternations in their working
environment (Booth, Wade and Walker, 2014). Also there can be various reason for which the
company may have to face or implement changes which is mentioned as below:
Coca-Cola and Pepsi may need to execute some new changes in the organisation for the
following reasons:
 To response for altering environment of business.
 To develop the performance of entire organisation.
 To respond demands of consumer in positive way.
 To enhance operations efficiency of company.
 To develop work ad performance of employee.
 To build and structure effective practices as well as devising standards for company.
 To enlarge amount of investment return and profitability.
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Above mentioned are the major causes behind major changes in companies like Pepsi and
Coca-Coal which lead them toward gaining competitive edge as well as better survival. Hence,
companies require to consider management for changes as a tool for controlling and maintaining
their growth on industry.
Coca-cola have executed modification in company in late 1980's for expanding in market
and understanding services. There is a requirements for product enhancement that was able to
revive the stake of market as Pepsi was the strong and powerful stakeholder of company who
was developing drastically (Carrington, Deppeler and Moss, 2010). Subsequently, the
organisation manufactured and produced new products which was not liked by consumer as
much. So the higher authorities of Coca_Cola company began to evolve better and effective
product quality and emerge with Coca-Cola Classic that become very popular product and
retained stake of company in competitive international trade.
Thus, There was a requirements to change the operations and strategy for getting to
competitive edges.
Strategy: For executing change in effective manner, the organisation was needed to adopt
a good strategy which could be implement in firm more effectively. Thus, it can be stated that
without strategy framing, the organisation can not implement any plan or alternation as well as
not able to gain efficiency. Strategy of change management is a tool that helps in implementation
process of adoption of any alternation in an organisation.
Change Impact on Operations and Strategy: Every little or large change, affect the
operations and strategies of an organisation as well as linked processes. Although, it can be
noticed which organisation is utilising its effective plan that could be optimised by respected
companies:
Coca-Cola Pepsi
Change drivers Competition Innovation
Strategy Business strategy Corporate strategy
Operations Operations of Coca- Cola
changes physically popular as
well as it mainly concentrate
their operations in order to
Operations of Pepsi are based
highly on online service and
the company pushed itself as
online supermarket retailing
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sustain consumer. store.
P2. Diverse ways in which internal and external drivers of change influence change
Change Management: In an organisation, change management refer to administration of
alternation in adequate way. However, there are various professional who have studied and
deliver their diverged views and opinions in regard of change management. Generally, there are
various changes management phases i.e. controlling change, preparing changes and reinforcing
change.
Preparing change cover review and investigation for alternation for emerging and capable
strategy that is suitable for organization strengths (Understanding and Leading Change, 2017).
Cover process such as designing and execution of plans is structured in the Handling change on
the initial stage. The final phase in reinforcements which refer to the procedure involving
collecting and analysing data of feedbacks, understanding gaps and managing recognising
resistance level in external and internal environment in organisation for effective execution of
process of change management.
Though, change cater new innovation opportunities along with it for company in external
environment and industry. A structure of three layer business intelligence can be built for
collecting and analysing information from various sources such as industry, external sources like
attitude change, demographic and modified knowledge etc.
Here are mentioned those five external change factors that affect the leadership,
individual and team behaviour. Consumer-led Drivers: market changes forms such as change of behaviour in demands,
alternation in income, change in demographic that alter convenience and value change
definition (Suchman, Sluyter and Williamson Eds., 2011). Through understanding all
above elements, Pepsi and Coca-Cola could make some basic tools which is utilised
through organisation for gaining diverse potential clients of services users. Technology-led Drivers: According to this, the advancements in technology can be
organised in adequate manner. It is made in radical innovation manner. So that the
business of Pepsi and Coca-Cola can be developed for attaining their competitive edge in
business trade.
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 Capital Led Drivers: This change in often formed by the institutional investors that result
in alternation in the performance standards. Competitors-led Drivers: According to this, through recent contenders and altered
entrants, new challenges can be faced.
 Government-led Driver: Policy Initiative and Legislative changes that can develop
company and its initials.
These elements affect the respected organisation's business in efficient way so that the
company can gain more competitive benefits in market more than other companies. Here are
discussed some external drivers which can affect teams, individual or leadership behaviour
changes that is evaluated through PEST analysis: Political and Legal Factor: Political elements that influence the legal and political
system affect the change of a firm. The Non-alcoholic beverage which fall under this
category according to the FDA as ell as state implemented a role under production
operations of cited products (Doppelt, 2017). Despite this, through changing their
regulations and rules, it would be consider as book of company as well as their foreign
nation entry. Although Pepsi as well as Coca-cola is continuously regulating the policy of
state. Economical Factor: This external elements assess national, regional and global impact
which also handles the inflation rates and recession issues, rates of unemployment,
exchange currency rates and individual saving rates etc. For Coca-cola, there is a
requirements for improvements in economic in main global trades of enterprise. Social Factor: These element evaluate social factor influence ways like change in
lifestyle, attitude, interest of people etc. It would be more constant to impact beverage
like soft drinks sector through enhancing greater beverages demands range. Like the
demands fr carbonated drinks have been diminished, company have lost the gain in
revenues. Technological Factor: It stress over the technologies and tools which is used for
production, distribution and other operations of an organisation. Such opportunities forms
for fresh products and goods evolve in the goods marketing terms. If the technology is
modified, the company will groom more effectively.
Change Internal Drivers that Influence team, Individual and Leadership Behaviour
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 People-led Drivers: market change forms like demand attitudinal changes, modification
income, change in demographic that changes their definitions of convenience and value.
Through undertaking these, the company can gain and sustain their biopotential buyer of
services and products. Technology-led Drivers: In this, the alternation of technology system of organisation
incur. It is coordinated in radical innovation methods which help both of companies in
gaining objectives and goals.
Change Impact Analysis
This was formed by Bohner and Arnold for understanding the changes potential, or
estimating what is required to alter the accomplished alternations. This is planned for risk
assessments ad detail in regard of changes (Fagerström and Salmela, 2010). According to this
there are three major types of change analysis: Trace: Linked between specification, requires, element design test etc. Dependency: link between variables,. Logics, parts, modules and many other.
 Experiential: linked between statics, design if software, algorithm etc.
P3 Evaluate measures for lowering adverse effects of change on firm behaviour
Worker behave in some way which can be either positive and negative in regard of
change that change the functions and operations of a company. As the varies in policies,
processes, management process and other elements occur, it may help company in develop and
gaining profitability but change the behaviour of enterprise in various ways such as :
 Organisational culture highly influenced by changes which affect on reprisal,
encouragements level, leadership, values and vision of enterprise.
 Changes can lead to either loss or gain in motivation level of worker as it affect the
factors of goals, values, objectives which may avail in accomplishing goals or lead to
resistance.
 Decision-making is the most important aspect where changes highly impact. This change
the behaviour of decision making of company as new judgements are taken according to
new terms an policies which influence entire operations of respected organisations.
 Rather the behaviour of company it impact on psychology of changes in people of
company weather it is internal or external public which can lead to conflicts or several
issues.
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 Team Dynamics get heavily influenced through various factors such as friendship in
positive or negative way.
Thus, through the help of proper change management system, reinforcement system and
delivering purpose to employee, company can get edges of benefits of enterprise while changing
in nature (Fullan, 2014). Also the company can manage personality styles, office layout, team
roles and various other methods for managing changes in team dynamics and leadership of Coca-
Cola and Pepsi. Coca-cola have attempted various changes in their company to meet market
share and competitive benefits. The major changes are technology advancement, management
vary to cope up with modification for those worker which do not have abilities and skills to use
new technologies. The report is undertaking Force field analysis for this:
Force Field Analysis
It will avail in recognising those forces that are ready to agree changes or resist them.
Phase 1: Change Proposal
The company will make the major change in their existing technology in order to gain
more advancements in profitability and production process.
Phase 2 Change Force Identification: Here are mentioned some of the major elements
which is being identified from this:
 High market competition
 to develop the products and service quality. To meet large global trade and develop profitability.
Phase 3 Force against alternation Identification
 Existing stricture of organisation
 State Legislations and laws Skill Dearth in worker of enterprise.
Phase 4 Score Assign: It will involve about rendering score to meet every elements on
the grounds of influence. Score one will be undertake 1 an d score of 5 will undertake as strong.
 High competition(4)
 product quality(5)
 gain in profitability(4)
 Skill Dearth(2) Legislation of state(3)
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Phase 5 Evaluate and Execute: According to the given score in respected elements, this
can be recognised that there is a requirements to agree organisational changes. Such alternation
has the involvements of company imaged (Hrebiniak, 2013). It will avail enterprise to meet
competitive edge as well as its requires to render training to the worker to create new abilities
and skills.
There are various theories and model which can be used for measuring and enhancing
impact of change in the competitive industry for lowering influence which is discussed under: System Theory: The approach of system to leadership is an effective leadership level in
company in order to enhance performance. For the environment of Coca-Cola this can
help in super system and organised leadership or team working as it can assume that
leader and subsystem can comply elements of it for reaching system.
 Continuous Improvement Model: This model refer to main cycle of development which
is check, Act, do and plan that can help in development of organisation in way of
products and services. Through executing this evolution model, Coca-Cola can develop
their performance of worker as well as company in effective way.
TASK 2
P4 Different barriers for change and their influence on leadership decision making
Human expression toward change not always remain positive as people take time to
adopt those alternation in their daily behaviour and habits. As organisation which is based on the
personnel of company that avail in attaining the objectives or vision of enterprise respond in
various ways in regard of adopted changes in the company. The impact of alternation can be
positive or negative depend on the situation, change and other consequences. If it influence
positively, it will influence organisation productivity and profitability of company but if it affect
negatively there can be various barriers and consequences that can emerge in company in regard
of change which can become cause of decrease in sales of products and services. There are
majorly two types of changes: Imposed Changes: Those changes which are imposed or complied without any opinion
or involvements of decision of worker. The worker have to follow these in order to
sustain.
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 Initiated Changes: These are those changes which affect the company majorly positively
as it prefer involvement of employee as well as worker also initiate their best for
successful implementation (Malenfant, 2010).
The organisation need to comply these alternation through adopting various effective
techniques for benefiting organisation and effective execution. Through the help of various
effective models of change management, Coca-Cola can make execution of those technological
ad operational changes in their organisation as it affect the culture in wide way. To measure
those barrier, here is discussed Schein’s organisational culture model:
Schein’s Organisational Culture Model
According to this model, the adoption of culture of organisation Like Pepsi and Coca-
Cola is not one day process but a helical procedure which takes various steps for alternation such
as external environment adaption, issues resolution etc. The company understand from their past
experiences and make new tress in culture. This model believes that the changes take places in
three levels:
1. Artifacts: This refer to characteristics of company such as worker uniforms, office
interiors, aura, furniture, behaviour etc. that can easily examined. These are called
articfacts.
2. Values: The next phases is worker's values which play vital role in development of
company. For e.g. mindset of workers (Thomas and et. al., 2013).
3. Assumed Values: This refer to unscalable assumed values which still play a wide
difference in organisation and its culture. These refer to management of internal
workplace of organisation internal workplace managed by human resource Dept.
The Burke Litwin Theory: The Burke litwin presented a model for organisation change.
Burke defined the various drivers of a change within organisation. The description of model are
ranked in pattern of their importance and relevance with the change process. The crucial feature
are mentioned at the top whereas the least important factors are present at the end of this model.
This model defined that structure, practices and systems should be one of the crucial feature to
be altered so that it can form a ways for secondary areas to change. External environment are
termed as factors to be supreme factor which tend to drive change in an organisation followed by
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mission and strategy which is opted by a company. The secondary factors which drive change
according to this model are leadership, culture, structure and requirements of a task.
Thus through proper decision making and leadership style, the organisation can make
proper execution of changes in the organisation. To avoid resistance in regard of modification,
the company need to make specific choice and adequate style of leadership and leader.
TASK 3
P5 Different leadership approaches to deal with the changes in organisation
There are various approaches and models that can be used through the coca-Coal
administration to develop the leader's performance and gain the ability of effective change deal
that occur in company. Such leadership approaches are utilised for administration to control
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Illustration 1: The Burke Litwin Theory, 2017

situation in regard of competitive pressure, technology alternation as well as worker behaviour
change (Nahavandi, 2016). The approaches of leadership that are implemented through the
organisation management are mentioned here: Situational Leadership Style: This is one of the major concept of leadership that relay on
the strategies of leadership according ton the situation of change. On the basis of this, the
worker or follower do not need to make alternation in them for changes. According this,
there are level of leading to guide effective performance. According to this, to meet
employee expectation and various market situation, company need different strategies of
alternation in system. Transactional approach of Leadership: The major purpose of it is to maintain the
function flow of organisation to meet the outcome in effective manner. This theory is also
called Ship Float cause of its purpose. Leader of this theory contain power to influence
the worker to work best as they use rewarding strategies for motivation of worker. Transformational Approach of Leadership: These leaders are responsible for
performing great functions in organisation. They facilitate their major aim on motivation,
team building, coordinating with worker, employee relations on various level to adopt
alternation more efficiently.
Usage in Coca cola of leadership approach
The company faces various changes and barriers in technology changes, competitive
pressure and management issues while adopting modification in system. These menace influence
working ability of worker and their performance. The organisation can adopt these two changes
for dealing approaches of these two leadership in effective way which is mentioned under: Approach of Situational Leadership: This deliver leader the flexibility in regard f its
uses in company according to change. The main organisational changes are used in the
sector of technology. Worker have to facilitate training to worker for the skills
development in their machine uses. Approach of Transformational Leadership: According to this leader will support
stimulation, employee relation, team performance etc. which can avail in meeting the
changes as well as managing working environment of Coca-Cola (Parsons and Cornett,
2011).
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