Understanding and Leading Change: A Comparative Analysis of Two Firms

This report examines the impact of change on two multinational coffeehouse chains, Costa Coffee and Starbucks. It begins by comparing their organizational strategies and operations, highlighting how change affects their business models. The report then delves into the external and internal drivers of change, such as economic conditions, technological advancements, and employee morale, and assesses their influence on individuals, teams, and leadership. It further explores measures to mitigate the negative impacts of change on organizational behavior, including overcoming resistance and fostering effective communication. The analysis extends to the application of change management models, specifically the force field model, and concludes by evaluating various leadership approaches in dealing with change, offering recommendations for effective change implementation. The report provides a comprehensive understanding of change management principles within the context of these two prominent businesses.

Understanding and
Leading change

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparison between two firms and impact of change on their organisational strategy and
operations ...................................................................................................................................1
P2 External and Internal drivers of change affecting individual, team and leadership...............4
P3 Measures or evaluate taken to decrease the impact of change on organisational behaviour 6
M1 Assess the different drivers for change and kind of organisational change.........................7
M2 Apply model and theories related with response to change.................................................7
D1 Recommendation and Conclusion related with change impact analysis..............................8
TASK 2............................................................................................................................................8
P4 State various change barriers & find out the influence of leadership decision-making........8
M3 Study of force field model..................................................................................................10
D2 Critically Measure the force field model.............................................................................10
TASK 3..........................................................................................................................................11
P5 Application of different leadership approaches that effectively deals with change............11
M4 Measure the impact of leadership approaches....................................................................12
D3 Critically evaluate the powerfulness or effectiveness of leadership approaches................13
CONCLUSION ............................................................................................................................13
REFERENCES .............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
In a business, there are different techniques and tools which can be followed in order to
make the process effective. Change is important for each and every enterprise as without it, there
are more possibility that organisation may mislay their competitive benefits as compared to other
businesses. In this, they also get failed to fulfil the basis needs and wants of potential customers
which serve as a level of loyal clients. Modification often take place through change in desires,
trends, tastes and preferences of target customers. In terms of organisation, changes are present
in the way of leadership, strategic, technological and tactical variation (Aslan and Reigeluth,
2013). These are going to impact the business process, profitability, performance and people in
an adverse way. In order to reduce those effects, it is significant to have change management
structure in company that disable them to proceed the maximum level of competitive advantages
over their challenger. This report is based on two different organisations such as Costa Coffee
and Starbucks. Both are multinational companies and deal in providing coffee, tea and other
beverages to its buyers all over the world. This assignment discussed about the change impact on
respective firms. It has also shown different external and internal drivers of change, its issues and
force-field evaluation as well as leadership approaches.
TASK 1
P1. Comparison between two firms and impact of change on their organisational strategy and
operations
Change is an essential and important part of business success and development. It refers
to the term which plays a vital role that affects the performance and functioning of organisation
in a direct and indirect manner. These specifically take place in the way of variation in tactical,
technology, leadership, market trends, desires and choices of audience. This is generally famed
as organisational occurrence as it is reviewing and changing the management structure and
business process (Caruth and Caruth, 2013). It is essential for each and every enterprise to select
themselves according to variations so as to take the benefits of maximum competitiveness.
According to author, it can be identified as an activity in which business alteration affects its
whole working structure, methods or motive for upholding in the market for longer period. Both
companies such as Costa Coffee and Starbucks have enforced modification in their business
operations and practices to retain loyal audiences.
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Costa Coffee: It is a British Multinational coffee house organisation headquartered in
Bedfordshire, Dunstable. The enterprise is completely owned subsidiary or accessory of
Whitbread. It is the biggest and second largest chain in all over the globe. It was found by
Christopher Rogers, Sergio Costa and Bruno Costa in 1971 in the United Kingdom, London.
They mainly give sandwiches, iced drinks, tea, coffee and other beverages to its target clients.
Starbucks: It is an American coffee house chain in all around the world. It was found in
1971 by Jerry Baldwin, Zev Siegl, Gordon Bowker at Washington, U.S. Utah Avenue South,
Seattle and worldwide (Clarke and Persaud, 2011). They mainly provide sandwiches, coffee
beverages, baked goods, smoothies, tea and other goods to its customers at reasonable price. In
company, there are approx. 238,000 employees who work with an aim of increasing the business
sales and revenues in limited time period.
Illustration 1: Organizational Change
(Source: What Is Organizational Change? Definition and Meaning, 2018)
Both the respective organisations have made different strategies and policies that depict
the effect of variation on their business operations and activities that are described as below:
Strategies Starbucks Costa Coffee
Competency strategies They primarily focus on
analysing the desires and
Earlier, business entity was not
emphasising on marketing
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requirements of target
customers so that they will
become satisfied or happy
effectively. For example:
respective firm currently
modified their menu card by
adding new flavours in
beverages like Ombre Pink
Drink, Freebie (Colcleugh,
2013). In this they thinking to
launch effective game and
healthy breakfast services to
the employees so they easily
deals with different customers
in an effective manner.
goods as per the client’s
demand and wants which
output in minimum number of
loyal audience. Costa Coffee
laid strain on creativity and
innovation as they provide new
goods to its buyers so that their
choices or tastes can be
created. They alter or change
products according to their
desires but not considering the
taste of clients.
Pricing strategies It has been measured that
business entity has made its
own trade name and image in
marketplace. They modify the
product’s prices in order to
achieve maximum
profitability. But this output in
reducing their loyal clients as
they are shifting to other
companies who are giving the
similar products and other
beverages but at reasonable
price.
They provide their goods
which are generally priced at a
range of premium. This kind of
cause is simple, that
organisation directs from
previous 47 years, it is a longer
time. In this, they offer their
quality products and dominate
high goodwill (Doppelt,
2017). In order to proceed the
benefits of maximum
competitive welfare, they are
giving discounts and other
offers to loyal audience.
Promotional strategies In the first place, business Costa Coffee is not
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entity was generally marketing
or promoting their goods due
to advertising. But now a days,
they are advertising via social
and print media platform
(Fullan, 2014). It refers to a
big platform in order to
maintain long term and healthy
relationship with buyers. They
are also attracting clients via
providing various sizes of cup.
emphasising on advertising
their beverages but through
rapid variation in choices of
buyers and market trends, they
are following the social media
technique in order to advertise
all their beverages and other
products. They have developed
their own websites i.e.
Instagram page and Facebook.
Process strategies Company has pre-planned its
process or activities in order to
complete the space that
develop in between supply and
demand that outputs in getting
the need of target customer in
an effective and systematic
manner.
In order to achieve long term
benefits and competitive
advantages, business entity has
pre-planned its business
activities in the form of
presentation, communication,
hospitality and behaviour.
P2 External and Internal drivers of change affecting individual, team and leadership
The effect and impact of variation takes an effective place in organisation either in
negative and in positive way. This built upon the business and its actions towards modification
(Fyke and Buzzanell, 2013). These are mainly classified as external and internal. The effect of
this alteration can be observed on the performance level of team members, individuals and
leaders.
Impact or effect of internal drivers: These are refers to situation, things or events that often take
an effective place within the organisation and these are monitor under the business entity. There
are some internal campaign are as below:
Technological Capacity: This aspect mainly believed or accept that fresh discoveries and
disused the old ones. Starbucks retain themselves informed with technological advancement and
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innovation in regards to proceed the benefits of maximum competitive place. It frames the
functioning and operation of company in an effective and effectual way. For example: in order to
decease the customers waiting period, leader of respective firm has definite to operated their
mobile and certain app along with order can be located in advance. This frequently output in
higher track generation.
Employee Morale: Confidence and strength level of team member or individual is
important for the growth of organisation. Workers with lower commitment or moral about work,
it adversely effect the business and workers performance in an effective and efficient manner.
Thus it is essential for each and every company to encourage motivation among different
employees. It can be present in the way of non-monetary and monetary (Getha-Eby and O'Brien,
2014). In this leaders of the referred firm is require or needs to listen with their workforce and
evaluate their involvement.
Organisational Culture: Business culture lay on the behaviours and attitudes of group
members or individual. Positive and effective working atmospheres encourages the employees
and keep them for longer duration. On the other side, negative culture of company promotes the
conflicts or misunderstanding among their workers. In this leader are needed to promote co-
operation & co-operation between their all employees which often output in achieving the
company objectives and goals effectively.
Effect of external Drivers: These are refer to situation and event which are go on outside the
business entity. These are given as below:
Economic Condition: An informal connection present between business organisation and
economic environment. The performance and functioning of firm depend on existing economic
atmospheres (Grootenboer, Edwards-Groves and Rönnerman, 2015). Any kind of change in case
of inflation and recession impacts company operation and practices in an adverse way. Here the
essential duty of leader and other employees is predict such condition and set up effective actions
or calculation to make it them in an effective and efficient manner.
Political Force: The effect of such factor directly impacts the functioning and
performance of business. These are existence in the way of government policies, parties, political
stability, tax policy etc. All these are effect the company profitability but in this Brexit take
political instability or disorder in United Kingdom which impact the whole operation and activity
of Costa Coffee in a negative and positive way.
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New challenger: It is also big factor that effects the business performance and
profitability in a direct and indirect way. In this competition creates the more challenges for the
business entity. Innovative challengers develop troubles or difficulties for other organisation in
the term of innovation, ideas, advanced technology, fulfilling clients desire and requirements
with affordable pricing. In this leaders are hoped-for in order to developing strategies
concentrated with dealing challengers in constructive manner.
P3 Measures or evaluate taken to decrease the impact of change on organisational behaviour
If variation are not apply in a proper and effective way, then their consequence or outputs
range from harmful to unfortunate. Business entity that are capable to manage all modification in
effective way that can yield maximum competitive benefits and biggest growth (Gupta, 2011). In
order to implement and select alteration successfully and effectively in the both organisation
such as Costa Coffee and Starbucks practices. Both business are needed to integrate proactive
method that mostly includes for 4 main phase are as below:
Overcoming Resistance: In this phase, businesses are needed to understandably transmit with
their employees regarding the variation. It help workforce to known the rationale or requirement
behind the modification. Starbucks clients has to time lag for longer period in regards to location
an order. Therefore, to rescue the precious period of their target customers they have defined to
plan a mobile and other app that modify them to field order in early. They also provide strong
help to their workers in relation of development and training.
Engaging workers: Employees who output higher revenue and productivity for the business
organisation (Hrebiniak, 2013). The main duty and role of enterprise is to promote their
workforce in alteration activity as they are capable to produce maximum output and implement
change as related to its challengers.
Implementing changes and variation in steps: This phase is includes different process which
are identify as below: Prepare for change: For this, both business plans the effective strategies concentrated
with variation process of management. It also defines key roles and duties implemented
by manager and workers. Handle the Change: This steps deals with originating effective operation and
communication channel that alters both organisations is to handle the modification in a
through and structured manner.
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 Reinforce the alteration: This steps turn around gathering comment and utilizing
corrective part where required.
Communicating the variation: As per the research, it has been analysis that if business's fails in
order to inform employees in advance regarding variation, it frequently outputs in workers
misbehave by 42 percent. It is essential to have effective and two-way communication or
connection that assurance company change progress.
There are also certain problems which are describe as below:
Lack of Failure and support: Referred firm faces different types of situation or condition
which arises through conflict, misunderstanding and exchange of important information. This
can be define as main reason behind certain alteration in environment and nature of employees
and an enterprise (Ielmini and Fugazza, 2011). It is extremely required to have help of leaders
and managers to lower department and therefore top management should give effective
guidelines and direction so that function of manager and leader can acquire easy. There are
various tactics and tools which require to acquire by workers. So that performance level of
workforce can be enhanced for specific objectives and tasks along with various alteration.
Morale: There are different aspects which are involved as a human nature like abilities,
skills and confidence level of employees for attaining the long term objectives and gaols of
business entity within assigned time period. Morale is important aspect which is needed for each
and every workers in order to provide maximum level of execution. There are various conditions
which grow while that workers feel low-level assurance and his level of morale become very less
while functioning in an organisation. Participation in meetings and seminars teams: It is essential to deal with modification
and cut down its negative effect is taking progressive involvement in group meetings and
different useful things decently so that related to scheme get make and render
appropriately. Although, involvement in meetings unit is an necessary accept for every
concern when they track to succeed resistance to alteration.
 Execution of plan with suitable goals : It is to implement the scheme which is related
with modification. Therefore, concern needs to make some goals effectively and
systematically so that alteration acquire negotiate effectively and therefore all
modification of negative facet get minimise.
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M1 Assess the different drivers for change and kind of organisational change
Modification can be determined in an enterprise via two factors such as external and
internal. All those forces are directly effects on business performance and functioning in an
effective and efficient manner. Internal factors effects in the way of organisational structure,
employees and other aspects whereas external forces impacts on the basis of challengers,
economical and political situations (Jellison, 2010). Both factors effects the business profitability
and productivity in a positive and negative way.
M2 Apply model and theories related with response to change
It is mainly important for an organisation in order to select the change management
concept to retain the outcome which can be followed to environmental variations. In this type of
method, Kotter Change theory is adopted to modified the place in the execution level of a
business. It includes 8 parts which are considered in the form of creating urgency as well as
formulating powerful alignment (Keppel and et. al., 2012). After all vision and goals is
developed and therefore it transmitted after then. Variation are make after decreasing of barriers
or obstacles and thus execution is completed.
D1 Recommendation and Conclusion related with change impact analysis
There are different policies and plan which are developed and to compose them effective
and efficient way. It is identified to analysis deep investigation in order to understand the place
where change can be followed within workplace. In regards to build workers more effective,
development and training program can be given so that all workers can increase their basic
knowledge and skills and well as deal with external environment. All changes are highly effects
on business performance and functioning in a direct and indirect way.
TASK 2
P4 State various change barriers & find out the influence of leadership decision-making
Force-field Analysis: It refers to an effective frameworks which is designed to analysis
factors that restraining or causing change. It was proposed in 1940s by Kurt Lewin. The main
reason behind this aspects is to retain accurate balance between resisting and driving forces
concentrated with variation activity (Latham, 2013). This technique is useful and beneficial in
relation of devising strategic judgement as it evaluate the campaign opposed to and for a
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variation and also transmits the sense behind the alteration. There are 5 phases concentrated with
this evaluation are as below:
Phase 1: Identify Proposal for alteration: This process identify or describe the cause for which
organisation require alteration. Also the business entity is needs to defines goal and vision for
modification. For Example: Starbucks require alteration in order to decrease the customer
waiting period and modify their menu according to clients requirement.
Phase 2: Describe force for alteration: In this phase, force can be identify as the term of
external and internal. From the same, internal force frequently analysis within the organisation,
on the other side, external proceed place in outside of the company.
Internal Forces:
 Enhanced production cost of product
 Higher track generation Decrease the customers waiting time
External Forces:
 Increase the benefits of maximum competitive edge
 Avail the advantage of advanced and new technology Maximise the Loyal customers number
Phase 3: Determine forces against variation: In this process, Starbucks determine the campaign
that resist modification (McLaughlin, Afsar-manesh and Martin, 2013). These also determined
and analysed in the way of external and internal factor which includes some aspects are as
follows:
Internal Forces:
 This is the main way which do it attitudes
 Whether the variation has been adopted by workers or not Clashing the Employees thoughts or ideas
External Forces:
 Rules and legislation of legal authority
 Political & Economic instability Duties and roles towards clients
Phase 4: Assign Scores: It is an another process, in this respective organisation rank both
external and internal forces according to priority. It means examine the degree of effects on the
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all functioning and operational of respective business. For example: restraining of keeping
external factor like: Instability of political holds the business position such as they adversely
impacting the all functioning and operational of Starbucks. In force case which tendency against
variation i.e. earning maximum profitability and effectiveness which ranked on the First position
(Mukherjee and et. al., 2012).
Phase 5: Evaluate and Apply: After determining the harmful and favourable forces that cause
variation, refereed organisation can follow Force-field evaluation in the term of two way are as
below:
1. To determine whether to turn of with modification or not
2. To analysis which favourable factor help and strengthen the company practices or
activities and which keeping drivers encourage weakness.
Barriers to variation and their effects: There are different issues that are existence in the
marketplace that influence of all operation and functioning of Starbucks in a indirect and direct
way. This are effects mainly effects in the term of employees, environment and government. All
these are determined as below:
Workers : There are various condition when modification are does not adopted by the
workforce. This frequently lead to encourage misunderstanding and obstacles situation between
them. For example: Starbucks modify its all process and activities but never inform workers
regarding this changes. This not encourages them and maximise the alteration of disputes.
Environment and situation: In the marketplace, Economical and political instability
affects the all functioning and performance of Starbucks in an adverse way. It also impact the
buying power of clients which hinder company's revenues and profitability in a indirect manner.
Government: Different rules and legislation framed by legal authority, it effects the
business operation and functioning in a direct way (O'Connor, 2015). In this there are various
laws which are consternated with export and import policy impact the supply or demand of
coffee beverage.
M3 Study of force field model
Force-field Analysis model is very essential and important for the business development
and success. This aspect help company to determine different issues and difficulties which are
arise in the company. In the organisation, there are different issues which mostly go on when
leadership approach is performed fir different modifications or changes. The main reason behind
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