Analysis of Organizational Change and Leadership Strategies Report

This report delves into the critical aspects of leading and managing change within organizations, focusing on the impact of change on organizational strategy and operations, leadership, team, and individual behaviors. It examines the influence of both internal and external drivers of change, using Starbucks and Costa Coffee as comparative examples. The report evaluates measures to minimize negative impacts, analyzes barriers to change and their effects on leadership decision-making, and explores various leadership approaches to address change in different organizational contexts. The report covers market planning, pricing strategies and compares the strategies adopted by the two coffee chains. The report provides a comprehensive overview of change management, offering insights and strategies for effective leadership in dynamic environments.

Understanding & Leading
Change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Comparing different organisations by stating various impacts of changes on an
organisation's strategy and operations....................................................................................3
P2. Ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.........................................................................6
P3. Evaluating measure that can be taken to minimise negative impacts of change on
organisational behaviour........................................................................................................8
TASK 2..........................................................................................................................................10
P4. Different barriers of change and the way they influence leadership decision-making. .10
TASK 3..........................................................................................................................................11
P5. Applying different leadership approaches to deal with change in a range of organisational
contexts.................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Change is an essential aspect for everyone whether at individual or an organisation level.
This helps them to understand importance of various factors that are helpful in bringing success
in an organisation. It is termed as the process of change in plan or policies in order to maintain
flexibility and to attain organisational objectives. It has been seen that huge impacts of changes
are seen in the attitude and behaviour of employees and group members. There are plenty of
external aspects that are present in the business environment that lead to a well effective change
management (Bin Taher, Krotov and Silva, 2015).
This project report provides a useful information about impacts of changes on leadership
at internal or external level. Various strategies that are helpful in minimising their negative
impacts on changes are also stated here. Further, certain barriers of changes and their impacts on
leadership decision-making is assessed. Contribution of various leadership approaches that are
helpful in gaining advantages of organisational changes are discussed as well.
TASK 1
P1. Comparing different organisations by stating various impacts of changes on an organisation's
strategy and operations
In order to make development in an organisation in an effective manner, it is necessary
for the management of a concerned department to act according to current changes. It is more
complex social system that tries to make the best use of their people as a vital resource of an
organisation. Change is a systematic process of happening of new events and conditions on
functional aspects of an organisation because of its external factors that are exists in business
environment. It is an internal part of every business that helps to make decision in order to attain
the future aim and objectives. Because of this, organisation needs to face both internal as well as
external impactsof changes (Brazer and Bauer, 2011).
These are mainly seen in case of large organisations such as Costa and Starbucks coffee.
These companies are offering a wide range of products and services at local as well as at an
international level. There are a wide range of external factors that are associated with them such
as political, economic, social and technological. Although, these factors majorly put impact on
the productivity as well as on growth. With the identification of these factors that can assist the
management for both the companies to formulate a well organise plan and strategies. A large
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number of advantages are gained through using the latest technologies, new growth opportunities
as well as increase in the efficiency, etc. Every crucial change carries some specific impacts with
them that directly or indirectly affect the performance of an organization. All changes are going
to happen in the future that have a wide impact on planning and operations of business growth
(Brisson-Banks, 2010).
It is crucial for Starbucks and Costa Coffee shop to determine those changes before
preparing any strategies so that their earlier impacts can be minimised. There are some reasons
that are associated with the management of both companies in order to examine changes like: To gain competitive advantages: With proper acceptance of modification, it helps in the
improvement of quality that are exists in their products and services those are conclude
out competitors from the market. This will assist in gaining perfect position in the market. Increase innovation: This is one of the crucial impacts that are related with individuality
and acceptance of changes that would help to assist in formulating innovative ideas in
between employees in accordance with preparation of their functions. This would be
helpful in contributing towards expansion of their business activities.
 Maximise efficiency: It has been seen that changes would help to gain efficiency in
process that would help in fulfilment of customer demand. Like for an example: With the
use of latest technology changes that are contributing in growth and sustainability by
increasing productivity of an organisation (Brundrett and Duncan, 2011).
Information about companies to be compared:
Starbucks: It is known as an American coffee company which helps in delivering
products and services at domestic as well as global level. Its business operations are conducted in
almost 23768 locations with total of 238000 employees that are working perfectly to deliver their
best contribution to company. Some major products in which company deal with are coffee
beverages, tea, baked products and other sandwiches. The total revenue generated by company is
approximately US$22.87billion.
Costa coffee: It is one of the multinational coffee houses that would supply their services
at national level. This company is considered as one of the largest coffee houses in the minds of
customers. They are having 3401 stores in 32 countries worldwide. It also deals in restaurants
segment with total of 2122 restaurants in the UK. In terms of revenue, this organization is
generating total revenue of £1.267 billion. Because of their business operations at national level,
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there are number of factors that lead to changes for both the organisations. They have a direct
impact on the existing planning and operations. They need to grab below mentioned strategies to
make improvement in the business activities:
Strategies Starbucks Costa coffee
Market planning  As this is one of the biggest
brand in terms of highest position
in worlds market.
 They are prefect enough to gain
competitive advantages by
implementing corrective
marketing strategies. On a
regular basis, they used to
conduct market survey to
determine customer perception
regarding the products that are
being offered by this company.
 They are using a large number of
distributors that can actively
work for the stake of company.
 This particular coffee shop
is having a wide range of
business operations.
 In relation with
competitors, their biggest
threat is Starbucks.
 This company is having
perfect market base
because of a wide range of
market capture in the UK
as compared to other parts
of the nation.
 For this purpose, role of
local media is more crucial
in order to promote their
coffee at various places.
Pricing strategies  Starbucks is the perfect brand in
terms of image for delivering
better quality of products and
services to their customers.
 The primary aim of company is
to increase number of customers
because of their affordable
prices. Thus, they use price
skimming and cost plus pricing
methods.
 This company is required
to attain positive impacts
and wide market base. In
this regard, pricing
strategies play a dominant
role in reaching to their
targets.
 This will help them to
maintain their sales and
revenue at higher scale.
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With the use of low pricing
plan adoption, a company
can draw attention of
maximum people at
middle, local as well as
global level.
P2. Ways in which internal and external drivers of change affect leadership, team and individual
behaviours within an organisation
In current time of globalisation, every organization wants to become one of the best in
their business operations. Generally. Both companies i.e. Starbucks and Costa Coffee have their
core operations domestic as well as international level. As a perfect business environment in
various nations is having wide number of external factors that is affecting daily operations of an
organisation (Coronel, Moreno and Carrasco, 2010). There are various things and situation that
are present in the way a business operations is conducting in a culture either positively or
negatively. Such are termed as account forces. Some of them are mentioned underneath:
Internal forces:
Internal derivation forces are those conditions or activities that are present at internal
level of any business operation. These are mainly control and managed by the company by
taking some corrective decisions. Some forces those are related with this are: Technological capabilities: With the implementation of latest techniques old are
obsolete. The business always grab those are changes with technology that are
sufficiently favour the business. Organisational culture: This is derived as a systematic evaluation of employee
behaviour and attitude that they carried with them during their operation. Business firms
always embrace changes and listen to employees and customers that are beneficial for
them (Ellenbogen, Berger and Batjer, 2010). Employee moral: It is related with the level of confidence and positive strength of an
individual or group. The employees are mostly satisfied with their jobs that would
provide them positive energy to perform their task in more efficiency manner.
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 Competition: It has been seen that with globalisation, most of the companies wants to
make their impacts over one another by offering attractive products to its customers. The
latest technology, innovation and tools can help do so.
In order to increase the ability and behaviour of an employees to perform their works in
more effectively at internal level. The above mention factors are needs to be helpful in removing
issues those are restricting people to deal with those changes.
External forces:
These are said to be those kind of things, events or situation that are present from outside
of any companies or firm. There are some of external driving forces related with the company
are discuss below: Political impacts: Such kind of forces are directly impacts on the functioning of business
operations. Because of this impacts such as ideology of parties, local government, market
stability and tax policies etc. Economy: There are plenty of intimate relationships among the business company and
other economic factors. With any fluctuations in case of inflation or deflation that are
badly affect the business growth and their stability. Social factors: It is essential for the company to make certain useful things that can help
society to grow at upper scale. This can only be possible through providing maximum job
opportunities to jobless people. Technology: It is one of the important aspects as it form the business transaction in long
run. This helps in performing operations in more effective and economical manner. The
customer expectation are higher specification so that new technologies can maintain in
efficient manner (Hall, 2010).
 Customer satisfactions: It is a business term which is used to measure products and
services deliver to suppliers by the company so that they can gain better customer
satisfaction.
According to the mention external aspects employees require to control outside impacts
so that they can prohibit any unethical impacts those are affecting their productivity of the
company. The use of above factors in more superior manner can guide company to manage their
resources as per the change suitable for them.
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P3. Evaluating measure that can be taken to minimise negative impacts of change on
organisational behaviour
It has been seen that an organisation can only get successful if they are working with the
latest tend as per the present changes. They can gain positive outcomes by using corrective
planning for the purpose of attaining their aims and objectives. This is mainly relies upon the
change management policies that would adopted by an organisation in relation to control the
adverse effects on departmental attitude and behaviours (Harris, 2012). In order to work
according to the change they need to cop up with the application of theories that are going to be
helpful in coming time. There are various theories such as system, complexity theory, etc. are
mostly helpful for the managers of Starbucks and Costa coffee to reduce the negative impacts of
changes that are discuss underneath:
System theory: There are two ways such as informal or formal organisation structure,
plan and policies by which leadership can operate. It is primary component that consists of
mechanism for making proper communication and take crucial decision-making. It is a
management discipline that concerns about understanding of system that are connected with
various departments. It is one of the effective concepts that is adopted by department of
Starbucks and Costa coffee in order to create better leadership qualities between every
employees. This particular theory has a wide number of advantages in formulation of innovation
between employees to handle some critical condition of contingency. In this, leaders treat the
organisation as supreme system and other key component of change management (Mayfield,
2014).
Complexity theory: It is known as a model for leadership that change learning, creative
and native impacts of involved adoptive systems. This would be the study of complex and a well
organise pattern that would arises in any critical situations. It processes having a wide range of
number of semi-independent parties that can order into a rational system. The primary aims of
this theory is to recognise the effect complex situations at micro level in the capabilities of
organisation in respect of handling the factors those are available at macro environment (Saha
and et. al., 2013).
Continuous improvement model: It is one of the effective methods that consists of
various functions which is regular helpful in improving the products and services of an
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organisation. Adoption of this method consists of proper cycle of development that is applicable
in adopting vital changes. Basic functions of this specific cycle is mention underneath:
PDCA cycle
This is applicable in both the company in order to make their business plan as per the
current market changes. It consists of some useful steps such as:
Illustration 1: PDCA Model
(Source: PDCA Model, 2017)
 Plan: It is an initial stage process where a company make a plan to determine vital
changes that are essential for the betterment of an organisation. Do: Under this steps, proper process is been analysis and evaluated as per the application
on business growth and opportunities. Check: By using some specific method, they need to make identification of effectiveness
of changes that are applicable to business in longer period of time.
 Act: It is last process under which review are collected at large scale and if found any
thing missing can be resolve before adopting any vital changes.
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TASK 2
P4. Different barriers of change and the way they influence leadership decision-making
The management always searching to implement changes because they have belief that
changes can bring more significant impacts to an organisation as whole. Although the main
objective for introducing an organisation changes is essential for maintain the production
environment of a business at regular level. While, changes is more essential in order to get more
effective firm and get more positive impacts to their staffs. It is primary subjects to few form of
resistance. Managing a perfect standard assessment is a perfect process that would helpful for
every business organisation to determine potential and actual barriers to changes. Because
barriers will always create more gap in recommended and present practices are having negative
effects on its daily production process. Some effective barriers are mention underneath: Lack of employee involvement: It is the most common barrier related with the change
management. It has been seen that employees are always fear of change. It has been seen
the even a loyal member of in company will resist changes (Tang, Lu and Hallinger,
2014). Poor communication strategies: Because of bad communication planning barriers can be
arises. It has been seen that some top leaders are always assume that once they announce
the change people can adjust as per the new changes. Inappropriate culture ship planning: It has been unpredicted changes which are not
even analyse by the management. More often the planning team always fails to make
vital decision related with the feeling and intuitions. Organisation complexity: It has been seen that there is comes a time when business firm
begin to develop involved processes making the process planning and implementing
changes a bit more complex.
 Environment: It is more essential aspects factors that is required to be in more safe
position during providing better service to their customers. There are some criticism of
society that would affect perfect ability of leaders in regard taking crucial decision-
making.
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These barriers are effectively helpful in resolving their problems that are affecting in
delivering better results to the company. It can help them to gain competitive advantages in
future over their competitors.
TASK 3
P5. Applying different leadership approaches to deal with change in a range of organisational
contexts
In accordance with this, plenty of organisation tends to fall far short of their aims and
objectives. One of the biggest reason an organisation struggle is all because they are treat
leadership and changes management as individual rather than interconnected challenges.
Selecting correct leadership style can help a leaders to implement leadership theories changes in
more successful involvement in creating a positive vision and communicating plan and
generating effective outcomes for the company. Leadership approaches are mostly used by
leaders of both the company Starbucks and Costa coffees for the purpose of formulation of
motivation and leadership ability between employees. There are so man6y leadership approaches
such as Situational, situational, transactional and transformational etc. All these approaches are
having wide importance in development of skills between among employees. It deal with various
changes that are helpful in increasing profitability of an organisation. Some specific approaches
under which they adopted by Starbucks and Costa Coffee are discussed underneath:
Situational leadership: It is one of the most important leadership style that has been
design and studied in more effective manner. It refers to a situation when a leader or mangers of
an organisation must adopt changes as per the style to fit in the level of an organization. It is the
most effective leadership style by which proper direction to employee can be provided in order
to satisfy their demand (Wilkinson and et. al., 2013).
Transactional leadership: This methods is more helpful in delivering proper shape to
various function of an organisation to accomplish their set targets in more efficient manner. It
consists of providing rewards and compensation to best employees of an organisation. This
would contribute more in motivation of other employees to work more positively to gain extra
benefits and rewards from the company. By this employees would also get benefits of gaining
great chance of opportunities to handing higher authorities in more effective manner.
Transformational leadership: It is another significant approach that is used by
management of both the companies in relation to determine various changes through giving right
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