Unit 17: Understanding and Leading Change: Starbucks Coffee Analysis

This report delves into the dynamic realm of organizational change, using Starbucks as a central case study. It begins by comparing Starbucks with Costa Coffee, highlighting how changes impact their operations and strategies. The report then assesses various change drivers, both internal and external, and evaluates their effect on leadership, team dynamics, and individual behavior. It explores measures to mitigate negative impacts and applies organizational change theories and models. Furthermore, it examines barriers to change and their influence on leadership and decision-making, employing force field analysis to understand driving and resisting forces. The report also investigates various leadership approaches for change initiatives, evaluating their effectiveness using appropriate models and frameworks. The conclusion offers recommendations for effective change planning and leadership strategies, providing a comprehensive understanding of change management in a real-world business context.

Unit 17 -
Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Compare different organisations where there has been an impact of changes upon
the operations and strategies of organisation....................................................................3
M1. Assess various change drivers in each given example and the types of organisational
change which they have affected.........................................................................................6
P2. Evaluate ways in which internal and external drivers of the change affect leadership,
team and behaviour of individual within an organisation................................................6
P3. Evaluate measures to be taken by an organisation to minimise the negative impact of
changes upon organisational behaviour...........................................................................10
M2. Apply appropriate theories and models to evaluate organisational response to
change..................................................................................................................................11
D1. Draw conclusions and recommendations along with valid justifications for effective
planning of changes and apply change impact analysis..................................................12
P4. Explain the different barriers for change and also determine their influence upon
leadership and decision making in context with given organisation.............................12
M3. Use force field analysis to analyse the driving and resisting forces and show how
they influence decision making..........................................................................................13
D2. Critically evaluate use of force field analysis in context with meeting of an
organisational objectives....................................................................................................14
P5. Apply various range of leadership approach for a change initiative......................14
M4. Evaluate the extent to which leadership approaches can deliver organisational
change effectively applying appropriate models and framework..................................15
D3. critically evaluate the effectiveness of leadership approaches and models of change
management........................................................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Change is one of the constant phenomena that is taking place in almost all the
organisation and also in the whole world. The operations of the company also changes according
to the changing trends and development needed. All the changes and development in the
surrounding of business internally and externally brings many changes and the most important of
all is the variation in leading and leadership (Cole and Stavros, 2019). This report is developed to
explain these changes and their impacts and factors. This report is based on the two very huge
organisations and competitors from the hospitality sector i.e. Starbucks and Costa Coffee. The
chosen company for the whole of the report is Starbucks which is an American Multinational
chain of Coffee which have its all operations flourished globally. The company Starbucks was
founded in the year 1971 and is headquartered in Washington D.C., USA.
This report mainly acknowledge the impact of change that takes place in the company on
its operations and strategies. Impact upon Leadership will be evaluated by using the internal and
external factors of the company. Measures will also be suggested that will help in reducing the
negative impact of changes. Changes barriers will be discussed and its influence over the leaders
and managers in the process of decision making. Lastly, the leadership styles useful of the
company to deal with changes are evaluated.
TASK 1
P1. Compare different organisations where there has been an impact of changes upon the
operations and strategies of organisation.
Change is a process which is continuous and is constantly taking place in almost all the
companies and organisations. These changes are result of changing trends in the market or any
internal or external factor of the company. Change is such a process that changes the operations
and strategies of the organisation (Sansom, 2021). The analysis of such changes helps in
determining the impact of such changes on the operations of the company and then accordingly
the strategies are developed. There are various factors like: technology, culture, etc. that affect
the operations and strategies of the company.
The impact of the whole process of change on the operations and the strategies of the
organisations are discussed below by making comparison of the two competitors of the
hospitality sector.

Basics Starbucks Costa Coffee
Introduction Starbucks is the most popular
and globally recognised coffee
chain. It was founded in the
year 1971 by Jerry Baldwin,
Zev Siegel and Gordon
Bowker. The headquarters of
the company is located in
Washington D.C., USA. The
have its operations in more
than 50 countries around the
world by having more than
15000 coffee shops (Fariss,
2021).
Costa Coffee is a very huge
brand name and is popularly
known for its coffee beans.
This is the company that
makes amazing coffee which
are unique in its taste (Jeszka-
Skowron, Zgoła-Grześkowiak
and Grześkowiak, 2021).
These coffees are made by
them using traditional
methods. The company was
established in the year 1970
and is headquartered in
London, UK. The company
have its operations in more
than 30 countries and have
more than 5000 coffee stores.
Competency based strategies In the hospitality sector it is
very common to serve
customers on daily basis. This
needs daily identification of
the needs and demands of the
customers by which the
changes can be brought in the
company along with bringing
new innovation on regular
basis to retain customers by
fulfilling their demands
(Larson, Jaworski and Larson,
Costa coffee is popularly
known for their fusion drinks
along with mocktails. The
difference adoption of changes
by costa coffee is that the
company do not focus on the
changing needs and demands
of its customers (Pham and
Petersen, 2021). Rather the
company is more focused on
getting innovations in the
drinks which will serve its

2021). customers with new and
unique taste and developing
new trends.
Pricing Strategies The pricing strategy adopted
by the company soon when the
company was globally known
for its brand name (Zhu, Sun
and Huang, 2021). This
impacted on the company both
positively and negatively as
many of its customers changed
their brands to other but the
positive impact was that the
elite class got attracted to it
more and they all became the
loyal customer of the
company.
The Costa coffee have always
retained their prices to high.
They used different strategies
to gain the competitive
advantages over other. The
company was constantly
involved in making
innovations so that they keep
attracting more customers and
make them its loyal customers
(McDonnell, Odziemkowska
and Pontikes, 2021). This way
they influence people to spend
more on their company by
buying their coffee and
mocktails.
Advertising and promotions. Starbucks have always focused
on developing and
implementing the best
marketing and promotional
strategies with its huge
funding and engagement for
money (Aljarah, 2021).
Costa coffee is a brand that
adapts changes easily and is
quite flexible with the market
changes (Velásquez-Rodríguez
and Payán-Durán, 2021). It
adopts marketing and
promotional strategies
according to the change in
market.
Operational Change The major operational change
that took place in the company
The operational change
adopted by costa coffee was

was when the company was
not performing well, it shut
down its shops which were
underperforming and from that
funds, the company developed
its strategies and provide
training to its employees
(Bonnet and Westerman,
2021).
related to its diversification
where they started to provide
its products and services in the
new market in accordance to
the taste and preferences of the
customers (Mendes and
Duarte, 2021).
M1. Assess various change drivers in each given example and the types of organisational
change which they have affected
Both the companies are providing their products at best qualities possible. The companies
are using advancement in their technologies so that the quality can be enhanced and new
customers are attracted to the brand. The most important driver which affect the organisational
change in both costa coffee and Starbucks are its customers and its employees.
Organisational change affected by various drivers Transformational change: In this, company will make slight changes in it by
transforming and making suitable changes required (Knights, 2018). Starbucks in this
change will implement new strategies to be imposed upon its employees.
 Organisational wide Change: In this, the organisations make changes internally in the
working of organisations. Starbucks is using this by shutting down the underperformed
shops and investing the amount of those shops in providing training to its employees.
P2. Evaluate ways in which internal and external drivers of the change affect leadership,
team and behaviour of individual within an organisation.
Changes are the process that is continuous. There are various factors of the changes made
in an organisation which are categorised in 2 segments namely: internal and external factors.
Both these drivers are discussed with reference to Starbucks which is a multinational leading
brand, globally known for its coffee.
Internal Drivers to change

These are the various variations which are made within an organisation that changes
different things at the company like: changes are made in the leadership, behaviour of the
individuals, procedure of decision making, etc. the changes that are affecting the company
Starbucks with its operations and strategies are as follows: Change in the staff: when the company changes its hierarchical structure of the
company, it highly impact the behaviour of all the employees, leaders and the individuals
(Steidle, 2017). Like in Starbucks, the employees come and go on daily basis. For this
the staff i.e. the managers and the leaders have to manage the work to be done with
remaining employees or with the new ones.
 Organisational Strategies: At any organisation, implementation of new idea, strategies
are also changed according to the external factors of changes which impact the internal
changes in an organization. As in Starbucks, when the company launch any new product
they have to take feedback from their customers to know of the sustainability of such
product launched in the market. This in the organisation changes the criteria of working
and also the requirements of the individuals.
External drivers to change
There are various external factors that directly affect the operations and strategies of the
company. To understand in better way how these external factors affect Starbucks in their
strategies and operations, PEST model is used. Political: This factor affect the company if any new governmental or political policies are
implemented relating to the operation of the organisations and its activities (Lewis,
2018). As Starbucks is a global coffee brand spread in more than 50 countries, it has to
follow many of the political factors for every place where it has its operations. For
example: in every country, the laws for labour are different and there are various rules
and regulation mentioned under different acts of the country. For this the company have
to comply with laws of various different countries. Economic: These are the factors which refers to the economic conditions and
development of the country. Every country have its own economy and currently there is
economic recession going on in the globally. The Starbucks is facing lots of stress as it
has to deal with the increased cost of labour and operations cost. There are various

economic factors which are also affecting the company Starbucks which are: level of
taxations in different countries, local rates of currency exchange, etc. Social: This is one of the most important factor especially in the hospitality sector
(Narsipur and et. al., 2020). The social factor majorly impact the operations and the
strategies of the company as the demands and preferences of the customers are always
changing. The Starbucks have to fulfil with those demands while keeping their
preferences in mind so that they can have sustainable and profitable business. On the
other hand, costa coffee always comes up with new and innovative ideas so that they can
attract more customers y giving them variety of distinct options of drinks.
 Technological: This factor also have an influential impact of changes upon the leadership
and the behaviour of the individuals (Beckley, 2020). There are many technologies which
are introduced now and then. The company Starbucks is also continuously adopting new
technologies and developing them so that the work at the company gets easy and
comfortable for its staff and employees. This advancement in the technology at the
Starbucks helps the company in increasing its production and profitability. To stay
updates and to gain competitive advantage over the other competitors in the market it is
very important that the Starbucks is updated with all the technologies. Costa coffee has
also adapted many of the technological changes which has helped the company grow and
succeed in market.
Impact of changes
Organisations Changes Drivers of
change
Impact on
Strategies
Impact on
operations
Starbucks Training of
employees to
enhance
technological
knowledge.
The company is
developing and
keeping up with
new
technologies so
that they can
maintain its
position in a
competitive
The employees
at the Starbucks
is not certain,
they keep on
changing. For
this a strategy
was required to
be implemented
by the company
To keep themselves
updated with the
technology and
serve the customers
in a best possible
way, it had to shut
down its shops
which were not
giving profit so that

market for this
proper training
of the employees
was to be
focused upon.
to which they
introduced a
training program
so that the
employees learn
to use more of
the technology
so that the
burden upon
them is lessen.
The employees
were also
motivated and
encouraged by
asking them to
participate in the
decision making
of the company.
the same funds can
be used in the
development of the
existing shops and
providing training of
its employees.
Costa coffee Bringing
Innovation.
To sustain the
competition in
the market,
company keep
coming with
new and
innovate ideas of
their signature
mocktails.
To attract more
customers
company had to
make new
advertising and
promotional
strategies to
make people
aware of such
innovation.
The operations of
the company had
huge impact as due
to diversification of
the market of the
company, it was
trying to reach more
customers who
prefer such mock
tails and can afford
them.

P3. Evaluate measures to be taken by an organisation to minimise the negative impact of
changes upon organisational behaviour
Change management is a process which is suggested to be adopted by the organisations
so that the changed plans are implemented and executed within the operations of the company
(Lanoue and Zepeda, 2018). There are various significant measures that are available that helps
company with the elimination of all the negative impact of the changes so made within the
organisation. These measures are taken by the company so that they help in opting the most
appropriate technique that can be used by the company to protect it from the adverse change
reaction. These factors are also helpful for the company as by this the company can attain
sustainability in its growth. To minimise the negative impact of change upon the company,
Starbucks have implied PDCA model that has helped company with gaining positive impact of
the changes so made within the organisation. This model used by Starbucks have four stages
which are as follows: Planing: This is the first stage of the model of change management in which the
company make planning for all the strategies and ideas they want to implement in the
organisation before any change is made. For the company Starbucks, it is suggested to the
company that it should firstly conduct market research efficiently and then from it
identify all the efficient opportunities available with the company. Once the company has
done with the research of the market, it gets easier for the company to plan strategies
related to the changes to to be made and how they are to be implemented so that it do not
have negative impact upon the organisation. Doing: This is the second stage. In this stage the company tests the potential solution
found in the first stage of this model (Ahamer, 2019). For this, the company selects a
very small scale project on which they implement the said strategy planned so that the
solution so not affect the other operations of the company as this is just the process where
solution is being tested by the company. The company Starbucks will also implement the
strategy so planned after the market research so to note the impact of it as whole on the
operations of the company. Checking: This is the third stage in which the company checks whether the
implementation of the well research solution upon the selected area was effective or not.
This will help in determining the success of the plan or strategy so made. If the solution

was not success then the steps will be repeated but if the strategy worked, then the
company gets success as it found a solution which will help company to have positive
impact of the changes upon it. At this stage Starbucks will analyse the results of the
current results to that of the outcome expected. For example: Starbucks have
implemented a new marketing strategy to reach certain target but the outcomes of it was
not as per the expected outcomes. In this case Starbucks will again make and implement
new strategies by which they can reach the target area expected.
 Acting: This is last stage of the said model. This is the stage where the solution derived is
implemented to whole of the operations of the company (Peate, 2019). Starbucks for
instance will use the technologies that are advanced and updated so that the company
efficiently conduct its marketing with the help of social media and other new tools that
comes in the market.
M2. Apply appropriate theories and models to evaluate organisational response to change.
The organisations to reduce the negative impact due to the organisational change may
apply models and theories. Starbucks may apply the below stated theory.
Burke-Litwin Change Model
The Burke-Litwin Change Model is a philosophical structure for describing the
interactions between various aspects of an organisation, as well as its meaning and efficacy
(Buller, 2018). As a change management strategy, the Burke-Litwin Change Model proposes 12
operational elements that define a transformation within an organisation. Input:
External environment: It refers to the external factors that have an effect on
organizational transition.
 Transformational Drivers: The basic framework of an enterprise is made up of
transformational drivers. It has to do with the whole business. Three transformational
drivers exist. These drivers are more important than most in coping with a Starbucks
move that aims to communicate how things are done around the world.
 Transactional drivers: They are those that can be modified more quickly, but they
sometimes have almost the same effect on overall results. This refers to the day-to-day
operations that occur in organisations, as well as their shared solidarity. There are a total
of seven Transactional Drivers. Starbucks' output could be influenced by Transactional

Drivers. However, long-term success can only be achieved if these main drivers are in
sync. The position of the seven main factors in helping the transition process is crucial.
 Output: The 12th primary factor is individual and organizational performance. It is the
product of the transformation.
D1. Draw conclusions and recommendations along with valid justifications for effective
planning of changes and apply change impact analysis
From the above discussion, it can be concluded that both internal and external factors
plays an important role in an organisation as it helps them to grow and succeed. These factors are
very important for Starbucks to be considered as it will help the company in managing its
operations. Starbucks can analyse all the factors internal and external before they plan any
strategy fro organisational change. This will help the company to make effective decision.
From the above discussion it is recommended that Starbucks uses advance technology at their
shops so that they produced best quality of products which will also help in attracting more
customers.
Impact analysis
To determine the impact of the changes made within an organisation it must analyse it
with the procedure stated below:
 By determining all the implications of the changes adopted (Trefalt, 2020).
 By determining files, documents, etc. that will be impacted after change adoption.
 By determining all the needed task for change adoption.
This is very helpful as after the task are determined, organisation plans on how to
complete it. For organisation it is important to determine the effect of change as it will get
difficult otherwise of Starbucks to implement change strategies.
P4. Explain the different barriers for change and also determine their influence upon
leadership and decision making in context with given organisation
Adopting changes in organisation is very complex as it creates several barriers and
difficulties in the implementation of those changes and its execution (Whitby, 2019). These
barriers often create gaps in the current practices of the organisation which in turn affect
negatively the operations of the company. In context to company Starbucks, there are few barrier
mentioned to changes that influence the leadership decision making. They are as follows: