UKCBC - Leading Change: Impact, Leadership, and Minimizing Risks

This report provides an analysis of understanding and leading change within organizations, using Starbucks and Costa Coffee as case studies. It explores the impact of change on operations and strategies, evaluates how change drivers influence leadership and behavior, and suggests measures to minimize the adverse impacts of change. The report also identifies barriers to change and their impact on leadership decision-making, and discusses a range of leadership approaches to change initiatives. The content aims to provide a comprehensive understanding of how organizations can effectively manage and lead change to ensure sustainability and growth in a competitive market. This document is a valuable resource for students, and similar solved assignments and past papers can be found on Desklib.

Understanding and Leading
Change

Contents
INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Impact of change on operations and strategy................................................................................3
P2 Evaluation of ways in which change drivers influence leadership and behaviour........................4
P3 Measures to minimize adverse impact of change..........................................................................6
TASK 2.................................................................................................................................................7
P4 Barriers for change and determination of their impact on leadership decision making.................7
TASK 3.................................................................................................................................................7
P5 Range of Leadership Approaches to a Change Initiative..............................................................7
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................10

INTRODUCTION
Change is a process which is necessary for every company in order to grow and
sustain in competitive market. Surroundings of business is dynamic and it highly influence
the operations of firm. So, organisations need to adopt changes on continuous basis in order
to ensure its sustainability (Aslan and Reigeluth, 2013). This assists in accomplishing targets
and objectives in effective way. Change is crucial for organisations for exploring
opportunities and satisfying needs of customers. Without alterations business lose its
competency and fail to fulfil needs of their loyal customer base. In the present report, chosen
company is Starbucks and Costa coffee which provide coffee products to customers. The
assignment includes change drivers and their influence on strategies and operations of the
organisation. It also involves various measures that a firm take for reducing adverse impact of
alterations. Apart from this, barriers of change and the way in which they impact decisions of
leaders. At last, leadership approaches and its application to handle and deal effectively with
change is included in the project.
TASK 1
P1 Impact of change on operations and strategy
Organisational change refers to the process related to reviewing and altering business
processes and management structures. In it, firms going through a change or transformation.
It occurs when strategies of business or major sections of company are altered. It is the
process aimed at assisting workforce to understand, commit, adopt and embrace changes in
existing business surroundings. Perception and position of employees directly influence the
bottom line. Unfavourable perceptions related to taken decisions can spread quickly
throughout the organisation as workforce gossip. It negatively influences the morale and
affects productivity. Though it can be challenging to alter perceptions, these changes can be
attaining through persistence. Administrators of small enterprises should actively take actions
to change the beliefs of misguided employees so that workforce understand the reasons
behind organisation’s actions (Clarke and Persaud, 2011).
.
Positive influence of change:
 Increase in confidence level of employees
 Provide competitive advantage to firm over rivals in market.
 Provide growth and sustainability to firm.
 Creates dynamic atmosphere within organisation.
Negative influence of change:
 Lack of support & failure.
 Employee resistance.
 Results in high expenses.
 Inability to handle change may lower down morale of employees.
Types of organisational change:

Organisation wide change: It is a large scale change that influence the overall company
structure. This tends to entail restructuring, resizing of any form or collaboration. It is
basically a step to change nature of organisation (Doppelt, 2017).
.
Transformational change: It is necessary for organisations to continuously examine
its underlying strategies. A firm should be in touch with surroundings around them. It
involves understanding social climates, cultural trends, clued up on advancements related to
technology.
Personnel change: It occurs when firm undergoes mass layoffs or hiring. This
obliges a shift in organisational processes and culture.
Unplanned change: Amidst planned strategies and endless data analysis, a firm can
undergo various unplanned changes. Sometimes, drastic then planned one. These changes
may have introduced in unplanned way in response to alterations in demographic
composition.
Starbucks and Costa Coffee are the two well-known coffee houses which undergoes
change. They execute alterations in their business structure and processes in order to attract
large group of customers and retain them for longer period of time. Some changes that affect
their operations and strategies are as follows:
Change in Starbucks:
Starbucks undergo strategical and technological changes. In existing competitive
market, the strategies of company focuses to target on the customers of every income
segment. They are not paying attention to premium segment but now, they alter strategy and
emphasize on this segment of customers. They also focus and move towards expansion of
business in distinct parts of the world. They open their outlets in those countries which are
developing as they are aware about unorganised market potential. It is undoubtedly a positive
strategy which is beneficial for the company as it provides cost advantages to the Starbucks.
Firm is not using penetration strategy as it is unsuitable for premium segment.
In terms of technological changes, company believes in making use of high
technology machineries in order to make coffee. It is a crucial part of operations of
organisation. Currently, firm focus on updating its digital platform. Many new technologies
are adopted by the firm in producing coffee or other goods. Adoption of this technology is
not considered in long term plan of the firm earlier. But now, because of speedy changes in
technology, digital platform is used by them for promoting their goods and brand name
(Fullan, 2014).
Change in Costa Coffee:
Recently, because of Brexit, drastic changes are made which influence strategies,
operations and growth of Costa Coffee. One other factor that force the enterprise to make
alterations in working is increment in national living wage. The company known for its
expansion but because of exiting of European union the business of Costa Coffee is highly
influenced and enforce them to change their strategy. Various laws and regulations needs to
be followed by the company in upcoming time. Various legal troubles are faced by them in

opening stores in other European countries due to Brexit. They design strategies and tactics
that majorly focus on expansion globally. These strategies help them in coping up with
changes and promoting their products in market. Increase in minimum wages also influence
working of business. It impacts in negative manner and affects profitability of the enterprise.
P2 Evaluation of ways in which change drivers influence leadership and behaviour
Change drivers put huge impact on behaviour and leadership of individuals as well as
teams. It also influences the decisions of leaders or managers. These changes might be
influenced in negative or positive way (Fyke and Buzzanell, 2013). Some major drivers of
change that affect leadership and behaviour of individuals are define as follows:
Customer led drivers: Customers are important for every business organisation as
they highly contribute in its growth and success. They are the one who play essential part in
increasing profitability of enterprise. there is a direct relationship between customer
preferences and profits of company. If any change takes place in taste of customers, it will
directly affect firm’s sales and profitability. So, it is essential for the administrators of Costa
Coffee and Starbucks to consider this factor in order to determine customer preferences
develop suitable strategies accordingly.
Technology led drivers: Technology is an important factor that must be considered by
the managers of every organisation. It is the element which assists in providing competitive
advantage to the firm over its competitors. Technological alterations influence working and
operations of company. Any modification in technology also influence decisions of leaders.
Utilization of latest and improved technology provides advantages to both the companies. It
facilitates them in administering good quality products & services to its consumers. In order
to ensure better outcomes, this change driver is necessarily being followed by the managers
of Starbucks and Costa Coffee.
Competitors led drivers: They impacts on revenues of the business enterprise. In
competitive market, many competitors are existing that influence sales of Costa Coffee and
Starbucks. Managers needs to keep in view their competitors as their strategies influence
working and operations of enterprise. So, it is necessary for the administrators to design
strategies by keeping in view their competitors in order to beat them and lead the market.
Capital led drivers: Investors are important part of business as they influence
organisation’s performance. As much as the investors, as much the performance will
improve. Capital is very crucial resource as without it business cannot run. Sufficient amount
of funds is required for smooth operations of business so; it is essential for the management
to consider this change driver and maintain enough funds in order to get success in the market
and improve performance standard (Gupta, 2011).
Government led drivers: These includes various laws and regulations that impacts on
activities of business. Organisations need to adhere all policies and laws that are made by
government and design their strategies and tactics according to that. This assists the company
in easily cope up with alterations and operates successfully in the market.
Some other drivers of change are as follows:

Resources: In order to ensure proper working, it is necessary for the business concern
to have enough resources. It assists Starbucks and Costa Coffee in proper functioning of
business. Cost of operations can be reducing if resources are optimally utilized.
Capabilities: Capabilities of an organisation can be defined by its manpower. They
are the major strength of firm. Skilled workforce helps in bringing innovation in the
company. This will enhance performance as well as profitability of the firm. Innovation is
promoted by the ability of firm to create opportunities (Hrebiniak, 2013).
Some tools and techniques are helpful in assessing those factors. PEST Analysis is
one of that that helps the managers in determining the impact of various factors on working
of organisation. In consist of:
Political: These includes policies, tax rates, trade restrictions, political stability, tariffs
etc. which impacts on operations of business. Manager needs to consider these aspects as
these assists in providing more rights to employees and organisation.
Economic: It includes interest rates, economic growth, deflation, inflation, etc. These
factors affect operations of firm and decisions of leaders.
Social: Age distribution, cultural aspects, population growth rate, career attitudes etc.
are included in it. High trends in these factors influence demands for Starbucks products and
the way in which firm operates.
Technological: It involves various technological aspects such as automation, rate of
change in technology, research and development activity etc. These assists Starbucks in
identifying barriers to entry, and impacts on outsourcing decisions. Besides this,
technological shifts would influence quality, costs & lead to innovation.
P3 Measures to minimize adverse impact of change
Adopting and managing change is not an easy task for organisation. It is difficult to
manage these alterations and minimize its negative impact as these are sometimes harmful for
firm. These changes can be determined by administrators by using or implementing various
models and theories. Application of these helps the managers in taking suitable actions in
order to lower down adverse influence of change. Some theories as well as models are
defined as follows:
Continuous improvement model: Administrators of Starbucks and Costa Coffee are
applied this model in order to make improvements in business processes as well as its
operations on continuous basis. Application of this model assists managers in reducing
negative influence of alterations and in attaining goals and targets of the business enterprise.
It emphasizes on enhancing quality of goods and lower down waste (Keppel and et. al.,
2012). The model consists of a 4 stage cycle which managers should ensure to follow in order
to execute it in successful manner.
PDCA cycle: This cycle facilitates in enhancing revenues as well as performance of the
organisation. The 4 steps that are important for the firm to be followed are as follows:
Plan: It is the initiation step of this cycle in which managers identify opportunities &
plan for change or making alterations within organisation.

Do: It is second step in which changes are executed by administrators at small level.
These changes are introduced only for trial basis.
Check: Managers use data in this step in order to analyse results of alterations and
identify whether it made differences.
Act: If the result of change is successful then alterations are implemented by
managers on wider scale and regularly assess the outcomes but if changes didn’t work, they
initiate the cycle again.
TASK 2
P4 Barriers for change and determination of their impact on leadership decision making
Force field analysis:
It is a framework that facilitates manager in recognizing those factors that are the major
cause of change. This approach establishes a balance between the factors that drive change
and the components the resist change (Malenfant, 2010). 5 phases are involved in it:
Phase 1: Proposal for change
In this, managers set objectives and recognize cause of change.
Phase 2: Determine change forces
There are some forces that are exists in the surroundings of businesses. These are external
and internal. Managers think about these forces in this step.
Phase 3: Identify force against change
In this step, managers recognise those factors that resist firm to implement alterations.
Phase 4: Assign sources
In this, these forces are rated under 1 to 5 scale and that factor is identified that put huge
impact on organisation’s performance.
Phase 5: Analyse and apply
In this, analysis is carried out by manager and those forces are assessed that impacts on
working of business.
Barriers to change and its impact on leader’s decisions:
Government: Changes in government laws and policies affects the working and
operations of company. It acts as a huge barrier for company in adopting change. These
regulations impact in indirect way and influence decisions of leaders.
Organisation complexity: It is also an barrier in adopting change as due to
complexities in organisational structure and functions, workforce are unable to adapt with
changes and act as barrier in implementing change (Mukherjee and et. al., 2012).
Lack of effective communication: Improper communication leads to
misunderstandings within workplace and employees are unable to get complete information

that are being communicated to them. Due to that changes are not effectively implemented
and influence decisions of leaders.
TASK 3
P5 Range of Leadership Approaches to a Change Initiative
In work environment various types of leadership style exist that promotes motivation
among employees and attain business objective in an effective manner. The goal and culture
of the business enterprises identifies which leadership style is appropriate for them and their
workforce. Some of the organization offer numerous leadership style within their work
environment, rely upon the necessity of a task to achieve and various departmental needs.
Below mentioned are some kind of leadership style
Laissez-Faire Leader: In this leadership style, leaders allow personnel to take decision
(Parsons and Cornett, 2011). Though leader is still responsible for the decision that will made
by their staff members. Such type of leadership is often used when workers are able to
examine the situation & identify what is required to be done and how we will be doing it.
This is suitable where leaders completely trust their employees and their decision.
1. Autocrat Leader: In this type of leadership style, leaders are the one who take all
decision no matter minor or major without the consent of co-worker. Under this,
managers impose their authority and will on employees and force them to work as per
their direction only. Moreover, none of the worker can challenge the decision made
by leader.
2. Participative Leader: They are the one who takes every single decision with the
mutual consent of all workers. This promote healthy working environment and
motivation among them. They feel valued and important which ultimately lead them
to stay with the organization for longer duration. When a business enterprise requires
to make change within the work environment, these leaders aid personnel so that they
can accept the change in an effective manner.
3. Transactional Leader: Under this, leaders critically evaluate the performance of their
co-worker and on the basis of that they provide reward and punishment to them for
their good and bad performance. Managers with other team members establish pre-
defined goals and make personnel agree to perform as per their direction. If goals are
attaining within the specific time-frame, manager provides rewards to their employees
such as bonus, paid holidays etc. However, if somehow they are unable to meet the
goal then manager put them under training.
4. Transformation Leader: Under this leadership style, high level of communication
takes place between management and employees so that they both can collectively
accomplish goal in an effective and efficient manner. Managers motivate personnel
and improves their efficiency and productivity via high visibility and communication.
The term “Change” can be defined as the common danger or threat that mainly runs in
every business irrespective of its age, size and industry. In the present scenario, where
everything is changing so rapidly and quickly enables our companies as well to adapt
themselves as per the current change in order to gain higher competitive advantage in the
market (Suchman, Sluyter and Williamson, 2011). Organization that handles change in an
effective manner, are more likely to strive in the market as compared to the one who may
suffer for its survival as they haven’t adapted themselves as per the change. Not only from

the perspective of businesses, even the demand or taste of customer is also changing rapidly.
Every business concern is familiar with the concept of “change management”.
Lewin’s Change Management Model: It is consisting of three stages of change
management which are defined below:
Unfreeze: This deals with preparing the company so that they can accept the fact that
change is essential for yielding better results. Basically at this stage, leaders find out the
reason why current way of doing activities or things are not resulting as per the
expectation. They also taken into consideration the drawback of exiting techniques.
Change: At this stage, people starts resolving their contingency and perceive new ways and
methods to do things. The whole transition doesn’t happen overnight. In order to make it
successful, first people needs to identify how these change will be going to benefit them and
their company. Communication and Time are the two most important factor to changes
happening successfully (Thomas and et. al., 2013).
Re-Freeze: When changes are going to take the shape and employees have started
embraced the creative or new way of working, the company is all set to Re-Freeze. In
simple words, it means organization and their members have adapted themselves as per
the change.
CONCLUSION
As per the above cases it can be concluded that in order to gain high competitiveness
level, every business organization must undergo change. It is not only essential for
businesses but it is also important from an individual point of view as well. It is important
for every manager to understand the need for change and then implement it in an effective
manner which ultimately leads to attain business objective constructively. Both external
and drivers possess impact on the entire operation and functioning of the company.
Therefore, managers need to develop corrective measures so as to minimize or reduce the
negative impact of these measures.

REFERENCES
Books and Journals
Aslan, S. and Reigeluth, C.M., 2013. Educational technologists: Leading change for a new
paradigm of education. TechTrends. 57(5). pp.18-24.
Clarke, C.M. and Persaud, D.D., 2011. Leading clinical handover improvement: a change
strategy to implement best practices in the acute care setting. Journal of patient
safety. 7(1). pp.11-18.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Fyke, J.P. and Buzzanell, P.M., 2013. The ethics of conscious capitalism: Wicked problems
in leading change and changing leaders. Human Relations. 66(12). pp.1619-1643.
Gupta, P., 2011. Leading innovation change-The Kotter way. International Journal of
Innovation Science. 3(3). pp.141-150.
Hrebiniak, L.G., 2013. Making strategy work: Leading effective execution and change. FT
Press.
Keppel, G., and et. al., 2012. Identifying and understanding safe havens for biodiversity under
climate change. Global Ecology and Biogeography. 21(4). pp.393-404.
Malenfant, K. J., 2010. Leading change in the system of scholarly communication: A case
study of engaging liaison librarians for outreach to faculty. College & Research
Libraries. 71(1). pp.63-76.
Mukherjee, and et. al., 2012. Leading virtual teams: how do social, cognitive, and behavioral
capabilities matter?. Management Decision. 50(2). pp.273-290.
Parsons, M.L. and Cornett, P.A., 2011. Leading change for sustainability. Nurse leader. 9(4).
pp.36-40.
Suchman, A.L., Sluyter, D.J. and Williamson, P.R. Eds., 2011. Leading change in
healthcare: Transforming organizations using complexity, positive psychology and
relationship-centered care. Radcliffe Publishing.
Thomas, T., and et. al., 2013. Leading change and innovation in teacher preparation: A
blueprint for developing TPACK ready teacher candidates. TechTrends. 57(5).
pp.55-63.
van der Voet, J., Kuipers, B. and Groeneveld, S., 2015. Held back and pushed forward:
leading change in a complex public sector environment. Journal of Organizational
Change Management. 28(2). pp.290-300.
Yoder-Wise, P.S., 2014. Leading and Managing in Nursing-E-Book. Elsevier Health
Sciences.

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