Understanding and Leading Change: Starbucks vs. Costa Report

This report delves into the critical aspects of understanding and leading organizational change, focusing on the impact of change on business performance, leadership, individual team members, and organizational strategies. It provides a comparison of operational strategies adopted by Starbucks and Costa in response to market changes, including competency-based strategies, pricing, promotions, and operational processes. The report examines internal and external drivers of change, such as market share, resource utilization, technological advancements, and organizational culture. It also assesses the impact of these drivers on leadership, teams, and individuals within an organization. Furthermore, the report explores strategies to minimize the negative impacts of change and discusses barriers affecting change implementation and leadership decision-making. Finally, it highlights the application of suitable leadership styles in the organizational context, offering insights into effective change management practices. The report provides a comprehensive analysis of change management, offering practical insights into how to navigate organizational transformations effectively.

Understanding and Leading
Changes

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Comparison between different organizational operational strategies after adopting changes
.....................................................................................................................................................1
P2 Measurement of internal and external drivers of change on leadership, individuals and
team.............................................................................................................................................4
P3 Evaluate how to minimize negative impact of change on organization................................6
TASK 2............................................................................................................................................8
P4 Barriers which effect the change and affect leadership decision making strategies..............8
TASK 3............................................................................................................................................9
P5 Application of suitable leadership style in organizational context........................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In present scenario, changes are significant for the business in which they easily
improve their quality performance. For this effectively implement is one the important task
for the enterprise because it is relate with the overall success in market place. Changes are
take place in business entity at fast speed which directly impact on its performance level
(Ayyagari, Grover and Purvis, 2011). Along with this changes in business environment,
culture, methods and strategies are directly impact on the overall image of the company. In
present time, every business having flexible nature in which they easily implement all the
changes and get positive results. With the help of this organization enhance their brand
image and increase customers base towards its services. Present report is based on
understating and leading change which helps in improving the performance of the company.
Along with this, it also discussed about impact of changes on business structure. In this
various drivers of changes which directly impact on leadership, team and individuals is also
mentioned. Furthermore, report is discussed with two different organization in same
business such as Starbucks and Costa. This report is also discussed that how to reduce
negative impact on the business organization in order to enhance goodwill of enterprise.
TASK 1
P1 Comparison between different organizational operational strategies after adopting
changes
Organizational changes are rapidly take place within the business which affect the
overall performance of the company and also impact on its methods and strategies. It is
related with operational and management concept because it include market trends, culture,
technologies, tactics of market, customers preferences and many more. Along with this,
change is an act as well as process which is more effective to improve the performance level
of the company and also define something different within the organizational activities. All
are continuously changed so that it is more important for the company to effectively
understand and implement within their activities which leads in defining positive outcomes.
Along with this it is significant for business to adopt all the favourable and positive changes
in order to take more advantage for enhancing their performance level at market place. All
the changes relate with current situation in which it define better opportunities to the
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company (Berry, 2011). It also aid in increasing customers base by maintaining better
relationship with new customers. In this context there are two different organization which
deal with same industry such as Costa and Starbucks. Both are operate their restaurant in
various location.
Starbucks:
Starbucks is one of the biggest and popular American restaurant which operate their
business in various location in which they offer coffee and refreshment services to their
customers in order to get their higher satisfaction. This restaurant found by Grodon bowker,
Jerry Baldwin and Zev Siegl in 1971 in US. In the initial stage they operate their business
form the streets. Now they offer their services in more than 50 countries and generate large
revenue.
Costa:
Costa is also biggest and famous restaurant which provide services to their
customers in different areas in order to generate high revenue. They operate their coffee
shop in more than 30 countries and invite large number of customers by delivering better
products. It was founded by costa family in 1971 in which they offer roasted coffee beans in
London streets. In present time they operate more than 3400 stores in different locations.
Now costa is also expand their business and set their shops in India also. They has large
number of market share in UK and also take second position in market place by delivering
quality services to their customers.
Along with this there are some strategies in both organizational context in which
they adopted changes to expand their business in market place are as follows:
Strategies Starbucks Costa
Competency
based
strategies
It is one of the effective strategies in
which organization analysis their
customers taste and preferences and
provide then their services
accordingly. Products of Starbucks is
nor separate before but they
implement some changes strategies
and divide their products in various
Costa coffee shop is also famous
restaurant in which they offer teas,
chocolates, frescato and many more
products in market. They change
their charging policies within their
operational activities. In this they
use product change strategy in
which they introduce new and
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categorise. They keep their
customers taste in top and set their
services accordingly. In this context,
company provide cold and hot
coffee, sandwiches, roasted beans,
ice creams and many more which
helps in generating more revenue by
delivering their products in larger
number of customers as per their
taste. Furthermore they also change
their many card in which they set
their different categorise of the
products as per customers demand.
quality products and services to their
customers as per their requirements
and get their satisfaction level.
Pricing
strategies
As per their image and reputation in
global market they had high cost of
their products which reduce their
customers interest towards the
company because no one wants to
pay high cost of the products (Bolton
and et. al., 2013). It directly impact
on overall profitability of the
company. After that they analysed
and include some policies and
economic product in which they
define their price low to high which
leads in increasing performance
level and get positive results. With
the help of this they easily increase
their customers base and satisfied
them effectively.
Costa define their effective cost of
the products and also provide
economic option to their customers.
They use competitive pricing
strategies to offer quality services
and beat their competitors at market
place. But some time its strategy is
not effective to expand their
business. In this they implement
some changes and categorised their
price strategies and product also.
With the help of this they getting
competitive advantage in market
place.
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Promotions
and
advertising
strategies
Starbucks invest their lots of funds
in better advertisement and
promotion in order to invite large
number of customers. It is biggest
reason of this company is product
rate is high and profitability is less.
They use various sources of
promotion such as radios, TV,
printing and many more. In recent
time they lead their business in
global level and also capture large
number of market share due to their
positive brand image in over the
world.
Costa is not spend their money in
promoting their services because
they believes in serving quality
services to their customers. But in
present time marketing and
adverting is must in which it cover
all the market and customers. So
that also give practical presentation
of their products and services in
order to introduce new and
innovative products in front to
customers which helps in increasing
their customers base and
profitability also.
Process Starbucks operate their various
stores in which large number of
customers use its products for satisfy
their needs. Now they change their
technologies and start online
delivery and placing orders in which
they increase their customers base
within their organization which leads
in generating large number of
profitability in most effective
manner.
Costa coffee has their different
delivery process of the products in
which they take orders and serve
their services on customers tables.
This methods is related with
traditional tactics (Calhoun and
Tedeschi, 2014). Now various
changes are evaluated in this process
in which they effectively adopt and
implement within their organization
in order to get better results.
P2 Measurement of internal and external drivers of change on leadership, individuals and
team
Leadership is an effective creation which helps in enhancing the team performance
within the organization by providing better direction. With the help of this all the members
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work as a team in order to achieve all the common goals and objectives in systematic
manner. In this, leader are the person who have capability to leads as well as provide better
direction to their staff members in order to achieve better results. In this context various
type of leadership styles are used by the organization as per overall structure of the business.
With the help of this all the team members are effective perform their work and attain their
targets (FRANCO, 2012). Along with this various issues and problems are faced by the
organization which directly affect behaviour of team, leadership and individuals. There are
some internal and external drivers of changes are are follows:
Change drivers Business organization
Internal drivers of change:  Organization's market share is
largely impact on the organization
performance in which individuals,
team and leadership also affected
because market share is totally
depend on the company success at
market place. In context of
Starbucks, if they are fails in
implementing all the changes within
their organization that they reduce
their productivity in market place
and also reduce customers base
which negatively impact on the
overall performance of the company.
 Resources is also exist in inside of
the company which largely affect the
leadership decision making process.
If organization does not utilize their
available resources so that they fails
in implementing all the changes in
effective manner. So that it is
important duty of manager to provide
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better guidance to their staff
members so that they properly use
their resources in order to enhance
their productivity and profitability
also.
 Improvement in policies and
technologies is also effect the
organization performance in positive
way because it leads in attracting
large number of customers towards
its products and services. With the
help of this employees effectively
improve their performance level and
productivity also which leads in
attaining the competitive advantage
in market place and also get positive
results.
 Culture and theme of the business
organization is also affect the overall
performance and leadership style
because all the changes are
implement by the leaders. For better
improvement within the organization
it is important for the manager as
well as leader to encourage
employees confidence so that they
can able to implement all the changes
effectively and attain positive
outcomes.
 Wastage and scrap are the factors
which directly impact on its
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productivity because all are the
major part of the business which
affect cost of the products (Hallinger,
2011).
External drivers of change:
 Customers: These are the important
external drivers for the company. It
is more important for Starbucks to
understand their customers taste and
preferences because its rapidly
changes according to the market
trends (Hayes, 2014). For enhance
overall performance as well as
productivity of the company is to
offer quality services as per their
needs so that they easily get their
higher satisfaction and attain
competitive advantage form its
rivals.
 Competitors: In today's business
environment, competition is very
high in which company take more
risk to improve their performance as
compare to their competitors. For
take competitive advantage, manager
of Starbucks provide better training
programs to their employees so that
they effectively perform their work
and improve overall performance.
With the help of this company easily
implement all the changes and attain
positive outcomes in systematic
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manner.
 Investors: Better implementation of
new policies required huge financial
funds so that they take help from
investors like banks, businessmen
and another financial institution.
With the help of this company
effectively implement all the changes
and improve their performance level.
 Technology: New and innovative
technologies are more important for
the company. Changes in
technologies helps in improving
production process of the company
in which fin easily offer quality
products and attain higher
profitability of the company in
market place. With the help of this
Starbucks reduce their production
cost and attain better results.
 Government: It is one of the
important external factor for business
organization. In this government
made some policies and legislation
which have to follow by the
Starbucks to maintain their ethical
performance within the organization.
With the help of this company easily
implement their changes in most
effective manner.
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Both drivers of changes are directly effect the overall performance of the business
(Papadopoulos, Radnor and Merali, 2011). In this important duty of the leader and manager
to effectively implement their changes and attain positive outcomes.
P3 Evaluate how to minimize negative impact of change on organization
It is more important for the business to reduce the negative impact of all the changes
on organizational activities which leads in enhancing the overall performance of the
employees and company also. Changes are important for the business growth but some time
it negatively affect the performance of the business so that it is important duty for manager
and leader minimize the negative impact by effectively analysis all the changes within the
company (Pettigrew, 2013). With the help of this for easily take competitive advantage from
its rivals and capture larger market share. Along with this, advancement and changes are
define risk factors which directly affect the organizational structure. For this Starbucks set
their committee and panels in which they effectively analysis the risk factors of changes in
order to maintain the better sustainability within the market place. In this context, there are
some negative impact of changes on organisation. All are as follows:
 Employee resistance: Implementation of changes in business organization is
increase employees resistance. The big reason of this impact is lack of knowledge
about implementation of new policies which directly affect the employees. So that it
is important duty of manager to provide better training and development programs
about software and policies so that they effectively perform their work and
implement all the changes.
 Expenses: Changes required huge amount of financial resources for better
implementation within the Starbucks. In which large companies easily generate
more finance form investors and implement new policies. But it is more complex
for small business organization to attain finance because they have little capital in
market place (Ryan and et. al., 2011). If company implement all the changes with
analysis its financial condition than they face various problems and increase their
product cost which directly minimize the overall profitability. In this context,
manager and leader analysis effective option to generate finance in order to
implement changes within organization in effective manner.
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 Lack of support and failure: It is also a negative cause for the management which
fails the effective implementation of new policies. If employees does not use
effective and new policies than they fails in adopting all he changes. In this context,
it is more important for the management and staff members to take better decision
and make new policies commitment in order to attain positive outcomes.
 Morale: Some time changes are highly affect the employees performance. If
company does not implement al the changes effectively than they reduce employees
morale which negatively impact on their productivity level. It is the biggest reason
for increasing employees turnover and also reduce the financial resources of the
company (Schexnider, 2013). So that it is important for the company to implement
new policies as well as changes appropriately otherwise it negatively effect the
workers performance level.
All these are effective ways to minimize the negative impact of all the changes
within the organization. For maintain the better performance, it is important duty of
management to use effective and strong communication so that they easily understand the
changes and dynamics in most effective manner.
TASK 2
P4 Barriers which effect the change and affect leadership decision making strategies
Leadership is an effective capability of the company in which leader play important
role because they provide better guidance to their team members so that they effectively
perform and attain their goals in appropriate time period. With the help of better leadership
company achieve their organizational goals and objective and also enhance their overall
productivity at market place. In this decision making process is also an important process in
which leader determine appropriate plan and activities which leads in increasing
productivity as well as profitability of the business in systematic way. In this context,
various factors are directly affect the leadership decision making of Starbucks. For example,
management department of the company search a new marketing strategies to improve their
performance. In this leader frame the effective plan according to their staff members
capabilities towards the work. In which leader firstly sort the plan, define effective
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