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Organizational change failure case study
Organizational change failure case study
Can organizational change be transformational and transitional
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Force Field Analysis of Starbucks The force field analysis model is a general purpose technique model that was originally developed by Kurt Lewin. The force field analysis model views organizational behavior as a dynamic balance of forces working in opposite directions. These dynamic forces are seen as driving forces and restraining forces. The driving forces are the forces that support and invoke change within the organizations. The restraining forces are the forces that go against the change or hinder the ability of the organization to successfully implement change. A focre field analysis of Starbucks using one organizational change initiative that the organization is attempting to put into place will be reviewed. Organizational Change …show more content…
The current revenue stream accounts for major sales revenue being generated from coffee sales. Additionally, the United States accounted for nearly 44% of the total number of stores within the entire company. Further the Americas accounted for 54% of the number of stores all together. Out of the 191,000 “partners”/employees at Starbucks, 141,000 of them reside within the United States ("2014 Annual Report of the Starbucks Corporation"). The statics provide the current state of the organization and a basis for the force field analysis for the organization’s global …show more content…
Starbucks has identified high value opportunity in China, India, Brazil and Japan. The large expansion opportunity of twelve billion in China alone is enough to drive Starbucks to expand globally. The organization has planned to double its footprint to 3000 stores in China by 2019 ("Starbucks Details Five-Year Plan to Accelerate Profitable Growth", 2014). Starbucks realizes that eventually there will be a diminishing return on their existing market within the US due to market maturity and there are only two ways to expand through diversification in their offerings and entering new markets. Given the international opportunity for growth and expansive tea market in Asia, the company will enjoy the benefits of the growth opportunity. Management’s decision to continue to grow globally is a driving force that has yielded
Starbucks Corporation purchases and roasts whole bean coffees and sells them. As of September 28, 2003 (fiscal year-end 2003), Starbucks operated a total of 4,546 retail stores. Starbucks sells coffee and tea products through other channels, and, through certain of its equity investees. The Company has two operating segments, United States and International, each of which include Company-operated retail stores and Specialty Operations. Starbucks opened 602 new Company-operated stores during fiscal 2003. As of fiscal year-end, Starbucks had 3,779 Company-operated stores in the United States, 373 in the United Kingdom, 316 in Canada, 40 in Australia and 38 in Thailand. ¡]Smart money, 2004¡^
Also referred to as Lewin’s Force Field Analysis, the theory incorporates three separate stages known as unfreezing, moving and, freezing or refreezing (Bozak, 2003). The intention of the model is to identify factors that can impede change from occurring; influences that resist change sometimes called restraining or ‘static forces’ and forces that promote or drive change, referred to as ‘driving forces’. When health care organizations fully understand what behaviors drive or oppose change, then work to strengthen the positive driving forces, change can occur successfully (Bozak,
The model of the Five Competitive Forces was developed by Michael E. Porter in his book "Competitive Strategy: Techniques for Analyzing Industries and Competitors" in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes.
Analysing McDonalds (fast food outlets) using Porters 5 Forces model – sometimes called the Competitive Forces model.
With that store being there to help support new stores that would be entering the region. The goal was to have around 20 stores after two years of entering a market and have those stores expand even further into smaller cities and suburban locations. They also started to add drive-through because it made it more convenient for parents with small children. Some of the drawbacks of drive-through were that it took away from impulse buys and sometimes created bottlenecks in the line. Licensing the brand was also a great way that they expanded their business; by putting Starbucks in airports in malls they create a lot of foot traffic lead to successful stores. Starbucks carefully considered their image and the image they wanted to uphold when choosing licensees. The international market is now where Starbucks has the most potential to grow. As of right now Starbucks has plans to open 1,400 new stores in China. That’s more than half of the store it already has in China. The growth technique that I was most impressed with was that having two locations so close to each other would not saturate the market. The first store would see a drop in sales at first but would bounce back and the new store would grow. I notice we have that here, at Target in uptown you can actually see the Starbucks across the street while you are in line. Both seem pretty busy most of the time too.
...nal locations in the heaviest coffee drinking countries. This has to be done quickly as to get the jump on other that may also be considering this type of a move. At the same time they should be selling franchise right for the coffee carts. This will provide an increased cash flow as well. During all of this Starbucks should be looking at coffee producers who are in financial trouble or are looking at selling their farms. This has to be done discretely as not to cause unnecessary bad press. After they run a couple of these coffee producing farms for a few years they should be able to see how the whole operation works and determine its viability. Once it’s proven viable they should send out simultaneous offers to the biggest producers as to catch them and other coffee companies off guard. Starbucks also should be getting into the bottled Frappuccino as soon as possible. They should leave the introduction of the product up to Pepsi because of their past experience. They should leave their entry into the grocery store market until some of these other strategies are implemented. This will prove to be the best strategy for Starbucks being able to reach their long-term gaol.
Force Field Analysis is a technique developed my Kurt Lewin (Team Building, 2005). Force Field Analysis is the act of taking a proposed plan or solution and weighing the pros and cons (Force Field, 2005). The two forces in this analysis are the driving forces and the restraining forces. The driving forces are the forces which are affecting the situation in a positive way. They help the plan move forward. Restraining forces decrease the driving forces. Restraining forces are usually obstacles which would prevent the project from moving forward. Force Field Analysis is often used in conjunction with brainstorming.
Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).
When refer to Starbucks Coffee’s utilizes growth strategy as it supports the growth of firm by maximizing revenues from existing markets. The Starbucks Company applying this strategy by opening more company-owned stores and through licensing for merchandise and franchising in some countries such as Dominican Republic. Moreover, Starbucks plans to enter most countries such as Africa and the Middle East by expanding its global reach and Starbucks continues to transform their product mix, for an instance they started to offer Frappuccino and introduce sodas in 2014. Starbucks needs to keep improving and innovating ahead of competitors to support its growth. (Starbucks Coffee Company,
Force of change is a positive factor that an organization must put in place in order to drive and develop the entire organization’s environment. In this process of change more of resistance factors will try to hinder the change. The organization in this case experiences a repulsive force which absolutely adheres to reserve the existing ways of handling of issues. In the process the firm faces the competitive challenges from other organization and in meanwhile diseconomies of scale. Organizational change process is the progression of a given institution, far from its present state and towards some desired prospects to propagate its performance effectiveness. The organization’s work strategy persistently changes for better. Afterwards, the members’ organization must acclimatize to organization’s forces of change in a bid to conserve its relevancy and effectiveness. Lewin’s force field theory of change serves as a convenient model in understanding the change process. The role of the organization leader is both intense and diverse. For the organization to propel in its management processes, the organization leader must adhere to his increasing responsibilities of change. The leader must be the primary catalyst to speed up the mechanism used to assure the members of positivity effect of change and the expected period of its existence.
The improvements to coffee brewers and the innovation of Keurig has allowed for Starbucks to repackage their products and distribute it as a home product. Many of the flavors consumers could only get from the Starbucks espresso machine in the store can now be duplicated in the home. The opportunity for continued expansion is present. Coffee is quickly being consumed in almost every country in the world, Starbucks has a legitimate opportunity to influence those countries without the Starbucks brand to open their doors.
There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service.
Expansion of Domestic and International retail markets: With the target of 2000 stores by year 2000, Starbucks is on an expansion mode. They are expanding into the international markets and simultaneously they are diversifying in the domestic markets also. Initiatives like Frappuccino and the Doppio cart are part of this.