Week 6 - Apply: Signature Assignment: Change Management Presentation

Positive Organizational Change

Gbenga Adeogun

University of Phoenix

December 07, 2021

LDR/535

This pandemic has forced Starbucks to shift its business model to Starbucks Pickup, which no longer allows customers to stop in and get a cup of coffee. As a consequence, sales will decline at the store. Because of their plan to shut down 400 stores, this has been made public for the first time.

Making a sense of urgency is the first stage, according to Kotter.

A five-page letter signed by Starbucks CEO, president, and CFO was included in the company's most recent SEC filings (BARISO, 2020). During this announcement, 400 of the company's stores will be shut down in the following 18 months (BARISO, 2020). People will be given advance notice of the closure of these businesses, allowing them to begin searching for other employment opportunities, if this deal line is adopted (BARISO, 2020).

Second, Kotter suggests forming a long-term, mutually beneficial relationship.

To avoid having to leave their present location and order their drink via the app, Starbucks would allow customers to have their drink picked up and delivered by another company (BARISO, 2020). They will be able to collaborate with one another because of the possibility of their employees being relocated overseas (BARISO, 2020). By working with these other firms, you'll be able to provide your customers with additional options and avoid making them wait in line (BARISO, 2020).

The third stage of the Kotter's development. Create a vision for the future and imagine it.

Allowing them to reorganize their store portfolio, they will be able to combine Starbucks pick-up sites in highly populated metropolitan regions (BARISO, 2020). improves the customer experience and positions Starbucks for long-term success" (BARISO, 2020).

It's Kotter's fourth step. Make it very clear what you want to accomplish.

The company was able to inform all stakeholders of the planned change and explain how the firm would grow as a consequence of the change by sending the letter (BARISO, 2020). However, there is no assurance that this will help the firm grow, but it does show how they may thrive in these difficult conditions (BARISO, 2020).

According to Kotter's Step Five, remove any impediments.

To ensure that all orders are delivered to the Pickup businesses, certain locations will be closed (BARISO, 2020). This means there will be less space to rent in a given area (BARISO, 2020). It's much simpler to remain on the same page when decisions are communicated to all relevant stakeholders in a timely manner (BARISO, 2020).

According to Kotter's sixth stage, make short-term gains.

At least 80 percent of pre-pandemic sales were already achieved, so the goal is to maintain that level with these additional alterations (BARISO, 2020). A new strategy may then be devised to take advantage of this change in customer behavior (BARISO, 2020).

"Building on the Change" is the last step, according to Kotter.

As a result, the company will have to update their software and eliminate all options other than shop-to-go orders from the menu (BARISO, 2020). Instead of having to wait in line, more drinks will be prepared and brought to the customers (BARISO, 2020).

Kotter's Step Eight paradigm provides the foundation for changes in company culture.

People will be able to get their drinks more quickly since there will be no places to sit or linger around (BARISO, 2020). If customers can't remain long enough to consume more than one cup of coffee, sales will be reduced (BARISO, 2020). There is nothing wrong with the notion that smaller sites will save money on renting space (BARISO, 2020).

We don't know when things will return to normal as a result of the current outbreak. It will be possible for the organization to grow and react to changing market conditions as a consequence of this strategic planning. They did their best with the resources they had, even if this was a last-minute change.

References

BARISO, J. (2020). Starbucks Just Announced a Drastic Change. Retrieved from https://www.inc.com/justin-bariso/starbucks-pickup-is-a-smart-covid-related- adjustment.html