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A Case Study of an American Coffee Company

8 Pages 2014 Words 53134 Downloads

Introduction to Leadership and Change Management

In the present era there are many types of changes which organization have to adopt in order to make their business more successful. There are many types of problems which are faced by the company in order to make implementation of their changes. The present report is based on the leadership and change management of Starbucks and their CEO Howard Shult. This report make analysis on the Starbucks Corporation and their management. It also makes analysis on the leadership approach of the Howard Shult. In addition, this report make analysis on conceptual model which helps to company for making changes in their business operations. At last this report make analysis on the Current leadership and change management practice and Analysis on the leadership and change management.

Research methodology

Starbucks Corporation is an American coffee company and coffeehouse chain. The organization serves different types of cold drinks and Hot drinks to their customers. The company is running it business operations in more than 72 countries along with this the company is also making other products such as Coffee makers that brew espresso and regular chocolate.

For the making research the data are collected from the secondary source of data. The secondary source of data are those data which are collected through publish websites or books. In order to make research on the Starbucks data are collected from the secondary source. To make research data are mainly collected by the company's own websites. From this source gathered a lot of information regrading to entities current operations, their profits and their statements. Starbucks is US based coffeehouse which make different types of coffees for their customers. All these type of information are gather thorough the firm's websites. Along with this different types of publish sources are also used to make research more effective such as The Time and other related the sources (Smalley and 2016) .

Howard Shult who is CEO of company was recognized to his leadership and entrepreneurship in the market of coffee he is example of the supporting leadership and motivation of their employee (Hayes, 2014) In it leadership approach the organization make many types of achievement. In order to develop their employees skills he makes a development plan with the Arizona State University through which they provide training to their workers and helps to them for acquiring the skills which are important for the workers. He joined the company is 1982 as the operation and management. There are many types of challenges which are faced by the company during its leadership and organizational changes. In order to make successful operation in Australia the company have to make many changes in its leadership approach. Australians coffee lover prefer Australia local coffee shop Australians coffee lover prefer Australia local coffee shop. The CEO of the company make wrong decision as they need to serve the coffee as according to the Australian styles not in American styles. All these situations may create more problems for the company and its leadership approach.

Change Model

For the handling the situation in the Australia the company and its leaders need to follow the conceptual model (Binci, Cerruti and Braganza, 2016.) As according to this model, there are three steps which need to apply by the company during the organizational changes. Following are the seven elements model which can use be used by the organizations. This Model have seven elements through which they developed changes in the company.

Current leadership and change management practices in organization

Leadership traits, style and contingencies

As Starbucks is one of the biggest organization in the business vertical it is necessary for them to use different trait, style and contingencies in their leadership. Traditional way of leadership is not going to help Starbucks in attaining the future goals effectively. Starbucks leadership framework consist with various traits, style and contingencies such as:


A laissez faire concept of leadership indicates highly experienced and trained employees requires a little amount of supervision. These leadership style focuses on the production of employees needing supervision.


In an organization such as Starbucks leaders attaining the leadership style which allows them to make decision alone without the input of others.


Is also called democratic leadership style as it values the input of the team members but the responsibility of making the final decision in under the hand of participative leader.


It is widely used leadership style in the organization such as Starbucks in these leader will give rewards and punishment as per according to the performance of the employee.

There is a occurrence of step based change in the Starbucks. AS Starbucks needs the step of change to run their business successfully in the countries like Australia. The employees are the one who needs to understand the requirement of the change and the company needs to adopt a very clear and honest communication to trained them. There is three step change model suggested by Lewin's to the Starbucks which can be interconnect with the company's unfit situation in Australia. In the unfreeze phase Starbucks needs to collect various information such as market data and researches. As per the transition phase Starbucks needs to involve there employees and make them believe that there are benefits in the change even they are facing the difficult moments. Freeze phase considered as locking all the things and activities, here Starbucks needs to examine various way to make business in Australia. Starbucks is following the three step change model and it seems with the proper leadership this change will bring success for them in Australia.

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The leadership driven change brings lots of confusion among the employees. At first they are feeling confused to figure out the factors which leads the change. The change bring a new framework with it which creates uncertainty for the employees. If the regulations of changes not developed properly them implementation can bring adverse effect for the organization by the employees side (Lozano Ceulemans and Seatter, 2015.) The quality of the employees works will also affect badly with the change and definitely they will feel demotivated. The other side which change will bring is that it will be adopted by the employees and if employees feel that this change will be profitable for them in the long term that definitely they will accept the leadership driven change easily. This is why before implementing the change Starbucks need to create a framework where they can clearly indicate the change in front of employees.

Analysis on the leadership and change management

Schultz is a transactional and transformational leader. He inspires his team to work towards achieving the goals based on company ethical. Apart from the above changes the company and its leader are also facing many types of problems in their present situations. Starbucks is opening their coffeehouse in the Australia Australia have different type of cultural problems which the company can not bear.

The organization need to apply the change model in their business operations so they can maintain their current growth in the entity. Lewin's three step model is more suitable model for the firm. With the help of this model the company can make their desire changes easily. Following are the change model of the company which consists three steps which are as follows.


At this stage the company need to keep their business as usual and they keep motivating to their workers for adopting the changes in the company (Sinagra, Cunningham and Anglin, 2016) With the help of these stages the company keep motivating their workers so they can accept the change and keep focuses on the new solutions. For the solving the problems Australia , Starbuck has to motivated their workers so they can accept the changes.


At this stage the company need to adopt the certain changes, practices and beliefs which helps to company for bringing more innovation changes in the present structure. In the company have to make certain changes in their strategies so they can capture the Australian market.


At this stage the company need to make certain changes and adopt the strategics which helps to them for making adjustments.

There are many types of factors which are effecting the organization's and its business activities. In the Australia the company is facing many problems regarding to the continuing their business operations. There are certain factors which may become hinders in this organization for applying the changes. It is clear that, the current way that Starbucks make business do not fit in Australia market. The aim reason behind these changes is cultural barriers. The people of the Australia like to drink the coffees from the local shops where they get low price coffee. For implementation of these changes the biggest hinders employees is not performing as according to their cultural as they are not able to make effective interaction with their customers which directly impact on the organizational performance and their current business operations. So Starbucks need to give their more preferences to make effective interaction with their customers.

Suggest model for making changes in the company is adopting the servant changes in their organization. With the helps of this model theory they can make strong relations with their employees so they can easily apply the changes in their business operation. In the Starbucks the company is failed in the Australia because their workers are not able to make effective interactions with their customers. As per this approach, the company should ask to their employees before making nay kind of changes in the organization so they make motivate tir employees to adopt the changes. Along with this the company have to maintained its cultural in such a way that they can retain long term relations with its customers.

Starbucks was still a small start-up company focused on its products and services not on the organization and staff. So the company have to make their focuses more on the leaderships approach so they can make their leadership more effective (Binci, Cerruti and Braganza, 2016). In order to this the company have to give equal chances to their employees so they can maintain long term growth.


Summing up the present report it is concluded that leadership and its change management have huge impact on the organization and its business activities. Starbucks Corporation is an American coffee company and coffeehouse chain. From the above report it is concluded that with the help of the effective leader and their leadership the company make easily adopted the requires changes and make effective implication of their changes. There are many types of challenges which are faced by the company during its leadership and organizational changes. So they use many types of changes so they can capture the market in Australia. However, as the small scale the company need to make certain changes in its business operations as to focus more on the staff and employees


  • Nichols, A.L (2016). What do people desire in their leaders? The effect of leadership experience on desired leadership traits. Leadership & Organization Development Journal.
  • Vaid, J (2015). Successful Leadership: Traits Revisited. Global Journal of Enterprise Information System.
  • Smalley & (2016). Analysis of Leadership Perceptions, Skills and Traits as Perceived by Agribusiness and Industry Professionals. NACTA Journal.
  • Anderson, M.H. and Sun, P.Y., 2015. Reviewing leadership styles: Overlaps and the need for a new ‘full‐range’theory. International Journal of Management Reviews.
  • Binci, D., Cerruti, C. & Braganza, A (2016). Do vertical and shared leadership need each other in change management?. Leadership & Organization Development Journal.

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