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Models of Strategic Change

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Changes are divided on the basis of extent and repetition of its requirement. The first model presented over here in this paper illustrates the implementation of a change plan. According to this, First of all, company’s competitive position is identified and evaluated and changes are made according to the with the requirement. Then, Organization forecasts its state of future perspective in order to make advanced changes and hence considers the barriers to strategic change being made in the firm. A recent approach for strategic change is identified and new initiatives for change are designed Then company operating and bringing about changes looks after and creates the framework of change. Each and every feature of change is noticed by the organization to make further improvements. changes are managed accordingly and leadership issues are defined Then company operating and bringing about changes looks after and creates the framework of change. A recent approach to strategic change is identified and new initiatives for change are designed. Further, there is another important model, which can be presented and explained with respect to Starbucks’ strategic change process and its implementation. Then, changes are managed accordingly and leadership issues are defined.

In this context, the changes took place in relation to their marketing strategies, capabilities of management, operational competency and human resource management Further there is another important model, which can be presented and explained with respect to Starbucks’ strategic change process and its implementation. According to this they have made changes in its core competencies and decided to add more value to their products being offered and thus set an image of modishness and extravagance.It had a few strategies which were being implemented by the management in order to increase effectiveness and efficiency of their business. One of the strategies adopted by Starbucks is a competency-based strategy. According to this, they have made changes in its core competencies and decided to add more values to their products being offered and thus set an image of modishness and extravagance. In this context, the changes took place in relation to their marketing strategies, capabilities of management, operational competency and human resource management. Next, Starbucks has focus strategy leading company’s cost leadership, product differentiation and focus on customers. This model represents a strategic business change of Starbucks stating that it focuses on investing in its communities and investors and creates the job for the USA.

In this case, Starbucks’s strategic change model came into existence and presented its support for bad economic conditions. As Starbucks initiates for making an investment in creating jobs for the USA, it makes an attempt to jerk the current economy. Moreover, the twofold strategy of Starbucks for its business’ growth includes its aim of investing in key initiatives. In this regard, it focuses on the demand of customers even in the time of economic downturn and creates a good fund for the economy.

Moreover, the relevancy can be seen that a team of Starbucks put an idea forward of partnering with opportunity finance network, that is a national network of financial institutions working for community development. It helped the government and banks at the hard time of recession when banks lost its assets up to some extent and mortgages went wrong. It made a strategic change and created a different and unique site for taking the donations online

Assessment of strategic intervention techniques:

Thinking for strategic change has emerged over the time as customers get more focused and demand the value and quality of the product. Managing a process of change in the organization has the same significance as the change itself has. The process and environment of change permit the techniques intervention’s techniques such as role-playing, development of the team, survey feedback and process consultation.

Over the decades ago, management thinkers have explained multiple strategic intervention techniques to be used in the change process. For this, management of an organization concentrates on technology and structure of its business and seeks the changes to be made This section’s main aim is to assess the value of these intervention techniques. These techniques have been identified from organizational development area which affects the desired organizational change within the premises. This section’s main aim is to assess the value of this intervention techniques first, techno structural interventions’ use is to focus mainly on improving and developing organizations’ effectiveness, efficiency, and human development. Following aspects are considered in using this intervention technique in strategic change process:

Organizational system and structure

Redesigning of business process

Space and physical settings within the organization’s environment

Change management

Job design/enrichment

All these aspects considered as technostructure intervention technique have a supreme level of value throughout the change process. Next, management and leadership techniques of organizational development are valuable from both individual and professional point of view because this technique aims to increase both formal and informal leaders’ effectiveness by improving organization’s overall performance. For this, following are the terms that are used for improvement.

Professional development by mentoring, coaching and action learning

Use of management by objective

Succession planning

360-degree feedback system

Participative management and technical skills training to the leaders.

Accordingly, there is one more important intervention technique which is team development and group process interventions. Through this, the aim is set for a team or a group and each member of that team is allocated the different task to perform. It helps to develop the interpersonal relationships among group members of the organization and clarifies and analyzes the roles. Then, an individual or interpersonal process can also be taken into consideration while discussing strategic change intervention techniques. This technique aims to improve individual’s skills, knowledge and competencies to compete with any sort of challenges being faced by the organization. The types of techniques involved in this are learning strategies, interpersonal communication, and life transitions.

Need for change:

When it is talked about the need for strategic changes in an organization, there are some factors which indicate the need for change. This can be changed in customers taste and preference toward a specific product, and competitor’s strong position in the market may also be a point of indication demanding for the need of change. Not only such basic factors, but some economic factors such as inflation rate, changes in GDP growth and in interest rates also affect the healthy position of an organization in the market. Budget constraints, changes in legislation, technology, mergers & acquisitions and restructuring operations are other important factors contributing to need for a change within the organization.

Furthermore, talking about Starbucks’s need for strategic change in its organization was to enhance customer’s experience. The management of Starbucks decided in a meeting to make some strategic changes to their organization in terms of renewing their focus on customer’s experience. Another reason for change’s need was their weak position in U.S market and floppy stock price. In this regard, the company made some job cuts and some of the jobs were reshuffled. They decided to win the customers’ heart by offering them energy drinks and to make an entry in health business as well.

Factors driving the need for change:

There are so many factors which drive the need for change within an organization. Most importantly, the economic downturn is one of them. In case of Starbucks, it faced major challenges in U. Smarket in its economically down positionThis situation of the recession made an impact on both businesses with increasing cost of operations and lesser profit margins, and the consumers of the products. On the other hand, the level of unemployment raised in the U.S also affected the organization and derived a need for change in its hiring, retaining and training policies. In this context, political and legal pressures also became most important factors driving the need for change. These legal and political systems included labor laws, regulations regarding food handling and other restrictions in business practices in a ground of both marketing and advertising.

Moreover, certification from the third party used by other organizations in order to gain social responsibility also affected and influenced the organization to make a change and put efforts to be more responsible. Another aspect is product and technology innovation which insist company to make a change in the organization in terms of better customer service by offering them high energy drinks and healthy products. Similarly, the use of Wi-Fi internet service facility can be provided to seek the attention of the customers that they utilize that technology for their personal or professional use. On a global level, the demographic aspects for coffee industry very much, therefore, Starbucks can take it as an opportunity and increase its market share and size in US market.

Resource implication:

If resources on not respond to whatever changes are planned and made, it will highly affect company’s business and its operations. The resources that would be a part of this change will be the staff of the company, IT infrastructure, other departmental heads and the project team. There can be following implications on account of not responding to the planned change:

First, if there would be improper information technology infrastructure system, it can create issues in the implementation of new and unique IT frameworks and may ultimately affect the entire project of change.

Secondly, Problem of increasing project time may arise due to lack of inactive participation and cooperation of departmental heads. This will further result in an exceeded cost of the project in the implementation of new IT systems in the organization as the team will not be able to meet its deadline on time of requirement.

Lack of project team’s motivation and dedication toward their work may affect the overall quality and planning of the project and on the other hand, IT team will automatically scrap the whole project.

Moreover, if the staff is not well trained for working on new IT systems, they may also cause a major problem and errors as they will not be able to fully utilize the system properly on account of not being motivated or trained.

The organization itself will have to bear a huge loss and face serious issues which may result in financial loss to the company and affect its future growth and sustainability.

Finally, this implication with respect to IT system, project team, staff and department heads will also affect the operational activities of the organization, as the motivation and enthusiasm level of the staff will be greatly impacted by this.

Systems to involve stakeholders in planning for change:

Stakeholders such as customers, employees, government, creditors, suppliers, etc have their interest vested with an organization as a whole. Therefore, it is required to take every stakeholder in confidence and convince properly in order to make successful and effective changes at the company level. In case of Starbucks, the following will be stakeholders who would be considered in change process:

First, managing director of the company

Second, finance head and the entire team

Director of information system department and team

Head of the purchasing department and team

A team of sales and sales head

Head of supply chain and logistics and the entire team

Director of human resource and team

Moreover, there are a few activities which are needed to be taken in order to convince the stakeholders to get them involved in the planning of change within the organization. The activities are as follows:

Communication strategy: If a proper communication strategy is formed in order to involve and inform the stakeholders about the change planning process, half of the job is considered to be done. These strategies can include meeting, conferences, e-mails, presentations, interviews, discussions and face-to-face interactions.

Through this, stakeholders consider themselves to be a key part of that process and feel working with enthusiasm and motivation.

Next, every stakeholder should be sent a formal invitation for attending meeting and presentations describing the purpose of change.

Afterward, they are made aware of the need and benefits of the changes that are being adopted. Similarly, minutes of the meeting are sent to the stakeholders via e-mail to get their feedback on same.

Consequently, key issues raised by the stakeholders in their sent feedbacks are resolved by framing a strategy and then they are told about it and convinced of the changes needed.

Developing a change management strategy with stakeholders:

There can be two kinds of people in strategic change decision planning. First, who are enthusiastic, motivated and are ready to accept the changes in the organization. Second, people those who can put resistance to change because of their personal behavior and emotional responses. Therefore, taking such individual behaviors into consideration, planned and well-established strategies should be brought forward to decide upon.

Leverage strategies: This strategy is focused upon for those who are the good adopters and always ready to grip the change. They support and cooperate with changes and make their significant influence.

Engagement strategies: This strategy mainly focuses on chief stakeholders those who have a significant influence on the change but are unwilling to adopt the changes. Therefore, strategy’s main aim is an alteration of influencers into adopters and then to utilize their influence on those who are less committed and interested in changes’ adoption.

Containment strategies: It is focused on the people who have are highly skilled, high skills, competencies, experience, and knowledge and can contribute to the changes but are not ready to adopt the changes and are resistance laggard.

Outplacementstrategies: In this strategy, those people have focused on who people are high and powerful influential resistance inventor. In addition, they are given an opportunity to show their interest and commitment to the process of change. Nonetheless, if they do not get agreement to it at all then explicit consequences are taken into account to deal with them.

Evaluation of systems used for stakeholders’ involvement:

All the stakeholders will be impacted by the changes being held within the organization. Therefore, it should be beforehand made aware of the change and keep them informed about the requirement of change being taken into account. Every stage of the change process should be presented to the stakeholders. As it has been discussed above that all this is made possible with the help of a communication strategy, it is also necessary to educate and make them aware of their importance in the whole process. Afterward, feedbacks and reviews received from every stakeholder are made a vital part of the change process and considered at every stage of the process. This makes them feel more involved, confident, engaged and motivated when they notice that they are being heard and given more significance in the entire process of change. As a result, the involvement of stakeholders in this process makes it’s smoother. In addition, they should not be treated in a way where they feel ignored or neglected.

Strategy for managing resistance to change:

If there happens a change in the organization, resistance is also a part of it. This shows that an organization can be affected by both positive and negative changes. Following are the principles for managing resistance to change:

Education and communication: involved stakeholders may be educated properly about the changes that have been brought by and needs to be adopted and their confusions and misapprehensions can be reshuffled. Additionally, their questions and worries can be answered out by communicating with them properly.

Participation and involvement: If the stakeholders are actively involved in the process of change through a well and appropriate strategy, this makes them feel a part of that and convince them not to resist the changes.

Negotiation and agreement: When an organization thinks and plans for a strategic change, it has to put a lot of thing at stake. Therefore, it needs to move equally towards the process by framing an agreement with all its members and negotiation with the management of the organization.

Facilitation and support: If people those who have participated in change process are facilitated and supported in an effective way, it boosts and foster their level of confidence and therefore sets an example for others who resist changing and are not ready to adopt them.

Change model to implement:

I studied stakeholders’involvement in the change process that a change model can be represented here for Starbucks to be implemented within their organization.

Firstly, Starbucks should delineate some systems for monitoring both internal and external factors for a company which may have positive or negative impact company’s overall business and other operational activities.

Secondly, Human capital as assets and liabilities: Human resources are valuable assets for any company. Therefore, Starbucks should create a strategy concerning the staff so they that they feel their importance and value in the organization and thus support in each and every activity of the company.

Linking both strategic and operational changes: If the organization takes a step ahead and links the strategic changes with staff’s routine works, it will help the staff accepting strategic changes easily.

Leading the charge: Starbucks should set the agenda concerning the directions, mission,vision, and values of the change. Moreover, these directions and values should be acceptable to the staff in order to contribute to the changes.

Overall consistency: Finally, the set agenda for strategic change and the plan should be consistent and should be the one which can serve competitive advantage to the organization.

Afterward, developing an implementation plan for strategic change in Starbucks, a complete process should be followed for implementation. Next section of this paper discusses that implementation plan in this regard.

Implementation plan:

An implementation plan determines the success and failure of the business projects and helps plan further movements. One of the following plans has been described below which is accepted widely for a strategic change by the organizations.

Stakeholders’ support should be gained and they all should be provided with full information about the need for adopting changes within the context.

Second, a full detailed plan should be prepared including starting date and multiple stages of the process and it should be approved by all department/senior heads and the decision-makers.

Then, a strategy is required in order to make the change feasible and practicable.

All the departments including, IT, HR, marketing, operations, finance, and admin should be asked for their specific involvement. Moreover, the staff should be rewarded on the basis of their performance and successful achievements.

Apart from this, training & development programs should be conducted to train the employees for skills required in the process.

Appropriate control methods and performance management systems should be there at the place. Additionally, every stage should be monitored and evaluated properly.

An area creating problems and becoming hurdles during the plan should be taken into care and be removed

Measures to monitor progress:

Monitoring of change process is an important part of it because it helps to analyze the current status of performance of the staff and change are happening. Therefore, further steps can be taken to improve the performance in order to achieve the objective of change effectively.

The measures for monitoring progress are as follows:

SMARTobjectives should be set for each individual team and review should be done on monthly basis.

Review policy should be adopted by both the individual and team level.

Standards benchmarking should be established by the management and the performance should be evaluated against those standards.

Moreover, performance systems should be set based on quantity system instead of the quality system while standards should be set based on quality systems and the performance should be compared.

Lastly, it can be said that 360-degree feedback system is considered one of the best systems among all to monitor the performance and to analyze directly or indirectly relatable aspects.

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