FACULTY OF BUSINESS AND ACCOUNTANCY

UNIVERSITI SELANGOR
SEMESTER NOVEMBER 2022 TEST 2 – GROUP 5

COURSE : CHANGE MANAGEMENT

COURSE CODE : PMS3293
LECTURER : MADAM NOOR MALINDA MOHD MOHAN

NAME LIVYASRI PALASUPARAMANIAM

STUDENT ID 4211002771

QUESTION COURSE LEARNING OUTCOME MARKS

1 CLO 3: Practice on-going and continuous quality /6
improvement in maximizing competitiveness in order to
2 produce goods or services of world-class quality /4

TOTAL /10

Answer all the questions below.

QUESTION 1 (6 MARKS)
Jay Galbraith (2002) developed the Star Model which consist of five main elements to help
organization manage change effectively. Describe any TWO (2) implications of misalignment of
those elements towards an organization.

ANSWER:

Inefficient Operations
If an organization's processes are not aligned with its structure and strategy, its day-to-day
operations may be inefficient. For example, if a company has a decentralised structure with
decision-making power distributed across multiple departments but its processes are highly
centralised, decision-making may be delayed, resulting in a slow response to market changes.
Misalignment of structure, processes, and strategy can also waste time and resources as
employees struggle to balance competing priorities and responsibilities.

Poor Performance
Poor performance can result from a misalignment between an organization's people and its
strategy, structure, and rewards. Employees who are not incentivized to meet the organization's
goals may prioritise their own goals, resulting in a lack of focus on achieving the company's
goals. This can result in decreased productivity, lower work quality, and, ultimately, a negative
impact on the bottom line. Similarly, if the organisational structure does not support its people's
required skills and capabilities, it can result in a workforce that is unable to deliver on the
organization's goals, resulting in poor performance.
QUESTION 2 (4 MARKS)
Starbucks is a highly globalized company with more than 30,000 outlets in various countries.
Thus, the primary political factor that affects the company is the laws and regulations of the
various regional markets. Globally regional business integration has become a trend, so
Starbucks can expect to grow even further in countries outside the United States.
Explain any THREE (3) factors that can affect Starbucks business based on the PESTEL
analysis.

ANSWER:

Political Factors
Laws and regulations in various regional markets, as mentioned in the question, can have a
significant impact on Starbucks. Changes in taxation policies, labour laws, and regulations
governing the import and export of goods, for example, can raise the cost of production and
reduce profitability. Furthermore, political unrest and conflicts in certain countries can disrupt
the supply chain, resulting in a shortage of raw materials and negatively impacting the company's
business.

Social Factors
Starbucks' success is heavily reliant on its ability to adapt to various cultural and social norms in
various countries. To maintain relevance and customer loyalty, the company must pay attention
to demographic trends and social changes. For example, the growing emphasis on health and
wellness has resulted in an increase in demand for organic and plant-based food and beverage
options. Starbucks has responded to this trend by providing soy, almond, and coconut milk as
alternative milk options. Furthermore, the trend of remote working, particularly during the
COVID-19 pandemic, has increased demand for delivery and takeout services.

Technology Factors
Technology is important in the coffee industry, and Starbucks has been quick to adopt new
technologies to improve its operations and improve the customer experience. For example, the
company's mobile app allows customers to pre-order and pay for their drinks, reducing in-store
wait times. Starbucks has also invested in artificial intelligence and machine learning
technologies to improve inventory management and personalise the customer experience. These
technological advancements, however, bring with them new challenges, such as data privacy
concerns and the need to keep up with the rapid pace of technological change.

-END OF QUESTION PAPER-