ANALYSING THE EFFECTIVE LEADERSHIP MANAGEMENT STYLES

AND HOW INFLUENCE IN THE GROWTH OF COMPANY CASE STUDY

FROM COSTA PLC.

NAME: HENOK BERAHANE

ST. ID: 21902470
MODULE: DEVELOPING LEADERSHIP AND MANAGEMENT SKILL
MODULE CODE: MG629

CONTENTS
1. PREFACE
2. INTRODUCTION
3. PRINCIPLE AND VALUES OF COSTA PLC
4. SIZE AND STRUCTURE OF THE ORGANSIZATION
5. STRATEGEY AND LEADERSHIP STYLES IN THE COSTA PLC
6. THEORY OF THE LEADERSHIP
7. LEADER VS MANAGER
8. EFFICENT LEADERSHIP CHANGES EFFCTS IN THE GROWTH OF THE
ORGANSATION
9. THE BEFEBEFIT OF TRANSFORNING STYLES OF LEADSERSHIP IN THE EXPAND
OF THE ORGANSIATION
10. REFERNCE

1. PREFACE
This paper is an academic research paper to fill full the assignment of MG 629 Developing the
leadership and management skill were require writing about the company which at the student
choice of the organisation in this paper the costa plc is select as the research place.

The beginning of this thesis is with the introduction of the company background and the reason why
select as the research area and the second part is about how costa as organisation established and
what are the values and principles of costa and understanding of the size of costa size as an
organisation and explores the structure of the leadership with the leadership styles applies at this
moment.

The third part of this paper more focused and research about what are the influence of the effective
transformation of the leadership styles in the growth and expanding of the costa plc as organisation
using KPI (key performance indicator)

The last part of this paper recommends for the future of the improvements of the costa growth and
expand as the organisation what strategies, methods and ways can be follows for better competitive
win in the coffee industry.

The citation part is in the last of this academic paper and follows the academic references styles
which is preferred to use the Harvard citation styles.

2. INTRODUCTION
Before introducing costa, which is more actively involved in the coffee industry which the
organization have an international business activity how is the coffee industry develop this can
help to the plight of the costa oversee activities and leadership and management styles.
According to the National coffee association the recognition of coffee or the foundation of coffee
as consumption dating back to the 12th century which the myths of Ethiopian goat herd named
kaladi have found the coffee after he notice/observe his goat eats brown berries from certain
trees the feels so energetic and doesn’t want to sleep at the nights after he notice that his
reports to local mayor or called abbot and become more known in the Ethiopian plateau
In 14th century the coffee cultivation starts in the Arabian Peninsula and gulfs the first country
believe starts the coffee cultivation is turkey, Ethiopia and Yemen which strategically located in
the middle East and Horn Africa (east Africa)
In the 15th and 16th centuries Syria, Egypt and Persia at the present known as Iran follows the
footsteps of Turkey, Ethiopia and Yemen toppled the production rate. coffee was publicly
consumption at considerable rate of public consumption in public areas people uses coffee as
the center of the information and thinking as the wise man drinks because more the customers
were from the teachers or scholars and authorities’ bodies. Coffee cultivation and consumption
introduces in Europe in age of discovery (exploration era) via the European explorers. The first
consumers were from scholars, teachers’ preachers and authorities termly used the same wise
man drinks.
By the 17th century the three is several coffee houses flourishes in the Europe countries prime
state in this case Britain and plantation is also flourishes in British colonies covers from east asia
to southern America and other powerful European country
How is the processed the coffee beans? The coffee beans processed has five stages of the
process that is first cultivation, grading, decaffeinated, roasting and packaging. The cultivation
process starts with sawing growing and final works ends in the sorting of green and red cherries
the red cherries has denser and more liquid have so after ripping of the red cover inside founds
with the green peas and that green peas become the raw coffee. The grading process has two
parts that is clean the green peas when ripped of the red cherries and second part and annulled
ready for processing roasted and packed in certain propose packaging. The third process is the
decaffeinated process this more focused on the extraction of the caffeine amount through the
oxymoron process where extraction much carbon dioxide through filtering transform to
triglycerides to become more decaf in other explanation is to reduce more caffeine character to
save some consumer who have not enjoy much caffeine gives them with some reduction of
naturally element of chemicals served with idea light of the light caffeine. Fourth process is the
roasted coffee at certain level of temperature which lies from180 degree Celsius to 250 degrees
Celsius and doing Grinding also means the manufactures tastes through the filter process how it
is tastes with certain standards. The final stage packaging followed standard packaging prevents
from Air moistening if not put putting on the right package with sealed one then it is losses the
aromatic qualities within short days.
costa established in 1971 by Sergio costa in London United Kingdom at first when Sergio
founded as roastery in French street London with purposes of supply to the local caterers mainly
the Italian caterers. Sergio family moved to United Kingdom from the Palma Italy in 1950s.
 the first costa opens in 1971 London UK since that costa transitions into one subsidiary of the
coffee business. It was acquired by white bread in 1995 and transfer to the Coca-Cola company
in £3bn worth trade deal. The business growth from coffee house to stores, caffes, restaurants,
caffe express vending and oversees outlets.

3. PRINCIPLE AND VALUES OF COSTA PLC

your beliefs, philosophies and the vision are your value and principle set up in your business which
derives your business (pinnia2022) with out the core value and principles in the organisation it
worthless to have business it is vital importance in shape of your business and gives better
understanding with business partners and customers for the business corporations and oversees
activities.
Creating values and principles extremely important for the organisation because they provided a
guidance and ethical compass for the organisational action and created common understanding
(Claudia 2002). The value and principle are creating by the founders or leaders of the organisation
adapted by the members of the organisation called shard value (Claudia 2002).
Share value or core value helps to define what is an organisation is, what organisation does and
what organisation aspire to be (Claudia), and this found on the organisational mission statement
where a brief description of why organisation is exist.
According to the company mission statements of 2022 Costa wants to provide most loved brand
coffee boldly stated that to save the world from mediocre coffee. Understanding from this phase the
costa wants to serve not better but best coffee to customers never down to the better.
Costa Coffee shows its love and ambitions for coffee through its vision statement, “Our vision for the
future: to be the world’s most loved coffee brand. We have big growth plans, whether through our
stores, our Express machines, or the beans we sell”. (Note from costa stamen 2022)
Costa has set of core value that has expect all its partners, associates, customers, and team
members to follow diligently and these values are determined to how costa deals with customers,
conducts its business, and treats its employees.
1. Passion: costa expect/desired that every have the same level of passion for coffee as the
founders did. It wants its employee passionate about what they do how they do
2. Courage: wants to have idea and passion drive with problem solvers to help stay the
company competitive and have courage to innovate and try new things in fast paced
environments
3. Warmth: wants to have the customers feels warmth and refreshing experience. Expects to
help hands and warm and smiles welcomes its all about how to attract and retain customers
4. Trust: being accountable and meet the customers’ expectations
5. Diversity and inclusion: costa advocates diversity and inclusion. Promoting the harmonious
and progressive working environment where everyone mutually respects for each other.
Costa have LGBT networks where it shows that the company stands on human first and
other believes also mutually treated with utmost respect.

4 SIZE AND STRUCTURE OF THE ORGANSIZATION

 Organisational theories derive different definition of organisational theories it covers different
factors for instance. For instance, Hitt, Chet, Miller and Colella (2009) defines the organizational
structure is the formal arrangement work roles and authority relationship that integrates the
managers and team-members work together. according to this point of view every work position
has clearly identifies and explain what the role is who is doing what is work relationship and
what is your positions. Mullins (2010) set out structure as framework for an organisation for
enable application of the process are carried out.
The costa has functional type of organisational structure and also introduces the functional
system applications. functional organisational system quite different from the operational
structure the similarities have both have like tree chart structure but applies differently.
Functional system is applying where the manager acting or have responsibility of executive roles
most of the branch or store decision taken by the branch or store manager while operational
system is applying where the branch or store manager have limited responsibilities and the
hiring of new staffs decision were taken by the regional manager or human resource higher
office departments in the functional system the HR departments still active but his role to
support and monitor of the sequency of volume of hiring new staffs. There fore costa has certain
structure’s higher structure is the CEO and second step is the regional management staffs with
other departments including HR and the third step is the store and team members as the follows
charts

COSTA STRUCTURIAL CHARTS

CEO

SECRETARY

LOGISTICS HR COSTA ENVIRN

PLANT
AND SUPLY DEPART FOUND OMENT
DEPART
MANAGEM MET ATION AL DEP
MENT
ET
MARKE WASTE
TALENT COSTA
TING CONTRO
MANAG REGIONAL OVERSEE
TEAM L TEAM
EMENT MANAGEM CHARIES
TEAM ENT TEAM PROJECTS

TEAM C
TEAM A TEAM B
HAS 8
HAS 8 HAS 8
MEMBERS
MEMEBRS MEMBERS

Fig1 costa chart organisation

5.STRATEGEY AND LEADERSHIP STYLES IN THE COSTA PLC

Strategy is coming after inserts the business aim, gaols and business objectives it is really determine
the long-term plan of the over-see business actions. Gary Johnsons and Kevan Scholes (2020)
explains that strategy determines the scope and direction over long periods. In this case the CEO’s
and other strategist for them strategy determines how the resources should be configured/allocated
to meet the needs of markets and stakeholders
While Michael porter chief expert of strategies at Harvard university business college emphasis
strategy is define as the explaining of business unique position that should determine on how
organisational resources, skills and competency combined together. He even 5 forces framework for
competition in 1979. In short words strategy is the goals, vison and overall plans what are you going
to do in over period. Strategy is more or less is the business decision related to the business visions
and influenced the business structures.
Leadership styles is way the manager exercise in authority in their workplace (Adnan 2022).
Oncourse covers the managers issue raise in the workplace how to deal with colleges and their team
members.
What is the strategy of costa? According to the mission statements 2022 to provide the best coffee
to their clients their clients and gain attain more customers and stayed competitive and winners in
the competition markets this short and long term of strategy of costa and their vision to have dream
loved brand coffee what style of leadership follow is key questions require to answer
Let’s look the three styles which this paper like to review and match with the costa strategies and
structure what styles should be follow will be talked ain the recommendation section of this paper.
Autocratic styles of leaderships: this is also known as classic approach styles of leaderships which
the manager or autoreactive does not consult the decision making with fellow team members the
characterisation of this style of leadership is not inclusive in the decision making with follow member
the employees expect to receive and obey orders and doing or not doing this the consequence goes
to rewards or punishments.
DEMOCRATIC STYLE OF LEADERSHIP: this style of leadership is known as the participative approach
of leaderships as it is encouraging the participation of employees and follow members in decision
making and have common responsibility on decision making. In these styles the managers keep eyes
and informed the employees and have shared participation and responsibility resolving the
problems. This style requires the manager gathers information before making decisions from staffs.
BURCRATIC STYLE OF LEADERSHIP: this type styles requires the manager should go by book and
everything should be done according to the policy and procedures.
TRANSACTIONAL STYLE OF LEADERSHIP: the managers use rewards the main instruments to
increase motivation and expects followers for better performance and good performances are
appreciated.
According to the costa structure chart more authorities have the manager as the same time the new
coffee flavours and drinks such as festive and seasonal drinks decided by the plant departments as
well as the Head office leads jointly by the CEO’S and Secretary offices the team members including
the managers has required to perform though costa follows now is mix of the autocratic and
transactional styles of leaderships.
Costa offers different seasonal and festive drinks with different promotions such as the coffee lovers
promotions and coffee beans points promotion buy eight drinks gets one free drinks this promotions
still retains and attracts a new customers and different rewards towards the staff members such as
discount rewards, offers to covers some fees for instance if some staffs are students supports
financial supports under the student financial support considerable parking and other discounts
promotions towards staffs this contributes to retain and motivate the team members including
encourages to add their innovative ideas to apply in their work place however the decision
promotions and new drinks are not decided by the performers (staff members).

1. THEORY OF THE LEADERSHIP

Theories of leaderships explains the character ships and actions on the leadership skills and
qualities this enables specifically becomes as leaders. What are the qualities of leadership? The
qualities of Leadership can be the strong moral and ethics, excellent organisational abilities,
competent, encourages the employee developments and encourages affiliations and
connections (ability to make Networking).
The follows theories talk about from different perceptions and angles have put different
categories
Theory of great man: this theory is believing the Leadership inherent. They said leaders are born
not made in this theory the quality put as leaders is having great man reptation from previous
experience for them they are heroic, magic and they can emerge in critical time or needed time.
Basic assumption for this theory is Leadership is Genetic.
TRAITS THEORY: This theory focuses on two things physical traits and personal characteristics
which differentiate/ distinguished them from non-leaders. According to this theory there is two
emergent traits and effectiveness traits. Emergency traits heavily depend on physical
appearances such as his height, attractiveness, and self-confidence (comes from heredity).
Effectiveness traits heavily depends on his/her experience the main arguments from this theory
leaders can be learned and gained
TRANSACTIONAL THEORY: leaders who leverage the awareness to the high level not only in
their value, but it is also value in the organisation value or even national values. The
transactional leader has the moral and ethical standards and have charisma by everyone loves
and have skills on raising of motivation among the staffs make believes them to pay sacrifice and
down their self-interests for their common interests.

2. LEADRS VS MANAGERS
Leaders
Leaders are visionaries they set pathway to
organisational growth always
examine where they are where they want to
go what they want to achieve
managers
Goals achievements oriented towards the
company by categorizing such as the
budgeting, organisational structure and
assign and motivate staffs

leaders are more concerned with how to
align and influence people than how to assign
work to them. They achieve this by assisting
individuals in envisioning their function in a
wider context and the possibility for future
growth that their efforts may give
Leaders have different method of quires than
managers and ask why how when that
questions may lead the reverse of the
decision
Leaders doing inspire their followers and the
followers does follow based on their beliefs
and character and perceptions
Position more important to influence the
people
Managers always organisers they achieving
their goals by coordinated activities and
tactics
Managers does not require to analyse and
assess the failure those questions their task
how to complete their job specifications and
responsibilities
Managers has responsible four function of
the firm that is management, controlling,
organising, and leading
Quality more important in order to finish the
organisational tasks and responsibilities.
8. EFFICENT LEADERSHIP CHANGES EFFCTS IN THE GROWTH OF THE
ORGANSATION
Using of key performance indicator according to the last 2021 review based on finance review here
is the table were provided
INDICATOR SATSISFY NOT SATSIFY
FINACIAL There is 1.7% financial
PERFORMANCE INDEX growth compare with
the 2019 and 2020
financial growth 2.2%
and 3.4%
consecutively
INTERNAL PROCESS Doesn’t have follow
QUALITY the internal policies
and procedures to
complete the internal
assessment
EMPLOYEE Considerably satisfy
SATISFACTION with consider of the
covid crisis those who
works were
recognised and
reward with
appreciation still on
the issue rewards
have quiers.
CUSTOMER Customer were not
SATISFACTION happy the providing
services and complain
have wait such long
time to get their
drinks
Some of them are
when they asking to
assist on what
ingredients want to
order and some of the
staffs does not about
the menu
Some of them even
complain doesn’t get
their right orders mess
up with other orders

So what is the roles of the leaders in this situations this is my recommendations also to costa styles
of leaderships and structures and handling performance review.
 Needs with come up with new goals, vison and objectives and strategies
 Comes up with new reward system enable to motivate the staffs
  Training and learning development with current face problem solvent approach needs to
be launch
 Needs to trans formal styles of the leadership instead of enforced some guidance need
the employee space to experiment their innovative ideas and hearing voice more
important.
 Leaders needs to lead by example and inclusive approaches in this situation as the same
time there is some sorting of mechanisms of avoiding the causes to law performances.
10.REFERNCE

 costa mission statements 2022 available on www.costa.org/missionstatements

{accessed on the 01/12/2022}
 costa mission statements 2020 available on www.costa.org/missionstatmets2020
 theories of theories and styles of leadership teaching slides week2 {accessed on
06/10/2022
 costa modern slavery statement 2021-2022 available on
www.costa.org/modernslvaerystatmet2021-22