change management project a case study of highlands coffee

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION CHANGE MANAGEMENT PROJECT A CASE STUDY OF HIGHLANDS COFFEE Student’s nam

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION

CHANGE MANAGEMENT PROJECT

A CASE STUDY OF HIGHLANDS COFFEE

Student’s name:

Võ Chí Quyén — 18DH490835

Nguyen Thanh Thao — 19DH120721 Nguyễn Tường Vy — 19DH120092

Class: Date Friday Shift 11 - 12

Instructor: Dr Doan Gia Au Du

HCMC, June/2022

ABSTRACT

The evaluation of Highlands Coffee’s ability to adapt and manage change from 2019 to 2021

is the focus of this research A technique that directs firms to successfully push and improve their company performance is referred to as change management Based on an examination of the goal system, an evaluation of both external and internal causes, a description of trigger events and organizational culture, and a discussion of future changes, the research makes a recommendation for a change management project that is suitable for the company The study

of corporate change management is being done to assist in the transition from the current state

of the corporation to the new state of the corporation that is desired At the same time, it will

be helpful in maintaining the company’s operations on the course that it has decided to take The research process involves contacting reports, documents, and journals to compile secondary data about companies According to the findings, Highlands Coffee needs to make modifications to its goods, operational procedures, and orientation toward culture change to offer products and services of a higher quality Concurrently, innovate business activities in a manner that is both suitable and creative to develop and effectively conquer the company’s goals

Keywords

Highlands Coffee, change management, specific goals, trigger events, Vietnam market

CHAPTER 1: INTRODUCTION

1.1 Brief information

Young Vietnamese are no longer surprised when they hear the name "Highlands Coffee.” In comparison to other coffee brands, Highlands has done an excellent job of creating its brand identity and can be found in the majority of the business areas and significant buildings in both Hanoi and Saigon

The beginning of an iaea for

a Vietnamese-only coffee — 200O

brand for vietnamese Highlands Coffee orginated

with roasted and packaged

2002 coffee as it's first product

The first Highlands store opened

in Ho Chi Minh city, followed by the second in Ha Noi,

Highlands Coffee has opened

25 new locations

2011) —

Highlands coffee has 50 locations

across the country in your major

cities — 2012

2014 — Supply 3G modern service to

customers

Growing at a radid pace,the

company naw has 75 locations in

seven major cities,spanning the country from north to south, =< 2016

Highlands coffee open rapidly becoming the first coffee company

to achieve 100 locations.It's an horor to be named one of top 100 O1 " most popular emloyers

More than 200 stores have been opened across the country

Winner of the global Maketing

Figure 1.1 Historical Development of Highlands Coffee

Source: Highlands Coffee, n.d

A businessman from the Viet Kieu ethnic group named David Thai established the Viet Thai International Joint Stock Company (VTI) in Hanoi in 1999 David Thai is the owner of the

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Highlands Coffee brand name and trademark The Highlands Coffee brand was established out

of a love for Vietnam and a passion for coffee, with the intention of elevating Vietnam's long- standing coffee legacy and spreading the spirit of pride and harmony between tradition and the most recent The name "Highlands Coffee” comes froma combination of the words "highland" and "coffee” (oriagency, 2022)

In the year 2000, Highlands opened its first location in Hanoi, which sold packaged coffee goods Since then, the company has experienced rapid growth, becoming a well-known brand

of the coffee shop and expanding its operations both locally and abroad As of the year 2006, the corporation had a total of 20 locations across the principal cities and provinces of Vietnam After a quick period of time spent changing hands, Highland Coffee now has a new owner for the project Therefore, Highlands is currently a very successful company after being in business for 23 years and having more than 350 locations across the country Before a wave of coffee shops went out of business at the same time, Highlands was still operating and doing well

(vietnambiz, 2021)

1.2 Aims

Highlands was chosen for this project since it is relatively close to the bulk of Vietnamese people Highlands, on the other hand, is known for producing well-known products at low prices In addition, the menu, as well as the layout of tables and chairs, have changed in recent years in the Highlands Moreover, highlands always provides customers with comfort and a sense of connection to the Vietnamese coffee tradition, which has lasted for years Highlands items are always appropriate for all ages of diners, from young to middle-aged, and the accompanying dishes are authentically Vietnamese Although the Highlands has many changes now, it still retains the original color of the Highlands

1.3 Structure

The project paper is divided into three chapters, including a table of contents, and references:

Chapter I: Introduction

Chapter 2: Discussion and Analysis

Chapter 3: Conclusion and Recommendations

CHAPTER 2: DISCUSSION AND ANALYSIS

2.1 Specific goals

During the peak of the COVID-19 epidemic, the food and beverage business was confronted with a number of challenges, including being forced to shut down and practice social distancing, which resulted in a significant drop in income and caused a significant number of workers to lose their jobs Therefore, the food and beverage industry is currently being led by

intermediaries that facilitate online sales, such as GrabFood, Baemin, and ShopeeFood Super

apps have burned a lot of money on discount and freeship promo codes in order to establish an advantage to draw users and a premise to convince F&B retail partners to agree to participate The goal is to create an advantage to attract customers They instill in F&B partners the fear that, if they do not participate in these platforms, they will be left behind in society and the

market, and may even die as a result (Tat Dat, 2021)

Selling through channels such as GrabFood, Baemin, and ShopeeFood will be a very optimal choice for business investment costs in the short term However, with a development vision of more than ten years, completely depending on food ordering platforms will have many potential risks, in addition to not having loyal customers, businesses also do not know who their customers are, what they want, and what they will be like in approximately five years Since Highlands Coffee is aware that the epidemic is becoming an increasingly challenging situation, they have concluded that the best course of action is to begin making preparations for the development of their application for mobile platforms in the year 2021

More specifics regarding the SMART goal for Highlands Coffee will be evaluated by our team:

- Specific: The objectives of Highlands Coffee are quite detailed and crystal clear This will make it much simpler to identify the issue and will assist the coffee shop in reaching its objectives in the manner that is detailed below:

e The coffee shop wants to reduce its reliance on outside delivery services as much as possible by building its application on any mobile platform

e Additional information, the coffee shop has set a goal of reaching 2,000 users during the first months through the optimization of our app store listings and the creation of

focused social media campaigns for the following social media platforms: Facebook,

Instagram

The members of the management board are the most important people in terms of setting the direction to achieve the goal, and the staff members are responsible for carrying out the

directions that have been established

- Measurable: Although this is a lower number than was anticipated, the fact that the app has already gained 1,000 users in the first month demonstrates that they have succeeded in meeting

50 percent of their goal

- Achievable: It appears to be more than they can’t chew to reach 2,000 users in the first month They came to the conclusion that the most effective strategy would be to limit their outreach

to just 1,000 users

- Realistic: In today's very competitive environment for coffee shops, the goal is not unachievable If the objective is met, it will make Highlands more competitive and give it a more modern appearance when compared to other ones

- Time-based: Within a year (until 2021), the deadline must be met, but there are still few

goals (particularly in 2019) to produce a well-known application to progressively reach the main goal

The successful launch of the Highlands Coffee application will assist the company in providing the highest level of service to its customers as well as improving the speed and efficiency with which it can deliver items Customers have access to a comprehensive menu on the Highlands Coffee application, from which they can select the beverages, pastries, and other items to which they are most drawn In addition, the business often distributes promotional offers exclusively

to clients who have the corresponding mobile application installed on their devices Customers have additional opportunities to do business with the company, including the opportunity to

earn points, receive incentives, write complaints, and so on (zinpro, 2022)

2.2 The systems to achieve goals

These are the long-term aspirations of Highlands Coffee and measures to overcome the dangers

of the COVID-19 pandemic For the first time, Highlands Coffee is developing a brand

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application for any mobile platform in order to lessen its dependence on third-party delivery providers A separate app for customers searching for information and ordering products from

a food or beverage establishment's mobile site is a common practice Reminders from the mobile app appeared to entice new customers back to the company’s product line Businesses that can outperform their rivals in terms of customer service also profit Most food and beverage establishments have their own app for clients to use to search for information and order their items Reminders from the smartphone app appeared to entice returning clients It also helps organizations that can offer better customer service than their rivals, as well

On the basis of this, the group proposes the following timetable for building mobile applications to support Highlands Coffee's sales activities:

A study of the company and the market, detailed financial planning, tasks, a point of contact, and an estimated execution time are all critical components of the company’s foundation This project will be handled by the Planning Department Implementation

is scheduled to take place within a month

Determine the degree of success based on the resources of the company and the thorough deployment plan of the application for the company This will be the responsibility of the Board of Directors The implementation period is one year Creating app interfaces and content for both the iOS and Android platforms For one month, this task will be under the supervision of the Information Technology

Department

Publish the application to the App Store (for iOS) and the CH Play Store (for Android) for testing This project, which will take two weeks to complete, will be handled by the Department of Information Technology (IT)

The Human Resources department is responsible for providing two weeks of basic training for new forms to employees

App marketing landing page, pop-up, and new software marketing banner for the website should be created Material for the app's ad campaign should be created at the same time as the website and landing page content for the app’s advertising campaign For the next two months, the Marketing Department will be in charge of this project

e Promoting the App with Google Ads, running sponsored ads on social networking sites, and creating a coupon for the first time you download it For the following three months, this duty will be handled by the Marketing Department

e Measure, monitor, and collect client data through app downloads The best way to fix bugs in an app is to use customer input This duty will be handled by the departments

of Information Technology, Sales, and Marketing

Among the features of the Highlands Coffee mobile application are a full selection of Highlands products, attractive promotions that are continually updated, and the option to order Highlands drinks It's easy to get a cup of Highlands coffee right in front of your door, and you don't even have to leave your house

The subsequent objective for Highlands Coffee is to acquire 2,000 users on the company’s mobile application during the first month of its release and to initiate a social media campaign

on several platforms, including Facebook, Instagram, and Keeping this in mind, the corporation ought to devise a marketing plan that is both straightforward and kind to the consumers of its goods and services In addition, the business needs to promote the Highlands Coffee application to clients at retail locations so that customers can become more acquainted

with the brand

need to be addressed

e Economic

Vietnam is currently on the road to economic development and technological advancement Since the COVID outbreak, the economy has developed in a manner that is both more swiftly and consistently stable People in general and residents of Ho Chi Minh City, in particular, have been enjoying an elevated standard of living as a result of recent economic growth People start to find themselves in a range of settings and wish to respond to a variety of social requirements, such as the want to host friends and family members, the desire to go to stores

to meet friends after work, or the desire to have an environment conducive to learning At this

time, there is a massive amount of demand for utilizing the aforementioned service, which

results in a significant increase in profits

e Social

As aresult of the improvement in the Vietnamese people's level of living, the intensity of their desires to consume food and drink, acquire clothing, and continue to live their lives is also growing One of the most popular activities that people in Vietnam like doing is getting together with their loved ones and friends to share a cup of coffee Coffee, when drank in moderation, is not only a delicious beverage but is also incredibly beneficial to one’s health Coffee is a beverage that can be enjoyed by a diverse group of customers, including those who are in school, have jobs, or come from other working-class backgrounds It is clear that coffee has a long history of being intertwined with Vietnamese culture and is an integral component

of the majority of people’s day-to-day activities in the country The process of filling a cup with

a dark liquid that contains caffeine is no longer the only meaning attached to "going coffee." Instead, "going coffee” has grown into a verb that represents meeting, interacting, and sharing drinking experiences as well as venues

As aresult, in contrast to a great number of other dining establishments, Highlands Coffee does not solely deal in coffee or beverages that are not coffee-based They achieved the desired results The answer is service During the time of industrialization, people frequently went to cafes to drink coffee They are willing to pay a reasonable amount of money to have a luxurious environment, excellent working seats, and meeting and discussion rooms

e Technological

The advancement of science and technology, in particular biotechnology, is quickening Because of advancements in applied agricultural research, new crop types that have a high quality, uniformity, and steady yield are going to be able to be developed Coffee, tea, and

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possibly even some seasonal fruits will become less reliant on favorable climatic conditions as

a result of advances in production methods and processes for coffee and tea The methods of cultivating plants in a greenhouse are more generally understood and have more suppliers for manufacturing The strain and dependence placed on suppliers are alleviated, and a wider range

of possibilities is made available as a result

e Environmental

Coffee and tea may be grown in Vietnam's tropical monsoon environment successfully in huge quantities, with a wide variety of flavors, and a reliable supply of leaves Coffee trees are planted in the Central Highlands, which are known for their excellent yields, while tea plants are produced in Thai Nguyen and other areas that have optimal soil, water, and climate conditions to create high-quality goods The merchant that has a broad selection of beverages will find this to be an extremely useful feature The rate of the business is consistent, it is not impacted by the changing of the seasons, and it is ideal for growing the size of the store

Figure 2.1 Competitors of Highlands Coffee

Source: Dat Nguyen, 2021

After a period spent developing their products, the surviving coffee chain businesses are now prepared to compete It would appear that Starbucks, Highlands, and Trung Nguyen are

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engaged in fierce competition with one another All of these brands share the following characteristics: premium design; easy retail placement; and they will differentiate themselves from the competition by communicating with customers There are other franchises such as Phuc Long and The Coffee House that are gradually taking up a larger share of the market

e Customers

Highlands Coffee has decided to compete with international heavyweights by mixing flavors and styles from both native and international coffees The majority of clients who frequent Highlands Coffee are young professionals, office employees, and middle-class individuals

Highlands Coffee places a primary emphasis, at all times, on the creation of a welcoming and pleasurable atmosphere in which customers can enjoy their coffee daily During conducting business and negotiating contracts, businessmen may on occasion be required to take partners

or clients out to dine This will be the ideal location for them to do so In addition, clients who

come to the coffee shop do so not only to drink coffee but also to unwind and alleviate tension after enduring trying working hours, particularly for those who are employed in offices In addition, Highlands Coffee is the ideal site for the numerous young people in the area who require a location suitable for dating, getting together in groups, and holding meetings In several locations, there are also rooms available for hosting events such as birthday parties and business gatherings

e Suppliers

Highlands Coffee is dedicated to providing clients with the most upscale and well-rounded coffee experience that is humanly feasible To accomplish this goal, each stage must adhere to the requirements in its entirety The commitment to quality begins with the choice of the bean and extends to every aspect of the coffee-roasting process, from picking the very best beans for roasting to ensuring that customers have a pleasant experience overall The company only partners with reputable suppliers to obtain the highest quality Grade A beans After that, the laboratory will conduct tests on the samples to validate whether or not they are up to the rigorous expectations that have been set After the seeds are brought into the warehouse, the workers may decide to sort through them and remove those that are of lower quality The quality of an entire cargo might be severely compromised by even a single coffee bean of poor grade

e Substitute products

The availability of alternative products is one of the significant elements that have a significant impact on the number of products used by the organization The higher the level of technological advancement, the greater the number of available alternatives When more products can be used as an alternative, there is a larger amount of pressure placed on the sales operations of the organization To alleviate the pressure that is being applied by alternative products, brands need to implement specific solutions such as investing in technological innovation to improve product quality to compete with alternative products, focusing on creating differentiated products, or promoting alternative products promotion

1 Vietnam is the world’s largest coffee-producing 0.12 4 0.22

8 Interaction with the global marketplace 0.06 0.18

9 Economic pressure during the pandemic 0.09 0.27

10 Consumer tastes are quite diverse 0.04 0.04

11 Pressure from competitors 0.12 0.48

12 Impact of the Covid-19 epidemic 0.09 0.27

13 Customers prefer other brands 0.04 0.08

14 Variety of substitute products 0.06 0.18

15 People increasingly concerned about health 0.06 0.18 and food safety

Total 1.00 2.98

Table 2.1 External factor evaluation matrix for Highlands Coffee (EFE) The fact that the total score for Highlands Coffee was 2.98, which was higher than 2.5, demonstrates that the company’s capability and response to external opportunities and threats are quite good This allows the company to react positively to a large number of opportunities that are brought about by the environment The effects of the external environment, as well as the hazards posed by the external environment, are brought down to levels where they can be

controlled