HOLY ANGEL UNIVERSITY

Graduate School of Hospitality and Tourism Management

Sto. Rosario Street, Angeles City, Pampanga 2013

Final Requirement in
DBAORDEVHOS (Organizational Development
in Hospitality and Tourism Industry)

FIELD RESEARCH PROJECT

CAFÉ+ COFFEE.BRUCH.DESSERT

Presentation Date: February 8, 2020

Presented by:
MARY PAULINE M. ALINCASTRE

Presented to:
DR. ANTONINO F. ALEJANDRO

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 EXECUTIVE SUMMARY

The world is changing everyday: the population is changing, customer

trends are changing, technology is changing and the economy is changing. Change is
important for any organization because, without change, businesses would lose their
competitive edge and fail to meet the ever-changing needs of customers (Richards
2019). In the Philippines, Micro-, small- and medium-sized enterprises (MSMEs) are
defined as any enterprise with 10 to 199 employees and/or assets valued from P3
million to P100 million. (Natividad, 2017) MSMEs may appear to have small operations
and little organizational issues, but applying organizational development theories can
help strengthen, sustain and improve further in the competition especially that there is a
struggle in MSMEs life cycle.

This field research focused on studying a coffee shop – Café+

Coffee.Brunch.Dessert which is strategically located at Plaridel, Bulacan. During the
investigation, the researcher found out some problems and areas in the organization
coming from its main issue: absence of a clear organizational structure and its non-
implementation. Thus, resulting to problem with the operation, problem with employees
and other considered problems with the service product and service delivery system.

As a proposed solution to the existing problem, the researcher suggested

the use of John P. Kotter’s eight-step change model as its base for organizational
change. There are four stages of the proposed implementation process that starts with
the initiative within the manager, re-organization and implementation of the
organizational structure and following Kotter’s model of change.

The researcher strongly suggests the implementation process for the coffee
shop to retain its market share and survive in the competition. Related studies shows
the importance of adapting to change and the importance of the manager’s initiative.

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 TABLE OF CONTENTS

Executive Summary…………………………………………………………………………….2

Table of Contents……………………………………………………………………………….3

Introduction…………………………………………………………………………………...….4

Organizational Background…………………………………………………………………….6

Literature Review………………………………………………………………………………..8

Application of Methods…………………………………………………………………….….14

Problem Definition……………………………………………………………………………..16

Organization and Description of Issues…………………………………………………......17

Prioritization…………………………………………………………………………………….18

Conclusion……………………………………………………………………………………...19

Recommendation………………………………………………………………………………19

References ……………………………………………………………………………………..20

Appendices……………………………………………………………………………………..22

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 INTRODUCTION

Every organization, whether big or small needs to assess their internal and
external performance in order to sustain and improve their business status. As defined
by Beckhard (1969) “Organization Development is an effort planned, organization-wide,
and managed from the top, to increase organization effectiveness and health through
planned interventions in the organization's 'processes,' using behavioral-science
knowledge.” Planning is a must and an organizational team effort is required to
effectively implement the needed changes. An effective organization can also boost
employee morale because workers can feel more empowered and valued when your
company is well structured.

According to the Asian Development Bank, Micro-, small- and medium-sized

enterprises (MSMEs) are the backbone of Asian economies, making up 98% of all
enterprises and 66% of the national labor force from 2007-2012. In the Philippines,
Micro-, small- and medium-sized enterprises (MSMEs) are defined as any enterprise
with 10 to 199 employees and/or assets valued from P3 million to P100 million. SMEs
and micro enterprises combined make up 99.6% of establishments in the country.
(Natividad, 2017) This industry continues to grow as years go by, giving our
entrepreneurs areas to develop thus, creating more employment opportunities.
However, the growth of this MSMEs creates challenges in general in the aspect of
organizational development as these businesses are in the stage of exploring the
management and operation of their respective business.

Sampson Quain (2018) mentioned some importance of organizational

development: identifies areas that needs change, promotes and manages growth, helps
product innovation, and analyzing work processes. Implementing organizational
development introduces investment on time and money but the effect of it will surpass
the investment if given focus on planning and implementing. MSMEs may appear to
have small operations and little organizational issues, but applying organizational

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development theories can help strengthen, sustain and improve further in the
competition especially that there is a struggle in MSMEs life cycle.
In the words of John P. Kotter: “The rate of change is not going to slow down
anytime soon. If anything, competition in most industries will probably speed up even
more in the next few decades.” Businesses should conduct preventive measures rather
than coping up to the damages brought about by changes in the competition. If there
are arising problems in the organization, changes should be treated as anticipatory
measures in preparation for bigger leap of development and improvement.

Change is considered as law of nature. It is necessary in most organizations for

survival and growth. A coffee shop under study should consider the conduct of change
management in order to fully develop and reach its full potential in the competition and
in the industry. The German-American psychologist – Kurt Lewin started the initiative in
coping up with change by introducing the Three-Step Change Model theory in the year
1947. The three-step change model theory involves: unfreezing, changing and
refreezing. This initiative of Lewin boosted other experts in creating other models using
the Lewin’s model as its basis.

From Lewin’s model, John P. Kotter drafted his Eight Steps to Successful
Change. He is a professor in Harvard Business School concentrating on leadership and
change management. In 1995, he conceptualized the suggested change model
published in his book “Leading Change”. The Eight Steps are as follows: (1) create a
sense of urgency, (2) forming powerful guiding coalition, (3) developing a vision and a
strategy, (4) communicating the vision, (5) removing obstacles, (6) creating short-term
wins, (7) consolidating gains and (7) anchoring change in the corporate culture.

This field research will focus on the application of Kotter’s Eight Step Model of
Change applied in the chosen establishment under study – Café+
Coffee.Brunch.Dessert. The detailed discussion of the organization and the
organizational development model that will be applied will be further discussed in the
succeeding parts of the study.

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 ORGANIZATIONAL BACKGROUND

Café+ Coffee.Brunch.Dessert is a family-owned restaurant strategically located in

Cagayan Valley Road, Tabang, Plaridel, Bulacan offering choices of coffee, non-
caffeinated drinks, brunch, dessert and other food options (see Apendix B – Café+
Menu). It is strategically located in the highway paving the way for good location and
accessibility to all its target customers. The coffee shop celebrated their 6 th year
anniversary last September 8, 2019. The store was managed and owned by the siblings
of the Vistan family. One of the members of the family took short-courses in Pastry in
the United States and other one, which is the hands-on, worked before as a barista
where she learned the basics of the coffee shop business. They started 6 years ago
with few chairs and tables and expanded as the years go by because they already
established regular customers who keeps on coming back to the coffee shop.

The coffee shop, in its first years have gained positive feedbacks from its
customers. Through social media comments and first hand customer experiences,
guests of the shop commends good drinks, food and ambiance and mentioned that they
frequently comes back to the store. The regular customers of Café+ is the main strength
of the operation. As John Rampton said: “Customers are the lifeblood of your business”,
the management has established its customer loyalty by providing quality products and
a good place to stay, relax and establish connections. This could also be the reason
why the company stayed through the years and survived the tight competition with other
rising coffee shops in the previous years. The company also takes pride in its
employees in delivering good customer service and in being all-around and multi-tasker
employees.

In the quest of competing with other MSMEs in the area, Café+, however, lacks
in its marketing strategies. There were only few marketing ads and paraphernalia to

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boost its market share. In an interview conducted with two of its long-time employees,
they noticed a problem in the implementation of job positions in the organizational
structure. The organizational structure of Café+ (see Appendix A) is very simple but
according to its staff, is not properly implemented and the tasks assigned to them were
not clearly stated. There were times when they are asked to do tasks that are not part of
their work (e.g. working as barista then suddenly be asked to help in the kitchen). In the
organizational structure, the owner is also the manager who solely overlooks in the
operation. In some instances that the owner needs to attend other activities and errands
outside the store, the senior employees usually takes over without proper hand over of
tasks and responsibilities. These employees also handles customer complaints in times
like this.

In August 2018, Café+ opens its doors to Central Luzon State University (CLSU)
in Nueva Ecija but unfortunately closed also after a year. According to the staff assigned
to open the store in the area, there is a good customer turnover in the daytime –
because it is a university, but after 6:00pm and during weekends it is like an isolated
one. Since there is a good acceptance in the products of the store, there is an
opportunity outside its main branch if given the proper planning and strategies before
opening. The company needs also to prepare in the changing demographics and
changing trends as it might affect the preferences of their customers. The product line of
Café+ is very stationary and they only stick to their classic menus.

Every MSME needs to prepare for anything that could disturb the harmony of its
operations – threats. Any company is afraid of this, thus preparation makes it easier to
cope up in these unplanned external changes. The booming industry of milk tea shops
is one of those that could harm the sales of Café+, giving an option to other customers.
It was year 2018 when Starbucks Pulilan opened its doors to the people in the area,
which makes it a competitor in the nearby place. The stated challenges and threats to
the operation of Café+ should be an eye opener to the owners in being very complacent
in the competition.

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 Café+ is commendable in its regular customers, but preparation for the
opportunities and threats should also be a consideration in their organizational
development. Highlighting the problem in its organizational structure and
implementation is a considered area for attention. (see Appendix C for the Summary of
SWOT Analysis)

LITERATURE REVIEW

Inspired by Kurt Lewin’s Three-Step Change Model, John P. Kotter enhanced it

and suggested his Eight-Model of Change. The eight step change model was
developed on a basis of research of 100 organizations which were going through a
process of change (Juneja, 2000). An article written by Mulder in 2012, through the
website of Tools Hero, further explained the Change Model of John Kotter. According to
the article: Research carried out by the American change and leadership guru John
Kotter has proved that major change efforts unfortunately do not always have the
desired outcome. He found out that there is only a 30% chance of organizational
change success. This is why organizations implement changes unsuccessfully and fail
to achieve the intended result.

Employees do not always experience change as something positive. However,

they are important when it comes to the implementation of change. Following the
Kotter’s eight stage model plan (see Appendix D) will help organizations to succeed at
implementing change. The first three steps of Kotter’s 8 Step Change Model are about
creating the right climate for change, steps 4 up to 6 and link the change to the
organization. Steps 7 and 8 are aimed at the implementation and consolidation of the
change. The detailed description of the eight-step change model were as follows:

1. CREATE A SENSE OF URGENCY

(Inspire people to move, make objectives real and relevant)
This first step of Kotter’s 8 Step Change Model is the most important step
according to John Kotter. By making employees aware of the need and urgency

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 for change, support will be created. This requires and open, honest and
convincing dialogue. This convinces employees of the importance of taking
action. This could be accomplished by talking with them about potential threats or
by discussing possible solutions.

2. CREATE A GUIDING COALITION

(Get the right people in place with the right emotional commitment, and the right
mix of skills and levels)
It is a good idea to establish a project team that can occupy itself with the
changes the organization wants to implement. This group manages all efforts
and encourages the employees to cooperate and take a constructive approach.
Preferably, this coalition is made up from employees working in different jobs and
positions so that all employees can rely on the group and identify themselves
with the team members. Because of the open character, the groups can also
function as a sounding board, which enables an open communication.

3. CREATE A VISION FOR CHANGE

(Get the team to establish a simple vision and strategy, focus on emotional and
creative aspects necessary to drive service and efficiency)
Formulating a clear vision can help everyone understand what the
organization is trying to achieve within the agreed time frame. It makes changes
more concrete and creates support to implement them. The ideas of employees
can be incorporated in the vision, so that they will accept the vision faster.
Linking the adopted vision to strategies will help employees to achieve their
goals.

4. COMMUNICATE THE VISION

(Involve as many people as possible, communicate the essentials, simply and to
appeal and respond to people’s needs. De-clutter communications – make
technology work for you rather than against.)

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 The most important objective of step 4 of Kotter’s 8 Step Change Model is
to create support and acceptance among the employees. This can only be
achieved by talking about the new vision with the employees at every chance you
get and by taking their opinions, concerns and anxieties seriously. The new
vision must be fully adopted across the entire organization.

5. REMOVE OBSTACLES
(Remove obstacles, enable constructive feedback and lots of support from
leaders – reward and recognize progress and achievements.)
Before change is accepted at all levels, it is crucial to change or, if
necessary, remove obstacles that could undermine the vision. By entering into
dialogue with all employees, it will become clear who are resisting the change.
To encourage acceptance of the vision by the employees, it helps when their
ideas are incorporated and implemented in the change process.

6. CREATE SHORT-TERM WINS

(Set aims that are easy to achieve - in bite size chunks. Manageable number of
initiatives. Finish current stages before starting new ones.)
Nothing motivates more than success. Create short-term goals so that the
employees have a clear idea of what is going on. When the goals have been
met, the employees will be motivated to fine tune and expand the change. By
acknowledging and rewarding employees who are closely involved in the change
process, it will be clear across the board that the company is changing course.

7. CONSOLIDATE IMPROVEMENTS
(Foster and encourage determination and persistence - ongoing change –
encourage ongoing progress reporting highlight achieved and future milestones)
According to John Kotter many change trajectories fail because victory is
declared too early. However, change is a slow-going process and it must be
driven into the overall corporate culture. Quick wins are only the beginning of

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 long-term change. An organization therefore needs to keep looking for
improvements. Only after multiple successes have been achieved, it can be
established that the change is paying off.

8. ANCHOR THE CHANGES

(Reinforce the value of successful change via recruitment, promotion, new
change leaders. Weave change into culture.)
The last step of Kotter’s 8 Step Change Model. A change will only become
part of the corporate culture when it has become a part of the core of the
organization. Change does not come about by itself. Values and standards must
agree with the new vision and the employees’ behaviour must provide a
seamless match. Employees must continue to support the change. Regular
evaluation and discussions about progress help consolidate the change.

When all steps of Kotter’s 8 Step Change Model have been followed, John Kotter
recommends taking the new vision as a starting point when recruiting and hiring new
staff. This also applies to the training of (current) staff. The new vision and the changes
must be given a solid place in the organization. Employees who have actively
contributed to the change must receive public recognition. Their support is enormous
and therefore they will be asked again for their support and help when another change
needs to be brought about.
Below is a list of advantages and disadvantages of the model from an article
written by Prachi Juneja (2000).

Advantages of Kotter’s Model

 It is an easy step by step model which provides a clear description and guidance
on the entire process of change and is relatively easy for being implemented.
 Emphasis is on the involvement and acceptability of the employees for the
success in the overall process.
 Major emphasis is on preparing and building acceptability for change instead of
the actual change process.

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Disadvantages of Kotter’s Model
 Since it is a step by step model, skipping even a single step might result in
serious problems.
 The process is quite time consuming (Rose 2002).
 The model is essentially top-down and discourages any scope for participation or
co-creation.
 Can build frustration and dissatisfaction among the employees if the individual
requirements are given due attention.

Coffee plays a vital role in one’s life. It is more than a drink. According to a study
conducted by Kantar Worldpanel Philippines, Filipinos shifted from being moderate to
heavy coffee drinkers. Heavy drinkers are those who purchase and consume coffee
products thrice a week or 126 times a year. For the past years, this growth has been
consistent. Another study conducted by Barlan in 2013, stated that as for the managers
and employees assessment on their business for the future, they see the coffee shop
business in the next five years positively. They are expecting a reasonable growth in
their business because of the innovation that they will continue to offer to their
customers, and with the positive feedbacks and overwhelming response they are
gaining from them there will be expanding greatly in the market. Thus, leading to the
importance of change and innovation in sustaining your share in the competition.

Another related study addresses the determinants of survival that exist in the
family-run local coffee shop business in Malaysia which are not readily apparent in the
study of larger food service players or in manufacturing firms and other family
businesses. These determinants are ownership transition to next generation,
competitive advantage, location and branding. With regards to branding strategy -
marketing skills is the one of the requirements for local food operators to compete with
modern food chains. Most of the SME have less well-recognized brands because of
less marketing strategies. (Foo, et.al. 2013)

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 Café+ is also considered as an independent coffee shop. To survive beyond five
years, a study with the following conclusion can be considered to remain strong in the
competition giving emphasis to being adaptive to market changes and sustainability and
the importance of proper planning. Independent coffee shops are vulnerable to market
changes and sustainability. Independent coffee shop owners may be unsure as to what
strategies survived through community involvement. Community involvement was
critical to business sustainability for independent coffee shops. Capturing customer
loyalty to generate enough profits to sustain the business was a challenge facing
independent coffee shops. The business owner must develop a plan and communicate
its purpose to the community to benefit economically. (Higdon, 2016)

Running a café / coffee shop is a high risk business, giving importance to the role
of the owners/managers as catalyst in the success of the organization. It was
highlighted in a study conducted by Douglas, et.al. (2018) that in order to succeed,
coffee shop owners need good coffee and good food delivered by customer-friendly
staff in a clean environment. To make a success of their business, owners need a range
of business skills covering such areas as operations management, marketing, human
resources management and financial management. They also need good interpersonal
skills and good leadership skills.

The importance of SME managers in organizational change is highlighted and

proven in a study conducted in Australia by Wiesner, et.al. in 2004. Based from the
conducted study the following conclusions were drawn: Australian SME leaders pursued
organizational change not only to strengthen services to customers/clients, but to
improve competitiveness, labour productivity, internal communication, decision making,
employee commitment, and employee consultation and labour flexibility, and also to
reduce labour costs and absenteeism rates. In order to overcome resistance to change
the SME manager must create the proper attitude and flood the organization with
communications about the change. SME managers need to move beyond the search for
simple, generalizable solutions or recipes for success, accepting that change is a

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complex dynamic within which employee attitudes and future expectations will be
shaped.

The aforementioned related studies emphasized the importance of organizational

change in MSMEs with the help and initiative of the organization’s leaders and
managers. This field research on the other hand tackles the problems and obstacles of
an organization under investigation in achieving organizational development.

APPLICATION OF METHODS

John Kotter’s Eight-Step change model is very much appropriate in the

needed organizational change of the chosen establishment: Café+ Coffee.
Brunch.Dessert. Since the organization’s top management is stationary and is not
worried about the external challenges, the researcher has suggested instead, on the
application of the recommended model.

1. Create a Sense of Urgency

The employees of the organization under investigation are very much
concerned about the needed changes in the organization. During the interview
conducted, problems noticed by employees arise in the areas of management,
operation, and service product and delivery system. In the given organization, the
employees are inspired to move, having the urgency but it seems that the
management is the one who lacks the initiative to do so.

2. Create a Guiding Coalition

The company is very fortunate to have loyal and hardworking employees
which are also committed in delivering quality service. Although some are not
trained well and proper, the starting point and initiative within employees in
creating coalition is there. To enhance the employees’ skills, a proper training
must also be taken into topmost consideration.

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 The organizational structure should also be revised to meet the needs of the
operation. During the interview, it was mentioned that employees doesn’t have a
clear understanding of the structure since the manager/owner doesn’t use it and
almost everyone has the same level of responsibility. Thus, resulting to some
problems in those times when the manager is not around.

3. Create a Vision for Change

The management, with the help of the employees should craft a relatable
vision for the organization. According to the employees, they weren’t informed
about the vision, mission and goals of the organization. With the employees
facing the operations every day, they might contribute to visualizing possible
changes and development in the future.

4. Communicate the Vision

After defining the vision for organizational change, the team headed by the
manager or team leader should always use it as their guiding principle in
everything that they do and perform in the operation. The vision, as foresight to
the future, should be the primary regulatory standard of everyone involved in the
operation.

5. Remove Obstacles
The manager’s attitude towards change should be the first obstacle to be
removed. Based from the observations of the interviewee, the manager is the
one who resists change. She is afraid of trying and innovating. With this, she
must realize the possible advantages of organizational development and the
preparation for the future competition. After which, the implementation will
successfully follow.
Other employees are also afraid of changes and innovation. Given the
proper training and operation mindset, the other employees may divert this
attitude into positive initiatives in the planned change.

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 6. Create Short-Term Wins
In an organization that is very complacent, celebration of short-term
achievements are considered accomplishments already. Step-by-step, little-by-
little, the changes achieved and accomplished must be accompanied by rewards
to motivate more the employees.

7. Consolidate Improvements
The organization should conduct a regular check on the progress of the
targets. This will further help the organization in monitoring the effectiveness of
the plans.
8. Anchor The Changes
Change should be incorporated in the organizational culture of the
organization. Organizational culture is based on shared attitudes, beliefs,
customs, and written and unwritten rules that have been developed over time
and are considered valid (The Business Dictionary).
Employees should get used to be part of the change in the organization.
They should not be afraid of being innovative and active part of the development.
With this, the organization as a whole will benefit and will rapidly adapt to
external challenges and opportunities.

PROBLEM DEFINITION

The researcher interviewed two (2) senior employees in the organization and
from the conducted interview, the following problems were identified and clustered
depending on its areas of concern:

Issues or problems concerning the management and organizational structure:

 The owners is also the sole manager of the operation causing some conflict in
her absence;

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  There is no clear organizational structure defining the division of tasks and
scope or assignment between employees;
 Employees are unintentionally tasked to take over on areas needing attention
even if they are not the focal person assigned;
 Inconsistencies with employee salary and benefits compared in different
years and instances (e.g. holiday pay);
 Not all employees are delivering the same customer service;
o There are noticed inconsistencies in the manner of customer service
delivery amongst employees.

Issues or problems concerning the service product and delivery system:

 Some products (pastry and cake products in common) are inconsistent with
the size and serving;
 Coffee bean supply varies as the owner explores different bean sources;
 Under updated tools and equipment used in the production area (kitchen tools
and equipment)
 Problems with stock replenishment causing unavailability of products;
 Owner’s hesitation in being innovative in terms of product development;
o There are times when employees suggests new products and
customers feedback additional items of products, but the owner is
close minded and hesitant to try and explore.

Based on the gathered data regarding the concerns of the organization, the
researcher has concluded that the main problem is the absence of a clear
organizational structure and non-implementation and the problem wih the
manager’s initiative to development. The researcher believes that the main problem
has resulted to different concerns and conflicts in the organization (as detailed above).

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 ORGANIZATION AND DESCRIPTION OF ISSUES

In the past years of operation, the business has shown success in

maintaining its status in the marketplace. However, this complacency has risks and
threats. The owner/manager of the store should also consider the implementation of
organizational development to further convey the company into greater heights. In the
analysis of the problems defined, the researcher has concluded that contributing to the
problems drawn is the absence of a clear organizational structure and non-
implementation of it. Organizational structure acts as the backbone of the operation
and even how small the organization is, it should be considered as a primary guiding
principle to organizational harmony.

PRIORITIZATION

Based from the conducted field research, the researcher has crafted an
implementation process to help the organization move forward and improve through
organizational development.

 Step 1: Through an OD practitioner, the owner/manager should open her minds in

the current assessment of the performance of the organization. With this initial
step the succeeding phases of change can be implemented effectively. Without
the involvement of the manager, the successive stages would not succeed.
 Step 2: The next suggested step is the implementation of John Kotter’s Eight-
Step Change model, starting with the first phase – Creating the right climate for
change to the organization. (Step 1, 2 and 3). Step 2 also includes solving the
defined problem in the earlier part of the paper which is the planning for the re-
organization of the organizational structure of the coffee shop.
 Step 3: After successfully creating the right climate within the organization, the
next phase is to link the change to the organization (Step 4, 5 and 6) which
includes: communicating the vision, removing obstacles, and creating short term

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 wins. This phase will also help increase the proactivity rate of employees in the
process.
 Step 4: The last phase of Kotter’s change model includes the two steps:
consolidating improvements and anchoring of changes. The last phase is a signal
that the organization has adapted to change and that the members of the
organization has contributed already to the development and improvement.
 Step 5: After having completed the eight-step change model, proper check and
monitoring should be thoroughly conducted to fully implement the changes.

The suggested process prioritizes the need for the owner/manager to be open to
changes giving emphasis on the way she is managing the organization. Without the
success of the first stage, other suggested stages cannot be executed and taken into
action.

CONCLUSION

MSMEs like Café+ should take into consideration the positive effects of adapting
into organizational change and development. It is evident in the conducted field
research that the management of the store under investigation is very relaxed and
complacent in terms of managing and operating her business, thus, resulting to
problems noticed by its employees. Organizational development suggests that every
company should prepare for the challenges of trends and emerging innovation.

Concluded from the conducted investigation were the problems that contributed
to the definition of the main need for concern which is the manager’s willingness to
adapt to change. There is also an evident need for re-organizing the organizational
structure of the coffee shop to create a clear understanding of the job tasks and division
amongst employees. It is also determined by the researcher that the John P. Kotter’s
eight-step change model could be of great help in the change process recommended
for the organization to survive in the business world.

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 RECOMMENDATION

This field research urges the coffee shop under investigation to consider the
suggested implementation process anchored by John P. Kotter’s eight-step change
model for re-organizing and further develop their current business status. There are four
suggested steps for the implementation giving priority to the individual change initiative
on that of the owner/manager of the organization. A re-organization of the structure in
the organization is strongly suggested also likewise with the monitored implementation.
After successfully dwelling in the changes is the application of Kotter’s eight-step
change model with three stages: (1) creating the right climate for change to the
organization, (2) link the change to the organization and (3) consolidating improvements
and anchoring of changes.

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Natividad, Nikki (2016) Infographic: Filipino SMEs at a Glance. Rappler Website,
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filipino-sme
Quain, Sampson (2013) “The Importance of Organizational Development.” Small
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Café+ Coffee.Brunch.Dessert Facebook Page,https://www.facebook.com/CAFEplusCBD/
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 APPENDICES

APPENDIX A
Organizational Structure of Café+

OWNER/MANAGER

Pastry Chef (1) Head Barista (1) Head Kitchen/Cook (1)

Asst. Pastry Chef (1) Barista/Cashier (6) Asst. Cook (1)

Steward (2)

APPENDIX B

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 Menu Offerings of Café+

APPENDIX C
JOHN P. KOTTER’S EIGHT-STEP CHANGE MODEL

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 APPENDIX D
SWOT ANALYSIS SUMMARY

STRENGTHS WEAKNESSES
• Strategically located in Plaridel Highway (near • Poor marketing strategies to gain more
establishments and NLEX) customers
• Good customer loyalty • Job positions of employees is not implemented
• Good customer feedback on tastes of product properly
offerings • Load of works of employees is not monitored
• Strong employee attitude (loyal, hardworking properly
and good at multi-tasking) • The owner is the manager and when she is not
around employees are tasked to take over
OPPORTUNITIES THREATS
• Trends in changing taste that can make the • Becoming very complacent with the current
service product more desirable status of the shop
• New geographic shift in the target market, • Arrival of a branded coffee shop in Pulilan area
creating new prospects • Arising of Milk Tea shops near the area,
• New product and services that can be offered offering another option for customers
• Option of expanding the business

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