(Tiểu luận) 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 name:
Võ Chí Quyền – 18DH490835
Nguyễn Thanh Thảo – 19DH120721
Nguyễn Tường Vy – 19DH120092
Class: Date Friday Shift 11 - 12
Instructor: Dr. Doan Gia Au Du

HCMC, June/2022

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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

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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.

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 longstanding coffee legacy and spreading the spirit of pride and harmony between tradition and the
most recent. The name "Highlands Coffee" comes from a 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 1: Introduction
Chapter 2: Discussion and Analysis
Chapter 3: Conclusion and Recommendations
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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:


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



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

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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.

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

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.



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.
2.3 Environmental audit
2.3.1 Macro environment


Political

Political factors have a huge impact on the coffee industry in Vietnam, both in terms of the
opportunity and the risk that they present. A coffee organization has been established by the
state to manage and develop coffee to safeguard each other's monopolistic behavior to maintain
production costs and make exports easier. Disputes in the market have an impact not only on
the interests of enterprises but also on the protection of the market interests of Vietnamese
coffee. In addition, the complex administrative procedures that currently prevent foreign
investors from entering the coffee business in our country have yet to be improved upon and
need to be addressed.


Economic
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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.


Social

As a result 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 a result, 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.


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.


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.


Legal

Employment, quotas, taxation, commodities, imports, and exports of Highlands Coffee are all
taken into consideration by the legal aspect of the business.

2.3.2 Micro environment


Industry competitors

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


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.


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.
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

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.

Figure 2.2 Threats from substitute products
Source: Geli, 2019
KEY EXTERNAL FACTORS

WEIGHT

RATING

WEIGHTED
SCORE

Opportunities
1. Vietnam is the world's largest coffee-producing

0.12

4

0.22

2. Policies to aid the recovery of the economy

0.06

3

0.36

3. Technology development

0.06

3

0.36

4. Great market potential, more and more people

0.04

2

0.12

country

prefer going to cafes to work and study

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5. Coffee is a popular beverage among

0.04

2

0.16

6. Capture customer tastes

0.03

1

0.03

7. Economic growth

0.09

3

0.27

8. Interaction with the global marketplace

0.06

3

0.18

9. Economic pressure during the pandemic

0.09

3

0.27

10. Consumer tastes are quite diverse

0.04

1

0.04

11. Pressure from competitors

0.12

4

0.48

12. Impact of the Covid-19 epidemic

0.09

3

0.27

13. Customers prefer other brands

0.04

2

0.08

14. Variety of substitute products

0.06

3

0.18

15. People increasingly concerned about health

0.06

3

0.18

Vietnamese people

Threats

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.

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2.4 Organizational audit
KEY INTERNAL FACTORS

WEIGHT

RATING

WEIGHTED
SCORE

Strengths
1. Young and enthusiastic staffs

0.2

3

0.6

2. Customer base in 24 provinces in Vietnam

0.08

4

0.32

3. Variety of products

0.1

3

0.3

4. Appropriate and effective marketing strategy

0.1

3

0.3

5. Clean, stylish, and spacious space

0.08

3

0.24

6. Great location in the centre

0.1

4

0.4

7. Variety of payment methods

0.05

4

0.2

8. Active financial resources in branches

0.08

3

0.24

9. Price is not suitable for all classes of customers

0.06

1

0.06

10. No store in rural

0.05

2

0.01

11. No customers feedback section

0.06

2

0.12

12. Discrepancy in branches

0.04

1

0.04

Weaknesses

Total

1

Table 2.2 Internal factor evaluation matrix for Highlands Coffee (IFE)
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2.92


The team at Highlands Coffee is consistently praised for their friendliness and dedication to
providing excellent service. Besides that, the crew is also carefully chosen and trained.
Customers will constantly feel like they're entering a new store when they shop at Highlands
because the company frequently hires new, vibrant, and passionate staff members. Because
employees, not executives, are the ones who will have direct contact with customers, a
company's ability to attract and retain good employees is critical. Many customer files can be
accessed through a customer base spread throughout 32 regions in Vietnam. Highlands divides
its menu into two parts: drinks and food. Highlands drinks are Café, Tea, and Freeze. Bread
and cakes are common foods. Product diversity is another issue that should not be overlooked
because it enables clients to choose things that are both within their price range and satisfy
their preferences. In Vietnam, Highlands Coffee is among the most well-known brands of
coffee available. The 7P Marketing Mix methods have been successfully used by Highlands
Coffee, which has contributed to their success. Because it will aid in the expansion of brand
recognition, and efficient marketing plan is another factor that makes a significant contribution
to the success of the company. Highlands Coffee has successfully adopted 7P Marketing Mix
techniques. An efficient marketing plan adds to the success of the company by increasing brand

awareness. Highlands exclusively choose to open stores in high-class commercial locations
and central sectors of the city, usually in the suburbs. This makes it possible to reach a wider
range of potential customers. Payment can be made in a variety of ways (including cash, bank
cards, e-wallets, and other digital wallets), and this gives customers more options when it
comes to making purchases.
Highlands Coffee should not only build on its strengths but also fix its weaknesses if it wants
to grow as a business. Even though the prices are about average, they need to go down a little
bit to attract new customers. Highlands Coffee needs to open a few more stores in rural areas
so it can increase its customer base. They also need to pay attention to how they listen to and
respond to customer feedback. Most importantly, they need to make sure that prices and quality
of products and services are the same at each branch. The opening of several systems will make
it difficult to control the quality of the services and goods provided by each system, which will
result in a discrepancy in quality between the various branches. Closer management should be
implemented by senior executives in each department.

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THE INTERNAL – EXTERNAL (IE) MATRIX
The IFE score is 2.92, and the EFE score is 2.98, as shown in Figure 2.3. This indicates that
the existing stance taken by Highland Coffee will not change. They can preserve both their
reputation and their consumer base by adhering to this existing approach. If they alter their
policy, they will be able to compete with other coffee shops for more consumers and retain
existing ones

Figure 2.3 The Internal - External (IE) Matrix
2.5 The trigger events
A trigger event is a change in the environment that brings about the necessity for an
organization to undergo change. The entire organization is impacted when trigger events take
place. After what seems like no time at all, new requirements are brought to light, and it
becomes necessary to reconsider past choices. Quite frequently, management will become
aware of new priorities and decide to alter the path that the firm is going in as a result. The
existence of trigger events is an evident necessity during the formation and development of any
business. This is necessary so that the business can grow more and more in accordance with
the trend of users.
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Obviously, Highlands Coffee has also been affected by three trigger events in recent times.
Firstly, it is abundantly obvious that the COVID-19 epidemic has had a significant impact on
all parts of the economy as well as social life. This pandemic has altered the trends of buying
and selling, as well as reduced consumption, demand, and the purchasing power of
commodities. Due to a large fall in income, consumers are also finding it difficult to purchase
essential products. As a result of the COVID-19 epidemic, the economy has been plunged into
chaos, and it is obvious that this would have a detrimental impact on the business results of the
food and beverage industry. Secondly, as a direct result of the public health emergency, the
local authorities in Ho Chi Minh City have made the decision to shut down some commercial
businesses. These include movie theatres, coffee shops, bars and clubs, internet cafés, and

karaoke bars, amongst others. As a result, Highlands Coffee had to limit and then stop serving
customers in-store. In addition, the restriction has put some enterprises in a precarious position,
particularly those involved in the operation of cinemas, such as CJ CGV, which has ceased its
business in the city for about two weeks. Even more revealing is the fact that the majority of
its cineplexes are situated within shopping malls, which are also home to a large number of
eateries and coffee shops, like Highlands Coffee. Cafes are popular hangouts for young people
after dining out or watching a movie at the theatre. As a result, the collapse of these businesses
has had an indirect influence on Highlands Coffee. Generation Z - the generation born after the
internet became widely available - the number of online customers has increased as a result of
the epidemic. The use of digital technology to make purchases and do shopping is, thus, a
foregone conclusion among today's youth. Because of this, Highlands Coffee is eager to build
a new business model for the company. Finally, Covid-19 alters people's habits, especially
coffee consumption. New habits of buying takeaway coffee are becoming commonplace since
they are easy, safe, and cheaper than sitting down to a cup of coffee. It's possible for customers
to save time and money by using products and services from the comfort of their homes.
Convenience is now a major factor in determining what people buy in the setting of the "new
normal" that we've entered.
2.6. Implications of changes and results
Due to the fact that the food and beverage industry has been affected particularly hard by the
epidemic, Highlands Coffee has stepped up its efforts since Vietnam began reducing social
distance in October 2021 in preparation for life in the new normal. As a result of the COVID15

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19 outbreak in Ho Chi Minh City, Highlands Coffee is shifting its focus on conducting business

through the online and takeaway distribution channels. This strategy is currently being utilized
in a significant way by the retail industry as a whole. Highlands had signed up to work together
in the process of using a third-party delivery service (GrabFood, Baemin, ShopeeFood), and
building their own app (Highlands). It is helpful to use that kind of platform during the
epidemic since it allows everyone to obtain their food without having to go outside. In addition,
the management of the coffee business utilized social media to advertise their wares. It makes
it easier for customers to access information about products and encourages them to make
purchases. During this period of social distance, Highlands Coffee will be able to keep some
of its revenue steady if it continues to operate in this manner. Moreover, to keep up with the
times and remain competitive, each of the major beverage chain companies has undergone
significant development and transformation. As a result of Covid, the F&B industry's main
companies quickly realized that kiosks and coffee trucks provide a number of advantages over
more traditional business models. The competition to duplicate the kiosk model constitutes the
largest push that the giants are making into the market. Since the middle of the year 2020,
Highlands Coffee has been placing its coffee carts in front of its stores or on the pavements of
busy streets. The model of doing business based on takeaway satisfies the majority of the
demand, which is especially important in a market where customer behaviors have shifted as a
result of the COVID-19 epidemic. As a short-term solution for F&B organizations to test new
market segments and boost brand exposure, the mobile kiosk model and coffee trucks are
viable options. Highlands Coffee has been able to reduce costs to attract more customers. The
purpose of these changes is to facilitate the continued growth and maintenance of the Highlands
throughout the pandemic caused by the Covid-19 pandemic, consumer behavior change, and
new model business (vietnamnews, 2021).
In order to boost their revenue, the coffee shops signed up for several online food delivery
services, such as GrabFood, Baemin, and ShopeeFood. It is helpful to use that kind of platform
during the epidemic since it allows everyone to obtain their food without having to go outside.
In addition, the management of the coffee business utilized social media in order to advertise
their wares. It makes it easier for customers to access information about products and
encourages them to make purchases.

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Figure 2.4 Announcement from Highlands Coffee before the anti-COVID-19 regulations
Source: Highlands Coffee, n.d.

Figure 2.5 Highlands Coffee on third-party delivery applications
Source: Highlands Coffee, n.d.
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Figure 2.6 Highlands Coffee’s Application
Source: Highlands Coffee, n.d.
To the Kiosks and coffee trucks, this model diversifies revenue streams. In the context of the
problematic and long-term Covid epidemic, shops have not been opened on-site or reopened
but are not allowed to service maximum capacity. Small take-out stores like kiosks and coffee
trucks will be F&B chains' lifeline. Small kiosks and coffee trucks can suit the needs of clients
who buy takeout or online fast and conveniently. The second benefit of the kiosk model is that

it helps business owners save money and improve their operations. With its small size and
easy-to-use features, a kiosk is a great way for big brands to save money on space, streamline
their operations, and potentially reach everyone in the world. The kiosk is "easy to open, easy
to close, and easy to duplicate," which is perfect for business environments that change quickly.
According to the sales staff at Highlands, the model was released onto the market two months
ago. It operates daily between the hours of 7:00 and 9:00 in the morning, and each trolley sells
a few dozen takeaway cups on a daily basis at a price of VND29,000 each. Convenience and
low prices make it a popular choice for clients every morning. An increase in revenue is a good
indicator for Highlands Coffee in the post-Covid-19 time.

Figure 2.7 Kiosks and Trucks Coffee of Highlands Cofee
Source: vietnamnews, 2021
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2.7 Organizational culture for changing
Changing the culture of an organization is one of the difficulties that organizations face. Both
the company's social culture and its business culture are on exhibit at Highlands Coffee as the
company's corporate culture. Customers in Vietnam are able to feel more at ease when they
shop at the brand since the company upholds a social culture that is reflected in its emblem by
the combination of colors and images that are traditionally associated with the highlands. Along
with Dong Ho's contemporary painting and Blood Donation Day (Highlands Coffee, 2020)
Highlands Coffee's social culture is expressed not only in its tagline, which reads "Journey to
propagate the pride derived from the soil of Vietnam" (Highlands Coffee, n.d.), but also in the

company's other social initiatives. Regarding the business's corporate culture, which can be
seen reflected in its cafe culture, service culture, new product development culture, ethical
standards, and principled practices.
Highlands Coffee must change its culture to adapt to market changes. COVID-19 is difficult.
To build brand-employee cohesion, the company must develop an efficient working
environment, emphasize employee safety, and support salaries. Highlands Coffee should give
staff creative tasks that let them generate superior products and services. Managers will help
employees do their jobs easily and without restriction.
In addition, Highlands Coffee's culture made a transition once the company made the decision
to switch to a new business model that involved coffee kiosks and coffee trucks. This represents
a transition in a culture that has an effect on the mental state of people. As can be seen, the
leaders of Highlands Coffee presented and explained so that everyone understood the benefits
of operating with the two models mentioned above, and they involved people in the process of
implementing the common goal of change in the context of the pandemic. This can be seen as
a positive step toward addressing the pandemic. In addition, for brands to progress, they need
to adopt new technologies. Each leader and manager at Highland Coffee is required to innovate
the management approach used by the brand, and each employee is required to update their
own manner of working in order to accommodate the introduction of new technologies. In
conclusion, the process of cultural integration and the growth of Highland Coffee have both
been significantly influenced by the cultural shifts that have taken place. In addition to the path
toward cultural transformation that was suggested by the group, it will assist brands in
accomplishing their overarching goals.
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2.8 Future changes
When it comes to enterprises, sustainability serves as an incentive for companies to preserve
and improve their existing resources in the future by progressively modifying how they create
and make use of technological advancements. Of course, Highlands Coffee is not an anomaly
in this regard. The company always sets reasonable development goals for itself and innovates
in all aspects, from product design to customer care and customer service, to meet the needs of
the target market. This helps the company make a positive impression on customers and other
parties related to the business.
For Highlands Coffee to be able to contribute to the growth of the brand in the future in a
manner that is more environmentally responsible, in addition to the aims and innovations that
are now in place, additional new adjustments are required. The first adjustment that needs to
be made is for Highlands Coffee to create a system for its employees. After they have been
hired, employees will, as a result of this change, take part in training courses offered by the
company on the relevant skills to ensure the highest possible level of service quality for clients.
Candidates whose applications have been received by the company will begin their jobs with
at least three days of training provided by the company, depending on the position being filled.
The organization continues to offer training lasting between two and seven days for professions
including chain store management, managerial assistant, and marketing. The next adjustment
that Highlands Coffee needed to make was to put an elimination strategy into effect. The
corporation should focus on investing more resources in institutions that have superior
competitive advantages, increasing business efficiency, and attracting new potential clients. It
should also consider selling any businesses that are not profitable.
As a result of the widespread availability of digital technology and portable electronic devices
in today's society, nearly all cafes are developing mobile applications. As a result, Highlands
Coffee ought to consider establishing applications for mobile phones that allow for online
shopping and have built-in support for electronic payment methods. Customers will be able to
order food, reserve a table, and pay for it all using an application that will incorporate
information about Highlands for them, such as the display of the location of the store that is
closest to them, menus, and promotions. This fashionable change not only delivers

advantageous advances to the organization in the form of a faster way to serve consumers,
reduced costs associated with the service employees, and assistance to customers in reducing
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the amount of time they spend ordering and performing bar math. By utilizing the application,
it is possible to avoid congestion and ensure everyone's safety, which is especially important
while the pandemic is still in its somewhat complex early stages.

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CHAPTER 3: CONCLUSION AND RECOMMENDATIONS
Highlands Coffee is a household name among Vietnamese coffee lovers. It's little wonder that
Highlands Coffee has so many locations around the country: it's the country's number one
coffee shop. Highlands Coffee, on the other hand, must perform online sales on its own social
platforms and applications if it hopes to expand. We can see that the only way for a firm to
mature and become more successful is through consistent change, which is why it is an

essential component of every company. The epidemic has fundamentally altered the ways in
which an enterprise formerly operated. Organization change management is the most important
instrument for businesses to use in order to successfully manage this transformation and help
their staff adjust to the new normal. For this reason, Highlands Coffee must continually assess
its strengths and limitations in light of both internal and external factors while formulating a
business development strategy and action plan for the future.
If the company wants to expand in the food and beverage industry in Vietnam, the quality of
the products and services offered at its various branches needs to be improved. It is necessary
for the branches to coordinate their quality and pricing in order to minimize disparities. The
firm really needs to lower its pricing if they want to get more clients. Because workers will be
change agents who interact with customers, the business has a responsibility to instruct them
appropriately. To never fall behind, the corporation must learn new forms, amazing items from
competitors, and client preferences.

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