Reference no: EM133093534

Faria Café has had a long history of great service and exceptional specialty coffee. Established in 1998 by a Vancouver entrepreneur, Carlo Bellino, the retail coffee house quickly grew and expanded from one small café on Commercial Drive to 475 across Canada and 723 in the United States by 2015. Bellino took the company public in 2005, and stock prices rose steadily over the years as the company grew. All the locations across Canada and the United States are owned by the company (not franchises). Bellino's parents owned a neighbourhood restaurant while he was growing up and he was always wanted to ensure his coffee shops, regardless of how large Faria Café grew, would keep that neighbourhood feel . He wanted all his customers to feel welcomed, comfortable, and relaxed as they enjoyed the premium coffee products. A company-wide training program was implemented right from the start to ensure training was consistent and employees were aware of the atmosphere that Faria Café customers expected Bellino stepped away from the company in 2015 to pursue other interests . Fastforward to 2019 and stock prices have just tumbled to a new 52-week low and the market outlook is weak as consumers look to stretch their paycheques by passing up on $6 specialty coffees . Competitors , both large multinational chains and small local coffee shops , are rapidly gaining market share in this industry . Costs for coffee and dairy products have risen sharply and these price increases have been passed on to customers . Performance of the most recently opened stores is not nearly as good as the locations that have been open longer . Faria Café executives have been reshuffled and promises have been made to introduce new beverages to the menu, but development has been slow. To cut costs , stores are being closed and employees are being laid off . In the wake of all of this, long-term customers are complaining about their in- store experiences . Recent reviews on social media have included complaints about long line-ups, long wait times, and inexperienced baristas . Many customers have stated that they miss the relaxing , coffee-house ambience that Faria Café used to have and complain it^ prime s no longer a relaxing , welcoming place to enjoy their favourite coffee drinks . Employee morale is also at an all-time low . Fear of being laid off, not confident with their ability to make coffee , feeling attacked by social media reviews , and sometimes being verbally attacked by unhappy customers . Carlo Bellino has just returned as CEO in order to lead a turnaround for his troubled organization .

It is evident that Carlo Bellino needs to facilitate organizational change.

Answer the questions below . Be sure to fully develop each question . Each answer (for each question below ) should be at least 200 words (total for case study 600 words ).

1. What do you think the most important target of this change should be? Why?

2. What, specifically, should he do first? Why?

3. What specifically, can he do to minimize resistance to change? Why?