What is the one factor that helped facilitate change in the case above?

In the above case, trust is the main factor which helped to change in organization. As, 70,000 KD
was stolen from organization in one year span. So, from that trust become an issue. Then they
apply changes in the organization to establish trust-based relationship with employees. We added
security system and consult with different management companies.

Who was the change agent?

The two founders of the organization were the change agent. Both were involved and responsible
for every matter of the organization. Both decided whatever change occur in the organization.
Both the owners manage activities inside the organization.

Explain, with illustrative examples, the ‘type of changes’ implemented in the case above?
In the above case, different type of changes occurs in the organization.
 Firstly, they added security system e.g., they put CCTV cameras inside and outside of the
shop.
 They added better software like POS. Point of sale is a software used while purchasing
something. E.g., if you decide to buy two products and bring them to the checkout, the
staff will scan them and create a receipt.
 They also work on to control inventory. By using different approaches like FIFO, they
control inventory.
 After consulting with management company, the two founders create a whole
management team include managing director, operation manager, project manager,
quality control officer and trainer.
 They also creating a culture in organization. E.g., everyone from the CEO to the driver
wear black uniform. That is means everyone in the shop were equal.

How did founders help employees learn culture (which factor did they use)?
Founder’s value and vision for the future of the organization helps employee in learning
culture. In the case, founder ensure that we involve with everyone in the team on a personal
level, communicate well with them. In the organization, there were bi-weekly meeting
include every staff member from delivery driver to the CEO, where we share ideas. All
members of the organization were in black. As black was the uniform it means all the
member in the organization were same. This type of mentality really helps to establish a
strong tie with organization.
Imagine you are the founder and have just found out about the theft. Now apply Kurt-
Lewin’s three step process of change to create change you want.
Suppose that I am the founder of the coffee shop and money was stolen from us.
Firstly, I recruit those employees to whom I can trust. I have personal contact with
employees. Then I put CCTV camera on the shop for check and balance.
I also developed guidelines for web developers, web content developers, and document
authors and producers to clearly identify the steps that need to be taken to ensure they
produce products and services that are accessible to all.
I also Planned workshops designed to help employees in various positions understand their
responsibility to make products and customer service accessible and introduce them to the
tools they can use to achieve this.
The annual Best Accessibility Implementation Contest will also help raise awareness, spread
the word about the ongoing effort, and allow employees across the company to vote on who
should get the incentive.

Explain why people resist change?

Mostly people resist change because individual feel more secure in traditional approaches.
New technology, new procedures and new system can create uncertainty. May people lost
their jobs when there is new technology introduces in offices like when plant become
automated, or an office become computerized.

What is loss aversion and how is related to encouraging change?

Loss aversion refers to a person's tendency to avoid losses rather than make gains of equal
value. The concept of loss aversion motivates people to do so when evaluating a decision-
making process, place more emphasis on the prospects for a particular or probable loss risk
aversion in case of losses. If we do not have something that has great uses, they tend to take
greater risks to get or own it. Individuals tend to look for useful things that they are not
obsessed with and that take more risks to gain something they do not have utility yet. To
break away from the old thinking, an independent business unit with its own structures for
performance management, recruitment, compensation and governance was designed. The
separation of the new business from its old parent created the mindsets and behaviors
required to engage with new and very different customers.
Bonus: “To start a new business, it is best to quit my job”. Discuss why you agree or
disagree with this statement.

To start a new business, it is not necessary to quit a job. I am strongly disagreed with this
statement. Although it is not easy, many people have been able to start a business while
working full time. This effort can take a lot of work. However, if you do it right, this option
has the lowest risk. Unfortunately, this option does not work in all circumstances. Some
businesses need a full-time job before they can generate income. Before you quit your job,
you need to set a budget for yourself and your family. At a minimum, this budget should
cover all your needs. Because somehow your business is not working properly, you face
obstacles but the money you can get from your job can easily bear your necessities.