a) Identify one (1) macro problem and two (2) micro problems in the case study. Justify your answers. [Hint: Macro problem is a broad problem and micro problems refer to specific problems.] b) Identify and explain three (3) main causes of the problems identified in Question (a) by referring to the four models of employee resistance.

Let's Travel is a travel agency registered in Malaysia. This private limited company was established in 2008 and has two branches in Kuantan and Kuching, respectively. Its core business is providing travel and tourism related services to the public. It has 20 employees working at the headquarters, which is situated in Kuala Lumpur, and 5 employees each in Kuantan and Kuching. At each branch location, a branch manager was appointed to supervise the other 4 employees. Although Let's Travel initial mission was to offer affordable package tour for Muslim tourists, it has now expanded its services to include various tour packages targeting at different tourist's segments. Mr Ahmad, the founder of Let's Travel and also the CEO, believed that targeting the new segments would increase the attractiveness of the company's services and also contribute to an increase in revenues and profits. In 2010, the company introduced the escorted tour and business tour, in addition to inclusive tour. Since the beginning, Mr Ahmad already knew that the new services would take quite some times before it reached the break-even point. In 2015, Mr Ahmad stepped down as the CEO. Because Let's Travel is a family business, his eldest daughter took over the company. Mrs Kay is already in her late 40s. She previously worked at an engineering firm as a Group Manager. When Mr Ahmad told her that he had to retire due to his poor health condition, as a responsible first child of the family Mrs Kay agreed to step in as the new CEO. Unlike her out-going and cheerful father, Mrs Kay is a more serious-looking and distant person. Everyone at the HQs was nervous when Mrs Kay came to Let's Travel on her first day. They had the impression that Mrs Kay would be a very difficult boss to deal with. The first thing that Mrs Kay did was reviewing all the projects and the company's accounts. She was not happy with the results. She thought that some projects should be abandoned and cost- cutting strategies should be employed. On September 2015, three months after she was appointed as the new CEO, she called for a meeting with all employees at the HQs and also the two branch managers. "I have reviewed our projects. I notice that the inclusive tour project is doing well. It seems that our customers are happy with the Muslim package tour that we offer. There is an increase in our revenues for this project, even though the increase in profits is not so much. However, looking at the other two projects, well, I think they are just our extra luggage" explained Mrs Kay. "Yes, Mrs. Kay. It's true, but the two projects are new projects that were introduced in 2010. Although the progress seems to be slow, it has great potential if we strengthen the promotion on these two projects" replied Orked, the Project Manager. "How is our promotion? How often did we have the road tour? From this account, I see that we had spent a huge amount of money on promotion. For example, we already spent RM50000 since January 2015. Don't you think that this is too much?" said Mrs Kay. "You see; promotion is the heart of our business. We have to continuously promote our package tours. The market is intense nowadays. Many travel agencies are targeting at the same segments. So, whenever there is a related exhibition, we will be there setting up our booth. We have to station at least three to five staffs to entertain our visitors" Kamal replied to the question asked by his CEO. Kamal was the Head of Marketing at Let's Travel. He had worked for the company since 2010, but was employed on contract basis for three years. In January 2014, Mr Ahmad agreed to continue his service for another three years. "Who did we send to be at the booth?" Mrs Kay asked. "We usually send our two marketing staffs and two administrative staffs whenever there is a road tour. I was also there to oversee the process" said Kamal. "I think you need to send out only one administrative staff besides our two marketing staffs. If you are there, then only one of the two marketing staffs should attend the event. We don't need to send the whole lot! No wonder we are spending too much on promotion. As seen from this account, we spent at least three rooms for two nights every time you all attended an event. The room itself costs at least RM250 per night. Including your meal and travel allowances, that accounts to at least RM2000. This is a waste of money! By the way, I thought we had our services put up on our website? What happens to it?" argued Mrs Kay. Kamal was taken aback. All this while, Mr Ahmad had never questioned him on how he executed the promotional activities. In fact, Mr Ahmad fully supported Kamal's ideas. After a while, he replied "The reason we need to have more staffs at the booth is to make sure we can deliver the information requested by our visitors efficiently. We do not want our visitors to be left unattended or have to wait for quite a time before we can serve them. Furthermore, our staffs can easily get tired of standing. They need to have their break, too. I normally asked them to take a break of 30 minutes in pair, and taking turns. If we have only one staff each, and including myself, it will be more stressful on us. " "With regard to our online promotion through the website, we are still on it. For your information, most of the updates was done by Mr Ahmad, previously. He believed that a personal touch and first-hand information from the CEO will be able to attract public's attention. Since he left the company, no one was assigned to take over the task. We thought you would be continuing his approach." Mrs Kay replied "I am not an IT savvy and I don't like to engage in all these social media things. Let our web designer to take over this task, and of course, you, Kamal, should assist him in updating the information." The first meeting was dragged up to six hours, discussing every single aspect of the company and its operations. Mrs Kay also suggested that the number of staff should be reduced. She believed that some works were redundant. For example, having three administrative staffs working on general assignments is not needed. She also disapproved a 20-minutes long coffee breaks. Lunch hour should be restricted to one hour only. Before this, staffs could take their lunch break up to 90 minutes. One month later, six staffs left the company. They thought that Let's Travel was no longer a happy place to work. The remaining staffs were unsure about the future of Let's Travel