Scenario 1:
This change will be perceived negatively by the employees as they will see this as ingratitude on the company’s part, especially since they were dedicated to their jobs. As such, the employees can resist the change possibly by holding a strike or by leaving the company (for those who are not laid off). At any rate, the change may result in the remaining employees getting demoralized. Another barrier to change would be the rest of the management team not buying into the proposed change. They may see it as unnecessary or as equating to more expenses. After all, they would have to pay the separation pays of those who are laid off. In addition, this would mean having to hire independent contractors, which would again equate to more costs. That said, another possible barrier to change would be the company’s financial resources, that is, if they would have the budget for such a change. As well, another barrier to change may be the policies and government regulations that the company must comply with in order to implement these changes.
With the employees holding a strike or getting demoralized, productivity is bound to suffer. In addition, the loss of so many employees will reduce the company’s output as they won’t be able to easily replace these laid off employees. The process of hiring for independent contractors will take a while and then there’s also the risk that the independent contractors may not produce the same quality of work as the laid off employees did. Similarly, it will take some time for the company to get used to the new process of working with independent contractors, which can result in further delays and confusion in the process of completing projects. Also, just because this business model works for other companies doesn’t necessarily mean that it will also work with AS/C.
Scenario 2:
One of the main resistances would come from the employees. Because of the fear of losing their job, some of the present employees may no longer be motivated to work, which may result in reduced productivity. Some of the employees may also resort to unbecoming behavior, which may result in the reduced quality of customer service that the employees provide. As well, resistance may come from the community as they may sympathize with the store’s young employees. The community may also resist, especially if they see the store as a wholesome place that will now turn into a bar of sorts, considering that the store’s customers mostly comprise of white males in their 30s and 40s. Moreover, resistance may come from customers who have a preference for Pepsi products and who might refuse drinks of other brands. This may reduce the size of the store’s customer base.
As such, some of the unintended consequences that the company may face include incidents of employee misbehavior, which would be accompanied by customer complaints. Since the company has branches all over the country and since even some of the managers are below 21, this situation can become quite difficult to handle. If the employees decide to hold a strike then this would disrupt the company’s operation, which will result in revenue losses and customer dissatisfaction. With the community resisting the change, it can result in the further decrease of the company’s customer base. As well, since the store is a drive-thru store, this would imply that they would be offering alcoholic beverages to people who are driving. Aside from community complaints, this can also result in possible legal issues. Moreover, all of this can give the company a bad reputation, and it may take some time for them to rebuild it.
