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    PracticeACCAACCA BT — Business & Technology Practice Exam 6Question 16
    Easy2 marksMultiple Choice
    Leadership and managementSection ASyllabus DChange Management

    ACCA · Question 16 · Leadership and management

    Oceanic Freight, a legacy shipping company, is transitioning to automated port logistics. The CEO holds a town hall meeting to share alarming financial data showing that if they do not automate, the company will be bankrupt within two years. According to Lewin's Change Management model, which stage is the CEO initiating?

    Answer options:

    A.

    Unfreezing

    B.

    Changing (or Moving)

    C.

    Refreezing

    D.

    Storming

    How to approach this question

    Identify the purpose of the CEO's action: creating a sense of urgency and breaking down resistance to the upcoming change. This aligns with the first step of Lewin's model.

    Full Answer

    A.Unfreezing✓ Correct
    Kurt Lewin's model consists of Unfreeze, Change, and Refreeze. 'Unfreezing' involves preparing the organization for change by dismantling the current mindset and creating a compelling need for change, often by sharing harsh realities.

    Common mistakes

    Selecting 'Changing' because a transition is mentioned. The specific action (the town hall meeting) is preparation, not the change itself.
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