1. The narrative text introduces the participants in the story which is an ugly duckling hatched from an egg in a duck's nest.
2. The ugly duckling faces problems as it grows up being bullied by the other animals for its unusual gray appearance unlike the other ducklings.
3. The ugly duckling runs away and hides in bushes until seeing three white swans. Upon seeing its reflection in the water with the swans, the ugly duckling realizes it is not a duck but a beautiful swan, resolving its crisis of not fitting in.