Step 1: Benzene diazonium chloride reacts with phenol in basic medium to form p-hydroxy azobenzene, an example of azo coupling.
Step 2: The reaction is: \[ C_6H_5N_2Cl + C_6H_5OH \xrightarrow{NaOH} C_6H_5N=N-C_6H_4OH \]