You are the owner of a company that makes tennis shoes. For 50 years, your company has used rubber as a key component in all of your products. Recently, you read a National Geographic article saying that rubber trees are starting to diminish and that they may become extinct in the next 15 years. Now you will have to rethink everything about the way you make shoes.

The type of change that will be most effective in this scenario is:A. ProactiveB. Reactive

A. Proactive  

Explanation:

A proactive change refers to a change in the organizational policies, structure, strategies or approach of a firm in advance, with respect to an emerging anticipated adverse situation.

A reactive change on the other hand means change in an approach which is forced, due to an adversity. In such a case, an organizational change is an outcome of a reaction to a given situation.

In case of a proactive change, the situation is only predicted and anticipated and yet to arise. While in case of the latter, the event has occurred forcing the management to redefine it's policies and approach.

In the given case, the tennis shoe maker company anticipates a shortage in the quantity of it's major input i.e rubber owing to diminishing rubber trees.

Here, the organization needs to address this emerging threat proactively i.e in advance and needs to find some other alternative to rubber or re- design it's shoe manufacturing process, so as to adapt better.

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