Question

Esca Motors is aware that the brake wires used in its cars are of poor quality. Yet, it refuses to take any action and proceeds to produce and sell the cars. The family of a victim who lost his life due to a brake failure in the middle of a highway sues the company. Esca Motors is pressurized by Congress to recall its cars and compensate the victims with money. Esca Motors gives in to the pressure and does what is necessary. This is an example of _____.

Answer 1

Answer: Reactive strategy.

Explanation: Reactive strategies are responses or actions taken by a company in other to arrest an unanticipated or unforseen event after it has taken place or occurred. Reactive strategies are often implemented only when a company is forced or pressurized into taken appropriate measure to tackle issues caused by its product.

In the scenario above, Escalante motors only recalled it's cars after being pressurized by congress even though the company knew the brake wire used were of low quality. Reactive strategies are opposite of proactive strategies which takes appropriate measures to handle or tackle future occurrences.