A company saw a drop in sales after negative publicity around a scandal involving safety reports. The strategic changes the company makes to deal with this situation are reactive changes.

Question

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Reactive changes are changes made in response to an external event or circumstance, such as negative publicity affecting sales. The company is reacting to the drop in sales, which is a consequence of the scandal, by making strategic changes to address the situation.

A Company Saw a Drop in Sales After Negative Publicity