GudGadgets is a leading manufacturing company. It used a particular raw material as the base for manufacturing most of its products. Due to some recent events, the government banned the overall supply of that raw material. As a result, the company had to switch to another raw material. This called for a change in the machines and other processes involved in manufacturing its products. The company stopped the production of some established products and introduced new products to remain competitive. This scenario is an example of _____ change.

Question

Quizplus · Accepted Answer

This scenario is an example of transformative change because the company had to completely change its raw material, machines and processes, and introduced new products to remain competitive. It was not an incremental change as the company had to stop the production of some established products, and it was not a planned change as it was a result of an external event (government ban) and was not pre-planned by the company.

GudGadgets Is a Leading Manufacturing Company