Case Interview Prep

Category - Management

When company XYZ heard of a proposed law that would require them to file a report each month on their hiring practices, the company hired lawyers to help prevent the law from becoming official. What type of company reaction is this representative of?
  1. Reaction
  2. Defense
  3. Accommodation
  4. Proaction
Explanation
Answer: A - The company is displaying “reaction” and fighting the law or pressure all the way.

Key Takeaway: When a company responds to a responsibility or pressure by fighting against it, this is called “reaction”. Sometimes the company will be successful in avoiding the new pressure and sometimes they will not. Extreme care should be taken when a company chooses a reaction method since this can be perceived in a negative light be potential consumers and customers.
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