Which type of change occurs in response to external pressures?

The correct answer highlights how organizations often respond to external pressures as a means of adapting and surviving in a dynamic environment. Reactive change specifically refers to adjustments made in response to events or situations that have already occurred. When external factors, such as economic downturns, new regulations, competitive threats, or shifts in consumer preferences emerge, organizations must react to stay relevant and viable. This kind of change may involve altering strategies, processes, or structures in order to align with the new external reality.

In contrast, proactive change is initiated by organizations based on predicted or anticipated future trends. Transformative change implies a significant overhaul of an organization's culture, structure, or operations, potentially driven by a vision rather than external pressures. Phased change denotes a gradual implementation of change over time, which could be either proactive or reactive. However, the defining characteristic of reactive change is its basis in immediate responses to external challenges, making it the fitting choice in this context.