Question

Potanta is a company that manufactures herbal soaps. Over the years, the availability of aloe vera pulp, which is the keyingredient of the company's best-selling aloe vera soaps, has reduced. As a result, the company has to slow down its production of aloe vera soaps, and this affects the company's income. In the context of changing environments, which of the following does this scenario best illustrate?

a. Punctuated equilibrium
b. Discontinuous change
c. Resource scarcity
d. Buyer dependence

Answer 1

The answer is: C) Resource scarcity

Step-by-step explanation:

Scarcity can be defined as the gap between limited resources and theoretically unlimited needs and desires. A basic rule in business is that resources are finite, therefore given enough time resources will become scarce. This is why diamonds and gold are so valuable.

In Potanta's case, one key ingredient, aloe vera pulp, is becoming scarce. This is an example of a core competency, best selling aloe vera soap, becoming a core rigidity due to scarcity. The company must find a substitute for their product lineup.