A crucial component of the decision-making process is critical thinking. It uses several strategies to identify the best solution to a given issue. Identifying the problem is the initial stage, after which several fixes are suggested. The proposed remedy is then implemented in a series of plans to see if it works. To choose the optimal option, analysis, and assessment are required. Additionally, it ensures that steps are followed to make correct inferences (Cottrel, 2017). This paper will demonstrate that it is crucial in any firm’s decision-making process when entrusted with resolving any corporate challenges.
Disney’s diversification approach required critical thinking since it allowed for meticulous planning following brainstorming to find the best diversification techniques. For example, students questioned and looked into their sources while applying critical thinking strategies to examine the issue. They realized that the entertainment business was changing quickly, and they needed to keep up to surpass their rivals as the top players in their field.
Moreover, in this case, the context was built utilizing data from public reporting in several different methods. Public reports, for instance, have been used to evaluate the effects of the continually evolving media environment. According to Petersen (2018), they chose to include streaming in their diversification plan after learning that most consumers preferred it to satisfy customer wants and foster business expansion. Moreover, to comprehend the areas they needed to strengthen to achieve their organizational goals, they also used the opinions of the public.
Disney also decided to diversify for several reasons. To increase company revenues, they first chose to introduce new items. In order to sustain their market, they also sought to meet customer demand. Finally, they aimed to expand their firm and sharpen its competitive edge (Walt Disney Firm, 2018). Therefore, the techniques they adopted focused on achieving these three objectives to guarantee that no product struck the bottom low or overall high too hard and to maintain stability even during trying periods like the current epidemic.
It is also important to remember that one step in the diversification process was distinguishing their products to broaden their market base. In order to broaden the range of items accessible to their customers, Disney acquired Lucasfilm and Marvel Studios. Therefore, the company’s primary goal was to cater to clients of all ages, not simply kids and little women (Petersen, 2018). Thus, acquiring the two companies created family-friendly and adult entertainment, contributing to their content diversification.
In every decision-making process, logic, facts, and arguments are essential. Disney made precise forecasts of the impacts of the prospective remedy using logic. Evidence was offered to show how rapidly media was evolving compared to how the world was changing and what needed to be done to keep up. The firm looked at the available possibilities and used arguments to select the one that would work best for their business. Facts, logic, and reasoning all significantly influenced the company’s comprehension of the problem and decision. Therefore, their decision to reorganize when they moved to a new industry was critical.
Finally, despite the pandemic, Disney’s decision to extend its value chain has paid off, as its global sales are still rising. Petersen (2018) states that the company has over 74 million consumers, contributing to its success. Furthermore, it has developed into the most significant media powerhouse in the world, demonstrating that its diversification strategy was crucial to its growth.
References
Cottrell, S. (2017). Critical thinking skills: Effective analysis, argument, and reflection. London: Macmillan International Higher Education.
Petersen, P. (2018). The business model of the Walt Disney Company: Evaluating the potential of the business model in terms of its competitiveness. Munich: GRIN Verlag.
Waltdisneycompany. (2018, March 18). The Walt Disney Company Announces Strategic Reorganization. Thewaltdisneycompany. Retrieved from https://thewaltdisneycompany.com/walt-disney-company-announces-strategic-reorganization/
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