Introduction
Critical thinking is one of the central tools of businesses that aim to succeed in a highly competitive market. It is especially crucial for the decision-making of the company as it allows the leaders of the company to achieve effective problem identification and analysis, as well as objective comparison of alternative courses of action (Pastor, 2018).
Walt Disney Company is known for its emphasis on critical thinking, which is evident from the decision-making processes of the company. For instance, the company’s acquisition of Marvel Entertainment in 2009 was a strategic decision made after careful analysis and evaluation of the potential benefits and risks.
The acquisition has proved to be a successful move, with Marvel’s superheroes becoming some of the highest-grossing films of all time under the Disney umbrella. Additionally, the company decided to release the film Mulan on its streaming platform, Disney+, instead of delaying the release. Eventually, this decision proved to be a success, as the company could still get a profit under the conditions of full isolation. In summary, critical thinking is crucial for decision-making in the Walt Disney Company to make informed decisions.
Analysis
The Walt Disney Company’s decision to diversify can be attributed to several factors, including increasing competition, changing consumer preferences, and technological advancements. To remain competitive and meet the evolving needs of consumers, the company had to expand.
According to a study by Arte and Larimo (2022), diversification can lead to increased profitability, reduced risk, and enhanced organizational flexibility. They argue that diversification can create new opportunities for growth. This aligns with the Walt Disney Company’s strategy of diversification, as the company has successfully entered new markets such as theme parks, consumer products, and streaming services.
Disney took several steps to implement its diversification strategy. One notable example is the company’s launch of Disney+ in 2019, as it allowed the company to enter the streaming market and compete with established players such as Netflix and Amazon Prime.
According to a study by Schommer, Richter, and Karna (2019), diversification through acquisition can be an effective way for companies to enter new markets and achieve strategic goals. This can be seen in the company’s move to acquire Marvel Entertainment. This was strategically aligned with the company’s goal of leveraging its intellectual property to create new revenue streams. Now, it is evident that this decision paid off and the Disney company is getting even more profit than it intended.
Considering the above-mentioned factors, the Walt Disney Company’s decision to diversify was driven by several factors, including increasing competition, changing consumer preferences, and technological advancements. The company took several steps to implement its diversification strategy, including acquisitions and the launch of new products and services. That is why it can be concluded that well-informed decisions made using critical thinking bring exceptional results such as an increase in profit and the company’s growth.
Conclusion and Related Outcomes
The role of logic, evidence, and arguments in the Walt Disney Company’s decision-making process is significant. The company is known for its analytical approach to decision-making, which involves collecting and analyzing data, evaluating various options, and making informed decisions based on evidence and logical reasoning, which minimizes the risk of making costly mistakes.
The decision to expand the products, and services of the Walt Disney Company was successful. The company’s diversification strategy has allowed it to enter new markets and create new revenue streams. The company’s expansion has also helped it mitigate the risks associated with the cyclical nature of the entertainment industry and increased competition.
References
Arte, P., & Larimo, J. (2022). Moderating influence of product diversification on the international diversification-performance relationship: A meta-analysis. Journal of Business Research, 139, 1408-1423. Web.
Pastor, J. (2018). The role of critical thinking in effective decision making. The Journal for Quality and Participation, 41(2), 44-47. Web.
Schommer, M., Richter, A., & Karna, A. (2019). Does the diversification–firm performance relationship change over time? A meta‐analytical review. Journal of Management Studies, 56(1), 270-298. Web.