Since the mid-1980s, Disney's strategic planning group turned the company into a huge and diverse collection of media and entertainment businesses. The sprawling Disney grew to include everything from theme resorts and film studios to media networks to consumer products and a cruise line. The newly transformed Disney proved hard to manage and performed unevenly. Recently, Disney disbanded the centralized strategic planning unit, decentralizing its functions to Disney division managers. Since then, Disney's management has helped it perform strongly in a competitive marketplace. Which of the following, if true, would support the conclusion that disbanding the centralized planning unit helped Disney perform strongly?
A) The centralized planning unit used a decision procedure that required business units to answer the same fundamental questions each year.
B) In the entertainment industry, companies can be profitable if just a few of their projects earn extraordinarily high returns.
C) The centralized planning unit was created in response to concerns that the company was losing focus on its core business.
D) An economic downturn that took place after Disney disbanded the centralized planning unit reduced Disney customers' discretionary income.
E) Disney's rivals often change their management structures as part of efforts to make their organizations more efficient and customer-focused.
Correct Answer:
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