Critical Thinking in Business Essay

Critical thinking is a crucial aspect of the management that entails the use of cognitive skills to logically assess a given situation so as to make a sound decision that will lead to the desired results. This means that critical thinking is an essential tool for all business managers since it helps them remain competitive and stay afloat in their operations (Knight, 2014). The absence of critical thinking in a business is likely to make the entity less competitive, thus lagging behind its competing rivals. This essay will expound on how the critical thinking components of decision making, analysis, logic reasoning, and solving problems help a business to remain competitive.

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Thinking critically as a business manager aids in solving problems that arise within the day to day operations. The contemporary business world is dynamic with challenges coming up every now and then. The lack of critical thinking in the business management will likely drown the company due to lack of competitiveness. A manager that thinks critically will tackle the emerging problems as they occur with a view of maintaining a competitive edge over rival business entities. Problem solving becomes manageable to a manager equipped with critical thinking skills as they are able to navigate their companies out of the challenges that face the business in each situation (Kallet, 2014). They steady their companies from sinking in times of turmoil.

Critical thinking is also essential in a business environment as it helps the management to make logical deductions through reasoning. This effectively means that the company management will assess the environment in which they operate to help formulate inferences that will aid the business to grow amidst the competition. Concrete strategies on how to increase the business revenue through higher sales as well as dealing with rival services or products in the market are a product of critical thinking. This gives the business an edge which in turn helps it to remain competitive, unlike being in a situation where critical thinking is lacking thus hampering the competitiveness of the company.

Critical thinking is an instrumental component in the running of any business because it helps in taking calculated risks (Taylor, 2017). The viability or otherwise of any project for the company is assessed and given the risks or benefits involved thereof, the management applies critical thinking to determine whether they will invest in the said project or not to invest. A thorough analysis and evaluation of mutually exclusive projects helps in knowing the project to select and the one to discard. Businesses that fail to apply critical thinking in their analysis and evaluation of various projects are likely to end up being not able to compete with their rivals.

The foregoing discussion only serves to illustrate the importance of critical thinking in managing a business so that it remains competitive. This is a clear indication that lacking critical thinking skills will likely reduce the company to irrelevance as far as competitiveness is concern. This fact is underlined by the value of prudent decision making brought about by critical thinking. All business managers worth their salt will engage in decision making after a thorough critical thinking session that will entail the evaluation of the pros and cons of making the decision (Kallet, 2014). Strategic decisions give the company a competitive edge that sustains it against its rivals and the dynamic business world in the long-run.

References

Kallet, M. (2014). Think smarter: Critical thinking to improve problem-solving and decision-making skills. Hoboken, New Jersey: Wiley.

Knight, M. (2014). Finding ways to teach critical thinking in business and professional communication. Business and Professional Communication Quarterly. California: SAGE Publications.

Taylor, S. (2017). Critical thinking and business decision making. Saarbrucken: Scholar's Press.