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Critical Thinking in Action

Categories: Literature

  • Words: 3177

Published: Jun 29, 2024

Business organizations are faced my numerous challenges and this implies that business managers should adopt and implement effective strategic approaches in order to solve such challenges. For example, a company facing difficulties when trying to serve their clients can solve this problem by creating an online website which customers can use to order for goods without necessarily having to physically visit the premises. Over the years, many business corporations have been utilizing the volatility, uncertainty, complexity, and ambiguity (VUCA) strategic management model to restructure their commercial contexts.

This concept incorporates the key forces that adversely affect companies' activities. Ideally, volatile markets are subject to dynamic and uncertain changes such as sharp price variations and change of customers' tastes and preferences. Chaotic and interconnected factors in business operations characterize complexity in this model. The final aspect, ambiguity, implies that organizations face situations that are unclear as well as difficult to comprehend (George, 2017). This paper evaluates and summarizes the Panera Bread case study and subsequently off ers an example of how another business can solve its issues using the VUCA model. Considerably, Panera Bread was able to devise, implement and adapt to new changes by understanding their organizations strengths within their capacity.

The Panera  Bread  Problem  and  an Example  of  a Business  That  Can Apply  the  VUCA Model

Panera Bread faced the issue of long queues of consumers waiting to place their orders. The average waiting time for a customer was seven minutes. Even after customers awaited their orders this long, a significant portion of about ten percent of the total orders was wrong (Jargon, 2017). The ten percent was remarkable shortcoming since the business encountered similar problems in all its two-thousand restaurants. The management team realized that the commercial enterprise incurred reductions of profits and its market share would shrink in the near future. Consequently, the organization decided to change its ordering method to an online system (Jargon, 2017). It was hopeful that the new service model would result to a more profitable business in both the short and long run. However, the company did not implement these changes within a short period; it took slightly more than six years to arrive at the right process as it tested how store managers were patient and working hand-in-hand with top managers, an activist shareholder, as well as Wall Street business analysts. Currently, online orders constitute more than twenty-five percent of the company's sales. Besides, the average waiting time dropped to one minute from the previous seven minutes (Jargon, 2017). Analysts argue that Panera is one of the leading examples of businesses that have successfully incorporated technology in their operations.

Although Panera Bread solved its issue, similar challenges continue to affect many businesses across the world. Panera applied the VUCA model effectively partly because they had a clear vision. This vision helped them to see what changes needed to be implemented to alleviate the "mash pits". Understanding that the need to decrease waits time, they used innovations, online ordering to reduce the customers wait time and make for an overall pleasant experience. Panera Bread case highlights some key aspects which are important when implementing new strategies in a business setting. These aspects include; understanding: In order to fulfill their current vision, Panera needed to weigh their strengths and weaknesses, did they have the capabilities to pull this new strategy off.

Courage: Panera demonstrated an inordinate amount of courage when they decided to implement the new changes. This meant throwing half of what they did out of the window and starting again. Training and hiring new staff to cover the new aspects of ordering and fulfilling the orders, the advertising, website creation and staff abilities, all these aspects had to be addressed and it was a tremendous undertaking financially and physically.

Adaptability: The changes were not easy to implement and they did not happen overnight. Over the course of six years, Panera implemented different aspects of their new system. They realized that presented the changes in one fell swoop would be too much, not just for the organization, but the customers as well. They made changes gradually over time and it proved to be a successful change.

Panera is a prime example of how the implementation of VUCA created a successful venture into the unknown waters that was online ordering. We see it now in just about every major franchise around the country. As Kallet (2017) suggests, the management of this business can apply the three steps in critical thinking to find a solution to this ordering problem it faces. This critical thinking framework involves discovery, information, and ideas that result in clarity, conclusions, and decisions. Importantly, critical thinking should have a strong basis for decision­ making, relatively long period of achieving clarity, and shorter period for adopting decisions. Discovery of the problem would involve learning the real issue affecting the business, while the organization would achieve a high level of clarity by establishing the deep-rooted causes of the matter (Kallet, 2017). Once it identifies these facts, it can embark on finding a solution to the issue. Clearly, as outlined above, Panera used the critical thinking framework Kallet outlined in his book, like a roadmap to get them to their desired destination.

Personally, I encountered a similar experience in my business were I had to use critical thinking and the VUCA system (unknowingly) to achieve optimum results. The company I was contracted required us to use a pool of money to advertise as a group, even though we were independent contractors. I was fine with pooling our funds to maximize exposure, I was not in agreement with the type of advertising they were proposing. This was in the early 2000's, the internet and social media were in their infancy. I was fairly young as was most of my staff, but I worked in an industry were many of my colleagues were much older.

My vision was using the internet as a new, less expensive source for advertising.  I proposed using a portion of our dollars in something new. My demographic was targeted for a younger crowd, the type that was more likely to use social media and the internet. I pushed for this but was unsuccessful. They wanted the status quo, phonebook advertisements, newspapers and radio spots. I used the phonebook at the time as a doorstop, read the paper online and had satellite radio, none of these mediums would ever reach me or my desired customers.

I pushed for a clause to opt out of the pool and use my dollars were I thought I would maximize a return on investment. It was an undertaking, I was going to receive less commissions and compensation because I was opting out. This was something I was willing to do because I had the understanding that I would make what I was losing out on, plus much more, for a fraction of what others were spending. I needed to do this, I knew I had the staff that was proficient and had a better understanding than I, of how to use the internet and not only target but serve the population we were hoping for. It was a little unnerving to go rogue and try something that had never been attempted, but I knew I had the right people and it was the right choice for me. After all, the dinosaurs died out due to their inability to change, right?

To implement the changes, we started advertising on Facebook, MySpace, and YouTube and on several other online search engines. I did divert a small portion of my budget to the traditional mediums, just in case. Our venture proved fruitful. We had the fastest growing business in the Pacific Northwest territory, which encompassed 5 states. Soon after, all our advertising would go into the internet and social media. As we know now, it is the number one way to advertise, but it seemed something so out of the realm when we started. My model was soon implemented by the company wide when pooling funds. Of course, being dinosaurs, they still used portions towards traditional advertising but that changed gradually over the years.

Recommendations

According to my opinion, this business should adopt an online platform of enabling its customers to place orders in real-time. In the current market situation, competition is a major factor in play and therefore organizations should stay in pace with advancements in technology lest they lose their market shares. Consequently, consumers will be satisfied with the services of the business and they will most likely remain loyal as well as act as referrals. This recommendation relies on evidence in the fast-food industry because McDonald's has adopted technology that is different from what its rivals are using (Kahlon & Sur, 2018). Notably, this technology, which is also known as geo-fencing technology, involves an app in which customers place and pay for their orders online. As it applies to my situation, we used technology to leverage our advertising funds to maximize profits while tapping into a new medium that would soon be the standard that all businesses now use.

How VUCA Would Affect the Situation and Recommendation

Arguably, the VUCA Model would affect the recommendations in this paper since it will promote the supply chain management as well as performance in the business. According to what other companies, such as McDonald's and Panera Bread, have  achieved using this model,  the VUCA approach to finding innovative solutions to issues will help industry leaders to change the conventional supply chain management. It takes vision, courage, innovation and hard work, but bold strategies are needed in an ever changing world. We need to use technology and changes to our advantage, otherwise, we drown. I inadvertently used the VUCA model in my business, I had never heard of it before. But I recognized the changes that were needed and used a strategic method to implement them.

Conclusion

From the above discussion, it is apparently evident that when business leaders and managers face ambiguities, complexities, uncertainties, and volatile situations, they can possibly apply the VUCA concept to achieve innovative answers to these problems. The above discussion proves that organizations can utilize this model to change business issues into avenues of attaining achieving a competitive advantage. Donut's can use the critical thinking model to identify its issues as well as adopt an innovative solution that relies on the VUCA framework. Notably, this model has been beneficial to companies such as McDonald's and Panera Bread, it also proved very effective in my business.

 

References

  • George, B. (2017, February 17). VUCA 2.0: A strategy for steady leadership in an unsteady world. Forbes.  Retrieved from: https://www.forbes.com/sites/hbsworkingknowledge/201  7/02/17/vuca-2-0-a-strategy-for-steady­ leadership-in-an-unsteady-world/#7  4c8c24413d8
  • Jargon, J. (2017, June 2). How Panera solved its mash pit problem. The Wall Street Journal.
  • Kahlon, K. G., & Sur, K. S. (2018). Digital Adoption for Consumer Delight: £-Restaurant. Sansmaran Research Journal 2(5), 1-16.
  • Kallet,  M. (2014). Think smarter:  Critical thinking to improve problem-solving and decision­ smaking skills. Hoboken, NJ: Wiley & Sons.

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