Critical Thinking in Action

This report discusses how critical thinking is applied to solve problems faced by Panera Bread and Starbucks. It provides evidence-based solutions and recommendations.

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Critical Thinking in Action
Students Name

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Assessment 1
Introduction
The report provides the comprehensive discussion of how the Panera bread company
faced the mosh pit problem and will give the detail discussion of how the concept of VUCA
and critical thinking is applied to provide solution to the problem faced by the company. It
also describes the problem faced by the company Starbucks and the use of critical thinking to
solve the problem. The report provides the evidence based solution to the problem faced by
the company and recommendation to solve the problem (Jargon, 2017).
Situation of Panera Company
The Panera Bread Company is considered as the most renowned sandwich and soup
chain and covers more than 2000 restaurants around the world. The company was growing at
a high pace but the problem that hampers the sales of the company was realised by the CEO
of the company. He believed that instead of waiting in the long queue for the order it is better
to eat the left out. He expressed and realised that the customers also think in the same way.
He scrutinised the current situation and realised the foremost reason for the decrease
in the sales. The key reason for the decrease in the sales was the longer waiting time in
ordering the food and then the time required for the delivery of the food. This current
situation leads to decrease in the sales because the interest of the customers was losing and
waiting for the long time was killing their desire to eat. The CEO also realised that after the
long wait the customers were receiving wrong orders due to inefficiency of the management
and creates the havoc in the minds of the customers (Jargon, 2017).
It was analysed that the consumers was losing interest because they had to wait too
long for ordering and then they are waiting for receiving the order and then too sometimes
order placed was different and the delivery is different. This confusion created dissatisfaction
among the customers and thus reducing the sales of the organization (Jargon, 2017).
The company has made the possible efforts to critically scrutinise the current situation
of the company and has analysed the technology required, the patience level of the managers
of the stores and the interest of the stakeholders to manage the issue. After six years of
struggle, the company developed the prototype to test the reactions of the customers in the
Braintree cafe. It makes the critical analysis of the delivery method, ordering digitally and
implementing new practices to deliver the food on the table.
The company took six years to develop the prototype after analysis of the reactions of
the store manager, the technology required for implementing the change, development of
self-order kiosks was a very complex job because the customers will customise their orders
according to their choice and can increase the chance of errors because of complexities in

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orders. The company analysed all the aspects that can hamper the success of the prototype
and develop the strategy accordingly (Jargon, 2017).
Development of such prototype helped the company in reducing the waiting time
from eight minutes to one minute and quarter of the total sales were done online to reduce the
havoc created at the counters and maintain the interest of the existing customers while
focussing on creating potential customers for the company (Jargon, 2017).
The company put all the deliberate efforts to implement the change in service delivery
in the environment that is full of complexity, volatility, and uncertainty and ambiguous.
Implementation of the change is a very complex process and requires the analysis of every
small step. The company has applied its efforts to scrutinize the unforeseen events, has made
the application of the latest technology to develop self-kiosks ordering app, and was
successful in reducing the time of ordering from 8 minutes to 1 minute.
For analysis of the current situation the company has spent 100 hours per week to
judge the reaction of the customers and the ability of the kitchen counter to handle the
customise order made by the customers.
The company uses the VUCO framework to analyse the complexities in the business.
Volatility refers to the speed with which the changes occur and the environment in which the
business operates in full of uncertainty (Jargon, 2017).
The company requires analysing the complexities of the business, which can create
roadblocks in the success of the enterprise. It is analysed that in adopting the changes in the
process of delivery the company needs to scrutinize each small step that can be a threat for
the company and has to take the actions accordingly. The VUCO framework has helped the
company to consider each single aspect of the business and take the actions accordingly
(Jargon, 2017).
Starbucks Company
The company Starbucks is also struggling due to decrease in the sales of the company.
The company realised the problem for the decrease in the sales was the outlets of the
company are being congested and the presence of conflicts among the customers who have
ordered online and the customers who walk in to receive higher experience. The customers
who walk in to the outlets expect that they will receive the order first. Such difference is
perceptions created dispute among the customers and leads to decrease in the sales of the
company (Mourdoukoutas, 2018).
The customers do not wait and are getting offensive at the outlets. Such attitudes of
the consumers are creating a great havoc for the company to develop the environment where
the customers can achieve greater experience. Such difference in perception develops the
emerging need for the company to implement change in the service delivery and creates the
environment, which deliver higher valuable experience to its customers. Adoption of strategic
change will help the company to regain the trust of the customers and to attract more
potential customers for the brand (Mourdoukoutas, 2018).
It is analysed that the increase in the competition will shift the customers demand to
its competitors and the company struggles with the situation of being perceived same as the

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Mc Donalds. It was analysed that adding more of technology will not lead to increase in the
capability of the employees (Mourdoukoutas, 2018).
Adoption of the new technologies will not increase the capability of the employees
and the major threat for the company was that the customers were not able to create
difference between Mc Donalds and Starbucks and thus affecting the sales of the company.
The demand of the services was decreasing because of increase in the close competitors
(Mourdoukoutas, 2018).
Framework of Critical Thinking
The application of the critical framework will help the company to solve the problem and
will further provide the mechanism to upsurge the sales of the company.
 Precision of Goals- The Company must describe the goals to be fulfilled so that it
does not leads to formation of complex situations and the employees must have the
clear blueprint of the goals to be achieve.
Clarity of the goals to be achieved will not create ambiguous picture and will help the
organization in achieving the objectives efficiently and effectively.
 Outcomes- the Company must prepare the list of the activities that are to be
performed to achieve the objectives stated in the blueprint.
The list of the activities will cover the actions that the firm will take in order to
accomplish the goals that are stated and reduce the complexities that comes in the way
of achieving the goals of the organization.
 Judgements – This stage is the last part of the framework that covers the actions and
the decisions taken to implement the list of activities mentioned above and achieve
the goals of the company.
This stage is the actual implementation stage where the list of activities is
implemented and the critical decisions are made at this stage (Kallet, 2014).
Recommendation
For resolving the struggles faced by the company, it must focus on analysing the
reactions of the customers and the managers of the store by developing the prototype for the
company. It must also scrutinize the cost in implementation of the new technology and must
focus on maintain the interest of the stakeholders.
The company must increase the labour facilities to meet the increasing demands of the
customers and must put all the possible efforts to reduce the conflict among the offline and
the online customers (Turban, Strauss & Lai, 2016).

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Outcome from application of VUCA framework
(Source: Reinecke, G., 2016)
The application of the VUCA framework will affect the solution and the problem of
the company because the business operates in the environment, which is highly volatile,
uncertain and ambiguous. The application of the framework will help the company in
analysing the barriers that can be bottleneck in the success of the company (Nandram &
Bindlish, 2017).
Conclusion
From the critical discussion, it is concluded that the Starbucks must focus on analysing the
reactions of the employees. It must develop the prototype, which will help in recording the
reactions of the customers and must focus on enhancing the capabilities of the employees. It
must scrutinize the cost involved in implementation of the change.

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References
Jargon, J. (2017). How Panera solved its “mosh pit problem”. Retrieved from:
https://www.wsj.com/articles/how-panera-solved-its-mosh-pit-problem-1496395801
Kallet, M. (2014). Think smarter: Critical thinking to improve problem-solving and decision-
making skills. Canada: Wiley
Mourdoukoutas, P. (2018). Starbucks problem at home and abroad. Retrieved from:
https://www.forbes.com/sites/panosmourdoukoutas/2018/06/27/starbucks-problems-
at-home-and-abroad/#6242606364b5
Nandram, S.S, & Bindlish, K.P. (2017). Managing VUCA through integrative self-
management. Switzerland: Springer nature
Reinecke, G. (2016). Coaching VUCA [Online]. Retrieved from:
http://www.infocusnet.org/coaching-vuca
Turban, E., Strauss, J., & Lai, L. (2016). The Social Enterprise: From Recruiting to Problem
Solving and Collaboration. In Social Commerce, 181-203.