MBA FPX 5002 Assessment 1

Introduction

This essay attempts to describe how Panera Bread, in 2010, applied critical thinking to resolve the problem known as the “Mosh Pit.” The paper will also discuss how VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) affects organizations and how it influenced critical thinking in solving organizational problems. It will also analyze a problem at another company and describe how VUCA could be used to address the problem as well as the impact.

Panera Bread’s Mosh Pit

“Fast food” typically refers to food that is quickly prepared and accessible. Panera Bread transformed the fast food concept by serving meals made with fresh food every day, bestowing on the company an elegant feel. As popularity grew for the chain, CEO Ron Ahaich identified an issue. In 2010, consumers waited quite some time to place their orders and they waited a second time inside the “Mosh Pit” area for orders to be prepared. Ahaich sensed a need to rethink Panera’s service model to solve this issue and devised the launch of the “Panera 2.0” test at Braintree, Massachusetts (Jargon, 2017).

Creating this solution required critical thinking with a view to improving customer experience. Employing online ordering and self-service kiosks addressed the “mosh pit” issue. However, this solution brought with it new issues, such as dealing with personalized orders, which caused kitchen mistakes. VUCA was part of this solution, especially in dealing with uncertainty, complexity, and ambiguity. Customers could now personalize their orders on the web or at kiosks, which caused issues with dealing with their complexity. Panera countered these challenges by revamping its employee processes and implementing a kitchen display system to minimize errors (Jargon, 2017). Panera’s ability to adapt its business model to suit customer demands contributed to the success of the company.

T-Mobile and Cable TV

T-Mobile, or the “uncarrier” of the wireless market, is now looking toward the cable market to expand its brand presence. The main issue in this market is the costly nature of cable and its customer-ignoring strategy. T-Mobile has already addressed the issue of customer focus in its core business by restructuring its call centers into collocated teams, each one of which serves the customers of a specific region (Dixon, 2018).

With the advent of 5G technology, which provides more speed for streaming video, T-Mobile is positioning itself to take advantage of it to crack the cable market. However, concerns exist regarding the 5G roll-out due to the need to conduct test markets prior to a nationwide mass roll-out. The challenges include working on LTE technology in building the 5G network, choosing what hardware to install, and mapping out locations for upgrading. Ensuring the new network can handle increased demand is also a complex task (ICT Monitor, 2017; Alleven, 2017).

Acquiring hardware to expand the network is also a challenge. The supply chain function must coordinate with vendors to acquire equipment to be utilized, and it must be tested for compatibility before rollout into test markets. These test runs will inform the company’s ultimate design for rollout nationwide.

Critical Thinking

Critical thinking is necessary in solving business problems. For T-Mobile, the problem is how to enter a new market successfully. The company’s focus on customer-oriented solutions has already led it to the third-largest cellular company position, and the same approach will be applied to the home entertainment sector. Critical thinking allows T-Mobile to rethink its business processes, make fresh decisions, and integrate alternative perspectives into its strategies (Kallet, 2014).

Critical thinking, as defined by Kallet (2014), consists of three vital components: clarity, conclusions, and decisions. Firstly, we need clarity to pinpoint the problem, which in this case is the high cost of cable and its limited substitutes. Second, the conclusion is to disrupt the cable industry, much like T-Mobile disrupted wireless. Thirdly, the leadership group makes decisions, identifying the core issues and formulating strategies for quantifiable progress.

VUCA

VUCA is an acronym for four kinds of problems that require various responses: volatility, uncertainty, complexity, and ambiguity (Bennett & Lemione, 2014). For a technology-driven, customer-centric company such as T-Mobile, VUCA can be significant.

• Volatility involves unexpected changes in the market, and T-Mobile must be adaptable to address customer demands.
• Uncertainty can result from factors beyond T-Mobile’s control, such as FCC regulation.
• Complexity involves addressing both internal and external issues, which requires knowledgeable staff across various departments, including government regulation, supply chain, and finance.
• Ambiguity is the enigma of venturing into a new market. For T-Mobile, test markets will serve to locate and address these issues.

The recommendation is to use test markets for addressing potential disadvantages prior to a huge launch nationwide.

Conclusion

This essay has outlined Panera Bread’s challenges with its “Mosh Pit” scenario and how critical thinking was applied to resolve the issue. It has also addressed how VUCA impacts organizations and how T-Mobile can confront the challenge of entering a new market. Critical thinking and VUCA are essential tools that help companies cope with uncertainty and complexity and ensure that they remain customer-centric in addressing problems.

MBA FPX 5002 Assessment 1: Critical Thinking in Action

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/2017/02/17/vuca-2-0-a-strategy-for-steady-leadership-in-an-unsteady-world/#5972d07613d8

Jargon, J. (2017, June 2). The article discusses Panera’s solution to the mosh pit problem. The Wall Street Journal.

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