MBA 5002: MBA Leadership: Critical Thinking in Action (April 10, 2024)

 

Critical Thinking in Action

The business environment is volatile, uncertain, complex, and ambiguous (VUCA), and critical thinking is essential in navigating turbulence. Kallet identified three steps to critical thinking: clarity, conclusions, and decisions (2014). In 2010, Panera applied critical thinking to resolve current supply issues and to introduce updated technology to its stores. In 2010, customers waited an average of eight minutes to order (Jargon, 2017). Panera set a goal to reduce this wait time and developed viable solutions, such as online ordering, kiosks, and servers delivering orders to customers’ tables. In 2014, the company implemented innovative technology. By 2016, Panera had outperformed the industry by over 6 percent, reduced customer wait time to under 1 minute, and had online orders accounting for over 25 percent of sales (Jargon, 2017). The company’s critical thinking skills are also why Panera is known as “one of the most technologically savvy, best-performing chains” (Jargon, 2017, para. 4). Similarly, Kroger can utilize Kallet’s critical thinking framework to adopt modern technology, improve the shopping experience for consumers, and continue leading its turbulent industry.

Thinking Critically

Kroger operates 2,793 stores and serves nine million customers daily (Kroger Reaches, 2018). Using critical thinking provides organization for one's thoughts and others’ input when deciding a course of action toward one’s goals (Kallet, 2018). To follow Kallet’s framework, Kroger must first identify the problem or set a goal. In the last decade, Kroger has set several goals to remain competitive. The company wants to meet its consumers' demands, and Kroger’s customers want “multiple ways to shop” (Kroger Reaches, 2018, p. 1).  Additionally, the company intends to continue developing its Internet of Things technology to meet consumer needs, stay ahead of competitors, and proactively address evolving needs. The company aims to create a smooth transition between online and in-store shopping (Kroger Reaches, 2018). Kroger also wants to offer a more extensive selection of products in its stores and improve out-of-stock issues. So, how can Kroger reach those goals?

The next step of Kallet’s framework is to generate conclusions or solutions. Some previously proposed ideas include expanding its digital platform to include weekly ads, coupons, and recipes. Create ClickList stores where customers can place online orders for pickup at the store (Kroger Reaches, 2018). Inside the store, Kroger wants to integrate more technology such as cameras and infrared sensors to track traffic and schedule cashiers, interactive shelves that sync with the shopper’s cellphone for personalized product and pricing capability, and a computer program that can alert staff when assistance is needed at different food counters, a Scan, Bag, Go, system where shoppers can scan and bag groceries as they shop (Nash, 2017). Kroger can use space optimization and reconfigure its layouts and shelves to expand its product offerings. There are many possible solutions to help Kroger reach its goals.

The last step of Kallet’s framework is to decide which conclusions should be implemented and which ones should not. To satisfy the demand of its consumers and utilize technology, Kroger decided to invest in the ClickList store. ClickList allows customers to place orders online and pick them up from their local store. Kroger opened its first ClickList store in November of 2014 and, because of its success, expanded to a one-thousand ClickList stores by 2017 (Kroger Reaches, 2018; Kroger Co.-a, 2017). Analyst Andrew Wolf reported that ClickList was more popular than the company expected and increased Kroger's revenue while providing a successful platform for customers to place online orders (Springer, 2015). ClickList was a wise decision for the company that would prove even more successful with the social distancing implementation due to the 2020 COVID-19 pandemic.

Applying VUCA

            Nearly thirty years ago, teachers at the Army War College developed the acronym VUCA to describe the environment its students would experience; however, businesses have since adopted the term (Baran & Woznyi, 2020). Effective VUCA management involves leaders who know “what is going on internally and externally, early and often” (Baran & Woznyi, 2020, p. 2). To better understand VUCA, leaders can ask themselves about current trends, which areas of the industry or business are unpredictable, what can change quickly, and what resources are required to prepare for these changes (Baran & Woznyi, 2020). An ongoing  SWOT analysis can alert leaders to threats, weaknesses, and other factors that may impact the company and allow the business to prepare to face potential challenges. To understand the company’s VUCA, the company can analyze the company, market, and industry for trends and changes to define areas of unpredictability.

Kroger operates in a turbulent industry due to intense competition, ever-changing technology, and meeting complex consumer demands. The way that Kroger approaches VUCA, according to Kroger CEO Rodney McMullen, “We understand that today’s marketplace is shifting rapidly. Kroger’s success has always depended on our ability to proactively address changes by focusing relentlessly on our customers” (Kroger Co. - b, 2017, para 2). The company uses its strength in analytics and industry expertise to create online and in-store shopping experiences that consumers want. Kroger’s focus on meeting the needs of its customers also prepares the company for other unexpected changes that may occur. For example, in 2020, when COVID-19, social distancing guidelines were enforced, and the ClickList program and the addition of a home-delivery option on the app became an essential part of the shopping experience during the pandemic.

Conclusion

The business world is volatile, uncertain, complex, and ambiguous, and companies must navigate the turbulence to reach their goals. Critical thinking is essential when making decisions and planning for potential threats. Kallet provides a helpful framework for critical thinking, which, when applied, helps organizations consider different solutions and organize the decision-making process. Critical thinking assisted Panera and Kroger in developing different store service offerings. Panera applied critical thinking to the issue of customers' long wait times and lines. Using critical thinking, the company could locate the cause of the issue, compile several solutions, resolve the problem, and create substantial growth. Similarly, Kroger listened to customers’ needs, generated ideas, and eventually rolled out ClickList store pick-up. The program gained popularity faster than the company expected and prepared the company for the unexpected pandemic that shook many industries a few years later. Critical thinking helped both companies thrive in competitive, constantly changing markets.

References

 Baran, B. E., & Woznyj, H. M. (2021). Managing VUCA. Organizational Dynamics. 50(2), 100787–100787. https://doi.org/10.1016/j.orgdyn.2020.100787

Jargon, J. (2017, June 2). How Panera solved its "Mosh Pit" problem. Dow Jones and Company. https://www.proquest.com/docview/1905075667?accountid=27965&parentSessionId=62o%2BDyFOBtAUT9emKhnGBbWj7p6Wy32wNcYk1EMDU%2FE%3D&sourcetype=Wire%20Feeds

Kallet, M. (2014). Think smarter: Critical thinking to improve problem-solving and decision-making skills. Wiley & Sons. https://ebookcentral-proquest-com.library.capella.edu/lib/capella/detail.action?pq-origsite=primo&docID=1656382

Kroger Co. (a). (2017, December 18). Kroger announces 1,000^th ClickList store and introduces seamless shopping experience [Press release]. https://ir.kroger.com/news/news-details/2017/Kroger-Announces-1000th-ClickList-Store-and-Introduces-Seamless-Digital-Shopping-Experience/default.aspx

Kroger Co. (b). (2017, October 11). Kroger outlines plan to redefine the way America eats and to deliver value for customers and shareholders [Press release]. https://ir.kroger.com/files/doc_news/2017/10/1/Kroger-Outlines-Plan-to-Redefine-the-Way-America-Eats-and-to-Deliver-Value.pdf

Kroger reaches ClickList milestone. (2018). MMR, 35(1), 1. https://search-ebscohost-com.library.capella.edu/login.aspx?direct=true&db=bth&AN=127246263&site=ehost-live&scope=site

Nash, K. S. (2017, Feb 21). At Kroger, technology is changing the grocery-store shopping experience; Kroger CIO Chris Hjelm offers a glimpse at interactive grocery-store shelves and more. Wall Street Journal. http://library.capella.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Fnewspapers%2Fat-kroger-technology-is-changing-grocery-store%2Fdocview%2F1870122015%2Fse-2%3Faccountid%3D27965

Springer, J. (2015). Kroger's 'ClickList' improving e-commerce efficiency: Analyst. Supermarket News, http://library.capella.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Ftrade-journals%2Fkrogers-clicklist-improving-e-commerce-efficiency%2Fdocview%2F1692915922%2Fse-2%3Faccountid%3D27965