¶ … Loops
Deckers Outdoor Corporation describes its business as being "a premier lifestyle marketer that builds niche brands into global market leaders by designing and marketing innovative, functional and fashion footwear" (Deckers 2011 Annual Report). Feedback loops were outlined as being an important component of the Burke-Litwin Causal Model (Falletta, 2008). A feedback loops is a set of elements that is self-reinforcing. There are basically two types of feedback loops, balancing and reinforcing (MindTools.com, 2012). This paper will analyze the feedback loops present in Deckers to identify the opportunities for organizational learning.
Balancing Feedback Loop
A balancing feedback loop is one where the elements in the loop exist in a state of equilibrium. When an element falls out of equilibrium, the other elements change to rebalance the organization. This restoration of balance happens no matter which element falls out of equilibrium or oven if the organization is moving to a new equilibrium point. Indeed, organizations tend to be constantly moving to new equilibrium points. Even with an organization that is growing rapidly, as Deckers is, there can be balancing loops. One such loop links design, satisfaction and demand.
Deckers relies on high quality of design in order to differentiate its products in the market and to attract business. When the level of design is high, the level of customer satisfaction is high, because the footwear not only looks good but performs well. When customer satisfaction is high, this keeps demand levels high. An equilibrium point is established therefore at a high level of quality, satisfaction and demand. This works for any firm in the industry. Cheap footwear companies tend to struggle to attract customers, because they have poor demand and that leads to poor satisfaction. In footwear, people tend to wear the best they can afford, not just for style but for functionality as well. Thus, this loop has a balancing effect, where if design slips so too will satisfaction and demand. Because demand is only loosely related to design, the loop settles into a new equilibrium at the new design level, rather...
Business Feedback Loops and Organizational Learning at Whole Foods Market To remain competitive and responsive to internal and external pressures, firm need to observe and monitor the outcomes of their activities (Mintzberg et al., 2011). Feedback loops explain the way in which processes may be maintained, or change takes place. In line with other businesses, Whole Food Markets cannot avoid the presence of feedback loops. When the feedback loops are recognized, they
System Feedback Loops Reinforcing Loop Reinforcing Loop reflects the ability of one action to produce an outcome that influences more of the similar action thus resulting into eventual growth or decline (Bellinger, 2004). Reinforcing loop represents one of the foundational structures in relation to systems of thinking. Virtuous Cycle is the ability of reinforcing loop structure to produce desirable result in the process of its application. In the incidence of desired result,
System Feedback Loops of Whole Foods Systems model use two basic feedback loops, so-called Balancing and Reinforcing loops, to illustrate the relationships between growth and goals. This paper identifies one Balancing Loop and one Reinforcing Loop that are critical to Whole Foods Market's performance and success. An explanation of each of these feedback loops, including the causal factors and how they affect each other, is followed by a discussion concerning an
In these cases, Whole Foods will encourage executives and staff members to work together in helping to enhance the quality of life for everyone inside the communities where various stores are located. This increases favorable perceptions and it allows the organization to build upon the image it has established. This shapes their global behavior, by showing the way Whole Foods is taking into account the needs of the environment,
Nutrisystems and Feedback Loops Company Background -- NutriSystems, Inc. was founded in 1972 and is headquartered in Pennsylvania. It is a commercial provider of weight-loss products and services, until 1999 offering brick-and-mortar weight-loss counseling and products and then moving to a direct to the consumer model through the Internet, mail order, and phone. Since 2001, the products have been featured on the QVC shopping network and most recently (2009) in Costco
The goal in this loop is to improve the perception. Thus, more innovations are required. However, there is not a clear-cut reinforcement mechanism, if only because the industry is highly competitive and many firms are viewed as innovators. The perception of being innovative in the smartphone industry is more of a hygiene factor than anything else -- you need to be an innovator to even be in the market
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