System feedback loops and their effects on organizational performance

System Feedback Loops

Over the last several years, Whole Foods has built its reputation based upon quality and the overall products they are offering to consumers. This has helped the company to create a unique image which enables them to standout against competitors. To fully understand how they were able to achieve these larger objectives requires focusing on: balancing and reinforcing loops inside the organization. At which point, there will be an examination of how this has helped the company to generate organizational learning and the way they can improve in these areas. Together, these elements will highlight the strengths, weaknesses and the way the company is able to continually reach out to a variety of stakeholders.

Identify One Reinforcing Loop and One Balancing Loop.

A reinforcing loop is designed to objectively determine if the strategy a firm is using contributes to growth or hurts their underlying profit margins. This is based upon the approach managers are utilizing, in order to allow the firm to standout against competitors and create a larger following among customers. In the case of Whole Foods, these changes are occurring through the rapid expansion of demand for naturally grown products. This means that consumers are focused on the growing practices of farmers. At the same time, they want meats which are not utilizing steroids or feed with corn-based derivatives. These factors have helped the company to standout and offer everyone with something more. ("Feedback Loops," 2012) ("Whole Foods Market History," 2013)

The way company has been achieving these objectives is through mergers and acquisitions. Utilizing this approach, managers are able to purchase firms which can help to improve their ability to meet the demands of consumers. Evidence of this can be seen with the kinds of organizations they have acquired since 1980. The most notable include: Wellspring Grocery, Bread & Circus, Fresh Fields, Bread of Life, Merchant of Vino, Allegro Coffee, Nature's Heartland, Harry's Farmers Market, Select Fish, Fresh & Wild and Wild Oats Markets. These divisions have helped Whole Foods to reach out to a larger segment of consumers. That wants products which are more natural and healthier for them. ("Whole Foods Market History," 2013)

The balancing loop is seeking out stability on a given level. This means that companies will examine the response of consumers and how this is impacting the kinds of products / services they are delivering. As far as Whole Foods is concerned, they are concentrating on the way clients perceive the firm, the practices they are utilizing and their image inside the community. To support these objectives, the company will add to the overall products they are providing. ("Feedback Loops," 2012) ("Whole Foods Market History," 2013)

At the same time, they are utilizing procedures that will benefit the entire community. This is achieved through focusing on corporate social responsibility. 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, specific regions and the people who live there. ("Feedback Loops," 2012) ("Whole Foods Market History," 2013)

These elements are important, in illustrating how the different loops are building off each other. This helps the firm to establish basic procedures for improving their reputation and offering customers with more. The way they affect each other, is one practice will influence the perceptions of clients and if they choose to shop at different locations. ("Feedback Loops," 2012) ("Whole Foods Market History," 2013)

Identify how Whole Foods Market has generated organizational learning.

The way that Whole Foods has generated organizational learning is through teaching staff members the importance of public service. At the same time, there is an emphasis on locating organizations, which will help the company to grow and meet the long-term objectives of shareholders in the process. This has created organizational learning by: teaching executives, managers and customers how the company earns its profits. While concentrating; on improving their ability to meet the needs of various segments. ("Green Mission," 2012)

How they can go further and generate additional organizational learning.