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 area of growth for the Reinforcing Loop and goal behavior for the Balancing Loop. An assessment concerning how Whole Foods Market has generated organizational learning and how this organization can go further and generate additional organizational learning is followed by a summary of the research and important findings in the conclusion.
Review and Discussion
Balancing and Reinforcing Loops at Whole Foods Markets
All systems thinking models use two basic feedback loops, Balancing and Reinforcing loops, to depict the relationships between the constituent elements (Baker, 2006). According to Baker, a reinforcing loop "describes systems where elements reinforce one another, creating either a virtuous or a vicious cycle" (p. 26). In reinforcing loops, there is exponential growth involved that is analogous to a "snowball rolling down a hill" (which is the symbol used) that gathers more and more snow and momentum in the process (Baker). Eventually though, reinforcing loops tend to decay because they "have inherent limits to growth, usually because one of the elements interacts with another loop to eventually slow growth" (Baker, p. 27). The second basic feedback loop, the "balancing loop," describes efforts to solve a problem or facilitate the achievement of desired state from an existing state (Baker, 2006). A balancing and reinforcing loop for Whole Foods are as follows:
A Balancing Loop at Whole Foods is the focus on marketing only wholesome, organically grown products that are superior in nutritional content.
A Reinforcing Loop at Whole Foods is the manner in which the company continues to educate its employees and customers concerning the superiority of its products in an effort to enlist them as advocates and sales representatives.
How Whole Foods Market has Generated Organizational Learning
A learning organization is defined by Goh (1999) as "an organization skilled at creating, acquiring and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights" (p. 15). An important point made by Goh is...
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,
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
Whole Foods Market Which Organizational Diagnosis Model Is Best to Use at Whole Foods Market Open Systems Theory Weisbord's Six-Box Model McKinsey 7S Framework Likert System Analysis (1967) High-Performance Programming Nadler-Tushman Congruence Model Methods to use this Tool Analyze each key element separately People Recognize the people that can help to get the work done and help in accomplishing the goals of the organization Organizational Structure Culture Analyze how these Elements Interrelate in the Organization Plan to Create and Maintain Congruence Issues of Whole Foods Market Poor
Business Management Feedback Loops at Whole Foods Market In any business there will be the presence of feedback loops. Effective businesses are likely to pay attention to the different feedback loops which exist, using them loops to support and enhance the businesses in achieving its' goals. Whole Foods Market has a number of different types of feedback loops, looking at the firm in more detail will allow the loops to be identified.
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