Whole Foods Market Feedback Loop

free essayThe feedback loop and organizational learning opportunities are based on the fact that all elements and activities of businesses are placed in such a way that they result in a cause and effect situation. All the activities of organizations are dependent on each other and thus there is no business activity that can be carried out separately. Businesses are able to learn more by understanding that all elements and activities have an impact on other activities and this eventually affects decision making. Whole Foods Market has developed a comprehensive feedback loop that helps the company to gather important information through learning from a wide range of stakeholders.

Feedback has become a major strategy that organizations use to achieve their business objectives. As argued by Harris and Levine (2005), the feedback loops in organizations illustrate the interdependence of various activities focusing on causal relationship that exists between various activities or elements. An understanding of how certain behaviors impact organizations requires the assessment of feedback loop existing within the firm. Whole Foods Market feedback loop consists of both the reinforcing feedback loop and balancing feedback loop.

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The Reinforcing Loop

The reinforcing feedback loop is the one that can either generate the potential growth or collapse and such growth and collapse normally continue at the ever increasing rate (Greve, 2003). In the Whole Foods Market situation, the reinforcing loop is indicated by various elements in the company. The company’s potential growth in the market depends on a number of factors. The major contributing factor for the company’s growth is considered to be its high quality of products, excellent customer service, effective marketing strategies, and strong brand reputation. These set of elements are important in terms of driving the company towards growth within the market. For example, effective marketing strategies increase the number of sales and this eventually improves its revenues and profitability. The company also provides excellent customer service that is the key to customer’s loyalty. It also strives to improve its sales as the majority of the customers are attracted to its products. The major contributing factors in the reinforcement of the feedback loop of the organization are considered to be customer service, quality of products, marketing strategies and brand reputation. These factors are important determinants of the organization’s sales. Another important element for the reinforcement of the loop of the organizations is the employee motivation. The motivation of employees ensures that there is an increase in productivity to meet the demands of the customers.

The Balancing Loop

The balancing loop in an organizational setting attempts to shift certain elements to a desired position or state. The balancing loop allows organizations to accomplish the set objectives by defining the goals and reinforcing a desire to achieve them (Greve, 2003). It is the established goals and objectives of organizations that drive employees towards achievement of the specified goals. According to Hall, Paradice, and Courtney (2001), balancing loop represents a situation where there is an objective or a goal that should be achieved by an organization, while certain actions and steps should be undertaken to help achieve the objectives or goals. When organizations establish certain goals, the employees normally work harder to achieve the specified objectives.

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In Whole Foods Markets, the balancing loop is manifested through the attempts of the organization to achieve its established goals and objectives. There are various balancing loops that are established by the company. The major balancing loop involves being a leader in food retail market. This goal makes the company work had so as to achieve its target of being the leader in the food retail market. It is possible to achieve this objective only if the organization puts in place appropriate measures and strategies. The measures that are taken by the organizations to realize their objective of becoming the leader in the market form the basis of their business strategy. Increase of the market share is one of the ways in which a company can become a market leader. The company needs to increase its market share both in the domestic and international markets in order to become the leading organization in the food retail industry.

In an attempt to become a market leader, Whole Foods Market has developed various effective strategies such as staff motivation programs, increased production, the satisfaction of the customer needs and increase of its market share. Once the organization realizes its objective of becoming the market leader, it will no longer have the incentive to increase its production rates or its market share. This means that becoming a market leader will act as a balancing loop for the organization.

Generation of Organizational Learning

Organizational learning refers to the process through which companies create, retain and transfer information and knowledge. Learning in organizations leads to a kind of experience that eventually can help an organization to improve its performance in the market (Garcia, Calantone, & Levine, 2003). Furthermore, gaining experience can facilitate the creation of knowledge in a firm. The experience and knowledge gained by an organization in the business environment are important for enhancing the production efficiency.


Organizational learning can be achieved through the feedback that organizations receive from its stakeholders. The feedback loops within organizations are important for the generation of learning opportunities (Le, Seidl, & Scholz, 2012). The feedback of loop of Whole Food Market is important for generating learning opportunities. The feedback loop is constantly assessed by the organizations to determine their cause and effect. In Whole Foods Market, the management has an elaborate monitoring program through which they evaluate various processes and activities that contribute to their competitiveness in the market.

One of the ways in which the organizations generate learning in its operation is through assessment of the level of customer satisfaction. Customer satisfaction can help the company to determine whether it meets the demand in the market. High sales of the organization’s products can imply that the quality of products is high. This basically informs the company that their products satisfy the needs, tastes and preferences of the customers.

The organizations can also monitor their sales trend in various markets where their food stores are located. Monitoring of the sales in these regions can help the company to determine whether it meets the demand of the customers in the market (Argyris, 2015). Low sales can mean that the company does not meet the needs of the customers and thus requires some effective strategies such as developing of more superior products and ensuring high levels of customer service.

The level of motivation of employees is also another area from which the organizations can generate some learning opportunities. Basically, employees who are not motivated will demonstrate low performance and this will reduce the production output of the company. Managers should be able to obtain the feedback from employees regarding other important factors that affect the operations of the company. Since the employees interact with the customers on regular basis, they can be a source of important information that concerns the needs of the customers in the market.

Whole Foods Market can also go ahead and generate learning opportunities using different techniques. One of the techniques that can be used by the company to generate learning opportunities is through interaction with its customers and other stakeholders through social media avenues. The increasing use of technology in the marketing has proved effective for organizations. Many organizations have developed appropriate online avenues through which they are able to interact with their stakeholders such as customers, suppliers and employees. In such avenues customers can provide both suggestions regarding the level of satisfaction or various complaints.

Whole Foods Market can use online avenues to generate information such as customer’s complaints, tastes and preferences. This information can then be used by the company to devise and develop products that will best meet the needs of the customers. Such feedback can inform Whole Food Market on the areas that need improvement, its major weaknesses and strengths.

Conclusion

Feedback loops in organizations are considered to be important since they help to enhance learning opportunities in every business enterprise. This can be achieved with the help of the transfer of knowledge from one member of the organization to the other members of the same organization. In the feedback loops, the stakeholders of the organizations often communicate with each other and share knowledge and information that can help improve the performance. Feedback loops also provide various updated information while the members of the organization help to identify the opportunities as well as the needs of the organization. In the Whole Foods Market feedback loop has been extensively used as a major strategy to help enhance its performance. In the company, both the reinforcing feedback loop and balancing feedback loop are evident in its business activities and operations. The reinforcing loop is seen as a major factor that facilitates the growth of the company in the market while the balancing loop is seen as a major factor that motivates the company to accomplish its objectives.