The Organic Foods Segment Of The Retail Grocery Industry

Every system is made up of millions of loops and the challenge is often determining which loops influence system behavior (Morecroft, 2007). The organic foods segment of the retail grocery industry conforms to this idea in a significant way. The factors that influence production, sales, and profitability in this segment are closely interlinked. Consequently, changes in just one of the critical factors can trigger changes in other factors, affecting the systems overall performance. This paper will identify and analyze one balancing loop, and one reinforcing loop for Whole Foods Market (WFM) systems that are critical to the company’s performance and success. Additionally, WFM’s organizational learning systems will be identified, and a recommendation for improving performance will be made. Reinforcing Loop A reinforcing loop, sometimes referred to as positive feedback loop, occurs when a change is duplicated, or reinvested, to promote that change in the future (Morecroft, 2007). An identified reinforcing loop for WFM is one that continually repeats itself and gains momentum, which ultimately translates into profits. This system can be described in five categories: production standards, quality assurance and marketing, consumer base growth and retention, increased sales revenue. Just like any other business, WFM’s core mission is to maintain profitability in order to continue business for stakeholders. The position of each of these critical factors in WFM reinforcingShow MoreRelatedThe Alignment Of Whole Foods Market1412 Words   |  6 PagesAn inputs analysis of the alignment of Whole Foods Market (WFM) with its overall strategy is crucial in evaluating the overall effectiveness of the company. In general, the inputs of any organization can be categorized into three broad categories. These categories are: environmental inputs, historical inputs, and resource inputs (Nadler Tushman, 1980). 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