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Balancing Loop/ Reinforcing Loop

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I am having problems understanding how to determine balancing feedback loop and a reinforcing feedback loop for Whole Foods Market. I don't understand how to explain the the Loop and the effect process of the loop and identifying the learning activities in each feedback loop that Whole Foods Market has already undertaken. Lastly, I need to identify the opportunities for organizational learning in each Feedback Loop and make a case that these are learning opportunities. Logically show how the feedback process provides an opportunity for the organization to learn and improve its performance at Whole Foods Market.

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This solution explains balancing loop and reinforcing loop at Whole Foods Market. The sources used are also included in the solution.

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A balancing loop at Whole Foods Market is one that counter's a change in the opposite direction. The harder the push, the harder the system pushes back. At Whole Foods Market we seek situations where there is a current state and the company is striving to reach a desired state. The desired state is the objective. For this, Whole Foods Market is taking an action. Let us take a current state at Whole Foods Market. The firm is facing formidable price competition from Wal-Mart, Kroger, and other retail chains. These chains have also started carrying organic, natural, and health food. The prices at these stores are lower than those in Whole Foods Market. Whole Foods Market is losing customers to large retail chains. This is the current state, the desired state or the goal for Whole Foods Market is to retain its customers and to attract more customers. To attain the desired state, Whole Foods Market has lowered its prices. However, to reach is goal of retaining customers or attracting new customers, Whole Foods Market has to undertake several activities. These are opportunities for learning in the organization. Whole Foods Market must change its perception from that of an expensive retailer to that of an affordable retailer. Whole Foods Market must learn how to change its perception. This can be done through communicating with its current customers as well as potential customers through the media, direct communication, or in-store communication. There are several learning opportunities in this balancing loop. To reach the desired state, Whole Foods Market must learn to source its products at lower prices. This means it must learn to search out and reach new sources. In addition, it must learn to negotiate better deals with suppliers.
The feedback process provides an opportunity to learn and improve the performance of Whole Foods Market. To begin with, the feedback process told Whole Foods Market that it was perceived to be a "Whole Paycheck" retailer. it lowered its ...

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