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Feedback loops in Starbucks

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This question has to do with feedback loops in your organization.

Try to identify at least one balancing feedback loop and one reinforcing feedback loop. The ultimate goal of this assignment is to answer the following questions:

1. Describe at least two feedback loops in your organization and explain why you selected them.
2. What are the effects of these feedback loops on organizational effectiveness over the short and long term?
3. What changes in strategy or operations would you recommend in light of your analysis?

See:

Larsen, K., McInerney, C., Nyquist, C., Santos, A., & Silsbee, D. (1996) Learning Organizations (Part VI: Systems Thinking) Retrieved from http://home.nycap.rr.com/klarsen/learnorg/

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The response addresses the queries posted in 1310 words with references.

//As per the instruction of this assignment, firstly, it is necessary to describe a general overview of the feedback loops. After understanding this, it is essential to select the feedback loop of the company to analyze its position and impact of these feedback loops in the performance of the organization. //

Feedback Loops

Reinforcing Feedback- It is a positive or amplifying feedback. Reinforcing feedback in Starbucks can be exemplified by Starbucks Snapshot and sharing customer ideas through My Starbuck Idea.

Starbucks Snapshot-

The Snapshot is a systematic catalogue of the store and is able to delight the customer. There are four objective categories noted in a Snapshot: service, product quality, cleanliness, and speed of service. Customer Snapshot at Starbucks is a performance measure designed to evaluate the customer's views about the service it deliver and to what extent measuring those items that create enthusiastically satisfied customers supports their Mission Statement.

The visitor evaluates the cleanliness of the store and the speed of service. The Snapshot includes comments frequently collected through the conversation with customers, regarding their experience at the store. Feedback loops like Starbucks's Snapshots are crucial when the organization judge their employee productivity not only in terms of sales and dollars but also in terms of satisfied customers.

Sharing of customer ideas-

Starbuck is an organization that invites their customers to notify them about the things they are doing right and the things customers like to see more in future. This is a classic positive feedback loop, in which positive behavior is rewarded with even more positive behavior.

Starbucks invites innovative or simple ideas of customers and the most effective ones are worked upon. Through the site called My Starbucks idea, customers can share their ideas and vote the already placed ideas by others.

These two reinforcing feedbacks have been selected because they exemplifies that the innovative change in services of Starbucks has strengthened its position among the competitors.

//Now, as per the instructions, there is a need to understand the importance of these feedback loops and their effects on the ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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