A Large Restaurant Chain Notices That Many Bad Decisions Have

question 105

Essay

A large restaurant chain notices that many bad decisions have been made. For example, various restaurants are complaining about their lack of freedom to tailor menus to local tastes. The corporate marketing vice president insists on making all decisions. The company also expanded into Mexico, where it has done poorly, but the company refuses to exit. What are some reasons for these bad decisions, and what can the company do to improve organizational learning?

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Definitions:

Social-Responsibility Norm

A societal rule that people should help those who need assistance, even if doing so is costly.

Social Exchange Theory

A theory suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.

Equity

The concept of fairness or justice in situations, ensuring everyone has equal access to resources and opportunities.

Reciprocity

A social norm that involves exchanging goods, services, favors, or other forms of value in a mutual manner.