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A Large Restaurant Chain Notices That Many Bad Decisions Have

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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?


Definitions:

Manufacturing Overhead Applied

The allocation of manufacturing overhead costs to individual units of product based on a predetermined rate or method.

Work in Process Inventory

Work in Process Inventory consists of materials and products that are in the process of being manufactured but are not yet complete.

Work in Process

The portion of inventory that is in the production process but has not yet been completed.

Finished Goods

Goods that are fully manufactured and available for sale to buyers.

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