A restaurant is experiencing declining sales. It determines that the reason is that it has a formal dress code, such as a coat and tie policy for customers. Because they determine that the restaurant market in their domain prefers a more casual dress code, they eliminate the policy. This is an example of ________.

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Quizplus · Accepted Answer

This scenario is an example of isomorphism, which is the process of organizations adopting similar structures and practices in response to their environment. In this case, the restaurant recognized that their formal dress code was not aligned with the preferences of the restaurant market in their area, so they made a change to become more similar to their environment. Natural selection involves the process of organizations adapting and evolving based on their performance and the competitive environment, growth through direction refers to intentional efforts to increase an organization's size and influence, and faulty action implies an incorrect decision or mistake made within the organization.

A Restaurant Is Experiencing Declining Sales