Final answer:
Organizational inertia is a situation where a company resists change and adheres too strictly to traditional processes, potentially due to established bureaucracies and industry barriers to entry.
Step-by-step explanation:
A company that resists change and sticks to formalized business processes and structures is likely experiencing Organizational inertia. This term describes a situation where a business shows little flexibility on a day-to-day basis, maintains a large bureaucracy, and offers a lack of incentives to work hard or improve.
This resistance to change could be due to barriers to entry, such as legal, technological, or market forces that discourage or prevent potential competitors from entering the market. Moreover, established bureaucracies are often slow to evolve and adapt which can be problematic in today's fast-paced, problem-solving, and flexible work environment. Legacies of power structures and the McDonaldization of society also contribute to the persistence of organizational inertia.