DQ #2 The Challenge of Analyzing the Internal Organization

The rule is this:  Never reinforce failure. In other words, don't throw good money after bad. Don't waste more lives on an operation that has already failed. It's almost impossible to make a bad plan succeed by throwing more resources at it; the result is almost always to make a failure larger. We have seen this in many of our military operations;  the Russians learned it in Afghanistan and we somehow are blind to the lessons they learned in our current operations against the Taliban.   Business decisions are not much different than military operations and CEOs often get so enamored with Plan A that they cannot see that A will drag their firm into a bottomless pit and quagmire. 

Why do you feel some organizations or leaders will hold on to a product line or an idea well after they/it received an F on their "report card"?