Tons and tons of organizations. It's extremely common. It makes more sense when you consider that companies mostly don't experience market effects internally,

Tons and tons of organizations. It's extremely common. It makes more sense when you consider that companies mostly don't experience market effects internally, but operate much more like the Soviet Union, and that, especially for very large companies, the effects of external competition are rather less than ideally efficient, to put it mildly. Throw in a heaping spoonful of principal-agent problems up and down every organization, the fact that information is very far from perfectly available and distributed to managers, and more than a little good ol' incompetence, and it'd be weird if it wasn't common.