Inexperienced management team that has done a poor job honestly assessing the organization's strengths and weaknesses. Often this inexperience manifests itself as micromanagement and public reprimands, an apparent attempt to validate their position of authority. Many employees find it difficult to work in this environment.
A corporate strategy that's all over the map and completely disconnected from the organization's core competencies.
Rather than address issues rationally, senior management will use the threats of lawsuits and other punitive actions to manage their B2B and employee challenges.