This company struggles to find it's identity and is lead by very inexperienced executives who lead more by emotion than actual principle of fact.
Much of the problems have been driven by 1 department marketing that continue to force the production of products that do not sell. It was lead by a manager who broke all of her own rules and then blamed all the problems on others outside of her department.
The importance to note of the later 2 statements is that there is a way to turn this thing around. Stop working off of emotion, find the facts, seek the truth, and engage your employees.
Small organization so you know everyone. Long timers generally want what's best for the company.
Favoritism, Poor Leadership, company without an identity