Yeah, that's pretty awful but corporations like that don't live long if they have a dynamic and efficient competitor who knows what they're doing. Every single aspect of the business from logistics to customer service will be noticeably superior in the other company and customers, the lifeblood of any business, will always move in that direction.Won't mention the name of my company but I see the loss of productivity and increase in support costs every day. I shake my head at some of the insanely old computers we still have running. Most of the employees could get far more work done on a new lower end machine with dual monitors and an ssd, and save the company more money in a month than they would spend in the new equipment. Try explaining that to a manager who can barely operate a computer though and their eyes glaze over. The incompetence in management in these large corporations is maddening.
Customers don't want apologies or excuses, they want results and the kind of management that you describe generates a lot more of the former and a lot less of the latter. Sooner or later, it will cause the company to go bankrupt.