Describe the various situations under which culture acts as a liability

What will be an ideal response?

The various situations under which culture acts as a liability are:
a) Institutionalization: When an organization undergoes institutionalization and becomes institutionalized—that is, it is valued for itself and not for the goods or services it produces—it takes on a life of its own, apart from its founders or members. It doesn't go out of business even if its original goals are no longer relevant. Acceptable modes of behavior become largely self-evident to members, and although this isn't entirely negative, it does mean behaviors and habits that should be questioned and analyzed become taken for granted, which can stifle innovation and make maintaining the organization's culture an end in itself.
b) Barriers to change: Culture is a liability when the shared values are not in agreement with those that further the organization's effectiveness. This is most likely when an organization's environment is undergoing rapid change and its entrenched culture may no longer be appropriate.
c) Barriers to diversity: By limiting the range of acceptable values and styles, strong cultures put considerable pressure on employees to conform.
d) Barriers to acquisitions and mergers: Historically, when management looked at acquisition or merger decisions, the key factors were financial advantage and product synergy. In recent years, cultural compatibility has become the primary concern.