10 big mistakes by corporate that cost millions of dollars and thousands of labour
Decision making is an important process in any corporate. While making a decision both pros and cons must be well analysed. All policies and decisions may not give fruit. The company must be prepared to face both the positive and negative when it is implemented. Renowned companies are not exceptional from this. Some policies that were expected to create a huge profit have turned out to be a great loss. It not only created an unmanageable loss but also took many employees to the road.
10 such big slip-ups are listed below,
10. New Coke – The Coca-Cola changed the taste of its iconic drink in 1985. Coke lovers dint like the new taste and it was withdrawn within just three months from release.
9. IBM – Microsoft became monopoly for IBM’s software – IBM hired Microsoft to create an OS but its patent was left with Microsoft. The OS became a pioneer and ultimately Microsoft got benefited. Microsoft is worth over $200 billion today.
8. DeLorean Car Company – John DeLorean’s cocaine smuggling scandal rocked the struggling car manufacturer. They went bust in 1982.
7. Brex-X Minerals – Brex-X stock value soared after supposedly discovering a gold-rich mine. But the claims were proved false and which ruined the company.
6. Pets.com – This online pet store expanded too quickly and undercharged on shipping. It suffered from a loss of $ 147 million before folding in the year 2000.
5. Hoover’s Free Flights Fiasco – Hoover offered UK customers two free flight trips on purchases over $ 150. The trips cost them more than the products and faced a loss of $ 74M.
4. Ratner’s Jewellery Gaffe – Gerald Ratner once described his company’s products as cr*p. The comment wiped $ 750 million off the valuation of the business.
3. News Corp Buying MySpace – News Corp bought the MySpace for $ 580M in 2005. But they were unable to compete with Facebook. MySpace was then sold for just $ 35M in 2011.
2. Enron’s Accounting – When it went bankrupt in 2001, Enron was the largest company ever to go bust. It had massive debts but was claiming annual earnings for $ 100 billion.
1. Collapse of Lehman Brothers – Risky trading and high-level mismanagement led to the investment bank’s $ 600 billion collapse. It is said that it has indirectly made more than 2 million employees jobless.
If the key person had been more careful and team had full cooperation all the above blunders would have been avoided.