A right decision can lead to the path of success. In the same way, a bad decision may hit you the worst way. It is your decision that shapes your destiny. The most unfortunate thing is that we hardly know the decision we make will change our lives. These can either save you or destroy you. Here we are listing some of the biggest corporate mistakes in the business world.
It was in the 1985, the Coca-Cola took the biggest risk in its history. The company reformulated Coca-Cola by changing the classic taste of its drink. Unfortunately, consumers hated it and they were forced to withdraw it three months after release.
IBM asked Microsoft to make an Operating System and one of the missteps of IBM is that they allowed Microsoft to retain the rights of the software. The OS became the industrial standard and it now generates more than $200 million per year, thus making Microsoft one of the most successful companies in American business industry.
The DeLorean DMC-12 is a sports car manufactured for the American market by John DeLorean’s DeLorean Motor Company in 1981-82. John DeLorean’s Cocaine smuggling scandal hit the company badly and the car manufacturer went bust in 1982.
A major part of the group Bre-X in Canada, Bre-X Minerals Ltd got involved in a major gold mining scandal when it was reported to be sitting on an enormous gold deposit at Busang, Indonesia. The value of the stock soared high after the announcement. When the gold samples were found to be a fraud in 1997, it was collapsed.
This online pet store expanded too quickly but they were weak on fundamentals. It lost $147 million before folding up that year.
As a marketing strategy, Hoover offered free flight tickets to UK customers who purchase their products for more than £100. The flights cost more than the products and lost them $74m.
Gerald Ratner jokingly degenerated his company’s products by describing his company’s products as crap. The value of the company dropped by $750 million and within no time it collapsed.
News Corp now admits that buying MySpace was a big blunder. They bought it for $580 million in 2005. Unable to compete with Facebook, they were forced to sell it for just $35 million in 2011.
When it went bankrupt in 2001, Enron was the largest company ever to go bust. It has massive debt but was claiming annual earnings of $100 billion
Risky trading and high-level mismanagement led to the investment bank’s $600 billion collapse. It also led to the loss of 2 million jobs and caused in the biggest recession we have ever seen after the Great Depression.