Running a successful multi-million or billon dollar business is no easy task. It takes an endless well of blood, sweat and tears. The The key to staying powerful as a company is staying innovative and ahead of the curve. Business in all fields morph at a record pace, so you have to think big or go home. Often that BIG thought and plan is lucrative and life-changing for the better and sometimes.... its a disaster and it crumbles a dynasty.
Redditor u/RusherTheBFDIFan wanted to discuss some wrong decisions made by corporations by asking...Photo by Michal Matlon on Unsplash
The Ratner
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British businessman Gerald Ratner was the CEO of powerful jewelry company Ratners.
In 1991 he gave a speech to a business forum in which he explained how his company was able to sell its products at such a low price. His words were "because it's total crap." The remarks were televised and widely publicized. Overnight, Ratners lost about £500million of its company value, was forced to rebrand (it's now called Signet) and Ratner was made to resign.
Such a blunder has now entered the English lexicon as "doing a Ratners."
Think about that....
There was a weight loss product called AIDS. When the AIDS disease emerged, they decided not to change the name of the product so as not to compromise its identity. Who would have thought that people no longer wanted to buy AIDS, despite all the success that AIDS has in losing weight?
The Balmer Bomb
Steve Ballmer didn't take the smartphone seriously, laughed at the first iPhone, and Microsoft has basically become an enterprise services company because of it. A hugely successful one, but that was a huge miss and it cost him his job.
Oh he chose to retire? No. He was gently shown the door.
Sounds like....
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Pepsi had a contest in the 1980s where the bottle caps had letters on the underside, and if you spelled your own last name, you won. Of course, the vowels were very rare.
But they forgot about Vietnamese people named "Ng," along with similar Eastern European names. Oops.
Video Down
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Blockbuster basically telling Netflix to go screw itself.
They absolutely would have f**ked up Netflix. They would have screwed up Redbox if they actually gone through with that purchase, too.
Why would Blockbuster start mailing you videos? It would have made no sense to anyone in that company when there's a Blockbuster within rock-throwing distance of everyone's front porch. They would have never seen the value in the mail-to-home DVD.
Maybe... MAYBE, they use Redbox as a drop-off, but a large portion of their business depended on you going in, dropping off a video, browsing the shelves, and buying overpriced popcorn with your DVD rental.
When its too free
McDonald's had a contest where you collected game pieces and if the US won a medal in the Olympic sport on your game piece, you won a prize. I think it was something like:
Bronze = free medium soft drink Silver = free regular size fries Gold = free Big Mac
Russia and East Germany boycotted the Olympics. This was when Russia hadn't split into different countries and they were by far the biggest US rival. It was also when testing for performance enhancing drugs was very unsophisticated... so Russian athletes often had big advantages.
McDonald's gave away a lot more free food than they anticipated.
Just looked it up. Yep.
The Redesign
I worked for a Sprint/Nextel dealer in the 2000s. We actually had a couple phones with a Microsoft OS. Think of your Windows desktop with the start button in the lower left. Now imagine that in a flip phone with a tiny screen. It was a pain to use, just a ridiculous design. We sold very few.
Microsoft did a complete redesign with their Windows 7 phones, released in 2010. It was a good design, and a good product, but iPhones and Androids had been around for 3 and 2 years respectively, and the Windows 7 phones were left in the dust.
Similarly, I remember all these teenage girls abandoning their Blackberries when the iPhones and Androids became available.
$500,000,000? Is that all?
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Rupert Murdoch's News Corp. bought MySpace for $580 million in 2005, saw its value rise to over $12B as it became the biggest social media platform by 2008, but then didn't adapt the company to the changing social media landscape that came to be dominated by Facebook and Twitter, and wound up selling it to online ad network Specific Media for $35 million in 2011, a loss of over $500 million (or $11+ billion if you count the company value at it highest point.)
Osbourne Pro....
The Osbourne 1 was the first portable computer, they announced the Osbourne 2 before they'd made a profit on the Osbourne 1, people stopped buying the Osbourne 1 in anticipation of the Osbourne 2 as a result of this there never was an Osbourne 2. The official economic term for announcing a product too early and killing sales (and therefore profits) is called the Osbourne effect because of this. Now that's how to Munson like a pro.
Bad Eddie
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Sears hiring Eddie Lambert as their CEO. Very long story, but the short is that he used Sears Holdings as his own personal hedge fund, having no desire to actually keep Sears/Kmart profitable, and knowingly and willingly allowed these companies; long established American institutions, to completely go under.
Days of Hoover
British vacuum manufacturer Hoover ran a promotion in the 90s to try and sell off old stock; buy a cheap vacuum, get return flights to the US. They tried to make it difficult to claim the free flights, with some pretty dirty tactics designed to reduce the likelihood of a successful claim on the promotion.
It did not end well, with the company completely misunderstanding of how far a British person will go to get something for, essentially, nothing.
Pics of the Future
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Kodak owned digital photography but couldn't break the addiction to film revenue to pursue it. I worked with a senior executive who was forced into retirement because he wouldn't shut up about digital being the future.
Diggs....
Back in like 2009, Digg.com was the go-to link aggregation website on the internet.
But they revamped their site using a new algorithm that focused on following "power users" instead of just following topics and the users hated it. I'm assuming it also made it much easier to inject sneaky ad content into the feed.
So everyone migrated to Digg's smaller rival, Reddit (which was mostly tech-focused at the time). Reddit exploded after that, and I don't think anyone uses Digg anymore. All because they fucked with their algorithm.
Oh Dell
Dell. Michael Dell didn't think smartphones were a good idea. Then he saw how prevalent they were becoming. Dell then released a Windows 7 phone. Someone else manufactured it and Dell put their logo on it. It was absolute junk and the only carrier Dell could get to sell it was T-Mobile. After sales completely flopped, the phone was discontinued and no longer sold.
Rumor is that Dell had ordered almost 7 figures worth of the phones in anticipation of big sales. All of the discontinued inventory went into the shredder and was recycled. Dell took a big tax write-off and pretended like it never happened.
Naughty No
Tumblr taking away naughty/NSFW content. If you create a site where people can be themselves, why would you block that?
The ironic thing is part of why they banned porn was likely so they could be more appealing for a potential buyout. I'm sure they anticipated some blowback when they did it but couldn't have imagined the mass exodus it resulted in.
Patty Cakes
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Hardee's in Australia got caught using dog food in their meat patties back in the 1970s and were forced to close all restaurants and exit the country as a result.
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Around 2008/2009, while the economy was tanking, HP decided to cut the salaries of all it's employees by 15%. Makes sense, right?
Nope.
The government contracting business was booming in the Washington DC area and was one of their few profitable divisions. They lost 40% of their cleared employees before they sent a VP from California to figure out what was going on. They still haven't recovered from that debacle.
The Bottom Line
Shlitz beer decided to cheap out on their product which caused it to have weird slug like growths in the can. They soon folded because no one would drink their product again.
That's what happens when you start caring about the bottom line more than the quality of the product. An interesting article about it, pop up to sign up for their mailing letter is a bit much though
I first learned about it in a business class at my junior college, never actually had the product.
The PC World
When IBM decided to get into PCs they didn't really take it seriously. They always thought that mainframes were always going to rule the day. So, they rushed to get the chips and the OS in deals with Intel and Microsoft. Contrary to deals with previous suppliers IBM did not demand exclusivity from Intel and MS. This let Intel and MS sell their IP to whomever they chose. IBM could have owned personal computing but instead the IBM clones outperformed IBM PCs and IBM is a shadow of their former clout in computing.
Pasty
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Colgate, the toothpaste and toothbrush company, tried making tv dinners in the eighties.
The old wives' tales.
They are the stories of legend.
I think we all need a big DEEP Google dive though.
Where did they originate?
WHO ARE THE OLD WIVES!
You don't hear about them as much anymore.
It's like science and logic are suddenly a thing.
But they sure are a good way to keep your kids and their behavior in line.
Redditor the_spring_goddess wanted to discuss the tall tales we've all been fed through life, so they asked:
"What is an old wives tale that people still believe?"
"Wait an hour to swim after eating."
What a crock!
So many summer hours wasted.
I want revenge for that one.
Say Nothing
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"An undercover cop has to tell you he's a cop if you ask him."
LonelyMail5115
"Pretty much most advice when it comes to cops are old wives tales. I’m not even a cop but most of the advice you hear is pretty off."
I_AM_AN_A**HOLE_AMA
Say Something
"That you have to wait 24 hours to report someone missing."
Severe_Airport1426
"I really think this one is important and should be the top regardless. As it’s a piece of advice that needs to be relearned and the only way to do that is through awareness."
crappycurtains
"This used to be true. I think they changed it after some guy named Brandon went missing back in the '80s or '70s. You used to have to wait 24 hours if the missing person was an adult because they had 'a right to be missing' and then everyone realized that was stupid and stopped doing it."
AlbinoShavedGorilla
Body Temps
"That drinking ice cold water after eating oily foods will solidify the oil and permanently remain in your body. I informed my coworker that if your body temperature ever reached that point, you’d have bigger problems than weight gain."
chriseo22
"Oh, I have a cousin who 100% believed this. One of those guys who believed every early 2000s internet rumor and old wives tale. One night I chugged a big glass of ice water after dinner and he started freaking out and saying my guts were gonna harden."
"I sarcastically told him to drive me to the hospital if that happened. Obviously, nothing happened and the next morning I said something like 'Thanks for being on standby in case my guts filled with hardened oil.' He just walked off muttering under his breath."
apocalypticradish
Arms Down
"When I was pregnant, I was told by young and old alike that I should NOT raise my arms above my head or exert myself in such a manner because it could cause cord strangulation to my unborn sons and daughters."
Fatmouse84
10 Years Actually
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"Chewing gum stays in your stomach for 7 years."
"I remember accidentally swallowing a piece of gum when I was a kid in like 1995 and just accepting my fate like welp, gonna have this in my stomach til high school I guess."
Gecko-911
I was so afraid to sallow my gum when I was young.
This tale is haunting.
High/Low
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"You can tell the sex of the baby by how you carry."
LeastFormal9366
"Pregnancy certainly wins awards for the most old wives tales. So much absolute BS was repeated to us by everyone we talked to."
IllIIIlIllIlIIlIllI
The Cursed
"If you’re a woman and you wear opal jewelry but opal is not your birthstone (October), you’ll never be able to have children, or will be widowed, or just generally have bad luck or something. You can counteract this by having a diamond in the same piece of jewelry as the opal, though."
"I have a nice opal ring that my parents gave me years ago, and I’ve had other women give me this 'advice' unprompted more than once when I’ve worn it. I have absolutely no idea where it started, but I’m pretty sure this little chunk of silicate rock has no concept of what month I was born in, let alone of how my reproductive organs work."
SmoreOfBabylon
Stay In
"Going outside with wet hair will make you get pneumonia. Or an earache. Or maybe arthritis. Depends on which old wife you listen to."
"Jokes on them - I haven't blow-dried my hair in decades and usually leave the house with wet hair in the morning. On winter mornings, the tips of my hair get frozen. No ear infections or pneumonia or arthritis yet."
worldbound0514
Dreams and Facts
"You never make anyone up in your dreams you've seen everyone in your dreams somewhere else before and never make anyone up entirely."
"How would you possibly prove that to be true? My partner adamantly believes this and tells me this 'fact' whenever I have a dream about someone I've never met before."
mattshonestreddit
"My late wife used to tell me that before she met me she would have dreams of standing at an alter on her wedding day but could never see the guy's face, no matter how hard she tried. After meeting me the face was filled in with mine. Don't know if it's true but one of those things I like thinking of every now and then when I miss her."
Darthdemented
Cracked
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"Some people still believe cracking knuckles causes arthritis."
Choice-Grapefruit-44
"There's a doctor (Donald Unger) that cracked his knuckles a couple of times a day for 60 years, but only on one hand, just to prove it. Both hands remained exactly the same."
MacyTmcterry
I love my knuckles.
Do you have any tall tales to add to the list? Let us know in the comments below.
