Top 10 Worst Executive Business Decisions


Complete Video Transcript

0:13last time your decision cost you millions that we know we have to live
0:18and learn sometimes to do so the cost of business debility and high profits is
0:22not quite the preferred method for the executives behind these 10 poor
0:27decisions we can assume that they’re gonna be real happy about reliving their
0:30blunders there are top 10 worst executive decisions list number ten
0:36murdoch murders myspace well that there is at least one thing that Rupert
0:40Murdoch really knows its social media right in 2005 Rupert Murdoch’s News
0:46Corporation purchased myspace for $580 and only six years later sold it for 35
0:53million dollars that’s a good business right there a way too many 3505 eighty
0:58who wrote this script credibility for this well what led to the fall of
1:05MySpace was a combination of heavy competition from Facebook and Murdoch’s
1:09ability to monetize the platform without alienating its users Facebook was
1:14running on an ad-free campaign allowing users a cleaner social networking
1:17experience murdoch went into myspace overconfident claiming it but do one
1:22billion dollars of revenue and 250 million dollars in profit instead of
1:27those astounding numbers former myspace co-founder Chris DeWolfe blames murdoch
1:31for squandering fifteen billion dollars of shareholder money
1:35number nine Kodak shrugs off digital if the history of Business Management shows
1:40anything it’s that a company that refuses to change with the times is
1:44likely to not be around for much longer in the case of Kodak the decision to
1:49continue manufacturing film while the world moved on to the digital age with a
1:53large factor in the inevitable bankruptcy protection it eventually had
1:57to file even if bill cosby invested his pops revenue checks into this fiasco
2:03could act would still have eventually went bank
2:06erupted to make up for the lack of sales on film Kodak turned to selling printers
2:10at a lower cost than its competitors as the market was already flooded with
2:14higher quality Canon Epson HP printers it was difficult to catch on eventually
2:19Kodak based facts and began a tremendous downsize until finally filing chapter
2:24eleven in 2012 number eight turning down the Beatles the Fab Four some had to
2:31start somewhere and while the world knows them for the superstars they are
2:35deka one song no potential of a group over fifty years ago
2:39photograph’s are on their way out ware is that were allegedly under to the
2:43auditioning group’s manager Brian Epstein before Dec up a step on a
2:46massive payoff after a 15 song said data sent the British group walking and while
2:52it may have seemed like a rash decision the group’s on manager at Parlophone
2:56George Martin said based on those demos he would have turned them down to dekha
3:01went on to sign the Rolling Stones years later but there’s a certain that comes
3:05with being the record label that turned down the Beatles and I’m sure there’s a
3:09world’s smallest violin joke here to be made but hey jude tomorrow never knows
3:14when Penny Lane and Eleanor Rigby will come together on Abbey Road number seven
3:19motorola’s delay on smartphones when the Razr phone came out it was all the rage
3:24Motorola had created a phone that people could not resist it was sleek stylish an
3:29extremely compact and having one made you feel and look like an elite yeah try
3:34to pass that look on today and you’ll be left back to the early two thousands
3:37honestly the few people who still tote pagers will have a chuckle or two at
3:42your expense by 2007 Motorola was offering their razor phone at a discount
3:47until 2010 when the company finally decided to release a new device but it
3:52was too little too late as the market had already been flooded with iPhones
3:56and Blackberries motorola’s delayed update their cellular device caused on
4:00ninety percent drop in shares from $107 to $13 over the course of three years
4:07number six Fox cells Star Wars merchandising rights while Fox Studios
4:12is doing fairly well for itself a decision was made nearly thirty years
4:16ago that essentially lost the studio billions of dollars you may have heard
4:21of a small amateur film called Star Wars a little nothing sci-fi adventure that
4:27spawned a film franchise comic books countless action figures and another
4:31peril to close the third world country all of the money made from the past
4:35assortment of merchandise could have gone straight to fox but the company
4:39instead handed the reins over to George Lucas the initial split of 60 40 per
4:43merchandising lasted two years until Lucas retained full rights of Star Wars
4:47merchandise but the old that has netted him over four billion dollars to date
4:52apparently Fox the quote I’ve got a bad feeling about this a little too
4:58number five Lehman Brothers you know the housing market is not something you want
5:02to take a gamble on on a whim it can rise and fall like the worst of roller
5:07coasters a lesson learned by Lehman Brothers Holdings incorporated Lehman
5:12Brothers was founded in 1850 by Henry any manual layman surviving a lengthy
5:16158 years until a series of bad business decisions
5:20forced the company to file chapter 11 bankruptcy protection in 2008 so what
5:25happened to Lehman by 2007 the company was borrowing $31 for every $1 in equity
5:31it had to purchase mortgage-backed commercial real estate when real estate
5:35was booming it seemed like a great plan to purchase and sell off real estate for
5:39profit as the recession hit and the market nearly crashed lehman felt the
5:43weight of their investments as properties became it possible to unload
5:47on and the housing market fell faster than Dorothy’s house did on the Wicked
5:52Witch of the East in the end
5:54Lehman collapsed unable to gain support to keep it up and running
5:57number for Coke’s new formula why did coca-cola decide to change the formula
6:02is used to make its popular soda the push was meant to breathe some life into
6:06the coca-cola brand in the United States but also doing coke drinkers into a
6:13nobody wanted the change and those devoted to the original flavor did what
6:17they could to stockpile the current brand new Cobra latest protest group
6:21surfaced across the country demanding that coca-cola return the beverage back
6:25to its original tastes like ass shaking can of coke people were ready to blow up
6:30at the scenes of the mouth signs that read we want the real thing and our
6:35children will never know refreshment were reportedly seen at a coca-cola
6:38event in Atlanta Georgia we like to call this period of time the greats of panic
6:43of 1985 never forget
6:47number three Carolyn davidson’s nike’s in 1971 Blue Ribbon Sports who have been
6:55importing Onitsuka Tiger Shoes approached Carolyn Davidson to create a
6:59design for what they wanted to be their own brand of running shoes with a half
7:03dozen attempts in tow
7:04Davidson brought the designs to BRS execs who chose the current Swoosh logo
7:08despite not letting it for services rendered
7:12david was offered $35 an offer she gladly accepted Nike currently brings in
7:17over two billion dollars a year some would say that Davis and got hosed but
7:22it’s okay three years after night he went public till night the co-founder of
7:27nike presented her with a diamond ring engraved with the iconic logo and a
7:31portion of nike stock check this one off as a happy ending
7:36number two blockbuster turns down at flicks and probably another five years
7:41or so if you go up to a young and and ask them their thoughts on blockbuster
7:45you’re likely to be met with a look of confusion as they matter the words
7:49Netflix’s own flag that I pronounced it right it can someone tell me what a
7:55flake as well in 2000 the popular movie and game rental store was approached by
8:01an online iteration of itself called Netflix at the time was living in the
8:06shadow of blockbusters 9,000 stores and knew that it could link up it would be
8:11guaranteed success
8:12blockbusters then CEO John and Iago turned down the fifty million dollar
8:17buy-out partially due to Netflix’s losses at the time
8:20I’m instead blockbuster sought out deals with Enron broadband services and
8:25circuit city
8:26ask someone from generations see where Circuit City is and they’ll probably say
8:33it somewhere that those guys from Star Trek were from today Netflix is worth
8:37over nineteen billion dollars once the current state of blockbuster you ask you
8:43may come across one of its or so remaining locations if you look hard
8:47number one declining the telephone what used this company may cut electrical toy
8:53these fatal words were written to Alexander Graham Bell who you may know
8:58is being credited with the invention of the telephone even though it was later
9:01found that Italian inventor Antonio Meucci actually invented it but we’ll
9:06save that topic for another day regardless
9:09those words were written by William orson president of a Western Union
9:13Telegraph Company in response to garner green hubbard’s proposal to sell the
9:17patent for Bell’s invention Robert had help with funding and thought Western
9:21Union would look to update their system to a more convenient mode of
9:25communication the patent was for sale for $100,000 which would have fared
9:30Gordon better than the millions he spent trying to build his own telephone
9:34network today
9:35Western Union approximately seven hundred and ninety eight million dollars
9:39a number that could be far greater had ordon taken Hubbard up on his offer
9:44have you ever made in a poor decisions that could have changed your life
9:48share your tale of woe in our comments section below and remember to like share
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