Being part of the business world means competing neck and neck with other companies. Designing and implementing strategies to run ahead in that competition is something every company must do as part of its survival and success. In that process, the heads of the companies have to make several decisions that affect their future. Some of these decisions, though at that time may seem to be sound, could be mistakes and have unpredictable consequences. So, here are some of the biggest mistakes that companies have made that eventually proved to lead to their downfall.
1. In 2008, United Airlines mishandled and broke musician Dave Carroll’s $3,500 guitar. After nine months of fruitless negotiations with the airlines, he wrote a song about his experience which went viral, causing a 10% drop in UAL’s stock price and a loss of $180 million within four weeks.
2. In 1982, Mars, Inc. refused the offer to include M&M’s in the movie E.T.: The Extra-Terrestrial. Its competitor Hershey was approached to include Reese’s Pieces, resulting in a 65% increase in its sales.