Seven Blunders of the Business World: Learn From The All-Time Biggest Mistakes

We all learn by our mistakes. However, in business, it’s less costly to let somebody else make it. With that in mind, let’s see what we can learn from the Seven Blunders of the Business World.

BLUNDER # 1

NEW COKE VS. OLD COKE

In response to blind taste testing against Pepsi, a new formula for Coke was introduced. Loyal Coke drinkers immediately stormed the battlements and demanded the return of their favorite. The Coca-Cola Company quickly put “Classic Coke” back on the shelves.

LESSON LEARNED

Never underestimate customer loyalty. It’s what truly drives your business.

BLUNDER # 2

DECCA RECORDS TURNS DOWN THE BEATLES

Dick Rowe, new talent executive at Decca Records, told Beatles manager Brian Epstein that “Groups are out; four-piece groups with guitars particularly are finished.” The Beatles would eventually sign with EMI and prove that four-piece groups were far from finished.

LESSON LEARNED

Timing is everything. Always be on your toes for a product or service that can buck the trend and set things off in a new direction.

BLUNDER # 3

THE AOL AND TIME WARNER MERGER

It looked good on paper. Within a year, however, AOL Time Warner had posted a 99 billion dollar loss. The AOL side of the house was a bust and the big dreams of “synergy” never came true. The big merger was a failure.

LESSON LEARNED

Bigger is not always better. Synergy can only occur when both sides give equally.

BLUNDER # 4

FORD INTRODUCES THE EDSEL

The Edsel had a horse-collar grill, clunky styling, poor workmanship, and a high price sticker. Comedians said that “Edsel” stood for “Every Day Something Else Leaks”. The Edsel became a comic lesson on Murphy’s Law. After a few years, Ford finally gave up on a car that nobody wanted.

LESSON LEARNED

Implement good development in every aspect of your business. Let’s face it, if the Edsel had been called “Ranger” it wouldn’t have made this list.

BLUNDER # 5

THE XFL

Vince McMahon was a natural showman who had turned World Wrestling Entertainment into a financial giant. He took that expertise and created the no holds barred, smashmouth, XFL. But fans and critics were wary of the relationship between wrestling and the new league. After only one season of sky cams and jiggly cheerleaders, the XFL folded.

LESSON LEARNED

Expertise in one area doesn’t always translate into success in another.

BLUNDER # 6

THE TULIP BUBBLE

Tulips were a rarity in the Netherlands in the late 17th century. So rare, in fact, they began to be sold at higher and higher prices. Tulips soon became a coveted luxury item, being sold and traded as if it was a currency unto itself. And then, the bubble burst. Traders could no longer get their inflated prices. Widespread panic ensued and the economy of the Netherlands collapsed.

LESSON LEARNED

What goes up must come down. Growth will not last forever. Whether it is tulips, the dotcoms, or the subprimes, the bubble always bursts.

BLUNDER # 7

THE CURSE OF THE BAMBINO, DOS, AND MANHATTAN ISLAND

What do Babe Ruth, the DOS operating system, and Manhattan have in common? They were all sold for practically nothing.

LESSON LEARNED

Never undervalue your assets. Conversely, always be on the lookout for a good bargain.

There you have it, Seven Blunders of the Business World, seven classic examples of what NOT to do in business. Learn from their mistakes. This is one list you don’t want to be on.

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