8 Worst Business Decisions
Bangalore: Making mistakes while taking certain decisions is very natural, but there are certain mistakes that cost too much. Taking such worst decisions sometimes creates major problems for companies. Listed below are worst business decisions that proved too costly. Let’s take a look.
Worst decision: The Company failed to launch a new generation of smartphones leveraging the Razr brand, and by 2007 the company was selling the traditional mobile phones at a discount.
Global rank: 1
Years on Fortune 500: 56
Peak Fortune 500 rank: 23 (1994)
Peak revenue: $43.7 billion (2006)
Current status: Split, Mobility unit sold
2. Lehman Bros
Worst decision: During the final few years of the housing bubble, Lehman Brothers augmented the amount it borrowed to buy more mortgage-backed securities and real estate. By 2007, the company's leverage ratio was at least 31-to-1, meaning it borrowed $31 for every $1 in equity.
Global rank: 2
Years on Fortune 500: 14
Peak Fortune 500 rank: 37 (2008)
Peak revenue: $59.0 billion (2007)
Status: Went bankrupt
Though he is the third richest man in the world, but believe it or not he lives a very simple life considering his status. He still lives in a house which he bought long back and likes to dress up in normal clothes.
"I just naturally want to do things that make sense. In my personal life too, I don't care what other rich people are doing. I don't want a 405 foot boat just because someone else has a 400 foot boat," he says.
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