Facebook Twitter google+ RSS Feed

8 Worst Business Decisions

By SiliconIndia   |   Monday, 12 November 2012, 02:29 Hrs
cmt right
Comment Right
cmt right
cmt right
Printer Print Email Email

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.

1. Motorola

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.

next new
Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Sr. Executive
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
Reena Khanna
Dellas  Asse
sys-network admin
Computer Station
Sign Up for DailyDose and Read the Day's Highlights
Follow SiliconIndia :
Write your comment now
Submit Reset