This is a good idea……right?
Generally speaking, the people in charge usually have a pretty good idea what they are doing. And if for whatever reason they don’t, they usually have surrounded themselves with people who do have a good idea what they’re doing. This is especially true for big corporations….or so you would think.
When I first saw this list it was shocking how poorly thought out some of these decisions were. I mean, people get paid a lot of money to do the “smart” thing. For example, The Quaker Oat Company. They’ve done pretty well for themselves over the years. Apparently they could have been doing much better though. In the 90’s they decided to expand, having already bought out Gatorade, and bought Snapple for $1.3 billion. That’s a lot of money…….a lot of money!
Obviously things had been weighed, carefully considered, all of the angles covered……..right? Oh how wrong you would be if you thought that. After the purchase was completed they actually sat down and thought about it, only to realize that Snapple wasn’t like all their other products. This product actually needed to be refrigerated! Who knew? Time for a quick inventory on how many refrigerated trucks Quaker had…………..what’s that, you haven’t started counting yet? That’s okay, you’re done. Quaker didn’t have any! To make a long story short, distribution companies figured this out and raised their prices. Not long after, Triarc bought Snapple from the Quaker Oats Company for $300 million. Let me do the math for you. That’s a loss of $1 billion! Good job guys.
This is only #10 in the list. To read the rest visit List Verse for 10 Pretty Stupid Business Moves.