The world of business is governed by the management decisions and excellence in the business planning and innovative thought process. And in conformity with the importance of the management decision and proven excellence many a times a bad management decision has been instrumental in worsening the business outcomes in number of instances. The world has seen and suffered from the worst management decisions in the history of business many times and these decisions still serves as the potential points of education and reciprocated inspiration for the management students all over the world. Here we would introduce some of the worst management decisions in the history of business that actually demoralized the business process and paved the way for the economic as well as financial suffering and loss for a considerable period.
The Decision of IBM to Allow Microsoft to Retain Copyright for DOS Operating System
In the 1980 IBM was the undisputed leader in the computer industry and as the former collaborated with Microsoft to make the DOS operating system with a decision of allowing Microsoft to retain the copyright of the new developed software, the later developed the operating system to gain control of the operating system and software innovations. This decision of IBM to allow Microsoft retain the copyright is one of the worst management decisions in the history of business that made Microsoft the unquestionable leader in the software industry for the upcoming decades, while IBM as the initiator company behind the research could not master sufficient dividends from the innovation.
The Management Decision of taking the Possibility of Financial Fraud in Enron Lightly
WE all know that the financial and accounting fraud in the power and energy sector giant Enron is one of the most controversial as well as tumultuous chapter in the business history of America and this blow has largely been the result of management decisions in the many preceding months and years to investigate and evaluate the viability of company's financial as well as accounting process and decisions.
Lehman Brother's Decision to absorb financial crisis by taking enormous loans by mortgaged assets
We already knew the how the 2008-9 economic recessions started in America and we also know that one investment firm named Lehman Brothers played a crucial role in fuelling that situation. When the mortgaged assets value started to decrease few years back, the company instead of selling assets or finding other solutions started to take enormous loans based on their liquid assets and this obviously made the company absolutely bankrupt with the falling rate of real estates. Not only debt ate up the whole company but it further created a crucial situation for the steady decrease of real estate rates and other financial complications.
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