Mistakes are a big part of life, and even business make mistakes. Mistakes in business can be fixed overnight,usually months, others take years or to never be fixed at all. One of the best ways business can avoid mistakes is to see them ahead of time.
Business people and their investors have to trust the group overall skill to recover from mistakes. One of the best known mistakes is when Mcdonald's Ceo Don Thompson in 2012-2013 ran the mighty wings campaign*, purchasing over 50 million pounds of wings in stock and losing out selling over 10 million.
For business to thrive they must satisfy their customers as well as their own needs. Here are common mistakes business makes using the example above and my own:
Learn from these mistakes on ways to improve your business.
Reaching too far
Reaching too far is a term I used when firms goes beyond their norm and to pursue something extravagant and extreme while ignoring their overall business plan.
Example-The mighty wings were extreme in many ways in both wait time and taste. Mcdonald is known for keeping lines moving faster as one of their mission.
Sinking too many ships
Some of the most common mistakes business makes is simply ignoring to tackle the problems they have at the moment. Not knowing the correct steps to take is a disaster waiting to happen.The metaphor(sinking too many ships) which means-A domino effect of mistakes leading from one single mistake.The cost of one huge mistake can lead to many smaller mistakes.
Example- The choice to buy the wings (Mcdonald brought the wings 50 million pounds before selling) was a huge mistake that led to frustrated employees, customers and management. This mistake alone had huge impacts on the CEO stance, the company goals and profits.
Not spilling the tea
As a business develop they tend to make mistakes.Not spilling the tea is a term I have came up with which means: failure to halt problems and focus on solutions. Mcdonald's has an urgency to continue making money, however when the CEO Don Thompson chicken wings strategy was not making the right type of income the company should have taken urgency.
In a time where consumers are more concern about their health mcdonald's received a bad rep on its impact on consumers health; requesting more unhealthy products(Mighty wings) on menu only fueled the controversy.
Dancing in the wind
A mistake firms makes is being too similar to their competitor.
If the competition moves right they move right.
In a successful market this can only work if the market has proven it has worked for years. Ignoring strategies and failure to be ahead in strategy is one huge mistake a company can make.
Sometimes however changes come too soon while creative innovation arrives too late.
The ability to produce a product should not be the reasons to produce the product, a want for the product must be available.
Failure to keep Core values