Fortune’s 101 Dumbest Moments in Business
It was the year of poisonous toothpaste and airline blunders galore. Fortune’s 101 Dumbest Moments in Business looks back at 2007’s highlights; if selling Prozac for dogs isn’t the height of madness, what is?
Tell us which Dumbest Moment shocked or amused you the most, and what kind of ergregious acts of idiocy you’ve witnessed where you work. The best replies will be published here.
Yet again, CNN completely misses putting any real facts into its reporting. Here’s data that actually shows that CNN is wrong:
Perhaps CNN should add dumb moment #102 to the list: CNN gets caught making up facts to suit itself (again).
HAHAHA!!! In your face about the Radiohead comment. You guys were dead wrong.
http://www.pitchforkmedia.com/article/news/146529-radioheads-in-rainbows-successes-revealed
#69 Exelon Nuclear fires whistle-blower
I am familiar with Exelon Nuclear’s Peach Bottom Plant but I am not familiar with the firing of the whistle-blower. I am, however, familiar with the firing of the sleeping Security Officer. And for the record, Exelon Nuclear did not cancel their contract with Wackenhut, they instead absorbed many (maybe all but probably not) of those employees into a newly formed Exelon Nuclear Security division. This was to enhance (read into that what you will, who knows for sure) their ability to control the consequences of any future errors in judgement by in-house employees.
It’s obvious to me that the choices made by Fortune for your Bosses Behaving Badly segment are those who the magazine has deemed represent a threat to their status quo. I get that John Mackey was simply making a point about this kind of practice. What is it about Mackey Fortune dislikes? Maybe it’s that he is a success in a market segment that has nothing to do with you. If this is the best way you can think to use your magazine, I’ll go read elsewhere…
Re Radiohead:
Look at it this way: they allowed people to get their album for free, and 38% of people chose to pay for it. Many artists who sell more albums than Radiohead would not get that kind of profit from the same venture. That’s not to even talk about how much more money they’re getting and the publicity it’s generating (which I see other people have mentioned), or how many people bought the discbox for 40 pounds.
CNN really got it wrong with the radiohead album. they should sort out their facts.
not even regarding the fact that 40% bought the record for £6 (and more), you’re forgetting they released the discbox which was £40 and sold out entirely, of which there was 100,000 apparently sold. now, because they didn’t use a middle man, i think their profit margin on this would be much higher than if they had used a record comapny.
you also failed to mention the fact that the album was realeased conventionally on record labels as well, and that in the majority of countries it was released it got within the top 3, and in a lot of cases took the number 1 spot.
not to mention the massive publicity the band received for the album.
i think the only thing you can call dumb here is the placement of this particular business move in your list.
The No-Child-Without-A-Computer statement is partly wrong. Those computers do not have hard drives.
Regarding RADIOHEAD:
Lets say a mp3 album on iTunes sells for $10. Assume an artist gets 20% (generously). If they sell 100 downloads, then they’d make $200.
Now, say 100 people download the album. According to the link, about 40% paid $6, for a total of $240. I’d be willing to say they got half of that instead of 20%, since they did not have a label, so a total of $140.
This means if there were the same amount of downloads in both cases, they took a 30% loss. However, most of the people who paid nothing wouldn’t have paid for the mp3’s in the first place – so there would be less iTunes downloads. And – the fact that you could pay $6 for the best album of the year means that even fairweather fans with a good conscience would be more likely to buy it… meaning they likely sold more.
Plus it’s all about exposure… they will probably sell 200,000 $50 concert tickets on this tour.
Shame on you Apple. Refusing evaluate customers ideas.You will never have all the best ideas.
Re: Best Buy – It doesn’t surprise me in the least that Best Buy would pull this kind of stunt. Best Buy employees have flat-out lied to me about their products and warranties. They will say anything and do anything to make the sale. Their customer service is very poor, to way the least. And if there is a problem afterwards, the corporate culture – right up to the store manager – seems to be, “No, we can’t help you with that.” After several very bad experiences, I will not shop at Best Buy under any circumstances. Instead I go to Costco, where they stand behind what they sell and solve problems with a smile.
Fortune made a mistake by including the Radiohead download experiment as a dumb moment. The economics of the music industry are shady and the industry is notorious for the exploitation of its artists. In reality, Radiohead would have been lucky to get $1 per album sale through traditional distribution but instead got $6 by going direct to the consumer. Radiohead smartly avoided the padded fees for producing, packaging, marketing, and merchandising. By going direct to the consumer they avoided the typical inflated record company overhead costs. Money aside, there were other immeasurable benefits. Radiohead retained control to the rights to one of their best albums, generated good will with their fans, created free publicity in unlikely outlets like Fortune and introduced the band to people unfamiliar to the group. Terra Firma’s purchase of EMI would have made a better example for the article. Terra Firma and EMI are not only hurting from the departure of Radiohead and Paul McCartney, but it is also looking at the potential loss of other artists, such as Coldplay, to self publishing and independent labels.
After the Chinese Poisoned Pet Foot incident, I stopped buying manufactured dog food entirely and have never gone back. I simply make my own dog food, using a mixture of ground meat, plain white rice, and canned mixed vegetables. These ingredients can be purchased in bulk very cheaply and prepared in batches when I do my normal cooking. It is not a lot of extra work, it simplifies my shopping, and I have (slightly-)more confidence in the regulation of the human food supply than the pet food supply. I say everyone should boycott manufactured pet food!
I previously thought the writers and editors of Fortune were actually business-minded. Lets break this down into point form for the pre-secondary school students writing for Fortune:
1. Radiohead decides to sell THEIR work for whatever price the buyer wants to pay.
2. Radiohead generates twice the amount of PROFITS than if they were to remain with a recording label.
3. Radiohead shifts the music-selling paradigm, so far infact, that other large musicians are following.
Wow . . . sounds horrible! What a mistake! I mean they should have remained pawns for a record label, settled for less money and lost their musical individuality.
Fortune’s article should be renamed to 102 Dumbest Moments in Business and they should place themselves in the number 1 spot for such absurdity.
If the rats didn’t die, we should be fine.
I hope the dog can get by on that amount!
I lost interest in buying a ToTo toilet when I found out it costs more to have one installed than the actual cost of the unit.
RE: #35
According to PETA (website), there’s more to the M&M/ Mars story
“Got a sweet tooth? Think twice before picking up a Mars candy bar! You should know that candymaker Mars, Inc.—creator of M&M’s, Snickers, Twix, Dove, Three Musketeers, Starburst, Skittles, and other candies—funds deadly animal tests, even though there are more reliable human studies and not one of the tests is required by law.
Mars recently funded a deadly experiment on rats to determine the effects of chocolate ingredients on their blood vessels. Experimenters force-fed the rats by shoving plastic tubes down their throats and then cut open the rats’ legs to expose an artery, which was clamped shut to block blood flow. After the experiment, the animals were killed. Mars has also funded cruel experiments in which mice were fed a candy ingredient and forced to swim in a pool of a water mixed with white paint. The mice had to find a hidden platform to avoid drowning, only to be killed and dissected later on. In yet another experiment supported by Mars, rats were fed cocoa and anesthetized with carbon dioxide so that their blood could be collected by injecting a needle directly into their hearts, which can lead to internal bleeding and other deadly complications.”
The lending institutions need to start beeing more efficient and accomodating in “short sales”. They take too long in processing, giving answers to offers and the end result is the avoidance of buyers and real estate agents for properties in preforeclosure.
Regarding the Zamboni on the street. In Boise, Idaho, a couple of drunk employees of the ice rink drove the zamboni about a mile down the road to the all night Burger King. They were arrested, but they were convicted because they were driving a vehicle that was NOT street legal on a public street. Would have been the same with a 4 wheel off road vehicle, a snowmobile, etc.
#48: The European Union – film trailer to promote that the EU supports film making in Europe. What’s dumb about this one? Pretty canny if you ask me, big organisation with a reputation for being faceless grey suits produces a funny clip that gets 5 million hits on youtube. Inspired rather than dumb. Maybe it’s a USA vs European sensibility issue, Americans get more easily upset by portrayals of sex?
Masterfoods’ decision to not use animal products in its chocolate seems like a smart business moment – not a dumb one.
It seems sensationalistic to me to say the Rocawear jacket used “dog fur.” If it had been wolf fur, they wouldn’t have called it “dog fur,” and wolves are the same exact species as house dogs (Canis lupus). Raccoon dogs (which were used for the jackets) on the other hand, are a different species entirely (Nyctereutes procyonoides), and though distantly related to dogs, they look and act a lot like raccoons, hence the name. They’re also major pests, so even if it’s false advertising, it’s not like they were killing puppy dogs or an endangered species.
date rape drug in toys!
what’s the big problem,the tobbaco industry has been getting away with this kind of stuff for years.
The Rocawear coat is marked “Raccoon dog.” That does not mean it’s made of puppies.
Raccoon dogs are definitely not dogs and not quite raccoons; they are animals that look a little like both.
If one is against all fur clothing on principle, this may sound pedantic.
However, an equally petty misunderstanding led to the pointless slaughter of felines when it was reported that SARS may have originated in “civet cats.”
About the apple flop— what a flop indeed. I have to agree with fortune. Apple made themselves look like they were intimidated by a 9-year old girl who was actually thinking, and outspoken enough to write a letter. There aren’t many kids like that these days— she cared and went the extra mile to write to write a letter. Kudos to the kid and shame on Apple.
Get a life fortune! You guys are a bunch of idiots. So are your readers.
On 101 Dumbest Moments in Business, #1 – Recall of Chinese Products:
My “favorite” part of the Thomas recall was that after I mailed back my son’s lead-tainted toy trains, RC2 sent me (and hundreds of other parents) replacement trains that were ALSO lead-tainted. Then they recalled those!!!
I’ll never buy another Thomas train, but it’s impossible to avoid all products made in China, especially toys.
I have a slight problem with titling the number 1 dumbest moment in business, “China”. First, China did NOT force stupid Americans to buy their products. Second, go ahead boycott China and you will see prices go up on everything. Third, I suggest that the title be changed to Nike, California Health Department, Mattel, or whatever whomever you would like to blame, Fortune editors. Besides, can you ensure that everything USA exports are 100% safe? No. Look for another scapegoat. China is just the wrong country to mess with.
Date Rape Drug in toy? I can’t help but feel that things like this ARE NOT ACCIDENTS. Are we victims of deliberate sabotage of products of certain manufacturers, or are the executives of our companies too dumb to do research on the standards for materials used in the products they order? Either way, SOMETHING JUST ”ISN’T RIGHT” ABOUT ALL THESE RECALLS.
A PAYMENT LIKE TRIS IS A DISGRCE.
HOW CAN THIS HAPPEN WHEN THE COMPANY LOSY M0NE,.
O ONE IS WORTH THIS KIND OF PAYMRNT. UNDER ANY CIRCUMSTANCES,
KEN FEHLIS
Ironically, Verizon makes a choice not to allow text messages for a prochoice group and they are criticized. It is Verizon’s choice if they don’t want whatever content they deem unacceptable to be sent through their text messaging system. I just wish they would have stuck to their guns. I’m sure they would have been villified just as much as if they would have allowed a Pro-Life group (heaven forbid) to do the exact same thing, but thats what happens when the media is dominated by so called “liberals” who aren’t liberal at all, but people who claim to be “open minded” yet villify and try to crush any dissenting opinion that doesn’t fit in with their worldview.
Verizon you should have made your stand and stuck with instead of backing down.
“According to The Wall Street Journal, his fellow bridge enthusiasts claim that (CEO James Cayne) Cayne sometimes smokes marijuana at the end of tournament sessions.”
SO WHAT!!! half of America secretly smokes a little marijuana. better than getting drunk like HBO President Chris Albrecht and punghing and choking your girl friend. Wake up America…lets legalize
I THINK IT’S TIME FOR THE US TO START MAKING THERE OWN PRODUCTS EVEN IF IT COSTS MORE TO THE CONSUMERS. I BELIEVE AMERICANS WOULD PAY THE HIGHER PRICE FOR A TOY, KNOWING THAT IT WAS MADE IN THE GOOD OLD USA. CHINA SHOULD BE OUT.
Regarding WikiScanner: I don’t think it is a tech flop. As I understand it, it’s just a tool for finding out more about the location (and possibly the user) of a computer that is used to edit Wikipedia anonymously. That quite a few people have been found out to have been -shall we say- altering articles in a way that suits them, is a proof that this tool is rather useful.
I THINK EVERYONE SHOULD BE NUDE AT LEAST ON SUNDAY LESS LAUNDRY,FOR GOD SAKE IM SO SICK OF WASHING EVERYDAY.DRYING FOLDING HANGING UP PUTTING AWAY.SURE WOULD SAVE MONEY ALSO.CLOTHES LAUNDRY SOAP. FABRIC SOFTNER.DRYER SHEETS.THINK ABOUT IT
First of all, about #40, wow.
I knew Disney had that whole hidden sex and drug references stuff going all, but harcore porn… wow
Also, for all of you who are wondering WHY we haven’t stopped China from brining in bad toys… most of our debt is money borrowed from China. So what do you think happen if we shut off their major export? Bingo. We want our money. Now.
The”We the people” of the USA are getting more stupid everyday for putting up with our Gov and Corp.America. Its your money “Stupid” Spend it as you want ! That is what they are after with NAFTA, Outsourcing and loss of factories . How you spend your and jobs, How you buy and spend allows this to happen. Your Vote for Clinton and politician’s helped a whole lot. You control the future,Your Future.
In 2008 I am checking country of origin of every item I buy. The fewer items made in China, the better. I am not shopping WalMart for that very reason. You even have to watch where the garlic you buy is from. I have noted fresh garlic from, of all places, CHINA, being sold at Sam’s Club and even our Army commissary. Let’s bring industry back to the USA in 2008.
102. Fortune reinforces the general cluelessness of good old ignorant US that still percieves the rest of the world as some kind of collection of themeparks.
You forgot Wal-Mart’s underwear for girls with the caption: “Who needs credit cards?” on the front.
I don’t know what was worse Doug Parker’s DUI or the pathetic damage control afterwards. If you get caught doing something out of charaecter, it is best to admit it and say as little as possible. Admitting past sins was not irrevelant but made a bad situation worse.
JetBlue’s other dumb moment It sponsorship of the DailyKos Convention. Did they not realize what they were getting into and that it would effect friendly image? I guess the Blue in the name means Blue state.
With Radioheads inclusion in this list, fortune shows that it has no knowledge of the music industry whatsoever…
Yeah, these lists are bait dangled to entice comments, and I’m taking the bait.
#59 — Radiohead’s “stupid” move netted them $3,000,000; as Thom Yorke puts it in the current issue of Wired, “more than we’ve made on all of our other albums combined.”
I’m guessing Fortune editors equated the 62% who took the album for free with a 62% shortfall in projected album revenue–an assumption so wrong on so many elementary levels I’m at a loss to explain it’s appearance in a (formerly?) premier financial periodical.
I don’t even like Radiohead, but come on, give the goofy Brits some credit for proactivity, or at least get your facts straight.
Actually, a lot of people (including chefs) thought Ratatouille was one of the best movies about food ever made. Not sure how that qualified as a business blunder…?
Marie from Ca. has said it all. She is right on both on the China and illegals. My grandparents waited their turn to come here from Italy and learn to speak English right away as they wanted to work. I am so tired of trying to talk on the phone with some one who can barely speak English and then get upset with me because I can’t understand them.
do your journalists even think before they type?
you’re supposed to be an AUTHORITY on big business, not a mockery of it. whoops.
J&J isn’t suing the American Red Cross for using that logo – J&J is suing the American Red Cross for TRYING TO SELL THE RIGHTS to use the lggo to J&J’s competitors. They can use the logo forever they just can’t legally profit from the logo since J&J owns the trademark.
when are we going to see that our countrys wasy from the past, the ones that set us abovre the other countries is slipping away. We are the FOOLS of the international community these days and it is because we still buy from countries that try to take advantage of us over and over again. Thank heavens I will be dead soon.
Radiohead’s Dumbest Moment in Business?
You’re writing, sixty percent didn’t pay anything – and 38% percent paid an average of 6 bucks. I happen to be one of the 38% of people who willingly paid – not because I think Radiohead needs the money (they don’t) but because here’s a band that understands the new economy better than Fortune magazine.
The one thing left to say is that Radiohead was probably making more money from this than if it had gone through the usual channels. The only thing left to do is to change your text as follows:
58. Fortune magazine
Fortune magazine decides to name Radiohead’s decision to sell MP3 on their own website, where every user has to sign up – thus creating a huge user base – a dumb business moment for Radiohead. Fortune doesn’t realize that the joke’s on them because everyone else understands the significants of this move. Meanwhile, Radiohead is changing singlehandedly the music distribution business by collecting donations and contact information directly from their fans. The proceeds are most likely more than what Radiohead could have made had they gone through the usual music distribution channels.
58. Radiohead
Can’t wait for the follow-up album, ‘In Debt’
Considering most record contracts give only $1 a sale to band, getting an average of $2.26 means they made more than twice per alblum. Increasing your per unit return by double is only a dumb business move if they cut their total sales in half, which the Forbes blurb doesnt even mention.
Fortune’s #1 Dumbest Moment in Fortune Top 101 Lists.
oops.
hmmm…Maybe Fourtune should list itself here. Where is 101?
Now you see why a merger between comcast and Walt D won’t work. Kids should always come first before porn fans.
Seems like a no-brainer to me!
Stop making things in China!
Plently of US folks looking for jobs!
Re: Radiohead.
Are you people retarded? Radiohead earned $3 million in one month with their download plan, not a penny of which they had to share with a label. How is that dumb?
Hey Stanley O’Neil and Chuck Prince; Why don’t you two coauthor a book. You could title it: “How to Ruin a Perfectly Good Fortune 500 Company and Get Rich While Doing it”. I’m sure there is a long line of of would-be exec’s who would buy the book. Shame on both of you!
It’s pretty clear that Merrill Lynch executive Jeffrey Edwards is either dishonest or asleep at the switch (or possibly both).
Here’s another dumb moment – Fortune’s 101 Dumbest Moments in Business features 100, not 101 moments.
100 and 101 both feature Maria Bartiromo
Radiohead actually made an average of just over $2 from selling their album themselves, whereas they would have made just $1 per album if they had gone through the record companies. So the decision is actually a pretty sound one business wise. You’d think Fortune would know that.
“Sixty-two percent, according to comScore, decide to pay nothing, while the other 38% voluntarily fork over an average of six bucks.”
How about including the best part of the equation: How much Radiohead, THE ARTIST, keeps out of the gross sales of this album (100%?) versus how much A RECORD COMPANY would give them ($0.03 per CD?)
The only stupid people in this story are the record companies, whose greed is exceeded only by their incompetence.
is it just me or are a bunch of the links pointed incorrectly?
OVERCOMPENSATED, UNDERPERFORMING DO NOTHING PARASITE.
HOW ABOUT THE COMPENSATION COMMITTEE BOARD MEMBERS WHO APPROVE THESE DEALS?
WHAT IS THIER TAKE (ACTUALLY AND FIGURATIVELY ) ON THESE DEALS
It’s too bad this did come out a few weeks later, it could have included our brainiac CEO Al Lord and his stellar performance on the shareholders call last Wednesday. Stunning.
Here’s a suggestion to add to the list of dumb business ideas:
A HUNDRED PAGE slide show, instead of a list.
It all but guarantees that no one will bother with the entire story. On the chance that it IS on the list, I apologize. I don’t have all day to click through 100 pages.
TOTOs’ are overpriced and have quality issues. Look into IZEN bidets. These guys know what they are doing and even manufacture for Samsung. I have two in my home and has tons of features more than TOTO. Other companies “claim” to be manufactured in Japan or Korea but most of them are just cheap made-in-china-knock-offs try to sell at high-end prices. Thats what happens when consumers dont do their research.
It seems clear after only reading your Top 9 that you have no more than 10 items that really deserve inclusion on this list. Ratatouille was excellent and deserved Kudos. Many of your top 10 can be lumped into a “sub prime nightmare” category. this is gimmicky journalism and I expect more from Money and CNN.
Be careful with Comcast while you close their account and also when you start. Because as soon as you start their phone service you will get calls from various companies kindof spam or
deceit. One i know is Family Readers Service they will say they will send you a gift probably diamond watch and to verify your identity give your debit card or bank account etc.
As soon as you give this information their language tone will change and they will inform you that they will be sending you bla bla magzines to you and dedeuct 1000 times cost of mags from your account. And they will actually do it. Be careful !!!!!!
Anyone else notice that there are only 100 of the dumbest moments in business in the article. Perhaps mistake 101 is Fortune not being able to count?
Shame, Shame, Shame- Shame on the toy company, shame on the media. I happen to work in sourcing products from China, and I can attest to the fact every US company that does business in China has QC (quality control) people inside the China factories whenever something is produced. Especially ANY company that sells product for children, their liability is just too GREAT as it should be. So we have an issue where some bad products were shipped into the US, the toy company puts all the blame on the factory and the sub contractors. What a shame, this company knew EXACTLY what they were shipping, exactly they would not take a risk to leave it in the hands of the Chinese. The Chinese are tireless workers as they strive to have all the luxuries etc this world has to offer, but they cannot be held to the same quality standards the US is accustomed to, that’s what the QC is for, that’s the check and balance, and it works, in this case the ONLY blame should be squarely put on the toy company, they are the balance, to bad there was no check……
Some dogs do need prozac for specific things — my dog was severely abused (she was hit with shovels and burned) and is afraid of almost everything. Her depression pills have helped so much with her recovery. Also, I had a Bullmastuff with such bad separation anxiety that he chewed his crate up, then the door knob to the house. He let himself out and was hit by a car.
I’m all for prozac for dogs.
In what universe is Radiohead’s download offer a dumb business move? Even by your math, 38% at an avg of $6 represents much more per record to the band than even the best major-label deals. And that’s not even considering the context of the move within the band’s career – this only solidifies and deepens their core fan base, keeping them relevant and vital to future ticket and download sales.
That’s the problem with ‘dumbest’ lists – karma’s a bitch and you can make yourself look dumb in the process, Fortune.
Shouldn’t the Fed’s go after a Stanley O’Neal to get most of his $161 mil back to pay for any repairs to the Mortgage mess? Better it come from Stan than from my tax dollars – my bonus this year is only $5,000 and I didn’t ruin anybodies lives by doing my job….
Bear Stearns CEO James Cayne is not only a poor executive but he is also a crappy role model for America’s youth. I think he would be shot had he practiced his trade in China.
Masterfoods (re-named Mars since September 2007) did not decide not to begin, they decided to stop using animal products in their various chocolate ranges once the vegetarian society in the UK caught them out and pointed out to them that they stood to lose 3 million customers in the UK alone.
It’s all well, fine, and good to talk about the problems created by the enormous population of obese people (Disney needs to deepen its water channels for the “It’s a Small World” ride to keep boats from getting stuck – and gives food coupon to patrons too large to ride.) This year I’ve read about this problem in multiple forms: airline seats are too small, nurses can’t move obese patients, and stronger hospital beds to hold larger patients are needed. Every time I go grocery shopping I see morbidly obese people riding in electric powered carts with baskets… supplied by the store. When is someone going to wake up and say, “We have a behavioral problem here!” – instead of deepening the water channels at Disney World? Even bariatric surgeons aren’t interested in the behavioral aspects of obesity! They’ll re-engineer your entire digestive system and then blame the (many) patients who regain weight for not following “protocol”… if they could do that why would they need the surgery in the first place?
Don’t blame the Chinese for there stupidity,they do what there told.The real culprits are greedy corperate America and the US government who made these deals with the communists.
The fact is you can’t buy any item made in China thats worth the box it came in.But now thanks to the government were left with no alternative since americans con no longer produce a pair of shoe laces.
I think you mean that Meredith Whitney’s husband is former WWE Champion John Bradshaw Leyfield
There are a lot of terrible entries on this list. Maybe whoever decided that this was a decent list to publish online should be added to the list?
Fortune should consider being politiacally correct in posting the Imus article, “say what?” appears a bit racey to me!
Re:Airline Snafus.Say what about hooters and Southwest Airlines and
Virgin Air?
I love how NorCals consistently defend terrible customer appreciation by a particular NorCal company using legalistic gobblety gook. Apple has a well-earned reputation for great marketing, lousy customer relations. Go Intel – at least you appreciate my business!
We imprison the wrong people in this country.
Still another example of an overpaid executive doing his job.
The Red Cross should be the one suing. It started using the Red Cross symbol at least 20 years before Johnson & Johnson was founded. I guess those overpaid executives of the company need to justify their salaries somehow.
It’s heart warming to see this mom has her priorities straight.
I don’t see what P&G is complaining about. This should help sell more of their brushes.
Some time ago I made a concious decision to not fly anywhere unless forced too. I live in the Ft. Worth Texas area and drive to any location in Texas as well as the contiguous states. I absolutely cannot stand the TAS folks, not to mention the airlines personal. Just makes me mad thinking about it. Security issues I can understand but the attitudes are more than I can take. I would never in a million years let airlines people treat me the way they do away from the airport. If you speak up or complain you are in big trouble. I have seen it happen. So I say the HECK with them.
Golly, I wonder why American business is in the toilet???
“In fact, many of our employees go on to be McBrain Surgeons”. I had to respond to number 67 on your list. I believe McDonald’s is correct in opposing the definition of “McJob”. As a teenager putting himself through school, I appreciated the opportunity to work for McDonald’s. No, it wasn’t my long term career choice, and no I may not have become a brain surgeon, but I am working in the hi-tech field developing alot of the equipment that is currently allowing your website to reach the world. And happily earning 6 figures. So don’t knock fast food jobs. One may very well be the stepping stone to a rewarding career.
Merrill Lynch under O’Neil pushed heavy into the subprime backed SIV’s etc despite all their old employee’s says it’s a bad idea. They laid off/got rid of the older employees who refused to ‘go along” with bad ideas. Now Merril Lynch is suffering their just losses. The fact that Merril paid 161m to get rid of their boss just says how dumb and desparate they are.
On Apple rejecting unsolicited suggestions:
This is a standard practice, since the sender may have hit on something Apple is already working on, and that sender would therefore be likely to complain when “his/her idea” suddenly gets announced and he/she doesn’t get credit ($$$). The entertainment industry, music companies, TV shows, all sorts of people use this system to avoid such problems.
If Apple leaves themselves “open” to new ideas, they leave themselves “OPEN” to nuisance lawsuits.
What is wrong with Le Monde touting Ratatouille? It was an animated film, a fantasy! The message of the movie, however, was very heartening in the light of the celebrity chef craze.
Gastronomic is defined as “the art or science of good eating”. Le Monde was likely commenting on how the movie positively portrays the art of cooking to a level of passion on par with any other art, such as painting or sculpture. The premise that the main character is a rat is merely a play on the name of a common dish in French cuisine, ratatouille, which also happens to be part of the final flourish for the resolution of the story.
Sorry Fortune, you missed the point on this one.
Hey Branson and Playboy who is next Britney’s kid sister?
Two comments…one from each side as nobody gets off scott free on this one…Kyla Ebbert is a floozie who showed her true colors by posing in the nude for Playboy so ’nuff said about her…on the other hand the gate agents (and others) at Southwest are (I think) getting a little too “power mad” with their notariety on the A&E show “Airline”, which is all about SWA experiences at various airports. I have never run into a truly surley SWA agent but I must admit the airline is not nearly as friendly as they once were…and I fly then ALOT!
Just how is the fact that the Saudi Prince bought his own jumbo jet an “airline snafu”?
That doesn’t have anything to do with any airline operations and the guy can do whatever he wants with his money. If he want’s to buy his own plane and can afford to do it (and he certainly can), there’s nothing wrong with that.
When are you people going to realize. No Shoes, no shrit, NO SERVICE. Airlines have the same type of rules. These companies are private buisnesses and this one in particular is a family discount airline. I know I would not want my children to read this shirt until they were at least the age were they understood it.
Okaaayyyy.. So US rag “Fortune” puts China at the top of its dumb list. Hmmmm, we know China is gonna be the next superpower and a teeny little rag like Fortune won’t make a difference. A shame they didn’t realise it before they made themselves look bitter and foolish.
About the sacrifice of 2 goats by Nepal Airlines officials to appease the Hindu god of sky protection: That ranks right up there with the Governor of Georgia leading a prayer meeting to ask for rain! That story should also be in this list!
The company president for the high-tec toilet shouldn’t be too upset about his product igniting. Thsoe toilets were made for small Japanese people, not the obese hogs of America
ok if a lady leaves $12 million to a DOG after shes gone…..???…wow!
Why is the ATHF promo a flop? Because 99% of the public is too stupid to recognize a sign made of LEDs? When was the last time you saw a bomb made of a thin circuit board and LEDs? Come on, the only flops here is an ignorant and paranoid public.
Regarding the Intel ad….
I think it’s only an issue if you see people for their race instead of seeing us all as humans. I didn’t even notice the “issue” until you point it out. Intel is only try to sell the idea that their product is fast. So what if the athletes are black.
I guess Disneyland Execs have a keen sense of marketing and PR. What will they do next? Hey I know..Why not prevent our employees from living accross the street from the Park. We will sue the City to prevent the construction of a new low-income housing complex. I wonder if Disney has any opennings in these two depts????
How about IBM not getting the Licensing for the Disk Oerating system from Bill and Paul when they were finished with their contract? They could have bought them out for mayber a couple million.
Let’s not forget that the authorities who mistook the ATHF promos for bombs didn’t notice them for several days and attempted to distract the public from their pathetic incompetence. Way to go, knuckleheads.
84. Southwest Airlines
This article fails to point out that Ms. Ebbert flashed her panties on the Today show when she sat down and crossed her legs. No telling what she did on the aircraft. And her being hired by Playboy says it all.
So a German screw factory shuts down the red light district in Amsterdam?
(article no.49) This is funny! Are you sure you got the geography right?
I think the #1 dumbest moment award should definitely go to Time Warner for shutting down the highly regarded Business 2.0 magazine which started this list in the first place!
Regarding Apple’s letter to the person sending unsolicited ideas :
This is not dumb – this is actually sound business judgement on the part of Apple.
No wonder the letter came from the legal department. The risk that they were trying to mitigate is that the sender may later sue Apple for Intellectual Property rights if one of their ideas did make it into iPod, possibly by Apple’s own inventions and enhancements. It would be a legal nightmare to differentiate who owns the “IP” in such cases. So it was a prudent response from Apple after all.
I love when you do this each year, one of my favorite things to read!
What’s wrong with the Year of the Rat, way to offend Chinese Culture!
Pilot Travel Centers implimented a security program to help prevent use of stolen cards at their gas pumps, and probably receive a better rate from credit card companies. The system requires customers to enter their card’s billing zip code when making a purchase of gasoline using ‘pay at the pump’. Unfortunatley Pilot failed to test their system, which used slow responding heat sensitive non-tacit keypads, and software that require entry of a zip code in a few seconds – too fast for most customers having to use the quirky keypads. No idea of how many customers went elsewhere to buy gas, and how much sales were lost before Pilot finally started to fix the problems after several months.
Move by Apple’s legal counsel is certainly not dumb, but had to what is needed to protect the company’s intellectual rights. This is a very standard practice that many companies follow. Just because it is from a nine year old, does not necessarily mean a company needs to encourage it.
Without question, the dumbest business moment in history came when IBM decided not to bother programming its computers and sub-contracted to young Bill Gates. That decision cost IBM billions and billions (as the late Dr. Sagan would say).
As for the adult swim Aqua Teen Hunger Force add, i personally thought it was great! I blame not the company, but the hundreds of people with no sense of humor and who are scared of their own shadow apparently who thought this was a bomb. Come on people, when was the last time you saw a report that read “Well, we knew it was a bomb, because it flicked us off”. I call this moment instead a “Dumb fear driven American Society” moment rather than a dumb business moment.
Radiohead made the same profit from downloads that they would have received from a record label distribution … $2-$3 per album … that’s a wash and they cut out the middlemen.
besides … the money will be in the support tour … which Radiohead also controls completely now.
buy tickets for a concert lately ?
Dylan and The Band, 1974 … $18
For the “Aqua Teen Hunger Force” adds, the authorities are really the ones with egg on their face. When was the last time a terrorist made a bomb with a large “Light Bright” cartoon image as if to say, “Look, here’s a bomb”. Funny that they did this in several states, but only a couple panicked and overreacted. Of course, the media had a field day with it.
Good on Apple for telling everyone that they don’t accept unsolicited ideas. That’s brilliant!!! What if they accepted her idea, ran with it, and it is a big success? In this country’s screwed up court systems, she could probably sue for $50 billion dollars for Apple’s theft of her idea. Way to cover your own ass Apple!! Brilliant business misinterpreted by idiot people!
D.R. Horton, the homebuilder who said the entire year of 2007 will suck should not be on this list. It is one of the few honest statements I have ever heard from any businessman!
Tom Praska
Minnetonka, Minnesota
Sallie Mae CEO Al Lord for his remark “Lets get the f___ out of here” while being recorded. Perhaps he can get in his Porsche (parked in front of SLM headquaters)to make his exit.
Stanley O’Neal is, obviously, a criminal. Only a criminal takes his pay after being responsible for a gargantuan, and the first, loss in the company’s nearly 75 year history. He should be ostracized, reviled and held up to ridicule.
To DAWG in GA, Jim Samples did resign, however he did not face criminal charges in the matter. Turner broadcasting paid $2 million to the city of Boston in order to absolve themselves and their affiliates of any legal ramifications. The fact that he resigned is immaterial to my point. No one ever talked about charging him or any of his colleagues after the city received $2 million. They did however continue to prosecute the college students who actually deployed the devices. Resignation is a private matter within the company. I’m concerned with the fair and impartial application of JUSTICE, which is not present under these circumstances. If a judge had adjudicated the case and fined TBS and TCN $2 Million, then okay, but this amounts to a preemptive bribe which circumvents our judicial system. Please DAWG, try to pay attention to the point before you start yapping.
Any of you who are complaining about loss of US manufacturing jobs should realize that it is not just wasteful executives who have caused this problem. A greater share of blame should be laid at the doorstep of trade unions that drive up salaries and benefits in good times, then bankrupt companies when production blossoms in foreign markets. International competition is the NATURAL progression. Isolationist policies are what got us into messes like WWI. They also hold back domestic economies from running efficiently by limiting imports of affordable raw materials and parts.
Countries follow a clear progression: first you’re agricultural, then you’re industrial, then you’re service based. The US is quickly moving into the third arena while China is going full tilt into the second. Consumers just like you demand low prices, then whine when US workers lose their jobs. What did you expect would happen? That we would have the same number of steel-mill workers for the next 100 years? EVERYBODY KNOWS HOW TO MAKE STEEL. If you’re an auto maker, buy the cheapest one you can find that meets your requirements. It is a tragedy that people get laid off; no doubt about it. People who are in these industries should realize that they are going to need another trade skill to succeed in the 21st century. Working at the same car plant your daddy did is a relic of the over-regulated, protectionist past. Granted, our government has done a piss-poor job of regulating product safety, but it’s not impossible. Look how quickly Japan puts the clamp on US beef at even a hint of mad-cow disease.
I can have some sympathy for workers out of a job, but complaining about foreign displacement of jobs, then failing to boycott foreign products is hypocrisy of the highest order. If you feel there are no domestic alternatives, stop complaining and start your own company. I imagine you will find it hard to compete, but that just plays into your argument doesn’t it? It’s also pretty crass to let your heart bleed for workers in the US, but scream about Chinese labor prices while those very jobs are lifting people in rural China out of the destitution inflicted on them by the insanity of communism. What makes the quality of their lives less than that of an American? Oh right, I forgot. They’re not Americans…those lives are worth way more. USA! USA! USA! Sick.
CBS letting Howard Stern leave for Sirius is one of the dumbest moments in business. They lost billions in revenue overnight.
Surely the real Dumb Moment for the Ratatouille film was the decision made by Disney/Pixar that the public was too stupid to pronounce the word Ratatouille, without also spelling phonetically on posters, etc.
The President of Cartoon Network — Jim Samples — resigned because this stunt. So MARK in BALTIMORE… the “higher ups”
did pay a price. Do your homework before you spout off.
Ratatouille was amazing. 4.5 stars on Google movies, 8.5/10 on IMDB. Have the authors even seen it?
About Dumb Moment – Johnson & Johnson sues the American Red Cross for infringement of its trademarked red cross.
Should Johnson & Johnson win the case tehn I suppose the U.S is left with the other sign, the Red Crescent – unless J&J has already registered that also. The U.S is still the wild west where J&J shoots from hip.
With regards to #61, its worth noting that the business about eating the goats innards have been proven to be a false rumour. The guests were given Greek meat soup that was in no way related to the goat decoration. That doesn’t change the fact that using a dead goat (purchased from a butcher) on the dinner table is rather grotesque, but its generally a good idea to clarify these things.
We all know the majority of the recalls were due to flaws in designs not done in China. (such as tiny magnets and etc…). It’s so frustrating to see the media always choose to see one-side of the story to make the point, especially when it comes to China.
I am been a TV repair man for 37 years,and never in my life I saw so much garbage coming from China I am talking about the televisions,many of them end up on land field after 6 months to a year because quality is not there any more,parts to repair this sets sometimes are more expensive that the set itself,China found a gold mine on us.-Tito
Re: #9
So who exactly are you commenting on?
Pixar? Ratatouille is in the top 50 all-time highest grossing films (worldwide).
Le Monde? For giving a U.S. movie a good review?
Fortune? We didn’t have enough to complain about so we started randomly pulling things out of a hat?
China sure promises cheap products but offers zero quality. They are number 1 in imitation but last in imagination.
#83
Her husband isnt called “Death Mask” in the WWE (and may not have been for a few decades) he uses his real name John Layfield and they play up his other roles as a FoxNews corespondent.
Regarding smart toilets or your perspective in general…it is way to US focused…do any of your staff travel…from Paulson being outsmarted by the Chinese to the Koreans laughing at us becuase we use toilet paper…better take off your US centric hat…the WORLD is changing and we are not the only culture in town…your statement about the smart toilets indicates just how unsophisticated you are…
Radiohead allegedly made more money from this release than from all other albuns combined, says the band leader in a interview to Wired posted… today. Also, this note shows Fortune wasn’t fair on the assessment. .comStore also said that the 38% that paid for the album paid $6 average, so in fact the band profitted $ 3 million with the online version only. Why didn’t you post the full information? Probably the intern didn’t read it in full. Hmmmm, seems there’s already material for the dumbest moments in journalism for 2008!
Regarding the Toto Toilet.
Where can you get on a Hot Seat and really get a charge out of it all at the same time?
At least it is nothing you have to eat out of!
Remember people? It was this administration that did not fund enough for the US Product and Safety Agency.
Some corporations are running rampant and not taking responsibility for suppliers because it is too costly.
Their Risk Managment Departments weigh the penalty costs versus corporate gains.
Low and behold which side wins?
Look at corporate pension funds moved to the government agency responsibility with payback to workers at a lower amount than promised by the corporate raiders.
But those same companies, some of them, use bankruptcy to reorganize, at taxpayers expense, and return to the marketplace with more competitiveness to pay some of their CEOs up to 34 Million Dollars compensation.
And guess what our representatives are doing?? Hmm! Nothing? I don’t see voluntary return of Pensions Plans to companies that reorganize under Chapter 11?
Enron employees suffered greatly and the Execs walked away with millions to be donated to the Administration political representatives and was one of the largest campaign donators, if not the largest!
I don’t see recalls for donations to a campaign committee from Enron???
I guess it is Big Friendly Corporate Business as usual!
Check it out?
So where the problem really lie?
Again, the finger pointing should be at our Congress lack of responsiveness and the blame is wide spread includes the US Citizen complacency. Understand how our government works and you will realize why it has work very well recently.
There is a system.
Use it or lose it! The negative forces out there Love complacency!
It is earned not given!
I understand you’re all money-grubbing Capitalists, but I can’t believe Radiohead is actually on there. Their intention was to make a point rather than to rake in any cash. But of course, none of you would understand that.
Also, Titanic watch is a brilliant idea.
The store Master Bate and Tackle does exist in East Haven Ct. on Main st.
Radiohead actually probably made MORE money by selling their album that way.
Artists only tend to get less than $2 on any 10$ album anyway so getting $6 is a big improvement. Chances are a lot of the Free downloaders were those who would have never bought it without trying first (like me), some of whom likely went back and paid a second time, those who would have downloaded it illegally and those who downloaded it multiple times in different locations.
Thomas has been a failure every where he has been since he stopped playing.
china should not be able to export anything to the US. We are obligated to protect our people and should under not circumstances accept any of their lead contained products or food. This is nuts that we are still importing. Are we that desprite for cheaper products that we would endanger our lives, especially the children who are too young to speak for themselves.
In a perfect world, we would not have been spending the last fifty years selling America. I cannot find anything we actually manufacture in the USA anymore. Not even Levis or L.L. Bean products. I’m sick of it. Our workers are out of jobs and we have to put up with third class merchandise at first class prices.
Retract #51 this happened in 2006 not last year.
http://www.engadget.com/2006/04/14/apple-legal-sends-little-girl-running-crying-to-room/
Why would you include Radiohead in this list? Between people who paid for the download, people who bought the $84 box set (including me) and people planning to purchase the CD next month, this will likely be the most profitable release they’ve ever had.
How about General Motors taking a 39 billion dollar write down on a company that only has a 15 billion dollar market capitalization?
Or, how about Daimler AG paying 36 billion for Chrysler in 1998 and then paying 680 million to get rid of it less than 10 years later?
Or, how about the Fed looking the ohter way on sub prime loans because it was good for the economy?
Or maybe how having a negative book value doesn’t send you into bankruptcy but instead puts you in the ‘Fortune’ 500.
Welcome to the ‘new economy’ built on debt where all you need is cash flow and audacity to be ’successful’.
Profits and a balance sheet in the black are so quaint.
Regarding #59 Radiohead:
Was it also one of the dumbest moments in business when Google held a modified Dutch auction to launch their IPO which in many ways is similar to what Radiohead is doing here? Not according to a 2004 Fortune article entitled, “Two Cheers For The Google Ipo.”
So, let me get this right: When the market decides the valuation of common stock, that’s the best thing since sliced bread. Yet for some reason, when the market is asked to bear out a price for music, that’s dumb.
Your lack consistency is astounding.
Regarding #9 Ratatouille:
Dumb? It drove my wife and me to seek out local French restaurants and explore more diverse cuisine in our area. It also had us in the kitchen cooking that same day! Stick to what you guys do best – you’re obviously not movie critics!
#51. Here’s the real problem, the issue with Apple actually happened in 2006, not 2007… Fact checking isn’t that tough.
Best Dumb Business Move:
(1) Create a list that might be the only exposure people get to Fortune Magazine all year.
(2) Leave the impression, from the choices and comments on the list, that the people at Fortune Magazine know exactly diddly-squat about business.
Regarding #51 (Apple), the incident occurred in 2006 not 2007. Then again, this list is from Fortune magazine, so I should lower my expectation on accuracy.
The U.N. screws up everything it does. I cannot think of a single exception. The porn instructions in the free laptops to children story does not surprise me. The U.N. should be completely disbanded.
maybe if we executed a few incompetant politicians or their appointees we would have a less corrupt government. It seems there are a few things China does better than the U.S.
If we are having all this stuff made in China that is defective and dangerous, WHY IS OUR COUNTRY STILL IMPORTING, AND WE AS CONSUMERS, STILL PURCHASING THESE PRODUCTS. I try to always read labels and see where something is made before byuing. And will NEVER again knowingly purchase a product made in China. I think we should all try to buy American whenerver possible. KEEP OUR DOLLARS AT HOME.
uh what’s the address of that company in England, again?
Mattel apologized to china for some of the recalls……did you see that?
It would take an American magazine to call the EU dumb. Don’t be so uptight. We’re not and that’s why the ad works in Europe.
9. French newspaper Le Monde [Ratatouille]
Ooh-la-la, gross!
The French daily Le Monde calls Ratatouille, Pixar’s movie about a rat in a kitchen, “one of the greatest gastronomic films in the history of cinema.”
I haven’t seen this movie, but the production costs are listed at $150M, hence the marketing budget should have been an additional $40M-$50M.
The resulting worldwide box office sales were $600M, netting the title around $1.8B for all of the licensing (DVDs, games, toys, etc.).
900% ROI doesn’t sound like something that belongs in Fortune’s 101 Dumbest Moments in Business…
Looks like including Radiohead into this list was a bit short sighted. Turns out to be a great idea with more money going to band instead of the RIAA. But then again any idea that keeps money away from the RIAA can’t be bad. I guess its impossible to know if they would have made more money if they would have gone the conventional route but any tactic that makes the fans happy and makes money is a win win move.
You can Boil all these Dumb Mistakes down to one comment.
GREED AND STUPIDITY WALK HAND IN HAND.
If even half of these corperations had used a little basic business 101, they would not be in this mess. But NO we are smart, we are CEO’s we don’t have to worry about whats happening on the street, we are insulated from the real world.
Welcome to the real world.
Ok, about half of these were hilarious. The other half made your writers look like the dumb ones. I suggest you consider downsizing this list a bit. BTW, I clicked on “Drive-by Downloads”. I’m just a curious moron, I reckon.
Re: Ratatouille. I agree with Bill when he says that the author obviously never saw the movie. I don’t know a single movie that made me as hungry, or made food look as good as Ratatouille did. Seriously guys, a little bit of research and a little less opinionated tripe.
Those who retail the Chinese made goods have a responsibility to place quality control personnel with those making the goods. If they continue to accept junk; junk will continue to be made.
Made in China never meant quality or safe or even desirable. It is no surprise to find their products substandard to our requirements.
Why is everyone so negative? Only people that have something bad to say commented. There were only a few out of the 101 that were “dumb”. People find something more important to complain about.
Why was the EU viral considered dumb? It got people talking, it got them to check out the “EU-Tube” website, and it was funny and raunchy – which, sadly, cannot be said about most of what the EU says and does. I would call that a sly victory.
duh! ya think we should stop buying from china???? ya think there is somewhere closer that we could get our products say, like US??? Corporate greed probably wouldn’t agree to that, what’s a little lead when it comes to the bottom line?????
#2: “Doggie Prozac”
I stopped reading after this. How is this dumb? It’s a legitimate treatment for dogs with separation anxiety, no matter how “dumb” the editors think it is.
How dumb is it to find a new market for a product that you have already developed? Seems like pretty smart business to me!
US companies have product specifications that they supply to Chinese manufacturers. If the Chinese did not follow those specs, where was the US company’s quality control on this issue? Sounds like China bashing politics as usual. Hm-m-m-…
Furniture makers move to China is one of the biggest blunders I have seen. The makup on furniture is absurd, and I can go to Big Lots and get the same furniture made by the same people for a fourth of the price(or less) Send the CEO jobs to China, bring back the American worker. Companies would save millions(if not billions) in saleries, perks and bonuses, plus have better products, a stronger America and economy.
And thank you Mr. Clinton for signing agreements which have led to this trade & off-shore movement. Would we have expected more of the traditionally “cheap” manufacturing processes in China?
Furniture makers move to China is one of the biggest blunders I have seen. The makup on furniture is absurd, and I can go to Big Lots and get the same furniture made by the same people for a fourth of the price(or less) Send the CEO jobs to China, bring back the American worker. Companies would save millions(if not billions) in saleries, perks and bonuses, plus have better products, a stronger America and economy.
Re the German screw smuggler story – hey guys, Amsterdam is NOT in Germany.
It is time for a complete and total embargo on Chinese products. Turn the ships back. Try to find a kitchen appliance that isn’t made in China. They don’t last and quality is poor. Make the US Companies know that we don’t want stuff from China. They are destroying our economy!
well sacrificing animals is quite normal in that part of the world and believe it or not many people think that it works.
i think that it was very apropo to execute the former head of the chinese food and health admin. I f the usa would start taking our responsibilities more at heart, than maybe the rest of the world would respect us again as a major factor in world issues.
LEAVE CONDI ALONE YOU BIG JERK!
64. Spain’s National Institute of Statistics:
It’s no surprise that boob and nose jobs have been added to Spain’s way of calculating the retail price index. Spanish women are obsessed with how they look, and specifically cosmetic surgery. It’s a huge industry here. I’m sure that for a lot of Spanish women, looking good is more important than food or anything else in the RPI.
Actually, we use the prozac for dog formula to treat our Boxer’s severe separation anxiety. She was mistreated as a pup, and had some pretty terrible problems when we got her. We’ve combined it with previous behavior modification techniques, and found it to be quite effective.
The International Red Cross is in Geneva not Rome
CO-OP funeral story, just to let you know they are called pavements NOT sidewalks.
Why do you consider Apple dumb for telling the kid they won’t accept here idea?
Try the same thing with ANY company – you’ll get the same response.
What rock have your editors been living under – this policy has been in effect for decades with most companies.
Get real with these stories folks!
KEITH GET A FACELIFT FOR HEAVEN’S SAKE!
What a momrn, he gets 3 people killed trying to give out money in a strip club? BAD MOVE DUDE.
re: Ratatouille, the article’s author obviously never saw the movie. After seeing the movie with my 5 year old son, I was both intensely hungry and eager to learn more about cooking. Everything about the French restaurant was researched meticulously, and after buying the DVD, I even noticed such incredible unmentioned details like burn marks on the cooks’ forearms. This is one movie that immerses you in the world of a French restaurant and shows you food that, despite being CGI, makes you hungry for more. If you’d actually seen the film, you would understand why Le Monde had such incredible things to say.
I also have to take issue with your inclusion of Radiohead. Okay, so some 30-odd percent of people downloading the album paid an average of $6 per album. And yet, how much of that money went to Radiohead? 100%. If they had released through a record company, they would have only gotten a miniscule fraction of the exorbitant $16 record stores charge – and that’s even ignoring how many people pirate the album for free. I’m willing to bet that they wound up earning more overall from releasing online themselves than if they’d gone through a recording company, while maintaining ownership of their music instead of having to sign it away.
Actually, it was quite apropriate that 2007 was the year of the pig. Pigs are tradionally looked at as greedy. These companies are greedy. They just want to make money. And want better way then to have stuff made in China, where it is so much cheaper to do so.
Re: Damien Hirst: in the UK an artist can offset their material costs against tax, and £50m of diamonds is a *lot of material*.
In addition, the ‘unknown consortium’ that bought the piece reputedly includes one D. Hirst. Not very dumb at all.
It is not uncommon for “normal” words to be censored by “Nanny” web programs. Here in the UK we have counties such as Sussex and Essex, where the last three letters mean that a website is blocked by an over zealous “Nanny”. The town of Scunthorpe, strangely enough, gets through most times!
So OLPC rates #82 as one of the “dumbest ideas in business” because some Nigerian kids figured out how to use their laptops to find porn on the Web? Horrors. If only Fortune had been around in 1439 to ridicule Gutenberg for the “dumb idea” of the printing press, subsequently used for printing pornography. Perhaps they could have prevented the spread of printing, and of Fortune itself, meaning we would not have to put up with their snide put down of a worthy venture.
damien hirst making a critically well-received and popular work for $30m (most of which, as artists materials, is tax-deductible) and selling it for $100m is a dumb moment? It seems pretty shrewd both artistically and financially to me.
Radiohead.
At the same time as the pay what you like download a $80 (approx.) box set was offered. The band has sold 60-80,000 of these according to recent interview in a British Sunday paper. Do the math………
While the goat story is an incredibly dumb move on Sony’s part, the controversy about the use of Manchester’s cathedral in Resistance is not due to Sony’s dumbness, but to the sheer stupidity of the Church.
The story on Century 21 Realty is a classic. Most Realtors are morons who have little or no clue about economics. Their ability to sell greed is what trashed the American housing market.Do the country a favor, DONT USE A REALTOR
re:365 Main
How embarrassing for them. I’ll bet someone was fired over that blunder.
radioheads album was probably the smartest business move of the year. lets say those figures are accurate and only 38% payed for the download at $6. well, going through a label the band only makes an average of $1-$2 so they didnt lose any money there. and lets not forget that over a million albums were downloaded in the first day which is unheard of. and let us not forget about the immense buzz that the album and distribution method is receiving in the press. and let us not forget about the people who payed $80 for the discbox. and let us not forget that the album hasnt even been released in stores yet. how again was this a bad move?
Yeah, first of all, those figures for the Radiohead album have been confirmed as inaccurate. Second, 38% of TONS AND TONS of people handed over an average of six bucks. The people who payed nothing are mostly new fans or people who would have illegally downloaded it anyway, if message boards are any indicator. So, there’s only been gain on their side and massive gain, to say the least.
Stan O’Neill, just like Citigroup’s Prince and Home Depot’s Nardelli, et al, gets obscenely rewarded for his abject failure. What do the ML empoyees get? An announcement that more than 1% of their comp will be diverted involuntarily into “Business Development Accounts.”
Thanks Stanley
For all of the bright people responding to these topics, how do we take our country back? How do we get rid of the corporate excesses and wasteful politicians? How does the average hard working American get a fair chance similar to previous generations?
I think the airline did the right thing.Master Baiter come on.
I have grandkids what would I say if they me ask what that meant?Some common sense Mr passenger.I just flew on Jet Blue with two of my 11 grandkids.Very nice experience.
Calling a movie about a rat in a kitchen an excellent food film? Wow! How dumb!
Except, of course, to anybody in the world who has seen more than ten seconds of this truly excellent movie.
Are you even trying this year, Fortune?
The same 409 actual clickers also sent their money to the ad posted that reads “This is your last chance to send your dollars to…..”
To kareng
Actually Sony DIDN’T kill the goat for the party they paid a local butcher to use the dead goat, after which it weant back to the butcher who used it to make food (which is what it was originally killed for)
Wow! Maria Bartiromo is one hot chick!
—–
The new radiohead album is revolutionary in the sense that your are allowed to pay what you please. I mean sure they could of had every one pay $10 or they can have a way to draw in new fans who dont want to take a risk and buy a cd of a band they dont know.
Number 11: The Uno Attack commercial that states that while playing “you might get no cards” or “you might get AIDS.”
I have to add my name to this list because I actually read all of them. Next year, how about “10 Dumbest Moments in Business”? Then, actually find things that are true, dumb, and business related. You won’t have to waste time making things up; we won’t have to waste time reading this crap.
Ratatouille IS a foodie masterpiece.
What does it matter? It’s not like you can boycott China or even avoid buying necessities from China. There’s little or no choice. The Chinese can continue to produce sub-standard and dangerous products because the American consumer has no ability to take his or her business elsewhere.
Like many of the comments already, CNN/Fortune again shows how little they know when it comes to digital music distribution, and instead decided to try for a catchy headline with the ‘In Debt” comment. Radiohead came out far ahead of most musicians when it comes to their release of In Rainbows through the voluntary purchase option. Bands make money from touring, not cd sales, and yet Radiohead quite possibly made millions off this record, not too mention the almost unlimited free publicity the band received on news stations, blogs and podcasts because of this move.
They spent next to nothing on marketing or production, aside from recording the album in their own studio, and associated costs with servers for downloading. And the funny part is, the band will still be releasing this record and box set through traditional retail stores, which will only increase their earned revenue. If you were to compare your salaries at CNN to the amount of money the band members made off this endeavor, I think you’d wish you were that ‘dumb’ as well.
So please, do your research next time and have some common sense. Because right now, you’re just like the dying record labels, who are unwilling to accept new business models and new means of digital distribution. You’ll be left in the laughter sections of history when all is said and done. ~
Radiohead?
really?
You really should have done something like research before spouting off the one fact you read somewhere else in this failed attempt at being relevant.
Thanks for showing me I can’t rely on your magazine for consistant factual information.
Football coach Bobby Petrino needs to be added to the bosses behaving badly post.
Excuse me, but there’s nothing “dumb” about getting paid $161,000,000 for fiddling while Rome burns. If fact, it sounds brilliant…the company is screwed, and he’s laughing all the way to the bank. So obviously O’Neil is a brilliant man, or at least a great negotiator. I think it’s the Merrill Lynch Board of Directors that belongs here, not the man they hired.
# 2 Doggie Prozac – If you ever had a dog that had this problem, I’m sure you would be grateful for a solution, and better yet, an easy way to administer the pill. Unfortunately there are so many dogs that have this problem; did you see the dog in the sofa on AFV? Remember these are members of the family. All animal lovers get it.
# 23 Don Imus – For his comment, I remember that he got fired, apologized, has done a lot of thinking about it and now hopefully he can move on. My question, why do you feel the need to keep quoting the comment? Seems to me if I were one of those girls, I would think of a way to sue those who keep printing or repeating the quote. Yeah I know, FREEDOM OF THE PRESS, cry it loud and clear.
So Conan, David, Jay, I think this column would work for a monologue, but only if you quoted it. There are a lot of people out there who will never see this unless someone gets the word out, so please get the word out and keep it unbiased, I’m sure that’s how the folks at Fortune would like you to present this.
I think we can all agree that China has presented itself in a horrible light and some of its industrial practices can be compared to that of “the wild wild west of production” but the Scarier question that no one has asked is Where were the QUALITY CONTROL DEPARTMENTS that were suppose to overview these imports and protect the the general public? The stuff was not produce here but that is no excuse for not making sure that your products live up to safety and efficacy standards!
Boycott SONY!!!!!!!! Slaughtering a goat to promote a lousy video game is unconscionable. I hope PETA gets wind of this and eats that company’s lunch.
When you consider that most artists make $0.25 to $0.50 per CD, Radiohead is coming out WAAAY ahead if 38% are averaging $6 per download. Most bands make their money from touring, not CD sales.
#59: Radiohead
Wow. Fortune/CNN has fallen to new lows. I can see why the magazine is no longer as influential as it once was as your editors seem to be fixated on antiquated business practices that benefit mega-corporations. Even taking into account the factually dubious reporting by ComScore, the fact that the business editors at Fortune do not realize how much money an artist makes from a CD shows that they don’t actually know the record business.
In an industry that is designed to benefit corporations and not the artist …. Ah, that’s the problem isn’t it? Radiohead took money away from the corporations and put it in their pocket. Considering that Radiohead will never advertise in Fortune, but Sony/BMG/Arista/etc. or their parent companies might, it behooves you to play down the importance of Radiohead.
Good job corporate lackey!!!!!
You are dead wrong here as to Radiohead’s business acumen. Grab your old Econ textbook and look up “Price Discriminating Monopolist.” Then write your alma mater and demand your money back….as clearly their “product” is defective.
And you guys purport to be financial experts? I gave up CNN a long time ago, because I could find no intelligent commentary or analysis. Your Radiohead entry is another example of dumbed-down, zero sum, financial stupidity. Make sure, from now on, you subtract the advertising budget from a company’s estimation of worth. The higher the advertising budget, the dumber the company. Right?
Some people’s kids. Walks away mumbling……
This list itself should have made it on there. It’s pure sensationalism. I used to think I’d find actual relevant articles to the economic world here, but I’d definitely lost a lot of respect for Fortune for allowing this to be posted. Radiohead made an extremely smart move doing what they did. More people listen to their music? Check. Cut out the middleman and make a killing due to the much lower overhead as opposed to using CDs? Check. Get enormous amounts of free advertising? Check. They probably made more money than they would have otherwise. I started at the bottom and went up and stopped around Radiohead. I realized the list wasn’t going to get any better.
#70…Circuit City. The car dealerships have been doing that for years. Pay plans change constantly. The name of their game is let’s see how hard we can work you before you quit. I got out of the biz several years ago and kick myself for ever getting into it in the first place.
Everyone in management at C&D should serve a lengthy jail term followed up with a deserving amount of community service such as helping the poor whom they cheated and cleaning public restrooms and government buildings. Too bad the punishment can’t last more than their lifetime- hopefully God will continue their sentence. (The devil will probably be their boss in the afterlife)
It will be a lot easier to rid my life of Johnson&Johnson than to not side with the good the Red Cross has done worldwide.
These snacks are off my list. If they would even consider it, they do not have my best interest in mind.
I AM 43 YEARS OLD! MY MOM USE TO CLEAN THE THOMAS’S HOME AND IF HE WAS THE DEMON YOU ALL ARE MAKING HIM OUT TO BE. ASK HIM WHY DID HE WAIT SO LATE IN THE GAME WHEN HE WAS SURROUNDED BY BEAUTY?
Disneyland never announced that they were closing down small world due to fat people… just a Disney Blogger with no source, nice fact checking.
Where on the list did “online magazine expects users to click ‘next’ 101 times to read an article” appear?
Hey French magazine, wanna fight about it? Hehe. You lose.
#83
Meredith Whitney is married to a former WWE champion, but Death Mask was a gimmick he only used for a short time in independent promotions. His name is John “Bradshaw” Layfield, and I’d venture to guess that he is a little freaked out by the downstream effects of the subprime crisis on the world’s capital markets, because he also wrote a book on finances, “Have More Money Now” and works for Northeast Securities as Senior VP. Do not put down a pro wrestler, just because he is a pro wrestler, as not all of them are like Chris Benoit. Thank you.
Duh, how else would Bush have won 2 elections? We Americans aren’t that stupid are we?
Wow. It’s amazing how CNN has cut off this embarrassing (to itself) conversation about its blunder in reporting Radiohead’s 2007 experiment in such a snide and demeaning light. You’d almost think it was time to see if there was some deep, dark hidden conflict of interest that motivates them.
The Recall of Chinese Toys is misleading. Every single recall had been because of a design flaw created by a corporations engineers. Just because the Chinese make the toys doesn’t mean they’re responsible for the flawed instructions.
Like Martha Stewart, it’s not those who follow her recipes who should go to jail.
Re #51: Dumb and dummer at Apple, a cease and desist to a 9 year old, give me break. What about Thank You and keep buying! Shea O’Gorman may one day again out smart Jobs and have his job.
It isn’t the first time Circuit City pulled the stunt. In February of 2003 it laid off more than 4000 employess that made over $18.50 per hour average on commission when it switched from commission compensation to an hourly amount. I know, I was one of the 4000. And again, who were the one that were going? Oh yeah, the ones with knowledge. Duh!
I was very surprised not to see the TJX Data Breach listed here.
In January 2007, TJX, which owns Marshalls, TJ Maxx, and a few other discount retail chains, announced a major security breach, involving millions of credit card numbers, including 2 of mine. Apparently, the breach was discovered a month beforehand, during the Christmas shopping season, but they waited to tell their customers. I haven’t shopped there since.
While #36 *MIGHT* be true, they[Best Buy] do price match their own website.
Boston deserves one more mention. In February, Dr. Pepper launched a “Scavenger Hunt” promo, hiding coins in various US cities. Whoever found the coin won $10,000.
In Boston, the coin was hidden in the Granary Burying Ground, final resting place of people like Robert Paine. Outraged, mayor Menino closed the historic cemetery. Dr. Pepper ended up apologizing and having a random drawing.
The Boston Globe did a story about it.
Pathetic list, with often vulgar connotations. I expected more from Fortune.
RE: #1 of 101 Dumbest Moments In Business… It is almost impossible to find any product not made in China anymore.
As long as Americans are willing to give away their freedom and continue to vote for Socialism (Social programs and more and more government control over everything), and expect “Mother Government” to take care of them from womb to grave, we will have to expect higher and higher taxes to pay for the waste that government ALWAYS creates.
As long as we continue to allow more and more regulations forcing our employers to pay more for labor, more and more jobs will continue to be sent overseas, and less and less things will be produced here.
Even high-tech, phone support jobs are being routed to third world contries.
Meanwhile, back at the Farm, we allow millions of people to not only ignore, but actually blatently thumb their noses at our laws and flood over the borders, taking up the residual of jobs the displaced American workers used to have, driving down the pay, and increasing our taxes due to their burden on our school systems, our ever more crowded freeways systems, our affordabled housing, and not to forget, causing the closure of many Emergency Rooms!
If anyone should say the words “Illegal Alien”, or to suggest that government learn to spend less, we are called bigots, and blamed for taking care away from old ladies. Have people become so ignorant and blind as to forget that it is the taxpayer who is constantly burdened with paying for all of this?
Have we believed all the rhetoric about “evil Corporate America” to the point that we don’t realize that we ourselves are voting our own jobs overseas?
If an Employer’s largest cost is human resources, of course they will do what it takes to compete, or go out of business!
I myself had to go out of business, because my company could not bid against my competitors who used Illegal Labor, because I did not!
If Workmans’ Comp., and Liability Insur. etc. add over 75% to my labor costs, and my competitor bids the total job cost at less than the cost of labor, how can I compete? Do you really think their “employees” are “covered” by their Workman’s Comp. or Liability? If they are working “under the table”, how will they be covered?
China uses slave (prison) labor and breaks every environmental and labor law our companies must adhere to in the States. How can a company keep our jobs here and compete with that?
Do you care if your toothpaste has toxic chemicals, or your dishes give your lead poisoning?
Do you care that China imprisons Christian Pastors for sharing their faith, and forces Chinese young girls to have abortions after their first child?
Every time we contribute to having more products produced and exported here from China, our dollars support all of these things!
So, kiss your jobs goodbye. It won’t matter that you saved an extra $50 at WalMart if you’re unemployed! Give away our tax dollars to people who waste them on more and more social programs, and then blame the job creators and the tax payers who fund their waste!
Continue to look to “Mother Government” to solve all your problems and kick God out of more and more of public life. We cannot tolerate morality and honesty anymore. Why work hard if you can go to the Government to support you?
Welcome to the world you’ve voted for with your votes, and with your wallet!
Regarding Southwest Airlines and its response to the “provocatively dressed woman,” you forgot to mention that during her appearance on the Today show, she wound up flashing the crotch of her panties at the camera…thus showing exactly why Southwest was asking her to cover up.
#51 (Apple asking that they not receive unsolicited product ideas) is not a “Dumb Moment”. This is standard practice for companies to not accept unsolicited ideas and then being sued for “stealing” ideas.
This is where I stop reading this list. Finding a practice that any smart company does and then slapping it with the Apple logo doesn’t make any sense. It’s poor, sensationalistic journalism.
#32: If I can remember correctly, I think it was P Diddy with the dog fur in his Sean John line, not Jay-Z and Rocawear.
Radiohead’s decision to distribute their album on the internet for free is hardly a poor business decision. They’ve already had 6 extremely successful albums, and are currently considered the biggest band not signed to a record label. Back when their last album, Hail to the Thief, was released, they actually encouraged people to download it off the internet. They’ve shown that they don’t really care about the money, so much as they do about people listening to their music. Besides, bands receive a mere pittance from record sales. The big money comes from touring, and the more exposure their albums get, the better. Not to mention the fact that, even if they only got an average of 6$, theres been a reported 1.2 million downloads. 38% of 1.2 is 456000. at $6 each, thats, thats 2,736,000. In order for an artist to get that much at a 10% royalty, they would have to sell around 1.9 million cds. How often does that happen? Not very
The Radiohead move was NOT dumb. Radiohead managed to make more money from giving away their album for whatever people wanted to pay for it than they would have made had they stayed with their record label and would have been forced to give up the majority of their proceeds.
I happen to work in the music industry. The Radiohead move was hailed as brilliant and many artists are now copying what they’ve done.
That hardly sounds dumb to me…
Of course, I suppose magazines like Fortune assume that where a corporation isn’t making money, then it must be a bad thing. The band did what was right for them, and they should be applauded for it, not criticized.
#50 – And our congress keeps giving this war an endless supply of money why? Can’t these folks scamming our nation be tried as traitors? That is our money they’re stealing, our war they’re sabotaging and our soldiers they’re swindling.. I’d say it’s a good enough reason to have them sent o an all-expenses-paid and open-ended vacation to Club Guantanamo.
re: # 59 – Radiohead’s internet sales…
Huh?? How is that a dumb moment? This is supposed to be a business magazine?
Let me break it down for you: Radiohead sold 1.2 million downloads at an average payment of $9 (4 pounds), which means, at a material cost of ****ZERO****, they made 9 million freaking dollars!!
http://drivebymedia.wordpress.com/2007/10/12/raidiohead-in-rainbows-nets-estimated-9-million-usd/
And they haven’t even sold any physical copies of the record yet.
If that’s a dumb moment in business, everyone who is trying to make money on the internet needs to get dumber.
I still think #21, the Cartoon Network promo, was hilarious and not at all a stupid move. The city’s police had all the information they needed but still over-reacted.
re: # 21 -
a) Actually this resulted in an incredible amount of free publicity for the show “Aqua Teen Hunger Force”
b) I don’t think it’s really the Cartoon Network’s fault that the Boston police force freaked out. They ran the same campaign in LA, SF and NY, and these other police departments all managed to hold their water when threatened with what was basically battery-powered lite-brites.
http://en.wikipedia.org/wiki/Aqua_teen_hunger_force#Boston_bomb_scare
I was wondering who was printing up all that money these guys were making. I guess the answer was…NOBODY!
I have a friend who purchased from Walmart two cat food dishes from China. Her cat would not eat off them. When she put them close to her nose, they smelled so bad she threw them away.
It seems China is trying to rid themselves of us with their trade products.
“Made in China” products are causing so many troubles but I am still surprised to see that there are enough buyers; why?
Hard to argue with Chavez regarding #80 – Juan Carlos is King of Spain today because of Francisco Franco, whose Fascist (well, Falangist, but no difference) credentials were solid right up to the minute he died.
Um, in what way is the review of “Ratatouille” a “dumb business move”? The review is correct, and in fact the film is another Pixar masterpiece, one of the best movies of the year. I fail to see how this item got anywhere close to your list, and if you think the idea of a rat cooking in an animated film is “gross”, apparently you haven’t seen the movie.
Who cares if a multi-billionaire spends his money on a huge and expensive airplane? Why is that on the “101 dumbest moments” list? And the Blue Jays ad had only a few complaints from the “real” dumb people and was back on the air after people realized it was funny. This list used to be good…not “dumb.”
Why is it that every mainstream story about recalls from China fails to mention that the reason for almost 90% of the recalls is DESIGN FLAWS from the Western companies that place the orders. The problem ISN’T China, they are just completing the order to the specifications. The specification are the problem, and they are produced by the America, European, Canadian, or Australian companies. It seems that the intent is to foster xenophobia instead of inform, talk about a worthless “press”.
Wow, lucky Merrill Lynch CEO Stanley O’Neal and that measly $161.5 million golden parachute. Just think how many jobs he eliminated and how many people that money could have fed, clothed and housed. It’s a good thing that these CEOs reaping the big bucks don’t have to worry about an afterlife…they’d be in some deep…um…stuff. The Almighty Dollar, god of the New Age!
Ratatouille was an excellent film. Just because it’s animated doesn’t make it unworthy. Here’s a suggestion for Dumbest Moment in Business 102: In a fit of pretentiousness the Editors of Fortune rank an article in Le Monde praising Ratatouille as “one of the greatest gastronomic films in the history of cinema” as Dumbest Moment in Business #9..
With respect to #21, the Cartoon Netwoork appears to me to be less culpable than the authorities in Boston, who grossly and hysterically overreacted to pretty innocuous gadgets. Remember that these things were placed in several major cities including Chicago, and were recognized as harmless, and quietly and painlessly removed everywhere but Boston.
So he called someone a nappy headed ho. Rappers say Nigger and Cracker and “Kill Police” all the time. Maybe they were just a bunch of nappy headed hos.
re: #8, actually, “Ratatouille” was a fine film, made Pixar plenty of money and Le Monde was certainly right to call it a great gastronomic film. The fact that it involved a rat in a kitchen is an example of ‘comedic irony’, which you may wish to look into.
boycott china…and corporations that dont have a social conscience who put $$ over social values and drag these goods into our marketplace
#13 isn’t true. Makes me think that the rest of the list isn’t all that accurate, either.
Obviously the editor has never seen the destruction a dog with separation anxiety can cause!!! 2walls, a banister and wall to wall carpeting replaced, and now they come out with the Puppy Prozac! Could they have come out with this sooner????
As a Merrill Lynch customer, who has invested a lot with them, you can imagine how truly steamed I am about this destroyer Stan O’Neal walking away with $166 million. Where do you think that money came from? Me and all their other fools of customers. I hope he rots in hell.
This shows the ignorance of some editors to label being able to give dogs Prozac as a dumb moment. Try speaking to a veterinarian and find out how many pet owners have been able to keep their animals alive due to something as simple as Prozac. CNN/Fortune please do a better job in screening your articles for sanity.
#21. Because in America, if it’s not an American flag, then it’s probably a bomb.
It shows just how pathetic the county has become.
I know this has already been brought up, but it is such a blunder and makes me so angry that I couldn’t help joining in the yelling.
Radiohead’s experiment with its “In Rainbows” album was not only quite profitable for them *and* very well received by consumers. It is also a great example of somebody trying to change a backwards and stale industry that daily alienates and bores its customers.
I don’t know which would look worst for you as a publisher, that your writers/editors failed to see how wrong this item was, or that Fortune doesn’t have the journalistic integrity to resist pressure from its media conglomerate parent company.
Obviously an editor doesn’t have a dog with separation anxiety. Our adopted Beagle cried all night until we got her on a presciption for her anxiety. What she wanted was to sleep on the bed with us, not on the couch.
The Cartoon Network promotion of their show was NOT a bad business decision, the “bomb scare” was a total over-reaction from Boston public safety officials
#22– Scottish funeral home
What can I say? We Scots have a well-deserved reputation for being practical and thrifty.
#9 – Hummm, I don’t get it. Gastronomy is the study of relationship between culture and food. If this item made it to number 9 on your list because you think the idea of pairing a rat with cooking is “gross”, then you obviously haven’t seen the movie.
I agree with the bellow comment. Ridiculous that this qualifies as a dumb moment and only exposes the relationship that a traditional business pub like CNN Money has with the traditional corporate environment. This placing Radiohead on this list only shows your (because hip new business people don’t read CNN money to get ahead thats for sure) and the companies you are bed with’s fear of a newer more artist-centric business model.
Radiohead’s independent release of their new album over the internet hardly qualifies as a dumb business moment.
It netted the band more money than they would’ve seen from a conventional release. What’s dumb about that?
Fortune, shouldn’t you be more perceptive of the threat to the old model of the recording industry?
Radiohead actually were paid for 1.2 million copies at an average of $8 per copy. That is $9.6 million dollars. Hardly a DUMB idea.
Radiohead bucked the trend by releasing In Rainbows for whatever price they wanted. They rid themselves of their label and made more money on the album then they would have releasing under a label. It was a very savy move and does not deserve to be on this list.
I don’t understand the Intel entry for the sprinters. This is no more offensive than the WaMu checking commercial where all the “greedy, rich, white guys” are dreaming of cash and snoring “money, money, money”. Then the black guy saves the day by entering one of the guy’s dream with WaMu free checking. That commercial offends me. Typical double standard.
To call Radiohead’s ‘pay what you like’ experiment one of the 101 dumbest moments in business seriously undermines your credibility, and does your readers a disservice. While only ‘38% fork over an average of 6 bucks’ makes it sound like the experiment failed, you fail to mention that, without any record label raking off the vast majority of the money paid, the band actually made much more money than they would have otherwise. The real business story here is that Radiohead demonstrated that there was no obvious value that a record label could offer them. If I weren’t in the practice of presuming others’ best intentions, I would think this exposes your organization’s status as a front for corporate shills.
I certainly hate to defend O’Neal, but were the golf games work related? If he was trying to negotiate important deals in a traditional venue for informal negotiations, then I wouldn’t hold the golfing against him. The severance package is completely fair game.
Making fun of Pixar, on the other hand, is just plain ridiculous. That was a very cute rat. It was at this point that I lost faith in your judgment, and interest in your story.
I can only assume that businessmen were extremely smart this year, if you have to start making unwarranted fun of Ratatouille as early as #9.
I’m not sure why Radiohead is on this list. The intention here was not a brilliant business move to make lots of money, so if 62% of people paid nothing, it shouldn’t be looked at as a “dumb business move”. They were challenging the norms of the industry and were successful in that regard.
We have heard all the scary stories of the recalls of China-made products, but do you ever notice why no American companies have ever claimed damages from the Chinese factories? If the factories did not deliver what they have agreed on the contract, they are liable for the defective products. However, it seems that the factories just did what they were told, it was the designs and specifications from the American importers which caused the many problems.
how did Jeff Edwards pass business school and become a CFO for any company?
Sounds like this guy can’t tell the difference between a nickle and dime…as the old expression goes
“Don’t try to nikle and dime me Edwards!”
#46, Johnson & Johnson suing the Red Cross, demonstrates the absolute stupidity of some lawyers — and, corporate executives that approved the suit!
In regards to the Cartoon Network shenanigans, it was the officials in Boston that overreacted. It’s clear now that they decided to label the incident as a possible terrorist threat when there was obviously no real danger to anyone. None of the other cities that received this kind of marketing reacted in this manner at all. The entire affair was a waste of taxpayer’s money to put up a false sense of security and to validate next years anti-terrorism budget.
Whats really scary about this incident is the fact that the company behind it was able to pay a cool $1 million to be absolved of any wrongdoing while the college students they paid $10/hour to carry it out still had to face criminal charges. Why do we allow the corporate executives that commissioned a “crime” to buy their way out of responsibility while continuing to prosecute its lowest employees who believed what they were doing was legal?
As it pertains to Intel and the black runners: No doubt many saw the problem but because of group think in the corporate culture no one said a thing – could you imagine the career impact of a black person saying to management that he/she was offended?
Wait until you see how many dogs start taking Prozac…you may think it’s stupid, Lilly will laugh all the way to the bank.
I’m not sure I believe #51 – Apple and unsolicited ideas.
Apple have a web site where people can comment on their products ( http://www.apple.com/feedback/ ), and a specific policy regarding unsolicited policies ( http://www.apple.com/legal/policies/ideas.html ).
Ultimately they welcome ideas, but state that any submissions become their property.
Re: radiohead
Since when is it a crime or a stupid idea to offer your fans the option to pay only what they see is fit for something you already make a killing off of anyway? The record companies steal enough money from the average music listener as it is.
I would put it on a business “Proudest Moments” list.
Do your research…the Cartoon Network post about Boston actually took place in many major cities in the US. Boston was the only one that freaked out for whatever reason.
What’s wrong with medicine for dogs? They can be very neurotic and antidepressants have been used successfully for years on animals. If they can make it easier to take, what’s dumb about that?
Re: radiohead…
Artists typically get 10% of cd sales (maybe $1.50/cd). If radiohead received an average of $6/cd in 38% of the population that downloaded their album and 62% paid nothing, then that would mean the band virtually made $2.28 on average per download seeing as how there are no labels or middlemen, retailers, etc. to pay. (although they still doe have to pay writers, producers, engineers, etc. so it is likely a bit less than $2.28.) In addition, it is obvious that many more people would download the album than would buy it in the store, so surely the gross number of “sales” increased leading to higher revenues. All in all, this was anything but one of the “dumbest moments in research.” It was rather brilliant (and very simple).
Whenever I read these stories coming from our southern neighbors and how many millions (soon the word million is becoming thing of the past as it has been replaced by 3 more 0s) gone and going down the drain every day for only few people who’s main pre-occupation having golden faucets, buying and stocking-up thing that 99% of the time they don’t use, I say “bless Che, Ghandi and Martin Luther” we need more of these souls to show the rest how stupid this planet is, we have long way to go still, capitalism is cruel.
How does this in any way show that “payback is a bitch”? It does give some kid a chance to type the word “bitch” but the mere fact that Stanley was fired is sort of meaningless given the millions he carted away. Or is the reference to the fact that paying back the lost money will prove to be a “bitch”? Oh well, why ponder it? It’s just a juvenile headline.
I used to be happy and enjoyed working for a Fortune 100 company. Was moderately compensated but I love what I did and who I did it with. I had NO PLANS to leave. One day in December of 2005 I, along with 900 other associates were shown the door. Merry Christmas. In the two years since that fateful day, I bought a franchise that didn’t turn the corner and now I’m working for 50% of what I used to make for a small company and for people I don’t have much respect for. My credit score is in the toilet now from a height of over 760. My other half is working 14 hours a day 7 days a week to keep us from losing our home. I’m killing myself working and trying to get back to waterline as well as find a company that will give me a chance to show my value.
Then I read where slobs like O’Neal make incredibly poor decisions and play golf incessantly while their company is in real peril. Then he retires and gets $161.5 million as a parting gift. This is nauseating. How can we tolerate this kind of abuse in this country? The vast majority of this country is filled with people who want to work hard and get paid fairly for their efforts. Stories like this deflate that spirit and make me wonder what the hell is wrong with a country that talks about the American dream then delivers these nightmares on a frequent and regular basis.
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#51: CNN is completely wrong on this one (Apple turns down a consumer’s product suggestion).
Having worked in several very active R&D departments in highly competitive industries, I have seen that it’s not uncommon for sonsumers of very popular products to write to the manufacturers with suggestions for new products or improvements to existing ones. Under these circumstances, it’s not unusual for such a suggestion to be close to something that is already in internal development. In cases like this, a company could face a lawsuit from a suggestor claiming that her idea was stolen by the company for profit.
Under these circumstances, it is routine for the legal department to send a form letter similar to the one received by the young Ms. O’Gorman (her age probably did not figure into this).
In the long run, it is better for companies with a heavy R&D commitment to reject outside suggestions out of hand rather than face lawsuit after lawsuit.
Judging from the other comments here, it seems as if the 102nd Dumbest Moment in Business was compiling this list.