From 737s To Sneakers, It’s The Same
Sad Story
Forbes,
by
Gautam Mukunda
Original Article
Posted By: Christopher L,
10/21/2024 1:20:08 PM
The CEO of a legendary American company steps down after a series of reverses. His company used to dominate its industry, was the leader in innovation, and succeeded so massively that it became an icon of American success. Despite this track record, it had turned to an outsider with a financial background, but no experience in, or passion for, the industry when it hired him. The new CEO focused on cost-cutting and squeezing profits from older products instead of making the investments necessary to invent new ones.
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Reply 1 - Posted by:
sw penn 10/21/2024 1:36:09 PM (No. 1817311)
When you're married to the status quo
you ignore the sags and wrinkles as long as you can.
Then you build lobbyists around it to protect it.
Until it simply just falls down.
Then you collect a few mil
and move on to the next
Capitalism, innovation, dynamism, is verrwy scarrrwy...
7 people like this.
Reply 2 - Posted by:
Rat Patrol 10/21/2024 1:55:22 PM (No. 1817319)
They signed Caitlin Clark and then did nothing ,Wilson signed her and developed products around her and it sells out in seconds.
Nike must not like straight white female generational stars..
19 people like this.
Reply 3 - Posted by:
Lucky5 10/21/2024 2:14:16 PM (No. 1817324)
pandering to the woke, cancel culture, DEI and lbgt crowd backfires on this idiots.
15 people like this.
Reply 4 - Posted by:
Strike3 10/21/2024 2:15:09 PM (No. 1817325)
It worked when Michael Jordan wore the shoes but Nike went full woke...you know the rest of the story. It's sad but I'm going to laugh heartily when it happens to hollywood.
14 people like this.
Reply 5 - Posted by:
crashnburn 10/21/2024 2:38:21 PM (No. 1817332)
#4, it's already happening in Hollyweird. I.e., Star Wars couldn't be any more 'Woke'!
8 people like this.
Reply 6 - Posted by:
LC Chihuahua 10/21/2024 3:14:21 PM (No. 1817343)
I can think of two other companies that this story applies to.
This is how looters run a company. They don't care about their products, their customers, their employees, and ultimately the company itself. Reminds me of a saying, 'First came the innovators, then came the imitators, and then came the idiots'. Business is extremely competitive. It's hard to stay at the stop. It takes smart driven people who are NOT idiots. Do you think they want to work for a bunch of looters?
9 people like this.
Reply 7 - Posted by:
Schnapps 10/21/2024 4:48:12 PM (No. 1817387)
D on't
E xpect
I nnovation
8 people like this.
Reply 8 - Posted by:
skacmar 10/21/2024 6:37:58 PM (No. 1817430)
The problem is not always just the new CEO or President who decides that the founders vision is no longer needed. Once the company becomes "public" or large, there is often a Board of Directors to contend with. What may have been a company that was run with conservative values now has to answer to a group of people with different ideas on how they think the company should grow. Many times they are wrong, but as "the Board", they have control and over rule the founder or push the founder out. The company then loses its identity and vision and flounders and everyone wonders why.
0 people like this.
Among all those companies one constant appears: increasing profits by cutting costs, cutting quality and cutting management focus on “product quality”.
The great companies were created by creating high quality products or services and making that the strongest pillar of there efforts.
Once the “MBAs” took control and changed the focus to “penny pinching” and growth through “mergers and acquisitions” the QUALITY” suffered and great companies faltered. We have seen this happen over and over.
Buy quality products and buy stock in companies that stress quality - they are most likely to succeed.
3 people like this.
Reply 10 - Posted by:
Venturer 10/21/2024 8:55:25 PM (No. 1817472)
harley Davidson made the same mistake. Hired a woke German, and is now paying the price.
1 person likes this.
Reply 11 - Posted by:
padiva 10/21/2024 9:07:00 PM (No. 1817479)
I can't read the article. i won't remove my ad blocker.
Is this about Nike?
I used to work for a nation-wide retailer. They stopped carrying any Nike products because of the high 'shinkage.'
2 people like this.
Reply 12 - Posted by:
JackBurton 10/22/2024 9:25:51 AM (No. 1817705)
Read up until they impugned the management of Jack Welch. What broke GE was his selection of a successor who chose to make cheap money off high risk loans...and wokeness. That manager was in deep with the Obama WH and it's 'Green' agenda.
We all know Boeing was doing well until the DEI related quality problems. Selah.
As to Nike, bad marketing decisions? But hardly a philosophy of short term thinking. What has really hurt companies is Sarbanes Oxley. Before S.O., a company would not have to report ALL of its earnings immediately but could choose to recognize some earnings in a subsequent quarter or two... smoothing out the performance of the company and provided less of a sugar high from a good quarter. S.O. made that criminal. it should be repealed.
0 people like this.
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The author should have mentioned GM, Stellantis (Chrysler), Sears, and a few more.