Transforming failure to success
Category Commercial and Industrial News
"Mistakes are a fact of life. It is the response to the error that counts." These words from Nikki Giovanni, an American poet, draw attention to the fact that mistakes can be seen as opportunities rather than dead ends. The stories of the Ford Motor Company, Starbucks and Relude show that with the right approach and a positive attitude, mistakes can be transformed into epic success stories.
On the road to success
When Henry Ford joined the Detroit Automobile Co in 1899, the company was producing cars that were of low quality and too expensive for most would-be motorists. By January 1901, the business had folded, having built just 20 vehicles and wasted $86 000 - a colossal sum at the time. The important thing about this failure is that it did not mark the end of Henry Ford's ventures in the automotive industry.
Just two years later, on 16 June 1903, Ford founded the Ford Motor Company and, armed with the lessons that he had learned from his experience at the Detroit Automobile Co, began the trajectory that would lead him to still be a household name over a century later.
Since his Detroit Automobile Co days, Ford had gained publicity by designing the 26-horsepower Sweepstakes and beating Alexander Winton's 70-horsepower Bullet in a race at the Detroit Driving Club. As his name became increasingly known among car enthusiasts and manufacturers, the foundation for Ford's success was created, and in 1908, the world-renowned Model T Ford was launched - this time a masterpiece of quality at the right price.
Putting the star back in Starbucks
By the time the financial crisis of 2008 hit, Starbucks had been brewing coffee for well over 30 years. Unfortunately for them, this legacy didn't prevent the bottom line from taking a massive hit. When consumers started tightening their belts, pricey coffees were among the first things to go. Between 2008 and 2009, Starbucks was forced to close 900 stores, and thousands of employees were retrenched. Around this time, former Starbucks CEO, Howard D. Schultz, returned to the company after an eight-year hiatus. His observation was that during the massive expansion that the company had undergone, they had lost their focus on making their cafes inviting places that offered innovative products.
The first thing Schulz did upon arriving back at the helm was to insist on a focus shift from bureaucracy back to customers. Management developed a corporate culture in which employees were encouraged to think freely and contribute ideas, which led to a sense of community within the company. Through the "My Starbucks Idea" campaign, this invitation to share ideas was extended to customers, and the implementation of some of these ideas led to the creation of a strong social media following and a revitalised customer base.
If at first you don't succeed, try, try again
Many inventors have failed on their first, second and tenth attempts. Persistence has been the key to success for many companies, and a great example can be found in a gaming company called Relude. The small Finnish gaming studio had let most of its staff go in 2009, and was teetering on the edge of bankruptcy, with 51 failed games to show for their efforts. With the then-recent release of the iPhone, the team turned their attention to creating a game that would be ideal for this platform. The business changed its name from Relude to Rovio, and their 52nd game, Angry Birds, needs no introduction.
Whether a company's mistake has been to overprice a product, shift the focus away from customers or not develop quite the right commodity, success can be just one move away. Ensuring that you have the right premises is an essential move for every company. Contact 3Cube Property Solutions today about your new commercial or industrial home in Gauteng.
Author: 3Cube Property Solutions
