elfinblaze (![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
elfinblaze) wrote2012-12-10 06:41 pm
elfinblaze) wrote2012-12-10 06:41 pm
Entry tags:
How Not To Run A Business
Who wants to hear a story about how not to run a business?
There used to be A Medical Supplier near my workplace, which was handy because we could drop by in person to pick up supplies and we didn't need to pay for freight. Especially because the only other supplier in the state - let's call them Nice & Good Supplier (N&G Supplier) - was out in the middle of Tumbleweed No Where. So we were very happy with A Medical Supplier.
Until American Juggernaught decided to come in and monopolise the medical market. They bought A Medical Supplier along with all the warehouses and staff across the country (not to mention several other companies). Over the course of a few months American Juggernaught decided to implement some changes. They shut the Sydney warehouse, despite the fact that this is the most populous state in the country, so all goods had to be shipped from interstate. They made most of the old staff redundant, despite their experience. They moved the remaining staff and offices into a different part of Sydney, complete with new phone and computer system that took a while to get off the ground, which made all their customers cranky because no one could get through to them to place orders. It was a mess for a while.
In the meantime, the savvy guy who runs the N&G Supplier saw his chance, and pounced. He moved out of Tumbleweed No Where into the old warehouse space of A Medical Supplier in suburban Sydney. He then re-hired all the former staff who had been made redundant from A Medical Supplier, along with all their years of experience.
So now all the old staff are in the same place they were before, operating out of the same offices, just with a new boss. A Medical Supplier on the other hand has succeeded in alienating their entire customer base. Guess where everyone is shopping now?
A Medical Supplier doesn't like this. A Medical Supplier has now decided to sue not only N&G Supplier, but all the old staff they made redundant in the first place! A Medical Supplier is clearly full of hot air and no court in the land will side with them, but it's a huge waste of time and money for everyone that has to defend themselves now.
The lessons that can be learnt from this? Be smart with your business. It shouldn't be that hard. Do your research and don't treat people like idiots. Don't be arrogant (see also the American movie studios vs iinet case, the Burger King vs Burger King case, etc). Small Australian businesses might not have a lot of money or resources, but there's this idea of "the little Aussie battler" for a reason, and they will fight to the death for every right Australian law grants them, and they have a history of winning (see the above cases).
Because egg on your face is never a good look.
There used to be A Medical Supplier near my workplace, which was handy because we could drop by in person to pick up supplies and we didn't need to pay for freight. Especially because the only other supplier in the state - let's call them Nice & Good Supplier (N&G Supplier) - was out in the middle of Tumbleweed No Where. So we were very happy with A Medical Supplier.
Until American Juggernaught decided to come in and monopolise the medical market. They bought A Medical Supplier along with all the warehouses and staff across the country (not to mention several other companies). Over the course of a few months American Juggernaught decided to implement some changes. They shut the Sydney warehouse, despite the fact that this is the most populous state in the country, so all goods had to be shipped from interstate. They made most of the old staff redundant, despite their experience. They moved the remaining staff and offices into a different part of Sydney, complete with new phone and computer system that took a while to get off the ground, which made all their customers cranky because no one could get through to them to place orders. It was a mess for a while.
In the meantime, the savvy guy who runs the N&G Supplier saw his chance, and pounced. He moved out of Tumbleweed No Where into the old warehouse space of A Medical Supplier in suburban Sydney. He then re-hired all the former staff who had been made redundant from A Medical Supplier, along with all their years of experience.
So now all the old staff are in the same place they were before, operating out of the same offices, just with a new boss. A Medical Supplier on the other hand has succeeded in alienating their entire customer base. Guess where everyone is shopping now?
A Medical Supplier doesn't like this. A Medical Supplier has now decided to sue not only N&G Supplier, but all the old staff they made redundant in the first place! A Medical Supplier is clearly full of hot air and no court in the land will side with them, but it's a huge waste of time and money for everyone that has to defend themselves now.
The lessons that can be learnt from this? Be smart with your business. It shouldn't be that hard. Do your research and don't treat people like idiots. Don't be arrogant (see also the American movie studios vs iinet case, the Burger King vs Burger King case, etc). Small Australian businesses might not have a lot of money or resources, but there's this idea of "the little Aussie battler" for a reason, and they will fight to the death for every right Australian law grants them, and they have a history of winning (see the above cases).
Because egg on your face is never a good look.