What is the legendary CEO who lost about 200 billion yen in just one word?
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As a result of the popularization of SNS such as Twitter in recent years, it is possible to directly know the remarks of celebrities such as CEOs and talents. However, some CEOs have lost nearly 200 billion yen as a result of speaking freely.
How Gerald Ratner lost $ 1B in 10 seconds
https://thehustle.co/gerald-ratners-billion-dollar-speech
Gerald Rutner's prosperous business career was in 1965 when he was 15 when he was released from grammar school because he was 'too stupid' and started working in a small jewelry shop run by his father Start. Ratners Group, which Mr. Ratner inherited after his father's death in 1984, had 120 stores in the UK, but it was 350,000 pounds a year (approximately 67 million yen converted to Japanese yen at the time of article publication) It was producing a deficit.
It was during this time that Mr. Ratner's excellent management skills were demonstrated. Mr. Ratner, who knew that “the store with the most voice and the most eye-catching exhibitions was the best selling” in the street market in London, “Last Chance!“ Megared Star ”is on sale!” “Extra Large 'Sale: Half price for all items!'
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In addition, Mr. Ratner has pushed down the price of jewelry that the average person could not get out of hand at an average price of 300 pounds (about 100,000 yen converted to Japanese yen at the time of article publication). Earrings, bracelets and rings were sold for only £ 20.
As a result, the Ratners Group has greatly increased its sales, reaching 2,000 stores in 1990. As a result of several successful acquisitions, Ratners Group has become one of the largest companies, accounting for about 50% of the UK gem market. Mr. Ratner's remarks at that time, “I felt like I could never fail,” are also recorded.
It was in 1991 that a legendary incident that became a storytelling until later years occurred. Mr. Ratner, who was in charge of giving lectures at the annual meeting of the Institute of Directors , an association where CEOs and senior executives of companies of all genres interact and sometimes also make policy recommendations, consulted consultants about the contents of the lectures. The The consultant advised Mr. Ratner that 'should be a joke' and Mr. Ratner listened seriously.
On the evening of April 23, 1991, Mr. Ratner's speech was titled “Value of quality, consumer choice and prosperity”. The remark of the problem was in a joke about three minutes at the beginning of the speech. “The Ratners Group is not a representative of a successful person. If you think about it, quality doesn't guarantee success. Our company has six glasses on a silver-plated tray. it offers 4.95 pounds Sherry Sakeyo decanter with a set of (about 1600 yen). it may be often asked, 'I wonder why is it so cheap?', but it says a completely because it's crap. ' The
Mr. Ratner's actual speech is left in the video and can be seen from the following.
Gerald Ratner speaking at the 1991 Institute of Directors Annual Convention-YouTube
The next morning, the headline of the British luxury paper Sunday Times was a sentence 'Jewelry CEO calls his product junk'. Ratners Group's stock price fell 80% as if following the report, and gains and losses from stocks were just £ 500 million in just a few days (approximately 190 billion yen converted to Japanese yen at the time of article publication). The customer made a non-buying campaign against Ratners Group, hundreds of stores were closed, and the majority of 25,000 employees were fired.
In November 1992, Mr. Ratner, who was dismissed as the CEO of Ratners Group, sold off all his holdings and repaid all the debt of about 140 billion yen. And lost all assets. Even today, the phrase “Doing a Ratner” means “in the UK, you say something like losing your customers”.
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in Note, Posted by darkhorse_log