The recent Blowup about HP exiting the PC/WebOS Business reminds me of an old story about when Sony bought MGM, the movie makers.
The story goes like this; executives were briefing Sony Management about how profits were generated from the Movie Making business. One accountant described the process such;
“Well we make a hundred movies a year, about 10% are Blockbusters and we make millions, 60% make a modest profit, and pay for themselves, and the about 20% Lose a small amount, but help maintain our reputation, and then there are 10% that are serious bombs.”
The Japanese executives looked at each other and carried on a small side conversation and then stated;
“We only want to produce Blockbusters”
HP is like this, they only wanted to produce Blockbusters, as if this was merely a simple decision, “We only want to make Blockbusters”. As if there was no effort involved, no trial and error involved. And when the first effort fails, quit and run from the first attempt as if shedding the failure is the only responsible choice.
And I thought that the Executives of Sony and Nokia were failures, Looks like there is a Plague of idiot CEO’s out there.
NOTE 1: It looks like bad decisions MIGHT have repercussions as HP might oust Apotheker