Manufacturing products that are not in high demand can lead to several potential pitfalls. Firstly, it can result in excess inventory, which ties up capital and can lead to increased storage costs. Secondly, it can lead to wasted resources, including time, labor, and materials, which could have been better utilized in the production of high-demand products. Thirdly, it can negatively impact a company's profitability and cash flow, as the sales of low-demand products may not cover the costs of production. Lastly, it can also affect a company's reputation, as it may be seen as out of touch with consumer needs and trends.
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Chairman and CEO of the Walt Disney Company, Robert Iger, tells his story and lays out the principles that successfully guided the legendary brand thr...
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Tom Murphy and Dan Burke, who bought ABC in 1985, taught Robert Iger that true integrity – being guided by your clear sense of right and wrong – can be a secret weapon in a competitive business. In Iger's words: "The way you do anything is the way you do everything." Iger still has a note that Dan Burke handed him early in his career: "Avoid getting into the business of manufacturing trombone oil...the world only consumes a few quarts of trombone oil a year!" In other words, only invest in building things that people need. When Disney's board was considering Iger to be the new CEO, they questioned how he could be trusted when he'd been Michael Eisner's number two throughout several poor business decisions. Iger refused to rehash the past and determined to focus on the future: "You want to know where I'm going to take this company, not where it's been. Here's my plan." Relationships at the top matter. Former CEO Michael Eisner and company President Michael Ovitz constantly clashed. This...