In a recent interview with FOX Business, Kevin O’Leary, a well-known business owner and investor, discussed the mistakes big companies have made in America. He cited Target (NYSE:TGT) and Anheuser-Busch (NYSE:BUD) as examples of what he called “idiot management” and a complete “inability to read the room.” O’Leary said these brands didn’t listen to their customers – and paid the price.
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O’Leary discussed how Bud Light faced a huge backlash after a marketing campaign that failed to connect with their key customers. Now in business schools it is an example of what not to do.
For O’Leary, the mistake was simple: Anheuser-Busch misjudged its customers and completely missed the point of what appeals to them. The result? Falling sales and a setback that no beer company has ever experienced before. O’Leary describes it as a “combination of idiotic management and an inability to read the room.”
Target also did not escape O’Leary’s criticism. He talked about how Target made a similar mistake when it started promoting gender identity products, which upset many of its regular customers. “What mother wants to take their kids there and deal with gender identity and underwear?” O’Leary asked, noting how these decisions turned off some parents. The result? A big drop in sales and according to O’Leary, Target still hasn’t fully recovered. He said the company never really apologized, but that didn’t matter: the market “crushed them” for it.
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O’Leary’s advice to business leaders is clear: Bad decisions must have consequences. He said if he were on the board, he would want to know who made these choices and make sure they face the consequences: “That’s how we did it 20, 30 years ago,” O’Leary said, adding that Companies need to go back to basics: listening to their customers and understanding what they want.
