History History 4 min read

Even biz wizards fail sometimes

What brought Sears down? 10 mistakes from giant companies

Image: Melinda Gimpel

As Dr. House once said, mistakes are as serious as the results they cause. And, in the case of big companies, those mistakes can be just as big, often measured in terms of lost jobs and money. From poor marketing decisions to small mistakes that cause multi-million dollar losses, the types of blunders made by some of these companies and individuals are nothing short of breathtaking— and not in a good way. Take a look at the following 10 stories of failure. Did you know any of these?

1
$125 million for a Grade-school math error

Image: Aaron Lefler

Imagine losing a hugely expensive spacecraft due to a simple mix-up between English and metric measurements . That is exactly what happened to NASA in 1999 when a Mars orbiter designed by Lockheed Martin was lost in space.

The confusion caused a malfunction on the $125 million craft, resulting in the probe’s loss. Although it was unusual for Lockheed to use English measurements for a NASA design (since NASA had stipulated using metric measurements for many years), there were still several instances where the error should have been caught but wasn’t.

2
Toys ‘R’ Us blunder

Image: Taylor Heery

If you think an action figure of a drug dealer isn’t the best idea for a toy store , you’re not alone. Yet, for some reason, Toys "R" Us decided otherwise in October 2014, possibly hoping to cash in on the massive success of the Breaking Bad TV series.

Unsurprisingly, the giant toy retailer was forced to pull from its shelves four collectible dolls based on characters from the AMC hit show, each doll featuring a detachable sack of cash and a bag of meth.

3
Apple Maps' rocky beginnings

Image: CardMapr.nl

When Apple decided to launch its own map application on iOS devices after a conflict with Google in 2012, users quickly realized that the Apple app was not nearly as launch-ready as it should have been .

Locations were mislabeled, roads were missing, and it occasionally steered people in entirely the wrong direction. The problem was eventually, though largely, resolved, but it was an embarrassing misstep for a company known for never launching a product before it was as near-perfect as possible.

4
Bank of America debit card fee

Image: Ali Mkumbwa

Back in 2011, when the backlash against the banking industry had not yet reached its boiling point, Bank of America announced it would charge customers $5 per month to use their debit cards .

It was a bad business decision. More than 300,000 people signed an online petition, and Fox Business Network’s Gerri Willis cut up her debit card on air. The bank pointed to federal regulations as the reason for the charge but ultimately capitulated to consumer demand after a month before the fees went into effect.

5
$33 airline tickets from Toronto to Cyprus

Image: Miguel Ángel Sanz

If buying a business class ticket regularly priced at $2,558 for just $33 sounds too good to be true, it probably is. Except in 2006, when an Alitalia employee accidentally forgot to input two extra zeros when pricing business-class tickets from Toronto to Cyprus.

Due to the exchange rate on that day and the blunder, hundreds of buyers managed to snag fares for just $33. The airline honored those deals, accepting the heavily discounted price for the 509 people who purchased tickets before the error was detected.

6
A $70 million comma

Image: Nattipat Vesvarute

As the folks at NASA and Alitalia have shown us, small errors can lead to costly mistakes. The following blunder comes courtesy of Lockheed Martin , which issued a contract to a customer with a missing comma in the sale price .

The astute customer held the aerospace company to the contract, costing Lockheed Martin $70 million for a C-130J Hercules aircraft in June 1999.

7
Sears misses the ship

Image: Estefania Cortes

A retail giant that faced a situation similar to the one Kodak faced—embrace the new and unknown or cling to the old, successful recipe—Sears sold everything from socks to tires via mail order, shipping across the U.S.

Choosing to stick with the old method, the company ended its catalog and delivery business in 1993 . In 1994, Amazon was founded , filling the business void that Sears had just created. The rest is history.

8
Passing on Microsoft

Image: Jaime Marrero

$60 million might seem like a lot of money to us regular folks, but for someone with very deep pockets like Texas businessman and two-time U.S. presidential candidate Ross Perot, it wasn’t all that much.

In 1979, he was offered the chance to buy Microsoft for that sum. However, his final offer to the tech company was just $15 million, and as a result, the Texan missed out on the opportunity to own what would become one of the biggest companies in the world .

9
Blackberry sticks with the old

Image: Thai Nguyen

Another case of a brand sticking with the old instead of embracing the new, BlackBerry was all the rage at the start of the 21st century— until Steve Jobs came along with the Apple iPhone .

While BlackBerry Messenger was extremely popular, with over 80 million users worldwide, the device lacked the new touchscreen functionality and sleek design of the Apple product. From being a market leader, BlackBerry’s market share plummeted to 0.2% by 2016.

10
RadioShack’s downfall

Image: Jelleke Vanooteghem

Not so long ago, RadioShack was a familiar presence on the streets and the go-to place for buying batteries and electronics. But it was that same brick-and-mortar presence, coupled with a reluctance to embrace e-commerce , that ultimately led to its demise .

Eventually, poor profit margins on what they could sell, combined with a loan they couldn’t repay, brought down what was once the go-to place for electronics.

General General 5 min read

Say cheese!

Did you know American cheese is not actually cheese?

Image: Jonathan Borba

Few foods trigger as much heated debate as the neon-orange, perfectly square slice of American cheese. To culinary purists, it’s an industrial piece of rubber. But to the backyard grill master and the late-night grilled cheese enthusiast, it is a scientific masterpiece of consistency and meltability. The truth is, American cheese has been both witness and party to U.S. history, from World War I to Apollo missions. Before you peel back the wrapper on your next slice, let’s dive into 10 mind-melting facts that prove American cheese is one of the most fascinating—and misunderstood—innovations in food history.

1
It was invented in Switzerland

Image: NastyaSensei

While the name suggests a US origin, the technology that created American cheese actually began in the heart of the Alps. It was developed in 1911 by Swiss researchers Walter Gerber and Fritz Stettler, who were looking for a way to extend the shelf life of their country’s famous Emmental cheese.

The problem with traditional cheese is that it eventually dries out, molds, or separates into a greasy mess when heated. By shredding the cheese, adding sodium citrate, and heating it, the Swiss duo discovered they could create a stable, smooth product that didn't separate. While they weren't trying to create "American" cheese as we know it today, their emulsification process laid the foundational science for every single-wrapped slice produced today.

2
It was popularized by a Canadian

Image: Martylunsford, CC BY-SA 4.0, via Wikimedia Commons

The man responsible for the global dominance of American cheese was James L. Kraft. Ring any bells? Kraft was a Canadian immigrant who moved to Chicago in 1903. While he didn't invent the concept of processed cheese, he perfected the industrial scale of its production and marketing.

Kraft noticed that retailers struggled with cheese spoilage; if a wheel of cheddar didn't sell quickly, it was a total loss. He experimented with various methods of heating and blending cheese until he found a formula that could be canned and shipped long distances without spoiling. In 1916, he received a patent for his "processed cheese," and during World War I, the U.S. government purchased millions of pounds of it for soldiers, cementing its privileged place in the American diet.

3
It was almost called "Embalmed Cheese"

Image: Internet Archive Book Images, No restrictions, via Wikimedia Commons

When processed cheese first hit the market, it had its detractors. Traditional cheesemakers were horrified, and so were pure food advocates. These critics argued that the product shouldn't even be called cheese. They’ve even gone so far as to call it "embalmed cheese" because of its unnaturally long shelf life and the chemical emulsifiers used to keep it stable. Yet, Kraft’s marketing prowess and the sheer convenience of the product ultimately won the naming battle. At least in the court of public opinion.

4
Technically, it isn’t cheese

Image: RDNE Stock project

Kraft may have won the battle among the people, but legally, American cheese is not considered cheese. If you look closely at the packaging, you will rarely see the word "cheese" on its own. Because of strict FDA regulations, most varieties are legally classified as "Pasteurized Process Cheese Product" or "Pasteurized Process American Cheese Food."

To be labeled "cheese," a product must be made primarily of milk, salt, and enzymes. Processed American cheese, however, is made by blending real cheese—usually cheddar or Colby—with emulsifying salts, whey, and sometimes extra milk or fats.

5
Any cheese can be made into American cheese

Image: Edita Brus

The term "American cheese" refers more to a process than a specific flavor. In theory, you could make "American-style" brie, blue cheese, or parmesan. The defining characteristic is the addition of an emulsifier, which breaks down the proteins and allows the fats and water to stay together.

In fact, some high-end chefs now make their own artisanal American cheese with aged cheddars processed with sodium citrate to create a slice that has the complex flavor of an expensive block but the melting point of a Kraft Single.

6
It isn’t naturally yellow

Image: jianwei zhu

The vibrant orange-yellow hue of American cheese is entirely a cosmetic choice. Traditionally, cheese color varied by the season; when cows ate fresh grass in the summer, their milk contained more beta-carotene, leading to a naturally yellowish cheese. To make their cheese look high-quality all year round, cheesemakers began adding dyes.

American cheese takes this tradition to the extreme. It is typically colored with annatto, a seed from the achiote tree. Without this dye, American cheese would be a pale, creamy white, which is how it is sold in many delis as "White American". Yes, that’s right, there is no flavor difference between the white and yellow versions.

7
It has an extremely low melting point

Image: Vinícius Caricatte

The scientific superpower of American cheese is its meltability. Traditional cheeses have a protein structure that tightens when heated, which is why a slice of aged cheddar on a burger often results in an oily puddle and a rubbery clump.

Because of the emulsifying salts, the proteins in American cheese can withstand heat without clumping together. This gives it an incredibly low and stable melting point, transforming the slice into a silky sauce. This is why it remains the undisputed king of grilled cheese sandwiches.

8
It’s been in space

Image: NASA, Public domain, via Wikimedia Commons

When you're hurtling through orbit in a cramped capsule, you need food that is stable, easy to eat, and won't crumble into thousands of tiny, electronics-clogging pieces. American cheese fit the bill perfectly for early NASA missions.

Processed cheese in tubes or cubes was a staple of the Apollo missions. Because it doesn't separate or sweat oil in varying temperatures and pressures, it was one of the few dairy products that could reliably provide flavor and calcium to astronauts.

9
It helped bring cheese to the masses

Image: Internet Archive Book Images, No restrictions, via Wikimedia Commons

Before the advent of processed cheese, cheese was often a seasonal luxury. It was difficult to transport, expensive to store, and highly variable in quality. James L. Kraft’s invention changed that. By creating a product that was uniform in flavor and shelf-stable, he made cheese affordable and accessible to every corner of the United States.

10
The U.S. Government once gave it out

The U.S. government not only bought tons of American cheese during World War I. In the 1980s, the term "government cheese" became a thing. During a period of dairy surpluses, the government bought millions of pounds of cheese to prop up prices for struggling farmers.

To avoid letting it rot, the Reagan administration began distributing five-pound blocks of cheese to low-income families, seniors, and schools. For many who grew up in that era, that pale orange processed cheese was a lifesaver.

General General 4 min read

Can you recall any example?

Cheaper or costly? Items that have sunk or raised in price over the years

Image: Sora Shimazaki

There was a time when lobster was a cheap, poor man’s dish. And there was also a time when air flights were only for the wealthy. But not anymore. Countless products’ prices have gone up or down over the years. Things that once were very exclusive and expensive became accessible due to their production methods. And many things that used to be cheaper are now harder to come by due to scarcity or marketing tactics. Take a look at the following 10 examples of such situations.

1
Clothing (cheaper)

Image: Nick de Partee

Back in the mid-20th century, average American families spent about 10% to 12% of their household income on clothing. That figure has dropped to around 3%. That is not because people buy fewer clothes but because the prices have dropped significantly over the last decades.

Starting about fifty years ago, most U.S. clothing production moved overseas, where labor costs are lower and production output is higher . Those savings were passed onto consumers, and as fast-fashion brands proliferated, Americans had more options at lower prices than ever before.

2
Magazines (more expensive)

Image: Rhamely

While younger generations will not remember this, 25 years ago, magazines were an Internet of sorts : it was the quickest way to access information and color pictures of any subject you were interested in. Magazines were a ubiquitous item, sold everywhere at modest prices. Since the World Wide Web came along, magazines became less important and less demanded products.

If you have bought magazines lately or have inquired about their price, you might be surprised to discover how pricey these items have become.

3
Bananas (cheaper)

Image: John Vid

Believe it or not, back in the day, bananas used to be quite an expensive fruit. These days, this product is one of the cheapest and most popular fruits in the supermarket but when it first became available in the U.S., following the Civil War, it was sold for about 10 cents a piece — that’s about $3 per banana today.

The price of tropical fruit has hovered between 50 and 60 cents per pound for the last 20 years — a significant drop from its early cost. Despite being imported from faraway places and requiring cooling containers, banana sellers produce only one variety, the Cavendish, meaning the fruit can be harvested in abundant volumes and ripened at the same time .

4
Concert tickets (more expensive)

Image: Nainoa Shizuru

There was a time when going to a concert was a pretty accessible event. The ticket prices were low, even for well-known artists. But then, a couple of big players came along into the business and the prices skyrocketed like never before . Besides the ticket price itself, the service charge and taxes make for a hefty sum, not affordable by everyone anymore.

5
Television sets (cheaper)

Image: Peter Geo

It’s a well-known fact that as technology improves and becomes more efficient, prices come down. However, one consumer electronics category stands out from the rest for its drastic price cuts: televisions. The first color TV set debuted in 1954 with a $1000 price tag , and a 15" screen. According to the U.S. Bureau of Labor Statistics’ inflation calculator, that would be more than $11,600 today.

Compare that number to a 65-inch, high-definition smart TV that might cost around $500 in today’s dollars and the price drop is nothing short of amazing.

6
Car insurance (more expensive)

Image: Herson Rodriguez

Car insurance was never the cheapest service in the world, but it used to be a much more accessible price, with options for every pocket. In recent decades, auto insurance premiums have been steadily climbing , making car ownership a more exclusive deal altogether than it used to be.

7
Air flight tickets (cheaper)

Image: Suhyeon Choi

Yes, it may feel like airline ticket prices have surged in recent years due to airport taxes and fuel prices, but if we look at the price evolution over the last decades, we can see that tickets have become much more affordable than before .

Commercial air travel used to be a luxurious experience available only to the wealthy. In 1941, an average flight from Los Angeles to Boston would have cost more than $5,000 in today’s money. These days, a one-way flight from Los Angeles to Boston commonly costs around $300.

8
Fast Food (more expensive)

Image: Kenny Eliason

Getting a burger with fries and a soda for a couple of dollars was a standard deal back in the day, but not anymore. Fast food prices have steadily increased in the last few decades , making the tag for a standard menu almost the same and sometimes even more expensive than a meal at a regular restaurant.

9
Washing machines (cheaper)

Image: engin akyurt

In the same way that TVs have dropped the price, most other appliances have gone down the same path, and washing machines are no exception . These devices, an invaluable addition to modern life, have changed significantly from the 1950s to today.

In 1959, a Kenmore washer was advertised for $209.95. Today, that amount inflates to more than $2,200, which is a $1,600 difference from a basic $500 to $600 top-loading Kenmore machine today.

10
Prescription medicine (more expensive)

Image: Haley Lawrence

Healthcare costs in America have been a complicated problem for years. Not just health insurance but also essential medicines have been raising their prices steadily for a very long time.

It can’t be said that medicines used to be cheap but definitely were far more accessible than these days.

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