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.

History History 5 min read

What First Lady was accused of bigamy? 10 political crises

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From the founding era to the turn of the 21st century, political scandals have shaped public trust and dismantled entire careers. Looking back at ten of the most notorious political crises in American history reveals how the intersection of media and culture forces the nation to look in the mirror.

1
Rachel Jackson: A "Bigamy" scandal (1820s)

Image: L. Bernie Gallaher, Public domain, via Wikimedia Commons

In 1791, a young Andrew Jackson married Rachel Donelson. Both believed her first husband, Captain Lewis Robards, had successfully finalized their divorce. Apparently, Robards didn’t file the petition, making her marriage to Jackson technically bigamous. Once the divorce went through in 1794, they officially remarried.

During the 1828 presidential campaign, Jackson’s political opponents used this legal mistake against him. They branded Rachel a loose woman and a bigamist in pamphlets scattered across the country. The intense public shaming broke her spirit and deteriorated her health. She suffered a fatal heart attack just days before Jackson’s inauguration, leaving the newly elected president heartbroken and extremely bitter toward his political rivals for the rest of his life.

2
Grover Cleveland’s illegitimate child (1884)

Image: Frank Beard, Public domain, via Wikimedia Commons

Decades later, another personal bombshell rocked another presidential race. Republican opponents revealed that Democratic nominee Grover Cleveland, a bachelor praised for his integrity, had fathered a child out of wedlock with a widow called Maria Halpin ten years before.

Republicans paraded through the streets chanting, "Ma, Ma, where’s my Pa?" Instead of denying the affair or trying to bury it, Cleveland instructed his campaign managers to do something radical: "Tell the truth." He admitted to supporting the child financially. His honesty caught his opponents off guard and won over voters who were tired of such dirty political tactics.

3
The Crédit Mobilier scandal (1872)

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This particular scandal stands as one of the most shameless corporate schemes of the Gilded Age. Stockholders of the Union Pacific Railroad formed a fraudulent construction company called Crédit Mobilier of America . Then, they hired themselves to build the transcontinental railroad at inflated prices, pocketing tens of millions of dollars in federal subsidies.

To prevent Congress from investigating their profit margins, Congressman Oakes Ames distributed discounted shares of the company’s stock to influential politicians, including Vice President Schuyler Colfax. When the press exposed the story in 1872, the revelation that lawmakers were bribing themselves tarnished the legacy of the Ulysses S. Grant administration.

4
The Whiskey Ring scandal (1875)

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A few years later, another financial disaster hit the Grant administration. The Whiskey Ring was a widespread conspiracy involving distillers, distributors, and internal federal tax officials who stole millions of dollars in liquor taxes.

Using a complex web of bribes and falsified records, the ring defrauded the U.S. Treasury. The scandal reached the inner circle of power when President Grant’s own private secretary, Orville Babcock, was indicted as a ringleader. Grant provided a deposition in his secretary’s defense. While this saved Babcock from prison, it permanently damaged the president’s reputation.

5
The Teapot Dome scandal (1920s)

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Until Watergate occurred, Teapot Dome was synonymous with political corruption. During the administration of Warren G. Harding, Secretary of the Interior Albert Fall took control of valuable federal oil reserves located at Teapot Dome, Wyoming, and Elk Hills, California.

Instead of opening these fields up for competitive bidding among energy companies, Fall secretly leased the drilling rights to private oil tycoons in exchange for more than $400,000 in bribes.

6
The Chappaquiddick incident (1969)

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By the mid-20th century, the nature of political scandals shifted. Secrets began to involve personal crisis and tragic losses.

In July 1969, Senator Edward "Ted" Kennedy drove his car off a narrow wooden bridge on Chappaquiddick Island, Massachusetts. The vehicle overturned into a tidal pond, trapping and drowning his passenger, 28-year-old campaign worker Mary Jo Kopechne. Kennedy managed to escape but failed to report the fatal accident to the police for ten hours. Although he eventually pleaded guilty to leaving the scene of an accident, his delayed reaction ended his lifelong presidential ambitions.

7
The Pentagon Papers (1971)

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In 1971, military analyst Daniel Ellsberg felt the moral obligation to leak a top-secret 7,000-page Department of Defense study detailing U.S. political and military involvement in Vietnam from 1945 to 1967.

Published by The New York Times , the papers exposed a disturbing truth: successive administrations had systematically lied to both Congress and the American public. The documents proved that the government had expanded the war and increased troop counts while knowing that the conflict was unwinnable. The Supreme Court eventually rejected the government’s attempts to block the leaks, making a victory for freedom of the press.

8
The Watergate scandal (1972–1974)

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This is, probably, the ultimate American political scandal. In June 1972, five men were arrested breaking into the Democratic National Committee headquarters at the Watergate complex in Washington, D.C.

The break in itself was minor compared to the illegal cover-up orchestrated by President Richard Nixon and his collaborators. From paying hush money to instructing the CIA to block the FBI’s investigation, Nixon’s complicity was exposed via his own secret White House taping system. Facing impeachment and conviction by the Senate, Nixon became the first and only U.S. president to resign from office.

9
The "Keating Five" (Late 1980s)

Image: KonstantinChristian

During the Savings and Loan crisis of the late 1980s, five U.S. Senators—John McCain, Alan Cranston, Dennis DeConcini, John Glenn, and Donald Riegle—came under intense scrutiny.

The group was accused of intervening with federal banking regulators on behalf of Charles Keating, the chairman of Lincoln Savings and Loan, who had contributed to their political campaigns. Lincoln eventually collapsed, costing American taxpayers over $3 billion. Although the Senate Ethics Committee ultimately cleared the senators of corruption, they were publicly condemned.

10
The Bill Clinton–Monica Lewinsky affair (1998)

Image: Clinton White House, Public domain, via Wikimedia Commons

The 20th century ended with a scandal that blended personal infidelity with a constitutional crisis. In 1998, news broke that President Bill Clinton had an intimate relationship with a 21-year-old White House intern called Monica Lewinsky.

The affair turned into a legal battle when Clinton denied the relationship under oath during an unrelated sexual harassment lawsuit. The investigation led to Clinton’s impeachment by the House of Representatives on charges of perjury and obstruction of justice. The Senate ultimately acquitted him, yet he couldn’t bypass the media circus.

History History 6 min read

Lights, camera, action!

Where does the word "Hollywood" come from? 10 glamorous secrets revealed

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Hollywood is, for many, the birthplace of cinema—and in a way, it is. But do you know how the first studios were set up, what the first film shot entirely on the West Coast was, the true story behind the famous Hollywood sign, or the reason for its name? Read on to discover 10 hidden secrets about the most famous—and glamorous—district of Los Angeles!

1
Origin of the name

Image: Brady Bellini

Contrary to what you might think, the name "Hollywood" has nothing to do with the film industry. The origin of the name of the city that would later become the Mecca of cinema is surrounded by many myths. One comes from the personal diary of a real estate developer named H. J. Whitley. Whitley recounts encountering an Asian man carrying logs on a dolly. When asked about it, the man reportedly replied, "hauling wood," which, to Whitley, sounded something like "holly-wood."

As colorful as this story may be, it is unlikely to be true. The legend that likely comes closest to reality involves Harvey Henderson Wilcox and his wife, Daeida, who purchased 120 acres of land west of Los Angeles. According to different theories, Daeida may have overheard the word on a train or picked it up from the estate name of an acquaintance from Illinois. Whatever the case, since the name was first written on Wilcox's 1887 land deed, it seems plausible that Daeida was the one responsible for naming the area.

2
Movie theaters were prohibited

Image: Arthur Rothstein, Public domain, via Wikimedia Commons

H. J. Whitley may not have christened the area, but he did a lot to promote its development. He invested heavily in installing electricity, built the Hollywood Hotel to attract land buyers, and developed the residential neighborhood of Whitley Heights. The area began to flourish, and by the early 20th century, the new municipality boasted a post office, a local newspaper, and two markets.

The inhabitants of Hollywood, by majority vote, decided to forbid the sale of liquor within the city, including in restaurants and hotels. Movie theaters were also banned . However, when Hollywood was incorporated into Los Angeles in 1910, which had no such restriction, history changed forever.

3
The motion picture industry conquers Hollywood

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​​In the early 1900s, most film production companies were based in New York and New Jersey. However, the so-called "patent wars" encouraged them to move to the West Coast. At the time, the industry was virtually monopolized by Thomas Alva Edison, who owned the majority of the camera equipment patents.

Many companies rebelled against the abusive rates and decided to relocate to Los Angeles, where they could more easily evade these restrictions. In addition, the weather there was better and the days were longer, which allowed them to work more hours and spend less on electricity. If we add the low land prices to the mix, it’s no surprise that Hollywood became the ideal location to establish the capital of the motion picture industry.

4
The first film

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The prolific film director D. W. Griffith, who had already made around 50 short films in New York, was one of the many who migrated to Hollywood to get rid of patent restrictions. In fact, he directed the first film shot entirely in Hollywood. In Old California is a 17-minute western set during California’s Mexican era.

Later, in 1915, Griffith would release The Birth of a Nation , one of the most important and controversial films in the history of the seventh art. This film, also shot in Hollywood, solidified Griffith’s reputation as one of the pioneers of narrative filmmaking .

5
The first studio

Image: masbet christianto

The first permanent motion picture studio established in Hollywood was the Nestor Motion Picture Company, a subsidiary of the Centaur Film Company from New Jersey. In 1911, brothers David and William Horsley built a rudimentary stage behind the Blondeau Tavern, at the intersection of Sunset Boulevard and Gower Street. Production started immediately, with films such as Her Indian Hero and The Law of the Range .

Despite their pioneering efforts, the Nestor Company faced the same fate as many other small studios of the era: its lifespan was short . In 1912 it was absorbed by the emerging Universal Studios, although it kept its name until 1917. In the 1930s, the original building was demolished to build the Columbia Square facility.

6
The truth about the Hollywood sign

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The Hollywood Sign is a cultural icon not only of Los Angeles but of the entire United States. Do you know how it ended up on top of Mount Lee? In 1923, a publicist erected the famous 50-foot-tall white uppercase letters to promote a local real estate development called "Hollywoodland." The sign was originally intended to last only a year and a half, but the booming movie industry ensured its longevity.

With the great economic crisis of the 1930s, the company went bankrupt and the famous sign was neglected—even losing the "H," leaving it to read "Ollywoodland" for several years. In the late 1940s, the city decided to restore it, but the Chamber of Commerce ordered the last 4 letters to be removed so that it would no longer be associated with the company but with the town.

7
First Oscars ceremony

Image: Engin_Akyurt

Everyone knows that the Oscars are the world's most prestigious film awards. But did you know that the ceremony has been held annually for almost 100 years? On May 16, 1929, as talkies were just beginning to rise in popularity, 270 film industry personalities gathered at the Roosevelt Hotel. That evening, 15 statuettes were awarded to give the booming film industry an air of prestige and glamour.

The inaugural night was filled with interesting curiosities. For instance, the recipients of the awards were announced publicly three months before the ceremony . Additionally, the event was not broadcast in any form of media. Another fun fact: In the early years, the Academy Awards included a banquet. However, in 1942, due to increased attendance and the impact of World War II, the banquets were replaced with more modest theater ceremonies.

8
Walk of fame

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Every high-profile artist has a star on the Hollywood Walk of Fame—even the Muppets have one! Along 15 blocks in Hollywood Boulevard, approximately 2,800 five-pointed terrazzo-and-brass stars honor some of the world’s most beloved celebrities, including actors, directors, musicians, athletes, and even fictional characters.

In 1953, the head of the Hollywood Chamber of Commerce came up with the idea of creating a publicity stunt to promote those whose names stand for glamour and prestige. Finally, in 1960, the first star prototypes were installed, honoring icons such as Joanne Woodward and Burt Lancaster. Today, this popular landmark is visited by millions of tourists every year.

9
Time capsule

Image: StockSnap

Few people know that beneath the mythical stars lies a very special treasure. To commemorate the Hollywood Walk of Fame's half-century of existence, the Chamber of Commerce buried a time capsule beneath the spot where it originated, at the corner of Hollywood Blvd. and Highland.

The 16 x 16 x 18-inch capsule holds an array of artifacts that celebrate Hollywood’s enduring mystique. Among its contents are the screenplay of Casablanca , recordings of Oscar ceremonies from 1960 to 2010, programs from the musicals Wicked and The Lion King , and messages from various Academy members. These priceless mementos are set to resurface during the Walk of Fame's 100th anniversary celebration in 2060.

10
The Hollywood Forever Cemetery

Image: Judyfan1922 at English Wikipedia, Public domain, via Wikimedia Commons

With its legendary sign, iconic Walk of Fame, and countless beloved films and celebrities, Hollywood truly has it all. For this reason, it is only fitting that the city also boasts a peaceful and beautiful resting place for stars after their deaths. Founded in 1899, the Hollywood Forever Cemetery is the final resting place of many stars, including Judy Garland, Cecil B. DeMille, Don Adams, and Peter Lorre.

Located in the heart of Hollywood and adjacent to Paramount Studios, today this cemetery is a tourist attraction visited by many. In fact, on weekends during the summer the cemetery screens outdoor films for everyone to enjoy!

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