In a recent interview with FOX Business, Kevin O’Leary, a well-known business owner and investor, discussed the mistakes made by big companies in America. He pointed out 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 for it.
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O’Leary discussed how Bud Light faced a huge backlash after a marketing campaign that didn’t connect with their main customers. Now, it’s an example in business schools of what not to do.
For O’Leary, the mistake was simple: Anheuser-Busch misjudged their customers and completely missed the mark on what resonates with them. The consequence? Plummeting sales and a backlash that no beer company has ever faced before. O’Leary describes it as a “combination of idiot management and the inability to read the room.”
Target also didn’t escape O’Leary’s criticism. He talked about how Target made a similar mistake when it started promoting gender identity products, which upset a lot of its regular customers. “What mother wants to take their kids there and get into gender identity and underwear?” O’Leary asked, pointing out 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 that the company never really apologized, but it didn’t matter – the market “crushed them” for it.
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O’Leary’s advice for company leaders is clear: bad decisions should have consequences. He said that if he were on the board, he would want to find out who made these choices and make sure they faced the consequences: “That’s how we used to do 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.
