Page 3 - Inside Access February 4th Edition

FOOD FOR THOUGHT Lessons from
History’s Worst CEOs
Gerald Ratner
Ratners Group
This CEO and Chairman only really made one mistake, but boy, was it a big one; so big, in fact, that it’s now known as the Ratner Effect. In a magazine interview, Gerald Ratner, of the eponymous jewellery company, described a cut-glass sherry decanter set sold in his shops as “total crap” and went on to insult other products too. Customers fled, and millions of pounds were wiped off the value of the business. Ratner hired a new chairman, who went on to fire him.
Lesson:
Always treat your customers with respect.
Contributed by Oye Jolaoso
Chen Jiulin
Chine Aviation Oil
For a long time, Chen Jiulin was hailed as a superb Managing Director and CEO; under his leadership, China Aviation Oil’s net asset worth rose by an extraordinary 85,200% to $150 million.
However, speculative oil price trading nearly brought the company down and Chen tried to hide what had happened. In 2006, he was sentenced to four years and three months in jail after failing to disclose a $550 million trading loss.
Lesson:
Don’t gamble with your company’s assets;
it always ends in tears.
Gerald Ratner
Ratners Group
Chen Jiulin
Chile Aviation Oil
PAGE 3 INSIDE ACCESS | FEBRUARY 2021 4TH EDITION