Make or Break

The Prawn Sandwich Disaster

WHO: In the wake of the 1980s economic boom, Gerald Ratner took over the small family jewellery business. Within just seven years, Ratner had transformed it into a multi-million pound empire and even broke into the American market. The company was immensely popular with the British public as it offered affordable products at bargain prices. Ratner was at the top of his game and had shops on every highstreet.

DECISION: In 1991, Ratner was invited to speak at the Institute of Directors conference taking place at the Royal Albert Hall. He sent a draft of his speech to the company heads for approval, and one director advised him to add a couple of gags. In front of 6000 business people and journalists, Ratner read the infamous speech, gags and all. Although the jokes were not intended to offend, the British press had a field day and splashed stories about Ratner’s contempt for his customers across the front pages. The public were incensed by his jokes, and felt mocked. The company’s shares dropped £500 million in a matter of days. Ratner was eventually fired and would remain penniless and the butt of jokes for years. He would return to the jewellery industry at the turn of the millennium but in a very different format, taking the business online.

This Podcast is brought to you by Radio Wolfgang for Auddy

It was presented by Owen Bennett Jones and it featured Gerald Ratner

It was produced by John Jo Devlin and Eli Block and the Executive Producer was Ellie DiMartino

With support from The Open University - www.openuniversity.co.uk/management

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Aiming High and Low

WHO: In 1997, fashion writer turned entrepreneur, Liz Lange, created the world’s first fashion forward maternity brand. Until that point, the fashion world hadn’t offered much to expectant mothers. In fact, retailers repeatedly told Lange that women were disinterested in their appearance during pregnancy. But Lange knew better. She went on to establish three wildly successful boutique stores and a cult celebrity following, including the likes of Cindy Crawford, Gwyneth Paltrow and Julia Roberts.

DECISION: In 2002, Target Corp proposed a lucrative licensing deal with Lange to design inexpensive maternity clothes. Her advisors warned against partnering with the budget-friendly retailer on the grounds that she would lose her cachet and it would damage her high end platform. However Lange decided that women of all budgets deserve to be as empowered as the celebrities she dressed and went ahead with the partnership. Sales rose in all three boutiques and today, Liz Lange Maternity has the largest maternity apparel market share in the US.

Make or Break is a Radio Wolfgang production for Auddy, with support from The Open University.

www.openuniversity.co.uk/management

Learn more about your ad choices. Visit megaphone.fm/adchoices

Learn more about your ad choices. Visit megaphone.fm/adchoices

Learn more about your ad choices. Visit megaphone.fm/adchoices