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Despite good intentions and well-meaning actions, some business decisions can just do more harm than good. Small and big businesses alike experience unfortunate downturns as a result of resolutions that seemingly work for the best but are actually self-destructive. Of course, there are decisions that are baffling yet still pursued by management, resulting in the company’s trouble.

So why do these organizations make these blunders? More importantly, how come companies that have expert advisers and dedicated staff members in their employ still get into this kind of trouble?

It seems the presence of highly paid advisers and executives are not enough to keep a company’s finances afloat and steadily going upstream. Failure to recognize warning signs and adjust to the ever-changing business landscape will always result in the company’s doom.

A good example of that would be Nokia. Once a giant in the cellular phone industry, the company failed to recognize the emerging competition brought by the iPhone. To some degree, the challenge was ignored by Nokia. Today iPhone dominates the market for mobile phones with Nokia out of the picture.

How do these things happen? Do doomed companies fail to see the challenges and problems coming their way? Or do they just neglect to do something about it?

Here are the top 4 deadly sins that can lead companies to a terrible fate.


Confidence is a good trait. The faith and self-assuring belief that one is doing the right thing can be a morale booster. It can inspire people to do more productive things in the organization. There is deep pleasure in knowing the company is happy and satisfied with the work done.

However, too much confidence and pride can be a bad thing. If it should occur in high-ranking executives, it can be a dangerous thing. With a leadership that has lost its touch with the real world, the disconnect will only create catastrophic consequences.

People tend to get carried away with the flattery and admiration. Oftentimes, the excessive degree of enthusiasm intertwines with personal interests. As a result, executives forget they have a job to do, which is to ensure the organization paces on the right path.

They lose focus of their purpose. Instead they center on their own personal ambitions and gain. This is common even in multinational companies where executives set office in palatial workrooms and luxurious headquarters.


Never underestimate the power of fear in running a business. Some executives govern using fear as a device to drive revenue upward. However, there is a fine line between fear as an effective motivational tool and as a destructive psychological force.

When fear is utilized to a point where employees become worried about losing their jobs, it’s a bad thing. This may push the people to resort to desperate measures like lying about their output just so they can stay on the job.

A dictatorship, on the other hand, ruling with an iron fist, can only lead to stress and anxiety, causing the employees to burn out and eventually leave the company.


It’s good for the morale to get a pat on the back for a job well done. However, too much triumphant gratification and being pleased with oneself can lead to complacency and carelessness. This can be dangerous in a company.

An evolution of a company usually carries with it new risks and challenges. It is for management to make sure to minimize these negative particulars. Racking up big liabilities and losses can be fatal for the organization.

Complacency can blind executives, causing them to fail in recognizing the changing business landscape and consumer market.


It’s all too common. Executives and directors focus on giving each other big salaries and bonuses, forgetting to share the blessings with the rest of the organization. In this instance, execs become part of the problem.

Many businesses flop because of greed. A hefty payday for some may deter the long-term survival of the company.