The business decisions that didn’t work out so well for Sir Alan
Words: Guy Aubrey Devito
Sir Alan Sugar, Baron Sugar is one of Britain’s most recognisable businessmen largely due to his long running appearances on the UK version of The Apprentice. He has delighted the public with his ready wit and his withering put-downs of incompetent apprentices but, as he himself conceded, he has made some terrible business mistakes over the years.
AMSTRAD’S ASSOCIATION WITH SEAGATE
Sir Alan’s electronics and computer venture Amstrad could have made him one of the richest people in the world had he not made certain mistakes and the Amstrad/Seagate mess-up – and subsequent court case – was certainly one of them. In 1989 Amstrad’s second generation PC’s were supplied with faulty hard disks provided by Seagate and as a result Sugar’s company lost significant ground in the European PC market.
A FORAY INTO FOOTBALL
Tottenham fan Sugar teamed up with Spurs legend Terry Venables to buy the club in 1991 and saved the club from financial destitution. Despite his love of the club and considerable wealth, Sugar was unable to get good results on the pitch and after much infighting in the club, Sir Alan through in the towel, selling the club in 2001. His attention to Tottenham Hotspur meant that he took his eye off the ball with Amstrad – effectively condemning the business.
AMSTRAD’S ENTRY INTO THE VIDEO GAMES MARKET
After Amstrad lost ground in the desktop PC market, they began to focus on other areas and attempted to break into the computer games market – the move was disastrous. The Amstrad GX4000 was a poorly made device that used outdated processors and technology. It was the final nail in the coffin for Amstrad as a continental leader in technology.
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