Committing without Considering Consequences
We have a CEO of a large company - let's call him Mr. Sharma (I choose this name because of its sheer commonness) He has resources, he has power, and he has the ability. He is liked by his employees, because Sharma has led them to growth. One day, Mr. Sharma comes to know about a unicorn startup that is looking for venture capital investors. He is immediately attracted since the unicorn in question has established itself as a brand. Mr. Sharma thinks that by acquiring this unicorm will enhance his portfolio. During the negotiations, Mr. Sharma agrees to most of the conditions laid out by the startup company - high valuations, retention of control by the startup promotor, etc. The cost of acquisition seemed must lesser than the future prospect, at least for now. The acquired company does not perform as expected. Losses started mounting quarter on quarter. Sharma's colleagues started pointing out potential hazards of continuing the investment. They advised him to cut losses and e...