In a world plagued by scandals and bad intentions, it would be nice to think that good intentions always lead to success. Unfortunately, thats just not true. In the corporate jungle, the road to hell is sometimes paved with good intentions. Some memorable and seemingly sound efforts have lead to some spectacular failures.

Trying to Be All Things to Everyone

The pursuit of growth often encourages companies to move beyond their core competency. However, sometimes getting away from a core business can be a mistake. Westinghouse Electric, founded in 1886, found this out the hard way. The firm, once a global force in its industry, employed such luminaries as Nikola Tesla and was responsible for groundbreaking achievements, including revolutionizing the use of alternating current for electricity generation and the construction of the nations first nuclear power plant.

Building on its success, the firm branched out into disparate businesses. Among its many acquisitions: Seven-Up Bottling Company, Longines-Wittnauer Watch Company (which sold mail-order records), broadcasting/cable television interests, financial service business, office furniture makers and residential real estate. The result was a behemoth jack-of-all-trades company (master of none) which collapsed under the weight of its multiple industries, leaving its nuclear division the sole survivor to this day.

Failing to Diversify

Intel, founded in 1968, became the worlds largest manufacturer of semiconductor chips. In 1994, the discovery of an error in its FDIV chips, and the ensuing media onslaught, brought an avalanche of negative publicity to the firm. As a result, the firm launched a highly successful advertising campaign that made the companys name synonymous with the place its semiconductor chips held inside a host of computers. To build on its success, the firm put serious effort in expanding into other businesses, ranging from flat-panel television processors and chips for portable media players, to chips for wireless technology.

Despite the firms well-known brand, those efforts failed to achieve the desired level of success, and the companys stock price has remained relatively flat for more than a decade. While the firms core business continues to operate successfully, the diversification efforts just didnt work out as planned.

Expanding Too Quickly

Krispy Kreme donuts got its start in 1937, when a French chef began making the gooey pastries and selling them to grocery stores. The firm grew slowly and became a regional favorite in the Southeastern United States. When Krispy Kremes founder died in 1973, the firm was sold to Beatrice Foods and the companys growth stalled. In 1982, a group of franchisees purchased Krispy Kreme and laid the groundwork for the rapid-fire expansion of the 1990s.

Encouraged by pastry-loving diners, the firm grew rapidly and not only went national, but also global, opening franchise locations around the world. The company went public in April 2000 and the price soared to nearly $50 per share by August 2003. However, in 2005, the firm posted $198 million in losses. Pressure to maintain earnings led to an accounting scandal. Store closings became common and the stock collapsed, losing nearly 90% of its value. Fortunately for its fans, the firm remains in business.

Growth by Acquisition

Bank of America built an empire one acquisition at a time. The Charlotte-based bank bought up other banks one after another, growing its size and expanding its presence until it became a dominant force in the industry. Unlike Westinghouse, the buying binge remained focused within the financial services industry. Unfortunately, not all of the acquisitions went well. The decision to grab high-end investment firm U.S. Trust lead to a poor cultural fit, as the populist retail bank attempted to absorb the white-shoe private bank, but was quickly forgotten in the wake of a shotgun-wedding with industry giant Merrill Lynch. The culture clash following the purchase led to a string of high-profile departures of senior executives, but even that wasnt enough to stop the banks advance.

Finally, the purchase of scandal-plagued Countrywide Mortgage caused the bank to inherit a mess that decimated the stock price. The disaster began with Countrywides lending practices: the firm gave high-interest, subprime loans to consumers who were of questionable credit quality. Those loans were then bundled together and sold to investors as high-quality mortgage-backed securities. When housing values fell and homeowner defaults rose, Bank of America was forced to pay $8.5 billion in a legal settlement, coupled that with a big foreclosure scandal. Years after the acquisition, Bank of America continued to struggle with issues connected to Countrywide.

Sticking to Tried and True Methods

Perhaps witnessing the struggles firms face when they try to implement dramatic change, Borders Books based its expansion efforts on a brick-and-mortar merchandising strategy. In the 1990s, Borders filled its book stores with calendars, music, DVDs and other goods to supplement its traditional offering of books. Its competitors went the online route, using the Internet to offer convenient shopping and huge inventories. The failure to evolve and keep up with online distribution led to the closing of over 300 stores and caused about 11,000 employees to lose their jobs when the 40-year-old business went bust.

Trying to Innovate

Coca-Cola faced similar challenges when it attempted to improve the tried and true recipe for Coke. Faced with shrinking sales, the firm completely abandoned the recipe for its flagship, launching New Coke in April of 1985. New Coke was a complete fiasco, hated by purists and panned in the media. Classic Coke returned to the shelves less than three months after it had been retired.

Failing to Keep up With the Competition