Bunnings' UK soul search
The AFR published an article about Wesfarmers' ill-fated Bunnings UK Homebase venture. Apparently, Wesfarmers studied the UK market for two years and then as one of the first moves post-acquisition, sacked nearly 150 staff from the Homebase head office, losing local expertise. This wouldn't have happened if Wesfarmers' decision makers took a few hours to study Warren Buffet. The message from the master of big deals has always been clear: when you buy a business, it must come with an excellent management team. If you think that the team is lacking, don't buy the business.