For all you ‘Star Wars’ fans

The food company General Mills, not Disney, originally controlled the toy universe of “Star Wars.” But in January 1977 when General Mills’ toy division, a small toy company called Kenner, announced the “Star Wars” action figures and accessories,  the toy world around the globe was shocked. 

The movie had a release date of May 1977. The move had a trailer — and that’s all. On the strength of that trailer, Lucasfilm could not find a licensee for its toy merchandise. The biggest figure manufacturers turned it all down … until one man, the VP at Kenner named Bernard Loomis, happened to see the trailer in late November 1976. He got a cheap license of $100,000 advance against all world rights to all “Star Wars” figures. And only a 5 percent royalty. Snoopy was getting 7 percent, Disney commanding up to 8 percent.

But Loomis, who I dined with in Nurnberg in February 1977, was convinced that the movie would be great for business. Toy manufacturing lead times are a year or more. In February, his Hong Kong plastic manufacturers had told him they could deliver toys only by October for Christmas sales, but not before. The movie was coming out in May. He still had not seen the whole movie in February. I asked him, “Why are you so sure the movie will be a smash success?”  His answer startled all of us at the Grand Hotel dinner: “I can’t be sure, I have seen parts of the rough cut without music — it’s really great family viewing — but Lucas is a genius and the characters are everyman’s heroes, especially the sexy princess, Leia, and the two men, whatever their names are, Solo and Luke something…”

Remember, he was banking every dime of Kenner’s future on this movie, a movie he had not seen, a soundtrack he had not heard. And he had no toys whatsoever in production for a movie set to break three months later. What was his solution? Perhaps the most entrepreneurial, gutsy, American decision ever made: Sell perfectly printed, shrink-wrapped, empty boxes with a voucher inside. And the rest is history.

Now Kenner is owned by Hasbro — a company formed by Merrill Hassenfeld and then brilliantly run by his two sons, Steve and Alan, both of whom I worked with and had high regards for as innovative, brave businessmen. Hasbro is a giant U.S. company, with well-deserved sales’ success around the world — an American company allowing managers and senior staff to make decisions outside of committee, like Mr. Loomis did back in 1976. 

Now, here’s the point of this little slice of history: “Star Wars” franchise? Originally run by a man who made entrepreneurial decisions without committee. Success. Kenner/Hasbro? Same. Apple? Same. Cisco? Same. Amazon? Same. eBay? Same. Starbucks? Same. Tesla? Same. Now apply this to companies you work with and see which ones are running scared post-9/11 and hiding behind focus groups, committee decisions and financiers’ influences. Want to reinvigorate America? Promote more business bravery, stop trying to risk manage everything. It is not just courage left on committee room floors, it could be the company’s future.

Peter Riva, a former resident of Amenia Union, now lives in New Mexico.