TEAM: BEHIND THE WALLS OF QUIXTAR PART 4

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BEHIND THE WALLS OF QUIXTAR PART 4
Monday, October 29, 2007

Welcome to the latest installment and report from "Behind the Walls of Quixtar." I hope you all enjoyed your weekend. I certainly did, as I was able to share a few cups of coffee with some Quixtar employees. The latest information I learned from these rendezvous is nothing short of devastating to the Quixtar war machine. Unfortunately for many Alticor employees this information is quite frightening. So what did I learn from my "close warm personal friends?"

My CWPF's are telling me that the damage to Quixtar, both directly and collaterally, from the ongoing battle with TEAM is mounting quickly. The losses at Quixtar are piling up at a rate that could total more than 125 million dollars by the end of the fiscal year. I am sure the doubters and haters will just discount this information as an insignificant loss for a billion dollar company. Keep watching if you want to reserve judgment, but a company bleeding at this rate can't hide it for long. Additionally there is no end to these losses. Instead, as more and more people lose confidence in Quixtar or become disgusted with the entire situation more volume losses will result. The other thing to consider is that Quixtar desperately depends on sponsoring for survival. The importance of sponsoring and the volume associated with it are magnified due to their abysmal retention rates. I couldn't even imagine showing the plan and attempting to put a good face on the present day Quixtar.

If you don't believe how severely crippled a TEAM-less Quixtar is how about this. I have been told that early retirements and layoffs are now being discussed. This is not some reflex action. These talks are part of an overall internal evaluation of Quixtar. Quixtar is contemplating what it sees as serious "overcapacity" in warehousing and other areas of their business. Many people have speculated that Alticor / Amway / Quixtar are no longer committed to their North American business. Could this battle hasten their exit from North America and provide AAQ with a convenient scapegoat that being TEAM?

Quixtar's problems are chronic and are not isolated to the fact that they have failed to heed the dawn of Walmart and failed to adapt their business practices. Quixtar displays certain schizophrenic behavior by portraying itself as a cutting edge internet business all the while embracing antiquated thinking by denying the age of the consumer. As I have stated before in this blog, Quixtar currently suffers from systemic dishonesty. There is a pattern of deceit that emanates from its core. Whether these problems are fatal largely depends if their corporate leadership can make the needed decisions away from its currently navigated path and back to an ethical course.

Lets look at the current battle with TEAM. Quixtar, led by its legal department, has created a public relations nightmare of monumental proportions. From all accounts Alticor General Counsel Mike Mohr is calling the shots in the TEAM dispute. Well how is he doing? I don't know Mr. Mohr, but I would suggest that if he is calling the shots, that he lacks any degree of emotional intelligence. From the start of this conflict the animosity displayed by Quixtar has been over the top. This likely reflects their General's (Mohr's) attitude. Assuming Quixtar losses of 125 million dollars are correct, is Mohr worth the 125 million dollars? Indianapolis Colts quarterback Peyton Manning signed a 7 year contract in 2004 for 99.2 million dollars. Manning delivered a Super Bowl title, and is consistently one of the top two quarterbacks in the NFL. That is what 100 million dollars will buy you. In effect Mike Mohr has cost AAQ 125 million or more. What did AAQ get for their money? AAQ got a frumpy fellow, who appears to be orchestrating one of the biggest debacles in American business history. Can Mohr orchestrate AAQ out of existence?

From the beginning Mohr completely ruled out diplomacy as an option. I know you are reading this Mr. Mohr so let me help you. Diplomacy is defined as: skill in handling negotiations, handling people so that there is little or no ill will; tact. Quixtar has and continues to make this out to be about the "evil" Woodard, Brady, and TEAM. But face it Mr. Mohr, you took this tack in spite of 40% of the IBOAI board sounding the alarm. Those were some of the largest business builders you slammed the door on. May God have mercy on you because the market won't.

In closing, I would suggest that we all pray for the employees of AAQ who find themselves in possible peril. Layoffs and early retirements are potentially life changing moments. In the case of AAQ it didn't have to be this way. Decision makers inside of AAQ made choices and the employees will likely face the consequences of those decisions. By the way... I paid for the coffee!

Posted by The IBO Rebellion at 5:28 PM