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Originally Posted by Keith P.
On the face of it that is a conflict of interest as he is supposed to treat all vendors more or less the same
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That's doesn't sound like a conflict of interest to me - it sounds like good business: choosing the best products to sell to customers. All vendors are not created equally, nor are all their products the same.
However, if he were buying products from a vendor that he had a personal stake in - that would be conflict of interest.
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Iacocca at Chrysler became so infatuated with his own image he neglected to run the company after a while.
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Nah, Iacocca was always just a sales guy, regardless of starting his career as an engineer.
If you look at the history of Chrysler, they have always been hanging on a pendulum that cycled between success and bankruptcy - waiting for the next big market success to temporarily keep them afloat. 2008 wasn't the first time the US government bailed them out and their problems continue to this day.
Iacocca (and Sperlich) actually pulled Chrysler out of the toilet with the K car and its most successful variant, the minivan, but the same old problems still persisted, with aging plants, highly-paid factory workers and lack of product (development) depth to be able to quickly change to meet the desires of a fickle marketplace. They simply have never had the resources to compete on the same level as GM and Ford, nor have they had the ability to change and evolve like other successful smaller companies.
To look to one point in history and try to pin it on Iacocca's ego is an oversimplification. Their problems have always run much deeper than the actions of one person.
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Vanity is a dangerous thing, and I suspect this is largely a vanity project for the NSLC execs. One wonders if this will be the straw that breaks the camel's back and leads to some big changes being imposed upon them by the govt.
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Ha! Even your story didn't sound like an exaggeration, the current provincial government has shown absolutely no sign that they would be capable of even recognizing a problem, much less of imposing any kind of changes that would lead the NSLC to improved profitability.