Lateral processes are an important element of organizational design and the impact of lateral relations strategies increases significantly as the business activities of the organization growth and additional business units are created. As such, senior managers and other involved in the organizational design process need to be mindful of the conditions that must be satisfied in order for formal organizational groups to openly share information, debate alternatives and arrive at decisions that are appropriate for the organization and perceived as fair and legitimate by members of each of the groups that are relevant to the particular activity, issue or problem. In this post I provide a summary of some basic rules to follow in order to establish effective lateral processes in your organization.
While a great deal of time effort should be invested in drafting the initial version of the operating agreement for a limited liability company it is inevitable that changed circumstances during the life of the LCC will cause the members to consider the need to amend various provisions of the agreement. In this post I provide you with some basic guidelines for preparing an amendment to an operating agreement including a sample template.
In this post I pass along the latest issue of the newsletter on Recent Developments in Mergers and Acquisitions compiled by my colleague Robert Brown for Thomson Reuters—Westlaw. Several topics are covered including a summary of an interest recent empirical study that suggests that certain “go-shop” provisions may serve to satisfy a board’s Revlon duties.
In turbulent times companies should always look to foreign countries as potential new markets for their goods and services. New foreign markets can increase sales, diversify the company’s customer base, amortize new product development costs and provide protection against variations in the domestic business cycle. Foreign markets also provide good opportunities for selling older, more mature, products that have become obsolete in more advanced markets. In addition, a network of global facilities allows a company to quickly divert products and supplies into regions where demand is booming. While a global sales strategy is more risky when economic conditions are weak in many parts of the world it is still important for managers to consider from the very moment that new product development activities begin. My report this week focuses on some of the reasons that emerging companies should be thinking about selling their products and services outside of the U.S.