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NOVEMBER 2015 BRIEFING
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SH INTERNATIONAL LLC


NOVEMBER 2015 BRIEFING


The Unexpected and Unknown
 
Dear Clients & Friends of SH International:
 
With Thanksgiving around the corner, we would like to thank you for being part of our global family of clients and well-wishers.  We do not always know where the path in front of us will take us, but we are always thankful to have such great people and companies on it with us.
 
We hope that you enjoy these newsletters, as much as we enjoy sharing our journey as SH International grows, and continues to expand businesses through emerging markets deals, ventures and initiatives.
Cleaning Up the Mess
Deals Gone Bad
 
Deals do not always work out as envisioned. We recently successfully completed an out-of-court settlement on an emerging markets deal that did not go according to plan or contract. This ended up being a surprisingly positive experience, because it proved that it is possible for even smaller companies to enforce a contract in the emerging markets environment.
 
Consider an out-of-court settlement if a deal has not followed the agreement, and as a result one or more parties have suffered damages. Also consider it when it is not a worthwhile use of resources to pursue a full legal process, but you still need to send a signal to the market that your company takes its business relationships and contractual rights and obligations seriously.
 
With the high levels of expense and time involved in a legal battle, reaching an out-of-court settlement can be preferable to seeking remedy from a court. This can be even truer in emerging markets environments, which are more often than not plagued by inefficient legal systems. It is not unusual for it to take several years to settle a case, with legal bills piling up, and unpredictable outcomes.
 
If you want to settle an issue out-of-court, consider the following:
 
-What points of leverage do you have, besides legal action? Some possibilities include: relational strength and reputation, access to resources, etc.
 
-Any resources that you put into cleaning up a messy situation could have been spent working on profitable and positive relationships. The more that you can afford to invest, the more demanding your settlement negotiations can be. Conversely, lowering demands can lead to a quicker result.
 
-Do all parties perceive that they have more to lose by going to court than by settling the conflict outside of the court system? If you ask for the sun, moon and stars, then it is more likely to be worth it to the other party to undergo the hassle of going to court.
 
As part of our services expanding businesses through emerging markets deals, ventures and initiatives, we offer commercial guidance on contracts, negotiations, and turning around negative situations. We are not lawyers, and our clients should retain their own legal counsel to advise them from that perspective.
On (Not) Having All the Answers
A Perspective on EM Expertise
 
It is impossible to know everything about emerging markets business. Even if one could know all of the pertinent information at any given moment in time, emerging markets are by definition undergoing incredible amounts of rapid change. Knowledge quickly ages, and it is critical to continually renew one’s understanding. This is one reason why getting on the ground is so critical to understanding the pulse of emerging markets business.
 
Humility is critical. As soon as you think you know all of the answers, you stop asking questions. That is when you are the most vulnerable to costly errors in judgement.
 
When we provide trainings in emerging markets business, we endeavor to teach a certain mentality and lens that will lead to emerging markets business success. The actual answers will change according to the country environment, current state of affairs, and other factors specific to the situation at hand.
 
This lens is fundamentally defined by a weaker rule of law, and the corresponding heightened importance of relationships. There is a related body of knowledge that is critical to understanding how to do business in any emerging market. This lens changes the way one negotiates, leads, manages risk, and achieves results.
 
Once you learn this way of thinking, you can more quickly and adeptly calibrate to any emerging market. You will have a compass for engaging in productive and profitable business and negotiations, whether in Brazil, India, Vietnam or Liberia.
 
While training others on how to be effective in the emerging markets environment is not a core service, we do provide such trainings, usually as part of a business community conversation or larger engagement. Please contact us to learn more.   

 
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ABOUT SH INTERNATIONAL LLC

We expand businesses through emerging markets deals, ventures and initiatives. We leverage a proprietary network of resources, specialists and partnerships to achieve powerful results. Based in multilingual and practical experience on five continents, we provide your company with truly global vision.
 
Copyright © 2015 SH International LLC, All rights reserved.


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