Mutual Benefits
Article Abstract:
Analog Devices is a $214 million a year Massachusetts company which makes electronic components for scientific and engineering applications. The company had managed its growth well from its 1965 beginnings, but as technology rapidly advanced the company felt it was left behind. Instead of buying small, promising companies outright, and possibly losing key talent and management, it decided to work out unique arrangements with these same companies. The relationship Analog developed with ten small companies involved financial support and working together to develop ideas which would mutually benefit all parties involved. Analog has always displayed sensitivity to changing market conditions, and it utilized this same sensitivity in the arrangements worked out with these small, growing, technological companie. In addition to money, Analog offers these firms executive advice but does not tell the smaller companies how to run their businesses. It will be years before it can be determined if the approach Analog is taking with these businesses is successful, but it says a lot for the company that it is working to keep the entrepreneurial spirit alive.
Publication Name: Inc.
Subject: Business, general
ISSN: 0162-8968
Year: 1984
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Beyond the Megaloans
Article Abstract:
Companies looking for loans generally do not look beyond banks or venture capitalists, yet insurance companies have been for many years lending out money at very favorable rates to firms with proven sound management. While management or leveraged buyouts have usually been done by mature firms with property or other assets being used to guarantee the loan, a company in Colorado has come up with a new method for management buyouts which involves no debt on the part of the buyers, and leaves the borrowed capital free for expansion for a growing company. Holland, like many other European countries, has been hard hit by the recession. The Dutch have come up with a method to help them solve their money problems. They have formed a venture capital company which will, for a piece of equity and a seat on the board of directors, give money to American firms establishing businesses in Holland.
Publication Name: Inc.
Subject: Business, general
ISSN: 0162-8968
Year: 1984
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Toward a More Perfect Union
Article Abstract:
Robinson-Nugent Inc. is a manufacturer of electronic parts. The Robinson family founded the firm in 1943. The company is currently experiencing a sales surge. The company has been making gains at the expense of larger competitors. At one point in the company's history the tension between labor and management was dangerously high. The path taken over the past thirteen years to the model of management-union cooperation which Robinson-Nugent now has is described.
Publication Name: Inc.
Subject: Business, general
ISSN: 0162-8968
Year: 1984
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