Executive Changes that could Impact

February 7, 2013
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Executive changes could have an impact on Four Seasons' expansion into Brazil

Changes in the executive hierarchy can yield both positive and negative results, and it's up to the individual to ensure their organization is put in place to succeed in the future. At Four Seasons Hotels, Inc., a change in CEO could make or break the company's efforts to expand into Brazil.

According to multiple sources, the hospitality provider is dismissing Kathleen Taylor, who had ran the hospitality company for the past three years, and replacing her with Isadore Sharp, the Four Seasons' founder and chairman of the board. Sharp had been CEO until 2010 when he picked Taylor to be his successor and he is resuming his role on an interim basis until the next full-time CEO is selected.

Sharp spoke with the Globe and Mail after he stepped down in 2010, indicating that he would always be around in some capacity.

"The role of founder lasts forever," Sharp said.

Although there is no official reason as to why Taylor has left the company, the person who ultimately fills her shoes has a lot of work to do if they are to continue the global progress she had been making. One of Taylor's key initiatives during her three-year reign was expansion into South America, particularly in Brazil. For this to continue, the new CEO will have to learn and understand the ins and outs of Brazilian business law.

This is something that all businesses should be aware of, especially if they are experiencing executive changes. New CEOs are likely to be ambitious, so expanding into places like Brazil is an obvious step. However, if these individuals don't have a strong understanding of the laws in Brazil, they may not be successful in their new positions. Working with Brazilian lawyers will help corporate executives with their expansion efforts.

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