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THUNDERBIRD. THE AMERICAN GRADUATE SCHOOL OF INTERNATIONAL MANAGEMENT • VOLUME 53. NUMBER 2. 2000 Come Toget1\er! Technology Shrinks our World Thunderbird Marketing: This is a draft composite of an ad for Thunderbird The completed advertisements will be appearing soon in major publications. hunder Who 7··· · · • e. le:!! I..LJ ~ UJ U z « > o <! a::: uJ uJ "4". U •• •• • \!) "t- O .,.) u> Vo' ~ • • School Defines Branding Strategy It has been one of the world's best kept secrets-small, unknown, all but buried in the arid southwestern United States. Beginning in 1946, thousands have come, learned, and left, nomadically crisscrossing the globe and nearly every major industry. All along the way, they find and befriend talented young pe0- ple, then all but whisper: "Hey, why don't you go to Thunderbird." Thunderbird has never before embarked on a worldwide market-ing campaign, let alone leveraged its alumni base or formed a fullfledged branding strategy. Now, all that is changing. Thunderbird has long been recognized as the top-ranked international business school in the United States, and one of the best in the whole world. But in recent years, Thunderbird's brand equity has faced the threat of erosion in the wake of offerings by larger, universitybased business schools touting their uglobalness." "Rapid globalization of industries and the advent of ecommerce has dramatically changed the education field," said Roy A. Herberger, Jr. president of Thunderbird. "Today, there are, literally, hundreds of other schools out there on the Web saying, 'We're global and we're the best at something: It was time to stand up and tell the world, 'We are Thunderbird and this is exactly who and what we are:" "T-birds are so mobile and successful that the outside world often perceives Thunderbird as being right up there with the 'big boys' in terms of brand perception," said John Willie, the executive-in-residence responsible for the revitalization of Thunderbird's brand. "But the truth is, our revenue is incredibly low compared to the competitive company we keep. So we can't plaster the world with high-priced ads; we have to out-innovate the competition by utilizing the alumni assets-and all those traits T-birds are famous for." And yet. the School has this month begun strategically placing ads similar to the mock-up at the left, which feature real T-birds in world settings and highlight our language, cultural and business emphasis. The ads are meant to convey to the world the core idea of what it really means to be a T-bird. That message is encapsulated by the brand strategy Willie and a team of students came up with after conducting in-depth market research with alumni, students, faculty, and non-Thunderbird executives. The overall marketing brand strategy is "Lifelong Global Positioning." To illustrate this concept. Willie pointed out the way in which global positioning systems [GPS] utilize satellites to pinpoint a spot on the earth's surface . "It takes at least three satellites to locate any point on the Earth," said Willie. He likens Thunderbird's offerings to three satellites, representing information, knowledge and the Thunderbird alumni network. ·Put all three together, and we can help our customers with their lifelong learning needs throughout their lifetimes; said Willie . The centerpiece of Thunderbird Lifelong Global Positioning will be the school's web site: http://www.t-bird.edu, which is now being ::o'l> redesigned to be compatible with our brand strategy. 0 ·Our customers will be able to tap into Thunderbird's global network ') to fulfill nearly every business need-whenever they need it- ~~ throughout their careers, and from anywhere c., in the world," said Willie. ~ • •• • • Lindsey Michaels l-3~ NO\l-.q ~\ -;'>- 6~ -o "t- • • • • • • • THUNDERBIRD. THE AMERICAN GRADUATE SCHOOL OF INTERNATIONAL MANAGEMENT • VOLUME 53. NUMBER 2. 2000 -OVER STORIES 4 It's an eWORLD After All Although Walt Disney's famous 'small world' phrase was mostly right, it has turned out to be more of an 'eworld' after all. 12 Global Supply Chains Go Virtual Thunderbird's Dr. William E. Youngdahl shows how virtual supply chains are breaking time and space conventions. 14 Global Sourcing Tab Tsukuda '95 (EMIM) illustrates exactly how global sourcing policies affect the bottom line. 16 Supply Chain Management Becomes an Art Good global sourcing strategies control corporate destiny-which is why companies like Holeywell and Ford are turning to Thunderbird. -EATUHES 1 THUNDER WHO? Thunderbird defines its brand strategy and embarks on a worldwide marketing campaign. 3 ALUMNI COMMUNITY RECONNECTS It's called Alumni My Thunderbird and more than 6,000 alumni are already maximizing this power online tool. Are you? 17 A PROGRAM FOR EVERY NEED Lifelong learning takes many forms, and Thunderbird's highly ranked Executive Education programs are addressing a surprisingly-broad array. 28 HOMECOMING 1999 OFFERED VENUES FOR ALL Nearly 500 Alumni flocked back to Thunderbird for Homecoming ... for the workshops, the social functions and at least one visit to the Pub. 32 FIRST LATIN AMERICAN REUNION FOLLOWS HIGHLY ACCLAIMED AMERICAS CONFERENCE A strategic alliance with The Miami Herald strengthens Thunderbird's brand image in Latin America - EPARTMENTS 20 LETTER FROM ELSEWHERE Not British, Not Chinese: Hong Kong must redefine its identity, says Meredith Peabody '96 (EMIM). 22 EYES AROUND THE WORLD Messenger of Peace: Madame Jehan Sadat, the widow of slain Egyptian President Anwar Sadat, shared her warmth during an extended pre-Ramadan visit to Thunderbird. 24 CAMPUS NEWS 26 NETWORK NEWS 35 UPDATES I j,11!!1/('I'/)irl/ ,\ 11.1.lio!! ,~ltlll'l!!I'!!1 \ \( 1/1'1'{/(i/' /1 ir.; /1/'(11 (i /I Id / il/(/il 'II/III dl 1(1 .1('j'I'(' 1/'(' dl/I'dll(,((/ 1J1111l,{()/'/i/(1I/ //('('(/1 " (I/'i i/ I (Tild I ililid / {' ill (i!' iI11 '.'. Visit Thunderbird at www.t-bird.edu Alunmi Conununity Recormects by Jessica McCann It's a desire that crosses many cultures, a feeling shared around the globe. It's the wish to be part of a "community" -to connect with people who share your interests, beliefs and goals. You already belong to a unique community of internationalists. And, now, a lifelong connection with other members of that community is only a "click" away. Last November, Thunderbird embarked on a new era of communication when it launched an online community for alumni, Alumni My Thunderbird CAMTB). This free service offers Tbirds lifetime email, discussion groups, job postings, School news, and a search feature that allows them to locate fellow your interests, where you work, how you can be reached. You can even add links to your personal or corporate websites." Within this password-protected online community, alumni have several tools to help them stay in touch with their far-flung friends and colleagues. The T-bird Network Search allows them to find old friends (and new ones) based on search criteria they choose. Discussion groups keep the lines of communication open on a variety of topics. Hundreds of groups already have been formed, ranging in topic from "Job Exchange" and "Mergers and Acquisitions" to "Global Sounds" and "Regional issues in Latin America" Using Lifetime email, T-birds ensure alumni by name, class year, geographic location, job function and industry. More than 6,000 alumni have already registered and Alumni they'll stay in touch regardless of where their travels may take them. begun using the system to stay connected with one another and the School "This is a very cool, value-added feature. rve already looked up most of my close friends from School and am making contact with people I haven't seen in years," commented Jeff Schlueter '90, who was among the first to sign on. Thousands of recent graduates have already experienced what the first phase of My Thunderbird could accomplish on campus for students, faculty and staff. It has provided an exclusive forum for discussion, a way to stay up-to-date with campus news, and a method for easily exchanging information. Future graduates will experience a seamless transition from the campus intranet to the second phase of My Thunderbird, the alumni online community. Their logon IDs and passwords will remain the same, and the switchover will happen instantly. Yet, with all the alumni community has to offer, grads will find even more value in My Thunderbird than before. "With the 'Personalize' feature, you control what personal information alumni get to see when they search for fellow Tbirds online. And the more information you choose to share, the more valuable this networking tool becomes," explained Joy Lubeck '86, assistant vice president of alumni relations for Thunderbird. "You can personalize your proffie as much or as little as you choose-tell other alumni about yourself, "Since our buddies often fly off to different parts of the world upon graduation, this is the only way we can stay in touch," said TIm Sultan '96. In addition to its networking features, AMTB is also a content- rich website that is updated regularly. It includes information about School-offered programs, services and alumni discounts. The Start Page features news items that highlight upcoming events, School and T-bird achievements, volunteer opportunities, and more. Other areas include photos and highlights from Thunderbird events, a campus photo gallery, and a "Reading Room" with articles and speech transcripts from alumni, students, faculty, and guest dignitaries and speakers. The School's technology development team also is already working on improvements to AMTB. Based on feedback received from alumni, some enhancements were implemented within weeks of the launch-refined tutorial and help features, an enhanced logon page and process, and new industry and job function categories for alumni searches. Other, more dramatic, enhancements will be part of an AMTB 2.0 package expected to rollout by summer 2000. The 2.0 version will include new features for alumni to create and customize their own areas on AMTB, new Thunderbird Alumni Association (TAA) Chapter and Regional Council sections, Chapter Pages, simplified 'Personalize' features, and more. "We want this to be a tool alumni will eqjoy using, and will use often, to stay connected to the Thunderbird community," said Joe McVicker '98, Thunderbird's director of application development. "In the short time AMTB has been up and running, we've received hundreds of suggestions from alumni for ways to further improve the system. We take that feedback seriously and intend to continue working with the Alumni Relations Office to make this a tool our alumni can't live without. " Sign on today at http://alumni.my.t-bird.edu. • Joe McVICker '98 (left), Thunderbird's director My Thunderbird to Argentina Chapter Sasagu Usui '95 during the Chapter Conference at the Latin America in Miami. By LINDSEY MICHAELS hirty years ago an 'eticket' was the coveted coupon that got you on the best of Disney's rides-and the Internet had just been born. Today, the Internet is the planet's hottest ride, and an 'eticket' is an electronic airline pass. And although Uncle Walt's famous 'small world' phrase was mostly right, it's turned out to be more of an 'eworld' after all. The Internet revolution will almost certainly change modern life and commerce more significantly than anything since the Industrial Age began. It has nearly limitless potential. Now that the secret's out people around the world are asking: "How do I prepare?" "The Internet is as important as the invention of the television or telephone, but much more valuable," said 1ravis Good '84, vice president of technology and operations, America Online (AOL) International. "Unlike anything in history, it's touching and changing every comer of our lives." According to Good, the Internet is prompting two fundamental changes to people's lives. "It's letting you keep in touch with whomever, whenever-<:reating a new standard that lets you communicate wherever in the world you are. It's also putting information access at everyone's disposal-whether that be If you don't know information you need for school, business, or something you're interested in at home." Email, alone, has already revolutionized modem communication capabilities, allowing friends and colleagues to flatten the time and space continuum to stay in touch. Programs even make it possible for them to have live email 'chats' and to use their computers as low-cost long distance telephones. But, email is just the tip of the Web iceberg. By using the Web, people can do everything from conduct competitive research to order groceries. Businesses can eliminate mountains of purchasing and import-export paperwork. They can even use the Internet to have foreign manufacturers run diag-ebusiness, you might be out of business! That's because the Web is taking us all one giant leap closer to a world economy. THUNDERBIRD 53 12 I 2000 nostic tests on key machines then send replacement parts before the end users even suspect potential breaks. Just how prevalent is Internet usage? Consider this: • According to Nua Internet Surveys, as of September 1999, an estimated 201 million- plus people were already online worldwide (see chart, page 11). By all accounts, that number will explode. • While consumers spent US$31.2 billion online in 1999, they will probably spend ten times that, or $380 billion, in 2003. • Although online business-to-business commerce totaled just US$19 billion in 1997, it will surpass $250 billion this year, then climb past $1.4 trillion during 2003. "There's just never been this type of opportunity before, so broad, so pervasive, so convenient," Good said. "And those of us who seize this opportunity have a chance to do something important in business and in people's lives." To understand the business potential of the Web, just look at Dell. You, literally, cannot buy a Dell computer in any store. Yet, Dell is the top PC seller in the United States and it's No.2 worldwide, trailing Compaq by just 2.2 percent of market share. By eschewing the traditional 'brick and mortar' mindset for a Web-based 'click and order' one, Dell is selling more than $35 million worth of product every day. Analysts expect those sales to increase as Internet use becomes pervasive globally, especially if customers can simply sign on to Dell.com, scan the product offerings, make a choice or two, and hit 'submit' to get computers shipped directly to their homes or businesses. "When designing a site for doing business on the Web, the customer's experience and ease factor have to be the most important element," said Annette Berksan '77, an Internet development analyst who works with Dell's Home & Home Office Web group. Berksan was part of the team that worked on the rearchitecture and redesign of Dell's site-which took nine months to create and went live in November '99. "The big joke around here was that the old site looked 'so '98'," she said. "That's because Web technology and usage knowledge change so rapidly." Berksan said that Dell officials believed their former site had gotten 'cluttered'. The new Dell site strives to be 'cleaner and more customer convenient- which, studies show, is absolutely critical to customers worldwide. Although Dell is considered to be one of the world's most technically advanced Web sellers, it still wrestles with all those weighty 'global by default' Internet issues--like, 'localization,' which is especially important given the strong correlation between customers' perceived Web comfort level and their degree of Web usage. Thus, like others, Dell had to address three core localization concerns when redoing its site. They were: Should we create a custom look and language site for each country? To what degree should we invest in translations for each site? And, should we employ a branded or unbranded site strategy? Given that Dell and AOL serve different types of businesses and customers, each has answered those questions somewhat differently. Dell provides a pull down bar I:>n:,umer aspect. Inta'net and thars the Internet., But thft's only a fraction of InjiMlt 41111_4Iref)usfr. olM!ratio...wJJe part that oct that For instance, a General site could see special GE orM!' ill' p I .,jIl .... about which "del:, Gle:tr'efers.'IHIs:i~ht~""~.!!!J~ guided or restricted electron iTHUNDERBIRD 53 /2/ 2000 level coded so that they could order .horizat:ion to order different ones. subWiltractolrs, who forward them to UPS, The Internet also allows for which lists 80 countries. Customers select one and, in most cases, are transported into a local language site. Each site has the same 'standard' look and feel, although depth-of-site and product promotions are determined by one of four regional Dell teams. AOL, on the other hand, has expanded by creating partnerships, allowing each to create a unique AOL seIVice for its locale. "Since being global is crucial to our success, we use a joint venture international expansion strategy," said Good. "AOL brings the technology, the brand, and the know-how, but together with our local partner, we select a team that is almost 100 percent made up of people from that country, people who are going to understand the personal preferences of the local people as well as their preferred business style. " Another critical Web issue involves 'driving' people to one's site. The bottom line is that the optimal marketing mix often differs from country to country-and by customer. Dell, for instance, uses direct mail heavily. "What we find," Berksan said, "is that people often come to our site from catalogs- especially our business clients. On average, they visit five times before they buy. And even then, some are more comfortable picking up the telephone." Thus, Dell provides a telephone order number on most sites. Dell also offers custom sites for key business and government clients, which is important since they account for 70 percent of Dell's business. (See sidebar) "One of the things we find that's quite effective is 'sticky content, '" said Per Huge-Jensen'94, director of new business development at Fry Multimedia, a Michigan-based full-seIVice Internet and application development firm that boasts retail giants like Godiva Chocolatier, Eddie Bauer, Crate & Barrel, 1-800-Flowers.com, and Harrods among its clientele. "For instance, people create a 'wish list' from that site and email it to friends and family. Or, they participate in sweepstakes where they have to register, or sign up for 'opt-in' emails about upcoming promotions and products." According to Huge-Jensen, his company averages a 20 percent response rate on targeted emails. Sean Judge '94, Fry's director of sales, added, "The Internet is all about 'relationship marketing,' about personalizing the shopper's start up page based upon information they've already given-or that you've captured. It's also about conve- THUNDERBIRD 53 12 / 2000 Global Sales Unleash the power of the Internet to harness international sales opportunities. Contact Dave Carlson (class of 185) at Net Works Communications (1 .877.850.9300) or visit us on the web at www.networkscom .com . • electronic commerce • database integration powered bye§ ™ • internet marketing • web site design • intranet/extranet • web site hosting Net . orks® COMMUN i CATIONS • global logistics • legacy integration www.networkscom.com Toll free : 1.877.850.9300 Outside the US: ( I )303 .850.9300 Fax:303 .850.9383 profits@networkscom .com • •• • • • how much to invest nd how best to levailge new technology? UEo merce is such an en ous undertaking that the typical questions abou ho to udget don't apply." i,;.j! .... tMim .. g ... gij ... ",n@.¥"'A'W;",i,,q?Ui'itttiDmmii.,,, .. rumm,,,,,. nience." Judge cautioned that "the product should only be one click away from the buy" and added that, "based upon our statistics, visitors only click 1.8 pages deep into a site." That fact, he said, forces you to build sites that immediately convey a sense of trust, create a relationship, offer ease of use, and entice the visitor to make a purchase. Fry has been building upon these principles since mid-1994 when the company deployed one of the first ecommerce consumer packaged goods site on the Internet complete with today's popular 'shopping cart' functionality. "Today we are seeing more and more of our clients using usability studies to perform tests on the information architecture, navigation and buying process to get the most possible out of their sites." This all adds up to significant investments by Fry's clients, upwards of US$8 million to $12 million per year for Web initiatives. Judge and Huge.Jensen are quick to add that the discovery and needs assessment phases are the most critical of any Internet project. Taste, tariff, taxation, and fulfillment issues are but a few. For instance, would someone in Greece get in to Godiva? And how would you market fresh-cut flowers to Frankfurt? Or deliver computers to Senegal? Even if you sort out the tariff and taxation issues involved in getting your products sold, what's your plan for handling service claims or customer returns? Dell addresses those issues by dividing the world into districts. In the United States., consumer orders are shipped from Nashville, Tenn., while business orders are tracked from its Austin, Texas plant. Overseas, orders are sent from the appropriate plant in Brazil, China, Ireland or Singapore. Each plant configures models specifically for its client groups-a fact that has thwarted many an otherwise computer savvy traveler. After all, it's tough to decipher fonts when they're displayed in Arabic or screens that convince you that the machine before you was made on Mars. "Here in Japan, our computers are configured to use the double byte systems for Kanji characters, not the single byte system you see in the U.S.," explained Kenji Fujisawa '95, who is a strategic planning manager in Japan for Dell. "The Japanese market is also very different. For people who commute by car and who have big offices, it's difficult to understand why SONY's light and handy B-5-size VAIO has been the best selling PC in Japan. But we commute by train or walk and have small offices. Fortunately Dell just introduced a B-5-size Notebook." Luckily, the Internet itself makes tracking tariffs and taxes easier since both data and figures can be pre-programmed and quickly changed. "100 percent of the more than 4,000 suppliers that advertise with us each month on Asian Sources Online are connected," said Jim Strachan, executive director of Asian Sources, "even the 800 companies that are based in China" Asian Sources, which is owned by T-bird Merle Hinrichs '66, who helped Thunderbird build its heavily data-driven library, has long been the leader facilitating Asia's business-to-business trade with the world. The company began with print, then added its asiansources.com site in 1995. Hinrichs' company recently established a new site, called globalsources.com, to extend the business model globally. "Asian Sources primarily helped global buyers and Asian-based suppliers find each other," Strachan said. The suppliers pay a monthly fee and get a marketing Web MAY THE WEB BE WITH YOU! "Traditionally, movies that are advertised on the Web are one shot deals. They come and go," said Jim Ward '83, vice president of marketing for Lucasfilm, Ltd. "The Star Wars site is already 2,000 pages deep and going strong. But then, Star Wars has 22 years of equity. " Besides its successful films and Web site, Lucasfilm also boasts the two largest download events in history. The company began using the Web as a way of continuing a daily dialogue with its fans and it was a big hit. When Ward launched the first Episode I trailer on the Web site, excitement flared and five million people downloaded that clip within the week-a total of ten million within the month. A second trailer was downloaded 25 million times. Ward said that since Lucasfilm is a 'film content' company, he doesn't have immediate plans for translating the bulk of the Star Wars site. "We translated the film into 16 languages, but we don't anticipate doing any deep site translations for right now," he said. "For one thing, it's very costly. For another, the majority of our audience is still in the U.S." Ward added that 90 percent of its Star Wars site visits come from the U.S. while the remaining ten percent come from Japan, Germany, the U.K, and Australia. Lucasfilm has, however, translated the Star Wars home page into six languages to make site navigation easier. "You might be surprised to learn that our Web site actually created challenges," he said. "The Web truly represents the democratization of information. It's instantaneous and instantly accessible. The site was so well visited by U.S. and foreign press that everyone around the world got the same marketing messages at the same time. Since we usually roll out movies at different times around the world, we had to start our worldwide marketing way before we normally would have planned. Gone forever are the days of the traditional movie press release," he said. "From now on we'll just post most of the information on our Web site." Jim Ward and his wife Dawne are both T-bird graduates. THUNDERBIRD 53 12 I 2000 site hosted on the Asian Sources portal. Asian Sources Online developed the reputation as being so comprehensive that any company that needed an Asian-based supplier knew the Asian Sources site was pretty much a one-stop shop. Today, the globalsources.com Web site is taking that one better. It offers a growing database of suppliers from throughout the world, accessible in global, regional, country, industry-specific or the private Buyer Catalog customized format. "Global sourcing is growing even more important to retail buyers and other importers. We add value by helping them leverage our network to fmd the best deal globally,» Strachan said. But moving forward the real value is substantially enhanced. "Historically, the import buying process has been mostly paper based. Our next generation will help companies communicate and exchange transaction documents electronically. Information won't have to be rekeyed-which makes it time consuming and error prone. It's just a massive transformation of the way international business will get done. » Even though the Web makes finding and buying items easier, shipping to and servicing customers remain complex. While companies like FedEx and UPS offer stateof- the-art online package tracking in the United States and most regions, delivery and tracking remain more challenging abroad. So does service. While Dell's Berksan said that each Dell system has a unique service tag number that customers can enter online for diagnostic help, online service capabilities do differ by region. The truth is, it's still easier to deliver information than products on the Web. In many areas, regulatory issues, customs, and logistics present as big a challenge as implementing the technology itself. "By and large, the technology for doing local and even cross-border trading throughout the world already exists,» said Bea Calo '82, director of international business strategy for E*TRADE. E*TRADE is an online trading company that allows ordinary people in the United States,. Canada, Australia, the United Kingdom, Japan, France and Sweden to manage their own portfolios by giving them online access to information about securities that are traded on their country's exchange. With E*TRADE, investors also execute their own trades with a 'click' Calo said that E*TRADE chose Canada and Australia as its fIrst two expansion spots, primarily because of language and 10 THUNDERBIRD 53 121 2000 cultural similarities. Yet, as with any international entity, there were issues. "The whole concept of individual investing and self-managed investments is very new outside of the U.S.," she said. "So is the comfort level involved in doing your own research, then telling a machine to do what a live broker used to do." In Australia, for instance, where the country's entire stock market only generates about the same volume as E*TRADE itself, investors found all of the American-style charts, graphs, and analysis tools too overwhelming. "Their United States, an estimated 90 percent of businesses with more than 500 employees have T-1 access, whereas only about five percent of the smaller ones do. Even people in rural America are at risk, since 86 percent of Internet capability is concentrated in the nation's 20 largest cities. That figure is even worse in Latin America and other regions that don't have sophisticated communications infrastructures. Thus, even though someone might be 'online,' don't assume that they 'surf the net and shop just like Americans. The reality is comment was, 'This is too complicated. It's too much.' So, we've learned to add features slowly in each country." THE WIRED WORLD that most might only sign on every fourth day or so-and then, just for a few minutes at a time. AOI:s Good understands the challenges Calo faces. "Every country has its own timeline for widespread adaptation of the Internet," he said. "There's a certain point at which this mass 'ah ha!' takes place. Where the average customer says, 'Wow! I really need this!' It's all about timing. If you get in too early, you're just wasting money. But get in too late and you face wellentrenched competitors and it will cost you more. " An estimated 201 million people were online world· wide as of September, 1999, according to Nua Internet Surveys. Here's the best guess as to a regional break· down. But just like the Berlin Wall, Internet entry barriers will fall and that 'mass ah ha' will come-market by market. Will you be ready? New satellite and cable technologies are already coming into play, Canada & USA 112.4 million as are new delivery vehicles. AOI:s Good said that Internet and email access are already available to some degree through televisions, cell phones, and Palm Pilots. Gas pump access is coming soon. Someday having wristwatch access isn't even that farfetched. " ~pe ,"Asia/Pacific '",,*" , lati;{America Africa Middle East 47.15 million 33.61 million 5.29 million 1.72 million 0.88 million Issues that affect that 'mass ah ha!' are pretty simwww. nua.com ilar even if adaptation rates differ. One of the most obvious initial qualifiers-at least for now-is PC access. Computer costs are still considered somewhat prohibitive in most countries, as are telephone and service provider connection costs. Thus, initial access in most countries begins at work-where people tend to start with email access, then advance to intranets, then Internet service providers (ISPs) like AOL. Schools are another common 'contact' point, which means that children who reside in countries-and even U.S. regions-with relatively poor education systems still fall behind. The good news is that the Internet frenzy keeps snowballing as understanding heightens and rates fall. In Germany, for instance, it only took AOL about one-half the time to reach the million-subscriber mark as it took in the United States. Bandwidth and connectivity issues are also of concern. Companies without the faster-loading but much more costly T-1 phone lines lose market edge. In the "The Internet will eventually become transparent and we'll live in a world where service, convenience and information access are paramount," Good said. "That used to bother me because I thought it would make the world homogenous. But the Internet is doing just the opposite. It's letting every color in the rainbow represent itself, every small culture or dying language reach the world, every product that's only needed by 1,000 people find its niche. That's the real power of the Web." • email addresses: Travis Good '84, firstname.lastname@example.com Annette Berksan'77, firstname.lastname@example.com Per Huge-Jensen'94, email@example.com Sean Judge '94, firstname.lastname@example.com Kenji Fujisawa '95, strachan@globalsources. com Bea (alo '82, firstname.lastname@example.com Jim Ward '83, email@example.com THUNDERBIRD 53 12 1 2000 11 12 by William E. Youngdahl, Ph.D., assoc. professor, operations management The bricks-and-mortar to ecommerce transformation occurring throughout the globe positions the new millennium as an era in which business models will drive supply chain capabilities to new levels. The ability to place products in virtual shopping baskets and have them appear at a front door in a few days is just the beginning. Mass CllStomization exemplified by Dell Computer Corporation's direct model created and continues to create customers as configurators- we as customers want and even demand to configure products and seIVices to meet our own unique needs. The overwhelming growth in ecommerce enabled by Web-based order entry and custom configuration drives a whole new way of thinking about the global 'virtual' supply chains required to manufacture and deliver products and manage informational and financial flows along dynamic networks, even communities, of suppliers and customers. The current revolution in global supply chain management pushes the limits of the meaning of virtual-capturing the desired essence or effect without the burden of conventional notions of reality. That is, virtual supply chains deliver products and seIVices to customers while breaking conventions of time and space. The Velocity of Inventory Michael Dell's direct business model shines as an exemplar of virtual supply chain management. He dispelled fundamental assumptions underlying supply chains by asking the simple question, "If we want to earn higher returns, shouldn't we be more selective and put our capital into activities where we can add value for our customers, not just into activities that need to get done?" A decade ago, computer manufacturers firmly believed that making components constituted an integral capability that served as a source of competitive advantage; some still do. Dell eI\ioys all of the flexibility of ownership by establishing information-enabled relationships with capable suppliers while avoiding the shackles of capital outlay. Dell focuses on the velocity rather than quantity of inventory. By working with reliable suppliers such as Sony, Dell can actually manage zero inventory in some cases. It does so by leveraging such innovations THUNDERBIRD 53 I 2 I 2000 as using UPS to match computers from Austin with monitors from Sony's factory in Mexico. The bundled packages are then shipped directly to the customer. Close coordination with suppliers and customers via extranets replaces inventory with information. Supplier Power = Consumer Power While most are familiar at a basic level with the workings of the direct model, we recently stepped out of the box to ponder the future of automobile buying and the value chains associated with this future. Last year, Ewan Gillespie, an MlM student in a Corporate Partners course at Thunderbird developed a futurist scenario describing an automobile purchase. An excerpt follows: "Put the salesman in the back seat." Jane muttered autobuy's TV jingle as the cable modem quickly brought the multimedia site to life. Knowing she wanted something to show that she had moved up in the world, Jane clicked on the sporty two-seater zooming around the screen. A message came up asking which she wanted to choose first, the inside systems or the body. She knew that, from a performance standpoint, it was best to start from the inside and then choose a body that matched, but she wanted to make a fashion statement So she clicked "Body." Jane could see how she would look inside each model, because the digital camera mounted on her computer display had taken two pictures that allowed the site to map a 3D rendering of her face onto Supply Challis Go VIrtual is from bricks and mortar to ecommerce or the other way around. Also, what type of Customer Relationship Management (CRM) Information Technology (IT) infrastructure will be needed to support purchases and track customer preferences? How will this play out across cultures? the mock driver. Although a few of the newer styles were tempting, Jane loved the retro models from past decades. She was tom between the '90s and the '60s, so she spent several minutes comparing different models in various simulated environments. Finally, it was the 3D rendering of the '64 Mustang gliding over a winding mountain road that grabbed her. "Perfect!" she said. Having settled on the basic style, she needed to choose a color. The "InfiniColor" system let her see herself in the Mustang in a mind-boggling selection of colors, but she quickly went for the Classic Red. Next, she moved on to the guts of the car. The car was made up of ten different modules, and several manufacturers had versions of each one. Prices were displayed next to every choice. Although autobuy.com offered detailed information on each system to allow an informed choice, Jane chose to zip over to ConsumerReports.org to get the low-down. The seIVice cost $10, but Jane was happy she did it. For example, she noticed that the cheaper transmission from Transco had some reliability problems, so she decided to shell out the extra hundred for the higher-rated VIsteon model. But she didn't need any advice when it came to the engine. Everybody knew that Lakemens was best. Although the Lakemens 450 MV6 was almost twice the price of the respectable Nissan 333, she consoled herself with the five percent discount she received for agreeing to put the "Lakemens at Work" logo on the driver-side door. Ten minutes later, Jane had selected the remaining modules and secondary options, and she viewed a detailed picture of her handiwork with considerable satisfaction. But she still had to think about the delivery option. Standard delivery? Or, could she wait an extra four weeks for the Brazilian assembled version, which was $500 cheaper? Or, did she want to pay a $600 surcharge and have it in two days? Feeling a bit guilty about that pricey Lakemens 450, she decided to forego the fast delivery and settle for the standard one-week delivery. After clicking through the financing, a message appeared advising Jane of an incoming call from autobuy.com. Jane accepted, and the welcoming face of a middle-aged woman appeared on the screen. "Hi! I'm Beth," said the lady in a friendly Australian accent. "Great choice, and thanks for using autobuy.com. You can pick up your new car next Wednesday at the Car Country Megalot on Central. lf you have a trade-in, bring it down, or John can pick you up in our shuttle. And remember our famous guarantee: If you're not completely satisfied with your new car, just bring it back in the original condition within five days for a full refund." She looked down at her dog, Mitts, and said, "How about that mountain road next 2. Does the vision for the future build from an operational Enterprise Resource Planning (ERP) System? ERP systems such as RJ3 from SAP facilitate enterprisewide sharing of data. While such systems have been costly to implement, the benefits of shared data provide a necessary platform for coordinating enterprise efforts on a global basis. Without some form of ERP, global enterprises often find inter-business unit communication across homegrown 'legacy' IT systems By working to be extremely difficult or Wednesday?" Far fetched? Perhaps not. Since the scenario was written, GM and Ford have announced sweeping initiatives to integrate customers' ecommerce buying experiences with networked supplier communities around the globe. They are stopping short of mass customization with reliable impossible. 3. How will we manage the suppliers such inter-enterprise integration to as Sony, Dell can optimize flow of material, information, and payments? actually manage This is the crux of global supply zero inventory chain management. As organiin some cases. zations such as FedEx and UPS continue to dazzle customers that includes complete customization by module. But as suppliers gain power, as did Intel and Microsoft in the computer industry, the leap to customizing across platforms could become a reality. If this happens, we will see an ebusiness structural migration of the entire auto industry as we have seen in the computer industry. This ebusiness structural migration means that executives will start with mass-customization value propositionsprovide what the customer wants at any location at the lowest possible cost-and design supply chains to fulfill the value proposition. Many value-adding activities such as logistics and component manufacturing migrate out of the company and into the hands of capable suppliers while retaining only the most fundamental of core competencies. Creating Your Future Consider pausing from your busy schedule to develop a futurist scenario for your own business. In writing and reviewing your futurist scenario, ask yourself the following questions: 1. How will customers buy products and services in my industry? When you consider new marketing and distribution channels, don't overlook the transition from existing ones whether the transition with abilities to move material, information and the coordination across applications- the 'killer apps' such as ERP and CRM-become the keys to successful design and execution of global supply chains. Additionally, integration across the supply chain requires collaborative planning, identification of bottlenecks, establishment of shared performance metrics, and serious consideration of shifting responsibilities to those best equipped to perform. Building virtual global supply chains requires an extension of recently popularized knowledge management to the emerging field of supply chain management. Broadly defined, knowledge is information that can be put to business use. The challenge of global supply chain management will be to use knowledge rather than excess inventory to hedge against marketplace uncertainties and delight customers with customized and localized bundles of products and seIVices delivered wherever and whenever desired. • Dr. Youngdahl has written a chapter on global supply chains for The Thunderbird International Business Review, published by John Wiley & Sons. He can be reached at (602) 978-7050 or email@example.com. THUNDERBIRD 53 121 2000 13 14 THUNDERBIRD 53 I 2 I 2000 Tab Tsukuda '95 (EMIM) said that a 5 percent reduction in material cost can have as much profit margin impact as a 28 percent sales increase. ncreasing global competition has compelled many firms like Bechtel Corporation to seek out world class suppliers wherever they might be. Correspondingly, among large U.S. manufacturers, an estimated 72 percent now procure goods from sources outside the United States. Simple Fact: When the goal is boosting profits by dramatically lowering costs, a business shouldfirst look to what it buys. On average, manufacturers sheU out 55 cents for each doUar of revenue on goods and services, from raw materials to overnight mail. Purchasing's New Muscle Fortune, February 20, 1995 Factor input strategies encourage finns to seek suppliers who can provide low cost goods and services or to find companies with superior technology. Market access strategies compel finns to seek suppliers who can facilitate access to local markets. Both strategies drive finns to seek globally competitive suppliers. However, the factor that leads most finns to seek foreign supply is low price. Management interest in this objective is simple: lower purchase costs can generate a marked improvement in financial performance. In the following illustration, a 5 percent reduction in material cost produces a profit margin improvement of 2.3 percent (from 8 to 10.3 percent). The same profit improvement can be achieved by increasing sales 28.8 percent. Many companies simply find a 5 percent reduction in material cost easier and less costly to achieve. Global sourcing is one tool used to reduce material cost. However, global sourcing is more than simply finding low cost producers. To successfully implement a global sourcing program, companies must be able to manage the increased complexity associated with cross-border trade. Two examples of business areas requiring attention are (a) foreign exchange risk and (b) import taxes. Foreign Exchange Risk Many buyers assume that by denominating purchases in their home currency (e.g., U.S. Dollars (USD)), they have eliminated foreign exchange risk. What these buyers ignore is the 'cost' of transferring the transaction exposure to the supplier as well as the cost savings opportunities that might be available. For example, a U.S. engineering and construction company is purchasing a power plant boiler from a manufacturer in Monterrey, Mexico. Who bears the transac- tion exposure depends upon the currency selected to denominate the purchase. The boiler manufacturer would bear the transaction risk when the order is denominated in U.S. dollars. The risk borne by this manufacturer is that they will receive less, in Mexican Pesos, than originally anticipated at the time of the quotation. This exchange rate risk can be divided into three phases: Quotation Exposure. Although our boiler manufacturer may hedge the price quoted (e.g., obtain a forward contract) , it is unlikely that the company will entertain this option unless it perceives a very high probability that it will receive the order. It is more likely that the manufacturer will increase its price to cover the associated transaction exposure. Backlog Exposure. The actual order marks the incidence of the transaction exposure. The manufacturer might hedge its expected payments at this time but unfortunately, this likely provides the buyer no pricing relief. Billing Exposure. The period of time between shipmentibilling and actual payment introduces exchange rate risk-particularly if the buyer imposes extended payment terms. To continue our example, assume that delivery and payment will be made one year after order placement. The Mexican manufacturer prices this order at US$2,000,000 or 17,500,000 Mexican Pesos (MXP). With the spot exchange rate at 9.2 MXPIUSD, some U.S. buyers might denominate the order in U.S. Dollars assuming FORWARD RATES The exchange rate in a forward contract (forward rate) is a function of the spot exchange rate and the interest rate differential between the two currencies. In the case of the Mexican Peso and u.s. Dollar, interest rates in Mexico are higher than in the u.s. (by approximately 20 percent on an annual basis) and therefore the Mexican Peso trades at a discount in the forward market. That is, you receive 20 percent more Mexican Pesos per U.S. Dollar on a 12 month forward than at spot exchange rates. FORWARD CONTRACT A forward contract is an agreement where a bank agrees to 'sell' a set amount of a foreign currency (e.g., Mexican Pesos) for a fixed sum (e.g. u.s. Dollars) on an agreed upon date in the future (or during an agreed upon period). No money changes hands until the date set out in the contract. Forward contracts are the most commonly used financial instrument for hedging foreign exchange risk. that the foreign exchange rate risk has been eliminated at little cost to their company. However, our buyer recognizes that the boiler can be obtained for significantly less by denominating the order in Mexican Pesos-about $1,600,000 (USD) or $400,000 (USD) less than indicated by the spot exchange rate. The buyer's analysis appropriately considered the 12-month forward exchange rate, not the spot exchange I J f J rate. Our buyer was able to take advantage of the supplier's lower price (because the supplier was not forced to increase its price for assuming the exchange rate risk) and utilize an international financial instrument to his company's advantage. Import Taxes Another aspect of global sourcing involves the assessment of customs duties on imported goods. For example, if we return to our U.S. engineering and construction company, assume that our buyer is responsible for the importation of a Japanese steam turbine generator (STG) to be used in the new power plant. The components comprising the STG are a steam turbine, generator and digital control unit. Each is completed at a different time. Some buyers will ship the components as they are completed in an effort to minimize storage costs at the supplier's site. Unfortunately, this "cost saving" tactic actually increases costs. For customs duty purposes, the generator is classified as other than a generating set (HTSUS 8501.64.00) and is assessed a customs duty rate of 2.9 percent. The steam turbine is classified as turbojets, turbopropellers and other gas turbines (HTSUS 8411.82.80) and carries a duty rate of 5 percent. If we combine these components into a single shipment (albeit in separate crates), all of the components are classified as a generating set (HTSUS 8502.30.00) and carry a customs duty rate of 2.9 percent. Our buyer is thereby able to shave 2.1 percent (5 - 2.9 percent) off the tariff applied to the steam turbine and similarly save on the digital control unit as well. Additional savings are also available by combining the cargo on a single ship and thereby negotiating a better rate on the larger shipment. This opportunity is PROFIT MARGIN IMPACT MODEL Retumon Investment 10% (11K) not confined to high cost capital goods-it is easily repeated with low cost consumer goods shipped in volume. Summary Companies that continue to view purchasing as an administrative function (Le., just people who issue paper to buy something) will face increasing cost competition from firms that are able to effectively utilize global sourcing. Leading firms recognize purchasing as a value-added activity. Globally competitive companies will be increasingly staffed by purchasing professionals who are able to effectively transact business across borders. This article addressed only two of the tactical issues normally encountered in international trade: foreign exchange and import taxes. However, it should be clear that the effective management of just these two aspects of a cross-border transaction can have a significant impact on the cost competitiveness of a firm. Those firms able to manage the added complexities of cross-border trade can realize significant competitive advantages over less adept domestic competitors. Leading companies recognize that global sourcing is not just about buying something overseas-it is about achieving competitive advantage in increasingly global markets. • Tab Tsukuda may be reached at firstname.lastname@example.com THUNDERBIRD 53 /21 2000 15 LUMNIISERVICES SUPPLY CHAIN MANAGEMENT BECOMES AN ART When you spend billions of dollars a year on materials, cost cutting can make or break your company. Thus, effective global supply chain management has become one of the Holiest of Grails in industry. And yes, the Internet has opened up brave new worlds of opportunitywhere buyers and sellers can quickly meet. But in the end, good global sourcing strateby Lindsey Michaels In the end, Jones said, "Companies can always get their systems to 'play' once they get their people on the same page with goals and strategies." In fact, he added, having multinational sourcing and manufacturing options, as well as culturally sensitive buyers in many lands, can be a plus. "For instance, today's fighter aircraft are moving toward liquid crystal and flat panel displays," he said. "They're better and easgists and strategies control corporate destiny. That's Thunderbird offers formal Corporate ier to read. But Japan is the leader in that technology and its government, by constitution, doesn't allow technology transfer for weapons. That's when multinational creative solutions come in to play. Then, there are countries like Turkey that have offset requirements, which mandate one reason supply chain people are in demand and why companies like Consulting or Corporate Partnership programs to address nearly every global business need. Length, depth, Honeywell and Ford are and cost are tailored to client need. partnering with Thunder- The School also offers InterAd, where bird to have studentJfac- tailored teams do in-depth marketing ulty teams conduct key and product launch analysis, and ForAd, research. which gives top finance students "Honeywell Internation-real- world issues to strategize. For more al, which includes the old Honeywell and AlliedSignal companies, will spend US$5.5 billion on production materials this year," said Rich Jones '93 information, contact Thunderbird's Office of Corporate and Foundation Relations at cfr@t·bird.edu or (602) 978·7641. (EMIM) vice president of supply management for Honeywell's Space and Aviation Control unit. "In our old company, we used to spend 35 to 40 percent outside the U.S. That will be higher now, with more of our materials coming from Europe and Asia." Jones said that today's supply chain issues are more complex. They don't just involve finding quality, low cost materials. They involve predicting demand, designing to key supply specs, keeping material costs off the books, and expediting manufacturing and delivery. That's why most companies are moving toward strong, long-term supplier partnerships where buyer and sellers integrate systems, share detailed forecast and cost data, and even design products jointly. "Mergers, like our recent one, make supply chain issues even more complex because information systems, supplier relationships, and buying philosophies aren't always compatible," Jones said. "Here in the U.S., for instance, we tend to build longterm alliances that have more to do with strategic relationships than up-front price. In China, however, the word 'alliances' can be misinterpreted. Chinese buyers tend to view anything that's not pushing a lower price as 'fat,' and they're suspicious. " 16 THUNDERBIRD 53 121 2000 ence our through to Dr. Bill Corporate P that assesses strategies for with Ford for mic and real-WOfll(l-: widely by culture, so approaches must be expfameqj and standardized, Jones Said. year Youngdahl's students are looking at best practice sourcing strategies for a specific automobile system. "What makes this program work is the fact that Ford makes real-time company data available to me and our student teams," he said. "Team members also have access to Ford executives and key suppliers." Thus, the team does both primary and secondary research. It also brings a fresh perspective. "Sometimes, our corporate partners have us do their initial research. At other times, I think they're partnering with us to get a second opinion," Youngdahl said. "Remember, with global sourcing, there's up to 75 percent of material costs at stake so good research and having an added degree of certainty are paramount." Youngdahl added that students apply for each project, they often bring different culture and job backgrounds, and they are, ultimately, selected for program participa-by Ford ~ Yourlgd:ahl, Ford Korean Executives from the SK Group balance the weight of the world, both literally and figuratively, as they strengthen their position in the new I by Lindsey Micfw,els n one room, executives from South Korea's SK Group study global management. In another, Thunderbird International Consortium (TIC) members manage a merger/acquisition class. Nearby rooms hold people pursuing five different programs: a weeklong leadership course, a custom Pharmacia & Upjohn class, a local certificate program, a first-ever alumni course, and an English as a second language class. Meanwhile, in France, a 8T Microelectronics group works through a five-day class-while in Brazil, tradesmen tackle a two-day telecommunications workshop. And you thought Thunderbird's Executive Education group just taught the EMIM program! Say "Exec Ed" to Thunderbirds, and most think solely of the School's weekend degree program. Few people realize that Exec Ed now offers a full range of highly ranked continuing education programs for Thunderbird alunmi and non-T-birds. And more are on the way. So, if you still think Exec Ed only runs the degree program, you might be surprised to learn that Thunderbird's Executive Education programs are ranked in the world economy. Here, Chung Jae Ho gives the world a spin. top three worldwide by Busi ness Week magazine and that all of the following programs took place during one very typical week at Thunderbird. South Korean Group Has Three-Month Stay Twenty-three members of South Korea's SK Group near the end of three intensive months at Thunderbird. They've practiced English, experienced American culture, and learned key global business skills. Today they're working on final companyspecific presentations using what they've learned. The SK Group, which is South Korea's fourth largest conglomerate, or 'chaebol,' has sent 20 or more students per year through this program for eight of the last nine years. "Here at Thunderbird, I've felt the reality of globalization," said Park Bok Soo, then a senior manager at SK. "Students come here from various countries, and study hard. They will be my-or my son's-competitors. Most Koreans, including me, need to face and prepare for that reality." The SK program begins with three weeks of intensive English classes. During the remaining nine weeks, the participants, who are all from South Korea, meet from 8 a.m. to 4:30 p.m. Monday through Friday, as well as for a half-day every other weekend. They spend 90 minutes each day in English class, and the rest addressing eight global issues that SK's management deems most significant: including global strategy and advanced finance. While at Thunderbird, group members also visit national parks, local attractions, and faculty members' homes. Each student also works with a dedicated tutor for five hours per week. "The tutors are actually one of the most popular parts of the program," said Debisu Boston, the senior program coordinator in Exec Ed's Thunderbird Language and Culture Center. "They serve as conversation partners, involve their students in campus activities, and take them off-campus to experience American culture first-hand." The custom-designed SK ManagemenU English program is one of several programs Exec Ed has designed for companies that want help addressing unique global training needs. The program ends with each student team focusing on one of several issues that SK deems critical. Approximately 12 other SK Group members per year also participate in a Thun- THUNDERBIRD 53 12 I 2000 17 derbird International Consortium II (TIC II) program, which meets three times a year for two weeks per time. Leading Companies Partner in Consortia Back in the early 1990s, Thunderbird began forming strategic partnerships with leading global firms that wanted to actively develop their global management. By 1992, those informal partnerships had evolved into a formal Thunderbird International Consortia (TIC) program. Thunderbird currently runs two separate TIC groups. A third is being formed. "Thunderbird partners with non-competing companies with similar global management training needs and objectives," said Don Trotter, an associate vice president in Exec Ed. "Each consortium is run by its own advisory board comprised of company and Thunderbird representatives, with each board actively influencing what course content its members receive." That content can range from 'big picture' to function-specific initiatives-everything from global human resources and staff development, to global marketing, regional analysis, strategic alliances, and corporate finance. According to Trotter, all partner companies send different participants to different programs to take maximum advantage of each module's content. Some, like the SK Group, also send their non-native English speaking employees through a weekiong, pre-module English refresher course. "We also offer what we call a TIC-Plus course," he said. "Basically, it's a special three-day, topical program that helps consortia members address a specific need." The current TIC-Plus program targets merger and acquisition needs. "I came here to evaluate how the TIC format could help us address our training needs," said David Thornewill von Essen, a '98 EMIM graduate and British national. "I work for ON Semiconductor, which recently spun off from Motorola. We're a $1.7 billion company with 10,500 employees and we're looking to use this great resource called Thunderbird to create a cost-effective 'virtual' MU [Motorola University). "In my EMIM classes here, we covered topics broadly. In this mergers and acquisitions program, we discussed very applied issues. We also had people in class from AlliedSignal and Kellogg who were actually doing a merger/acquisition now. You don't get more applied than that." As a result of his experience, Thornewill 1B THUNDERBIRD 53 121 2000 von Essen has enrolled ON Semiconductor in TIC III, which begins in June. TIC III participants may also include companies like Toyota and Prudential. TIC I and II participants include AlliedSignal Inc., AT&T, BP Amoco, Delphi Automotive Systems, The Dow Chemical Company, Dow AgroSciences, EDS, General Motors, The Goodyear Tire & Rubber Co., KimberlyClark Corporation, Lucent Technologies, and Warner-Lambert Company. Executive Education Goes Global While many of Exec Ed's clients come to Glendale, not all do. In fact, Thunderbird is taking more and more lifelong learning courses on the road. Some are company specific. Some focus on certain jobs. Others are geared toward specific industries. During the week that Thunderbird magazine crashed Exec Ed's Glendale programs, the School was also hosting two very different programs in Marseille, France, and Siio Paulo, Brazil. "We conduct about 17 courses a year for a French company called ST Microelectronics," said Charles Gibson, an Exec Ed director. "ST is already the world's ninth largest semi-conductor manufacturer and is aiming for number five. So at their request, we've tailored a full range of programs specifically to them." Those courses are also delivered right at ST's French facility. "Education is a strategic issue for ST Microelectronics," said Jean-Claude Nataf, STU and corporate training director. He added that ST became impressed with the "competencies and international experience" of Exec Ed's professors back in 1995, as well as with the School's willingness to "work with us as a team to adapt to changes in the market. That's why we established a long-term partnership with Thunderbird's Executive Education for our management development programs in the fields of strategy, finance and marketing." The module running at ST during this particular week is Advanced Management Program: Finance/ Marketing, which offers two and one-half days of training each in finance and marketing. Thunderbird's Drs. Jim Mills and Chris Miller typically teach that program in France four times per year, using cases that are specific to ST. Exec Ed also provides case-specific Advanced Management Program: Strategy, and Fundamentals of Management/Finance training to ST several times each year. During this week, Exec Ed is also spearheading a two-day telecommunications workshop in Brazil where the industry has just been privatized. This workshop marks the first time Thunderbird has run a telecom- munications program in South America and so Exec Ed has partnered with TDC Integris, an education and training company. Sixty people attend, listening to simultaneous translations in English and Portuguese. "The Brazilian market is very hungry for global telecommunications management programs like this one," said Dr. Ram Sundaresan, who runs this program. "They're also interested in two-way interactive teaching styles, where the audience participates. " Meanwhile, Back at Thunderbird . .. Pharmacia & Upjohn (P&D) managers are participating in a one-week Managing for Growth session. Program participants are chosen by P&U senior management based on their level of experience and potential for growth within the company. They come from nearly every continent and a number of job types. Most have never met before. P&U approached Thunderbird several years ago and asked for help designing programs that would meet employees' lifelong learning goals. Thus, this custom program (which is delivered in two, one-week blocks) was bom. "Thunderbird faculty and staff show a real ability to understand our needs," said Larry Fagenhaug, director of organizational and management development at P&u. "Their interest in looking at issues from our standpoint and designing the curriculum accordingly has helped our relationship evolve into a true partnership. We are continually redesigning the program to align with our strategic direction. " companies and more than 10 countries are taking Exec Ed's relatively new Leading the Global Organization course. This one-week program is geared toward developing global leadership skills. Participants study global team building, organizational development, rewards and recognition systems, partner management, and negotiation styles. They even conduct a sometimes-frustrating mock negotiation during which groups are secretly assigned opposing negotiation styles and strategies. "Academic Director John Seybolt has done a phenomenal job developing a close bond among participants in this program, an amazing feat given the multicultural mix One of the most exciting things Exec Ed did for P&U involved designing an industry-specific fourday computer simulation that replicates the actual set of characteristics, conditions, and forces P&U faces. "It is by far the most realistic simulation I have participated in," said Ron Cheeley, vice president, Global Compensation and Benefits. "I am relatively new to the industry, so the simulation helped me gain a better understanding of the product life cycle. It will allow me to create innovative reward programs that link performance with business results. " offIrIngs In exceIle"u:oIpcIndl111'11ning att.mative. Exec Ed attracts global professionals from nearly every field. In a nearby classroom, 28 Thunderbird alumni are huddled in the flrst-ever pre-Homecoming Global Issues '99 program. This speciallydesigned three-day course has attracted Tbird graduates spanning four different decades who now work in more than 12 countries. That includes two sets of married T-bird couples and two others who have already returned to campus to address other lifelong learning needs. "This program has been far, far better than even what I had expected," said Yuji Furukawa '80 of Japan. "As Thunderbirds, we could all start the course with a common perspective, but the discussions have been so much more in-depth and proactive than they were the flrst time we were students here because of the degree of current, on-the-job experience each of us comes with," he said. "These people are all very aware of what the real issues and opportunities are in their countries." In another room, executives from 18 of the group," said Jan Mueller, an Exec Ed director. Seybolt and Mueller further deepen that intercultural experience by inviting a group of current students from Latin America to dine with the group. "I actually took this same negotiation course from Professor Walsh six years ago and it is entirely different today," said Juan Gallego '93, a Spanish national who now works for Nokia in Texas. "Even though we're T-birds, we need to recognize that the world is changing and we need to update our skills constantly .... being here For more information about Thunderbird's Executive Education offerings, contact: • Senior Vice President Bud Robyn at firstname.lastname@example.com or (602) 978-7628 • Vice President Frank Lloyd at firstname.lastname@example.com or (602) 978-7923. with colleagues from all around the globe has helped me get current on world issues. I've been focused almost exclusively on Latin America" A Program For Every Need Responding to the needs of Phoenix's "local" business crowd, Thunderbird developed a Global Leadership Certificate Program several years ago. This 13-week course meets one evening per week and covers 14 key global executive topics. This week is roughly the program midpoint for the 25 executives who commute to Glendale on Monday nights. A second group of 50 is taking the same program across town in Tempe on Tuesday nights. Back in the Thunderbird Language and Culture Center, where South Korea's SK Group also meets, a different group of 24 foreign nationals is taking the School's tenweek Pre MBA Intensive English Program. This program is uniquely designed for non-native English speakers who plan to enter Thunderbird-or other graduate business schools. The program is offered three times per year and almost inevitably "converts" some students who had planned on moving on to other schools. Although Exec Ed is almost certainly running its better known EMIM program this week, it may well also be running several of its other industry- and job-specific programs too. Unfortunately, at this point, we at the magazine are simply too tired to go check! That Lifelong Learning Edge If you're starting to understand that Exec Ed has evolved into quite a busy place, you're right. Given the pace of global change, T-birds and non-T-birds alike are realizing that they need continuous training to remain competitive. Thunderbird officials know that, too. That's why the School's Exec Ed group now offers a wide range of short-term programs that fulflll specific needs. It also designs custom programs for individual companies, and markets its Case Series study plans. Word has it that Internet- and distance-learning modules are also in development, as is an expanded line of offshore offerings. • THUNDERBIRD 53 /2 / 2000 19 20 ETTEH FHOM ELSEWHERE isitors sometimes think that Hong Kong people are rude, not realizing that pushing, shoving and elbowing are just a traditional greeting. It's hard to be enthusiastic about a place where sometimes you can't walk down the street without collecting a dozen bruises. But where else can you walk a few steps from futuristic skyscrapers and find little shops where ancient, strange smelling, sun-dried fish are sold by ancient, strange smelling, sun dried fishmongers? Hong Kong is unlike any other city I've been to in Asia It is a culturally rich, dynamic and vibrant city with 6.5 million people, all of whom have an incredible work ethic and a voracious approach to doing business. Money is the driver of practically all daily activity. The economic crisis is short-term in nature. We have seen a decrease in property values. Companies are down-sizing and restructuring, which has led to layoffs and unemployment rates that have reached historic levels. There has also been a big drop in retail trade and tourism. Because so many of the economic problems are regional in nature, they remain largely out of Hong Kong's control. However, it is generally felt that to put Hong Kong back on the road to prosperity it must widen its economic base and promote a wider application of innovation and technology to add value to its products and services. It is now generally realized that economic growth cannot come from an excessive reliance on asset inflation as it has in the past Beyond the more immediate economic problems, there is a longer-term question about how Hong Kong should define itself. Hong Kong is not British, and it is not Chinese. It lacks a national identity. It needs to determine how it should be governed and what its basic policies should be. These involve, among other things, how to maintain and improve the environment and the legal system, and how to create new jobs and The first question that people usually ask me when they find out that I live in Hong Kong is "what has happened since the handover?" I can honestly say, not much. The Red Army has not marched in and Hong Kong has been left to manage its own affairs .. .for better or for worse. Although the British are gone, the Chinese bureaucrats have not moved in or begun issuing orders. This has brought a sense of relief, but it has also created a nagging anxiety. The autonAfter years of living and working for maintain a positive business climate. omy is welcomed, but with that autonomy has come increasingly complex issues and Bank of America in Hong Kong, Meredith responsibilities that need to be addressed. Peabody '96 (EMIM) gave a first-person The concerns start with the issue of fundamental identity. Now a part of China, yet separate from it, Hong Kong's 'One Country, Two Systems' motto does not necessarily give useful guidance about how closely Hong Kong should integrate into mainland China or to The challenges that Hong Kong faces come perspective of the city's people, poten-in two broad categories. One is economic and tial and problems before heading off to the other is in defining its identity. a new assignment in Singapore. THUNDERBIRD 53 121 2000 what extent it should seek an independent international identity. Hong Kong has become wealthy providing China with a source of capital, services and technology. But to remain useful, Hong Kong will need to stay on the leading edge of China's economic growth. Hong Kong's special privileges might be in jeopardy if it becomes just another Chinese city. Another critical issue to Hong Kong's future is whether or not China is accepted into the World Trade Organization. If it is, Hong Kong's value as a port of entry will be diminished. Another issue impacting Hong Kong's future is the environment. A two-year study by the University of Hong Kong predicted that the city would be 'unlivable' in 15 years unless something is done about the pollution. One of the obstacles to attracting overseas financial and technical specialists is pollution and how it affects the quality of life. More needs to be done to clean up the air and water and improve recreational facilities; tougher limits on diesel fuel also would help. Much of the pollution drifts in from the mainland and reducing that would require greater cross-border cooperation. Defining the 'Basic Law' is the challenge facing Hong Kong's legal system. The Basic Law is, in essence, the post handover constitution. There is no precedence of how 'One Country, Two Systems' should operate. It raises questions about limits of autonomy and the extent to which the Basic Law protects human rights. How the Basic Law is interpreted and by whom remains questionable. Preserving the Rule of Law is also very important to Hong Kong's future. The Rule of Law brings stability to people's lives and protects them from unfair treatment. It ensures that business can be conducted with confidence and it attracts investment. Concern arises over the stark differences between the two legal systems. The Rule of Law has never existed in China and 40 years of communism has left a legacy of social domination by party and state. On the political front, there are still unresolved questions over how far and how fast the country should extend the democratic voting process. Today government officials have set a confusingly, tangled, three-tiered voting system to elect their Legislative Council. The general population directly elects only one-third of the seats. The other 40 seats are assigned by a select group of representatives from professional and trade organizations. Many business leaders believe the politicians, especially the Democratic Party, are proving too fractious, endangering both relations with China and the business environment and, thus, their profits. However Hong Kong is managed, there is no doubt that it faces new competition as an international business center. There is a perception among the international business community that Hong Kong has been politicized. For example, the emergency program last year to stabilize property prices was seen as government trYing to protect property developers. This showed a vulnerability to pressure from vested interest groups. Market intervention during the early part of the recession has thrown into doubt the government's commitment to maintaining a laissez-faire system causing some critics to speculate that Hong Kong's role as a regional trading and financial center could be in jeopardy. It was also seen as China's intention to buy its way into Hong Kong busi-nesses. One of the biggest challenges to Hong Kong is the high cost of doing business. Hong Kong is ranked the third most expensive city in the world in which to conduct business, and the most expensive city in which to live. One key cost issue involves the government land policy. Many overseas businesses consider One of the obstacles to attracting overseas financial and technical specialists is pollution and how it affects the quality of life. the high property prices a kind of hidden tax, which offsets other advantages. Property prices need to drop further to help the city meet global competition. In his recent policy address, Chief Executive Thng Chee-hwa outlined his plans for creating a more vibrant economy for Hong Kong. The initiatives that he outlined dealt with all the critical issues surrounding improving the educational system, the environment, housing, the legal and political systems, and job creation. Execution of these initiatives is going to be a key determinant of Hong Kong's ability to regain its position in the international community. One of the characteristics that I admire most about the people of Hong Kong is their resilience. They have an uncanny ability to focus on what needs to be done, working hard and sacrificing personally to achieve the desired results. I have no doubt that Hong Kong will be able to reinvent itself and return even stronger than it was before. • Meredith Peabody may be reached at email@example.com THUNDERBIRD 53 /2/ 2000 21 22 Anwar Sadat. Jimmy carter. and Menachem Begin celebrate during the historic 1979 peace treaty signing ceremony in Washington. D.C. That joy turned to horror in 1981 when Sadat was assassinated by those who opposed his views on peace. Messenger of Peace Former Egyptian First Lady continues her late husband's quest by Lindsey Michaels Her biography described her as dignified, courageous, and The First Lady of the World. Yet, it didn't even begin to capture the true essence of Jehan Sadat. Sad at, the widow of slain Egyptian President Anwar Sadat, was warm, gracious, and uncommonly genuine during an extended preRamadan visit to Thunderbird. Sadat addressed an overflow crowd of obviously awed students, staff, and faculty at Thunderbird. The group rose and greeted her with a rousing ovation when she entered the room then stood twice more as she spoke. And, although some listeners may not have agreed with all of Sadat's views, most seemed incredibly impressed with the lady herself. They were also impressed that Sadat took the time to meet privately with two separate student/faculty groups--where she walked around, asked each Faces alight and audience members rush to stand as they begin to realize that Sadat has arrived. THUNDERBIRD 53 121 2000 about him- or herself, and shook each person's hand. She had met with the School's Thunderbird International Symposium group earlier that day. "My husband was killed because of peace," Sadat told the group. "Yet, 1 support the quest for peace in the Middle East with all my heart." In a style that one listener described as 'candor and commitment cloaked in incredible warmth and diplomacy,' Sadat defined peace as an absolute necessity. ''My husband was killed because of peace, yet, I support the quest for peace in the Middle East with all my heart .. .. Jj we are frightened of being "I believe people must come face to face, as people, to talk," she said. "They must be brave. They must be committed to doing the right thing in order for peace to be brought about," she added. "If we are frightened of being killed for promoting peace, we will never accomplish anything." An outspoken advocate for justice and social change long killed for promoting peace, we will before her husband's presidency, Sadat holds a Ph.D. from Cairo never accomplish anything. )) University and was teaching there when her husband was killed. She has worked extensively with wounded veterans, and has personally founded hospitals, blood banks, and orphanages. She has also spearheaded education, social, and legal reforms for women as well as men. Sadat now teaches at the University of Maryland and travels worldwide promoting peace. Sadat seemed visibly moved and somewhat humbled by the School's depth and breadth of student diversity and strong sense of community. "I can't tell you how happy 1 am to see you, a Syrian, sitting next to you, a Lebanese, sitting next to you, an Israeli, sitting next to you, a Saudi," Sadat told students during one of her meetings. "You and we are all here as a family. That is what we need to have world peace and you are doing it so naturally!" Thunderbird's students and staff seemed equally impressed with her. "Mrs. Sadat is a very humble, very sincere woman," said Naji El-Khalil, a student from Lebanon. "I think her message is very important in this day and age when so much is happening." El-Khalil asked Sadat how Arabs could ever present a united front and speak with a common voice on major issues when they were still arguing amongst themselves over borders and oil. "She seemed sort of ashamed and sad that that was true, " he said. "Madame Sadat is an intriguing woman," added Nimrod Posner, an Israeli. "What she has been through and what she has become-an Ambassador of Peace-influences every person that has the pleasure of meeting her. 1 think Thunderbird students were honored that a person of that magnitude came here and talked to us." At the post speech session, Posner and Sadat shared their somewhat different views about the status of Jerusalem. Sadat greets Iraqi stu- Haithan AI-Sayed, an Iraqi student, asked 8adat when she thought the world would dent Haithan AI-Sayed stop fearing Arabs and expressed a personal sense of hurt about how people react to who had expressed hurt him when they learn his nationality. "If we take the hatred from our hearts, we will all over how some people be better in the future," she responded. AI-Sayed termed Sadat's visit an excellent react to his nationality. opportunity to "hear and view the real issues governing the Peace negotiations of the Middle East from a 'hands on' perspective. In addition, 1 got a strong sense of a motherly feeling as Madame Sadat was giving her talk, " he said. A mother of four, and grandmother of 11, Sadat clearly adores her family. She spoke lovingly of her three daughters, and one son, even sharing a personal letter at one session that was written by her 12-year-old granddaughter. She ended both presentations with a moving love poem which she had written for her late husband when they were young, and beamed when announcing that her husband's longawaited namesake, Anwar Sadat II, was born on the Fourth of July last year. "I came to the U.S. after my husband was killed because 1 wanted to talk about peace," she said. "That means that 1 had to leave my children and my grandchildren, whom 1 miss terribly. But 1 will keep encouraging people to talk, as people, about peace-to be brave about their stands on peace because down here, in my heart, 1 really do believe that 1 will see peace in my lifetime. " • THUNDERBIRD 53 I 2 I 2000 23 24 WWW.T-BIHD.EDU • New Century Brings • Students Host New T-bird Curriculum Ebusiness Conference Based on feedback from "You're not in business unless employers, alumni, current students and faculty, the MIM curriculum is being reinvented to meet the demands of the rapidly changing global business world our graduates face. Beginning this fall, Thunderbird will begin phasing in major curriculum reforms designed to help ensure that T-birds are prepared to face the enormous global challenges of the new millennium. After meeting a set of prerequisites for the MIM, T-birds will begin the program with a two-week Foundations for Global Leadership course. A two-trimester 'flexi-core' of common courses will follow, to ensure that all T-birds have a shared set of core global business skills when they graduate. Students lacking foreign language proficiency will have a more extended flexi-core to help develop those skills-leading to a 60 credit program, compared with a 45 to 50 credit program for those already proficient in their chosen foreign language(s). Under the plan, which was approved by Thunderbird's faculty, students will proceed from Foundations through the flexi-core in diverse student cohort groups of approximately 50 individuals to help build a strong sense of the Thunderbird community among the students as well as to facilitate learning. After the flexi-core, students will begin specializations to build more depth in their chosen areas. They will also be encouraged to take one-to-two trimester internships after their fie xi-core experiences and will spend their final trimesters with specialization and capstone experiences, designed to synthesize and build on the rest of their programs. Interims and Wmterims will be optional, but encouraged, experiences to both broaden and deepen the knowledge of MIM students. THUNDERBIRD 53 121 2000 you're in ebusiness" was the primary theme of the entrepreneurship, Venture Capital, eBusiness (eVe) conference, held on campus in October 1999. Representatives from PeopleSoft, QuePasa!.com, Visitalk.com, and Hurwitz Group, as well as two venture capitalists, spoke about the trends in the global and electronic business fields during a seven-hour conference organized by student volunteers. A second conference was held February 4, 2000, at Thunderbird and attracted heavy student, alumni, and community interest. The concept for eVe was initially focused on entrepreneurship, but as forum planning progressed, the emphasis shifted. "The lines between ebusiness, venture capital and entrepreneurship are blurring," said co-organizer Walter Joyce '00. Therefore, conference presenters gave a broad overview of the trends in bUSiness, as well as the challenges that come with starting up an ebusiness company. Thunderbird's Dr. Paul Johnson, distinguished professor of global entrepreneurship, said the School now offers 10.5 credit hours of entrepreneurship classes--enough for an official entrepreneurship major. The School also is working to create a Thunderbird Venture Capital Fund, through which Kay Keckwill oversee all Career Management Center activities at Thunderbird. students could gain funding for Michael exceptional business plans. The O'Donnell, (right) School also offers a course in elec- president of tronic commerce, as well as a Visitalk.com was Thunderbird Student Government-backed initiative called eBird. a key speaker at Ebird's goal is to build students' both eVe technical and international busi- Forums. ness skills proportionally. The program harnesses the expertise of students from hi-tech backgrounds and employees of the School's Information and Instructional Technology department to deliver free courses in HTML programming and network design. Thunderbid is also adding more ebusiness courses to its new curriculum. • Career Management Center Names New Vice President Thunderbird has named Kay Keck vice president for professional and career develop-ment. Keck will run the School's Career Management Center, as well as lead other Thunderbird student advising activities. She also is charged with piloting a new initiative that will help students assess and refine critical leadership skills. Keckjoins Thunderbird from the University of Georgia's Terry School of Business, where Visitalk.com, which allows people around the world to share voice, video, and information via the Internet, also was a sponsor of the February forum. Its systems let people make PC to PC phone calls. His Excellency, Dr. Eberhard Koesch, greets the Honorable Bill Behrens at the Ambassadors' Ball in Phoenix. Hosted by the Consular Corps of Arizona, the ball raises money for Thunderbird. This year's event honored Germany and the 10th anniversary of the Berlin Wall's fall. Koesch is the acting ambassador of the Federal Republic of Germany. Behrens is an honorary consul to Germany. for the past eight years she has been the director of graduate programs. In that position she was responsible for overseeing all aspects of the MBA, Ph.D., and Executive MBA programs. She holds a Ph.D. in management science, spent four years as an assistant professor of marketing, and has eight years of experience in various sales and training positions at AT&T. • Leading Journalists Visit Th u nderbi rd Journalists from some of the world's leading news organizations have been spending time at Thunderbird, thanks to the Council for Advancement and Support of Education (CASE) Media Fellowships program. The journalists were: Sherwood Ross, who covers workplace issues for Reuters Business News; Della Bradshaw, the business education editor at the Financial Times; and Joshua Jampol, a freelancer, who writes for the International Herald Tribune and Time. All attended a variety of classes and met with faculty, staff and students. "This visit confirms what I've always believed," said Bradshaw, "which is that Thunderbird is the only truly international graduate business school in the States." Each year, CASE invites media representatives to participate in a variety of three- to five-day fellowships that allow participants to interact with leading scholars, explore new and emerging issues, and learn of cutting- edge ideas at some of the nation's leading educational institutions. Thunderbird has participated in the CASE program for the past three years by providing fellowship experiences for journalists from the Wall Street Journal, Forbes, CNN, The Arizona Republic, and Washington Technology. • Three International Executives Elected to Board of Trustees Three leading international executives have been elected to the Thunderbird Board of Trustees. They are: Guillermo Luksic Craig, Don Budinger, and Samuel S. Garvin '88. "We are truly honored to have these exceptionally talented individuals join our board," said Roy Herberger Jr., president of Thunderbird. "Their international experience in different economic sectors will be greatly beneficial as we position our School to help the world face the challenges of globalization and economic development in the next century." Luksic holds a key management position in many of the Luksic Group companies in Chile . Those companies are involved in the food and beverage, service, copper and aluminum products, manufacturing, telecommunications, printing, management and financial consulting, and banking industries. Budinger is a founder and inunediate past president of Rodel, Inc., the world's largest manufacturer of high precision surface finishing chemicals for manufacturing computer chips, silicon wafers, and rigid memory discs. He is also vice chairman of Rodel, Inc., president of the Rodel Charitable Foundations, and vice president of Rodel-Nitta in Osaka, Japan. Garvin, a T-bird graduate, is chairman, president and CEO of Continental Promotion Group (CPG) in Scottsdale, Arizona. The US$325 million fulfillment company handles consumer and trade promotions throughout the United States, Canada, and the European Union and has facilities in Scottsdale and Tipperary, Ireland. • Executive Education Programs Named to Business Week Top Five The October 18, 1999, issue of Business Week lists the Executive Education non-degree programs at Thunderbird as among the top five in Global Business. According to Business Week, the top schools in Global Business executive education are, in rank order: INSEAD [France], Thunderbird, IMD [Switzerland], Harvard, and London Business School. Thunderbird has long been considered a leader in global management education. The school's graduate business degree program has been ranked No. 1 in the specialty of International Business for four consecutive years by U.S. News and World Report. Thunderbird also ran a full-page ad in that Business Week, thanks, in part, to the Executive MIM Oass of 1999 (EMIM 7) which contributed a portion of the ad cost as its class gift. The Business Week survey issue, which features a review of graduate school executive education programs, is only printed every second year so it is widely read and has a long shelf life. Its ads enjoy high visibility wor1dwide. THUNDERBIRD 53 121 2000 25 • Argentina Fernando Maurette was the guest speaker at the October First Tuesday in Argentina. Maurette, who is the fonner national deputy and president of the Foreign Affairs Commissions of the Chamber of Deputies, provided the 20 T-birds present an insider's perspective on the recent Argentine election. Sasagu Usui '95 is the chapter leader. • San Fransisco The Golden Gate's twinkling lights attracted T-birds to San Francisco for the chapter's firstever bay cruise. Guests enjoyed hors d'oeuvres, wine, beer, song and several fun-filled contests. They also received event t-shirts. • Southern California T-birds from Southern California enjoyed a very memorable evening aboard the well-known TIKI Boat in Newport Harbor. Of the 74 costumed passengers, 39 were T-birds! All danced the night away while cruising among perhaps the largest assortment of yachts on the entire West Coast. ~Vancouver alumni pose with the Thunderbird banner aboard the boat of Skipper John Avard '65 during a FirstTuesday outing. The event also marked the 30th anniversary of the first meeting between Avard and Fred Koppl '52, who flew in from Europe to attend. 26 THUNDERBIRD 53 /2/ 2000 .. BAPTEHS themeata Frankfurt First Tuesday at the Volkswirt. Chapter leader Brendan organized the event as an ad hoc fundraiser after learning that alumni donation rates were factored into major school ranking reports. ~ Front Row: Marc Gallin 'S6 Angela Cassidy '96; Paul Gomez '7S; Jeff Jamison '91. Second Row: Katherine Schoettler '9S; Jairo Gutierrez '91; John Delap 'S3; Elizabeth Harder '9S; Srett Beals '95;Third Row: Erica Schlomer 'S9; Dave Daws 'S9; Yumi Murakami '96; Ahmed "A.D." Dawood 'S5; Jack Pravda 'S5; Richard Baffour '97; Akemi Takehana '91; Heidi Thruau '95; Andy Kelly '95; Fourth Row: Leah Cadavona '93; Laura Bowen '9S; Lea (Santamaria) Spagarino '91; Tessa Sarrazin.'96; Klara Farkas '93; Cindy Han; Chris Sedgwick 'S6; Patrick Kiernan '97; Fifth Row: Jonathan Hoi '96; Xuying Zhao '9S; David Sugrue '97; Sharon Machuga '96; Daniel Cody '93; Kollyn Kanz '93; Andres Spagarino '93; Not Visible: Jackie Fimrite '99; Jase Ramsey '97. Michelle Perez Kenderish '00 before her wedding in Istanbul, Turkey. Guests from over 20 nations attended the event, which was held on the banks of the Bosphorus at the Ciragan Palace. • TAA News The Thunderbird Alumni Association (TAA) is now officially global! During an emotional Homecoming meeting, TAA members formally enacted motions that created both a Global Board and North America Regional Council. Those entities join the Asia Pacific, Latin America, and EuropelMiddle EasUAfrica councils, which had already been established. The effort capped an active four-year effort that was spearheaded primarily by alumni Chris Johnson '86, Annette Cazanave '79 and Bruce Olson '82, and Thunderbird's assistant vice president of Alumni Relations Joy Lubeck '86. TAA regional councils help Thunderbird reconnect with Tbirds globally. All councils are comprised of in-country representatives who tell Thunderbird what local alumni want and need, as well as how they can support the School. They also help build stronger chapters. Two representatives from each regional council serve on the Global Board, as well. Thunderbird is actively working with the TAA to reconnect its 31 ,000 alumni. The Alumni My Thunderbird intranet is both an important tool and an impressive result of that effort. FROM TOP: 1) Members of the Thunderbird Alumni Association (TAA) Global Board, which includes members from all four regional councils, pose during Homecoming festivities. 2) Asia Pacific Council members in Hong Kong. 3) Latin American Council members in Miami. 4) Europe/Middel East/Africa Council members in Barcelona. Plan Now For 25th European Reunion: ., 25-28 at Club Med in For men infCNiiiiItion oflhur ..... bItch 25th ........... and ........ MIIlS-chIdlAMlllllAfy •• "'''''it J3eatliee:8fmf!scut' 90inArcbamps at~-6667. or email@example.com • Get Connected! Some 6,000 T-birds have already signed up and signed on to Alumni My Thunderbird (AMTB) and School officials are working to raise that number to 14,000 by July. AMTB created an alumni online community and, thus, an electronic networking forum that lets alumni find business partners, post deals, discuss topics, and do job searches. Since the system becomes exponentially more beneficial with use, Thunderbird encourages all alumni to take advantage of AMTB: To find the site, go to the School's main Web page at http://www.tbird. edu and click on 'Alumni Intranet' in the lower left-hand corner- or go directly to the site at http://alumni.my.t-bird.edu. AMTB is password-protected, so only T-birds can use it. On your first visit, look for the line "Click here to register." The registration page contains both instructions and a registration form. Fill out the form and click "Sign me up!" Thunderbird will email you your 10 number and initial password within a few days. Use your 10 and password to sign on. You can then search for fellow T-birds, join discussion groups, personalize your profile page, and read about all of the programs and services Thunderbird offers alumni. For further assistance, click on the tutorial icon, which is located in the lower left-hand corner of the AMTB start page, or email Jill Tracy, alumni web specialist, at email@example.com. THUNDERBIRD 53 I 2 I 2000 27 28 Alunmi Flock Four T AA Global Alumni Award winners were present to receive their honors at Homecoming. Pictured (from left) are Sea Haechler '90 (presenter), Christopher J. Fussner '82, James K. Ward '83, Jack E. Donnelly '60, Thomas D. Hobson III 79 and catalina Cisneros '97 (presenter). THUNDERBIRD 53 121 2000 Back for by Lindsey Michaels Homecoming More lhan 500 alwnni returned to Glendale last November for Homecoming. Some attended workshops. Some gravitated more toward social functions. Nearly all made at least one visit to the Pub. Thunderbird's 1999 Homecoming Iruly offered something for everyone. Professional opportunities included The Global Issues '99 Executive Education program, recruiter meetings, hands-on Alumni My Thunderbird (AMTB) training, a keynote speech by Colombian Ambassador Luis Moreno '77, Thunderbird Alumni Association TAA Board meetings, and Thunderbird Global Business Forum presentations on credit derivatives, emergency planning, and personal and corporate security. Social activities included campus tours, Pub visits, student/alumni meetings, class dinners by decade, cocktail parties, a gala dinner-dance and the alumni awards, as well as tennis, golf, the Thunderbird Balloon Classic, and a rugby tournament "This Homecoming, more than any other in recent memory, has been about celebrating hard work and dreams," said Joy Lubeck '86, assistant vice president of alumni relations. "We've now formally created all four regional TAA councils, a TAA Global Board, plus launched Alumni My Thunderbird. I can't tell you how hard we've all worked and how much these features will help alumni leverage the worldwide Thunderbird network" Extraordinary Alumni Honored Every year, Thunderbird and the TAA honor outstanding alumni during Homecoming. Honorees are pre-nominated by their peers, selected by the awards committee, then formally recognized as Global Alumni Award winners during the gala dinner dance. Major award categories are the Jonas Mayer Outstanding Alumnus, Distinguished Alumni, and Rising Star. Chapter Volunteer Awards are also given. This year, the School and TAA recognized six alumni for accomplishments that embodied what it means to be a Thunderbird. Major award recipients were Jack Donnelly '60, Christopher Fussner '82, Bruce Harris '83, Thomas Hobson III '79, James Ward '83, and Fernando Farre '94. Recognized as outstanding chapter volunteers were Beatrice Bernescut '90 of London, England and Paris, France; Roxy Campbell '69 of Miami, Florida; Barney Lehrer '89 of New York, New York; Marilyn Pound '86 of Phoenix, Arizona; Caryn Sykes '97 of San Francisco, California; and Cindy Brady '74 of West Michigan, Michigan. Jack Donnelly '60: Jonas Mayer Outstanding Alumnus Award Winner A Thunderbird Trustee for almost 10 years, Jack Donnelly remains active in all facets of Thunderbird. He has selVed on the TAA, helped with fundraising, been a Wmterim speaker, and is an active recruiter of new students and graduates. Donnelly is president of Bailey & Donnelly Associates, a private investment finn. He is a past president of GTE Communications Systems Corporation and had spent seven years in Europe with ITT. Donnelly currently selVes on several telecommunications company boards. The Jonas Mayer Outstanding Alumnus Award is the TAA's highest honor. It is presented each year to the alumnus who best epitomizes the combination of professional, community, and Thunderbird activity success. Christopher Fussner '82, Bruce Harris '83, Thomas Hobson III '79, James Ward '83: Distinguished Alumni Award winners in Entrepreneurship. Public Sector/Government/Non-Profit, Banking & Finance, and Marketing, respectively. Chris Fussner is president, owner and founder of TransTechnology Pte. Ltd, a Singapore-based distributor of surface mount technology and semiconductor capital equipment. He is also owner, manager, and wine merchant of Certain Cellars Pte. Ltd, which imports and distributes fme wines. TransTechnology is a US$35 million company, which employs 100 people and maintains additional offices in Penang, Kuala Lumpur, Bangkok, Manila, and Cebu. Certain Cellars is a US$1 million entity. Based in Guatemala, Bruce Harris is the executive director for Latin American programs at Covenant House, which helps more than 4,400 Latin American street children per year. He has published several articles on the treatment of street children and has also been featured in documentaries by the BBS and the Canadian Broadcasting Corporation. He held previous positions with the Save the Children Federation and with Up With People. Harris also helped plan the Ethics session of the 1997 Thunderbird Global Business Forum. The director of technical analysis with Merrill Lynch Europe, Tom Hobson authors Technical Watch, which watches major global debt markets. He also maintains major corporate and private clients throughout the U.K Before joining Merrill Lynch, Hobson was at Goldman Sachs, where he presented market evaluation seminars throughout Europe, Asia, and North America He selVes on the Thunderbird Archamps Board of Directors, has held several key leadership positions with the TAA, and selVes as an active student mentor and recruiter. Jim Ward is vice president of marketing for Lucasfilm, Ltd, where he oversaw the long awaited global launch of Star Wars: Episode I The Phanton Menace. He also handles all worldwide marketing of all Lucasfilm theatrical, video, and television properties. Once named one of Ad Age's Top 100 Marketers, Ward has spent 15 years in advertising, where he has spearheaded Microsoft's Wmdows '95 Visit http://alumni.my.t-bird.edu for nomination data. (top) Colombian Ambassador Luis Moreno '77 is interviewd by a Univision television crew after his keynote address at the Thunderbird Global Business Forum. (below) Professor Mark Griffiths details the use and impact of credit derivatives in financial risk management during an afternoon Thunderbird Global Business Forum session. Mark your calendars for Homecoming 2000: November 2-5 THUNDERBIRD 53 12 I 2000 29 30 Twenty-eight T -birds retumed to campus for a special Executive Education, alumnionly Global Issues 'J9 program. (center) One of the best things about Homecoming is simply running Into old friends and discussing how much the world and Thunderbird have changed. (bottom) TAA board members and chapter leaders are 'Wowed' by Alumni My Thuntlerllird during a special training session of the chapter leaders conference. THUNDERBIRD 53 121 2000 product launch and overseen Nike's introduction of Tiger Woods as a corporate spokesman. Ward has long been an active supporter of Thunderbird. 1b be eligible for a Distinguished Alwnni Award, a candidate must have graduated at least ten years ago, demonstrate excellence in one offour areas, and be involved in civic and Thunderbird activities. Fernando Farre '94: Rising Star Award Having spent the last three years in Argentina as a marketing manager for I:Oreal, Farre recently transferred to I:Oreal's New York office to serve as the international marketing manager for Ralph Lauren Fragrances. He handles the Polo, Polo Sport, and Romance brands and is working to develop new markets in Latin America, Canada, and the duty-free Americas. A past Fullbright Scholarship recipient and Career Management Center employee, Farre was instrumental in helping Thunderbird orchestrate its recent successful Thunderbird Global Business Forum in Latin America. The Rising Star Award is given to an alumnus who graduated less than 10 years ago but is taking his or her field by stonn. On the Business Side: Homecoming is so much more than fun I Work hard. Play hard. It's a Thunderbird mandate. That's why Thunderbird always offers educational opportunities as a part of Homecoming. This year, in addition to its half-day Thunderbird Global Business Forum, the School also offered its first-ever 21/2-day alumni Executive Education course. Called Global Issues '99, the program offered an important global business update and attracted 28 participants. The course got rave reviews. (Read more about it in "A Program for Every Need," a Thunderbird Executive Education feature on Page 17.) The Thunderbird Global Business Forum offered insights into how to assess and minimize professional and personal risk globally. "Such assessments require a lot more than hunches or assumptions," said keynote speaker Luis Alberto Moreno '77, Ambassador of Colombia to the United States. "They depend upon solid research, and an understanding of the subject that goes far beyond what you pick up in The Econamist or The Wall Street Journal. And when you first think of Colombia, you probably don't see it as Latin America's strongest performing economy over the last several decades-which it is. Instead, you might think about cocaine or the drug cartels, or Pablo Escobar and kidnappings. This is inevitable-it's what you see on TV or read in the papers. But such assumptions will only get in your way of making an educated assessment about, say, investment in Colombia-like turning away from the booming Chicago commodities market of the 1920s because of prohibition and Al Capone." Moreno went on to paint a picture of the 'real Colombia,' through a brief lesson in history, geography and economics. He outlined the initiatives of the present government, political as well as economic, and gave forum participants a sense of where Colombia is heading. "The centerpiece of the Pastrana administration is Plan Colombia, a comprehensive strategy whose central purpose is to strengthen and modernize the entire gamut of our institutions, at the national and local level, " said Moreno. "Of course, our primary goal is to end the suffering that has affected too many of our citizens and to bring hope and opportunity to those who have never had it At the same time, we must also pay respect to the almost 200 years of dedication and pride that built the foundations that have kept us prosperous even in adversity. Our present and future successes would be unimaginable without it" Thunderbird professor Dr. Mark Griffiths then detailed the use and impact of credit derivatives in managing financial risk. (The full trnnscript of Moreno's speech and the PoweIpOint presentation from Griffiths' presentation from the event can be viewed and downloaded from the Alumni My Thunderbird intranet: http://www.alumni.my.t-bird.edu.) Two panel discussions addressed COIpOrate and personal security. The first panel, Planning for Emergencies, was moderated by Thunderbird professor Dr. John O'Connell, and included presentations by Pedro Ayala, director, disaster services for The American Red Cross; Brian Beeghly '96, an international risk manager with NIKE, Inc.; and Dusty Scott '96, Thunderbird project manager and a former U.S. Army officer. The second panel, Personal Security and Corporate Precautions, featured Steve Novkov '69 of CIGNA International, Ken Krusenstema, president of Stand International, and Rick Pitacco, manager of investigations for the western region of Motorola Global Security Organization. Class Gifts Support the Thunderbird Community Additional Homecoming highlights included the presentation of $70,050 by Class of '79 leaders. They had vowed to raise $100,000 from their class to help the School fund Alumni My Thunderbird. Their initial $70,050 check represented the amount classmates had enthusiastically pledged to date. In addition, Class of '72 leaders Ted Fuller and Mac Messinger helped raise $35,000 from their classmates to purchase a world time clock for the tower of the Thunderbird Commons. The clock pre-dedication ceremony was held November 5. John Cook, Annette cazenave, Willie Cone, and Tom Hobson (at right) present Thunderbird President Roy A. Herberber Jr. with a check symbolizing their class' first donation toward the funding of Alumni My Thunderbird. Joan and Ted Fuller '72 proudly pose in front of an artisfs rendering of a world time clock that aass ot '72 members donated for the Thunderbird Commons. Thunderbird alumni and ardent Thunderbird Alumni Association (T AA) supporters Joy Lubeck '86 and Chris Johnson '86 celebrate final delivery of a TAA Global Board, four regional T AA councils and Alumni My Thunderbird rollout The two have worked tirelessly during the last few years to rebuild and strengthen the Thunderbird network. THUNDERBIRD 53 121 2000 31 Thooderbird Enhances Brand Recognition in Latin America: In Alliance with The Miami Herald Americas Conference by Lindsey Michaels Aentinean President Carlos Menem was ushered in under tight security, seated next to the four-star U.S. general in charge of Southern Hemisphere forces, then introduced to an overflow crowd of nearly 500 people, who listened to simultaneous translations in English, Spanish and Portuguese. Nearby, nearly 100 U.S. and Latin America media jockeyed for coverage space. At other times, attendees heard former presidents of Costa Rica and Colombia, the vice president of Panama, The Miami Herald publisher, Governor Jeb Bush of Florida, and dozens of major industry leaders discuss Latin American issues at the Americas Conference. The highly acclaimed, sold-out conference was held in Miami in October and was hosted by The Miami Herald in association with Thunderbird. That strategic partnership was one of several School initiatives designed to help Thunderbird enhance its global brand identity. Americas Conference visibility was especially important given that Miami is such a significant gateway between the United States and Latin America "Now in its third year, the Americas Conference already is one of the top forums in the world on Latin America and it can definitely become the top forum of its type in North America," said Willy Cone '79, general manager of The Miami Herald, and the alumnus most responsible for getting Thunderbird involved. "This year was by far the best conference ever and, as our publisher says, a great deal of the credit goes to our partners, Thunderbird and the Council of the Americas. " Thunderbird both promoted the event and received a tremendous amount of publicity from it. School officials distributed conference materials at the Thunderbird Global Business Forums in Argentina, Brazil, and Chile last spring. They also ran an advertisement in Thunderbird magazine and promoted the event through alumni groups. In return, Thunderbird was mentioned prominently on event materials, given an exhibit booth, allowed to suggest speakers, and offered special registration opportunities for its alumni. One speaker, Diego Veitia '66, a successful entrepreneur, literally created a 'run' on Thunderbird's exhibit booth when he told the audience that American-style entrepreneurship and a Thunderbird edu- 32 THUNDERBIRD 53 121 2000 cation were critical for Latin America's economic prosperity. Hundreds of Thunderbird applications, viewbooks, alumni magazines, and executive education and MIMLA brochures were taken from the booth immediately after Veitia's speech. The School had a full team of marketing, administration, executive education, development, and alumni relations personnel onsite to handle such demand. Thunderbird also hosted a Latin American alumni reunion, a Thunderbird Alumni Association (TAA) Latin America Regional Council meeting, and a TAA Chapter Leaders' workshop immediately after the conference. Then Argentinean President Menem is Keynote Speaker Argentina's outgoing President Carlos Menem waxed poetic as he began his retrospective keynote speech, saying, " I am not Cervantes; I'm Don Quixote." Menem meant that he saw himself as the dreamer, not as the person charged with ultimately judging his accomplishments- as the person who thought up creative solutions to the terrible hyperinflation and other problems Argentina faced when he took office. Abruptly changing the tone, Menem later lifted the room to laughter by humorously holding up a copy of his autobiography and shamelessly promoting it. Menem was the keynote speaker at the Americas Conference. He spoke in Spanish, apologizing for not speaking English, French or any other language. He was warm, self-effacing, and obviously admired by the overwhelming majority of the more than 500 people who jammed the Miami Biltmore's main ballroom for his address. Menem, whose presidential term ended in December, said he is proud of what he and his team had accomplished. He believed they had analyzed the situation, then plugged away at needed change. While he said he wasn't leaving Argentina in perfect shape, he felt he was leaving it with a stable economy and strong prospects. (top) Former Colombian President Cesar Gaviria is interviewed by a Spanish language television station. (left) T-bird's heavily-visited conference booth became a gathering place for alumni between conference sessions. (right) Alumni storm the reunion registration table. First Latin American Alumni Reunion Follows Conference Some came to learn. Some came to play. Some came to work. All got to reconnect with Thunderbird when the School hosted its first-ever Latin American Alumni Reunion, which began at the conclusion of the Americas Conference. More than 50 Thunderbird alumni attended that two-day conference, hearing addresses by Argentinean President Carlos Menem, former Costa Rican President Rafael Calderon, former Columbian President Cesar Gaviria, and many others. Reunion attendees began arriving at the beautiful Biltmore Hotel in Coral Gables even before the conference ended. By 7 p.m. Friday, more than 170 alumni and friends had assembled at a welcome reception near the Biltmore's famous pool, where Thunderbird President Roy A. Herberger, Jr. offered a brief State of the School address. The T-birds then departed for various restaurants, only to reunite back at the Biltmore for late night Baccardi-sponsored beverages. Saturday found reunion-goers shopping at the famous Sawgrass Mills outlet stores, cruising on Biscayne Bay, touring South Beach's Art Deco, playing tennis or golf, or swimming at the Biltmore's pool. But Saturday also found two T-bird groups hard at work indoors. The first was Thunderbird's newly formed TAA Latin America Regional Council, which met the entire day. The second was a group of TAA Chapter Leaders, which met for half a day. The Regional Council spent Saturday morning learning all about the new Thunderbird from five senior School officials: President Herberger, who discussed Thunderbird's new goals and education trends; John Seybolt, senior vice president, Academic Affairs, who discussed the school's expanded, more structured curriculum; Bud Robyn, senior vice president, Executive Education, who talked about the School's lifelong career training; Executive- In-Residence John Willie, who previewed the School's new branding plan; and Jenny St. John, vice president, External Affairs, who discussed media rankings and fund raising. Council members also got a hands-on demonstration of Alumni My Thunderbird (AMTB). They spent the afternoon forming their council infrastructure and setting initial goals. Thunderbird now sponsors four regional (above left) Diego Veitia '66 created a run on Thunderbird's booth by telling the audience that Thunderbird's training was critical. (above) T-birds Michael Lee '92 Hector Gorosabel '87, Fernando Farre '94 and friends enjoy the reunion's final night event. (left) Julio Morriberon '71 of Peru, Maria Cedeno '93 of Venezuela, and Cedeno's mother, Ursula Quero, enter the Reunion's welcoming reception. (right) Miami Herald Publisher Alberto Ibargiien and Roy Herberger celebrate the formation of a mutually beneficial partnership. TAA councils, plus a global board to provide better, more focused representation in each region, since regions often face different issues at different times. Council members serve as liaisons between alumni and the School. Their primary responsibility involves reconnecting alumni in each region to one another, to alumni in other regions, and to Thunderbird. By so doing, they also help Thunderbird provide the types of lifelong services its alumni need. Given that Chapter Leaders in each city also will play a critical role in Thunderbird's alumni reconnection strategy, the School also sponsored a Latin America Chapter Leaders Workshop in Miami. Eight leaders attended the half-day event, dialoguing with School officials, trying out AMTB, and forging friendships and strategies. Thunderbird now boasts 150 alumni chapters, more than 60 of which have been formed in the past year. Alumni interested in forming new chapters, or strengthening existing ones, can now obtain materials and help online through AMTB in the TAA section. Visit the alumni online community at http://alumnLmy.t-bird.edu. • Willy Cone '19 may be reached at firstname.lastname@example.com The Miami Herald's 2000 Americas Conference will be held September 14-15 in Miami in partnership with Thunderbird. THUNDERBIRD 53 121 2000 33 lj,lIlitil'r/Jli'ti I \l'lllflll' I r/llulfioll Are you a GLOBAL BUSINESS champion? Not all companies have Global Business Championsvisionaries who realize that proactively building global business competencies inside their company's workforce is the key to accelerated profits in a world economy. If you see yourself as a Global Business Champion (manyT'birds do), here is a way to turn vision into reality: Pick out one or two people in your company, and encourage them to find out more about Thunderbird Executive Education's Global Management Programs for the Year 2000. Simply tear out this page and hand it to them, or send them an e-mail encouraging them to visit Thunderbird's mb site for global managers (www.t-bird.edu/execed/GLOBAL). www.t-bird.edu/execed/global _:HEH~Eru~~U~;E~~OL OF INTERNATIONAL MANAGEMENT Executive Education '48-'69 Sigmund Liberman '48 is now semiretired, living in Carrollton, TX with his wife Lee. They have 5 grandchildren and have traveled to Europe 3 times. Thomas (Tom) B. Birch '51 is VP of Investor ReI. at Blue Moon Capital in Costa Mesa, CA. Jorge Carrera '51 is with Transerco Inti. Ltd. in Phoenix, AZ. Grant A. Settlemier '58 is Sr. VP at Salomon, Smith Barney in San Francisco. He is still racing sailboats for St Francis Yacht Club and travelling. Robert "Bob" L. Fife '59 is now retired and living in Sarasota, FL. Glen H. Glad '63 has retired from Firestone Tire and Rubber. He and his wife Laura live in Lakeland, FL. Charles A. Lagergren '64 is an Inti. Training Mgr. at Federal Mogul in St Louis, MO. Clayson (Claris) W. Lyman'64 is self-employed in Preventive Health Care with RexalJ Showcase Inti. in Glendora, CA. Phillip E. Wilken '65 is Pres. of LCS Service in Rochester, MI. Joseph J. Gunnell '66 owns GSI (Gunnell Services, Inc.), a Financial Consulting Firm in Ingleside, lL. Peter X. Habn '66 is a Sales Rep. with the Sutherland Group in Rochester, NY. Perry S. Melton, Jr. '66 is Oir. of Ops. with Maxiswitch, Inc. in Tucson, AZ. Robert S. Eichfeld '67 is the Managing Oir. of Saudi American Bank in Riyadh, Saudi Arabia Barry M. Beyer '68 is selling power generation units packaged by S&S Energy Products in Houston, TX. John E. Massae '68 is an Inspector with Index Research Services, Inc. in Redding, CA. William "Bill" C. Mattison '68 is a Sr. VP at Bank of America in Miami, FL. John J . Verity '68 is OwnerIMgr. of Pacific Steel Fabricators Inc. in Boise, ID. Paul V. Von Schoeler '68 is Pres. of Admin. Systems Inc. in Columbus, OH. Fred D. Bloom '69 recently moved to Sacramento where he is Oir., AsiaPacific with GMI West LLC. Steven C. Burrell '69 is a Process Plant Contracting and Project Oev. Advisor in Beaconsfield, England. Carl N. Holmes '69 is an Office Ops. Mgr. with Ford Motor Company in Carrollton, TX. Manfred L. Locher '69 is semiretired and recently moved with his wife Angelika from Munich to the Bavarian countryside. Barry Soloff '69 is now with Ouracell Inc. in Bethel, CT. '70-'75 Charles E. Johanson '70 is Gen. CounsellSecretary with Telegroup Inc. in Fairfield, lA. Carol (Swiston) Kelley '70 and her husband James live in San Diego, CA. Pavel F. Kriz '70 is a mkt communications consultant for the automotive industry for the InterCom - PDATES ONE WORLD. ONE CAMP Wondering where the kids would go during the summer break? Join the variegated group of children from all over the world at Terry Shand's '72 World Sports Camp in Rhode Island! This is the only summer camp that offers an opportunity for boys and girls between the ages of 10 and 16 to come together to experience expert sports coaching in basketball, golf, tennis and football (soccer), improve English language skills, travel to amusement and water parks, go white-water rafting or sightseeing in New England, and participate in inter-camp sports competition. Shand's passion for sports and love for coaching merged with his desire to be involved in international business and management. That is how the World Sports Camp concept came about. Every summer campers from more than 17 countries come together to play sports in a safe, exciting and fun-filled environment. "I truly love what I do," says Shand. "Being able to orchestrate the getting along of many individuals from diverse backgrounds is very satisfying." No camper from abroad has ever been turned away due to the lack of funds. Shand and his team are committed to finding a solution in each case when a camper wants to attend the World Sports Camp program. HI did not want to become a player in my own backyard of the business world. Instead, I wanted to make the world my backyard!" Shand said. "I truly desire to see all children, all peoples of the world come together in a unified effort to improve commerce and world peace. For me, sports was a good place to start. Children all over the world want the same: to learn, play in a safe environment, and have fun. Check out Shand's Web site at www.worldsportscamp.com Tatiana Poliakova Group in Prague. Roger H. Youel '70 is a Mgr. with GE Capital in Franklin, TN. Robert F. Ainslie '71 is Pres. of Sino-American Investments in Encinitas, CA. Francisco Enriquez '71 is Pres. and CEO of U.S. Purification Systems de Mexico SA de C.V. in Tijuana, Mexico. Thomas W. Lehmer '71 is Chairman and CEO at World Web Markets in Anaheim, CA. Glenn A. Smith,
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