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THUNDERBIRD Maga z in e WWW.T- BIRD.EDU 54/2/2001 THUNDERBIRD Page 2 Expanding Across Borders Sure, market entry sounds simple - until you begin researching the financial, marketing. distribution, and cultural challenges of the process. Page 8 Multicultural Diplomacy & Negotiations Who you send in to negotiate and how they prepare and proceed can make or break the deal. says Dr. Karen Walch of Thunderbird. Page 12 Real Options, Derivatives, M&As, FORAD Forget quick case studies! T-bird's finance classes make students actively manage their firms each day for a full term. Page 16 UPS International President Shares Strategy "Forget B-to-B and B-to-C, B-to-Me is just around the corner," said Ronald Wallace of UPS. Page 22 The MIMjMBA Debate Thunderbird is launching its first-ever MBA option - which does not require second language fluency. Learn why. TABLE O F CONTENTS Ranked #1 in international business by The Wall Street Journal and U. S. News & World Report Thunderbird is America's premier source of global management education with operations in the U.S., France, Russia, China, Japan, Mexico, Taiwan and Brazil. Page 1 CHANGE AND CHALLENGE Competition is up; enrollment's down. Thunderbird must rapidly reposition itself to survive and thrive. Page 14 MIMLA GRADUATES 2ND CLASS One hundred and eleven Latin America-based executives graduate from Thunderbird's Master of International Management - Latin America program. Page 18 EXECUTIVE DEGREES AT ' HOME' Professionals can now pursue Thunderbird degrees in Taiwan, Brazil, Arizona, France, and Mexico. Page 21 BRAND MANAGERS ADVICE What does it take to manage a major brand? The same skills it takes to run your own business, alumni say. Page 24 WORLDWIDE WINTERIMS T-birds take flight each January to experience the business, culture, and language of key countries. Page 28 RESOURCES THUNDERBIRD Alumni use Thunderbird programs and services to propel careers. Page 30 FAMILY T I ES Several families have graduated four or more members from Thunderbird. And they're still recruiting! Page 34 T- BI RDS OF TODAY The Class of 2001. They're high-tech, high-touch, and highly marketable. Meet a few. Page 38 T- BIRD NEWS Page 40 N ETWORK NEWS Page 42 UPDATES ABOUT OUR COVER Phil Cabrera '78 is the assistant treasurer of McDonalds International - which has restaurants in 120 countries and gets more than 50 percent of revenues from outside the U.S. ~~----------- _54/_2/2_001 _____________ ~I~I~---------------P.1 The last year has been one of the most dynamic in the history of Thunderbird; at the same time, it has been challenging and stimulating. Your institution has faced up to some sea-change shifts in its marketplace and moved quickly to position itself for continued success in the years ahead. This issue of Thunderbird magazine contains several articles that will bring you up-to-date on several of the key initiatives we have launched, but I wanted to use this space to give you an overview and put it into perspective. Throughout the 90's, Thunderbird enjoyed steady growth. The pool of prospective students grew dramatically as a master's degree in business became increasingly attractive to individuals - in the U.S. and elsewhere. We attracted numerous applicants and were able to increase both the size and quality of our student body. But as that decade ended, several facto rs began to threaten our progress. For one thing, demographics in the United States began to take their toll. The age group most likely to seek an MBA, those in their late-20's, is at its smallest level in decades. That age group represents the so-called baby bust' generation bom in the 70's. It is a trend that will reverse itself over the next few years, but we are at the trough of that curve right now. was in place. Working with our Board of Trustees, the Thunderbird Global Council, students, alumni, faculty and staff, we arrived at the Trustees meeting in April with recommendations for our future. Out of that meeting came a series of Board-directed initiatives that has launched us on a new, exciting path. Much attention has been paid to the introduction of the Thunderbird MBA, but that is only one of several steps that, combined, are designed to position us for great things in the years ahead. Let me share a more complete list: - We designed and launched a new MBA degree. The faculty has done an incredible job of putting together one of the most innovative programs in the industry. -The faculty has taken the lessons learned from the launch last fall of the new MIM and placed advances incorporated in the MBA into the MIM offering for 2002. - Thunderbird's three academic departments have been merged into a single faculty with eight areas of emphasis: Accounting; Economics/ Operations/Decision Tools; Finance; International Business Information Center (\BIC); International Studies; Languages; Management; and Marketing. -The new Institute for Languages and Communication is taking shape with the formal launch expected later this fall. Another significant factor has been the increasing number of nonU. S. schools offering an MBA and competing for the same applicants. Additionally, and for Thunderbird perhaps most importantly, the globalization of the world economy has meant virtually every graduate business program in the world has incorporated at least some international material into their curriculum and begun marketing themselves as a 'global' program. CHANGE AND CHALLENGE -We have retained Arthur D. Little to do a comprehensive study of our management capacity and structure in light of this series of initiatives. - Ground has been broken in Archamps, France for the enlargement of our Thunderbird Europe, French-Geneva Center, scheduled for completion in mid-2002. -We have joined the AEA Alliance of leading business schools in Argentina, Canada, China, England, France, and Mexico. Thunderbird wi ll be the sole U.s. representative. The goal of the Alliance is to develop partnerships and jointly produce programs to extend the reach and While we had been watching these trends develop for some time, the full impact hit Thunderbird last August with the arrival of our Fall 2000 class. The group, while as qual- A dynamic year at Thunderbird By DR. ROY A. HERBERGER, JR. PRESIDENT, THUNDERBIRD ified as any we had ever admitted, was significantly smaller than we had become accustomed to welcoming. Many of our peer institutions saw similar dips in enrollment; but because Thunderbird is a stand-alone independent private institution, the reduced enrollment had a more dramatic impact on us than similar changes at larger universities. While the enrollment news was not so good, opportunity was at our door. The good news is that this prompted us to take a deep and farreaching look at everything we have been doing and every strategy that capability of member institutions. While I am very confident in the direction we have set, I am also very aware that success will only come through effective execution. It is important to tell you that we could not be more proud of our staff and our faculty in the way that they have come forward to help Thunderbird in these challenging times. You should also know how much your support of the school and the decisions we had to make means to all of us here. Even in the face of uncertainty, there is a quiet optimism and belief in the future of Thunderbird. • p.2 WWW.T - BIRD .E DU 54 / 2 / 2001 EXPANDING ACROSS BORDERS Market entry strategies must be multi-faceted and well researched BY LINDSEY MICHAELS t is one of the world's most recognized brands, with nearly 29,000 restaurants in 120 countries bringing in $40 billion per year in revenues. It is McDonalds, and you'll find the famed restaurants everywhere from Britain to Bolivia to Saudi Arabia to Singapore. When McDonalds' founder Ray Kroc served his first hamburgers to the heartland of America in 1955 he probably never envisioned his trademark golden arches flying overseas. Yet today, McDonalds is as recognized abroad as it is in the U.S. That's because 50 percent of all McDonalds restaurants are located outside of the U.S. and more than 50 percent of the company's operating income is derived from them. McDonalds isn't unique in that respect. Faced with domestic market saturation, shareholder growth requirements, economy of scale initiatives, and increased human mobility, companies throughout the world have begun globalizing aggressively. But, exactly what does it take to enter - and expand - new markets successfully? A lot, says Phil Cabrera '78, assistant treasurer, McDonalds International. A six-year McDonalds employee, Cabrera is charged with helping his company fund its expansion globally. "McDonalds typically invests around US$l million in the land and building for each restaurant, " Cabrera said. "Franchisees invest about US$500,000 in equipment, signage, and seating costs. Of course, investment amounts vary around the world." Thus, funding is one of the first major market entry barriers for capital-intensive companies like McDonalds. Cabrera works directly with a multitude of company officials, worldwide financial institutions, suppliers and franchisees. Along with tax and legal advisors, he must also help investigate the unique tax, legal, and banking practices of each country. Given that it owns or leases the land most restaurants rest on, McDonalds is a major global real estate conglomerate, in addition to being a world-renowned food marketer. "We have a very long-term view of the markets we're in and, as such, have learned to deal with the volatility," Cabrera said. According to Cabrera, in large part, McDonalds obtains much of its required funding from multinational and local banks. "Our corporate policy is to finance ourselves in the currency in which we sell our hamburgers whenever possible," he said. "So, a large part of my job indudes working with controllers at the local level and educating local financial institutions about the McDonalds model, which, in tum, helps our franchisees obtain funding." A 1978 graduate, Cabrera has focused on banking and international business for more than 20 years. "The thing that distinguishes the Latin American market, and international business in general, is volatility, and that's what makes it challenging and fun," he said. Cabrera suggests that people researching new markets develop dose relationships with the local and international auditing firms, law firms, and banks. Also meet with other multinationals and local firms, and "leave your arrogance at home." Such groups, he said, can open local doors and steer you dear of funding and partnership nightmares. "Currency volatility is a given. There are times though when the local currencies are so volatile that it is simply more advantageous to finance in U.S. dollars. But don't let currencies end your expansion efforts - especially if you're investing long-term." Cabrera cited Brazil as an example, saying that McDonalds has been there for more than 20 years. As a result, Brazil is already among McDonalds' largest markets and the market is growing rapidly. McDonalds still protects itself by monitoring all of its international markets and hedging where appropriate. "Another attractive thing about Brazil and most of Latin America for us, at least, is that real estate has typically retained its value and serves as a hedge." Financing market entries strategies is one challenge. Identifying market opportunities, packaging, price points, and distribution channels can be another. 54 / 2 / 200 1 WWW.T - BIRD .E DU p . 3 p.4 WWW.T- BIRD .E DU 54/2/2001 "Asia is a duster of very different countries that must be analyzed and marketed to separately," said Ramandeep Singh '99, who is the Asia region business development manager for Bayer consumer products in Singapore. "The India and China markets, which are just opening. are not the same as Southeast Asian markets such as Thailand and Malaysia - which are developed to an extent but which still have a long way to go - or countries like Japan or Singapore, which are highly developed and pretty similar in make up to that of the United States." Singh cautioned that companies looking to enter each of those markets must do thorough business intelligence and market reviews of each country, and then plan on employing country-specific market entry strategies. "In India and China, you will encounter a wide network of familyowned businesses that have been operating in the market for years and years together," he said. "When a foreign company like ours wants to enter into the country, there are a number of challenges to face, not only in terms of getting government approvals, but also in terms of cooperating and fighting the local giants." Those 'local giants: he said, often have long-established relationships with the media, with suppliers, and with those who regulate standards, which they can leverage to create further market entry barriers for foreign firms. The government in such countries does open for multinationals but most prefer local companies. In such cases, Singh suggested acquiring local expertise, or perhaps, entering into a joint venture with a local firm, where you own at least 51 percent of the joint company. This facilitates incorporating global international standards on one hand and learning local business practices on the other. But, he cautioned, you should leave the local management team intact so as to leverage its market knowledge and key contacts. Singh, who did an internship with Bayer in Cambodia, termed South Asia and Southeast Asia 'virgin territory: There are few well-established stores and distribution channels, but in countries like Vietnam, which has a population of 80 million, people have begun embracing consumerism - and placing a premium on foreign brands. The challenge is that Vietnam is still very bureaucratic; it also requires companies to produce most products domestically. Singh added that companies tend to fare better when they place someone in-country full time. In fact, Bayer's current country manager in Vietnam is also aT-bird. When analyzing markets, other issues also come into play. McDonalds must adapt menu selections to local tastes and import nearly all its goods, until it can build supply chains locally. Some companies find that selling single-serving sizes works well in countries with low per-capita incomes. Others 'link' different products in a 'buy one get one free' format in cultures that value bargains. Many must also utilize in-store or event 'road shows' to demonstrate key products when television, direct mail, and other promotions aren't readily accessible. "Expatriate compensation costs are quite high and they must also be considered when calculating potential margins," Singh added. "Because your local competitors will 54/2 / 200 1 WWW.T-BIRD . EDU not be paying them, they can often sell for less. You must be prepared for that." For many, having good products and good market intelligence is the Holy Grail of new product and market launch. You simply have to understand your products' attributes, your potential dients, your competitors, the country's laws and its supply chain systems. If you don't, you're setting yourself up to fail. Babs Ryan '81 is a stickler for market research. Now the vice president for GE Financial Assurance's Home Services products, she learned the importance of collecting varying types of data during her first post-graduation job. "I became completely enchanted with motorcydes while at Thunderbird," she said. "So when I saw an ad for a marketing position with Kawasaki in London, where I'd gone after graduation, I pretty much rode up and asked for the job. "I knew motorcydes, and I knew a lot about motorcyclists, since I was one, so I was able to recommend some very targeted strategies for obtaining data." As head of the Marketing Department, Ryan first compiled a database of 80% of motorcyclists in Great Britain, which induded the make, model and purchase date of the bike, plus rider preference data. That allowed her to run very targeted direct mail campaigns. Next, she used her in-depth product and customer knowledge to get creative. "Rather than just running ads in the leading motorcyde magazine, we'd insert a 'performance' package of Kawasaki materials. And when most of our competitors were lining up their bikes at trade shows, we created themes. One year, for instance, our bikes were part of a Merry-goRound and carnival theme. The bikers loved it and all their kids were walking around with balloons bearing our logo. Another year, we set up a trade show stand made entirely of mirrors after realizing how bikers' images of themselves on new motorcydes triggered sales. The mirrors let potential buyers see exactly how they would look on our bike from all angles. They loved it. "As a result, we increased our market share to 65 percent on models over l25cc - which was the highest profit segment for motorcycles - and we beat Honda by a mile." Ryan also reduced prior year inventory by packaging each bike together with a set of high-end, in-demand, matching motorcycle leathers. "It all comes down to knowing who your dient is and exactly what you can offer them," she said. "By understanding that most British riders used their bikes as their primary form of transponation, even during the coldest months, we were able to use that promotion to help clear out 6,000 bikes in just three weeks. We also reaped the added benefit of getting bikers to ride around Great Britain wearing our logo on their backs." Today, Ryan applies that same zeal for client data to her work at GE Financial Assurance. She even has four U.S. patents pending for business- building innovations. Timing market entry is another critical component of strategy. Chris Curtis '97, manager of international strategy, helps make those choices for eBay. "When I joined eBay three years ago, we had less than so employees, were not particularly well-known, and did not even have an international group or growth strategy," Curus said. "Today we have a site presence in over 17 countries and we expect to be in 25 countries by 2005." According to Curus, eBay does both Qualitative and Quantitative analysis of potential new markets and panners, and the company's first foreign foray was into two other English-speaking countries: the United Kingdom and Australia. "The UK was a complete 'build' operation. We simply customized and localized a certain percentage of our site for the UK market," Curus said. "In Austral ia, we set up a joint venture with a large local partner that was YOU DONI HAVE TO BE BIG Just Well Prepared and Wise STORCH INTERNATIONAL INC. ISN'T A HUGE CONGLOMERATE. But it is a multinational. The Wisconsin-based exportmarketing firm, which sells raw materials to fabricators of window covering products, has a staff of just four people and annual sales of under $10 million. Yet Richard Storch '75 has successfully entered China, Hong Kong, and more than 30 other markets. His company has also won Wisconsin's Small Business Administration's Exporter of the Year 2000 Award. "The majority of the money I've invested in my business has been in travel," said Storch. "Yes, you have to read the preliminary reports, but I never work with a prospect or market unless I take two or three trips over to the country myself. I guess I believe in getting to know the market by doing basic 'street market research: Then you know your decisions are based on good, solid first hand information." Storch also stressed knOWing your products and market thoroughly enough to find the proper fit - and in finding the right partner. "You can't go in with the attitude that the first contact that comes along will do. You have to pick the right partner from day one:' If not, Storch believes, you foster ill will in the market, cause marketing delays, and risk setting yourself up for costly legal problems. Although Storch's company has successfully entered many countries during its 14-year history, he is proudest of his recent entry into China. That's because he worked closely with his Hong Kong-based partners and invested heavily to establish a local office of his company. "Asia is one of our most critical areas for future growth and my Chinese customers, in particular, are some of the most demanding customers I have;' Storch said. "They expect outstanding quality and service for the price:' After interviewing college graduates in Hong Kong, Storch believed it was important to bring his new-hire to the States for a full year to really learn his products and strategies, visit his factories, and attend trade shows. That investment has already paid off. "The fact that I was committed enough to open an office there and staff it with someone who really understood their culture and language - as well as my business - made my Chinese clients realize just how important they are to me;' Storch said. p.5 p.6 WWW.T - BIRD .E DU 54 / 2 / 2001 in the media business." According to Curtis, both countries were logical expansion targets because of growing Internet usage and other factors. Lack of a language barrier also made the company's first foreign market entries easier. "Germany represented eBay's first entry into a foreign language market. It was also our first international acquisition." That dedsion was prompted primarily by the fact that a Germany company had already launched Alando.de, an eBay style site; eBay chose to purchase that company. 'These guys pulled an eBay on us before we could do it ourselves," Curtis said, "which is one of the factors you have to take into consideration when developing your expansion strategy. You don't want to go in too soon - before the market is there - but you also don't want to give competitors too much time to establish their brands and build their market share." According to Curtis, eBay learned that lesson in Japan. Competitor Yahoo launched its Japanese auction site in September 1999, while eBay didn't enter that market until March 2000. As a result, 75 percent of Internet users in Japan now sign on to Yahoo's overall properties at least once each month and Yahoo's auction site regularly boasts over two million items - compared to 15,000 on eBay. Given that Japan is now the world's second largest e-commerce market, eBay's entry delay there could prove costly. That's one reason company offidals elected to purchase iBazar, which has a strong presence in the growing Brazil market, as well as sites in France, Italy, Spain, the Netherlands, Belgium, Sweden, and Portugal. "The reality is that there really is a 'first mover advantage' in this industry," said Curtis. "Assuming that it has a solid site, the first company that builds a vibrant community in a marketplace creates a momentum that makes it very difficult for others to catch up." The challenge, of course, is knowing precisely when to enter each market. And that's where good business intelligence proves invaluable. While 'go/no go' criteria differ for each industry, some things are universal: companies must thoroughly research and understand the target market's size, sodal economic structure, cultural nuances, and laws. For eBay, that indudes things such as knOwing country-by-country Internet usage rates and existing technology platforms, how frequently credit cards are used, the impact of banking, import/export, and other laws, and how people feel about buying 'used' vs. 'new' merchandise or buying 'sight unseen: "In Germany and France, for instance, 'hate propaganda' is outlawed and we have to deal with 'filter' issues," said Curtis. "Then there are culture- spedfic buying attitudes. While a 'garage sale' mentality is prevalent in the U.S. market, there is actually a stigma attached to buying things secondhand in Asian cultures. As a result, people in places like Japan tend to buy a lot - primarily unique, high-end designer goods from the U.S., France and Italy - but they don't sell much." And while e-commerce in Brazil is reaching critical mass, eBay must work to create a full range of andllary escrow and import/export services that help eBay users there - and in other countries - exchange goods and services across borders. "I'd leave you with a simple rule-of-thumb," added Babs Ryan. "The first step in analyzing potential market entry is knowing - then being able to dearly articulate - exactly what your product does that no one else's can. If you can't do that, nothing much else matters. "Luckily, that's where we, as Thunderbirds, have a major edge in other countries. We can apply everything we learned, not just in dass, but from all those people from all those countries we befriended at the cafeteria and Pub." • THUNDERBIRD EUROPE Thinking global? Think Thunderbird ••• America's #1 Graduate School of International BusinessNow Full-Time in Europe! .... Thunderbird students experience Europe first-hand. .... Students fram many cultures exchange insights and ideas. Thunderbird is more than a business school - its unique, multi-cultural community and global curriculum are your t icket to an exciting new career! The journey begins at Thunderbird! Whether you attend our main campus in Arizona, USA or our fu ll-time Thunderbi rd Europe si te, you can become a global business ci tizen. Attending Thunderbird means immersing yourself in an Olympic Village of faculty and students who come from more than 70 nations, from nearly every type of background, and who embrace diversity. They provide a personal entree into every culture, taking you far beyond stereotypes and into the heart of how people in each country really act and feel. Thunderbird 's unique curriculum consists of courses in World Business, International Studies, and Modem Languages. So, in addition to core business skills, students learn to truly understand the unique language and culture of doing business globally. Thunderbird students can now start-and complete most of their courses-at our Thunderbird Europe, French-Geneva Center. Located just minutes from Geneva, the French-Geneva Center offers easy access to Europe-based global multinationals and some of Europe's best internships and jobs. Thunderbird also gives students the option of studying in nearly 30 countries each year through our Overseas Programs-where they can experience the culture, speak the local language, and learn about the country's business practices firsthand . To become a global leader, co ntact: • Cynth ia Zoubir, Director of European Admissions and Student Services, at +33-4-50-31-56-63 or email firstname.lastname@example.com, or • Judy Johnson, Dean of Admissions and Financial Aid, at 1-602-978-7596 or emai l firstname.lastname@example.com Ranked #1 in International Business by The Wall Street Journal and U.S. News & World Report Acc redited by: AACSB and NCACS WWW.T-BIRD.EDU ~ ~::M~'~N~R:D~~~C~O~ ~ OF INTERNATIONAL MANAGEMENT -P.s-------------11VIE WPOINT 1_ ________54_ /2_/2°_°1 WHAT'S MI~E IS MINE AND WHAT 5 YOURS IS NEGOTIABLE! New market entry often involves negotiating strategic partnerships or purchases. So, do you truly understand the process - the cultural and emotional nuances - of global negotiations? If so, do you also understand yourself well enough to negotiate successfully? BY DR. KAREN S. WALCH, Assoc. PROFESSOR INTERNATIONAL STUDIES Thoughts of the simple phrase that is the title of this article can make people want to run, fight or give in as a negotiator! That's because negotiation isn't for the idealistic or innocent; it's for those with the discipline to confront their own internal negative forces of destruction, scarcity, and separation. The journey from negotiation preparation to accomplishment requires both intellect and heart. It is not for everyone. After many years of study and working with thousands of negotiators, I can tell you that there is nothing more profound than watching someone realize his or her own innate, universal, and vital source of negotiation power. Here's some of what I have observed in my global negotiation and bargaining courses at Thunderbird. THE VALUE OF THUNDERBIRD [n negotiation, we know that the notion of self-interest deeply fuels the fire of frustration - and fun - in the global marketplace. But how do we appropriately define self-interest, power, preparation and success in today's multicultural milieu? How do psychological and spiritual sources of power - in addition to their organizational, political, legal and economic power base - impact the motivations, mindsets, and effectiveness of each of us? At Thunderbird, courses such as International Political Economy, the Regional Business Environment of Asia, Europe, Latin American and/or North America, and Cross Cultural Communication, go a long way toward preparing our students for global negotiations scenarios. For instance, a Mexican T-bird recently related how much his competencies in the language, culture, and politics of the areas where he does business positively impact his ability to prepare and negotiate with confidence - despite working for a very small Mexican company. He specifically credited his ability to negotiate in 'intensely colloquial and unique local business terminology' with helping him prepare and negotiate successfully. Thunderbird courses that highlight legal and political differences throughout the world also teach students that local legal systems often cannot supervise the fragile and complex interpersonal relationships that exist between family members in firms, suppliers and buyers - or management and labor - in many cultures; that obtaining local political, legal, or economic clout can strengthen your position; and that power is very much a function of perception - in both what you believe can be done and how another perceives your ability. T-birds learn that negotiation in a political environment can be rather like a rain dance. It may sometimes have very little impact on the weather itself, but it can make people who need to believe that they're in complete control feel a little better. As negotiators, we must often work very hard to improve the dance itself - not the weather - thereby achieving the type of trust and feeling of mutual gain that is ultimately productive in such environments. Understanding this, as well as the language, political, cultural and economic factors of the players, then combining them with the emotional competency of'enthusiasm', often takes Tbirds to new heights as negotiators. One female, American T-bird, who speaks very good Japanese and who truly understands the culture, was negotiating a deal for an entertainment contract on a cruise line that used a civil port that was located in the far north in a cold area, difficult to reach, and dismal in winter. The T-bird's negotiation tearn members went in with a negative view of the deal, but she confidently drew upon her cultural and language knowledge to inform and motivate, and ultimately, to close the deal. She believes her positive attitude and emotional resilience were so contagious that everyone eventually came to value the deal. Students who take my class often assess past negotiation experiences and come to realize what really went wrong. A Swedish T-bird with significant experience selling million-dollar computer systems now realizes that the main reason he lost business was his failure to effectively communicate tangible and intangible benefits, such as price, delivery, pay.ment terms and service. Had he known more about the 'psychological' issues he had in not listening enough and being more courageous, he could have achieved substantially more. Armed with such knowledge, the T-bird negotiators I witness can go far beyond the predictable topics of power and process in their preparations. In fact, they become very sophisticated in their detailed treatment of both the 'egocentric' and 'sociocentric', 'structural' and 'psychological', and 'western' and 'eastern' approaches to self-interest and power that are inherent in a negotiation process. SELF-INTEREST, POWER AND STYLE Negotiators fundamentally negotiate for what they want, but moving from an egocentric point of view to a sociocentric one requires preparing for what they - and others - need from a negotiation. One way of describing the interaction between east and west is to show what T-birds have learned about integrating western attitudes with what they learn from eastern colleagues - and vice versa. For example, many typical male, American negotiators find that their strength is negotiating using hardball tactics. However, T-birds have achieved more success in international negotiations by using the 'exchange' and 'reciprocity 54/2/2001 WWW.T-BIRD .EDU p .9 p. 1 0 and silence' principles that are common in eastern negotiation styles. Conversely, female negotiators from Asia, who tend to use a 'soft talking' and 'yielding' style and 'wait and see what we deserve' mindset, have learned to communicate and assert ideas more effectively. Egocentric and sociocentric self-interest issues affect a negotiator's ability to have an open mind when examining political, social, and cultural points of view. Negotiators actually have to practice opening their minds by focusing on the intricacies of such relationships. Great negotiators also utilize principles from marketing. For instance, a sociocentric notion of self-interest expands as marketing negotiators move beyond seeing the world from their point of view to understanding the needs of the customer, to inventing options for helping all sides achieve their goals. Negotiators have to honestly assess their own fear ofloss and pure self-interest in preparing for negotiations. An Australian T-bird described his negotiations in the U.S. as a buyer for a telecommunications company. From an egocentric perspective, he believed that the price, unit, and volume commitments he'd just outlined with an equipment vendor were perfect. But when they reached an impasse, he stopped to look at the deal from the vendor's point of view and realized that they had overlooked discussing shipping terms. That extra effort helped finalize the deal - and launched a long-term partnership. Strategy negotiators also employ 'structural power; which involves using business intelligence and analysis, and utilizing political, legal, and economic power sources. However, they also explore the role 'perception' and 'values' play in affecting how these resources can be employed. One student works for a bank in Peru where his customers often require various letters of credit to conduct business. He is very familiar with the factual information that determines whether or not a company receives such letters. He also understands the political and social factors that can affect success. As a result, he doesn't automatically accept rejections from his credit risk department; he also uses his strong psychological communicator archetype to negotiate with superiors and risk group members - and in so doing, has earned the long-term loyalty and trust of many clients who have used the second chance he secured them to go forward and succeed. ARCHETY PES A female T-bird in Eastern Europe found that her 'warrior' archetype allowed her to establish product lines in several markets - negotiating with dealers and local marketing officers for annual contracts. To accomplish that, she need- WWW.T-BIRD .EDU ed tremendous confidence, courage, and conviction, as well as the strength to 'stand on her word: While, structurally, she knew she had U.S. head office support and the legitimate hierarchical power to influence local marketing officers, it was her cultural savvy that taught her that her real power in the market came from knowing how to speak the language and how to work at a pace - and in a way - that was appropriate for Eastern Europe. Another T-bird, from Venezuela, assessed his struggle between the 'warrior' and 'servant' archetypes when negotiating. The warrior archetype describes positive behavior - being active and energetic in the face of rejection and challenges, possessing an internal sense of strength, power, and wisdom that he uses for his personal development and growth. However, in his Latin American culture, many negotiation issues become highly personal. Through class, he realized that whenever negotiation outcomes risk affecting his family and relationships, his negative 'servant' archetype often dominates. That archetype motivates him to do for others and accept what's offered without a clear sense of what he personally deserves. By better understanding this contradiction between his servant and warrior attitudes, and how it weakens his negotiating prowess, he has learned to use his emotional competency to identify his servant attitude - which can make him resentful and unproductive - then correct the problem. A Chinese student had identified himself as a positive 'emperor' archetype for believing that all negotiation participants can share in an abundance of resources. But he also possesses the negative trait of silence, holding in feelings 54 / 2 / 2001 and not identifying emotions such as anger and disappointment. This would require other negotiators to try to perceive his feelings - which could be disasterous. He has had to work on becoming more conscious of being honest and willing to communicate and reciprocate during the negotiation process. BUSINESS INTELLIGENCE AND EMOTIONAL INTELLI GENCE TOOLS My most significant revelation after working with culturally trained negotiators is that they have a dialectic and integrative (but practical) view of negotiation. They use business intelli-gence (B[) and emotional intelligence (EI) tools to evaluate both structural power and the psychological mechanisms of power when preparing for negotiations. Business intelligence is the legal collection, analysis, and use of information regarding the competitive environment - including the vulnerabilities and intentions of business competitors or partners. [n addition to doing market research, negotiators should prepare for market entry by determining the appropriate negotiation agenda and practices for each market. For example, developing new businesses in India would require negotiators to identify market opportunities, packaging, pricing and distribution partners before negotiation could begin. They would also have to learn about the cultural values regarding family, labor unions, and local perceptions toward foreign companies. While determining the true value of goods and services in international markets is fundamental to negotiation preparations, so too is the systematic preparation and understanding of emotional resources related to that culture. 54 / 2 / 2001 Emotional intelligence or competence represents elements of how well we manage our intemal psychological states - our emotion~l tendencies to reach goals, the awareness of others, and our abilities to induce desired results in negotiations. Let's look at an example. A Europebased, American female in the telecommunications field was promised that she would be given a technical position. But, she felt neglected and passed over for prime technical posts. Instead of focusing on her positive skills and contributions, she let pessimism dominate. Once she realized she could change her negative attitude into a positive one, she began to get proactive - constructively negotiating with her manager. Before then, she had felt frustrated and powerless. Afterwards, she found that her manager remembered her promises. She landed the company's Internet Web job - and did it quite successfully. By virtue of their backgrounds and coursework, I have found that T-birds are unusually aware of how many issues exist in the multicultural and global marketplace and just how important negotiation is a a problem solving WWW. T- BIRD . EDU and conflict resolution tool. They understand that changes that occur in the financial, political, and technolOgical environment of one place are probably connected somehow to 'somewhere else: Increasingly, however, even T-birds are discovering that the world is largely defined and shaped by our imaginations - rather than by the structural reality of limited resources. That's because no one really knows what the world is like; we all simply perceive relationships and transactions in the context of our own intellectual/ emotional analysis, illusions, speculations, and/or misconceptions about the market and/or political structures. PERCEPTIONS A French T-bird was astounded to discover that this Chinese and Japanese negotiation team colleagues viewed his perceived strength at leading others as a weakness. In the French business culture, where he termed structural power and hierarchy a 'big dea l', he had had to 'spend a lot of energy trying to dimb the ladder and prevent others from getting there before him: After talking with his Asian colleagues he came to view that type of power as a 'plague for human beings' when working multi-culturally. He had to begin acknowledging and admiring his colleagues' competencies and values so as not to be perceived as aggressive - and ineffective - in an Asian setting. Not surprisingly, many people now contend that negotiations are shaped primarily by what negotiators actually perceive as meaningful, dangerous, and critical. Again, Thunderbird students have a tremendous advantage here since their multicultural training and experience have already taught them that people act according to the way the world appears to them - not necessarily according to the way it 'is'. They accept the fact that 'our consciousness' represents the next great frontier - the critical domain for negotiation and preparation. Thus, I've found a resonance in T-birds to explore how negotiators use various kinds of mental models, as well as emotional, and archetypal frameworks, to analyze negotiation environments and individual skills and attitudes. I've also seen their awareness that these psychological frameworks are what drive us to respond to the 'objective' facts about any political, economic and social situation. p.1 I HISTORIC 'MENTAL MODELS' The traditional western, Machiavellian 'mental model' was that humanity was by nature sinful, wicked, driven by pure egoism, and fueled by an instinctive lust for power and the desire to dominate others. Therefore, negotiations were seen as a struggle for power, a contest of wills, and the unwavering pursuit of pure self-interest and self-defense. That 'mental model' or philosophical/ psychological perspective prompted negotiators to use manipulation or hard bargaining strategies to ad1ieve an 'I win. You lose' outcome. However, in the post-modern 21st century, many question the efficiency, effectiveness, and ethics of such a negotiation strategy. Globalization - with its impact on workforce mobility, corporate restructuring, diversified and multicultural workforces, and complex service/industry sector valuation - virtually forces negotiation to function as a conflict resolution tool. People have to analyze assumptions and determine the appropriate approach to use of power so they don't 'knee jerk'. One male, American student termed realizing that there is power in simply listening, as well as a need to educate others that they shouldn't 'cut people off when speaking, as the two key skills he learned in dass. The truth is that even today, many negotiators still try to intimidate others and make them feel weak. so we teach reality-testing techniques and processes that counter Machiavellian-style negotiators. In the end, our own behavior, emotions, dissatisfaction, and understanding of power are the only real barriers we face. 'Win-Win' style negotiators have to learn to take time to cool off, collect their thoughts, and see the bigger picture. Once they do, they find it easier to sidestep the hardball negotiator and diffuse his or her destructive style. And, if all else fails, winwin negotiators realize they can always negotiate with another supplier, partner, or manager. THE THUNDERBIRD MODEL The 'win-win' negotiation style - which allows both sides to achieve their goals, 'save face', and preserve long-term working relationships - is the 'mental model' we teach in every course at Thunderbird. Our negotiation students learn that power must be understood in a psychological and archetypal sense before a negotiation can succeed. They recognize that emotional and cultural currents are even more powerful than thought and logic - thus, the more complex the intemational social system, the more psychologically flexible and adaptable they must remain. Such self-awareness and suspension of judgment provide the mental darity, optimism, and self-efficacy that I believe will continue prompting T-birds to seek out - and achieve - tremendous goals in the 21st century. • p.12 WWW.T-BIRD . EDU From Real Options to Derivatives, to M&As and FORAD Finance courses make T-birds manage day-to-day BY LINDSEY MICHAELS Many people have heard of Thunderbird's famed FORAD finance course, which requires student teams to guide a simulated U.S.-based company, with German and UK subsidiaries, through seven grueling financial 'quarters'. Forget quick case studies! At Thunderbird, finance majors must actively manage their firms each day throughout the term. "We've developed two strong multinational finance career tracks here at Thunderbird - one that prepares students for corporate finance positions and another that prepares them for global investment management posts," said Dr. Mark Griffiths, an associate professor of finance and area-coordinator. "All are based upon a combination of classroom learning and in-depth application exercises." FORAD, for instance, requires students to strategize about when and how to expand production facilities, how to buy and bill between subsidiaries to capitalize on country-specific taxation laws, how to hedge for exchange and interest rate shifts, and the impact of each decision on sales, debt, credit ratings, and share price. "FORAD is a very dynamic program that forces students to make operations, strategy. and finance decisions in a very real world setting. one where they are never quite sure how economic and market conditions are about to change," said Dr. Michael Moffett, the associate professor of finance who teaches the program. In FORAD, the group achieving the highest per share price at the end of the 'game' wins - although each group must turn in detailed financial and supporting statements, then defend its choices in front of a four-person finance faculty panel. Those panelists function as the Board of Directors during a grueling one-hour defense where they 'drill' students regarding their rationales and choices. "My experience with this class was awesome!" said Felipe Jens '00, who now works as a finance associate for Enron. "Even though I had to invest many hours preparing for the classes, then spend even more hours during the weekends preparing the FORAD Financial Quarter Reports, it was a good cost-return experience." By the end of FORAD, students have learned to strategize through an entire series of critical 'what if scenarios they may have never even really considered otherwise. "I still use what I learned in FORAD." Jens said. "In fact, I just had to prepare a business plan for Enron focusing on the challenges and opportunities of investing in several emerging markets. I used Dr. Moffett's book and class notes to prepare much of that material." Thunderbird's latest curriculum 'coup' involves obtaining the first academic site license for PricewaterhouseCoopers' (PWC) award winning ln$ider derivative-training CDs. PWC developed In$ider to train its derivatives auditors; Cargill Industries and Bank of America also use the tool. The interactive, four disk In$ider series immerses students in a real-world, 3D learning environment where they have to make hard choices - then live with the results. At the end of the first disk. for instance, students get 'fired' for leaving their company exposed to a US$100 million counter-party risk. 54/2/2001 During the second disk, they must track down unauthorized trading. determine the degree of resulting exposure. then recommend security procedures to prevent future occurrences. PWC's In$ider program is part of Thunderbird's Financial Engineering & Derivatives course - which is now required of finance majors. That course teaches risk management, how to modify uncertain cash flows, how to hedge currencies and commodities, and how to establish protective measures and manage financial processes. ''Thanks to ln$ider, Thunderbird's students now graduate already trained to professional standards. That gives them yet another advantage in the market place since their counterparts from other world-class business schools need employer-paid, supplemental training to obtain that same skill set," Griffiths said. "The In$ider software is the closest thing to a real experience I have seen in education." said Bego Urionabarrenechea '01, who works for CEMEX in Mexico. "What I've learned from this software will stay with me for a long time because I've made mistakes and seen exactly how they affect the company." Because derivatives are now a critical management tool for hedging all types of financial risk. those skills are used heavily in Thunderbird's other top-level finance course - Global Portfolio Management (GPM). In GPM, students optimize a self-selected, ll-item portfolio that must include at least three assets each from the world's various bond and equity mar- 54/2/2001 kets. They must also develop a plan to sell this portfolio to investors and to analyze its performance over a simulated lO-year period. "The final report in this course should demonstrate the student's mastery not only of basic investment concepts but also of modern risk management techniques such as value-at-risk, Monte Carlo simulation, and stress testing." Griffiths said. "GPM was the most fast-paced and demanding class I had at Thunderbird," said Armando Urena '01 who works in Lehman Brothers' Private Clients Services group. "The class helped me gain a high level of comfort in ta lking about some of the more technical issues related to portfolio management and has given me a solid base of knowledge from which to grow as a financial professional." According to Griffiths, GPM's demanding workload is one reason the current 3-credit course will be expanded into three l.5-credit ones: portfolio management, financial modeling and fixed income. "At the SOOO-course level it's tough to tell the difference between students with statistics backgrounds and those with finance ones," Griffiths said. "That's because core quantitative computations drive even qualitative choice, which is why many of the finance recruiters who come to Thunderbird still value good 'quant' skills heavily." Not surprisi ngly then, Introduction to Real Options, which is taught by nationally recognized expert, Larry Chorn, always has twice the WWW.T- B1RD.EDU number of applicants as the class can hold. Real Options teaches advanced financial engineering concepts, such as look-back and barrier options. It also teaches students how to apply those concepts to decision models related to corporate investment and divestment strategies. 'The Real Options class opened my eyes to the idea that in any situation with uncertainty, there is a value in positioning oneself to take advantage of opportunities if they arise," said Eric Giauque '00, a senior financial analyst at Intel. "For example, I'm currently working on a project here at Intel using real options and Monte Carlo analysis to determine the optimal number of processors to build. The grounding I gained in Real Options at Thunderbird gave me a head start on this project that has been extremely valuable." Winterim on Wall Street is another course for which students compete aggressively. Usually, the course has three times as many applicants as space. Held each January, the program walks students through a typical firm's funding lifecycle. It also takes them on site visits to the Federal Reserve, the floor of the New York Stock Exchange, the trading floor at Solomon Smith Barney, a professional money management firm, and the New York Mercantile Exchange. "From our vantage point, which has traditionally been inside Dresdner K1einwort Wasserstein's corporate boardroom at 7S Wall Street, you can't help but feel like you're in the heart and soul of the financial world," said Dr. Phil Drake, an assistant professor of accounting. who co-directs the program with Griffiths. "Our students meet with alumni - such as then Dresdner K1einwort Wasserstein North America CEO George Fugelsang '63 - and other professionals involved in everything from venture capital and handing initial public offerings, to obtaining project funding. and guiding companies through bankruptcies," he said. 'They get to see first-hand the types of finance that might most interest them. Many also get internship and job offers." Winterim on Wall Street is so valued by Wall Street investment banking firms that. in addition to sponsored receptions and lunches, companies such as Citigroup provide travel grants. _ p . 1 3 participant knew, felt, or should have known at each step along the way. "Mergers aren't just about accounting and finance, and they are so much a part of corporate life today that we want Thunderbird students to live and breath a real merger - or at least as close to the true experience as one can get in academia - before millions of dollars and thousands of peoples' lives are on the line," Drake said. Students participate in two weeks of cases and lectures then in a weeklong role-play case study designed specifically for the cou.,.. The recent MBA course was based upon the 2000 mega-merger between Glaxo ~e and SmithKlein Beecham. Stude. had-to Jearn as much about the actual ca~ bY players as possible without actually ..t(nowing who they were. They spent the final w p. 1 4 WWW.T - BIRD . EDU 54 / 2/2001 MIMLA GRADUATES 2ND DISTANCE LEARNING CLASS The flags of Peru, Spain, Great Britain, Colombia, Guatemala, and Mexico all flew at graduation. Six flags, representing six countries and the 111 working executives who came from them - all of whom were united by the common goal of preparing to work effectively in the global economy. The graduates were all awarded dual degrees on June 30, 2001 from Thunderbird and Instituto Tecnol6gico y de Estudios Superiores de Monterrey (ITESM) - which teamed up to create a powerful alliance that helps Latin America-based learners cross borders and become enriched, economically as well as intellectually. That's because in addition to teaching core business skills, the program also introduces students to cultures and perspectives that are much different from those they are accustomed to. Class of 2001 graduates were the second class to receive a Masters in International Management for Latin America degree from the two top-ranked graduate business schools. The new program, called BY MAYELA TRAHIN MIMlA for short, has been offered since 1998 and brings the best features and faculty of Thunderbird and ITESM directly to students. Potential students have been especially excited by the MIMlA option for two reasons. First, Thunderbird is the top-ranked graduate school of international business in the U.S., ranked #1 by The Wall Street Journal and u .S. News and World Report, and ITESM, which is based in Monterrey, Mexico, and has the #1 ranked MBA program in Latin America, according to American economic magazines. Second, the program allows high potential executives with at least five years of work experience to obtain a quality graduate business education without having to interrupt their careers. In MIMlA, students throughout Mexico and Peru attend classes 'virtually; receiving the bulk of their instruction by satellite from Thunderbird and ITESM faculty. Classes, which are held every other Friday and Saturday, are transmitted via satellite from Thunderbird in Arizona and from ITESM in Monterrey. Students also communicate extensiveJy with instructors via the Internet and videoconferencing. According to Jose Ifiesta '01, a graduate from Guadalajara, Mexico, 'The virtual education practiced in this program is actually very beneficial as it also trains us to work with the latest technology our companies are using today." But, he added, "Even though everything is virtual, human relations and human contact are always present." One hundred and twenty-six Class of 2001 students began their studies in August 1999 with a weeklong seminar called "Leadership in Global Business in the XXI Century" which was held at Thunderbird. One hundred and eleven - or 88 percent of them - returned two years later to graduate. This year's commencement ceremony began with touching renditions of the Mexican and American national anthems. Julio A. de Quesada, president and managing director of Citibank Finance Group of Mexico, was the keynote speaker. After congratulating the graduates, he also shared a few of his secrets of suc-cess with them. His single most important suggestion? "Always enjoy what you do, be optimistic, be flexible, be prudent, take risks, listen and learn, and never loose your sense of humor." Quesada added, "MIMlA contains all of the factors crucial to a world level program at its best; it certainly is an excellent combination, especially because it gives people who otherwise could not adjust their personal lives or their work agendas the opportunity to take this master's course." Dr. Ben Valencia, director of MIMlA at Thunderbird, and Dr. Antonio Dieck, co-director of MIMlA at ITESM, observed proudly as their special breed of T-birds enjoyed all the fruits of their hard work. From ITESM's perspective. Dieck said, "This is a magnificent alliance with an excellent partner. This class now makes 215 graduates to date and all of them have been very satisfied with the results of their program. In fact, about half 54 /2/ 2001 WWW.T- BIRD .E DU p. I 5 "A LWAYS ENJOY WHAT YOU DO, BE OPTIMISTIC, BE FLEXIBLE, BE PRUDENT, TAKE RISKS, LISTEN AND LEARN, AND NEVER LOOSE YOUR SENSE OF HUMOR," JULIO A. DE QUESADA, CITIBANK FI ANCE GROUP OF MEXICO of them have already been promoted - even before completing their master's degrees. Many have also begun their own companies." Dieck also said he believes the graduates are considerably different people now compared to what they were when they started the program. Unfortunately, this was Dieck's last year as ITESM's MIMLA co-director; Dr. Mauricio Gonzalez '94 now assumes that role. As is the custom in Hispanic cultures, friends and families of the graduates traveled to Arizona to join and celebrate with them. Among the graduates who celebrated with family members was Class of 2001 valedictorian Andres Rodrigo Garda Morlel who said, "I'm very satisfied with this graduate program because it offers two things. It gives you the opportunity to obtain an American education in Mexico, and it doesn't interfere or interrupt your professional growth." Thunderbird welcomed 145 incoming Class of 2003 MIMLA members to campus August 1 to begin their program. Those students are citizens of 11 countries - El Salvador, France, Hong Kong, Mexico, Netherlands, Panama, Slovenia and the U.S. - and will participate in the distance- learning program at nine ITESM sites in Mexico and Panama. The MIMLA Class of 2003 is also 25 percent larger than the 2002 MIMLA class. One hundred and nine of the 115 Class of 2002 students are still actively engaged in the program. _ FOR ADDITIO AL I FORMAno on the MIMLA program, please contact Thunderbird's Dr. Bert Valencia via email at valencib@t-bird .edu or by fax at (602) 978-7729. p.16 WWW.T- BIRD.EDU 54/2/2001 President of UPS International Speaks at Thunderbird Headquartered in Atlanta, Georgia, UPS is the world's largest package delivery company, carrying 13.6 million packages per day on its fleet of 500 planes - which makes UPS the world's 11th largest airline. The company posted revenues ofUS$30 billion last year and employs 350,000 people at 450 facilities in more than 200 countries and territories. UPS was just named the "The World's Most Admired Company in the Mail, Package and Freight Industry" by Fortune magazine for the third consecutive year. So, you're UPS and you're already great, global and extremely large. What's your game plan for the new century? Ronald Wallace, president of UPS International, and Alan Amling, director of Electronic Commerce, told students, staff, and faculty February 20, 2001 at Thunderbird. The men addressed three key points: • UPS' vision as a global company • The role e-commerce plays in global business, and • What qualifications managers need to succeed in a global world. They also took the incredibly impressive step of bringing video testimonials from Thunderbird alumni who now work for UPS worldwide. One alumnus is the vice president of Asian operations. The other works on the Global E-Supply Chain team. 60th gave first-person accounts of what it's like to work for UPS and why a Thunderbird education is so valuable. flOur goal is to become the leader of global commerce," Wallace said, explaining that his company must, therefore, think non-traditionally. That's why UPS' strategic operations include a global finance and funds transfer business, a customs house brokerage that can often arrange for packages to clear customs while still in the air, and a strategic enterprise fund that invests in young companies in search of a 'knowledge return: According to Wallace, UPS began expanding globally in 1975, expanding into Canada, then into Germany the year after. During the mid-1980s, the company foresaw the coming need for a seamless crossborder European delivery system, and so began acquiring the first of its 16-European-based companies. Today, it sees tremendous potential in China, where it already delivers to 95 percent of businesses. ''Within 20 years, the middle class in China will exceed 1 billion people," Wallace said. 'That's four times the entire U.S. population. Today," he added, "there are more Chinese people studying English than there are English speakers in the U.S." Amling then addressed the group, saying UPS launched its e-commerce site five years ago. The site gets 40 million hits per day. "We're at that critical intersection between the virtual and physical worlds," he said. "Today, things aren't going around the world in 80 days; they are going around the world in 30 seconds." UPS sees itself as playing a critical role in helping companies manage their supply chains efficiently. The company tracks each package through 250 'data elements' as it ventures around the globe, allOwing customers to track exactly where things are and when they should arrive. Its systems also he.lp facilitate customs clearance - saving time and money for its cl ients. Amling termed www.ups.com a 'work site,' not a Web site, saying that people "come here to get things done." The site gets 3.5 million online tracking requests per day. In addition to serving business clients, UPS now delivers 50 percent of all goods and services bought over the Internet. It provides UPS Internet Shipping in 34 countries, including an online account set-up option. Saying "returns can put you out of business," Amling told how UPS has pioneered an online return program that costs about ten cents per transaction, compared to a average cost of $2.50 per transaction for telephonebased return programs. Wallace then told students that todar's managers must be proficient in four key areas: logistics, customer relations, technology, and culture. "Forget 6-to-6 and 6-to-C," he said. "B-to-Me is just around the corner." He stressed the importance of knowing the local culture, saying, "No matter how brilliant you are, no matter how many degrees you have, you won't succeed without cultur-smarts." • BY LINDSEY MICHAELS L.L. ©. 20 0. 1 Door femes & C~~, , Itic. AU Rights MONDAY, APRIL 30,. 2001 . . * • Hidden. gems . • Corporations : ·pay.to play· ; • The top foreign programs . . ... S.ctlon R p. 1 8 WWW.T-BIRD . EDU 54/2/2001 DEGREE PROGRAMS IN "'" SAO PAULO AND ASIA Thunderbird reaches out to executives in their home region BY GONZALO VALENZUElA '01 Sao Paulo, the industrial capital of Brazil, will play host to Thunderbird's next MIM for Executives Program that targets high-potential managers throughout the world. Already implemented in Taiwan, the program will bring the MIM to executives in Brazil this fall. was Chinese/Brazilian consultant Robert Wong. one of the most renowned headhunters in Brazil. Wong is the MERCOSUR regional managing director for Los Angeles, Ca.-based Korn/Ferry International, considered the number one headhunting company for executive level positions including CEOs, CFOs, and other senior level jobs. During his address Wong stressed the relevance of executive education for continuous professional advancement. The event resulted immediately in more than 60 requests for application materials. This groundbreaking initiative is part of the School's multi-local strategy to expand Thunderbird's global brand recognition and presence. "This program provides working executives in Brazil and other regions with a chance to earn a Thunderbird credential without giving up their job, without leaving their family for a long period of time and having to come into the United States," explained Dr. Roy Nelson is the academic director of the MIM in Sao Paulo program. The selection process for the MIM in Sao Paulo is more rigorous than that of the regular MIM offered in Glendale, particularly in terms of Frank Lloyd, Thunderbird's vice president of Executive Education. The School has tearned up with the American Chamber of Commerce (AMCHAM) in Sao Paulo to offer this degree to high potential executives in Brazil. AMCHAM is a privately funded, independent, non-profit association that brings together almost 4,000 companies and their nearly 10,000 representatives. "We are partners, we share the proceeds, and we are targeting their 4,000 member companies first before offering this program to anyone else, said Jussara Philippet, program director of Thunderbird's Exec. Ed." According to Lloyd, AMCHAM has a great deal of experience in promoting educational programs to their members and it will provide Thunderbird with valuable guidance in terms of which specific actions to take in order to successfully approach the Brazilian executive market. Another good reason for partnering with AMCHAM in Sao Paulo is the support of the organization's president, alumnus John Mein '70. "We want to prepare executives capable of performing in the global business environment and there is a strong need for professionals with international vision in Brazil," he said. Philippet explained that the MIM is reaching the Brazilian market at the perfect moment. "Brazil has a strong need for good education ... the country is finally coming out of a recession and they do need people with these skills," she said. "A lot of people leave Brazil to get executive education, especially to come to the United States, and I think having these courses at home will be a great advantage for them." The entire program is taught in English by Thunderbird faculty and it is based on Thunderbird's leading international business curriculum. So far, the MIM in Sao Paulo has generated a great response among local business people. Over 300 Brazilian executives attended the launch of the program in Sao Paulo in March. The keynote speaker at the event professional experience. The admission criteria require a minimum of eight years of full-time work experience, including three years in a managerial position. Moreover, applicants should be currently in a management position at or above midlevel, and they should meet the regular school requirements regarding GMAT and TOEFL scores. In order to help with marketing efforts in Brazil, Thunderbird has engaged local advertising and public relations agency Paulo Andreoli &. Associados, one of the leading PR companies in Brazil, which also works for large clients such as America Online, Ericsson, and Embraer. Several ads have been published in the business press and an extensive article about Thunderbird and the MIM in Sao Paulo was published in career-oriented magazine Voce. Other articles appeared in prestigious local publications such as Veja and Exame. The academic director for the MIM in Sao Paulo is associate professor Roy C. Nelson, Ph.D., who lived in Brazil while researching the computer and pharmaceutical industries and working for Pharmacia &. Upjohn. "The Thunderbird MIM for executives prepares participants to build successful international business careers," Nelson said. "Executives gain a widely respected international business credential and become part of Thunderbird's tightly-knit worldwide network of alumni." Nelson is a three-time recipient of the "Outstanding Professor in International Studies" award at Thunderbird and his publications include the book Industrialization and Political Affinity: Industrial Policy in Brazil, as well as numerous articles on Brazil and Latin America. Other members of Thunderbird's world-class faculty will be teaching the MIM in Sao Paulo. The MIM in Sao Paulo starts October 15, 2001, when the executives meet for the first of 10 six-day modules. Nine of those modules will take place in Sao Paulo, and one on the Glendale campus. Between each 54/2/2001 WWW.T- BIRD .EDU p. 1 9 THOUGHT I KNEW NEARLY EVERYTHING ABOUT INTERNATIONAL BUSINESS UNTIL I TO THUNDERBIRD'S MIM PROGRAM" - jERRYW.T. WANG p . 2 0 WWW.T-BIRD.EDU 54/2/2001 module students will have six weeks to continue with their daily jobs in addition to working in group projects as part of the e-Iearning component of the program. They wiIl tum in homework and review class materials online, in addition to using different school resources for their group projects, such as access to peer groups, chat rooms, and Thunderbird's International Business Information Centre (!BIC). ence and knowledge to not only grasp the occasional idea which may be of value, but they also possess the ability to discern between theory and application, between desire and determination. " The industries represented by executives in this class are computer, semiconductor, information systems, trade, distribution, manufacturing, engineering, and marketing. Tang explained that Thunderbird decided to implement this program in alliance with Taiwan-based Acer Group because it is one of the world's premier high-tech companies - which is precisely the focus of the program in Asia. Acer is a leading worldwide PC maker currently expanding into production of digital communication devices and e-commerce. This learning model has proven successful in Asia, where Thunderbird implemented the first regional MIM for Executives, in alliance with the Acer Group's Aspire Academy. Pauline Tang '90, the associate director of Executive Education responsible for the MIM for Executives in Asia, explained that one of the most valued aspects of the program is that executives have a chance to apply immediately what they have learned in class to their daily work. The first Thunderbird MIM class for execu- Frank Lloyd, vice president of Thunderbird's Executive Education Students attend classes at Acer's world class Aspire Academy facilities in Taipei, where Thunderbird faculty are flown in every six weeks to teach the different modules that lead to the MIM degree - which is actually conferred in Arizona. Some of those modules focus on global strategy, global marketing, e-business and supply chain management. The Academic Director of the MIM for Executives in Asia, tives in Asia includes seven vice presidents and CEOs, and four general managers from Hong Kong, Singapore and Taiwan. Every six weeks they meet in Taipei for their learning modules, which, they say, constitute enduring marks in their management careers and everlasting learning experiences. "An experienced international manager myself, I thought I knew nearly everything about international business until I came to Thunderbird's MIM program, which opened my eyes to a new world of skills I still need to know," said Jerry WT. Wang, Acer vice president. Faculty members are equally impressed by the MIM in Asia experience. Dr. Michael Moffett, who teaches Global Finance, termed the program both a terrific opportunity and a great responsibility. "Rarely, as an educator, do you have the ability to truly influence or impact individuals who are at the leading edge of their industry," he said. "The degree students in our MIM-Asia program are in many cases people in positions of great responsibility and leadership in their business units. They therefore possess a drive, which goes beyond that common among degree students; they are keen to acquire knowledge for what differences it can make in the competitiveness of their business units today and tomorrow." Moffett also said that these students "individually possess the experi- GLOBAL ISSUES 2001 Dr. Robert Moran, is a world renowned specialist in cross cultural communications. Moran received the "Outstanding Professor in International Studies" award at Thunderbird 13 times. His books have been translated into Mandarin, Thai, Korean, Japanese, Portuguese and French and are an industry standard. As the first Taiwan class graduates in December 2001 a second group is beginning - with an expected graduation date of May 2003. An MIM for executives in Europe will be launched shortly and based at the Thunderbird Europe, French-Geneva campus. "Even though our executives get to stay at home and work during most of their training, we plan on having students from each region meet once all programs are fully operational," Lloyd said. "For example, the Brazil class could have one of their modules in Taiwan, hosted by the Taiwanese participants. Or Brazil and Taiwan could go to Europe to join the European class for one of their modules." As a result, MIM for Executives Program participants will begin immediately experiencing the benefits of Thunderbird's famed worldwide alumni network. • EDITOR'S NOTE: Gonzalo Valenzuela '01 of Chile speaks three languages, was the managing editor of DasTor, and interned with Global Sources. Change Within Your iIiI1'j1und.~rbird for this exclusive 2 1/2 :.iJI~rann. Designed specifically for just prior to the Reunion 2007 we.ekE~nd uses applied learning, global case [se.ssicms. Learn to ignite change in chain innovation, service rnmlun;'cation and finance. All taught here on the Thunderbird COInptlli www.t-bird.edu/alumni/only (602) 978-7635 or (602) 978-7812 email@example.com or email@example.com 54/2/2001 WWW.T- BIRD.EDU p.21 Alumni 'Brand Managers' Coach Their Fellow Thunderbirds "W're on your side; we want you in our companies. That's why we're all here." That's why five alumni, working as brand managers for General Mills, Proctor & Gamble, Nestle and Unilever's home and personal care and Bestfoods divisions, said they spent March 16th at Thunderbird. During their visit, they conducted mock interviews with students and provided feedback regarding how well Thunderbird had prepared them for their jobs - as well as feedback on the students' mock interviews. The five then participated in a 90-minute brand management panel. Kay Keck, Thunderbird's vice president for Professional and Career Development, moderated the discussion, posing questions before opening the microphone. To many, Keck's question regarding 'essential skills' evoked the most surprising answers from panelists. That's because all five panelists talked about their need for good financial skills. "You have to have a broad base of all functional skills - budgeting. forecasting. working with an ad agency, strategic planning and contract review," said Adriana Silva '00, a brand manager at Unilever. She likened brand management to running your own business, stressing the ability to 'multi-task: "The marketing side of what I do is actually much less than the business financial side," added Kristine Bast '98, who works for General Mills. "You need to understand how what you do impacts your bottom line." Karl Krawitt '99, who manages the Friskee's pet food brand for Nestle, echoed that sentiment. "[ have to calculate RO[ [return on investment[ and break-even all day long." he said, "because shareholders don't care about creativity; they care about your bottom line." Krawitt said he also uses skills he learned in Thunderbird's Business Intelligence class constantly. "I never thought I'd ever use what I learned in Managerial Accounting. but I use it every day," said Gail Gibford '00, who also works for Unilever. The truth is that there's no class at Thunderbird that you won't use somehow or somewhere as a brand manager." Katherine Bast '98, who is Kristine's twin and a brand manager at Proctor & Gamble, added, "[ have to know exactly what [ shipped yesterday, as well as what [ shipped to major clients like Wal-Mart." She - and all other panelists - also talked about the power key distributors now hold over manufacturers. "People think of brand management as consumer sales but the bottom line is that I'm selling to companies like Wal-Mart. Yes, customers remove the product from its shelves, but my sales force has to convince each store to put it there. This is seIling B-to-B." "I had a situation once where Wal-Mart didn't like my new packaging and refused to carry it," said Krawitt. "That resu lted in a $12 million loss per week until we could get it changed." The panelists also spent time discussing their communal need for good crisis management, analysis, persuasion, and project management skills before taking student questions, then adjourning to a reception in the World Business Atrium. • - BY LINDSEY MICHAELS ,1tE TRUTH IS THAT THERE'S NO CLASS AT THUNDERBIRD THAT YOU WON'T USE SOMEHOW OR SOMEWHERE AS A BRAND MANAGER:' -GAIL GIBFORD '00 THE MIMjMBA DEBATE By DR. JOHN SEYBOLT SENIOR VICE PRESIDENT, ACADEMIC AFFAIRS With the start of the Fall 2001 trimester, Thunderbird has entered a new era. The institution has never been static. It evolved from the American Institute of Foreign Trade - offering a Bachelor of Foreign Trade (BFf) degree when founded in 1946 - to the global institution it is today. But perhaps no period of its evolution has been as dramatic as the past nine to twelve months. Thunderbird enters this era by inaugurating its one-year MBA program - making it important for the School to define the differences and the similarities between that degree and our traditional MIM program. Let's start with what the two degrees have in common: • Both are graduate business degrees; • Both prepare the student for more advanced business careers with companies that do business on at least a multinational, if not fully global, scale; • Both indude a core curriculum of basic business disciplines, international studies and cross-cultural communication courses; • Both allow for deeper study of specific business specializations; • Both are taught in a thoroughly global context and environment. But beyond those similarities, each does offer its own distinct set of advantages. The MIM curriculum is designed to prepare the student to do business in or with a specific region of the world. Thunderbird's 54/2/2001 tradition is built around preparing ilS students to take their careers oUlSide their home country. The non-English language requirement, the required depth of regional studies, and the specializations all focus on preparing someone to go somewhere else in the world successfully. Thunderbird's strength has historically been in providing ilS studenlS with the skills they needed to enter a different culture, to hit the ground running, and to ensure a business understands the risks and opportunities it faces as it enters that market. As the comprehensive Thunderbird experience, the MLM offers both a solid graduate business education and extensive preparation for possible foreign assignmenlS. The MIM also makes available, in addition to the traditional business specializations of marketing, finance and management, a specialization specifically designed for those interested in pursuing a career in emerging markets, be it in a corporate, governmental or NGO setting. The MIM is also well suited for the individual with a little less experience in the business world and/or desiring more time to build deeper language and cultural knowledge. But in today's business world, global careers don't necessarily mean leaving one's home country on a long-term basis. The demand from corporations for the expatriate businessperson, while still present, has shrunk. And it is those employer demands that shape the expectations and demands of the graduate business student. WWW.T- BIRD .E DU To respond to these changes, Thunderbird has decided to offer a one-year MBA in addition to continuing to offer the MIM. The MBA curriculum at Thunderbird will have a much deeper level of international studies and cross-cultural communication courses than the MBA offered by any other U.S. business school and at least equal to that offered at any non-U.S. school. It will be a uniquely Thunderbird program, with a global context and multi-disciplinary approach woven throughout each course - both the core curriculum of the Thunderbird MBA and the courses included in each area of specialization. The Thunderbird MBA curriculum, which has been designed by a team led by professors Caren Siehl and Bill Youngdah(;Uso includes a required three-hour interim course offered between trimesters. Thunderbird makes a wide range of such courses available, most of which are offered oUlSide the U.S. A non-U.S. interim course is strongly recommended for Thunderbird MBA studenlS. The Thunderbird MBA is designed specifically for the individual with substantial business experience and with existing linguistic skills they feel fit the needs of their projected career path. The core motivation for most individuals pursuing a graduate business degree is to increase their career opportunities. In deciding which Thunderbird program to pursue, each student should evaluate what skills they need to obtain their career and per-p . 2 3 sonal goals. Laid out as a comparative chart, the graduates of the two programs would guarantee prospective employers the following: THUNDERBIRD MIM • Core global business skills • Guaranteed level of post-undergraduate experience • Non-English language/cultural knowledge • Regional Business Environment depth • Four specialization options THUNDERBIRD MBA • Core global business skills • Guaranteed level of business experience • Solid cross-cultural and global business foundation • Three specialization options Regardless of which program studenlS pursue, each will share a core experience that is the heart and soul of Thunderbird. It starts within a dynamic multi-cultural environment. With more than 70 nations represented in the full-time student body, and an almost equally global faculty, it is a given that every class, every project team, every social event at Thunderbird has a global focus. Thunderbird students don't just study cross-cultural communication; they live it virtually every hour of every day. Global business issues aren't relegated to a handful of courses or the study of an international case or two, they are part of every problem and every class at Thunderbird. • p. 2 4 WWW.T- BIRD. EDU WINTERIMS AROUND THE WORLD BY EMILY GIACOMINI '01 From Cape Town to Santiago, from Paris to Havana, from San Diego to New York City, adventurous Thunderbirds take flight throughout the world each August and January. Winterims and Interims are popular two- and three-week courses that explore specific business, social and regional topics. They allow students to gain insight from local alumni, government officials and corporate leaders in both business and social settings - often while improving their foreign language skills. Many students even interview with companies and receive internship or full-time job offers while traveling. For many applicants, Winterims playa huge role in swaying them toward Thunderbird, since they are a feature many other leading graduate business programs simply do not offer. At least they helped sway facturing Plant and Nando's, a local restaurant chain. At BMW, cars were being assembled to customer specifications, demonstrating the plant's flexibility even as far as installing rightversus left-hand drive. BMW cannot manufacture vehides fast enough to meet demand, both in South Africa and internationally, and many of its Rosslyn plant cars are shipped abroad. A short stop at a BMW motorcyde dealership rounded out our understanding of BMW's strategy in South Africa. The immaculate gardens and enormous facilities that make up the BMW campus, as well as the spread of cheese, crackers, fruit, cakes, coffee, and tea that were offered to plant visitors gave us the flavor of what a successful multinational corporation in South Africa might look like. In addition, we met with leaders of a non-profit organization to me. These programs present not only a beneficial hands-on experience for the hundreds of students they attract each year, as well as continued learning for the professors who dedicate hours to planning and conducting them, but they also represent an extra 'value-add' to the many companies that recruit at Thunderbird specifi- "• •• MY TIME IN get another perspective on life and issues in South Africa. Conquest for Life aims to reach the community of Westbury, located outside Johannesburg. In Westbury, three major problems SOUTH AFRICA HAS MADE ME EAGER TO FOLLOW ITS CURRENT EVENTS AND INVEST IN ITS GROWTH:' cally because its students possess the type of indepth business culture and language skills that make them successful world business leaders. Contrary to popular belief, Winterims and Interims involve way too much work to be considered holidays! On Dr. Femi Babarinde's South Africa Winterim, which I attended, students earned three credit hours for a program that induded a week in Cape Town, two weeks in Johannesburg, and completion of a 15 to 50- page paper analyzing the issues and industries we visited. The program began with two thorough lectures on the continent of Africa and the Republic of South Africa, during which Babarinde covered the region's history, population, geography, religion, political situation, social customs, languages, education system, status of business and other factors. Students then visited sites as diverse as BMW's Rosslyn Manu-are gangster violence, -EMILY GIACOMINI drug abuse, and unemployment. Sponsored by ASHOKA of Washington D.C., Conquest for Life runs a variety of programs aimed at helping citizens of Westbury learn skills which will enable them to get jobs and earn money to support their families. The organization offers programs in computer training, and has an after-school program for children who otherwise would be wandering the streets. Its AIDS prevention programs attempt to reduce the drastic rate at which the virus is spreading in South Africa. Glen Styn, Conquest for Life director, explained that 45 percent of those who had been through the computer and office skills program by January 2001 had jobs, 30 percent were students and 25 percent were at home. Even with the necessary skills, some program graduates have a hard time finding work because most jobs are in the city 45 minutes away. Westbury resi- 54 / 2/2001 dents simply cannot afford transportation. We were familiar with this problem from our visit to the townships, and did actually pass many people walking miles from the nearest grocery stores carrying their goods on their heads or balanced in their arms to save the money a minivan taxi would have charged. Personally, I most valued a visit to a winery just outside Cape Town. Spier Estates made a lasting impression on me because of the unique story behind it. Owner Dick ·Enthoven, a native South African, returned from Britain in 1996 to invest in his homeland, convinced that involvement and support of local enterprise was the only way in which South Africa could develop. He fulfills a 'triple bottom line' which reflects his desire to contribute to 1) positive management of environmental issues 2) job creation for people within 5 kilometers of the estate, and 3) profit. What most struck me was Spier's commitment to the local community. He hires all hotel employees from within 5km then trains them from the ground up to run a first-dass service organization. Everything possible, from bed covers to hand-woven baskets and fresh vegetables, is purchased locally. I firmly believe that the dedication of more individuals such as Enthoven would do much to further progress in South Africa, as well as to build the confidence of locals who have much to add to the local economy. At the same time, it helps them raise their skill levels so they can better provide for their families. Robben Island, where Nelson Mandela had been a political prisoner, was another meaningful visit. Forced to dig rock by hand in a limestone quarry, prisoners frequently suffered severe eye damage and blindness from the dust emanating from the rock. Standing in the quarry at the entrance to a small cave which had served as the prisoners' break room, lunchroom, and bathroom, and then later holding onto the bars of Mandela's tiny cell to peer inside, made the reality of Robben Island hit home for me. A lesson that will remain with me for life is the forgiveness that Mandela expressed and continues to live out in not seeking retribution against his former captors and against the apartheid regime that controlled South Africa and its people for so long. I believe his message of reconciliation was adopted by the country at large, and greatly contributed to the peaceful replacement of the Apartheid regime by the African National Congress in the 1994 free elections. Three days in Kruger National Park afforded us a little break from the hectic pace of visits to companies, embassies, and nonprofit groups. We perched on the seats of the vans for hours at a time, eyes glued to the windows to spot 5 4 / 2/2 001 WWW.T- B I RD . EDU p. 25 p . 2 6 impala, warthogs, and even the more rare lions and hippopotamus. As a group we discussed the implications of eco-tourism and how the park could continue to offer tourists a d1ance to see wildlife at dose range while still protecting the animals in their natural habitat. The impact of my three weeks in South Africa wi ll remain with me forever. I was shocked and dismayed by the estimates of managers we met who put unemployment at 50 percent and AIDS infection as high as 30 percent. A repon by the World Health Organization says GNP growth is diminished by .3- .4 percent a year, meaning a total of US$22 billion or 17 percent of the country's economy. We analyzed some politicians' stances on the issues as well as the feasibility of multinational corporations stepping in to help. In spite of the many mallenges South Africa faces, I believe the Rainbow Nation is indeed a land of great opponunity. Although I will not be working in South Africa or with it directly, my time there has made me eager to follow its current events and even invest in its growth in the future, should I have the mance. Professor Alfonso Sapia-Bosm's Winterim in Latin America was also a hit with studen ts, who went to Santiago, Chil e, Buenos Aires, Argentina, and Lima, Peru. A former Central In telligence Agency agent with 30 years of experience in Latin America, Sapia-Bosm brought unique perspectives to his program. "Because ofThunderbird's reputation, we also had access to people and companies that others cannot access," he said. Peruvian President Alejandro Toledo was one sum person. Sapia-Bosm was able to arrange a private 11/2 hour visit for his students with Toledo after meeting him at last year's Americas Conference, whim Thunderbird cosponsors with The Miami Herald . Other activities induded visits to a pharmaceutical company, a fruit company, a vintner, banks, consulting firms, pension managers, ponfolio managers, a business magazine, IT companies, phone companies, a mamber of commerce, a copper company, a mining company, and a grocery chain. According to recent graduate Frederic d'Auber '01 , one major reason for going on incountry Winterims is gaining "some cred ibility in the eyes of future employers." D'Auber, who is from France, accepted a job offer with BristolMyers Squibb, after the company promised to assign him to Argentina within the year. Thunderbird's network of 32,000 alumni in more than 135 countries often play an active role in Winterims and Interims. They routinely speak to visiting students, give them insight into how business really transpires in their country and industry, and arrange for them to meet key people within their companies. WWW. T - BIRD . EDU According to Sapia-Bosch, Thunderbird's Winterim/lnterim programs are "an excellent method for getting to know something about people, countri es, possibl e employment opportuniti es, etc. - and it is all done in about three weeks. If you need to learn someth ing about a country quickly, this is about the most efficient, effective method." Silicon Valley saw 25 T-birds visiting companies across the ted1l1010gy spectrum: Sun, Lucent, jamCracker, Xtime, Garage.com, Mauomedia, the Silicon Valley Bank and eBay. Student Mimael Rubel '01 described this unique Winterim as a "traveling dassroom where the students were able to experience various corporate environments and to examine the viability of their business models." The session was sponsored by the e2v Club and led by students Brett Grossman '01 and Matthew Fleming '01 under the guidance of Dr. Mimael Woolvenon. Dr. Carmen Vega-Carney, who teames Spanish Business Communications, took her 5th group of students to Cuba this January. In addition to experiencing daily life in Cuba and seeing people at work, patticipants are taught by top 54 /2/2 001 Cuban professors and meet with students at their university. According to Camey, students are always surprised by what they find. "First, they are struck by Cuba's beauty. They expect to see the poveny that is prevalent in other Latin American countries, and Cuba is not that poor. Second, they are held spellbound by the professors' knowledge and openness." David Feige '02, who speaks Spanish and English and is studying Russian said, "I was very impressed with pretty mum all of the professors. All were Cuban nationals, so I expected to get the party line. Instead, we got well-rounded presentations and open discussions on Cuba's government, and its international relations policies. I agreed with some, disagreed with others, but was surprised at how knowledgeable the professors were regarding what was occurring outside of their country. One of the professors who spoke with us had just won a major economics prize." Professor J. Scott Mathews led his fifth Winterim in Asia: Japan, China, & India. His course focused on the automotive industry and students visited the likes of Yamaha, Mazda, GM, TOP LEFT Peruvian President Alejandro Toledo met privately with T-birds. BOTTOM LEFT While Apartheid tried to destroy the roots and culture of South Africans, people today are working to reclaim their identities. TOP Emily Giacomini '01, who wrote this article, will be forever changed by what she experienced in South Africa. ABOVE Dr. Carmen Vega-Carney (left) celebrates with students during their last night in Cuba. OPPOSITE PAGE Europe's High Tech Marketplace program participants visited leading computer, engineering and telecommunications firms in Geneva and southern France. 5 4 / 2 / 2 001 Honeywell, Shanghai Eaton Engine Components, Toyota, and Ford . Cultural visi ts induded the Isukushima Shrine at Miyajima Peace Park at Hiroshima, the 'Ancient Gardens' in Suzhou, silk and jade manufacturers, the Horticultural Center in Bangalore, and the beaches at Chennai. Dr. Mathews said, "This dass has a proven uack record of getting students jobs. That is why I do it." This year, student Eivind Olrud '01 got an internship with Rolls Royce in Germany. Mathews also points out the inexpensiveness of the program, "We went to Japan, China and India for three weeks. We uaveled on some of the best airlines in the world. We stayed in first dass hotels .. . we ate great food and had a lot of fun - and it only cost about $4,000 plus tuition. There is no way a casual tourist could have done it this cheaply." Winterim in Paris focused on helping students develop in-depth business cultural practice and language ski lls. Led each year by Dr. Salvatore Federico '99 (EMIM), a Paris native who holds both the equivalent of an MBA from the Sorbonne and a Thunderbird MIM, the program goes far beyond French business terminology WWW.T-B IR D . EDU uaining. It is a case-based business course where students analyze French business practices on a deparunent-by-department basis. Taught entirely in French, the course prepares students to work with French companies, subsidiaries and key dients, and also provides valuable insight into how to sell into the French market. Site visits induded la Bourse (the Paris stock exchange), Publicis, Elf Aquitaine and Peugeot. The immersion program also afforded students the chance to gain co nfidence in doing research and expressing themselves in French, taking them inside French businesses, restaurants and museums - ultimately enabling them to appreciate how French language and culture are inexuicably intertwined with French business. Advanced Business Language and Spanish Level III are both taught in Mexico and led by Professor Dennis Corrigan. Level III students faced a rigorous language program reinforced by evening homework. Advanced students spent a large part of their day working for local businesses. The group spent two days in Mexico City, visited numerous museums and sites of historical interest, and engaged in conversations in Spanish at the local pubs and dance dubs, as well as on weekend excursions. "The highlight of my experience was the easy rapport that we developed with the well-informed guides who led us on walking tours of the city of Puebla each afternoon; said student Matthew Rossini 'Ol. The Washington DC Winterim, directed by Professors Roe Goddard and Linda Wetzel. ind uded visits to the State Deparunent, several think tanks, a few NGO's, and governmental consultants. This particular Winterim had a twist, in that blocks of time were scheduled for students to work on independent research papers requiring at least two interviews with Washington officials. Student Jeffrey DeWolf '01 remarked on the valueadd of learning how the American lobby machinery works: "U nderstanding how to influence policy ... is an indispensable skill." A first-time offering, Europe's High Tech Marketplace gave students a feel for the uends of European developments in the high tech arena. Led by Dr. David Hall, the course took students inside Eurocopter, Cambridge Technology Partn ers, STMicroelecuo nics, GemPlus, the CEA nudear p . 2 7 facility, and other high tech and non-profit leaders in Geneva, Grenoble, Lyon, Sophia-Antipolis and Aix. Nicole Affeldt '01 a post MBA student specializing in technology management and e-commerce, termed the program "exuemely useful as it provided the opportunity to directly compare th e challenges and opportunities that a high technology company in France faces versus those that a similar company faces here in the U.S. " She said the program, "certainly demonstrated that varying poli tical and economic factors highly impact the business models of high technology, and modifications have to be made to ensure success." The Wall Sueet Winterim found 24 financially- oriented T-birds happily hosted by George Fugelsang '63, then CEO of Dresdner Kleinwort Wasserstein North America - who graciously turns over the boardroom at Dresdner's Wall Sueet office to program participants each year. During the program, which is directed by Drs. Mark Griffiths and Phil Drake, students work through all phases of a typ ical firm 's financial cyde, meeting with experts involved in venture capital, private equity, IPOs, project finance, capital markets, equity research, derivatives, fund management, e-commerce, risk management, bankruptcy, mergers and acquisitions, private banking, and institutional sales, as well as investor relations for publidy-uaded companies. The students also make connections with big players in the indusuy, such as Fugelsang, who addressed the group. Informal dlats with other alumni led to further contacts and internship offers, such as the one student Jamie Patterson '01 was able to arrange with JP Morgan on Wall Street this summer. "Winterim provides a great opportunity for us to show off some of Thunderbird's best finance students to the invesunent banks and fi nancial institutions," said Lindsey Korell. the managing director of Thunderbird's MBA program who uavels with the Wall Sueet group. "Not only are banks impressed with our students, they are also impressed with the fact that the School has made it a priority to create an entire dass - not just a 72 hour jaunt - to Wall Sueet." Thunderbird also offers Interim programs such as Dr. Winter ie's travel course, which examines supply chain management practices in Thailand, Vietnam, and Singapore. • EDITOR'S OTE Emily Giacomini '01 was a 'dual degree' student, earning degrees from Thunderbird and Arizona State University. She is a purchas ing manager with Proctor & Gamble in Cincinnati, Ohio, where she did an internship last year: Alumni and the public can register for WlI1tenms on a space-available baSIS. Contact Thunderbird's registrar James (Dusty) Scott '96 at email@example.com or at (602) 978-7784. p. 2 8 EYES AROUND 54 /2/2 001 THE WORLD RESOURCES THUNDERBIRD Alumni use Thunderbird programs and services to propel careers In May, another class of Thunder birds (myself included) graduated and rejoined the world, adding to the growing number of Thunder bird alumni worldwide. For most of us, being part of the Thunderbird alumni community brings thoughts of lifetime email, My Thunderbird, and First Tuesdays - and the occasional funding drive. What many may nOl realize, however, is that Thunderbird provides other valuable professional resources to propel alumni all t11roughout their lives. Resources Tll!Inderbird highlights the wide variety of tools Thunderbird makes available to today's global managers. As a student, you may have benefited from programs such as in-class or other consulting projects and recruitment. However, there are many other Thunderbird-provided resources that can give you - and your companies - an edge. We're talking everything from on line market research to visibility and sponsorship options. CORPORATE RECRUITING & INTERNSHIPS One of the most-used resources is the Career Management Center (CMC), which manages campus recruitment efforts. More than 32,000 Thunderbirds work in organizations worldwide, with more joining them every day. At the same time, finding and retaining high-quality employees is a major concem for firms. Luckily, as a Thunderbird alumnus, you know of a pool of potential applicants who can bring their international experience and perspective - as well as a solid grounding in business principles - to your company. Your first contact for reo·uiting should be the Career Management Center. Companies looking for experienced, project-oriented interns or full-time personnel can post job openings, view online resumes, and attend recruitment events. Raimonds Dzelme, '99, a strategy associate, explained why Eli Lilly recruits on campus every year: "Multinationals like Lilly need talented individuals with a global perspective, so it's important that we hire students who are culturally sensitive, have diverse backgrounds, and are able to easily adapt to a constantly changing environment. We know we can find that at Thunderbird, so it makes recruiting easier for us." The CMC's experience in helping companies find time recruits is also reflected by the extensive internship program. Says Dzelme, "Lilly has a large summer internship program because it is the best way for our company to identify top talent in a rea l world, valu eadded project as well as for the interns to determine whether or not this is a place where they would like to build their career. This summer, we had six Thunderbird interns." BY JOSEPH I E GILMORE '01 Companies that use Thunderbird interns traditionally extend full-time job offers to 40 percent of them. As alumni, we can also post jobs targeted to even more experienced alumni with CMC We can also seek out worldwide jobs online by clicking on the Global Job Connections link that's located on the home page of My Thunderbird as well as by searching the more informal Job Exchange discussion board. EXECUTIVE EDUCATION Once companies find the right employees, they need to ensure that they are prepared to meet the chal lenges of a fast-changing global marketplace. Thunderbird's Executive Education programs provide managers the opportunity to learn solid business practices and cross-cultural skills while creating lasting re lationships with faculty and other executives. For managers who are looking to take on new responsibi lities, perhaps internationally, Thunderbird's globally focused curriculum is the perfect choice. Trad itional degree or certificate programs at Thunderbird include the Executive MIM and the Global Leadership Certificate Program, which take place in Glendale. International programs in Mexico and Peru (MIMLA), Sao Paulo, Brazil (MIM for Executives), and Taiwan (Global Executive Development Series) extend the MIM-style programs to the Latin American and Asian markets. A Europe-based MIM for Executives program will soon be launched at the Thunderbi rd Europe, French-Geneva Center. In addition to these management programs, Exec Ed runs a series of openenrollment courses, called The Global Management Series. These are short seminars, ranging from two days to one week, that take a strategic and global look at core business ski lls such as finance, marketing. negotiations and entrepreneurship. Some of the courses cur- 54/2 / 2001 rently scheduled for the fall indude Mergers and Acquisitions, Global E-Business Leadership, Merging Strategy with Action, and Managing Cross-Cultural Relationships. Thunderbird also offers telecommunications and oil & gas industry- specific programs that are open to the public. One of the most unique aspects of Thunderbird's Exec Ed programs is the range of customized options available. Custom programs can be short three-day workshops or longterm training - at the company's site or on campus. One particularly successful program has been the partnership with Ericsson; others involved in Thunderbird's custom education have induded such diverse organizations as ExxonMobil, PfIZer, and Vitro Corporativo. According to Marty O'Toole '96, senior program director for Exec Ed.: "Often times, the original custom programs will lead to other offerings. With Ericsson, in addition to its custom two-week program, Thunderbird has also been called upon to provide custom programs in the areas of mergers and acquisitions, negotiations, and influencing." Custom programs aren't limited to large, single organizations. The Thunderbird [nternational Consortia are three different groups of eight to ten non-competing companies. These companies work with Thunderbird's faculty and staff to develop intensive training sessions that address common business challenges each face while managing in a new global economy. Several times a year, each company sends five to 10 managers to Glendale for two weeks to attend lectures, analyze case studies, and work on targeted projects. The Consortia offer a unique opportunity for participants to network with other managers, and for the companies to develop long-term problem-solving ties with each other, as well as with Thunderbird. Finally, international managers need strong cross culture and communication skills. For some, that means sharpening English skills; for others, it means becoming fluent in the language and culture of key partners or dients. Thunderbird's Language and Culture Center can help develop a oneon- one or small group program for each individual or firm. CORPORATE CONSULTING & RESEARCH Even with the right staff and training. not all projects can be done in-house. Thunderbird's Corporate Consulting program is a cost-effective way to access the skills of top-flight business students from throughout the world. Those student/ faculty teams work on complex, sophisticated projects, such as entry into a new geographic market. where their outside eye perspective or first-hand country or function expertise prove invaluable. Students are selected from a pool of applicants and projects can be short- or long-term. Thunderbird also offers a variety of research tools to support your projects. The Thunderbird Case Series illustrates business problems and practices that can be used for education. To keep up with the most current practices and themes in global management, the Thunderbird [nternational Business Review is also a great value for alumni. But, perhaps the most powerful tool for research is the Business Information Service (BIS) offered by Thunderbird's International Business Information Centre ([B[C). B[S can quickly and inexpensively provide a wide range of extremely comprehensive business or market intelligence data. Research options from the B[S range from the flat rate WWW.T- BIRD. EDU Company Background and Business Abroad Packages to customized research at a nominal hourly rate. The [BIC's skilled research staff can help find information for such areas as domestic and international marketing. social customs and cultures, economics, laws, and much, much more. Once companies discover the value of B[S, they often return over and over again to use its services. Chris Merker '00, Principal at eVe Global Group is one such repeat customer. "[ know exactly what B[S has, having used the systems for two years. Also, cost is a consideration. As an alum, I get a great discount. It would cost three times the amount to use a local service here in New York. Why would [ pay more for data [ know [ can get rapidly for less?" CORPORATE VISIBILITY & SPONSORSHIP The right employees, the right products - now you need to get the message out. Corporate visibility and sponsorship opportunities indude everything from providing corporate scholarships, to helping sponsor a Thunderbird Global Business Forum, to volunteering as a campus speaker, to underwriting part of the cost ofWinterim travel trips, to advertising in 'Thunderbird magazine. By getting involved in these programs, companies can target their messages directly to future and current global leaders, and others who read these publications and attend Thunderbird's worldwide events. "Thunderbird is a consistent source of talent for Citicorp's Global Management Associate programs," said Karen Handwerker, of the Citigroup College Relations group. "By making it possible for Thunderbird to attract top students, regardless of financial need, Citigroup is able to contribute to the Thunderbird community while helping its businesses recruit and retain the best and the brightest." While this artide certainly does not cover all of the ways in which Resources 'Thunderbird can add lifelong value to your career and life, it does hopefully show you a few. You can learn more by checking out the Corporate Services section of Thunderbird's Web site at www.t-bird.edu/corporateservices, or by contacting Paul Elstone, asst. vice president of Corporate and Foundation Relations at elstonep@tbird. edu. or (602) 978-7406, • EDITOR'S NOTE: Josephine Gilmore '01 was a post-MBA student, technology consultant, and full scholarship recipient. She speaks fluent French, spent a trimester at the Thunderbird Europe, French-Geneva Center, and will pursue a Ph.D - most probably at Harvard, Wharton or [NSEAD. p. 2 9 p. 3 0 LETTER FROM 54 / 2 / 2001 ELSEWHERE FAMILY TIES Four families. Sixteen T-bird graduates. One global connection. By MELISSA CRYTZER FRY Family. It's a familiar term at Thunderbird where we consider ourselves - despite nationality, gender or race -members of one global family. There is also another kind of family drawn to Thunderbird. They' re blood relatives who find their Thunderbird experience so exceptional that they recommend it to their siblings. • The Alcazars, Campanas, and IohnsonjOlsons are just a few Thunderbird families who have passed along the good news to their sib-lings - that Thunderbird is a great place for internationally-minded students serious about learning global business. They come from different countries, hold different beliefs, and even walked away with different Thunderbird experiences - but they all agree that Thunderbird offers a truly international environment with an unparalleled alumni network. THE ALCAZARS Antonio '93 was the first of four Alcazars to attend Thunderbird, and he says it didn't take much convinci ng for his siblings to follow in his ANTONIO, ROCIO, foo tsteps. "In our fa mily, actions spoke louder VICTOR, LOURDES than words as our younger siblings noti ced how we referred to our Thunderbird experience when (LATIN AMERICA) tal king with others - and by the jobs we got upon graduatio n," he explained. "Knowing how analytical my brother is, I was pretty confident that he had completed extensive school research befo re making his own choice," sa id Rocio '95, who wanted to specialize in fin ance with an internatio nal approach. She credits Thunderbird fo r helping her achieve that goa l, and was hired by Cargill, an international marketer, processor and di stributor of agricultural, food, fi nancial and industrial products. Rocio currently serves as the program manager for Latin Ameri can procurement in Buenos Aires, Argentina. "The greatest thing about Thunderbi rd is that you rea lly become a ci tizen of the world," she said. "In the fi ve years after graduating from Thunderbi rd, I have lived in three countries and have traveled on busi ness to another 10." Victor '97, distribu tion sales manager for Motorola Semiconductors in the Caribbean, Central America and the Andean Pact countries, was immersed in Thunderbird's culture before he ever enrolled. As Antonio's 54/2 / 2001 WWW.T- BIRD . EDU p. 31 roommate at Counuy Gables Apartments, he was exposed to get-togethers at the Pub, athletic events and Thunderbird's rigorous academic program. "Because the MIM proved to be such a great launch board for my siblings, I wanted to join the program too," Victor explained. The most recent Alcazar graduate, Lourdes '00, financial analyst for Mervyn's Headquarters in Francisco Bay area, and says that Thunderbird was a for her after hearing T-bird this' and T-bird that' for almost a decade before enrolling. "I guess you could say 1 was a T-bird at heart way before actually making my way to Glendale," she added. "Learning to understand and appreciate the similarities, differences and the slight nuances that exist between the many cultures present at Thunderbird has taught me how to live and thrive in the business world." Like all dose-knit families, the Alcazars manage to keep in touch despite the distance - visiting at their parents' home in Tampico, Mexico during the holidays. They aJso keep in touch with their extended Monica, Gabriele, Roberto and Franco Campana general manager, in charge of developing a new brand of power tools geared toward the Latin American consumer. Franco, an agronomy undergraduate major from Texas A&M, and now the vice president of sales for $eminis, Inc., the world's largest developer and producer of vegetable seeds, says that not only did he learn of Thunderbird from his brother - who began the program six months before him - but also from T-bird alumni he knew in Venezuela. The choice to attend, he says, was dear since Thunderbird was highlighted in Thunderbird family. "The Thunderbird network really does act like a globaJ family," said Antonio, who caJls himself a 'recent casualty of the dot com bust~ His company, Venta.com, a B-to-B information technology liquidation site, dosed its operations this year. "Alumni have been very responsive when I contact them regarding employment options," he explained. Confident of the skills that he has gained through his schooling and throughout his career, the former World Bank (Romania) employee and interna" Thunderbird is. the place ... where I have met the most people from different religions, countries and backgrounds ... I have T-bird friends in every country I visit." -GABRIELE CAMPANA numerous MBA publications and magazines. "I am responsible for NAFfA sales, induding Central America and the Caribbean," said Franco. "Thunderbird gave me an understanding of international business and provided a sound base for my career." Monica and Roberto, who were raised in Italy, but bom in Venezuela where brothers Gabriele and Franco grew up, were exposed to various cultures and communities early in life. Such culturaJ immersion, in addition to tional project manager looks forward to his next exciting career oppor-tunity. While fourT-bird graduates from one family is indeed impressive, the family predicts that Lourdes may not be the last. According to Victor, Guillermo - the youngest sibling - just might be the fifth A1acazar to join Thunderbird's growing family. THE CAMPANAS GABRIELE, FRANCO, MONICA, ROBERTO (EUROPE) How did this ItaJian family find their way to Thunderbird from their hometowns in Rome, ItaJy and Caracas, Venezuela? While Gabriele and Franco - both from the dass of '85 - were the first to enroll at Thunderbird more than a decade before their younger sister, Monica '96, they certainly weren't the last. Gabriele credits a dassmate from Texas A&M for introducing him to Thunderbird, which ultimately led to an international career with Miami-based Trans World Marketing. He serves as a the influence of older T-bird siblings, made Thunderbird the best option for their international pursuits. Monica, like many T-birds with entrepreneurial instinct, used her business background to found a new business, SoulmateZone.com, a highly interactive and multilinguaJ matchmaking site for single professionaJs on virtually every continent. Before branching off on her own, she was a project director for a Miami-based marketing research company speciaJizing in multi-counuy and customized primary research. Her last few months as project director involved assignments with Internet companies - a catalyst for forming her company, she says. Before founding SoulmateZone.com with T-bird Haim Badash '95, she also served as vice president of business development for a new start-up in Miami. Youngest brother Roberto '01 is about to graduate after being an active T-bird student specializing in marketing and e-business. A Foundations leader and a concert pianist for Global Sounds, his influence can be felt around the campus, where he is an instructor for the Dance Club and served on the School's student philanthropy committee. p . 3 2 WWW.T - BIRD . EDU 5 4 /2/ 2001 Cheryl Johnson, Tara Olson, Deborah Johnson and 7l-acy Olson THE OLSONS AND THE JOHNSONS TRACY & TARA OLSON, CHERYL & DEBORAH JOHNSON (NORTH AMERICA) While these sisters had much to do with influencing o ne another's decision to attend Thunderbird, their parents might have played an even larger role_ After taking an international business management course during her senior year of undergraduate SdlOOL Tracy Olson '91 was in search of an international master's program. When her mother, then Barbara Olson, began her position as Thunderbird's Internship Director, the decision became obvious. At the same time, Cheryl Johnson '91 - daughter of Thunderbird's distinguished professor of global entrepreneurship, Dr. Paul Johnson - was enrolled at Thunderbird. "My father was a professor at Thunderbird It's no surprise that by the time sisters Deborah Johnson '94 and Tara Olson '00 entered graduate schooL they knew as much about Thunderbird as possible. Deborah echoes the sentiments of her older sisters, agreeing that Thunderbird is perfect for those with international experience and ambitions. Her international interest resulted in language teaching assignments in Vienna, Prague and Madrid. Now a translator at a ew York law firm , she has been accepted into law school in the fall where she will further her global interest - specializing in international and business law. Tara recalls that her parents would often invite students and guests of Thunderbird to their home. "I loved their international perspective," she explained. ''This ongoing exposure was all the recruiting I needed." Employed by Ford Motor Company, San Francisco in marketing, sales and service, Tara landed her job a year before graduation, with the help whi le I was teaching Engl ish in China," said Cheryl. ''The of Thunderbird's Career Fair. She program seemed a perfect way to combine my overseas experience with my past corporate and non-profit experience." Tracy and Cheryl, who eventually became sisters when their parents married in 1992, praise the School's international curriculum . "My experience as a team member on InterAd, and later as a T.A_, led directly to my career in brand management with Dial and Kellogg," explained Tracy, now the marketing director for the Personal Care Division of Phoenix-based Belae Brands. A participant in the Paris overseas program, she says that the exposure to so many different people, perspectives and experiences helped her develop a more creative and open-minded approach to problemsolving than she otherwise might have had. "Thunderbird prepared me to deal effectively with a wide variety of people and to quickly adapt to continuously changing situations - two skills critical in business dealings as well as in ci tes her overseas program experience in Geneva and Guadalajara as invaluable. "Thunderbird helped me gain a cul tural perspective and unique outlook - very different than I see in my co-workers." "It's funny," she said, "my sisters and I are all different people, but Thunderbird appreciates these differences without trying to turn everyone into someone new. We all still think differently, but that's everyday life. " -TRACY OLSO indicative of the Thunderbird expe- ''The curriculum gave me a greater understanding of international policy and the political economy," agreed Cheryl, who works in the office of development at Stanford University and participated in two Winterims at Thunderbird - one focused on marketing and the other, a CEO seminar. rience." The Thunderbird experience ... it is, without doubt, a nurturing environment where difference is embraced, where global famili es are formed, and where families feel comfortable enough recruiting their own - year after year ... . after year. • 54/2/2001 WWW.T- BIRD.EDU p .33 TWO GENERATIONS OF T-BIRDS The Warrens share interest in poultry, travel and Thunderbird By MELISSA CRITZER FRY When H. Robert '63 and Diana Macurda Warren '63 jumped on a Chilean freighter in 1963 - along with Jim Warren '57 and his bride - they brought only their dog Osito, cockatiel Paja and their pick-up truck as they steamed toward a poultry partnership in Lima, Peru. They had earned degrees from Thunderbird just months earlier - Bob, the bachelor of foreign trade, and Diana, the Wives Curriculum Diploma - a series of language and area studies courses offered to wives of students in the 50s and 60s. Along with their brother Jim, they were teaming up with classmate Juan Maurer '63 in the poultry reproduction business. All four Warren alumni celebrate Tito's graduation. "Since we knew little about poultry, we did investigate some facets of the poultry business before committing," said Diana. "We flew baby chicks from the states and raised them in Peru. They were the breeder stock for the broiler industry - designed to be a cheap source of protein for an exploding population." The adventure turned into almost a decade-long opportunity where Robert and Diana also gave birth to son, Tito (Robert) Warren '92, whose exposure to international living was a way of life. FROM DES MOINES TO TUCSON TO LIMA How did this Tucson family - originally from Iowa - make its way to Thunderbird and enjoy such an enriching internatio
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