Archive for July, 2010

Business leaders help themselves and the bottom line when they embrace eight Millennium Development Goals outlined by world leaders in 2000, a United Nations Millennium Campaign spokeswoman  said July 29, 2010, at Thunderbird School of Global Management. “The private sector benefits from the participation of a healthy, educated workforce, and the presence of a solid base of consumers and investors,” said Leanne Rios, communications and advocacy associate with UN Millennium Campaign. She shared five questions that business leaders should ask themselves if they want to engage in a sustainable and inclusive world economy. | Video: Millennium Development Goals (1:41) | Video: Thunderbird Contributions (1:48)
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By Ernesto Poza, Thunderbird Professor
Part 1 in a 2-part series

What do Wal-Mart, S.C. Johnson, Hallmark Cards, Grupos Femsa, Bimbo and Cemex (Mexico), Hermès (France), Salvatore Ferragamo (Italy), Bacardí (Puerto Rico), BMW (Germany), LG Electronics (Korea) and Zara (Spain) have in common? For one thing, they are all family-owned or family-controlled businesses. All of them have proud entrepreneurial traditions, and many of them confound management experts by continuing to enjoy success after several generations of ownership by the founding entrepreneurial family. And this in an era when, according to a recent Bain and Company study, the lifespan of the average U.S. corporation has shrunk to 14 years.
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The difference between China and the United States can be felt on the street, Thunderbird Professor Roe Goddard, Ph.D., said July 22, 2010, during the third installment of a four-part BRIC series organized by Thunderbird Executive MBA faculty and staff. “You go to China, and they are very optimistic,” Goddard said. “It’s just a happier place to be. You come here, and everybody is depressed.” Goddard shared the platform with Thunderbird Professor Mary Teagarden, Ph.D., another scholar with expertise in China. | Video: China Then and Now (2:09) | Video: China’s Got Talent (3:59) | Video: China’s Plus Column (2:23) | Video: China’s Minus Column (2:18) | Podcast: Roe Goddard and Mary Teagarden (48:31)
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By Ángel Cabrera, Thunderbird President

Taking British Petroleum out of the hole it dug itself into will require a leader who is part experienced oil and gas executive, part government relations specialist, part statesman, part crisis manager, part credible spokesperson, part cheerleader and part trusted coach. On top of that, this leader will have to perform these tasks while being subjected to an unprecedented level of public scrutiny. I have known Thunderbird alum Bob Dudley for several years through his service on the Board Fellows at Thunderbird School of Global Management in Glendale, Arizona.  I believe he has the right combination of skills, attitudes, values and experiences to hit the ground running. Read more in my July 26, 2010 Washington Post column, or visit my global leadership blog on the Thunderbird Knowledge Network.

Women entrepreneurs face dire odds in war-torn Afghanistan. Besides the usual challenges that come with any startup, they must cope with inadequate systems for security, infrastructure, education, health care and gender rights. Even walking outside without a burqa can be a risk. Yet Thunderbird School of Global Management professors Amanda Bullough, Ph.D., and Mary Sully de Luque, Ph.D., have seen many women entrepreneurs succeed under these conditions. They will present research on what makes these women successful Aug. 10, 2010, at the Academy of Management annual meeting in Montreal, Canada. |  Video: Project Artemis graduate Aziza Mohmand (5:41) | Video: Project Artemis graduate Farida Alimy (3:50) ) | Video: Project Artemis graduate Rangina Hamidi (6:44)
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By Richard Ettenson, Thunderbird Professor

For every Intel that intentionally crafts its trajectory as a brand rather than as a mere product, there are dozens of brands such as LYCRA, KONI and Dell that have developed a deep resonance with customers more by accident than strategic intent. To judge by their websites and communications, the owners of these brands are well aware of what their products do for customers, but unaware of what they mean to customers. Many companies, especially engineering and technology-based firms, have a great product but an accidental brand. Read the full article, written with Type 2 Consulting founder Jonathan Knowles, in a Harvard Business Review blog posted July 19, 2010.

Companies should give their managers three things before turning them loose on any international assignment, Thunderbird Professor David Bowen, Ph.D., said June 29 at the world’s largest human resource management conference. First, companies should give their managers a clear definition of global mindset. Second, companies should help their managers assess their global mindset using a scientific instrument. Third, companies should help their managers develop global mindset. Bowen, the chief academic officer and dean at Thunderbird School of Global Management in Glendale, Arizona, studies global mindset at the Thunderbird Global Mindset Leadership Institute. He explained how companies can deliver all three things at the 2010 Society for Human Resource Management conference in San Diego, California. | Video: Society for Human Resource Management interview (4:06)
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By Vinicius Artacho, Paul Mastromatteo, Jean-Jacques Murama, Kamilla Nurbaeva, Farid Saffar and Antonio Solis, Thunderbird Executive MBA Europe students

Despite its success as a private wealth manager, giant Swiss bank UBS suffered huge losses during the financial crisis that swept the world in 2008 and 2009. Alongside the credit crunch, UBS also faces legal pressure in the United States and the European Union on tax evasion and money laundering claims. Other challenges are related to substitute activities for the wealthy, such as philanthropy, real estate and arts. These are traditional places where wealthy clients are investing more and more, taking away financial deposits from banks. Nevertheless, UBS is not dead, and some important measures have been taken. Read our full report on the Thunderbird Student Voices blog. The paper was written for the global strategy class of Thunderbird Professor Nathan Washburn, Ph.D., as part of our Thunderbird Executive MBA Europe coursework in Geneva.

By Seth Mallamo ’09

This year has seen considerable activity among private equity firms in China with more than 100 funds denominated in Chinese currency (RMB) now competing with numerous funds offshore. This level of interest highlights the fact that significant investment opportunities exist for private equity funds willing to spend the time and money to find companies with truly great potential. My firm believes the Chinese economy will remain strong going forward while it adjusts from a dependence on exports and investment towards one where consumer consumption is the leading source of growth. Those firms that position themselves now stand to reap considerable rewards from this ongoing economic shift.
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Global negotiator Willy Sono ’81 has found success in business by bringing people together. “You always talk about the expertise and know-how,” he says. “But it is also important to remember the know-who.” Sono, a Peruvian native, works in Lima as a consultant for Thunderbird Resorts (no relation to Thunderbird School of Global Management). He says successful negotiators do at least two things well: 1. They find win-win solutions and 2. They balance their short-term goals with mid- and long-range goals. “People want things to happen in an immediate way,” he says. “But things don’t necessarily work that way. You have to work for things. Everything in life is a process.” Watch the interview in this YouTube video, and find additional videos in Thunderbird’s cross-cultural negotiation series in the World Cafe blog on the Thunderbird Knowledge Network.