Archive for August, 2010

Private equity professionals met with Arizona Legislature candidates Aug. 25, 2010, at Thunderbird School of Global Management to network and share ideas on the best ways to stimulate job growth in the state. The Thunderbird Private Equity Center hosted the event in conjunction with The Water Resource Institute and Green Street Capital. Other sponsors included Blue Energy Partners, Bryan Cave LLP, Cave Creek Capital Management LLC, Risc LLC, Bankers Trust and Private Lenders Group. The discussion came one day after Arizona’s primary elections. | Video: Arizona District 4 Senate candidate Scott Bundgaard (1:46) | Video: Arizona District 6 Senate candidate Lori Klein (2:08) | Video: Arizona District 9 Senate candidate Rick Murphy (1:42)
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A corporate strategy article by Thunderbird students Nathan Byrd, Simon Chang, Benjamin Downey, Marko Dutta and Damon Green

At the start of 2010, the iPhone accounted for 25.3 percent of the United States smartphone market, and was second only to RIM’s famous Blackberry, which took an impressive, though falling, 41.6 percent of the market. Among the young and middle-aged alike, however, there’s simply been no comparison in terms of mob appeal. Sometimes tagged as a trendy hipster’s toy selling to a smaller market of 20-somethings, recent numbers on the iPhone’s popularity tell a different story.
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This article on corporate strategy is by Thunderbird students Mohamed Abouahmed, Patrick Connellan, Joshua Golka, Kenn Hamm and S. Boyd Karren

SHANGHAI – The Walt Disney Company has learned some hard lessons with its ventures in Tokyo, Paris and Hong Kong. Can any of them be successfully applied to its upcoming venture in Shanghai? Or will a partnership with the Chinese government provide an altogether different kind of experience for Disney.
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By Nathan T. Washburn, Thunderbird Professor

BP, Toyota and other companies have taken public image beatings in recent months. Many would say deservedly so. But other firms linked to potentially bad behavior have escaped public outrage. What causes such discrepancies? I have developed a theory with Don Lange, Ph.D., a scholar at the W.P. Carey School of Business at Arizona State University. Our research identifies three key elements that predict public perceptions of corporate irresponsibility. | Video: Understanding the BP backlash (2:51) | Podcast: Why some firms face ire and not others (13:46)
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The first thing analysts want to see when they evaluate a company is its sales figures and profits. But Thunderbird Professor Lena Booth, Ph.D., says financial statements that show rapid growth can be deceiving — especially when too many sales are made on credit. “You can be forced into bankruptcy even though your books look impressive and you have handsome profits,” says Booth, academic director of Thunderbird’s Executive Certificate in Global Finance. She says disaster often occurs during a credit crunch when a company’s bills come due before it can collect from its customers. | Video: When financial statements lie (1:30)
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By Bill Youngdahl, Thunderbird Professor

This weekend I was fortunate to have a conversation with Phyllis Gebhardt, a human resource manager at Berlitz. She opened my eyes to the physics of influencing. “For every action there is an equal and opposite reaction,” she said. “When you use force, you’ll only strengthen the opposition.” This is especially true when it comes to influencing a boss or someone else in power. If you play the “I’m right and you’re not” card, the physics of influencing will throw those thoughts right back at you. A better option is to build a bridge of influence. Read the full post in my blog, Prosper in a Project-Driven World.

The following post is by Thunderbird students DeAnn Flora, Kenya Maddox, Robert Maxwell, Carolyn Ortengren and Christopher Tsai

Today’s medical device industry faces higher levels of scrutiny as companies experience more setbacks and regulation than ever before. The $200 billion industry allots a significant portion of its resources to research and development, field representation and clinical studies. U.S.-based medical technologies company Medtronic reports that total research and development spending comprises roughly 10 percent of total corporate sales. This rate potentially will increase as the U.S. Food and Drug Administration becomes more stringent about the evidence needed to bring new products to market.
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The following post on global strategy is by Thunderbird students C. Croisetière, H. Franklyn, N. Johnson, C. McCarter and K.C. Stewart

The process of implementing “green” practices into corporate strategy has been met with mixed results. Most have viewed the process of going “green” as merely a component of marketing and not as a business prospect that can benefit the environment and a company’s bottom line. Waste Management is one company that has been successful in merging the two structures of thought together in a systemic approach to this element of global corporate citizenship.
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The following post on global strategy is by Thunderbird students Alistair “AJ” Booth, Mrynal D’Arcangelo, Abby Freeman, Eric Magnuson and Christian Zdebel

A historical over-reliance on the European automobile market has put Volkswagen (VW) into a precarious position. The combination of depressed regional demand and overcapacity cloud the company’s outlook in its native region. To this end VW has extended both manufacturing and sales into developing nations. Among its competitors, Volkswagen is already the clear leader in BRIC countries (Brazil, Russia, India, and China). However, the company must apply greater resources and focus to BRIC countries, particularly India. Success in India will require a region-specific approach focused on vehicle safety, fuel efficiency, and environmentally friendly vehicles. All of these are strengths of the company. The right adaptations for the Indian market will enable Volkswagen to differentiate itself from domestic and international competitors and generate growth.
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By Gabriela Barragan ’08

What if our biggest disagreements in life actually involve people trying to be good? This question is at the heart of new research from a former Thunderbird professor that shows an argument or debate — whether between two coworkers or two nations — doesn’t have to end with polarizing views. John C. Beck, Ph.D., a former Thunderbird professor who is now senior adviser at the Lee Kuan Yew School of Public Policy in Singapore, has culled data from more than 2,000 surveys and interviews with people from 20 cultures. He’s found that it’s possible to categorize eight broad divisions, or “Eight Great Goods,” that people, organizations and nations pursue.
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