OREGON UNIVERSITY SYSTEM OFFICE OF ACADEMIC AFFAIRS

Proposal to offer a Bachelor of Science in Finance and Bachelor of Arts in Finance

Oregon State University

College of Business

Executive Summary

This proposal is part of an overall plan to transform the academic programs within the College of Business (COB) at Oregon State University. The transformation of our undergraduate curriculum, as set forth in our five-year plan, is to change from a Business Administration major with seven options to five discipline-specific majors (Accountancy, Business Information Systems, Finance, Management, and Marketing).

Our current COB graduates are already achieving the degree of specialization one would expect from a major in the discipline. The conversion from options to majors will: 1) better prepare profession-ready graduates; 2) improve the employment opportunities for graduates from our degree programs; 3) promote a greater awareness of professionalism within the academic discipline; and 4) increase the sense of pride business students have in their college and university. The Finance major provides a new face and a new status to the already existing finance educational program in the COB. Because the Finance option currently exists within the COB there are no new resource demands nor are there any major shifts needed in faculty expertise. The Finance major retains the 24 credit hours from the Finance option and adds 12 credit hours of finance-related coursework from the business core (ACTG 378, BA 340 and BA 466)

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OREGON UNIVERSITY SYSTEM OFFICE OF ACADEMIC AFFAIRS

Proposal to offer a Bachelor of Science in Finance and Bachelor of Arts in Finance

Oregon State University

College of Business

Description of Proposed Program 1. Program Overview

a. Proposed CIP number: 52.0801

b. Provide a brief overview (approximately 1-2 paragraphs) of the proposed program, including a description of the academic area and a rationale for offering this program at the present time. Please include a description of any related degrees, certificates, or subspecialties (concentrations, areas of special emphasis, etc.) that may be offered now or in the foreseeable future.

During the 2005-2006 academic year, the faculty of the College of Business (COB) participated in forums and working groups of employers, alumni, and students to address issues related to satisfaction of business students with their education and employers’ specific demand for talent. These discussions resulted in a revision of the mission for the COB consistent with the land grant mission of the University -- widely accessible higher education degree programs that prepare students for professional careers in business and are more relevant to contemporary society. This new mission for the COB is to provide nationally recognized research-based education that prepares profession-ready graduates who can excel in an innovative knowledge-based economy. In October 2006, the Dean of the COB, Ilene Kleinsorge, presented this new mission and a five-year plan at the semi-annual meeting of the Dean’s Circle of Excellence (see Item 6e). By 2011, the College aspires to provide distinctive, high quality programs that attract high performing students and faculty to create profession-ready graduates and research excellence that is essential on a campus of innovation. The members of the Dean’s Circle of Excellence enthusiastically endorsed this new mission and five-year plan.

To ensure an orderly change to curriculum and program changes that had a minimal impact on current students, a three year phased in process was launched. This proposal is the third and final phase to the transformation of the COB’s undergraduate programs. In the first phase we moved to a professional school model where we are able to better align our resources to the needs of our students by controlling enrollment into our upper division courses. In phase two, we realigned our business core curriculum – eliminating courses where content and skills could be integrated into existing courses (i.e. computer skills and introduction to management), redesigning existing courses to adapt to changes in content and skills needed for success in an innovation economy, adding a much demanded and needed freshman-level “Business Now” course to overview the field of business, requiring an “Introduction to Entrepreneurship” course for all business majors to ensure they understand the entrepreneurial process, and placing an increased emphasis on communicative skills with the addition of a required “Professional Development” course at the junior level. Within the Finance discipline, we restructured the curriculum by moving two courses to the junior year to better prepare students for summer internships, have added new courses in Portfolio Management and Financial Planning, and provide faculty supervision of the Oregon State

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Investment Group (OSIG) dedicated to giving students the opportunity to enhance education and career opportunities by providing experience in the operation of an investment management organization.

We are now ready to take the final step in the transformation of our curriculum as set forth in our five-year plan – to change our undergraduate curriculum from a Business Administration major with seven options to five discipline-specific majors (Accountancy, Business Information Systems, Finance, Management, and Marketing). From our many interactions with our alumni and business partners, we have repeatedly heard the comment that a Business Administration degree tells an employer very little about the expected strengths of a job candidate. Many emphasized that students must be able to distinguish themselves with more than a generic degree in Business Administration – especially when they are already achieving the degree of specialization one would expect from a major in the discipline. The conversion to majors will: 1) better prepare profession-ready graduates; 2) improve the employment opportunities for graduates from our degree programs; 3) promote a greater awareness of professionalism within the academic discipline; and 4) increase the sense of pride business students have in their college and university.

This proposal is part of this overall plan to transform the academic programs within the College. As will be presented later in this proposal, converting Finance from an option to a major will require no additional resources and is desired by Finance students, alumni, and external constituents. Our vision is to eventually add concentrations in three areas to the finance degree, 1) Financial Analyst (and corresponding support for the Chartered Financial Analyst [CFA] exams and certification), 2) Corporate Finance (and corresponding support for the Certified Management Accountant [CMA] exam and certification), and 3) Financial Planner (and the corresponding support for the Certified Financial Planner [CFP] exam and certification).

c. When will the program be operational, if approved?

If approved the degree programs will be operational in spring term 2009.

2. Purpose and Relationship of Proposed Program to the Institution's Mission and Strategic Plan

a. What are the objectives of the program?

The Finance Program of the COB provides nationally recognized research-based education that will prepare profession-ready graduates who can excel in an innovative knowledge-based economy, can successfully meet certification requirements in specific finance areas (such as the Charter Financial Analyst [CFA], Certificate in Management Accounting [CMA], Certified Financial Planner [CFP]) and experiential learning opportunities that involve applying theory to practice.

The Finance Program will accomplish our objectives through the following:

· Rigorous, integrated undergraduate and graduate classes that translate theory to practice and center on innovation and certification preparation.

· Distinctive experiential learning opportunities for students through internships, the investment club, and finance club.

· Nationally-recognized, discipline-based research and contributions to practice.

In addition, the Finance Program will assist the Finance students in achieving and enhancing life-long learning skills through contact with professional organizations and professionals in the finance field. The scholarship activity of the COB supports the education mission in both content and pedagogy. The service activity of the COB assists Oregon State University in

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achieving its land grant mission which includes contributing to the finance profession. The land grant mission carries with it the responsibility for education and research to enable the people of Oregon to develop and utilize resources of the College. As a State institution with a directive from the President of OSU for the COB to be one of the top undergraduate business programs in Oregon, the primary function of the Finance Program is education through classroom instruction and experiential learning and scholarship that is focused on research questions that will benefit classes and promote knowledge that benefits many organizations in Oregon. Service and professional development activities are encouraged and leadership roles are expected from the Finance faculty.

b. How does the proposed program support the mission and strategic plan of the institution(s)? How

does the program contribute to attaining long-term goals and directions of the institution and program?

A Finance degree aligns with OSU’s land grant status and its mission to educate the citizens and workforce of Oregon, OSU’s focus on professional programs, and OSU’s strategic plan. Finance graduates are an identifiable need for the State of Oregon that fits within OSU’s objective to “help attract and invest the public and private resources necessary to build academic programs and infrastructure that address the emerging economic and social needs of the people of Oregon” (http://oregonstate.edu/leadership/strategicplan/).

c. How does the proposed program meet the needs of Oregon and enhance the state's capacity to

respond effectively to social, economic, and environmental challenges and opportunities?

A Finance degree fits well within the COB’s strategic plan and the COB’s focus on “being a resource for business education and adding value to Oregon's economy” (http://www.bus.oregonstate.edu/about/mission.htm). The Finance Program prepares qualified graduates for a variety of professional employment in both the private sector and the public sector (government and not-for-profit). OSU’s Finance Program has provided leading financial professionals to the state of Oregon and the finance profession around the world.

3. Course of Study

a. Briefly describe proposed curriculum. (List is fine.) i. Slash courses (i.e., 400/500-level) should be listed as such. ii. Include course numbers, titles and credit hours.

The proposed Bachelor of Science degree curriculum includes Finance courses (36 credits), College of Business core courses (72 credits), University Baccalaureate core courses (36 credits), and unrestrictive elective courses (36 credits). In addition to the courses, students pursuing the Finance Major must meet all University and College of Business progression standards as well as complete a minimum of 60 credits in Upper Division (300-400 level) courses and a minimum of 180 credits total to graduate.

Students working towards a Bachelor of Arts degree in the College of Business must, in addition to the above:

A. demonstrate proficiency through the second year of a foreign language (foreign language proficiency is defined as completing the 213-level of that language with a C or better or getting a signed letter by the foreign language department that states they have determined the student has that level of proficiency w/o needing the course work), AND

B. demonstrate cultural awareness by either: 1) Completing six credits of upper division course work focusing on the culture of regions that

commonly use the foreign language in which the student is proficient, OR 2) Successfully complete a study abroad, global internship, or research experience of at least

ten weeks in a non-English speaking foreign country while enrolled at OSU. This experience must be clearly documented for audit purposes.

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Finance Courses in the Finance Major (36 credits)

Students must complete 36 credits of finance and finance-related courses in the Finance major.

Required Finance and Finance-Related Courses:

Course Title Designator Credits

1. Finance BA 340 (4) 2. Investments BA 341 (4) 3. Advanced Financial Management BA 342 (4) 4. Accounting Information Management ACTG 378 (4) 5. International Financial Management BA 445 (4) 6. Integrative Strategic Experience BA 466 (4) 24

Selected Finance Courses:

Select Two of the Following 7. Financial Institutions BA 441 (4) 8. Portfolio Management BA 443 (4) 9. Financial Risk Management BA 444 (4) 8

Select One of the Following 10. Accounting Process and Controls ACTG 317 (4) 11. Money and Banking ECON 330 (4) 12. International Economics ECON 340 (4) 4

Note: Finance electives are designed to allow students to focus on areas of interest within the finance profession that are best suited for their preferred future careers.

Business and Business-Related Core Requirements in the Finance Major (72 credits)

Students pursuing the Finance Major must complete 50 credits of business core courses and 22 credits in business-related courses.

Business Core Courses

Course Title Designator Credits

1. Business Now BA 101 (6) 2. Financial Accounting BA 211 (4) 3. Managerial Accounting BA 213 (4) 4. Legal Environment of Business BA 233 (2) 5. Introduction to Entrepreneurship BA 260 (4) 6. Introduction to Statistical Inference BA 276 (2) 7. Business Process Management BA 302 (4) 8. Legal and Ethical Business Solutions BA 333 (2) 9. Finance BA 340 (4)* 10. International Business BA 347 (4) 11. Managing Individual and Team Performance BA 352 (4) 12. Professional Development BA 353 (4) 13. Operations Management BA 357 (4) 14. Business Information Systems Overview BA 370 (4)** 15. Applied Quantitative Methods BA 376 (2) 16. Marketing BA 390 (4) 17. Integrative Strategic Experience BA 466 (4)* Total 50 * - these core course requirements are satisfied by the Finance Required Courses listed above. ** -this core course requirement is satisfied by the ACTG 378 Accounting Information Systems course in the Finance Required Courses listed above.

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Business-related Required Courses

Course Title Designator Credits 1. Public Speaking COMM 111 Or Argument and Critical Discourse COMM 114 (3)

2. Introduction to Microeconomics ECON 201 (4) 3. Introduction to Macroeconomics ECON 202 (4) 4. Calculus for Management and Social Science MTH 241 (4) 5. Mathematics for Management, Life, and Social Sciences MTH 245 (4) 6. English Composition WR 222 Or English Composition WR 323 Or Technical Writing WR 327 (3) Total 22

Writing Intensive Course (included above in business core courses)

Course Title Designator Credits

1. Professional Development BA 353 (4)

University Baccalaureate Core Courses (36 credits)

Students pursuing the Finance major must complete an additional 36 credits of University Baccalaureate core courses.

Skills Courses Credits

1. Writing I (3) 2. Writing II (3)* 3. Writing III (3)* 4. Mathematics (MTH 105 or higher level mathematics) (4)* 5. Fitness (3)

Perspectives Courses

1. Physical Science (Lab) (4) 2. Biological Science (Lab) (4) 3. Second course in Physical or Biological Science (including lab) (4) 4. Western Culture [WC] (3) 5. Cultural Diversity [CD] (3) 6. Literature and the Arts [LA] (3) 7. Social Processes and Institutions (3)*

Difference, Power, and Discrimination Course [DPD] (3)

Synthesis Courses

1. Contemporary Global Issues [CGI] (3) 2. Science, Technology, and Society [STS] (3) Total 36 * - these core course requirements are satisfied by the Business-related Required Courses listed above.

Elective Courses in the Finance Major (36 credits)

Selection of elective classes is at the discretion of the student. Students may pursue a University-approved minor, participate in an International Exchange or Study Abroad program (which may earn the student an International Business Option), earn academic credit while participating in a college-approved internship program, study a foreign language, or take any combination of additional courses that support their career and program goals.

Finance Related Elective Courses:

1. Financial Planning Seminar BA 406 (1)

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2. Investment Club BA 406 (1)

3. Finance Club (Officers Only) BA 406 (1)

4. CFA Exam Seminar BA 406 (1 to 3)

5. Internships BA 410 (1 to 6)

Note: Finance electives are designed to further prepare students for specializations within the finance profession and are not part of the 36 credit major requirement.

Illustrative Four-year Schedule for Students in the Finance Major

Freshman Year Fall Winter Spring

HHS 231 (2) HHS 241-251 (1)

BA 101 (6) WR 121 (3)

MTH 111 (4) MTH 241 (4) MTH 245 (4)

Biological Science (Lab) (4) Physical Science (Lab) (4) Physical or Biological Science (Lab) (4)

Bacc Core [WC, CD, LA, or DPD] (3 or 4)

Bacc Core [WC, CD, LA, or DPD] (3 or 4)

Total Credits (14 or 15) Total Credits (14) Total Credits (14 or 15)

Sophomore Year Bac Core [WC, CD, LA, or DPD] (3 or 4)

COMM 111 or 114 (3) Bac Core [WC, CD, LA, or DPD] (3 or 4)

WR 222 (3) BA 260 (4) BA 302 (4) ECON 201 (4) ECON 202 (4) BA 276 (2) BA 211 (4) BA 213 (4) BA 233 (2) Elective (3 or 4) Total Credits (14 or 15) Total Credits (15) Total Credits (14 to 16)

Junior Year

BA 340 (4) BA 341 (4) BA 342 (4) BA 353 (4) BA 347 (4) BA 357 (4) BA 333 (2) BA 352 (4) BA 390 (4) BA 376 (2) ACTG 378 (4) Elective (3 or 4) Finance Elective (4) Total Credits (16) Total Credits (16) Total Credits (15 or 16)

Elective: Summer Internship (1 to 6)

Senior Year Finance Elective (4) Finance Elective (4) BA 445 (4) Bacc Core [CGI or STS] (3 or 4) Bacc Core [CGI or STS] (3 or 4) BA 466 (4) Electives (6 to 8) Electives (8) Electives (8) Total Credits (13 to 16) Total Credits (15 or 16) Total Credits (16)

Baccalaureate Core Course Requirements Business Core Course Requirements Finance Course Requirements Elective Courses

b. Describe new courses. Include proposed course numbers, titles, credit hours, and course

descriptions.

No new courses are requested.

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c. Provide a discussion of any nontraditional learning modes to be utilized in the new courses, including, but not limited to: (1) the role of technology, and (2) the use of career development activities such as practica or internships.

No new courses are requested.

d. What specific learning outcomes will be achieved by students who complete this course of study?

Finance Learning Outcomes

Each student shall understand the fundamental theories, concepts, and tools of finance.

Each student will be able to apply financial management theories, concepts and tools to the decisions faced by a manager.

Investment decisions Financing decisions Working capital management decisions Financial analysis and planning

Fundamental Theories, Concepts, and Tools

Time Value of Money (TVM) Explain the concepts of discounting and compounding. Find the present value and future value for a single cash flow, series of cash flows, annuity,

and perpetuity. Develop a loan amortization schedule. Calculate an APR (annual percentage rate) and an EAR (effective annual rate). Use TVM to value assets such as common stock, preferred stock, and bonds. Describe and explain the variety of interest rates. Identify and explain the factors that determine interest rates and the yield curve.

The Relation between Risk and Return Calculate the historical return average and standard deviation of the historical returns. Calculate the expected return, standard deviation, and beta for a portfolio. Explain diversification, and distinguish between "diversifiable risk" and "nondiversifiable" risk. Describe "beta coefficient". Describe how beta coefficients can be estimated from historical returns. Understand and use the CAPM (SML) to calculate required rates of return. Explain the efficient market hypothesis (EMH) and its implications for an optimal investment

strategy

Financial Statements Understand the information contained in an income statement, balance sheet, statement of

retained earnings, and statement of cash flows. Summarize the differences between debt and equity.

Financial Decisions

Investment Decisions (Capital Budgeting) Recognize and calculate the relevant cash flows for a potential investment. Calculate and interpret a net present value (NPV), an internal rate of return (IRR), and a

payback period for a capital budgeting analysis. Make capital budgeting decisions under conditions of capital rationing and mutually exclusive

investments. Explain how to account for inflation in a capital budgeting analysis. Recognize and explain the weaknesses in the capital budgeting process.

Financing Decisions (Capital Structure)

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Calculate and interpret a weighted average cost of capital (WACC). Understand the effect of floatation costs on the cost of capital. Define financial leverage, capital structure, and optimal capital structure. Understand the effects of capital structure on the risk and return characteristics of a

company's debt and equity financing. Identify and explain factors that affect a firm's choice of capital structure:

tax benefit of debt bankruptcy costs collateral

Working Capital Management Decisions Understand the issues involved in setting corporate policy concerning current assets and

current liabilities. Understand the cash conversion cycle and issues involved in managing the cash conversion

cycle Briefly explain the difference between permanent financing needs and seasonal financing

needs. Understand and be able to analyze the issues involved in setting credit standards and terms. Briefly describe the sources available for short-term debt financing.

Financial Analysis and Planning Identify and explain the major categories of financial ratios. Calculate and interpret typical financial ratios. Use financial ratios to analyze company performance. Identify weaknesses in ratio analysis. Calculate and interpret pro forma financial statements using % of sales method and / or

specific information. Identify the major reasons for estimating a pro forma financial statement.

Business Learning Outcomes

Each student shall

Be able to identify and analyze business problems and opportunities and formulate recommendations for courses of action.

Communicate effectively and professionally in business situations through physical or virtual presence, writing, speaking, listening, and electronic media.

Demonstrate awareness of economic, environmental, political, ethical, legal and regulatory contexts of global business practice.

Appreciate the benefits of experiential learning by displaying good work habits, time management and self discipline.

Work effectively, respectfully, ethically and professionally with people of diverse ethnic, cultural, gender and other backgrounds and with people with different organizational roles, social affiliations and personalities.

Recognize entrepreneurial opportunities for new business ventures, evaluate potential for business success, and consider implementation issues including financial, legal, operational and administrative procedures involved in starting new business ventures.

Lead by using team building skills and facilitating collaborative behaviors in the accomplishment of group goals and objectives.

Use quantitative and qualitative tools and methodologies to support organizational decision making.

Assess how organizations create value in their global supply chains through the integrated production and distribution of goods, services and information.

Describe the concept of competitive advantage and how it may be achieved through strategic and tactical methods.

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Analyze the information content of organizational processes and use information technology to enhance individual productivity.

Define markets and apply marketing concepts and principles using a customer focus to effectively sell products and services.

Recognize and appropriately respond to ethical, legal and strategic concerns relating to human resource and organizational management.

Make basic investment and financing decisions for a business using financial management concepts, and methods.

Recognize problems and opportunities unique to family businesses including governance, family dynamics, succession and continuity.

4. Recruitment and Admission Requirements

a. Is the proposed program intended primarily to provide another program option to students who are already being attracted to the institution, or is it anticipated that the proposed program will draw students who would not otherwise come to the institution?

The proposed program enhances an existing program. We expect that through this enhancement, the reputation of the Finance Program will grow resulting in an additional draw for students to come to OSU.

b. Are any requirements for admission to the program being proposed that are in addition to

admission to the institution? If so, what are they?

Yes. The COB requires junior standing and a minimum GPA of 3.0 in the freshman and sophomore business core and business-related required courses for assured admission into the Professional Business Program. Students who have earned a cumulative GPA of 2.5 or above may be admitted on a space-available basis and/or based on the student’s contribution to diversity of viewpoints within the COB.

c. Will any enrollment limitation be imposed? If so, please indicate the specific limitation and its rationale. How will students be selected if there are enrollment limitations?

Yes. Because of resource constraints and accreditation requirements, the Finance Major is limited to 90 incoming students annually through a restriction imposed during the selection process for the Professional Business Program. Exceptions for students based on hardship and/or diversity criteria are available in the application process.

5. Accreditation of the Program

a. If applicable, identify any accrediting body or professional society that has established standards in the area in which the proposed program lies.

The Association to Advance Collegiate Schools of Business (AACSB International) accredits Business Administration programs.

b. If applicable, does the proposed program meet professional accreditation standards? If it does

not, in what particular area(s) does it appear to be deficient? What steps would be required to qualify the program for accreditation? By what date is it anticipated that the program will be fully accredited?

The OSU Undergraduate Degree in Business Administration is fully accredited by AACSB International.

c. If the proposed program is a graduate program in which the institution offers an undergraduate

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program, is the undergraduate program accredited? If not, what would be required to qualify it for accreditation? If accreditation is a goal, what steps are being taken to achieve accreditation?

This proposal is limited to undergraduate majors in finance.

Need 6. Evidence of Need

a. What evidence does the institution have of need for the program? Please be explicit. (Needs assessment information may be presented in the form of survey data; summaries of focus groups or interviews; documented requests for the program from students, faculty, external constituents, etc.)

We solicited input on our program from our alumni and the firms that hire our students by asking the following question:

Should the finance program at Oregon State University be changed so that students receive a finance degree? Explanation: The Finance Program is one of several options within the College of Business. Technically students completing the finance program at OSU receive a degree in business administration rather than a degree in finance.

Alumni and financial professionals unanimously supported the move from an option in business administration to a degree. The following summary of comments provides the basis for the support:

1. Having a visible finance degree would enhance resumes when seeking financial positions as it would signal a more in depth training in the finance field.

2. A finance degree with additional accounting courses would fill a major gap in the current market place for corporate accounting as all four major Oregon universities currently emphasize public accounting in their accounting programs (OSU, UofO, PSU, and UofP).

3. Having a finance degree with the possible combination of a dual degree in accounting would be a significant accomplishment for a student and would set them apart when competing for positions in the corporate world. Currently very few students have sufficient skills in both accounting and finance when entering the job market. If OSU students had a dual degree in accounting and finance they would be our primary target for new hires.

4. Having a finance degree and a professional certificate would set the OSU student years ahead of contemporaries in our field. (I would hire every one you could graduate).

5. A finance degree implies a level of learning and understanding far beyond a finance option with a business administration degree. It is more aligned with the profession-ready concept of the College because the finance profession views the field as very technical with some broad based business skills, not broad based with some financial skills.

We also solicited input on our proposed program from approximately 400 business alumni who have recently graduated from OSU. Eighty-eight responded to the question: “How important is it to distinguish a major in Finance from a major in Business Administration with an option in Finance?” Twenty-seven of the respondents graduated with an option in Finance and/or currently work within the Finance field. Overall, 82 percent of the respondents placed a high or very high importance on distinguishing a major in Finance. See Appendix I for a summary of comments from the respondents.

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Importance of moving from option to major 

Very Low  Low     High  Very High Major/ Area 

Number of Resp 

1 2 3 4 5

Other  61  3%  3% 15%  51% 28% 

Finance  27  0%  0% 11%  52% 37% 

Total  88  2%  2% 14%  51% 31% 

b. Identify statewide and institutional service-area employment needs the proposed program would

assist in filling. Is there evidence of regional or national need for additional qualified individuals such as the proposed program would produce? If yes, please specify.

We asked our alumni to estimate demand for Finance graduates within their company, within the Pacific Northwest, and in the global economy. Whereas less than 50 percent of the respondents project high demand within their company, 53 percent project high demand in the Pacific Northwest, and 73 percent project high global demand for Finance graduates.

Demand for Finance Graduates 

Very Low  Low     High  Very High Area Number of Resp 

1 2 3 4 5

Company  86  14%  16% 28% 31% 11% 

Pac NW  78  1%  4% 42% 42% 11% 

Global  83  0%  2% 25% 45% 28% 

c. What are the numbers and characteristics of students to be served? What is the estimated number of graduates of the proposed program over the next five years? On what information are these projections based?

The program anticipates graduating 90 students per year in finance over the next five years. Given the budget of the COB, 90 has been determined to be the capacity of the finance program. The characteristics of the students are expected to be unchanged with regard to demographics but enhanced with respect to the profession-ready mission of the college.

d. Are there any other compelling reasons for offering the program?

This is a resource-neutral proposal that better aligns the Finance Program at Oregon State University with needs identified by employers, alumni, and current students.

The ability to offer a dual degree in Accounting and Finance within the 212 hour degree requirement of the university will provide a very challenging program for the best and brightest business students in the state.

e. Identify any special interest in the program on the part of local or state groups (e.g., business,

industry, agriculture, professional groups).

The Dean’s Circle of Excellence provides advocacy, consultation, and support for the college and the continuing development of its business programs. Current members include:

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Donald C. Atkinson, VP marketing & managing director, Weyerhaeuser Robert E. Bauer, Rebco Enterprises Larry Brown, retired (PricewaterhouseCoopers) Steve Brown, retired (Hewlett-Packard) Richard Carone, chairman, Korvis Automation, Inc. Craig Chambers, Oregon Financial Services Group James E. Coleman, co-president, E. & J. Gallo Winery Lynn Egli, director of New Business Development, Hewlett-Packard Jill Eiland, OR corporate affairs manager, Intel Gayle Fitzpatrick, VP sales consulting, N. America Strategic Accounts, Oracle Pamela L. Garcia, president, NW Supermarket Holdings, Inc. R. Stevens Gilley, executive director, Clarence T.C. Ching Foundation Brad R. Harlow, B. Harlow & Associates LLC Scott Hildebrandt, vice president and CFO, Planar Systems, Inc. Linda Hirneise, consultant, hospitality industry Allen P. Leggett, area senior vice president, Arthur J. Gallagher & Company Jon A. Masterson, president and CEO, Wallboard Tool Company, Inc. Elise McClure, vice president of tax and customs, Starbucks Coffee Company Derrick E. McGavic, founder, Newport Capital Partners James S. Merryman, senior vice president, Oregon Freeze Dry Bernie Newcomb, philanthropist Irva Neyhart, partner, Stover Neyhart & Co. Diane Paddison, president & COO, ProLogis James Parkin, partner, Deloitte & Touche Kenneth Poorman, president, Poorman Enterprises Sally Smedal, CFO, G.L. Mezzetta Inc Ron Susa, finance manager, Chevron Corporation Ken Thrasher, CEO, Compli Corporation Art Tokin, retired (PricewaterhouseCoopers) Dan Whitaker, president and CEO, D & W Enterprises Jack Wilborn, managing partner, KPMG International

f. Discuss considerations given to making the complete program available for part-time, evening, weekend, and/or place bound students.

We have no plans at present to extend the finance program as it exists today. There are many alternatives outside of OSU for students seeking instruction in finance. Our educational value comes from our students taking classes in cohorts, infusion of academic research and practice into our courses, the individual attention we provide students, our internships, the finance club, the investment club, certification opportunities and our focus on professionalism.

Outcomes 7. Program Evaluation

a. How will the institution determine the extent to which the academic program meets the objectives (section 2a) previously outlined? (Identify specific post-approval monitoring procedures and outcome indicators to be used.)

We have extensive assessment and monitoring as part of our accreditation process including surveying former graduates, evaluating learning outcomes in each class, and continual improvement processes. An Undergraduate Program Committee within the College is responsible for reviewing curriculum at least once every five years. The College has developed a five-step assessment process that includes 1) definition of student learning goals and objectives for each academic program, 2) alignment of the program curricula with

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the adopted goals, 3) identification of the instruments and measures to assess learning, 4) collection, analysis and dissemination of the assessment information, and 5) use of the assessment information for continual improvement of the program curricula.

b. How will the collected information be used to improve teaching and programs to enhance student

learning?

We regularly make changes to our courses and programs as a result of our assessment and monitoring process. We have recently created the junior level finance sequence to elevate the qualification of finance students for internships between their junior and senior year. We will continue to look at issues that will increase the successful completion of certifications and increase the pass rates on national and state financial certifications.

8. Assessment of Student Learning

a. What methods will be used to assess student learning? How will student learning assessment be embedded in the curriculum?

Methods of student learning assessment are both course specific and program specific and therefore are embedded throughout our curriculum. Finance learning requires an emphasis on problem solving in a professional business context. We integrate a broad assessment program of exams, homework assignments, contextual case studies, written assignments, team projects, presentations, professional activities and computer projects across our curriculum.

b. What specific methods or approaches will be used to assess graduate (completer) outcomes?

The COB currently does this through exit interviews and post-graduation surveys. The Finance Program holds annual meetings with recruiters.

c. Is a licensure examination associated with this field of study?

No.

Integration of Efforts 9. Similar Programs in the State

a. List all other closely related OUS programs.

The University of Oregon has an undergraduate business administration degree with a concentration in finance.

Portland State University has an undergraduate degree in business administration with a finance option.

The Oregon Institute of Technology offers an undergraduate degree in management that offers finance courses.

Western Oregon University, Southern Oregon University, and Eastern Oregon University have undergraduate Business degree programs that offer finance courses.

b. In what way, if any, will resources of other institutions (another OUS institution or institutions,

community college, and/or private college/university) be shared in the proposed program? How will the program be complementary to, or cooperate with, an existing program or programs?

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Resources of other institutions or resources shared with other programs will be unaffected by the creation of a finance degree because no additional courses will be created.

c. Is there any projected impact on other institutions in terms of student enrollment and/or faculty

workload?

This proposal is not intended to change the current finance program at OSU. The finance program at OSU does not intend to increase enrollments above 90 new students per year. Current demand for finance education at OSU exceeds OSU’s capacity to offer finance education, a situation we do not expect to change in the near future. Therefore, no projected impacts on other OUS institutions or programs are anticipated.

Resources 10. Faculty

a. Identify program faculty, briefly describing each faculty member's expertise/specialization. Separate regular core faculty from faculty from other departments and adjuncts. Collect current vitae for all faculty, to be made available to reviewers upon request.

Faculty Teaching Classes in the Finance Program

Professor Raymond M. Brooks (PhD Washington University 1991) – Primary areas of teaching are investments and financial markets and institutions. Primary areas of research include market microstructure and price efficiency.

Assistant Professor Prem Mathew (PhD University of Missouri 1999) – Primary areas of teaching are corporate finance and portfolio management. Primary areas of research include market efficiency and disclosure.

Assistant Professor Jimmy Yang (PhD University of Cincinnati 2002) – Primary areas of teaching are corporate finance and international finance. Primary areas of research are market stabilization mechanisms, international financial markets, and equity offerings.

Assistant Professor Dave Berger (PhD Washington State University 2008) – Primary areas of teaching are corporate finance and financial markets and institutions.

Assistant Professor, Byron Marshall, (Ph.D. Management Information Systems, University of Arizona, 2005). Primary areas of teaching include business applications development and accounting information management.

Instructor Robert Johnson (ABD University of Oregon 1982) – Primary areas of teaching are financial management and financial markets and institutions.

Instructor Steven Gallaher (ABD University of Texas 2007) – Primary areas of teaching are investments and financial management.

Instructor Madeleine Romero (MBA University of Southern California 1982) – Primary area of teaching is financial management.

Adjunct Faculty: none

b. Estimate the number, rank, and background of new faculty members who would need to be added to initiate the proposed program in each of the first four years of the proposed program's operation (assuming the program develops as anticipated). What commitment does the institution make to meeting these needs?

No new faculty positions will be needed to initiate the proposed program.

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c. Estimate the number and type of support staff needed in each of the first four years of the program.

No changes are expected in the number and type of support staff. 11. Reference Sources

a. Describe the adequacy of student and faculty access to library and department resources (including, but not limited to, printed media, electronically published materials, videotapes, motion pictures, CD-ROM and online databases, and sound files) that are relevant to the proposed program (e.g., if there is a recommended list of materials issued by the American Library Association or some other responsible group, indicate to what extent access to such holdings meets the requirements of the recommended list).

Faculty have access to both print media through professional organizations such as the American Finance Association and Financial Management Association as well as specific subscriptions to print and on-line journals that support their scholarly activities. In addition faculty and students have access to on-line databases such as Standard and Poor’s Net Advantage (managed by the OSU library) and COB databases such as the TAQ (Trades and Quotations) database of equity and bond trading on the major U.S. exchanges (NYSE, AMEX, and NASDAQ). Faculty also have access via specific data requests to professional organizations that have specialized data. Finally, financial data is available free from many sources on the internet including but not limited to Yahoo.Finance, Morningstar, Bloomberg, EDGAR, and many of the financial institutions such as the NYSE, Chicago Board of Options, and U.S. Treasury.

b. How much, if any, additional financial support will be required to bring access to such reference

materials to an appropriate level? How does the institution plan to acquire these needed resources?

No additional department resources are required.

12. Facilities, Equipment, and Technology

a. What unique resources (in terms of buildings, laboratories, computer hardware/software, Internet or other online access, distributed-education capability, special equipment, and/or other materials) are necessary to the offering of a quality program in the field?

No additional resources are necessary to continue the finance program..

b. What resources for facilities, equipment, and technology, beyond those now on hand, are

necessary to offer this program? Be specific. How does the institution propose that these additional resources will be provided?

No resources beyond those on hand are necessary to continue the finance program. 13. If this is a graduate program, please suggest three to six potential external reviewers.

Not applicable 14. Budgetary Impact

a. On the “Budget Outline” sheet (available on the Forms and Guidelines Web site), please indicate

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the estimated cost of the program for the first four years of its operation (one page for each year). The “Budget Outline Instructions” form for filling out the Budget Outline is available on the Forms and Guidelines Web site, as well.

No budgetary impact.

c. If federal or other grant funds are required to launch the program, describe the status of the grant application process and the likelihood of receiving such funding. What does the institution propose to do with the program upon termination of the grant(s)?

No federal or other grants are required to launch the program.

d. If the program will be implemented in such a way as to have little or minimal budgetary impact, please provide a narrative that outlines how resources are being allocated/reallocated in order that the resource demands of the new program are being met. For example, describe what new activities will cost and whether they will be financed or staffed by shifting of assignments within the budgetary unit or reallocation of resources within the institution. Specifically state which resources will be moved and how this will affect those programs losing resources. Will the allocation of going-level budget funds in support of the program have an adverse impact on any other institutional programs? If so, which program(s) and in what ways?

The Finance major provides a new face and a new status to the already existing finance educational program in the COB. Because the Finance option currently exists within the COB there are no new resource demands. No shifting of costs within the COB or within OSU are anticipated or requested. No adverse effects on other institutional programs are anticipated.

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Appendix I: Supporting comments from faculty, alumni and employers.

Should the finance program at Oregon State University be changed so that students receive a Finance degree? Explanation: The Finance Program is one of several options within the College of Business. Technically students completing the finance program at OSU receive a degree in business rather than a degree in finance.

Positive responses: Comments from respondents who gave one or more very high ratings for the need for majors “I feel that in today's marketplace our graduates need to be as specialized as possible. I also remember being a senior and wishing that the courses I was taking were more specialized and focused.” “A degree in Business with options tells an employer very little about the candidate's expected strengths.” “Being able to prove expertise is very important in industry.” “Personally, I believe that specialized training in Information Systems is very valuable for employers - and this is true for technology firms and non-technology firms; IT skills are extremely valuable and would distinguish graduates. Finance skills are also valuable for a heavily regulated business and the additional skills would give OSU graduates an advantage - much like our accounting program has done very successfully over the years.” “Every job I see is asking for a degree in a area. An option seems less qualified.” “I think it is absolutely crucial in today's competitive market that each student is enabled to distinguish themselves with more than a generic degree that is Business Administration. Oftentimes, when asked what one majored in a generic answer is not what is needed, but moreover that question is asked to really see what this individual specializes in or has depth of knowledge in.” “Targeted knowledge and experience is highly sought after. However, related work experience is what makes a student stand out.” “I feel it's very important to provide a major due to the fact that I feel having an option did not give me the advantage and advanced education needed. Having an option gave me a general idea of the different areas in business, but not an expertise.” “We often 'look' for these majors in recruiting. Sadly at current OSU only shows us as Bus. Admin Majors. I think this would especially benefit new grads.” “Both from a marketing job search after my MBA program and through my husband frequently hiring for finance openings at Tektronix, I'm aware that any form of specialization in marketing and finance assist with obtaining a position in the desired field. I'm not able to provide feedback on Information Systems or general management.” “The change will ultimately increase the value (actual and perceived) of business degree from OSU. I think the other thing OSU COB needs to work on is bringing the alumni together to develop a stronger network. This will also add additional value to a OSU COB degree. The new LinkedIn group is a good start and can be used to communicate to the alumni.”

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“I like this new format. Although I am an entrepreneurship option graduate and prefer my option title to follow a "Business Administration" degree title like the system is now, I believe if I were in any other option/focus (finance, marketing, accounting, BIS, Finance) I would appreciate a stand-alone title.” “Overall, I think the proposed change is positive. It provides a prospective employer a look into the individuals interests and focus. I doubt it would make a big difference to the financial services industry but other industries and the IT major may be more important.” “I always felt the option tag was insufficient and am encouraged by the potential change. I will aid in any way I can to help the future graduates project a higher quality degree.” “My initial response is that it will deliver a better education for our business majors.” “I think it is an excellent idea to move to a more distinguishable business degree. Not only does it provide employers with more confidence that students have completed the necessary coursework in a given field, it will help attract more students to the OSU business school.” “I think changing to specific majors is a wonderful step for OSU. There is an extreme stigma to the general business administration degree, one that I try to avoid by simply saying I was an International Business Major.” “In an environment where advanced degrees of education (MBAs) are becoming more prevalent, discipline-specific majors will help those with Bachelor's degrees compete more effectively.” “I have long been advocating taking steps to move OSU into the forefront of business schools, whether they be refined educational requirements, better internship opportunities, and more advanced/cutting edge programs. Please contact me if I can be of any help.” “I always felt the option tag was insufficient and am encouraged by the potential change. I will aid in any way I can to help the future graduates project a higher quality degree.”

Neutral or Non-Committal Responses

“My experience is that a general degree allows more flexibility in future career choices.”

“I think it's important to distinguish if the student knows exactly what line of work they will pursue, similar to an accounting major or an engineer. I'm afraid a lot of business students don't know exactly, I didn't.”

“I would place more emphasis on Finance and Marketing, the others are expected in today's workplace to succeed.”

“I would be in support of a "focused" degree so long as the graduates continue to have a well balanced education.”

Negative Response: Comments from respondents who gave one or more very low ratings for the need for majors.

“For a diligent recruiter, the difference is clear and irrelevant because there is no difference. The

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Business path with specific emphasis is called something different at every school. On the other hand, a student with a general Business degree may have more doors open to them and the option is a bonus (or a deterant). If you change their degree to something very specific, perhaps they would lost opportunities that a general Business degree would have allowed them in the door.” “Management by definition is a generic degree and needs no major determination. Marketing has no standard for determining a major classification so how can COB determine a major? Finance and BIS could benefit from a major definition as it would convey to employers the students taking of a minimum number of courses to qualify for major determination.” “I am torn in between. I don't think it is bad that OSU has options, but I don't know how much it really matters to have a major in it either. When I graduated in 1998 I made sure to put the options on my resume. I don't think that the recruiter cares if it is an option or a major they just want to know what areas of business you concentrated your coursework in. Unless the coursework is going to change dramatically and that a major in IT, Finance etc.. means many more classes geared in that area than before when it was option then it would make sense.” “There are benefits to having a general degree when it comes to career choices. Verify by checking recent graduates job tasks compared to their degree option.”

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Appendix II: External Liaison Feedback on the proposals to move from academic options to majors was solicited from all campus units and other OUS institutions whose program or students could be affected by the proposal. Included below are the list of individuals from which liaison was requested, a copy of the liaison letter, and the responses received as of Jan 20, 2009 (response deadline was Jan 16, 2009). Liaison Contacts Leslie Mueller, Dean, College of Business, Eastern Oregon University One University Boulevard, Zabel Hall 261, La Grande, OR 97850 Charlie Jones, Interim Dean, School of Engineering and Management, Oregon Institute of Technology 3201 Campus Drive, Klamath Falls, OR 97601 Scott Dawson, Dean, School of Business Administration, Portland State University 615 SW Harrison St., Portland, OR 97201 Dave Harris, Dean, School of Business, Southern Oregon University Central 144, 1250 Siskiyou Blvd., Ashland, OR 97520 Dennis Howard, Dean, Charles H. Lundquist College of Business, University of Oregon 1208 University of Oregon, Gilbert Hall, Eugene, OR 97403-1208 Hamid Bahari-Kashani, Chair, Division of Business and Economics, Western Oregon University West House 113, 345 North Monmouth Avenue, Monmouth, Oregon 97361 Bill Boggess, Interim Dean, College of Agricultural Sciences, Oregon State University 126 StAg Hall, Corvallis, OR 97331 Sam Stern, Dean, College of Education, Oregon State University 215 Education Hall, Corvallis, OR 97331 Ron Adams, Dean, College of Engineering, Oregon State University 101 Covell Hall, Corvallis, OR 97331 Hal Salwasser, Dean, College of Forestry, Oregon State University 150 Peavy Hall, Corvallis, OR 97331 Tammy Bray, Dean, College of Health and Human Sciences, Oregon State University 123 Women’s Building, Corvallis, OR 97331 Dan Arp, Dean, Honors College, Oregon State University 2082 Cordley, Corvallis, OR 97331 Larry Rodgers, Dean, College of Liberal Arts, Oregon State University 203 Gilkey Hall, Corvallis, OR 97331 Mark Abbott, Dean, College of Oceanic & Atmospheric Sciences, Oregon State University 104 COAS Admin, Corvallis, OR 97331 Wayne A. Kradjan, Dean, College of Pharmacy, Oregon State University 205A Pharmacy Bldg, Corvallis, OR 97331 Sherman Bloomer, Dean, College of Science, Oregon State University 128 Kidder Hall, Corvallis, OR 97331 Sally Francis, Dean, Graduate School, Oregon State University 300 Kerr Administration, Corvallis, OR 97331

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Liaison Letter December 16, 2008

Address List Dear Contact, The College of Business at Oregon State University proposes to convert our existing Finance, Management, Management Information Systems, and Marketing options in the College of Business (COB) to Finance, Management, Business Information Systems, and Marketing degree programs (respectively). During the 2005-2006 academic year, the faculty of the COB participated in forums and working groups of employers, alumni, and students to address issues related to satisfaction of business students with their education and employers’ specific demand for talent. These discussions resulted in a revision of the mission for the COB consistent with the land grant mission of the University -- widely accessible higher education degree programs that prepare students for professional careers in business and are more relevant to contemporary society. To ensure an orderly change to curriculum and program changes that had a minimal impact on current students, a three-year phased process was launched. In the first phase we moved to a professional school model where we are able to better align our resources to the needs of our students by controlling enrollment into our upper division courses. In phase two, we realigned our business core curriculum. We are now ready to take the final step in the transformation of our curriculum as set forth in our five-year plan – to change our undergraduate curriculum from a Business Administration major with seven options to five discipline-specific majors (Accountancy, Business Information Systems, Finance, Management, and Marketing). From our many interactions with our alumni and business partners, we have repeatedly heard the comment that a Business Administration degree tells an employer very little about the expected strengths of a job candidate. Many emphasized that students must be able to distinguish themselves with more than a generic degree in Business Administration – especially when they are already achieving the degree of specialization one would expect from a major in the discipline. The conversion to majors will: 1) better prepare profession-ready graduates; 2) improve the employment opportunities for graduates from our degree programs; 3) promote a greater awareness of professionalism within the academic discipline; and 4) increase the sense of pride business students have in their college and university. Converting the Business Administration options into degree programs requires no additional resources. The first two phases of our curricular transformation have enabled us to better manage the total number of students within each discipline. As a result, we are able to give our students more depth within the discipline by requiring them to take additional coursework (that was previously elective). All classes listed in the proposals are in place and the majority of our students currently earn the equivalent of the major. Please review the enclosed document and provide me with your comments before January 16, 2009. If you have not responded by this date, we will assume that you approve of the proposed change. Best regards, Ilene K. Kleinsorge, Dean Sara Hart Kimball Chair Enclosures: Category 1 Proposals for:

Bachelor of Science in Finance and Bachelor of Arts in Finance Bachelor of Science in Management and Bachelor of Arts in Management Bachelor of Science in Business Information Systems and Bachelor of Arts in Business Information Systems Bachelor of Science in Marketing and Bachelor of Arts in Marketing

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Responses to Liaison Letter: From: Kradjan, Wayne Sent: Mon 12/29/2008 1:48 PM To: Kleinsorge, Ilene - COB Subject: College of Business Degree Programs; College of Pharmacy Business Awards

Eileen  I heartily endorse your proposed conversion to new degree pathways in the College of Business replacing the existing Business Administration degree with options process. You and your faculty are to be commended in the restructuring of your college. All of the changes improve the services provided to students and better communicate the strengths of the college to all outside constituencies.

Wayne ******************************** Wayne A. Kradjan, Pharm. D., BCPS Dean and Professor Oregon State University/ Oregon Health & Science University College of Pharmacy 203 Pharmacy Building Corvallis, OR 97331-3507 541-737-3424 Phone 541-737-3999 Fax 503-494-5778 Portland wayne.kradjan@oregonstate.edu

From: Scott Dawson [mailto:scottd@sba.pdx.edu] Sent: Wed 12/31/2008 8:33 AM To: Kleinsorge, Ilene - COB Subject: Major proposals

Hi Ilene, Thanks for the letter and background on your steps to shift from options to majors. Congratulations on implementing your long-term plan. Good luck as you wind through the final stages. Happy new year. Scott

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From: Francis, Sally K. Sent: Tue 12/30/2008 3:56 PM To: Kleinsorge, Ilene - COB Cc: Fisk, Martin Subject: Curricular proposal

Ilene, Thank you for the opportunity to review your proposal to convert your existing Finance, Management, Management Information Systems, and Marketing options in the College of Business to Finance, Management, Business Information Systems, and Marketing undergraduate degree programs. We can foresee no impact on the MBA program as a result of the proposed changes particularly in light of the fact that there are no "slash courses" involved. We might even speculate that the proposed changes will serve only to strengthen the College of Business offerings positively so as to enhance the stature and strength of the existing MBA program.

In sum, I have no objections to your proposed changes and am supportive of them as a package. Sally

Sally K Francis Dean, Graduate School 300 Kerr Administration Building Oregon State University (541) 737-4881 From: Bloomer Sherman [mailto:Sherman.Bloomer@oregonstate.edu] Sent: Sunday, January 04, 2009 12:06 PM To: Kleinsorge, Ilene - COB Subject: Conversion of Business Options to Degrees Ilene: I've taken a look at the proposal and checked in with the chairs involved. It looks to me like the principal courses involved from science are from Mathematics. If the proposal does not involve adding or increasing the demand for those courses (as I read it I don't think it does) the College of Science has no issues with the proposal. Good luck with it...this seems like a really good idea and timely. Sherm Sherman H. Bloomer Dean, College of Science 128 Kidder Hall Oregon State University Corvallis, OR 97331-4608 Ph: 541-737-3877 FAX: 541-737-1009 Sherman. Bloomer @oregonstate.edu

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From: Clarke, Cyril Sent: Thursday, January 22, 2009 9:35 AM To: Kleinsorge, Ilene - COB Cc: Tornquist, Susan Subject: Business Program Change Ilene, In reference to your letter of December 16, 2008 concerning the proposed change in degree options to Finance, Management, Business Information Systems, and Marketing degree programs, the CVM does not anticipate any issues that would adversely affect our programs. Indeed, we appreciate your efforts to position your college strategically in a manner that meets the needs of your various constituents and stakeholders. Thanks for soliciting our comments. Cyril - - - - - - - - - - - - - - - - - - - - - - -  Cyril R. Clarke, BVSc, MS, PhD Diplomate ACVCP Lois Bates Acheson Dean College of Veterinary Medicine Oregon State University 200 Magruder Hall Corvallis, OR 97331‐4801 Phone: (541) 737‐2098 Fax: (541) 737‐4245 E‐mail: cyril.clarke@oregonstate.edu From: Green, Cary Sent: Thursday, January 22, 2009 7:00 AM To: Kleinsorge, Ilene - COB Cc: Boggess, Bill; Capalbo, Susan Subject: Cat 1 Proposals   Dr. Kleinsorge: The College of Agricultural Sciences has reviewed your Cat 1 proposals per your Dec 16th memo. We support your proposed changes with the explicit assumption that access to selected COB courses by our ABM majors will continue as it has in the past. If the proposed changes will impact our students’ access, we would like to the opportunity for discussion. Thank you for the opportunity to review these proposals. We wish you great success with your programs. Cary J. Green, Ph.D. Assistant Dean and Head Advisor Academic Programs Office College of Agricultural Sciences Oregon State University 137 Strand Agriculture Hall Corvallis, Oregon 97331-2202 541-737-5746 (Office) 541-602-2687 (Cell) 541-737-2256 (Fax) cary.green@oregonstate.edu agsci.oregonstate.edu

February 16, 2009 To: Dan Dowhower

Academic Planning and Assessment Coordinator 110 Kerr Administration Building

Dear Dan, BFP reviewed four of the five College of Business Category I proposals entitled

- BS & BA in Business Information Systems - BS & BA in Finance - BS & BA in Management - BS & BA in BS & BA in Business

There was reference to moving from one degree with seven options to 5 new degrees. However, B&FP only received four proposals. Accountancy is referenced in each of the proposals. Accountancy cannot be recognized within this memorandum of recognition. The committee noted:

1. No projected cost impact is stated in the proposals or associated budgets; 2. Several comments associated with proposal content (see below); and 3. No indication otherwise of further discussion needed.

The Budget and Fiscal Planning Committee recommends the proposal be forwarded at this time to the appropriate committee for review. Committee comments focused on the following:

a. The proposals supplied excessive marketing language with very limited attention to day-to-day costs. Proposals show no new costs for any of the new degrees;

b. Where are transition costs of new degrees? Commonly, colleges will identify everything from new letterhead, to advising hours, to staff changes. It is important such costs are not added later with no budget review.

c. Given current social context, is there enough emphasis placed on matters of finance and ethics (among other disciplines mentioned)? However, B&FP committee recognizes this is a perpetual challenge as specializations gain degree status.

Please contact Frost (author) for any discrepancies with the above. As co-chairs, we divide proposals based on their order of arrival. Sincerely, Robert Frost and Rebecca Warner Co-Chairs, Faculty Senate Budgets and Fiscal Planning Committee

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Dowhower, Dan

From: Coakley, James - COBSent: Tuesday, February 17, 2009 9:22 AMTo: Dowhower, Dan; Leslie, Susie; Frost, RobertCc: Kleinsorge, Ilene - COB; Warner, RebeccaSubject: RE: COB CAT 1: four new degrees Memo

Dan, Robert and Susie,

Please see my comments below.  I would be happy to meet with you to provide further clarification as needed.

There was reference to moving from one degree with seven options to 5 new degrees.However, B&FP only received four proposals. Accountancy is referenced in each of the proposals. Accountancy cannot be recognized within this memorandum of recognition.

Accountancy has already been converted to a major.  Our new structure is to have a total of six majors:  the current Business Administration and Accountancy majors, plus the four new proposals:  Finance, Management, Marketing, and Business Information Systems.  Under the Business Administration major, we will continue to offer the Entrepreneurship and International Business options.  In the future, we plan to move Entrepreneurship to major status, and attach the International Business option to each of the majors.  

We struggled with how much of our long range strategy to include in these proposals.  It has always been our plan to keep International Business as an option for each degree program.   However, we cannot make International Business an option to the disciplines until the majors are approved.  In the interim, we will keep IB as an option under Business Administration.  This does get a bit messy.  For example, Accountancy students earn a dual degree – a BS/BA in Accountancy and a BS/BA in Business Administration with an option in International Business.  Once the four proposals are approved, we will initiate the Cat II actions to attach the current International Business option to each of the five new majors.  Then, students would earn a BA/BA in Accountancy with an option in International Business (as an example).

We are currently evolving our Entrepreneurship program.  We have hired new faculty in this area and are beginning to implement curricular changes within the option.  Once these stabilize, we will then consider moving the option to a major.  We may decide to keep it as an option so that each discipline can attach a transcript visible option in Entrepreneurship (in which case, we would initiate Cat IIs to attach it as an option to each major).  

The committee noted:1. No projected cost impact is stated in the proposals or associated budgets;

We do not anticipate any cost impact of moving these four options to majors.  The College of Business does not have traditional departments – we use coordinators within each discipline to manage curriculum and an Associate Dean of Faculty who is responsible for all faculty related activities (hiring, PROF, P&T, three‐year reviews, etc.).  Since each discipline currently has a coordinator, and the role of the coordinator will not change if the current options are approved as majors, there is no cost impact.

The college uses centralized advising, and all advisors are aware of the degree requirements for each discipline – whether it be an option or a major.  The only curricular change is associated with the management proposal.  If the Cat I proposal is delayed or denied, then we plan to submit a Cat II to change the existing Management option.  The new courses have been approved, and we are currently programmed to deliver these courses next year.  This is the direction in which we intend to move the discipline, regardless of whether it is an option or a major.  We merely planned to jump 

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directly to the major and avoid the administrative tasks of changing the option (which will be removed one the major is approved and after an appropriate transition period).  There really are no additional costs for moving these options to majors – given our college administrative structure and current curricular offerings.

2. Several comments associated with proposal content (see below); and

I responded to each below

3. No indication otherwise of further discussion needed.

I do not understand this comment.  Please clarify.

The Budget and Fiscal Planning Committee recommends the proposal be forwarded at this time to the appropriate committee for review.

Committee comments focused on the following:a. The proposals supplied excessive marketing language with very limited attention to day-to-day costs.

Proposals show no new costs for any of the new degrees;As stated above, we do not project any new costs for the degree programs.  

b. Where are transition costs of new degrees? Commonly, colleges will identify everything from new letterhead, to advising hours, to staff changes. It is important such costs are not added later with no budget review.

We are continually updating our advising materials to reflect changes in our curriculum, just as we continually update the OSU catalog.  Within the College of Business, our curriculum continually evolves and our advising materials change to keep up with these evolutions. If we change course designators, then we will need to make appropriate updates to the OSU catalog.  These would be accomplished with the normal Curriculum Approval process.  We do not consider this to be an added cost.  The materials are reviewed and updated each quarter as curriculum and class schedules change.  

Because the college does not have departments, there are no additional administrative costs.  We will serve the same number of students if the proposals are approved – there will be no changes to our centralized advising practices or staff.  The Head Advisor is a member of our undergraduate program committee, and is well aware of all proposed changes to the curriculum.  The Advisors are professional faculty who attend all faculty meetings where curricular changes are discussed and approved.  We solicit their input on the impact of proposed curricular changes on current students.

c. Given current social context, is there enough emphasis placed on matters of finance and ethics (among other disciplines mentioned)? However, B&FP committee recognizes this is a perpetual challenge as specializations gain degree status.

Finance and ethics are covered within the business core, which is common to all degree programs.  We have separate accreditation requirements to address these issues through our accrediting agency, the Association to Advance Collegiate Schools of Business (AACSB).   We are currently in our self‐study for our re‐accreditation.  We would be happy to share our self‐study results in these curricular areas with the committee if that would be helpful (once they are completed).

Thank you for the opportunity to respond to your concerns.  

Jim

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James R. Coakley, PhDAssociate Dean for Academic ProgramsCollege of BusinessOregon State UniversityBexell Hall 200Corvallis, OR 97331

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March 6, 2009 To: Dan Dowhower Academic Planning and Assessment Coordinator From: Carol Brown, Curriculum Council Chair The Curriculum Council reviewed the following four College of Business Category I proposals:

BS & BA in Business Information Systems BS & BA in Finance BS & BA in Management BS & BA in Marketing

The Council requested two additional items from the proposer, Jim Coakley, which have been included in each of the proposals:

Preparation of an Executive Summary Clarification of the difference between the BA and BS

The Curriculum Council recommends that the four proposals be forwarded to the Executive Committee for review and subsequent inclusion and approval at an upcoming Faculty Senate meeting.