georgetown business fall/winter 1998

Bob McDonough’s Lasting Legacy

Introducing Dean Chris Puto

The Sound of Music

FALL / WINTER 1998 volume 11 number 1Businesst h e r ob e rt e m m e t t mc d on o u g h s c ho ol of b u s i n e s s

Georgetown

Georgetown Business is published during the academic year by The McDonough School of Business for alumni, parents,friends, and business colleagues

Dean Christopher P. Puto, Ph.D.

Senior Associate DeanWilliam Droms, Ph.D.

Editor Elisabeth Liptak

Associate Editor Elizabeth Shine

Contributing Writers Bindu Vaswani b’00Cheryl Arndt mba’99Leigh Jackman mba’00Nan Wang mba’00

Designer Nancy Van Meter

Photographers Philip HumnickyJennie Lam-NagataEvan ShephardKeith Tishken

Inquiries and updates should be sent to:

Georgetown Businessdean’s officegeorgetown universitythe mcdonough school of businessold north buildingwashington dc 20057

phone: 202-687-4080

Georgetown Businesswelcomes opinions and commentsexpressed by its readers. Lettersshould be addressed to:

the editorGeorgetown Business

dean’s officegeorgetown universitythe mcdonough school of businesswashington dc 20057

1Fall / Winter 1998

WEL

CO

ME

CONTENTS

Inside Information . . . . . . . . . . . . . 2

The Sound of Music . . . . . . . . . . . . 6

IEMBAs Experience the Asian Market. . . . . . . . . . . . . . . 8

Coming Full Circle . . . . . . . . . . . . . 10

Imagining the Returns on a Naming Investment . . . . . . . 12

IPOs: Aftermarket Stock Price Support or Market Manipulation? . . . . . . . . . 16

Faculty and Staff News . . . . . . . . 19

Alumni Notes. . . . . . . . . . . . . . . . . 23

LETTER FROM THE EDITOR

Some stories - and some issues — seem to write themselves. In putting thisissue together, the feature articles were a given. A new dean. A $30 millionnaming gift.

It all unfolded in July. Chris Puto began his tenure as the new dean of thebusiness school after nine years at the University of Arizona, where he mostrecently served as director of their MBA program. Just two weeks later, Robert McDonough visited the Georgetown campus to finalize theplans for his $30 million gift to the School of Business. Things haven’t been the same since.

To begin with, we have a new identity — The Robert Emmett McDonoughSchool of Business or The McDonough School of Business, for short.No relation to the other McDonoughs of Georgetown fame, as you will read in the cover feature.

As with any transition, phasing in the new name will take time. Before wewere GSB, now you will begin to see references to MSB. Callers to the busi-ness school are now greeted with “The McDonough School of Business.”At least for now, this magazine will still be Georgetown Business.

Elisabeth Liptak

Does Telecommuting Work?

Now that technology enables a viable linkbetween work and home, more employees are opt-ing to work out of their homes. Telecommuting canbe a worker’s dream - if it is well planned and sup-ported by the company. A study by managementcommunications professor Lamar Reinsch focuseson the relationship between telecommuting workersand their managers as the key ingredient in makingthe telecommuting arrangement succeed.

Reinsch surveyed over 100 telecommuters atseveral large companies on the east coast to learnmore about the dynamics of telecommuting.Although the respondents generally regarded theirtelecommuting experience as successful, survey resultssuggest that the picture may be more complex.

If the telecommuting relationship is long-term,for example, the relationship between telecom-muters and their managers may deteriorate after aninitial “honeymoon.” Possible causes are a reductionin socialization and corporate loyalty for the worker,leading the worker to operate like an “independentcontractor.”

With the attractiveness of telecommuting onthe rise, what can organizations do to increase itschance of success? In addition to looking at thetasks to be performed, personality traits, and perfor-mance indicators, Reinsch’s study suggests thatorganizations consider the relationship between theworker and manager when selecting telecommuters.The findings also suggest that organizations consid-er part-time rather than full-time telecommutingarrangements.

The article based on Reinsch’s research, “Rela-tionships Between Telecommuting Workers andTheir Managers,” which appeared in the October1997 issue of The Journal of Business Communication,received the distinguished publication award for 1997from the Association for Business Communication.

HDTV...Coming Soon To a Neighborhood Near You

On November 1st, digital television wasintroduced in more than 30 major markets acrossthe United States. But most households missed thehistoric rollout due to the lack of availability andhigh cost of digital television sets.

Both the promise and the problems surround-ing the implementation of digital television, whichhas been more than 10 years in the making, werehighlighted in a Georgetown Executive Programsforum held on Capitol Hill this summer.

Digital television began as an engineering chal-lenge in the 1980s, when the “Grand Alliance” ofmanufacturers sought to develop a standard for digi-tal television sets. Now the challenge is a businessone. “The big question is whether there is sufficientconsumer demand for digital television and at whatcost,” said Dr. Joseph Kraemer, vice president ofA.T. Kearney, a management consulting firm thathas studied the business opportunities in digital tele-vision.

Dr. Paul Liao, chief technology officer at Pana-sonic, estimated that his company would initiallyprice digital television sets from $2,000 to $6,000,but that the prices were expected to drop rapidly.Panasonic projects that 50-100,000 sets will be soldin the first year.

The wholesale adoption of digital televisionmay seem like a distant vision, but most of theforum participants predicted a transformed broad-casting industry—with such services as video ondemand and interactive television—as a result ofthe convergence of the computer and broadcastingindustries. “We will be fellow travelers [with thebroadcasters] on a new road,” said Barbarz Lopez,digital broadcast marketing manager for Intel.

Although the government-mandated conver-sion to digital television will eventually affect everyconsumer when the switch to digital television iscomplete, the short-term picture is far less clear.

Inside Information

2 The McDonough School of Business

The Best of the Best

Required courses are the

hallmark of MBA pro-

grams, but the number

and variety of elective

courses grows each year

and helps attract prospec-

tive students. So Business

Week Online’s 1998 pro-

file of the best b-schools

asked MBA students to

rank the most popular

electives at their schools.

Georgetown MBAs chose

electives in finance —

Advanced Corporate

Finance, Negotiated

Mergers and Acquisitions,

and Financial Statement

Analysis — along with

Managing the Interna-

tional Enterprise, Global

Logistics and

Entrepreneurship —

as their top picks.

Favorite profs cited were

Bardia Kamrad, Ken

Homa, Ricardo Ernst, Paul

Almeida, Allan Eberhart,

John Dealy, and Catherine

Langlois.

Immersed in the Language of Business

First-year MBAs jump-started their careers asstudents in the first integrated course of the newMBA curriculum that debuted in August. Designedto immerse the incoming class in the language ofbusiness, and particularly, the case method, studentsnot only learned basic finance, marketing, and strate-gy, but were also asked to apply it in a case competi-tion at the end of the week.

The “live” case focused on AES, a billion-dollarglobal energy company based in Arlington, Virginia,with the somewhat unorthodox mission “to have funand make money.” Senator Dale Bumpers (D-Ark.)provided background on the changing energy indus-try and the legislation he helped author on energyderegulation.

Student teams competed by developing andpresenting a strategy for AES. Having developed astrategy for the company in the semi-final rounds,two finalist student teams were asked to re-evaluatetheir strategy in the wake of hypothetical challenges,such as economic collapse in Russia, problems inAsia, and the resignation of the CEO.

The AES management team leading the livecase wanted students to come away with the ideathat companies can be structured with the goal ofintegrating personal and work lives. “But the mostimportant thing, which is often hard for strategical-ly-oriented business students to see, is that our orga-nizational structure is not about improving thefinancial bottom line,” said Paul Burdick (IEMBA‘97), a vice president with AES.

John Bonds (MBA ‘00), a member of the win-ning team, found the experience intense butextremely valuable because it laid the groundworknot only academically, but also in teambuilding andproblem-solving skills. “The case competition madea lot of students think about the difference betweenmaximizing shareholder value or stakeholder wealth.Everyone wrestled with the unusual company thatAES is.”

Revving Up for Statistical Analysis

Decision science students were in full throttlefor a tour of the Harley Davidson plant in

York, Pennsylvania on November 6.Designed to show students the practical appli-

cations of statistical theory, the tour focused on therole of statistics in Harley Davidson’s quality controlpractices and their efforts to attain ISO9000, thehighest international quality control standard.

Harley Davidson was attractive for several rea-sons, according to statistics professor Jackie Hoell,who organized the tour, along with professors CarlaInclan and Keith Ord. “Quality control, which isstatistics-based, was vital to the company’sturnaround in the mid-1980s,” said Hoell. “We hadthe Harley case written by Professor Rob Grant, theHarley plant was accessible and they were willing totailor their plant tour to meet our educationalrequirements.”

The tour is part of a growing initiative byGeorgetown professors to bring experiential learningto the classroom. “We wanted to show the studentsthe real-world implications of what they were learn-ing in class,” said Hoell.

Students appreciated the exposure to statistics inaction. “Stats in class is one thing,” said SashaSpencer (B’01). “Seeing the practical implications ofstatistics helps make it real.”

3Fall / Winter 1998

MBAs Attend NBMBAA

Nita Brown (MBA ‘00) and

Class of 1999 students

Sean McLeod, Rick Single-

ton and Robert Wilhite

represented Georgetown

MBAs in the annual

National Black MBA Asso-

ciation (NBMBAA) Confer-

ence’s Student Case Analy-

sis and Presentation

Competition in Detroit

September 16-20.

African-American students

from the nation’s top busi-

ness schools were asked

to predict the next mega-

merger among the auto

industry’s major players,

providing an opportunity

to demonstrate the ana-

lytical and problem-solv-

ing skills learned during

their MBA studies.

The NBMBAA conference

is designed to meet the

professional development,

mentoring and network-

ing needs of African

American MBAs, business

entrepreneurs and stu-

dents. Over 9,000 partici-

pants attended this year’s

conference.

The employee parking lot at Harley Davidson

Examining the Business/City Partnership

Does an American business have a responsi-bility to the city in which it is located? That was thequestion addressed by the panel, “Business and theAmerican City,” sponsored by the Students forResponsible Business and the John F. Connelly Pro-gram in Business Ethics on September 17. The pan-el was moderated by David Gergen, editor-at-largeof U.S. News & World Report, and featured animpressive roster of panelists from business and gov-ernment across the United States.

American cities are currently plagued with amyriad of problems — educational deficiencies, ser-vice inadequacies, lack of employment — all ofwhich promote a negative perception. “Cities alsooffer business certain opportunities,” said JohnNorquist, mayor of Milwaukee and author of TheWealth of Cities. “Businesses owe it to society to rec-ognize and capitalize on these opportunities bycommitting the necessary financial resources.”

What business can do to reverse the decline ofcities was addressed by the other panel members,including: William Byron, rector and distinguishedprofessor of management at Georgetown; DonnaKlein, vice president of workforce effectiveness forMarriott International; Bill Pascrell, U.S. congress-man from New Jersey’s Eighth District; CharlesRial, chairman of the management committee forShorebank; and Whitney Tilson, co-founder of theInitiative for a Competitive Inner City.

“The panel was designed to highlight thatethics is an important part of the business educationat Georgetown,” said George Brenkert, director ofthe Connelly Program and a professor at the Schoolof Business, who hopes to sponsor a similar eventevery year.

Does Volatility Necessarily Mean Instability?

Volatility is inevitable in stock markets. Buttoo much volatility understandably makes investorsnervous, especially in emerging markets.

Delegates from forty countries met amid con-tinuing turmoil in global markets to discuss marketvolatility and analyze the differences between ‘good’and ‘bad’ volatility at the fourth annual AlternativeStructures for Securities Markets conference orga-nized by the Capital Markets Research Center.

“Volatility due to market manipulation is ‘bad’volatility and causes concern,” said Professor ReenaAggarwal, the program chair. “Emerging marketsneed appropriate disclosure and insider trading reg-ulations to help manage erratic markets.” The recentfinancial crises have highlighted other concerns fac-ing emerging stock markets, such as the need formore stringent accounting procedures and markettransparency.

Keynote speaker Frank G. Zarb, chairman ofthe National Association of Securities Dealers, Inc.predicted there would be more linkages betweenstock exchanges, such as the link between Nasdaqand the Deutsche Bôrse. “Ultimately, there will bereal time executions across continents,” said Zarb.“We would execute trades when other markets areclosed and others could execute trades when ourmarkets are closed, using real time data.”

Aggarwal applauded Zarb for his vision, butsounded a warning note. “Globalization offers lotsof opportunities, but also a number of challenges forstock exchanges and the regulation of securitiesmarkets,” said Aggarwal. “More co-ordination isneeded between countries to address these issues.”

Economic Crisis andPolitical Change inSoutheast Asia

Weaving together recent

events in Southeast Asia,

the government-ordered

bailout of Long-Term

Capital Management, and

the impact of the Asian

financial crisis on U.S.

farmers, Senator Richard

Lugar (R-Indiana) called

for a major overhaul of

the international financial

system. The occasion was

the Southeast Asia Forum

on September 28, a series

for congressional staff,

government officials, and

business hosted by the

School of Business and the

School of Foreign Service.

The forum featured

updates on the political

and economic climate in

Vietnam, Thailand, the

Philippines, Malaysia and

Indonesia. Regional secu-

rity implications were also

addressed.


Senator Richard Lugar

(R-Indiana)

David Gergen, editor-at-large, U.S. News & World Report

Do Ethical Investment Boycotts Affect a Company’s Cost of Capital?

South Africa, tobacco, and human rights werethe hot buttons for socially responsible investorswho sought to eliminate them from their portfoliosin the 1980s. Today, the environment, the weaponsindustry and gambling have been added to the list ofindustries that some investors choose to avoid forethical reasons.

While there have been a number of studiesfocusing on the performance of ethical investments— with no conclusive answers — finance professorsJames Angel and Pietra Rivoli are the first to studywhether socially responsible investment policiesimpose a cost upon firms who are targeted byinvestors. They conclude that divestment of a com-pany’s stock from portfolios for ethical reasons willincrease the cost of a firm’s equity, but that it wouldtake a large investor boycott - over 80% — to signif-icantly affect a company’s cost of capital. However,even small increases in the cost of capital can signifi-cantly affect stock prices.

“If investors want to affect a company throughdivestment, their strategy should be to band togeth-er with other investors. A small investor will nothave much effect,” says Professor Pietra Rivoli.

Ethical investing is more than a passing interestto both investors and the investment community.The number of service providers is growing and nowconsists of more than 150 mutual funds that screenout companies from their portfolios and engage inother forms of investor activism.

Angel and Rivoli’s article, “Does Ethical Invest-ing Impose a Cost Upon the Firm?” in The Journalof Investing (winter 1997), captured the attention ofthe investment community. Angel addressed TheColloquium on Socially Responsible Investing atthe University of Chicago, and Rivoli participated ina discussion on social screening and shareholder val-ue at the Investor Responsibility Research Centerconference in Washington, D.C.

Slamdunking the Market

This year the Big East Conference means morethan watching the Hoyas shoot hoops. During thefour-month college basketball season, an undergrad-uate team from the Class of ‘99 will play the marketto compete for $25,000 for Georgetown’s scholar-ship funds.

The contest, sponsored by Tucker AnthonyIncorporated, the official investment brokerage firmof the Big East Conference, involves student teamsselecting and managing a hypothetical $250,000portfolio. Portfolios were submitted on October 22.Winning schools are determined by the greatesttotal return performance of the portfolios as of mar-ket close on February 11, 1999. The winning teamwill travel to New York City to see the 1999 BigEast Championship at Madison Square Garden.

With only four months to earn high returns,team members Melissa Lucas, Courtney Droms,Christopher Kenny, Jude Gorman, and MichaelSalemi have selected a highly aggressive portfolio,including stock in Amazon.com, BB&T Bank,Hasbro, Nokia, Quik, and Wal-Mart. “We’re look-ing for real fliers,” said Melissa Lucas, who is captainof Georgetown’s track team.

As of November 9, the McDonough team’sportfolio held fourth place among investment teamsfrom the 13 colleges and universities that competein the Big East. The team plans to make its firsttrade soon, focusing on retail stocks in the run up tothe holidays.

“We’re ready for New York,” said Lucas. Watchfor the McDonough team’s performance in thespring issue of Georgetown Business.

MSB is for CPAs

Ever wonder how many

partners of Big 5 account-

ing firms are alumni of

Georgetown University?

According to Bowman’s

Accounting Report of 800

universities nationwide,

Georgetown ranks 15th

in the country, ahead of

many larger programs

and universities.

Georgetown also ranks

ahead of all area schools,

including University of

Virginia (#28), University

of Maryland (#30) and

George Washington

University (#35).

If the current pass rates

of Georgetown alumni

on the CPA exam are any

indication, this trend is

likely to continue. Results

from the May and

November 1997 CPA

exam place Georgetown

#1 and #4 in the nation

on the audit section.

Pass rates on the other

sections were also well

above the national

average.

5Fall / Winter 1998


Robert Bowlin (B’75)

f you are thinking ofa career in the musicbusiness, think glob-al. Robert Bowlin(B’75), president of

Sony Music International, logs about 120days a year in international travel in theincreasingly global music business.

The introduction of the compact diskand the maturing of the U.S. market havepointed the music business outside of theU.S. since the 1980s. American entertain-ment continues to be a huge export today,with the sound track from the recentmovie Titanic selling 16 million of its 25million album units outside of the UnitedStates.

Bowlin looks to Asia and LatinAmerica for growth potential. “Within fif-teen to twenty years, the Asian music mar-ket will rival the U.S.,” predicts Bowlin.Although it is only about $250 millionannually, the Asian music market is poisedfor growth. “The singer/songwriter willemerge in China and will dominate theentertainment business in that region.”

The global financial crisis in Asia hascreated a temporary setback, though, withbusiness off 35%. “Our catalog business isdown and the emerging artist may suffer.But ours is a hit-driven business. The bighits, like Celine Dion, Mariah Carey, andCoCo Lee, will still sell,” says Bowlin.

An accounting major at Georgetown,Bowlin may have had an unusual path intothe music world. He worked with PriceWaterhouse for sixteen years after gradua-tion. As a partner with a number of enter-tainment clients, he caught the attentionof Mickey Schulhof, then the CEO ofSony Music. Bowlin subsequently landed ajob at the music company as its CFO. Hebecame increasingly involved in the inter-national aspects of the business and movedinto the operations side. In 1994, he was

named president of Sony Music Interna-tional, a $3 billion division of Sony Music.

Although he played the trumpet as aboy, Bowlin brings no other musical back-ground to the job except a love of music.“One of the legends of the business, MoAustin [of Warner fame and currently withDreamWorks], also started as an accoun-tant,” says Bowlin. “You don’t have to be amusician to be successful in this business,you just need an affinity for music.”

The Sound of Music Resonates with Two Alums

I

Robert Bowlin

7Fall / Winter 1998 1998

Marcus Johnson (MBA/JD ‘97)

he life of a musicianon tour may seemgrueling to some,but Marcus Johnsonfigures that life in a

law or consulting firm can be equally gru-eling. And not nearly as lucrative or fun.

Since graduating in 1997 with a jointdegree in law and business, Johnson is clear-ly enjoying himself.The musicianentrepreneur released two independentCDs through his own company, MarimeljEntertainment, and recently debuted Choco-late City Groovin,’ with N2K EncodedMusic.The self-taught keyboardist wrotemost of the material, which he describes asinstrumental R&B. “I hesitate to call itjazz,” he says. “It’s jazz with an urban vibe,music that makes your neck move.”

Johnson sees no conflict in being bothmusician and businessman and drawsinspiration from other musicalentrepreneurs such as Quincy Jones,George Duke, and Gerald Albright.“Quincy Jones doesn’t sing, yet his best-selling works use vocals,” notes Johnson.“It’s about creating music that people like.Marketing is key.”

The target market for Johnson’s musicencompasses a wide demographic—25-54years old, male/female, and educated—thesmooth jazz aficionados. But even youngeraudiences enjoy the hip-hop beat.

The music business can be worse thana jungle, according to Johnson, so his back-ground in business and law comes in morethan handy. “My education helps me under-stand my attorneys and accountants,” saysJohnson. “When my accountant is throwingspreadsheets in front of me with amortizedcosts, I know how to respond. Most of all,my education gives me the confidence to doa lot of things I might not have.”

Like negotiating record contracts.

T

While he relishes the independence ofhaving his own company, Johnson’s recorddeal with N2K (Need to Know) offeredhim advantages such as greater distribu-tion. So far, the CD is selling well.

Down the road, he hopes to be tour-ing less than the 300 days a year that istypical for musicians. He sees himself withhis own studio and its own artists, creatingcontent and music in-house. The musicalentrepreneur.

Marcus Johnson

While technology promises to bring glob-al markets closer, sometimes there is nosubstitute for hands-on exposure to

international business problems. To underscore thatpoint, the IEMBA class of 1999 became the fourthclass since the program’s inception to travel to desti-nations previously unknown in pursuit of the real-life challenges confronting global companies.

And travel they did. Starting with an orienta-tion in Hong Kong, the group logged over one mil-lion air miles in ten days and over half a millionadditional miles on the ground. The IEMBA stu-dents heard Hong Kong-based speakers addressissues relevant to working in the Asia-Pacific region,including success in eliminating corruption and theneed for close interaction between the private andpublic sectors to combat piracy in intellectual property.

A trip to Shenzhen, one of the special economiczones (SEZs) in the People’s Republic of China,highlighted the fact that Asia was in the midst of amajor economic crisis. Bamboo scaffoldings dottedthe landscape of Shenzhen - yet no constructionactivity was present at any of the sites.

After their regional orientation, the eight stu-dent teams scattered the Asian Pacific region to con-duct meetings and research for a six-month “con-sulting” project for their U.S.-based clients — AES,Bechtel, Hellmuth, Obata+Kassabaum (HOK),Ingram Micro, Nomadic Expeditions, Praxair,Retrieval Technologies, and Stride Rite Shoes.

Tapping the Mongolian Market

How can a small, young company based in New Jer-sey capitalize on the young, but rapidly changing,Mongolian tourist industry? That was the task forone IEMBA team advising Nomadic Expeditions, aspecialist in high-quality, special interest adventuretours to Mongolia, and Nomadic Expeditions Mon-golia, based in Ulaan Baatar, Mongolia.

As part of their fieldwork, the team met withU.S. Ambassador LaPorta (a Georgetown alumnus)and with Mongolian officials, including the Minis-ter of Finance, to discuss foreign investment anddevelopment of tourism.

IEMBA student Bruce Burton made the localnews, handling the televised interview with greatflair. “One of the surprises we found was the degreeto which such a small company experienced thesame types of difficulties—different managerialperspectives, sketchy internal communications andlack of data - that afflict larger companies,” saidBurton (IEMBA ‘99).

The team designed a model to help NomadicExpeditions expand its marketing efforts throughthe use of the Internet. It helped its Mongolianoperation expand services through improvements inits financial management system and its recruitmentand training of qualified tour guides.

On the Road to Singapore

Ingram Micro, a large information systems distribu-tion company, sought a financing mechanism thatcould extend credit to Asian resellers while mini-mizing the commercial risks of non-payment.Armed with new financing tools to enhance resellerpurchasing power, Ingram Micro Singapore wasseeking to strengthen business ties with its existingreseller base as well as attract business from otherresellers in the region.

The IEMBA team that worked with Ingramproposed credit insurance for the company’s resellersas a short-term solution that could be an effectivemarketing and financing tool to help minimize theloss of sales. The team also suggested leasing as a


By Foot, Jeep, Yak and Camel...By Richard Eng (IEMBA ‘99), John Gudas (IEMBA ‘99), and Professor Ilkka A. Ronkainen

Karen Flood, Karl Williams,

and Seth Grae on location

in China.

viable mid-term solution for those resellers carryingsales transactions greater than $20,000 to high-qual-ity national or multinational businesses.

While both credit insurance and leasing can beimplemented under the current Asian economicslump, an additional, longer-term solution that theIEMBA team proposed was the establishment of athird-party financing fund called an Asian ResellerFund.The fund would provide inventory financingdirectly to distributors and resellers, enabling Ingramto increase sales and ultimately empower its resellers.

Keds for China

The Stride Rite Corporation of Lexington, Mas-sachusetts put an IEMBA team on the job in Bei-jing and Shanghai to research the market for chil-dren’s shoes in China. The group met with Chinesegovernment officials to discuss the Chinese footwearindustry and children’s shoes, in particular. Beijing’slargest and most upscale mall provided the venue forprimary research on pricing, styling, and marketing.

“Our on-location research in China gave usmore knowledge than we could have imagined. Wefound government officials and factory owners sur-prisingly candid about the shoe industry,” said JohnGudas (IEMBA ‘99).

Divide and Conquer

In order to examine the impact of Chinese currencydevaluation for a large U.S. industrial gas company,one IEMBA team split up, half remaining in HongKong, while the other half traveled to the company’sjoint venture site in Beijing.

The Hong Kong group interviewed banking,market, and government officials on the potentialscenario of a Chinese currency devaluation with aneye towards exploring strategies the firm could employin China to mitigate potential direct exposure.

Meanwhile in Beijing, the rest of the group spoketo the energy company’s president/plant manager,chief financial officer, and sales team, in addition tomeeting with Chinese government officials to discussthe government’s plans regarding a devaluation.

The team’s findings regarding both direct andindirect exposure were presented to the sponsor’smanagement via teleconference one month after theteam’s return to the United States. The customer notonly endorsed the findings, but is also currentlyenacting several of the team’s strategies to mitigateits future risks.

Anyong haseyo? (Hello - are you at peace?)

Hellmuth, Obata + Kassabaum (HOK), an architec-tural services firms, had successfully completed a jobin South Korea and sought information on thepotential for future work and market entry strategies.

The IEMBA group working for HOK discov-ered that industry perceptions about doing businesswith American architectural services firms was per-haps their most worthwhile learning experience. Ingeneral, they found that the Koreans view Americanarchitectural firms as technically better at design, pro-ject management, staying within budget, and meetingdeadlines. But they also found American firms toolitigious and inflexible in their adherence to contractterms, overly concerned about cost and schedule, andunfamiliar with the Korean business culture.

Technology has made instantaneous communi-cation around the world possible. But as the IEM-BA students discovered through their Asian resi-dency, nothing replaces the value of face-to-facecommunication.

IEMBA team members

with the president of

Nomadic Expeditions,

Jalsa Urubshurow

(far right) during their

trip to Mongolia.

9Fall / Winter 1998

IEMBAs Experience the Asian Market

It may be a long way from Mobile, butto Chris Puto, the Georgetown cam-pus feels a lot like home. After spend-ing his academic career at Duke, theUniversity of Michigan, and the Uni-versity of Arizona, the new businessschool dean jumped at the opportunityto come to Washington.

“Stepping onto the Georgetown campusevoked the same feelings I had as an undergraduateat Spring Hill College. While I saw this as atremendous opportunity to be part of a first-rateinstitution known all over the world, on another lev-el, it was an opportunity for me to give back to theJesuits what they gave to me,” he says.

Since arriving on campus in July, Puto hashardly had time to look back. Overseeing the imple-mentation of the new MBA curriculum, meetingwith alumni and board members around the coun-try, and interviewing new faculty recruits are just afew of the things keeping him busy. “Every universi-ty has a unique culture. I’m trying to understand theGeorgetown environment as thoroughly as I can,”he explains.

Understanding what motivates people perhapscomes naturally to Puto, who has a minor in psy-chology along with a Ph.D. in marketing fromDuke University. Even his award-winning researchfocuses on understanding how consumers makedecisions.

Students are the major constituency Puto wantsto understand. Soon after they arrived on campus inSeptember, he spoke to undergraduate and MBAstudents in separate forums, letting them know hisdoor was always open if students needed to talk tohim. “Students are the renewal factor for universi-ties,” says Puto. “Each year, new students arrive thatreflect the issues prevalent in society at that time. Itis critical that we keep in touch with what is moti-vating students, as well as what is frustrating them.”

The undergraduate program figures into thenew dean’s immediate goals. “The undergraduatestudents provide a sense of continuity by being herefor four years. We need to provide them with thebest possible business education during their timehere,” he says. To ensure this, Puto created a taskforce to look at the entire undergraduate experience,including curriculum, co-curricular activities, advis-ing, and interfacing with other parts of the university.

MBA students get equal face time with thenew dean, who might turn up for a club activity ifhis schedule permits. As students at the Universityof Arizona discovered, this is vintage Puto. OneMBA student commented in the recent BusinessWeek ranking, “Chris Puto spends a lot of time com-municating and working with students to constantlyimprove the program.” Another raved, “Dr. Puto isthe driving-force behind transforming this programinto a top-25 program.”

Puto also wants to understand what motivatesthe faculty at Georgetown. Impressed by theirstrong commitment to Georgetown and its stu-dents, he would like to foster an environment wherefaculty who are primarily interested in the classroomcan thrive alongside those with specific researchinterests. “Institutions need both to survive,” hemaintains.

He also believes that Georgetown, like mostgood business schools, must operate at the optimumintersection of theory and practice. “Many schoolsare extremely theoretical and are challenged in therelevancy area, others are heavily applied and do notcontribute much to theory,” says Puto. “I would likeus to be one of the schools proficient at both, andthat is a big challenge.”


Coming Full Circle:

International business is an area of proficiencythe new dean hopes to leverage in all of its facets —research, teaching, and recruiting. Puto recently con-vened an international business task force to assesswhere Georgetown stands in comparison to otherprominent business schools and, in particular, otherinternationally-focused business schools, to ensurethat the school is maximizing this area of expertise.

Before receiving his Ph.D. in marketing, Putospent eleven years in the private sector in the salesand marketing arena. He worked on positioning andstrategy development for the Burger King Corpora-tion and was instrumental in their successful “HaveIt Your Way” campaign in the 1970s. After workingfor Quaker State Motor Oil and the automotiveindustry, Puto decided he had earned enough moneyto temporarily “retire.” He spent eighteen months inInnsbrück, Austria learning to ski and speak German.

“I came to the conclusion that I wanted to dosomething that had a positive influence on otherpeople’s lives. While there are lots of choices one canmake, the one that seemed to fit with my skills andbackground was education,” says Puto.

For two years, he taught at Appalachian State, asmall college in rural North Carolina. Realizing thathe loved teaching, Puto applied to Duke University’sPh.D. program and became their first doctoral grad-uate in business.

The University of Michigan offered Puto anassistant professorship and a glimpse into a largeand successful business school environment. But theUniversity of Arizona is where Puto feels he finallycame into his own. He held joint teaching appoint-ments in marketing and psychology, and eventuallydirected the Karl Eller Graduate School of Manage-ment, moving it from an unranked position in 1992to 50th in 1995 and 35th in the 1997 U.S. News &World Report.

Although he was quite content to continuewatching Arizona rise in prominence, a call invitinghim to apply for the deanship at Georgetown’s busi-ness school intrigued him. Georgetown possessed allof the right attributes: excellent students, a strongand committed faculty, and — a marketer’s dream -a powerful brand name. “Georgetown is clearlypoised to make a major move in the global businesscommunity. I wanted to be a part of that,” he says.

An unexpected stroke of good fortune greetedPuto shortly after he accepted the dean’s position - a$30 million gift from Robert McDonough. As fatewould have it, the two share a thing or two in com-mon. Bob McDonough spent the early years of hiscareer in Alabama. And both owe a great deal ofgratitude to their undergraduate Jesuit training.

Elisabeth Liptak

11Fall / Winter 1998

A Profile of New Dean Christopher Puto

Chris Puto


Unlike his namesake, Robert Emmett McDonough (F’49) doesn’t have to

worry about who will write his epitaph or the circumstances under which it

will be written. McDonough recently gave $30 million to name the busi-

ness school, ensuring his legacy at Georgetown as surely as Robert Emmet

ensured his in the annals of Irish history.

McDonough’s gift is the largest in Georgetown’s history and ties with

two other universities as the third-largest naming gift ever given to an

American business school. “Bob McDonough’s unprecedented gift expands

the School of Business’ potential for growth and advancement tremendous-

ly,” said Chris Puto, dean of the new McDonough School.

In explaining his decision to name the business school, McDonough

noted that business was “where I made my mark. Business was my life.”

But when speaking about the future of business, McDonough remembers

his education in the School of Foreign Service, making an analogy between

diplomacy and business. “Business is global warfare without bullets,” says

McDonough. “We need strong businesses with strong leaders.” He envi-

sions his gift as generating the momentum necessary to become “the pre-

eminent business school in the United States.”

As the chairman and chief executive officer of Remedy Temporary

Services in Aliso Viejo, California, McDonough oversees a company that

today has 230 offices nationwide and average annual billings of $500 mil-

lion. In 1965, as a successful executive in the oil business in Alabama, he

saw California flourish in the post-war boom, and predicted temporary ser-

vices would be necessary to fuel the rapidly growing economy. Leaving

behind the corporate life, he moved his family to California, as

McDonough puts it “sight unseen.” He opened the first RemedyTemp

office, and started again from scratch.

Imagining the Returns On a Naming Investment

Robert Emmet, the great Irish patriot who was martyred in

1803 for leading a rebellion against the English, became

legendary for the speech he delivered before his execution:

Let no man write my epitaph...

When my country takes her place among the nations of the earth,

then and not till then let my epitaph be written.


Although McDonoughworked in the corporate worldbefore starting his own compa-ny, his entrepreneurial instinctswere evident from an early age.As a newspaper boy in Chica-go during the Depression, heentered a contest to sell themost subscriptions.McDonough coveted theprize, a shiny red bike. “Duringthe Depression, you couldn’task your parents for anything,”recalls McDonough. “And Idesperately wanted that bike.The competition was stiff, butI had a bit of imagination. Itwas winter, and people wouldhave to run to the corner tobuy their papers. I’d followthem home, and say ‘Isn’t thatterribly inconvenient? Can’t Ido that for you?’ They said,‘What about the rain andsnow?’ I said, ‘I’m BobMcDonough. I promise youwill never have a wet newspa-per.’ So the newsstand lost a lotof business, and I won thebike.”

Imagination drew him toGeorgetown, determinationkept him there. “The first time

I set foot on campus, I froze,”says McDonough. “I lookedaround, and I saw John Car-roll, and I saw Healy Hall andsomething hit me. I immedi-ately felt like I belonged.” ButMcDonough didn’t have iteasy. Married, with one childand a second on the way, heworked as a guard at the U.S.Capitol during the day and rana boarding house to make endsmeet, and attended George-town at night.

McDonough matriculatedin the School of Foreign Ser-vice (Georgetown lacked abusiness school before 1957).Having served in the Mer-chant Marine during WorldWar II and with the UnitedNations in Yugoslavia,McDonough understood theimportance of having a globaloutlook. At Georgetown, hisacademic experience broad-ened his mind and deepenedhis international perspective.“In a real way, Georgetownexpanded my mind, my think-ing,” says McDonough. “Youcan’t get through Georgetownwithout thinking globally.”

Two of McDonough’sgrandchildren are continuingthe Hoya tradition. DavidMcDonough is a sophomoreat Georgetown. MeaghanMikos (C’91, G’95) earnedher MBA from the School ofBusiness. “It is a great honorto have the School of Businessnamed for my grandfather,”says Mikos. “I hope the giftwill continue to raise theSchool’s profile.”

Just by naming the busi-ness school, McDonough has

raised its profile, as media cov-erage generated by the gift inThe Washington Post, The NewYork Times, The Los AngelesTimes and various other publi-cations has shown. But sus-taining such momentumrequires using the gift withwisdom and “a bit of imagina-tion”-qualities inherent inmaking McDonough the suc-cessful individual he is today.The gift is only the beginning.

Elizabeth Shine

Unveiling the business school’s new identity


Bob McDonough Day

October 7th was declared Bob McDonough Dayby the business school, which hosted a series of events inhonor of its new namesake.

Rumblings about the identity of the donor could beheard in hallways and in classrooms for several weeksleading up to the day. But it was not until 11:30 a.m.,when Bob McDonough appeared before a packed audi-ence gathered in Gaston Hall, that the business schoolwas formally introduced to its benefactor.

Leo J. O’Donovan, S.J., president of GeorgetownUniversity, spoke personally and, at times, humorously, ofMcDonough’s dedicated service to Georgetown. “WhenBob interviews prospective students, no, make that inter-rogates students who want to come to Georgetown...,” hejoked.

McDonough charmed the audience, reminiscingabout his days as a Georgetown student. “Girls were thebest thing that ever happened to Georgetown,” herecalled. “The guys started to comb their hair and be moreattentive to the way they looked.”

McDonough closed by letting the audience in on asecret. “Father O’Donovan doesn’t know this,” he began,“but Georgetown never billed me for my last semester.But I figure that with inflation and the cost of capital overall these years, we are just about even.”

Christopher Puto, the new dean of The RobertEmmett McDonough School of Business, added amoment of drama by unveiling the school’s new name. OfMcDonough’s generosity, he said, “Bob McDonough’sgift, above all, symbolizes his unwavering belief in thefuture of this school.”

The celebration continued under the Healy tent,where mugs and mousepads bearing the school’s newname were handed out. McDonough clearly relishedevery minute of the day with his new extended family.

The MagnanimousMcDonoughs of Georgetown

Georgetown’s history is dotted

with McDonoughs.

Built in 1951, McDonough Gym was

named for Vincent S. McDonough, S.J.,

director of athletics from 1916 to 1928.

Affectionately known as “Father Mac,”

McDonough campaigned long and

hard for a new gym. Shortly before his

death in 1939, McDonough celebrated

23 years at Georgetown. When asked

what gift he would appreciate to mark

his service, he replied: “You give the

boys a gym and I’ll be happy.” A com-

mittee was formed in 1947 to raise

funds for a gym in his honor.

Bernard Patrick McDonough’s (L’25) $1

million gift, then the largest donation

in the University’s history, made the

modern Law Center campus possible.

Like Bob McDonough, he was a self-

made millionaire, making his fortune in

manufacturing and construction. A

noted philanthropist, McDonough’s

generosity is aptly summarized in the

citation of his 1967 Georgetown hon-

orary degree: “The material rewards of

his ingenuity and indefatigable indus-

try he has, in a truly Christian spirit,

regarded as a stewardship for the bet-

terment of his fellow man. Many of his

contributions...are of public

record...many more are by his own

wish unheralded.” The Law Center’s

McDonough Hall is named in his honor.

These McDonoughs are related to Bob

McDonough only through their com-

mitment and generosity to George-

town. But the impact they made

ensures the McDonough name will

retain a proud place in the University’s

history.

Leo J. O’Donovan, S.J., president

of Georgetown University,

shares a light moment with

Bob McDonough, center, and

Dean Christopher Puto, right,

in Gaston Hall.


The regulations of theSecurities andExchange Commission(SEC) are generallyaimed at curbing vari-ous forms of “market

manipulation” in securities markets. How-ever, the SEC has long held the view that“stabilization activities” are useful in thecapital raising process.

Investment banks engage in stabiliza-tion activities after an initial public offer-ing (IPO) in order to provide price supportto weak offerings. On average, IPOs starttrading above the offer price but manywould drop in value if underwriters did notprovide such price support. In general, theSEC has viewed price declines in initialtrading as damaging to the distribution ofshares and thus to the capital raising process.

Finance research has paid little atten-tion to the specific activities of underwrit-ers in the aftermarket. These interventionsby the underwriters are not well-under-stood, because of both lack of data and lackof transparency in industry practices.There have been two main limitations inthe research. First, the literature has had tohypothesize which offerings were stabi-lized and which were not by using certainproxies because the information is notdirectly available. Second, the literature hashad to make assumptions about how theseactivities that provide price support arecarried out.

In my research, I analyze in detail thefollowing three forms of aftermarket activ-ities used to provide price support:

(1) Underwriters may post a stabilizing bid to pur-

chase shares at a price not exceeding the offer

price if the distribution of shares is not com-

plete. I refer to this direct intervention as “pure”

stabilization.

(2) Underwriters may assume a naked short posi-

tion prior to the offering and then cover the

position in the aftermarket.

(3) Underwriters may penalize members of the sell-

ing group whose customers quickly “flip” shares

in the aftermarket by taking away their selling

concession. This is referred to as a penalty bid.

In the first two cases the underwriterprovides price support by stimulatingdemand, and in the third case by restrict-ing supply.

“Pure Stabilization” and Rationale for Allowing It

Stabilization activities have been carriedout for a long time. On March 18, 1940,the SEC (in Release 2446), issued one ofits first statements on the problem of regu-lating the “pegging, fixing, and stabilizing”of security prices. The SEC stated that,“The Commission is unanimous in recog-nizing that stabilizing is a form of manipu-lation.” The dilemma faced by the regula-tors was whether to allow stabilizing tocontinue unregulated, to completely pro-hibit it, or to regulate it. One of the keyreasons given for stabilization was thatunderwriters do not have enough capital todo firm-commitment offerings and if theycannot perform these functions then capi-tal will not flow to industry. The tensionbetween price manipulation and capitalraising is evident even today. SEC Release38067 (in 1997) states:

“Although stabilization is a price influencing

activity intended to induce others to purchase

the offered security, when appropriately regu-

lated it is an effective mechanism for fostering

the orderly distribution of securities and pro-

motes the interests of shareholders, underwrit-

ers, and issuers.”

“Pure” stabilization allows underwrit-ers to post a stabilizing bid to purchaseshares at a price not to exceed the offerprice. These bids are also required to havea flag identifying them as stabilizationbids. It appears that one of the reasons whyunderwriters avoid using “pure” stabiliza-tion is that such a flag would send a clearsignal to the market that the offering is aweak one.

Why Short Covering is more effective in providing price supportthan “Pure” Stabilization

The SEC is aware that underwriters rarelyengage in classic stabilizing but engage insignificant aftermarket activities followingthe breaking of the syndicate. An alterna-tive to “pure” stabilization that does notrequire much disclosure is the practice ofunderwriters “overselling” the issue.

The overallotment or “Green Shoe”option allows the underwriter syndicate tosell additional shares up to a maximum of15 percent. It is, however, common for theunderwriting syndicate to be “naked short”over and beyond the Green Shoe. Ifdemand for the offering is weak, the shortposition is covered with shares purchasedin the aftermarket. In the situation wheredemand is strong, the short position is cov-ered by exercising the overallotmentoption. If the syndicate is “naked short”and demand is exceptionally strong, thenthe short position has to be covered bypurchases in the secondary market atprices above the offer price.

FACULTY FORUM:

IPOs: Aftermarket Stock Price Support or


In contrast to “pure” stabilization bids,which are required by regulation to bebelow or at the offer price, there are nosuch restrictions on short covering. Shortcovering can and does take place at pricesabove the offer price, and no flags arerequired to identify these transactions. Formost offerings, short covering is a tool forproviding price support.

The Use of Penalty Bids to Control Flipping

The third form of aftermarket activity isthe use of penalty bids. Each firm thatmakes up the selling group receives com-pensation called selling concession for eachshare distributed/sold by it. In typicalIPOs, underwriters receive a commissionof seven percent. Of this, 60 percent tendsto be selling concession and is paid to theselling group for distributing the shares. Ifthe distribution firm’s customers whobought in at the initial offer price sell theirshares in the first few days then penaltybids may be assessed on the distributingfirm. Assessment of penalty bids result inforfeiture of the selling concession receivedfor distribution of shares that are repur-chased for syndicate account in the sec-ondary market. Therefore, the discountfrom the offering price received by syndi-cate members can be recovered.

“Flipping” is the term used for sellingshares in the immediate aftermarket thathave been received in an initial allocation.When there is strong demand, underwrit-ers are happy to see flipping (and the com-missions the trading generates). But whenthere is weak demand, the resulting sellingpressure requires that the underwritereither stabilize the price or see it decline

below the offer price. On average, the vol-ume turnover on the first trading day of anoffering is 60-70 percent and poses a majorproblem for underwriters.

Research Findings

My research finds that underwriters playan important role in providing price sup-port for weak IPOs. The lead underwriteralso plays a very important role as a marketmaker in Nasdaq IPOs. Stock prices donot tend to fall after the price supportactivities are completed. Price support isnot provided by engaging in “pure” stabi-lization. Instead, short covering is the prin-cipal form by which price support is pro-vided. Short covering obtains the sameresults as “pure” stabilization but is lesscostly and has no disclosure requirements.

Penalty bids are found to be usedselectively and they tend to be assessedonly for weak offerings. I also find thatthese aftermarket activities are not expen-sive for the underwriting syndicate andamount to a very small proportion of thecompensation they receive. The resultsraise the question of whether SEC regula-tions with respect to stabilization activitiesare outdated.

Professor Aggarwal teaches and conductsresearch in finance at The McDonough Schoolof Business. Her current research focuses onIPOs in the U.S. and Europe and volatility in emerging markets. Last year, she was anacademic fellow at the Securities andExchange Commission in Washington, D.C.

Market Manipulation? By Professor Reena Aggarwal

Reena Aggarwal


Financial aid was recently enhanced with a $150,000 gift from Marc

Sulam (B’84). Sulam, a principal of equity research at Donaldson Lufkin

& Jenrette, serves on the school’s Graduate Advisory Board. “My experi-

ence at Georgetown was enhanced by the variety of people I met

there,” says Sulam. “By giving to financial aid, students in need can par-

ticipate in the Georgetown experience. It also motivates recipients to

replenish the fund when they graduate. This way, financial aid can con-

tinue to grow.”

Several members of the Parents’ Council have made $100,000

commitments to The McDonough School, including Mr. and Mrs. E. Holt

Williams, parents of Brett (C’00), who designated their gift to the Fund

for International Business.

“To join the small group of the world’s premier business schools,

we must have the resources to compete effectively,” says Chris Puto,

dean of The McDonough School. “The generosity demonstrated by our

alumni and friends is clear evidence of the school’s strength and direction.”

University Kicks Off Third Century Campaign

Bob McDonough’s (F’49) $30 million naming gift to the business

school, the largest in the University’s history, fortified the Third Century

Campaign kickoff on October 8.

The naming gift has allowed The McDonough’s School portion

of the campaign goal to increase from $60 million to $100 million. To

date, $57.7 million has been raised towards the new campaign goal.

Georgetown president Leo O’Donovan, S.J., and campaign chair Jack

Kennedy announced a University campaign goal of $750 million.

Commitments for a state-of-the-art facility for The McDonough

School received a significant boost with an anonymous $10 million com-

mitment from a business school parent. Other gifts for the facility

include $250,000 from C. Allen Merritt (B’62). Merritt, chief operating

officer of Liberty Financial Companies, Inc., recently joined The

McDonough School’s Board of Visitors and the school’s major gifts com-

mittee. Board of Visitors member Thomas L. Bindley (B’65) and Sarkis D.

Izmirlian (B’94) also recently pledged $100,000 each to support planning

and construction of a new facility. To date, $17.1 million has been raised

for this project.

Dividends


Going the Distance

What does an invest-ment banker have in commonwith a marathon runner? The challenge, the long hoursor the work ethic? Bill Byrnes(B’72, L’81), distinguishedprofessor of finance, wouldargue all of the above. Byrnesfinished his first marathonwhen he crossed the line in 5:28:23 at the annualMarine Corps Marathon on October 25.

Byrnes developed his passion for running whileworking as an investmentbanker. Running provided a release from the hectic paceof the job. Byrnes changed hisprofessional pace by leaving his position as managing direc-tor at Alex. Brown & Sons,Inc., to join the McDonoughfaculty this fall.

A native of Schenectady, NY,Byrnes spent five years as anassistant investment officer atMellon Bank. He thenreturned to Georgetown,where he taught finance from1977–81, before joining Alex.Brown.

Byrnes teaches mergers &acquisitions and investmentbanking to MBAs. Bringingplenty of real-world experienceto the classroom, he can alsooffer unique insight into oper-

ating a company. Byrnes is onthe board of directors of Med-itrust Operating Company.The CEO of Meditrustresigned in August, and theboard of directors is essentiallyrunning the company.

“Some specific issues I can’ttalk about in class,” Byrnesexplains, “but I can give stu-dents a broader understandingof the concepts behind theissues being discussed. Stu-dents can definitely benefitfrom that.”

Byrnes’ current focus may be toimpart to his students the req-uisite financial knowledge andwork ethic to succeed on WallStreet. But he is already look-ing ahead toward next fall’sobjectives. “My goal for nextyear is to [run the marathon]in under five hours.”

Practicing What She Teaches

Sue Dugan (SLL’77)knows a thing or two aboutcompetitive strategy, besidesteaching it to MBAs.

A linguistics student and acompetitive swimmer on themen’s team (Georgetown thenlacked a female swim team),she was the first female to winthe University’s Robert DuffyScholar-Athlete award.Although she was accepted tothe University of Pennsylva-nia’s linguistic Ph.D. program,she decided to earn an MBA,and applied to University ofMichigan’s business school.Fluent in Portuguese andSpanish, and armed with aMichigan MBA, she workedon corporate strategy for For-tune 500 corporations, and lat-er consulted with World Bankclients in Latin America andthe Caribbean. Fifteen yearsafter graduating from George-town, she was the first femaleathlete inducted into the Uni-versity’s Hall of Fame.

Dugan joined the Mac Group,a consulting firm, in the mid-80s, and spent two years inHong Kong, developing thefirm’s Southeast Asian businessopportunities. She joined theadjunct faculty at Georgetownin 1990, shortly after returningfrom Asia. Her international

business background makesher a natural to teach in thenew international MBA cur-riculum. “Business precepts arethe same the world over,” notesDugan. “It’s applying theseprinciples in different countriesthat gives a greater depth tobusiness problems.”

With four children, Dugandecided to put her consultingcareer on hold when she decid-ed to teach full time. But shehas no regrets about her deci-sion. “Consulting doesn’t offerthe intellectual stimulationteaching does,” says Dugan.“It’s fascinating to see thepotential interpretations stu-dents offer on a case.”

Faculty and Staff NEWS

Bill Byrnes Sue Dugan


In his most recent researchpaper, the statistics professorexplored an inventory modelwith order crossover and thecost savings resulting fromcooperative inventory planning.

Ord is impressed with thequality of his colleagues teach-ing and research, the spirit ofteamwork, and the new MBAcurriculum, which appeals tohis practical side. “The newMBA curriculum has a lot ofappeal,” said Ord. “It’s muchmore balanced with more flexibility.”

Taking the Sting Out of Statistics

Keith Ord is a practicalman. Ord, who is currentlyteaching undergraduatesapplied statistics six hours aweek, spends more time teach-ing students how to deal withreal business problems ratherthan taking a theoreticalapproach. “Simple statisticswill do as good a job as sittingaround and arguing aboutstatistics,” Ord said.

A man of the 1990s, Ord fol-lowed his wife to Washington,D.C. after she accepted a posi-tion at the Federal DrugAdministration. While pursu-ing a position in D.C., Ordcommuted between his priorposition at Penn State andWashington, D.C.

Ord had been teaching at PennState University since 1980.Prior to Penn State, he taughtfor 14 years at the Universityof Warwick and University ofBristol. Three years ago, hebecame the editor of the Inter-national Journal of Forecasting.

A Shirt-Sleeved Approachto Marketing Education

Whether it is advisinga retailer’s association aboutthe accuracy of price scannersor reviewing a company’s mar-keting material for messageconflicts, Ron Goodstein lovesto solve real business problems.

“I begin with the question:What is the business issuehere? Then I use academic the-ory to get a better answer for areal problem,” says Goodstein,who joined Georgetown’s mar-keting faculty this fall fromIndiana University.

Goodstein’s study on pricescanners in supermarkets is justone example of a real problemthat his research helped tosolve. Looking at the pattern ofpricing errors that occur withadvertised specials, end-of-aislespecials, and regularly pricedproducts, he found that retailerswere generally more motivatedto take action on pricingchanges that cost them moneyrather than the consumer.

The controversial findingsbrought some complaints bythe retail industry, but landedGoodstein on the board of theNational Institute of Standardsin Technology. Eventually, theindustry adopted 75% of hisrecommended methodology todevelop scanner accuracychecks.

Ron Goodstein

Communication is the overar-ching theme, though, in Good-stein’s research. “Everything acompany does communicatessomething to its customer,” hesays. Goodstein is particularlyinterested in studying whethera company’s communicationsconverge, in which case theirimpact will be much higher. Hepoints to an American carmanufacturer whose communi-cations he recently evaluated.“All of their advertising saysquality, but the showroom mes-sage is that they need a sale toclose the deal.”

As enthusiastic as he is aboutresearch, Goodstein is equallypassionate about teaching.“Teaching counts. It does mat-ter. But people can do greatresearch and be good teachers.I think there is a good balanceat Georgetown.”

Keith Ord


Less Yen for a CashReserve

The power of banks asshareholders and providers ofdebts for Japanese companieshas declined, according toRohan Williamson, whoresearches how banks aroundthe world handle liquidity.

“Banks used to have a lot morepower. They were the onesreally extracting rents fromshareholders and other firmsby forcing them to maintainenough cash to cover liabili-ties,” says Williamson. Henotes that as banks havebecome weaker, Japanese firmsare holding less cash than everbefore. “Early on, nearly 100%of firms’ debt was bank debt.This had dropped to 60–65%in 1995, and I suspect a lot lessin the last few years,” saysWilliamson.

He is anxious to see how thistrend plays out in the next few years as Japanese firmsturn to international capitalmarkets to raise cash. “BecauseJapanese markets are not asdeveloped as U.S. markets,Japanese firms will have todepend more on internationalbonds than American firms,”says Williamson.

Williamson, who teachesinternational finance to under-graduate business students,began his research while work-

ing for Chrysler during theeconomic downturn in the ear-ly 1990’s. In doing an initialstudy for Chrysler “we deter-mined that the company need-ed more cash to sustain themthrough recessionary periods”says Williamson. “A follow-upto that was looking at cashholdings in other countries.”

Williamson looks at the cur-rent global economic situationas a great learning experience.“We’re in a time now that isunlike that ever experiencedbefore. No one really knowswhat is going to happenbecause we can’t base it onanything that has happened inthe past. What we learn nowwill become valuable in five toten years,” says Williamson.

IN THE MEDIA

■ The McDonough naming gift received coverage in a variety of publi-

cations, including The Washington Post, The New York Times, and The

Los Angeles Times.

■ Christopher P. Puto, new dean of The McDonough School of Busi-

ness, was featured in a profile on selecting new business school deans in

the July 13th Washington Post.

■ The August edition of The Washingtonian featured The McDonough

MBA program in a profile of local area MBA programs.

■ The stock market’s September dip was The McDonough School’s

gain. Professor Reena Aggarwal was quoted on the subject of the

market dip’s effect on initial public offerings on the front page of

the September 2nd Wall Street Journal. Professor Jim Angel provided

some context on the 1929 stock market crash in the September 1st

Washington Post, and also commented on market crashes on NPR, CNN

and Australian television.

■ Professor Jim Angel was quoted about the proposed Goldman Sachs

initial public offering in the August 11th edition of The Washington Post.

■ A September 20th Washington Post article on bachelor degrees in

leadership included Professor Bob Bies’ opinion on these programs.

Rohan Williamson


Fourth Time Lucky

Bill Droms is back.

Droms assumed the positionof senior associate dean for the1998-99 academic year in July.Having previously served asthe associate dean for under-graduate programs, associatedean for graduate programs,and associate dean for faculty,Droms is not unfamiliar withsenior administrative posts.

“I took the position because Iwas on the new dean searchcommittee, and helped torecruit Chris [Puto] to George-town,” said Droms. “I felt anobligation to help Chris duringhis transition here, and to helpwith the implementation of thenew MBA curriculum.”

Droms has been at Georgetown26 years, and served under threedeans-Ron Smith, RobertParker, and now Chris Puto.

Gone, But Not Forgotten

Mergers and acquisi-tions won’t be the same forMcDonough MBAs this fall.After 16 years at Georgetown,John Dealy has retired fromteaching.

Year after year, Dealy, whoalso taught strategy and busi-ness planning, was a consistentfavorite among students inBusinessWeek’s MBA surveys.Formerly the president ofFairchild Industries, a Fortune500 company, Dealy was notedfor his rigorous, practicalapproach. Students in Dealy’sclasses earned their grades.“His significant intellect andhis amazing focus made hisclass demanding and interest-ing,” said former student JohnDelaney (L’89).

Dealy was no less demandingof himself. “Before my firstclass, I saturated myself inlearning in the field,” he said.“I wanted to teach the coursemy way, I didn’t want to followother professors.” He empha-sized the Socratic method,

“challenging the students’ log-ic, forcing them to defendwhat they said and why theysaid it.”

Since teaching the first gradu-ating class, Dealy has wit-nessed the MBA program’sevolution. He is especiallyproud of the strides womenhave made, noting that in theearly ‘80s, women were stilluncertain of their role in busi-ness. But male or female, noshrinking violets were allowedin Dealy’s class. He onceassigned a case on oil compa-nies to an all-female group inhis strategy class, overridingtheir groans about studyingthis male-dominated industry.“Not only did they give one ofthe most outstanding presenta-tions,” said Dealy. “But one ofthem ended up running an oilbrokerage.”

Explosive growth of Dealy’scompany, Dealy StrategyGroup, forced Dealy to retirefrom teaching. “I couldn’t doboth,” said Dealy. “I didn’twant to scale back to teachingpart-time, and only beingavailable to the students part-time. And I owe it to theyoung people who work in mycompany to be there for them.”

He encourages his former stu-dents to keep in contact withhim via e-mail. He can bereached at [email protected].

Bill Droms John Dealy

“His significant

intellect and his

amazing focus made

his class demanding

and interesting,”

said former student

John Delaney (L’89).

73 Barbara A. O’Boyle wasnamed vice president of the U.S.Export-Import Bank’s projectfinance division in March.

80 Kumar P. Barve has been amember of the Maryland Houseof Delegates since his election in1990. He currently serves as thechairman of the subcommittee onscience and technology. Kumarwelcomes any comments or sug-gestions from fellow Georgetownalumni who wish to share theirexpertise in high-technology eco-nomic development (e-mail himat: [email protected]).

80 Stephen A. Scheuerle isa lawyer with Gallagher, Reillyand Lachat, P.C., in Philadelphia,Pa. He, his wife, Linda, and theirthree sons, Harry Adam, OwenEric and Stephen Cole, reside inBryn Mawr, Pa., where Stephen isalso the president of the George-town Club of Philadelphia.

81 Geof Rochester is seniorvice president of sales and market-ing at Comcast Cable Communi-cations Inc. in Philadelphia.

84 Philip D. Baker, and hiswife, Jamie, own and operate Tal-bot Heirs Guesthouse, a luxuryhotel in downtown Memphis,Tennessee. Within their first yearof business, their client list includ-ed David Copperfield, ClaudiaSchiffer, The Robert Cray Band,Secretary of Commerce RonBrown, Francis Ford Coppola, HalHolbrook, and Bridgette Fonda.

84 Peter Lawrence wasnamed executive director of theResort Leadership Council, a lob-bying group that represents aselection of oceanfront businessesin Virginia. He has previouslyserved as managing director of theVirginia Waterfront InternationalArts Festival, where he helpedraise $1million in private sponsor-ships.

85 Robert B. Aiken (L’89)was named president of MetzBaking Company, a leading retailbread company, in April 1998. Hewas previously general counsel ofSpecialty Food Corporation, theparent company of Metz.

87 Molly Helfrich Gribbin

has left her job at the U.S. Trea-sury Department, and has starteda family business with her hus-band D.J., located in Leesburg, Va.

88 Timothy Seymour movedto Russia in late August afterbeing named head of the fixedincome sales department at TroikaDialog Bank in Moscow. Prior tothis move, Tim was at UnionBank of Switzerland in New York.

89 Annalisa Nash was mar-ried to Andre Fernandez on April25, 1998, in Manhattan. The cou-ple will live in Sao Paulo, Brazil,where Annalisa is a financial plan-ning manager for Philip MorrisInternational.

UNDERGRADUATE

62 C. Allen Merritt Jr. wasnamed chief operating officer ofLiberty Financial Companies,Inc., a NYSE-listed firm withapproximately $50 billion assetsunder management. He nowresides in Lynnfield, Mass.

76 Colette Marie Furr

returned to work three years agoafter 13 years of being a full-timemother. She is now an analyst inthe independent testing depart-ment of Cincinnati Bell Informa-tion Systems, where she recentlyreceived an award for excellence.In July, she earned her certificateas a software test engineer(CSTE). She resides in CrystalLake, IL.

76 Joseph J. Lhota was pro-moted to deputy mayor for opera-tions for New York City in July1998. Joseph was previously work-ing for Mayor Rudy Giuliani asbudget director. He is now respon-sible for the day-to-day manage-ment of the city government andthe budget.

72 Geoffrey Gross wasappointed managing director andhead of European operations forD’Accord Financial Services, Inc.,a leading investment bank special-izing in tax advantage financings.He has been based in London forthe past seven years, working pre-viously with Citibank and Bab-cock & Brown.


Alumni NOTES

Please e-mail your alumni notes

to [email protected]

or call Elizabeth Shine at

202-687-4080.

ALU

MN

I NO

TESMBA

85 Mike Gottlieb, profiled inthe Spring/Summer issue, was theRepublican candidate for South-ern California’s 29th district in theNovember election. Unfortunately,he was defeated.

85 Doug Knopper has joinedAmmirati Puris Lintas (APL) assenior vice president and groupdirector for client services on theAetna and General MotorsOnStar accounts. APL is a full-service, integrated marketingcommunications company, withover 150 offices in 78 countries.Previously, he was group directorat TBWA Chiat/Day in NewYork and San Francisco, where heworked on accounts such as Sea-gram’s, Champion & Wonderbra.

87 Harvey Chimoff hasformed Velocity 1 Consulting,Inc., a marketing specialist firmcommitted to customized solu-tions to help companies add valueand increase sales. Prior to startingVelocity, Harvey managed theU.S. business operations and allmarketing for Lipton’s Tea Bagdivision.

88 Eric Bauer moved fromSouthern California to Washing-ton, D.C. where he is now vicepresident of finance and planningfor Choice Hotels.

89 Karin Mugnaini Girault

is working as a part-time consul-tant for the Snoopy Restaurantsproject throughout Asia, helping

89 Michael Psaros is a part-ner at Keilin, Psaros, Shapiro Spe-cial Situations Fund, L.P., a lever-age buyout fund targetingunderperforming middle marketcompanies. Over the last eightyears, Psaros and his partners havecompleted the largest ESOPtransactions in the U.S. and Cana-da, such as United Airlines.Michael and his wife, Robin, livewith their daughter, Alexandra, inManhattan, NY.

90 Trisha Teale is now a char-tered public accountant and inter-nal auditor at Florida Power andLight. Trisha and her fiancé havesettled in their new house in CoralGables, Fla., and plan to marry inFebruary 1999.

91 Karen Lynne Phillips wasmarried to Christopher Broussardon May 9, 1998 in Washington,D.C. The couple now resides inNorthern Virginia.

95 Jeffrey Duchesneau isvice president and general manag-er at Tri-Sum Potato Chip Com-pany, Inc., a small, independentsnack-food production companythat was started by his great-greatgrandfather in 1908.

96 Jessica Gage was marriedto Timothy Kelly in August 1997,and now resides in Staten Island,NY.

96 Kevin Keck is an analystwith Donaldson, Lufkin & Jen-rette in London, England.


MENTORING PROGRAM EXPANDS ITS REACH

Remember how daunting it was to zero in on a career and search for that

perfect job? The Mentor Network helps reduce the stress by providing

advice and expertise to undergraduate sophomores, juniors, and seniors

in a friendly environment.

“We help students deal with the reality of the real world,” says Allen

Merritt, Jr. (B’62), chief operating officer of Liberty Financial Companies,

who is spearheading the efforts to build the mentoring program across

the country, along with associate dean Ann-Mary Kapusta.

Building upon the success of the Washington, D.C. program, the Network

targeted New York, Boston, Philadelphia, and Los Angeles in the past

year. San Francisco and London are this year’s goal.

Although most mentors are graduates of the business school, they can

also be parents and friends of the business school. They may be recent

graduates or offer many years of experience. If you are interested in

being part of the mentoring network, please contact Ms. Allison Schultz

in the undergraduate office at (202) 687-3851.

Professor Stanley Nollen organized the first gathering of business school alumni in

India. On hand were (left to right): Saket Dalmia (B’95), Professor Nollen, Subhash

Agrawal (MBA ‘93), Namita Dalmia (Saket’s wife), Barbara Spencer (MBA ‘87), Amita

Agrawal (Subhash’s wife), Anjali Aggarwal (MBA ‘97), and Harsh Gupta (MBA ‘97).

investors open a line of themedrestaurants and cafes throughoutthe region. She lives in HongKong with her husband, Denis,and two children, Mattis andManon. Karin recently met upwith classmate Karen Kaufman,who was in Hong Kong on busi-ness for E! Entertainment Inter-national Television.

90 Class Agent: Lorraine Herr

([email protected]) 9 South021 Skylane Drive, Naperville, IL60564

My husband, Michael, and I had agreat time catching up with Dave

Burke and his wife, Cathy, inMinneapolis earlier this year.Their two children, Whitney andConnor, are doing wonderfully.

Dick and Jane Ashton Hawes

announced the arrival of their sec-ond child, Colin Ashton Hawes,in July 1998. Jane continues tofreelance as a writer. I had thepleasure of reading a column ofhers in a recent issue of Runners’World.

Fredric and Sally Wakeman

send word from London. Sally leftCitibank in September 1997 tostart her own business in sportingevent management. Fred is work-ing in European private equity forAdvent Management. Fred andSally had their first child, ConnorEvans Wakeman, in January 1998.They report it is a big change tobe parents, but Connor is a happyand easy baby.

The Wakemans have had a stringof Georgetown visitors includingMichael Carlo and his wife Patti,Chuck Farber, and Harlan

Bradley Calkins. Plus, they’veseen John Anderson on severaloccasions.

Jason Wu writes that he and hiswife, Jackie, are busy with workand traveling quite a bit. They metJeanne Tsao in Los Angeles atthe end of last year and had agreat time.

In October 1997, I completed theChicago Marathon and am look-ing forward to training for anoth-er in the future. No marathon forme this year because Michael andI had a baby, Emerson ReberBeinhauer, in September 1998. AsSally says, it is a big adjustment,but we certainly are enjoying itimmensely.

Roland Manger is managingdirector at Infobahn International,a technology transfer companyfocusing on Internet and intranetenterprise software. Previously, hewas marketing director and co-owner of the European Internetprovider, Cybernet.

Please write me all your news.

91 Class Agent: Mary Pat Blaylock

([email protected])You can fax me at 410-561-1279.

Lisa Ball was married to KeithGhezzi on May 2, 1998. Severalalumni attended. Lisa and Keithhoneymooned for three weeks in

Indonesia. They stayed at four“Aman” resorts on Bali and Java.They unfortunately were in Javaat the same time as the riots, butleft unscathed. From Java, it wason to Hong Kong and then backhome to the Washington, D.C.area. Lisa works for John Dealy’scompany, The Dealy StrategyGroup LLC. A few days after Iam writing this, Lisa will be trav-eling to French Guiana to witnessa client’s launch of a radio satel-lite. Sounds like a fun businesstrip!

Paula Cameron is working as thebrand manager for the businesssection of The Los Angeles Times.

Mary Jean Duran is the com-munity affairs manager at TriconGlobal Restaurants, the parentcompany of Taco Bell, KentuckyFried Chicken and Pizza Hut.She is based in Irvine, Calif.

Andy Feffer is a director ofsports marketing at DirecTV andlives in Manhattan Beach, Calif.Layla Kashani tells us that he’sbummed about the Braves (sincehe’s an Atlanta boy), but he can’thelp rooting for the San DiegoPadres since he’s practically anative Californian now (he evensurfs!).

Layla Kashani works in thequality department of CNBC inNew York City (part of her timeis spent in Fort Lee, NJ). She livesin Manhattan but tries to remainas Southern Californian as possible.

Sandy Kupetz is busy being astay-at-home mom and alsoteaching piano lessons and sellingTupperware. She is a senior execu-tive manager with Tupperwareand likes the control it gives her.

Amit Pande works for Ernst &Young in their information tech-nology group. He and his wife livein Arlington, Virginia.

Rajesh M. Patel is also workingfor Ernst & Young, but in theirreal estate consulting group as asenior consultant. He is alsoengaged. Congratulations, Raj!

Deborah Rich is marketing acorn hybrid for her own company,with her husband Tom. They havesettled into their home of twoyears in Monterey, Calif., and areenjoying outings to the beach,park, library, and dance and musicclasses. They have a full travelschedule planned with upcomingtrips booked to Chicago, Orlando(i.e. Disney World), Hawaii, Col-orado, and a business trip to Chile.

When not chasing after her twoboys, Davis (4) and Bradford (20months), Mary Pat Blaylock isteaching aquatic fitness at theMAC (a local Baltimore fitnessclub). Right now she teaches akiller water aerobics class as wellas an intro to all the types of waterfitness their club offers. It is greatfun and a fantastic way to stay inshape. Recently, she took anHTML web page design courseand will hopefully be designingsome web pages.


MBA

ALU

MN

I NO

TESLaura Rodman is trying to win

the world record for holding thefirst job out of B-school the longest- four plus years at PriceWater-houseCoopers. Her husband Rickleft KPMG in April and is now astrategy consultant for StamfordResearch Institute Consulting inRosslyn, Va. No kids, just a zooconsisting of two big Labradors, acat and a lot of fish!

95 Class Agents: Lisa Bell,

Martina Ehlers

([email protected]),Kelly Reed, & Scott Shore

([email protected])

Pam Caldwell is still living inSan Francisco, working for Ken-nolyn Conference Center.

Tony Corsello has accepted a jobin the risk management programof General Electric. He is current-ly based in Stamford, Conn. fortraining.

Bruce Dincin is still at US Air-ways, and uses the benefits so westill hardly see him in the Capitolarea—life in the 90’s.

Steve Genn is now working atArthur Andersen Consulting inWashington, D.C. Roger Cepe-

da just moved back to the D.C.area and is engaged. Glad he isback in the Capitol area.

Faysal Hamza is working in Dal-las, Texas for Arco. He recentlymade a pilgrimage to New York tovisit fellow Georgetown grads andcelebrate Pedro Herrera’s (MBA‘96) birthday.

92 Class Agent: Jonathan M. Gafni

([email protected])

Vanessa George checked inrecently from California. She’sdoing well at Pacific Bell and justmoved to a new place. In othernews from the West Coast, Karen

O’Such reports that she’s passedthe three-year mark with Netscapeand is taking the next year off to travel the world with her boy-friend Bill.

I’m sure London is on Karen’sitinerary because it’s becominghome to more of our class. Doug

Clarisse is the latest to headacross the Pond, posted overseasby Bankers Trust. He’ll be joiningAl Kaiser and JP Neal. Londonmay not survive. JP and his wifeLaura are expecting their firstchild.

Closer to home, Niels Nielsen

has been asked to take over managing the installation of anadvertising order and billing system for The Washington Post.Running a team of 20 analysts and developers will be a more-than-fulltime occupation through1999, so he’s looking for a replace-ment to write this column.Please contact Elizabeth Shine([email protected]) at Georgetown to volunteer!

Stephen Corcoran opened hisfirst restaurant, called ‘Sky’, inOctober 1997. Sky is a 230-seatfull service restaurant located inSudbury, Mass. Stephen and hiswife, Nancy, would like to encour-age any Georgetown alumni in theBoston area to stop by.

93 Class Agent: Web Fletcher

([email protected])

James Linen made an unsuccess-ful bid in Georgetown’s AdvisoryNeighborhood Commission 2E08 election in November.He currently works in thetelecommunications industry.

94 Class Agent: David Gee

([email protected])

Ron Cieri scaled Mount Rainier,the third-largest peak in the U.S.,in September.

Andrew Dyer has relocated(again) to the Bay Area andrecently bought a house in SanFrancisco.

Since the last issue, David Gee

has been travelling extensively toChina, Australia, New Zealand,Hong Kong, Brazil, Taiwan, Por-tugal, the U.K., Malaysia, and Sin-gapore. In fact, he’s been fortunateto have dinner with John Onto,who was a visiting professor atGeorgetown, in Melbourne earlierthis year, and Simon Black andhis wife, Alice, in London inOctober.

Mattias Graff lives in Chicagowith his fiancée Rachel Maguire.Ed Greenfield was the match-maker. Mattias is a project manag-er with the John Buck Company, alarge real-estate developer head-quartered in Chicago. Ed hosted aHalloween party in San Francisco.You can e-mail Ed at [email protected]. Ed is working for ISP Channel, which will bebringing digital cable and two-waybroadband to a home near youshortly.

David Goldberg is currently trying to accomplish all majorstressful life events within a nine-month time frame. Since last June,David and his wife, Marnie, havebought a house in the town ofRockville, Maryland, and celebrat-ed the birth of their son, Sam, onSeptember 1. Additionally, Davidhas recently started a new job withMcManis Associates,a consulting firm in Washington,D.C.

Michael Harman is working forMercedes-Benz North America inTuscalosa, Alabama.

Dirk Nowak was married to Eliz-abeth Wintersteller in Salzburg,Austria. The couple met at Gemi-ni Consulting, where fellow MBAalum, Roland Manger (MBA’90)was their mentor.

Jennifer (Finn) Rios and herhusband Martin have a beautifulbaby girl, Emma Gabrielle, bornin August 1997. The couple live inSanta Fe, N.M., where they arebuilding a house.


Alumni NOTES


Michele Joseph has just movedinto a nice townhouse in Mary-land and is keeping herself prettybusy working in the D.C. area.Michele enjoyed a trip to Trinidadearlier this year.

Andy Libuser and his wife Andiejust had a baby, Kyra Rose, bornon June 10, weighing in at 8pounds. Andy is working forSprint while Andi works for MCI- this gives new meaning to theterm, “baby-bell”. (Bad joke...OK,I’m almost done). Sean Ross doesthe telecom shuffle, moving fromAT&T to MCI.

Iva Mance is still working as anequity analyst at NCM Capital inDurham, N.C. There’s big news inIva’s life as she has just purchasedher first home and finally finishedher first script! She gave up on theidea of writing the great Americannovel and decided to go Hollywood.

Matt Myers and his wife Chrisare the proud parents of a daugh-ter, Annie Malone.

Kui Nakamura took some timefrom trading on Wall Street tomarry Dawn. Attendees at thewedding included Tony Hovsepi-

an and Scott Shore. Part of Kui’sglobal honeymoon included astopover in India and a plannedvisit to Deepak Agrawal, who ismarried and living in India (whichis nothing new since the lastupdate, but I thought I’d throw inhere since I failed to mention itthen).

Kerri Olson married Ariel Eck-stein on September 6, in Wash-ington D.C. In attendance at thewedding were fellow Georgetowngrads Charissa (Lee) Fay,

Stephanie Scherr, Kathy Lam-

berty, Lara Kudryk-Traska,

Giselle (Chan-Checa)

Engstrom, Larissa Moffa andMartina Ehlers. Kerri and Arielspent their honeymoon in SouthAfrica. While in South Africa,they spent a day in Johannesburgvisiting Gerda Piprek, and herhusband, Eckhart.

Kelly Reed has settled comfort-ably in the Capitol Hill area ofWashington D.C. She works withAmerican ManagementSystems—presently on travel toHarrisburg, Pa. After doing theRace for the Cure and the AIDSWalk Washington, she is contem-plating training for next year’sMarine Corps Marathon. She isstill in the Army Reserves—thisyear she had a two-week stint inAtlanta where she was able tospend some time with Lisa

Wyche (MBA’93). She has alsobeen hanging out with Angelica

Beard (MBA’94).

Carrie Sauer, a dedicated Sprintemployee, is one of the fewGeorgetown MBAs still in heroriginal job since graduation.When Carrie is not running inU.S. Army ten-milers, she is trav-eling to attend telecom conven-tions to explain routers, relays andlong distance service.

CALIFORNIA NETWORKIN’

A series of networking events in northern California will bring together

area alumni with current and prospective MBA students. On January 5th,

Silicon Valley alumni and MBA students will get together for a “happy

hour” at Blue Chalk Café, 1630 Ramona in Palo Alto.

Current MBA students interested in California employment opportunities

— both summer internships and full-time jobs— will visit selected com-

panies during the week, including IBM and Netscape. The group has also

targeted Yahoo and Cnet. Alex Li, a second-year MBA, has been contact-

ing area graduates about both events.

On January 7th, current students and interested alumni will meet with

prospective MBA students in San Francisco. Kelly Best, admissions direc-

tor, is hosting the reception.

For further information about any of these events, alumni may contact

the MBA Career Management office at (202) 687-3741.

MBA

ALU

MN

I NO

TES


Alumni NOTES

Sara Shea, still with ChaseOne isanother Georgetown MBA still atthe original place of employment.We can’t speak of Sara withoutmentioning Kathy Lamberty,who still works for Revlon.

Rafe Slattery is his usual wittyself. He is still working as an oper-ations consultant for Metzler &Associates based in Chicago. He’salso finally finished getting hisBMW motorcycle back in goodconditioning and is “riding withthe wind” through the Midweston weekends.

Danielle Slentz is still enjoyinglife in Australia. She has accepteda full-time strategy position withBHP in Melbourne.

Tricia Swart has attended D.C.metro area events including sever-al Wolf Trap concerts this pastyear. Most notable were BonnieRaitt, Ray Charles and GroverWashington, Jr. Tricia is workingin Fairfax and keeping in goodshape by rollerblading, yoga andrunning.

Samantha Tarlton is in Boston.She just started a new job withFidelity Investments. MentionFidelity, you get Lori Greiner,who just left Boston, and is now inDenver. As Lori moves from eastto west, Karin Lesica has movedfrom Chicago to Washington,D.C. She is still trying to parlayher fascinating experiences in theBaltic States into a regular job.

Staying put in D.C., at least fornow is Tony Hovsepian whosometimes gets to New York viaUS Airways and will attend raveparties with “Womo”(aka, James

Healy).

Scott Vincent in Baltimore, Md.just had a baby boy, Nicholas Vin-cent, weighing in at 8 pounds and10.5 ounces on October 6th, 1998.Welcome to the world, Nicholas.

Sue Won and her husband BuHyun came to D.C. for a weekendvisit in February. They now live inBoston, where Sue is preparing forlaw school and Bu is completinghis MBA at Boston University.

Kevin Wrathall is still workingfor Oracle in San Francisco. Kevinwas married this year and reportsthat he’s settling into married lifenicely.

96 Class Agents: Leslie Blair

([email protected]),Tim Doyle([email protected]),Julie Jaoudi ([email protected]),Jill Kianka ([email protected]),Miriana Martinova

([email protected])

Michael Berman finished workon his first photo-illustrated book,Save the World: Serial Volume One:Entry to the World. He is currentlyseeking a publisher and plans tostart work on the second volumein the series.

Mark Drexelius is still alive aftera stint in French-speaking WestAfrica with Tidewater, Inc. Markalso reports that J.D. Moss is backat work in Nigeria after recoveringfrom a monkey bite. Both J.D. andthe monkey are doing fine.

Tim Doyle decided once again to“stay in school.” He is enrolled inthe night program at GeorgeWashington University LawSchool, where he has been seen onthe streets of Foggy Bottom wear-ing a “No Med School” button.

Pedro Herrera rolled over theodometer, turning 40 on October1, 1998. He celebrated in style at aclub in Manhattan with numerousGeorgetown MBA alumni, butoddly enough, none are admittingto the fact.

Julie Jaoudi was recently pro-moted to senior manager of busi-ness development at AmericaOnline. Her expanded workloadcontinues to include strategicplanning and business develop-ment, but she also does contentreview for AOL’s lifestyle pro-gramming.

In January 1997, Phillipe Leno-

ble graduated from UniversiteCatholique de Louvain in Bel-gium. After working briefly as ateaching and research assistant, hemoved to Citibank in London inSeptember 1997. Phillipe nowworks as an investment industryanalyst serving the needs of insti-tutional investors.

Mariano de Beer of McKinseyConsulting and Sara Shahidi ofNorthern Telecom have plannedtheir wedding ceremony forDecember 20, 1998. They will be married in Buenos Aires,Argentina.

Rich Oren married Nancy Sibirs-ki on August 9, 1998 at theBrooklyn Botanical Garden inNew York. Rich is working as aproduct manager for Arcotoys(subsidiary of Mattel) and Nancyis a certified social worker. Thecouple now reside in Port Wash-ington, New York.

Georgetown alums were busy onJune 27, 1998. Anne Pusey andLarry Roberts exchanged vows inPhiladelphia on June 27, 1998.They honeymooned in Italy. Annewas recently promoted to seniorproduct manager at AmericaOnline. Larry is an attorney at theenvironmental division of the U.S.Department of Justice. Debbie

Beauvais and Alfonso Monge(C’86 and M’90) were also mar-ried that day in Monterey, Califor-nia. The Georgetown couple hon-eymooned in Hawaii and reside inMiami.

Ron Rosier plans to wed KathyErhart in July 1999. Ron is work-ing as a project manager forAmerican Management Systems.He and Jeff Steen (MBA ‘97)recently worked together on astrategic repositioning project fora major credit card company.

On September 12, 1998, Anne

Tiedje married Arthur Vendola(M’95). The ceremony was heldon scenic Mackinac Island,Michigan. Fellow Class of 1996members attending includedPeter Levis, Jill Kianka, Ken

Cruse, Beth Swaggart, John

Dearing, Michael Schmeltzer,and Susan Lavington. The cou-ple honeymooned in Bali. Anne isnow back on the job at the Dis-covery Channel.

Mara Christina Alverado willhave her hands full with her fatherErik Alvarado and her motherLeslie Blair. Mara has grown likecrazy since her birth on July 17,1998. Eric quit the corporateworld and has taken up the envi-able life of the independent con-sultant. So far, his software testmanagement projects for threeclients are keeping him busyenough to seek outside assistance.(Anyone interested in workingwith MS Access, Visual Basic, orLotus Notes should contact Erikat [email protected]). Just tohedge the risk, Leslie has decidedthat she will return to her market-ing research management positionat Schering-Plough starting inmid-November.

Sandi Mao and Keith George arenow the proud parents of a babygirl, Jordan Chia-Yu Mao. Jordanwas born on April 27, 1998 andlooks just like mommy! Sandi alsoreports that she has moved intothe market surveillance area atThe National Association of

Securities Dealers, where sheinvestigates the trading and mar-ket-making aspects of investmentbanks. Watch out!

Judy Renfrew and her husbandBrian Berger proudly report thebirth of their daughter Alexandraon June 19, 1998. The family cur-rently resides in Bethesda, whereBrian is balancing his freelancearchitecture work with his parentalduties. Judy has returned to workas an associate at Carr AmericaUrban Development, where herefforts in managing both new con-struction and renovation projectsare part of the ongoing improve-ments occurring in downtownWashington.

Luke Marshall Tinsey was born toMark Tinsey and his wife Lynnon May 10, 1998. Mark is stillwith Procter & Gamble. Luke isgrowing like a weed and all threeare having fun in Cincinnati, Ohio.

97 Class Agents: Andrea Alexan-

der ([email protected]),Jane Oyugi ( [email protected]),Megan Mulvihill

([email protected]),Rochelle Cheng

([email protected])

Jeremy Akel is now currently inDubai, working as the regionalmarketing manager for TidewaterMarine.

Laura Mayer is now a seniorfinancial analyst at UUNETWorldCom. Laura also ran in the Marine Corps Marathon inOctober.

Jennifer Sheehy was honored inJune at the 14th Annual NationalConference for College WomenStudent Leaders in Washington,D.C. She received a ‘1998 Womenof Distinction Award’ for herwork as director of public affairs atthe National Organization onDisability.

Robert D. Smink III was marriedto Tiffany Berry West on May 2,1998 in Washington, D.C. He iscurrently a strategic planner atCentura Health in Denver, Colo.

Mark Wilcox and wife Kris havesome exciting news. IsabelleAngeline Wilcox was born onOctober 8 at 5:02 pm at George-town University Medical Center.She is a beautiful girl with a fullhead of hair. She weighed in at 6lbs 15 ozs and was 20.5 incheslong . Assisting with the deliverywas Jason Zand, a GeorgetownMD/MBA (’00). It was the ulti-mate group project!!! Kris andIsabelle are doing well and theyare all enjoying their new roles andresponsibilities.

John Wolpert is now the emerg-ing technology development man-ager for IBM’s Alpha Worksgroup. The group is on a worldtour to sites in the U.S., Canada,England, Israel, India, Belgium,Germany, Switzerland, China andJapan between October and Jan-uary. They are in search of newbusiness opportunities comingfrom emerging technologiesaround the world. John is alsolooking to recruit graduate stu-dents in 1999 who have compe-tencies and experience in high-technology and business. These

people will help them create busi-ness plans for new technologyprojects at IBM. He and Chris

Bahr (MBA’94) worked together(in true Georgetown teamworkfashion) to develop the AlphaWorks group into one of IBM’sleading emerging technologydevelopment organizations. Theyare being positioned as one wayIBM is changing the way it doesbusiness by inserting the outsidedevelopment community directlyinto the earliest phases of newproduct development.

Daniel Yeh now works at theRoyal Bank of Canada as a seniorassociate in the leveraged financegroup.

98 Ricardo Colin is a trader for Ban-co Pactual in Brazil. Every weekRicardo writes a short summaryabout the economic situation ofthe Latin American countries, andsends it via e-mail to severalGeorgetown alumni. He starteddoing this when he was an MBAfor the Inter-American BusinessAssociation, but found out thatalumni were interested in it too, sohe has kept it up since. If you’reinterested, you can reach Ricardoat: [email protected].

Carlos Fonseca is working forCitibank’s global emerging mar-kets group in Mumbai, India. Heis taking part in a two-year inter-national training program, and hasworked in Istanbul and London.Carlos reports that also takingpart in the same Citibank programis classmate Nathan Richardson,who is now stationed in Poland.

MBA


ALU

MN

I NO

TES


David Granson is currently withGoldman Sachs in New York,working with the equities divi-sion, private client services. Hereports that also at Goldman NewYork is Ali Bastani. In March1999, David will be moving toPhiladelphia, while Ali will go toSan Francisco.

Scott Mitic and Peter Mellen

have started a company calledVisiq Online Learning, based inSan Francisco. The company isfunded by outside investors, andthey now have a total of eight peo-ple working for them.

Jennifer Ullyot and Melissa

Flemings traveled to Prague,Vienna, and Munich this summer.Jennifer recently started as manag-er of business development ininteractive marketing at AmericaOnline.

Alumni NOTES

IEMBA

96Class Agent: Thom Arnsperger

Mark Bloom has recently beenpromoted to director of commer-cial accounts for Lockheed Mar-tin, where he divides his timebetween offices in Meadowlands,N.J. and McLean, Va. Mark willbe responsible for running a clientengagement for Lockheed Mar-tin, providing information tech-nology consulting support toinclude data center operations,applications support, and projectmanagement.

Pietro Gerosa and Terri Frickwelcomed the arrival of Francesco,their new son, on July 12, 1998 inLugano, Switzerland. All threemembers of the family are well.Pietro promises more news soon.

Ron Pippin is pleased toannounce the arrival of the newestaddition to the Pippin clan.Spencer Henry was born onSeptember 10, 1998, at 2:42 pm.The brown-eyed, brown-hairedboy is doing fine, resting at homewith his new, proud parents andolder brother.

Greg Spierkel, president ofIngram Micro, Asia Pacific ispleased to announce that his for-mer classmate and teammate, Guy

Abramo, has accepted a positionas senior vice president of strategicmarketing at Ingram Micro.

97 Class Agent: Lynn Anne Miller

Jean-Luc Bejot and his familywill be relocating to the D.C. areaat the end of December. He will betaking up a new position at thebiotechnology/venture capital sub-sidiary of the investment bankPrestwick Scientific Capital.

Lucy Reilly Fitch has a new job asthe director of business develop-ment and strategic planning forLockheed Martin AeronauticsSector. Congratulations, Lucy!

Bill Grove is pleased to share thenews of his expanding family. Hisdaughter, Haley Isabella, arrivedon July 14, at 7:02 p.m., weighingin at 8 lbs. 12 oz. At this point, herspecialties are (in no particularorder) looking cute, keeping herparents up at night, and winningthe favor of her older brothers.

Bob Johnson and his wife Joanneannounce the arrival of AndrewMichael on Bob’s birthday,September 30, 1998. Andrewweighed in at 8 lbs., 4 oz., and 20inches. Mom, baby, and two sib-lings are all doing fine.

Suzanne Kaiser is only four cred-its away from graduating from thePulitzer School of Journalism. Herbusiness articles have been pub-lished in The New York Times, TheFinancial Times book review sec-tion, and The Reuters Journal. Keepan eye out for her byline in theNational Law Journal.

Minh Le has accepted a newmanagerial position with Ander-sen Consulting. She is movingfrom New York back to the Wash-ington metropolitan area.

Michael McCarthy has accepteda position with HOVDE Finan-cial located in Washington, D.C..In his new role as vice president,Michael focuses on investmentbanking, specifically on mergersand acquisitions in the financialservices sector. In addition toinvestment banking, HOVDEFinancial maintains an ownershipinterest in several banks across thecountry. Michael reports that he ishappy to be putting his IEMBAdegree to good use.

Herbert MacArthur reports thathe and wife Lisa have recentlypurchased a new home inMcLean, Va., and the move-in hasfinally been completed.

Lynn Anne Miller was recentlyengaged to Jonathon Phillips,whom many IEMBA alumni metat the recent reunion. They areplanning a January wedding andwill reside in Arlington, with aneventual house-hunting sojournplanned for Bethesda. Lynn alsorecently presented a case study shedeveloped on high-tech marketingat a Tower Club marketing semi-nar sponsored by local marketingagency RMR & Associates.

IEMBA


Keihan Sedghi is on the moveagain! He has accepted a positionas principal consultant withCapGemini, which will undoubt-edly result in more travel.Nonetheless, he reports that he islooking forward to the experiencesand exposure provided by his newcareer.

98Class Agent: Debbie Weil

Michael Canzian certainly puthis classroom skills to good useduring the program, and was pro-moted twice by British Aerospaceas a result! The first time was inMarch, 1997 when he was pro-moted to director of sales for theAmericas. He was promoted againa year later to director, commercialoperations and sales, worldwide.Congratulations, Michael!

Joanne Coffey was promoted todirector of finance at ExcaliburTechnologies, a publicly tradedsoftware company located inVienna, Va., in January 1998. Thepromotion added the corporatecontroller role to existing financialplanning and analysis responsibili-ties.

Linn Donaldson was promotedfrom executive director of admin-istrative and financial services tochief financial officer of TheMcDonough School of Businessat Georgetown University, effec-tive January 1, 1998.

Amr ElSawy was promoted tovice president and corporate offi-cer of the MITRE Corporation, anon-profit systems engineeringfirm headquartered in McLean,Va. He will be managing the oper-ation of a new MITRE-controlledaffiliate, and will lead the develop-ment of MITRE’s aeronauticalinformation services business.

Thomas Fiser accepted a newposition with S.C. Johnson Wax,in their North American Con-sumer Products Division. As aresult of the change, he has relo-cated to Racine, Wisconsin, wherehe began work in mid-October.

Erik S. Gaull (MPP’95) made anunsuccessful bid for a GeorgetownAdvisory Neighborhood Com-mission seat in November’s gener-al elections.

Dale Howell was promoted todirector, financial planning andreporting at Raytheon SystemsCompany (RSC). RSC is a $15billion per year operating entitywithin Raytheon Corporation,and is headquartered in Arlington,Va.

Michael Hughes has accepted anew job at Argon Engineeringwhere he will be joining his formerclassmate, Joe Carlin.

Maureen Lalor accepted theposition of manager of businessdevelopment for CrossMediaCorporation. CrossMedia is astart-up company which providesa suite of voice navigations ser-vices using state-of-the-art voice

recognition technologies. Withtext-to-speech and automaticspeech recognition engines, Cross-Media provides people with analternative access to their e-mailmessages by using simple voicecommands from a phone—nomore lugging the laptop around!

Paul LaPorte, along with wifeDawn, welcomed the arrival of adaughter on 8/21/98. SydneyAlexa arrived twelve days early,weighing in at 5 lbs. 14 oz. Thenew parents report that the familyis both happy and healthy.

Anupam Pahuja has accepted anew position with Andersen Con-sulting. Details of Anu’s job willbe forthcoming. Congratulations,Anu!

While he is still employed withBell Atlantic, Kamran Sis-

tanizadeh has changed jobswithin the company to a new sub-sidiary called Bell Atlantic GlobalNetworks Inc. Kamran’s new titleis chief technology officer.

Deborah Weil reports that sevenIEMBAs attended an alumni bar-beque in Alexandria last month.In attendance were: Andre Gam-

rasni, Victoria Rixey, Mary-

Rose Szoka, Dean Eveland,

Alan Li, Marylynn Placet, andDebbie herself. The barbeque washosted by the Alumni Association,which IEMBAs are encouraged tojoin. Chris Puto, Dean of TheMcDonough School of Business,spoke at the event. According toDebbie, benefits and goals of join-ing the Alumni Association

include: networking, continuingeducation, and helping to raise theprofile of MSB. Another alumnievent is scheduled for December.

Combined Defense Integratorsopened for business on August 3,1998, in the District of Columbia,with Dennis Wilson as presidentand CEO. The firm assists defensecontractors from foreign countrieswho wish to do business in theUnited States.

Georgetown...The Way it Was

REM

EMB

ERIN

GThe roots of the business school began in the School of Foreign Service

(SFS). Business courses appeared in the SFS curriculum from the begin-

ning, but in 1936 they became part of a new division of business admin-

istration within SFS.

After World War II, Georgetown’s enrollment almost tripled as

the University tried to accommodate the number of returning veterans

and others whose education was interrupted by the War. Many of the

students in the post-War years took evening classes.

One such student was Robert McDonough, pictured (right) in

the February 1949 issue of the SFS magazine, The Envoy. McDonough

worked as a Capitol Hill police officer on the midnight to 8 a.m. shift.

Also pictured (bottom) is Leonard Toussignant (F ‘49), a classmate and

friend of McDonough’s. Both men came to Georgetown through an

arrangement with King’s Point, a merchant marine academy established

during the War. Toussignant, who made his career in the defense industry,

joined in the celebration for his friend on October 7th.

Non Profit OrganizationUS Postage

P A I DWashington DC

Permit 3901

georgetown universitythe mcdonough school of businessold north buildingwashington dc 20057-1008

georgetown business fall/winter 1998

Documents