ExecSpring09Cover:SummerCover 4/8/09 3:11 PM Page 3
COLLEGE OF BUSINESS MAGAZINE
LOYOLA UNIVERSITY NEW ORLEANS
SPRING 2009
Getting Down to Business CoB freshmen jump right in to the world of business
EXECUTIVE MENTORS LEND A HAND
•
AWAKENING, ENLIGHTENING, AND TRANSFORMING STUDENTS
DOING BUSINESS IN CENTRAL AMERICA
•
PROFESSOR INSPIRES OTHERS
ExecSpring09_2-5:128_loyolaSpring_2-4 4/6/09 11:14 AM Page 2
LOYOLA UNIVERSITY NEW ORLEANS Loyola University New Orleans President
The Rev. Kevin Wm. Wildes, S.J. Dean
William Locander Interim Assistant Dean Coordinator of Internships
Kathy Barnett Associate Dean
David Luechauer Associate Dean Educational Systems
Angie Hoffer Area Chairperson of Accounting, Economics, and Finance
Lee Yao Area Chairperson of Management, Marketing, and International Business M.B.A. Director
Kendra Reed Major Gifts Officer College of Business
Traci Wolff Loyola Executive Editor Publications Editor
Ray Willhoft, A’00 Loyola Executive Designer
Craig Bloodworth Photographers
Harold Baquet Dan Helfers, B’09 Contributors
Valerie Alombro Kathy Barnett Michelle Johnston Catherine I. Koppel William Locander David Luechauer Len J. Treviño Traci Wolff
ExecSpring09_2-5:128_loyolaSpring_2-4 4/6/09 9:59 AM Page 3
COLLEGE OF BUSINESS MAGAZINE LOYOLA UNIVERSITY NEW ORLEANS SPRING 2009 • VOL.2 • NO.1 • WWW.BUSINESS.LOYNO.EDU
COVER FOCUS 6
Getting Down to Business
FEATURES 12
Learning From the Best
16
Awaken, Enlighten, and Transform
20
Doing Business in Central America
24
An Inspiration for Others
26
Soul, Spirit, and Saddle Shoes
28
Off to the Market
Loyola Executive is published bi-annually for Loyola University New Orleans College of Business alumni and friends. Please address correspondence to: Loyola Executive Office of the Dean 6363 St. Charles Avenue, Box 15 New Orleans, LA 70118 News and photographs for possible use in future issues may be submitted by readers. POSTMASTER: Send address changes to: Loyola Executive Loyola University New Orleans 7214 St. Charles Avenue, Box 909 New Orleans, LA 70118 Loyola University New Orleans has fully supported and fostered in its educational programs, admissions, employment practices, and in the activities it operates the policy of not discriminating on the basis of age, color, disability, national origin, race, religion, sex/gender, or sexual orientation. This policy is in compliance with all applicable federal regulations and guidelines.
ExecSpring09_2-5:128_loyolaSpring_2-4 4/6/09 10:00 AM Page 4
A D VA N C E Y O U R C A R E E R
WITH
AN
MBA
FROM
LOYO L A !
THE PRINCETON REVIEW LISTS LOYOLA’S COLLEGE OF BUSINESS AMONG ITS 2008 “BEST BUSINESS SCHOOLS”.
Earn an MBA in the evenings. Our full or part-time programs are ideal for business undergraduates and working professionals. For more information, e-mail mba@loyno.edu or call (504) 864-7965.
AWAKEN. ENLIGHTEN. TRANSFORM. http://business.loyno.edu/mba/index.html
ExecSpring09_2-5:128_loyolaSpring_2-4 4/6/09 10:01 AM Page 5
From the Dean Our freshman class (2008 – 2009) will mark Loyola’s 100th graduating class in 2012. As such, I am pleased that this issue of Loyola Executive contains an article about some of the names and faces that began their college career with us last fall. I think you will find that they, along with the freshmen highlighted on the cover, represent some of the best and brightest students in college today. We are proud of the experiences we offer our freshmen and have featured some of those programs in this issue. The article introducing our new college mantra, “Awaken, Enlighten, and Transform,” points the way to the college embracing cutting-edge issues in education today. In short, a college education should be a transformative experience for our students during their four years at Loyola. The leaders of tomorrow will not only be smart and well-trained, but also stand out for their authenticity, character, and self-confidence. The article in this issue addresses the value added that College of Business students receive at Loyola. Professor of Economics Bill Barnett is featured in this issue. I am very proud of Bill’s numerous accomplishments during his years at Loyola. The fact that his past students took the initiative to create the William Barnett Professorship in Free Enterprise Studies in his name is testimony to how many lives he has touched. A new faculty member, Dr. Len Treviño, who holds the Gerald N. Gaston Eminent Scholar Chair in International Business, writes to us about doing business in Central America. Len brings to Loyola added senior leadership in the area of international business. Welcome aboard, Len! I should mention that much of what the College of Business is able to do comes from the generosity of alumni and friends. Annual giving and major gifts support much of what you read about in this issue. Thank you for your continued generosity to the college. Sincerely,
William B. Locander, Ph.D. College of Business Dean
Spring 2009 www.business.loyno.edu
5
ExecSpring09_6_11:128_loyolaSpring_5_9 4/6/09 10:46 AM Page 6
Getting Down to Business CoB freshmen jump right in to the world of business
6
Loyola Executive
ExecSpring09_6_11:128_loyolaSpring_5_9 4/6/09 10:47 AM Page 7
Every fall, a new crop of students leave the comforts of home and show up on college campuses around the country. The experience is often fraught with a mixture of excitement, anxiety, and anticipation. And that’s just the parents. Students have their own set of adjustments to make. Many are away from home and their parents for the first time in their lives. Having mom do laundry and fix their favorite foods now only happens on semester break. Freshmen are faced with new choices, new decisions, and new people. They must now rely on alarm clocks and often sheer willpower to pull themselves out of bed and get to class on time—if at all. There are roommates from hell and roommates that become lifelong friends. Whatever the situation, freshmen face a period of adjustment both academically and personally. Loyola’s College of Business addresses that period of adjustment in a variety of ways.
The Loyola College of Business Approach The College of Business’ approach is to get the students involved in the college from the first semester, engaging them in classes and activities that focus on the Jesuit ideals of thinking critically and acting justly. Freshmen in the College of Business (CoB) start with the university’s Common Curriculum, receiving a well-rounded education in the tradition of liberal arts institutions. But the CoB takes the freshman experience one step further by placing these students in the BA100 Introduction to Business course followed in the spring semester by BA101 Business Communication. Classes are taught in small sections two days a week, and then all the students come together on Thursday nights for a third class meeting. These two courses have been taught the last three years by the freshman faculty team: Dr. Kendra Reed, Professor George Howard, Dr. Michelle Johnston, and Dr. Kathy Barnett. “Many business schools do not let freshmen take a course in business until their sophomore year. At Loyola, we immediately put our freshmen into the business curriculum so they can start
Spring 2009 www.business.loyno.edu
7
ExecSpring09_6_11:128_loyolaSpring_5_9 4/6/09 10:48 AM Page 8
Olive Tree to attempt to explain the ideas and tensions associated with globalization. We felt it important that students understand that business today requires a nuanced view. This book helps us illustrate the fact that success in business, in today’s inter-connected world, demands not only an understanding of entrepreneurship, finance, etc., but, rather a holistic approach; one that requires a deep understanding of culture and values. The fact that The “I enjoy getting to know the freshmen through my Lexus and the Olive Tree—with its classes. It’s their first year and they are discovering emphasis on the importance of transso much about who they are and who they want to parency, integrationist social safety net be. The possibilities are endless, and it’s great to be policy, and connectivity—was not only there when you see things starting to click and predictive of the current global financome together for them.” cial crisis, but offers a way forward, —Dr. Kathy Barnett allows for a deeply relevant classroom experience,” states George Howard. objectives: 1) to increase students’ knowledge, understanding, and desire to learn business, and 2) to facilitate a sense of connectedness with their peers, college, Loyola, and the Jesuit values.” In the A new addition to the Intro to Business course Intro to Business course, Reed and Howard teach in the fall was the inclusion of an assignment utistudents the basic concepts of management, lizing CareerBeam, a state-of-the-art, web-based accounting, economics, marketing, finance, and strategic career management tool made available international business. Students gain an appreciathrough Loyola’s Career Development Center. tion as to what each of these specialties entail as Roberta Kaskel, director of the center, explains the well as how these areas of business work in tandem to create a successful “Many business schools do not let freshmen business environment. Concepts are take a course in business until their sophomore taught through guest speakers, comyear. At Loyola, we immediately put our mon readings, class assignments, servfreshmen into the business curriculum so they ice learning projects, and Executive can start learning about business from their first Mentoring events (see related article day of class.” on page 12). —Dean Bill Locander
learning about business from their first day of class. It’s a great way for students to begin to clarify their interest in business and explore career options. These two courses serve as the foundation for the business curriculum,” says Bill Locander, dean of the college. Reed explains, “In the Freshman Year Experience courses, we strive to accomplish two
CareerBeam
Common Reading In fall 2008, the common reading assignment for the class was The Lexus and the Olive Tree by Thomas L. Friedman, a text chosen for the freshman class because of the book’s focus on globalization. “We initially decided upon The Lexus and the
8
value of the software program for freshmen. “The Loyola Career Development team tailored the selfassessment and market exploration exercises in the CareerBeam tool to guide first-year students through both self exploration and market exploration exercises. CareerBeam was originally
Loyola Executive
ExecSpring09_6_11:128_loyolaSpring_5_9 4/6/09 10:48 AM Page 9
designed for the M.B.A. market but, by introducing these concepts early in their academic careers, students are given an opportunity to begin to explore how their interests and values might tie in with the professional choices they will eventually have to make. Using CareerBeam in conjunction with class assignments reinforces the culture of personal and professional development valued by the College of Business.” Based on their CareerBeam findings, students wrote personal mission statements in order to begin to clarify how their thoughts and beliefs relate to their hopes and goals for their futures.
Community Service Another component of the Freshman Year Experience is Loyola’s Wolves on the Prowl. “Rather than simply talking about social responsibility and assisting those in need, we require students to participate in the university-wide Wolves on the Prowl community service event,” explains Reed. Sponsored by LUCAP (Loyola University Community Action Program), alumni, students, faculty, staff, and the entire College of Business freshman class meets at 8 a.m. on one Saturday in November to participate in various community-based service events. In past years, CoB students have worked on projects
Spring 2009 www.business.loyno.edu
“I love my freshman experience in Loyola’s College of Business. I love the Executive Mentor Program because I get the perspective I need from a professional person. I have learned more about how business meetings are conducted. We observed our mentor in a marketing meeting and it was very informative. The best thing about Loyola is the smaller classes. Professors really get to know you and they care about what is going on in your academic and personal life. And New Orleans is a great and diverse city. There is always something going on, and the city never sleeps. I love it.” Edie Burns International Business Major St. Petersburg, Florida 9
ExecSpring09_6_11:128_loyolaSpring_5_9 4/6/09 10:49 AM Page 10
such as helping local schools with a fun fair for kids, doing arts and crafts projects with SMILE (Students Moving into the Lives of the Elderly), painting community buildings, and cleaning local parks and hurricane-affected schools. Reed adds, “By partnering with LUCAP, CoB students experience the power of the masses actively engaged and visibly adding value to the New Orleans community. We hope this experience nurtures their sense of social responsibility in all they do from personal to career choices.”
Communication Skills
“I have really enjoyed my freshman experience so far at Loyola. The most interesting thing about Loyola is the amount of activities that are always going on. The first few weeks took a little while to get use to. Even though this is a smaller campus than other colleges, I still felt like an ant trying to find my way around a park. As of now, I have really adapted to the university and feel comfortable in calling it home. The best thing about Loyola is the close connection between the professors and the students. At this particular time in my life, there is no better place for me to be attending college than here at Loyola University New Orleans.” John McCann Marketing Major Kenner, Louisiana 10
The BA101 Business Communication course focuses on communication skills that are invaluable for students as they move into upper-level courses and begin preparing for career life after college. After gaining an understanding of the communication theories that frame business communication, students apply theory to practice through written and oral presentation assignments. They write memos, give informative presentations, master PowerPoint, and learn how to adapt their message to their audiences for greater communication effectiveness. The CareerBeam work was continued in the Business Communication course this spring. Students completed more assignments that eventually led them to career options that
Loyola Executive
ExecSpring09_6_11:128_loyolaSpring_5_9 4/6/09 10:49 AM Page 11
matched with their individual values, skills, and interests. While many students are apprehensive about giving their individual business presentations, the course provides a supportive environment for students to overcome their fears and become more comfortable in speaking in public. As Michelle Johnston explains, “Many students still don’t relish the idea of public speaking, but they realize they can do it and be good at it.” The ability to put together a presentation challenges students to think critically about the facts and figures they include in their presentations. Johnston and Barnett spend time teaching students how to access sources and determine what is appropriate to present to their audiences. And Barnett sees the payoff. “As the internship coordinator, I get the chance to work with the freshmen again when they are juniors. To see their transformation just in that two-year span is very rewarding. It helps to clarify that what we are doing in the Freshman Year Experience has a lasting impact.” The freshman faculty team knows one thing for sure: freshmen have an incredible sense of energy and wonder about the world before them. The CoB strives to channel all that energy in ways that will allow these students to leave a lasting impact on Loyola and the surrounding community for years to come.
Spring 2009 www.business.loyno.edu
“My first few weeks here at Loyola were very different from what I was normally used to, but as I began to progress through the semester I found that I felt at home at Loyola. Now, during my second semester, I feel that although time management has gotten progressively harder, I still feel as though this is the place for me. I feel that being a freshman in the College of Business, I have had a great experience, especially in the Executive Mentor Program. I also like that freshmen are automatically enrolled into the College of Business. Other colleges I looked at didn’t have the Mentor Program and you had to wait until your sophomore year to even apply to the college of your choice within the university.” Katherine Kittok Accounting Major Ponchatoula, Louisiana 11
Learning From the Best Business Execs Mentor College of Business Freshmen If you were to pick up just about any career advice column these days, the message would be the same: Find yourself a mentor early in your career. Finding someone in a chosen field who has experience in business can help students assimilate more easily and quickly into the work environment, avoid some mistakes, and figure out how to handle mistakes that may well be made. Loyola’s College of Business (CoB) provides all freshmen with their own mentor through the Executive Mentor Program—an advantage not many freshmen at other institutions can boast about.
The Beginning Michelle Johnston, Ph.D., associate professor of management and director of Loyola’s Executive Mentor Program, was in on the start of the program in 2003. “Pat O’Brien, dean of the college at the time, invited me, along with other university and business leaders, to dinner at Bill and Pam Ryan’s house to discuss program ideas that would benefit our students and the New Orleans business community. We came up with the idea of a sort of ‘business boot camp’ for
12
freshmen. From our discussion that evening and subsequent follow-up meetings, the Executive Mentor Program was born in the fall of 2003,” says Johnston.
The Program Now in its fifth year, the program has grown from its start in the Ryans’ living room to 30 business mentors from all walks of business life. Incoming freshmen are matched with a mentor that closely mirrors their interests. They meet with the executive and fellow mentees in a small team once a month for their entire freshman year. Meetings with mentors often include dinner at a local restaurant or the mentor’s home, a trip to the mentor’s office to meet colleagues and gain a first-hand look at business operations, and field trips to business locations such as the Superdome and the World Trade Center. Sometimes they even play a game of laser tag—followed by a conversation on leadership and team communication. The program has proven to be a favorite among freshmen. Free meals not withstanding, students realize the value of connections and the opportunities
Loyola Executive
they present. Conversations with mentors often center around topics such as the role of communication and technology in business, how to build a network, finding an internship, proper business etiquette, entrepreneurship, what to expect from the job search, and the mentor’s own experiences in time and money management. When asked what mentor’s advice they find most valuable, students demonstrated a keen awareness for what would serve them well in a few years. One freshman student says: “My mentor taught me the most important dos and don’ts on your first job. He also taught me to never underestimate myself when searching for an internship or job.” Another student sums up her experience succinctly: “Everything was valuable because I learned something new every time.” Johnston stresses the value the program adds to the Freshman Year Experience: “There are few programs like this one on other college campuses. Our students are so fortunate to be a part of a program like this—to be able to interact with business professionals from the start of their college experience. And, I am continually amazed by the amount of time
Spring 2009 www.business.loyno.edu
these volunteer mentors put into this program. With everything else they have going on in their busy lives, they are truly there for our students. The students sense that and appreciate their commitment.” As director of the program, Johnston is responsible for recruiting and training new mentors each year, planning events and meetings, and coordinating the events with the students enrolled in BA100 and BA101 courses, in which the program is embedded. New mentors are recruited through referrals from existing mentors and other business contacts. Assisting Johnston with all of the day-to-day program details is Valerie Alombro of the CoB. Alombro handles much of the scheduling for the events and coordinates communication between students and their mentors and enjoys being involved with the program. She says: “As the assistant to the director, I find my job to be very challenging, but also very rewarding. We’ve made many positive changes to the program since its inception. It is a pleasure meeting and interacting with so many outstanding mentors who make this a unique program for our business students.”
13
“I never realized how important networking was in business. My mentor explained that it’s important to start building networks now. She told us to always be professional and courteous when networking because you never know if you’ll end up working for that person in the future.” —Business Freshman
Spring Spring Networking Networking Event Event “One of the challenges of working on a program that has been around for five years is to keep it new and interesting for both the students and the mentors,” explains Johnston. “So, when Loyola’s Career Development Center suggested we work together to host a networking event for the students, we went with the idea. It had been a while since we had done anything like this, and since we spend so much time talking about networking it seemed only natural to follow-up with an event. One Thursday evening we got all the mentors and the freshmen together in the St. Charles Room in the Danna Student Center for an hour of networking. We wanted the event to closely mirror an actual business networking event, so we served hor d’oeuvres and beverages (non-alcoholic of course).” By all accounts the evening was a huge success. Students were given an assignment for the evening—practice their introductory speeches and collect five business cards by the end of the event. And mentors were told not to give a business card to students until the students had demonstrated a competency in professional networking. The college knew that this exercise would serve as the first real networking event for most freshmen. To 14
lessen any apprehension and anxiety about meeting new people or not knowing what to do, the students attended a workshop on networking earlier in the week. Taught by Jan Moppert of the Career Development Center, the workshop included tips on how to network successfully, what to wear, and even how to shake hands professionally. In addition to the mentors in attendance that night, many of the professors and administrators from the CoB and the staff from the Career Development Center attended the event as well. Freshmen were able to meet some of the professors they would encounter in classes in a few semesters, ask about majors, and get a sense of what their years as sophomores, juniors, and seniors would be like.
TheTheFuture Future The future of Loyola’s Executive Mentor Program will continue to rest on the dedication of its mentors and the bright minds of freshmen students. As one student comments on his experience in the program: “I gained a relationship with a very important person that I can trust to be there in the future if I need him.” And that’s what mentoring is really all about. Loyola Executive
ExecSpring 09_12_15:128_loyolaSpring_10_17 4/8/09 3:40 PM Page 13
Executive Mentors Fall 2008 – Spring 2009 Erin Berning Allen; Executive Director, Berning Marketing, L.L.C. Joseph Bonavita; Senior Vice President, Investment Banking Group, Capital One Southcoast Meaghan Ryan Bonavita; Sales Associate, Carlisle Collection H. Jude Boudreaux; Director of Financial Planning, Bellingrath Wealth Management Tara Burnaman; Director of Procurement, The Standard Companies, Inc. Francisco (Frank) Cestero; Division Controller, Walton Construction Co., L.L.C. Christopher Coulon; CRE Credit Specialist, Regions Bank Mason G. Couvillon; President, Principal/Owner, Dardis Couvillon & Associates David R. Crais; President and Co-Owner/Registered Investment Advisor, Crais Management Group, L.L.C. Rodney Crosby; Assistant Vice President, Regions Bank Commercial Real Estate Aaron Dirks; Owner, Dirks Companies (Limousine Livery, Lazarus Medical, Grey Hog Industries) Darryl Glade; Associate Broker, RE/MAX N.O. Properties Andrew Goodwin; Staff Accountant, Fraud Investigation & Dispute Services, Ernst and Young, L.L.P. Brian A. Gueniot; Owner, Brian A. Gueniot Consulting Michelle Lucas Huck; Consultant, Business Consulting & Forensic Accounting Services, Bourgeois Bennett, L.L.C. David M. Jacobs; Project Manager, Unisys Corporation Kelly Lambert; Analyst, H2 Performance Consulting Robert A. LeBlanc; Owner, Republic New Orleans; Managing Partner, Lifestyle Revolution Group Ralph A. Litolff; Director of Business Consulting Services, Bourgeois Bennett, L.L.C. Julie McDonald; Assistant Vice President/Customer Service Manager/ Project Portfolio Manager, Science Applications International Corp. (SAIC) Leslie O. Monson; Advertising Manager, Harrah’s New Orleans Eric K. Morgan; President, Morgan + Company Michael Morgan; Business Development Analyst, Walton Construction, Co., L.L.C. Carl H. Neuenhaus, Sr.; Chairman and Vice President, CHN, Inc. Lee F. Pitre, Ph.D.; President and CEO, TechComm Associates, Inc. Allison Plaisance; Manager, Risk Advisory Services, Ernst & Young, L.L.P. Mark Samuels; President and Owner, Basin Street Records Lee Vorisek; President, Alta Max, L.L.C. M. Wheeler, III; Law Partner, Gordon, Arata, McCollam, Duplantis & Eagan, L.L.P. John J. Zollinger, IV; Senior Vice President and Market Manager, Commercial Real Estate Lending, Regions Financial Corporation
Spring 2009
www.business.loyno.edu
15
ExecSpring 09_16-19:128_loyolaSpring_18-29 4/6/09 11:02 AM Page 18
Awaken, Enlighten, and Transform
16
Loyola Executive
ExecSpring 09_16-19:128_loyolaSpring_18-29 4/6/09 11:02 AM Page 19
These words are the new mantra of the College of Business (CoB) and are at the center of our Vision Statement. More importantly, they will soon be the foundation of all we attempt to do to move the CoB from the proverbial good to great or as we would like to think, from great to exceptional! For us, the process of awakening, enlightening, and transforming is deeply rooted in a concept known as adult transformational learning. This style of teaching and learning requires both faculty and students to replace the traditional command and control style of experts teaching novices about things with a cooperative approach to knowledge cocreation. In short, adult transformational learning is all about learning by doing, learning by reflecting, and learning by doing over instead of memorizing and regurgitating. In the business school, the change to the transformational process often starts in the area of leadership and management. In leadership, faculty stop teaching students about how to be like other leaders and focus on “developing” individual leadership skills, abilities, and mindsets inherent in all the students. Embedding the “awaken, enlighten, and transform” perspective in all CoB programs and new initiatives is even more beneficial when one stops to consider that this process, particularly transformation, is intertwined with many if not all the ideals of a Jesuit education! Thus, the CoB will do with our faculty, staff, students, and key stakeholders that which the Jesuits have been doing for hundreds of years—transforming spirit. “Awaken, enlighten, and transform” describes a process of personal development where learners are open to the vista of new possibilities and given the opportunity to engage those possibilities in a personal manner. As a result, they will grow into a more values-centered mature person regardless of their age, experience, or position in the corporate hierarchy.
Spring 2009 www.business.loyno.edu
17
ExecSpring 09_16-19:128_loyolaSpring_18-29 4/6/09 11:04 AM Page 20
So, what does it mean to awaken? Awakening is to become aware, alert, or attuned. For us, awakening starts with the realization of a new perspective about one’s self. Awakening usually occurs when we encounter new experiences that allow us to look at ourselves and critically reflect on personally important questions. Questions like…
Do we dwell on our problems or focus on our opportunities? Are we short-term thinkers or do we see the longer and bigger picture? Do circumstances or personal purpose guide our behavior? Do we put too much emphasis on control and forfeit adaptability? What is my purpose? What legacy would I like to leave? Through such processes as Loyola’s Executive Mentor Program, the Freshman Year Experience, Wolves on the Prowl, CareerBeam assignments, Portfolio Program, and the transition from life at home to life at Loyola, students begin the awakening process. Regardless of the process or the setting, once awakened, our students will possess a heightened awareness of their mission, their limitations, and their fullest potential. Someone once said, “a question well posed is 90% answered.” We all know that asking the right question at the right time can lead to an “Aha” moment. Those “Aha” moments are analogous to becoming enlightened. Enlightenment is the wisdom that transcends the mere acquisi-
18
Loyola Executive
ExecSpring 09_16-19:128_loyolaSpring_18-29 4/6/09 11:04 AM Page 21
tion of new information or even new perspectives. While it may be true that an informed person knows the rules and a wise person knows the exceptions to the rules, we believe that an enlightened person knows the exceptions to the exceptions or how to make up the rules as they go along. Thomas Edison, the inventor of the light bulb, provides a classic example of enlightenment—no pun intended. When asked how he felt about failing to invent a battery after 5,000 attempts, Edison purportedly responded, “I haven’t failed, I now know 5,000 ways not to make a battery.” Our students will learn by doing, by rolling up their sleeves and getting their hands dirty. Required internships, managing an investment fund, participating in regional and national Marketing Case competitions, participating in an ethics simulation, and participating in micro-finance ventures are but a few of the ways our students will do more than just acquire information about the disciplines they study. Study abroad and hosting visitors from afar will enlighten our students to the complexities and opportunities possible in our ever shrinking world. The result of the journey through awakening and enlightening is transformation. With transformation, a person gains authentic conviction about their identity an d c h a r a c t e r. Transformation is not as simple or quick as flicking on a light switch, it happens over time as one does the self-reflective work to move to a more mature identity. It is our hope and our conviction that on, near, or shortly after graduation, our students will be transformed from novitiates into inner-directed, other-focused, purpose-driven, results-minded, values-based self-leaders who live fully and completely in the Jesuit ideals upon which Loyola was founded.
Spring 2009 www.business.loyno.edu
19
Dr. Len J. Trevi単o
Doing Business in Central America H
ave you been contemplating establishing or expands the duty free access that those countries extending your company’s business operations enjoy in the U.S. market. Notwithstanding the world’s economic south of the border? If so, two of the countries that you have probably already considered are downturn, estimates suggest that the net trade Mexico and Brazil, the two largest markets in gained due to CAFTA will be well into the Latin America. Before you move ahead full billions of dollars. CAFTA will likely be the throttle, however, you might consider Central America. Bridging North “Economic liberalization is evident in every Central American and South America, nation, and my own research on institution building in Latin America Central America includes suggests that this shift in the ‘managerial mindset’ of Central Belize, Costa Rica, El Americans will likely lead to increased investment into the region Salvador, Guatemala, coupled with an enhanced ability of domestic firms to compete.” Honduras, Nicaragua, and —Dr. Len J. Treviño Panama, and it has a population exceeding 40 million people. In 2005, all of the countries in most significant regional integration agreement the region, excluding Panama but including the entered into by the U.S. because it will serve as Dominican Republic, signed a free trade a template for agreements between other super agreement known as the Central American Free powers and developing countries. Experts say Trade Agreement–Dominican Republic that the net effect of CAFTA will be similar to (CAFTA-DR). At nearly $20 billion per year, NAFTA, and trade between the U.S. and Mexico the CAFTA region accounts for the second has more than tripled since NAFTA was ratified. highest amount of U.S. exports in Latin CAFTA is not the only positive element America, trailing only Mexico. Not as well associated with the investment climate in known as NAFTA but equally as powerful, Central America, as many nations from the CAFTA eliminates tariffs on U.S. goods region have pursued market reforms. Indeed, exported to member countries and it locks in and economic liberalization is evident in every
Spring 2009 www.business.loyno.edu
21
Central American nation, and my own research on institution building in Latin America suggests that this shift in the “managerial mindset” of Central Americans will likely lead to increased investment into the region coupled with an enhanced ability of domestic firms to compete. One notable reason for the increase in investment is the myriad protections granted to U.S. businesses and investors that choose to locate in the CAFTA region. Protections now granted to all CAFTA investors include those found in NAFTA and the U.S.-Chile FTAs, including Most Favored Nation Treatment, National Treatment, and a Minimum Standard of Treatment. In spite of these favorable trends, many American businesses have been skeptical about doing business in this unstable region despite its proximity to the United States. The fall of communism in the Soviet Union and the end of the Cold War, however, triggered a dramatic transformation in Central America. For example, Guatemala has gone from one of the most repressive military dictatorships in Latin America to a new democracy in which Nobel Peace Prize winner and military critic, Ramiro de Leon Carpio, became head of state in 1993. The government and the Guatemalan rebels signed a peace accord in 1996 after 35 years of civil war. In 1992, the guerrillas in El Salvador handed over their Soviet-made weapons to United Nations’ peacekeepers and the warring factions signed a peace agreement, bringing the 12-year civil war to an end. The Sandinistas in Nicaragua conceded after electoral defeat in 1990. Guatemala and Belize have settled a serious but little-known border dispute, decreasing tensions between them and increasing economic cooperation. Businesses wishing to trade merchandise with Central American countries can obtain 22
assistance through the Export-Import Bank (EXIMBANK), which provides loans, credit insurance, and loan guarantees to foreign buyers. By providing outside buyers with loans, EXIMBANK facilitates trade between the United States and other countries. The U.S. Department of Agriculture also offers a credit program with some Central American countries to promote the trade of agricultural products. Finally, the U.S. Small Business Administration (SBA) provides programs designed to help small businesses export their products to other countries, including those in Central America, by offering loans and loan guarantees. The U.S. government also offers special incentives for doing business in this region via the Section 936 program. A company that does a major portion of its business in the Caribbean/Central American area can qualify for Section 936 of the Internal Revenue Code, which exempts it from federal income tax on earnings that are derived from its business in this region. In addition, such institutions as the Overseas Private Investment Corporation, as well as EXIMBANK, provide financial assistance to businesses wishing to invest in Central America.
~ Dr. Len J. Trevino holds the Gerald N. Gaston Eminent Scholar Chair in International Business at the Joseph A. Butt, S.J., College of Business ~ at Loyola University New Orleans. Trevino graduated magna cum laude with a bachelor’s degree in finance from the University of Notre Dame and earned an M.B.A. in marketing from Indiana University, Bloomington. He earned a Ph.D. at Indiana University, Bloomington, with a doctoral dissertation that examined the theory of the multinational enterprise and foreign direct investment in the United States. Loyola is very pleased to welcome Trevino to the College of Business. Loyola Executive
Invest inLoyola University New Orleans Eight Benefits of a Loyola Gift Annuity With low interest rates and roller coaster markets, people are thinking twice about their financial decisions. Consider the eight benefits of a Loyola gift annuity:
1. Attractive Rates. Compare our gift annuity rates with current certificates of deposit, and you will likely be pleasantly surprised. For example, the annuity rate for a 70-year-old is 5.7 percent. At age 80, the rate is 7.1 percent, and if you are 90 or older, you would receive 9.5 percent.*
2. Regular Payments. You decide how often you want to receive your payments—monthly, quarterly, semi-annually, or annually. Receiving your regular payments on a specific, predetermined date is comforting and also helpful for planning purposes.
3. Fixed Income. Your payment rate and amount will be locked in at the time you obtain your gift annuity. It will not rise or fall with the economy. That can mean a lot in uncertain times.
4. Lifetime Benefit. Gift annuities are for life. And if you have a two-life gift annuity, when one person dies, the other can continue to receive the same amount for the rest of his or her life. Ongoing payments can provide security for each spouse as they enter their older years.
5. Dependable Source. Loyola backs up our annuity obligations with the full financial resources of the university. We want you to feel safe and secure and to have confidence that your payments will continue without fail.
6. Relief From Taxes. Since part of your contribution for a gift annuity is considered a charitable gift by the IRS, you will receive a substantial income tax charitable deduction to apply on an itemized return. Also, during your life expectancy, you will be able to claim part of the annuity payment as tax-free income.
7. Simple Process. We provide you with a tailor-made illustration so you can see how it all works with your age and contribution amount included. We also provide materials you can share with your family and adviser(s).
8. Satisfaction. There is enormous satisfaction from making a gift in this manner. Every time you receive a payment, you will be reminded of how your gift will eventually benefit Loyola. For your personalized gift illustration, call our Office of Planned Giving at (504) 861-5565 or e-mail rgross@loyno.edu. There is no obligation, and we will not pressure you in any way to proceed with a gift annuity. Our role simply is to provide clear illustrations and to let the eight benefits speak for themselves. *Note: Rates are slightly lower when the annuity is for lives of two people (i.e. spouses). Rates subject to change.
ExecSpring09_24_25:128_loyolaSpring_10_17 4/6/09 11:09 AM Page 10
An Inspiration for Others
Dr. Bill Barnett, B’67, L’82
ExecSpring09_24_25:128_loyolaSpring_10_17 4/6/09 11:09 AM Page 11
Students establish new professorship in honor of Bill Barnett, Ph.D., J.D. W
hen Dean Locander started in August 2008, he Barnett’s impact on his own life, former student Eric led the College of Business faculty through a Eckholdt, B`89, quietly started talking to a few of his fellow strategic planning process. An exercise designed to classmates about funding a professorship in Barnett’s name. The campaign was kept a secret and just announced to define the college’s mission, vision, and values yielded the new vision statement: “Awaken, Enlighten, and Barnett this past fall. “I’m not sure if shock is the right word. Transform.” This new tag line is personified through I feel unworthy—it is a very humbling thing. I feel there are work of faculty like Dr. Bill Barnett, B’67, L’82, so many other professors, people who taught me who are professor of economics and Chase Bank Professor. more deserving. But I am honored,” says Barnett. To date, more than $70,000 has been raised in cash and “Remember always—students first,” says Barnett. “We are here to educate the whole person. Mentally, morally, pledges from a small handful of Barnett’s former students to establish the William Barnett Professorship in Free socially—have they learned something?” Barnett has served on the economics faculty at Loyola for “I had many great teachers and advisers at Loyola, but 35 years. He and fellow finance Dr. Barnett stands out in terms of being a lifelong influence. professor, Dr. Ron Christner, I started this project because I am still inspired by my studies both started teaching in the fall at Loyola and I wanted to honor him and what he has done.” of 1974 and are now the –– Eric Eckholdt, B’89 longest-serving faculty in the college. But that’s not where Barnett’s Loyola story began. In 1958, he was a freshman at Enterprise Studies. The gifts will be matched by $40,000 Loyola majoring in physics. An active social life and poor from the Louisiana Board of Regents, creating an study habits earned him a four-year hiatus, serving the first endowment that will live on in perpetuity at Loyola as a of those two years in the Navy. testament to Barnett and his legacy. Professors for When he returned to Loyola he had a mission: study generations to come will use interest generated annually hard and avoid picking a major with a foreign language from the endowment to continue to research, study, and requirement. “I have absolutely no strength in foreign travel to promote the values of free market economics to languages, none,” says Barnett. He found foreign language- students, academicians, and business leaders throughout free comfort in the College of Business and fell in love with the world. With the campaign no longer a secret, efforts to raise economics because of the wonderful teachers. That’s when he decided what he wanted to do was teach. And not just additional funds in support of the professorship are anywhere, but at Loyola where he felt so much had been commencing. Letters will be mailed shortly to Barnett’s given to him. “I got a wonderful education here and wanted former students, offering them the opportunity to make to be part of bringing that forward,” says Barnett. “I only their own gift as a tribute to Barnett. To make a gift hope that we’re as good today as the ones who taught me.” online, visit www.loyno.edu/giving or contact Traci The answer is, “Yes”—you are that good, a view shared Wolff at (504) 861-5453 or twolff@loyno.edu for among many of Barnett’s former students. To pay tribute to more information.
Spring 2009 www.business.loyno.edu
25
ExecSpring09_26_27:128_loyolaSpring_10_17 4/6/09 11:10 AM Page 10
Soul, Spirit, and Saddle Shoes
Dr. David Luechauer
ExecSpring09_26_27:128_loyolaSpring_10_17 4/6/09 11:11 AM Page 11
David Luechauer, Ph.D., brings new perspective to the CoB O
n his tidy desk, College of Business Associate Dean presenter, whose works have been published in various David Luechauer, Ph.D., has a paperweight bearing his national periodicals and heard in dozens of cities all over personal motto: “You must first become the change you the country and internationally. He and Locander also want to see in others.” Judging from that motto, it is no have written a series of management articles based on surprise that “Doc Dave,” as he is affectionately known, the philosophies of Dr. Seuss for Marketing has fully embraced the College of Business mission to Management magazine. “awaken, enlighten, and transform.” Outside of academia, Luechauer has served as a general Luechauer was lured by College of Business Dean Bill manager of a radio station and as a group facilitator in a drug Locander from Jacksonville University in Florida last and alcohol rehabilitation center. He regularly consults for fall, where he served under Locander as associate director businesses, which include Georgia Pacific, Fidelity, NCAA, of the Davis Leadership Center. In his current position, Bank One, Sandals Resorts International, Roche, Air Luechauer relishes the opportunity to help encourage Jamaica, and the Indianapolis Colts. Locander says Luechauer’s breadth of experience and and ease the work of professors and instructors. “I remember my deans helping me, and now I am at a “Dr. Luechauer brings to Loyola a rich background in leadership stage in my life to return the favor. Plus, I get to help play a development and team management. He will play a vital role role in creating a college,” in our M.B.A. Program and soon be known to our students as Luechauer says. simply ‘Doc Dave’.” Before JU, Luechauer was –– Dean Bill Locander associate professor of management and the leadership area coordinator at Butler University in popularity with students will serve the College of Indianapolis, Ind., from 1992 to 2004, and he was a Business well. Luechauer loves golf and wearing saddle shoes, visiting assistant professor of management at Miami University of Ohio from 1990 to 1992. He has theater, and classic authors like Steinbeck and Hesse, but received numerous awards and been recognized as an he has found his three-year-old son, Michael, “to be the outstanding teacher by his students, Who’s Who in best hobby and entertainment.” Luechauer and his family have settled into Higher Education, and Beta Gamma Sigma international business fraternity. Since 2002, Uptown New Orleans, and now he, who was the Luechauer has been a visiting associate professor in president of the nonprofit Children’s Theater the M.B.A. Program at the Helsinki School of Institute in Indianapolis, is looking for ways to Economics in Finland, where he was named 2005 engage in civic and charitable pursuits. Saastamoinen Foundation professor of year. Luechauer, who once considered becoming an “Doc Dave” holds a doctorate in organizational ordained minister, feels in higher education, and at behavior and social psychology from the University of Loyola, he has been able to merge his vocation and Cincinnati, a master’s degree in communication and calling to “be a facilitator of people’s dreams.” “Anybody psychology from Miami University of Ohio, and a can espouse their values,” Luechauer says. “Not bachelor’s degree in finance and communication from everybody can live them. Helping people to identify Ohio Northern University. He is a prolific writer and their values and live them, that’s exciting to me.” Spring 2009 www.business.loyno.edu
27
ExecSpring09_28_29:128_loyolaSpring_10_17 4/6/09 11:11 AM Page 10
Off to the Market 28
Loyola Executive
ExecSpring09_28_29:128_loyolaSpring_10_17 4/6/09 11:12 AM Page 11
Students gain real $$$ experience investing in stocks W
hile many well-known investors are having (Sinopec), a petro and chemical company trouble figuring out the stock market these based in China; Waste Management (WMI), a days, a group of Loyola students are taking a Houston-based company that is the leading turn at investing in the market through a new provider of comprehensive waste and student-managed investment fund class. The environmental services in North America; class, taught by Dr. Ron Christner, finance Rio Tinto, P.L.C., a mining and minerals professor, challenges students to apply company with home bases in both the UK and investment and portfolio concepts in order to Australia (founded in 1873 to mine ancient manage a $100,000 securities portfolio, funded copper workings at Rio Tinto in southern by Loyola University. As Christner explains, Spain); and Ford Motor Company, a U.S.“the class is divided into groups of three to five based automotive company started in 1903. students, and each group follows a sector or Domestic ETF purchases include SPY, industry. Each student in the “It’s been very educational to see how two or more stocks fit together group conducts an in a portfolio and how to go about reducing unnecessary risk. In in-depth analysis of order to assess the performance of our investments meaningfully, we one stock in their must evaluate the portfolio over the long term. That will determine sector. The students then turn in biwhether or not we chose the right stocks.” weekly reports —Juan Danzilo, Finance/International Business Major where they evaluate the performance of their individual stocks and sectors relative to which mimics the SNP500 and the QQQQ an appropriate index.” comparable to the NASDAQ. Foreign ETFs Based on all of their analyses and are PIN (India), FXI (China), and EWZ evaluations, each student group presents their (Brazil). Class groups are responsible for investment recommendations to the class for a tracking the stocks and ETFs and reporting vote on which stocks to purchase. The class their findings to the class. At of the time of spent $25,000 on a mixture of individual stocks publication, the class’s portfolio was up and exchange-traded funds (ETFs). An slightly, which given the current market, is an exchange-traded fund is an investment vehicle accomplishment in and of itself. that is traded on stock exchanges, much like The primary group leaders for the course are stocks. ETFs hold assets, such as stocks or Juan Danzilo, Christine Mainguy, and Robert bonds, and trade at approximately the same Swanton. All three are graduating seniors. price as the net asset value of its underlying The investment class provides students with assets over the course of the trading day. Most the opportunity to sharpen and apply their ETFs track an index, such as the Dow Jones critical thinking skills to real-world Industrial Average or the S&P 500. investment experience. The students enrolled This semester, students purchased four in the class are appreciative to have such an stocks and five ETFs. The stocks include: opportunity and encourage other students to China Petroleum and Chemical Corporation enroll in the future.
Spring 2009 www.business.loyno.edu
29
ExecSpring09_30_31:128_loyolaSpring_10_17 4/8/09 3:12 PM Page 10
The College of Business Picnic Every semester,
Wouldn’t be a picnic without
CoB Picnic brings out
the College of Business faculty and staff host a picnic for our students to let them know just how much we
Good food and good friends at the CoB Picnic.
Professors Hickman
appreciate them. Last fall’s picnic was held the day before Halloween. Some folks that attended were definitely transformed… Gold-medal Professor Brett Matherne
ExecSpring09_30_31:128_loyolaSpring_10_17 4/8/09 3:13 PM Page 11
Students enjoy the opportunity to relax.
t
burgers.
Dr. Kendra Reed channels her inner pumpkin.
CoB staff Mary Sue, Valerie, and Janet – Picnic Planning Superheroes!
the smiles.
Sunshine and smiles make the day a sucess.
n
and Yao debate proper grilling techniques.
Dean Locander pitches out wolves to picnic goers. poses for a photo op.
ExecSpring09Cover:SummerCover 4/6/09 10:22 AM Page 2
Campus Box 909 7214 St. Charles Avenue New Orleans, LA 70118-3565
Non-Profit Org. US Postage PAID Burlington, VT 05401 Permit no. 185