CoxToday_Summer 2010 by James Stewart

South e r n M e t h o d ist Un i v e r s i t y

Cox S c h o o l o f B us i n e ss

Su mm er 2010

Max Ooi (BBA â&#x20AC;&#x2122;13) journeyed from Kuala Lumpur, Malaysia, to the SMU Cox School of Business.

The Demand for Global leadership SMU Cox is transforming the business community through diversity and international perspective.

Growing Diversity at SMU

Cox Alumni Making Their Mark

New Faculty Research

Students from near and far enrich the campus experience.

In the military, in the world.

Examining the fallout from the financial crisis.

Three top-20

MBA programs. career move.

One smart

At SMU Cox, you can earn an MBA your way. Choose from our full-time, Professional and Executive MBA programs. All are ranked in the top 20 by leading business publications such as Bloomberg BusinessWeek, U.S. News & World Report and The Wall Street Journal, and one is just right for you. Make your move and pursue a Cox MBA. Visit coxgrad.com for information. Did you know the Cox PMBA is ranked #15 in the nation by Bloomberg BusinessWeek? Fall 2010 applications are currently being accepted. January 2011 applications will be accepted starting 8/31/10. Call Vicki Cartwright at 214.768.3707.

SMU will not discriminate on the basis of race, color, religion, national origin, sex, age, disability or veteran status. SMUâ&#x20AC;&#x2122;s commitment to equal opportunity includes nondiscrimination on the basis of sexual orientation.

DEAN Albert W. Niemi, Jr. Assistant dean of external Relations, Executive director of the cox alumni association Kevin Knox Assistant Dean of Marketing and Communications & Managing Editor Lynda Welch Oliver Director of development Robin Maness Contributing editors Alicia Brown Andrea Hugg WRITERS Andrea Hugg Pamela G. Kripke Lynda Welch Oliver Mark Stuertz Jennifer Warren

Photographers Karen Campbell Ren Morrison Holt Haynsworth

HOW TO REACH US Marketing and Communications Office Cox School of Business Southern Methodist University PO Box 750333 Dallas, TX 75275-0333 E-mail: communications@cox.smu.edu Web site: www.cox.smu.edu Main office: 214.768.1794 Fax: 214.768.3267

Group Publisher Kristen Bohn Design DIRECTOR Mark Mahorsky PRODUCTION MANAGER Pedro Armstrong DIGITAL IMAGING SPECIALIST John Gay ACCOUNT SERVICE Manager Jennifer Mosley BUSINESS DEVELOPMENT DIRECTOR Lindsay Thomas

How to Reach Us 750 North St. Paul Street, Suite 2100, Dallas, Texas 75201 www.dcustom.com 214.939.3636 coxtoday is designed by D Custom, 750 North st. paul street, SuiTE 2100, Dallas, Texas 75201. Copyright 2010 by coxtoday. All rights reserved. The marketing and communications office retains the right to determine editorial and advertising content and manner of presentation. the opinions expressed in the magazine do not necessarily reflect official university policy. letters to the editor and contributions to class notes Are welcome.

www.cox.smu.edu

Features

The Demand for Global Leadership

SMU Cox is influencing the way the world does business, one student at a time, through the innovative Global Leadership Program. By Mark Stuertz

The Changing Face of SMU

Diversity enriches learning in and out of the classroom as the University continues its commitment to provide a broad economic and social experience. By Pamela G. Kripke

Departments 2

from the dean

program news

faculty & staff achievements

in the news

faculty research

cox in the military

life of an endowment

development

alumni profiles

executive board

calendar of events

alumni board

cox connections

coxFrom the Dean

alumni who are finding success in the

Globalization, as defined by trade and

global marketplace.

communication through international

SMU is also increasing its presence

networks, is the vital means by which most successful companies grow. While

on the global stage with the growing

we may know this intuitively, the scale

excitement surrounding the opening of

and immense potential are undeniable

the George W. Bush Presidential Center.

with one quick review of the population

Within the Center is the Bush Institute,

figures. With 306 million people, the

which focuses on four areas of research:

United States has just 5 percent of the

education reform, global health,

world’s population, thus providing

human freedom and economic growth.

an overwhelming case for companies

Intended to focus on the future, not the

to look beyond our borders to seek

past, the Institute has hosted several

out new customers and global trade

international conferences this year with

opportunities.

the Cox School’s involvement. In March,

The best business schools recognize

Afghan representatives and members

more than 90 countries. As a result of

of the U.S.-Afghan Women’s Council

economic landscape. At the Cox

our increasingly international student

met to discuss educational programs

School of Business, we consider it our

body, we offer students enhanced

and business development projects.

mission to influence the way the world

classroom discussion, a dynamic

That same month, the Cox School’s

does business, one student at a time.

curriculum and heightened cultural

Maguire Energy Institute co-sponsored

We believe it is imperative for our

understanding.

a conference centered around the

graduates to leave Cox with an in-depth

You will read about some of Cox’s

economic, environmental and national

understanding of the cultural, economic,

most impressive students of the world –

security implications of natural gas as

political and demographic influences

the brave men and women who served

an energy source, titled, “Natural Gas

shaping the international marketplace.

in our country’s military. While we

Nation.” The world-class event brought

understand economic freedom is

former President Bush, international

revamped the Cox School’s international

fundamental to a country’s prosperity,

speakers and other esteemed leaders

program in 1999. Now in its 11th year, our

these students have personally witnessed

and elected officials together to discuss

American Airlines Global Leadership

the real-world benefits that freedom

the benefits of this prevalent fuel as

Program is unrivaled. Each year, dozens

affords. We are honored to have them in

well as the environmental challenges of

of international executives graciously

our classrooms.

recovering it.

With this mission in mind, we

welcome our students abroad to

Of course, none of our prestigious

This is an exciting time to be part of

provide an overview of their overseas

programs would be possible without our

the SMU Cox School of Business. As

operations and offer invaluable business

generous donors. In this issue, we share

always, we owe a debt of gratitude to the

perspective.

the story of Carolyn and David Miller’s

generous men and women who have

endowment to the Cox School, which

dedicated their time and resources to

examine these and other ongoing

supports one of our most prominent

our university. We thank them for all that

efforts to prepare students for the new

faculty members, Gordon Walker,

they do and hope all Cox alumni find

world economy. We will also illustrate

chair of the department of strategy &

inspiration within these pages.

SMU’s growing international diversity

entrepreneurship. Walker has taught

by sharing profiles of some of our most

Global Strategy for almost 30 years, and

globally minded students.

his legacy is evident in the many Cox

In this issue of CoxToday, we’ll

Today, our undergraduates hail from

and embrace this rapidly shifting

Summer 2010

coxprogram News

Undergraduate Programs

BBA Scholars Score Prestigious Internships The Cox BBA Scholars continue to secure top internships. John Angle and Natalie Bornowski were selected to work at the Office of George W. Bush, and Kaitlin Lester secured a summer internship with Frost Bank. Filip Lorinc landed a summer internship at Merrill Lynch, where he will be working with the M&A and strategic advisory areas and Grant Heimer will be interning with Hodges Capital.

Cox BBA Scholar Promotes MBA Programs to Undergraduate Students The SMU Cox MBA admissions team, in collaboration with the Forté Foundation, hosted the first annual MBA Career Lab on April 6. With marketing efforts led by BBA scholar Natalie Bornowski, the event was designed to introduce undergraduate women from all academic disciplines to opportunities for future graduate business education. The event included networking with Cox’s Forté Fellows, a chat with Erin Sackash (MBA ‘07) on life after the MBA, and tips on how to be a competitive candidate for business school admission. Since 2008, SMU Cox has partnered with Forté Foundation, a consortium of major corporations and top business schools, to encourage women to further their business education and direct them toward leadership roles in business.

Edwin L. Cox BBA Leadership Institute Now Required for Cox BBAs     The Cox School of Business conceived the Edwin L. Cox BBA Leadership Institute, directed by Paula Strasser, to take students beyond textbook theories and into real-life business situations. Due to the success of the BBA Leadership Institute, all BBAs matriculating after August 2009 are required to take the three-hour credit course, “Business Communications and Leader Development.” This course will teach students important business fundamentals and applied skills in effective business presentation, business writing, Capstone business projects, team presentations, ethics/integrity, leadership styles, career and nonprofit management and interpersonal communications. The classes are designed and taught by corporate adjunct faculty and guest speakers. A special section of this course has been dedicated to the BBA Scholars Program, which recognizes highly qualified students for admission to the Cox School as first-year students.

www.cox.smu.edu

coxprogram News

Graduate Programs

EMBAs Learn About Doing Business in China

Second Place, SMU Cox – Todd Westerburg, Kyle Manley and Gavin Worthy

SMU Cox MBA Students Take Second Place in Back-to-Back MBA Case Competitions and Research Challenges The Association for Corporate Growth, Inc. partnered with SMU Cox to host the ACG Private Equity MBA Case Competition. The ACG Cup is a case study competition designed to give students from leading MBA programs real-world experience and invaluable insights into mergers and acquisitions, investment banking, financial advising and private equities. Taking second place at the competition was SMU Cox’s team comprised of Kyle Manley, Todd Westerburg and Gavin Worthy. The same team went on to compete in the regional CFA (Charter Financial Analyst) program’s Investment Research Challenge and placed second, making SMU the only school to place in both competitions. Students competed by analyzing, writing and presenting a report recommending a “buy,” “sell” or “hold” position on a publicly traded company. Students were assigned a specific company and competed before a panel of leaders in the investment community at the Texas Investment Portfolio Symposium (TIPS).

The Executive MBA Class of 2010 returned from a successful and productive trip to Beijing and Shenzhen in March. The 114 participants included students, spouses, family members and SMU faculty and staff including Ross Stoddard, Tom Perkowski, Linda Kao and Ellen Lee. After two days of cultural tours at the Great Wall, Forbidden City and Tiananmen Square, the trip featured visits to international companies and presentations from business representatives. These included: the U.S. Embassy in Beijing, Huaxia Dairy Farm, Founder Group, ZTE, Shenzhen Development Bank, China Vanke Co., Luen Thai Garment Co., Mission Hills Golf Club and the Port of Shenzhen. Everyone agreed that this was an unforgettable and enriching firsthand experience in learning about China’s fast-growing economy. EMBA China Trip – Alan Chuang, Manish Sethi, Gregg Schneider, Dnyanesh Shirali

SMU Cox Named 2009 ALPFA Student Chapter of the Year SMU Cox received the 2009 ALPFA (Association of Latino Professionals in Finance and Accounting) Student Chapter of the Year Award for having the most growth in active membership within a short span of time after receiving an official charter. The Cox chapter was recognized for exemplifying scholarship programs, providing career opportunities for business professionals and promoting diversity within corporate America and/or government.

Summer 2010

SMU Cox Partners with Wipe Out Kids’ Cancer The SMU Cox Consulting and Corporate Strategy Club (C&CS) partnered with Wipe Out Kids’ Cancer (WOKC) to gain valuable nonprofit consulting experience and give back to a great cause. What started as a small group of projects blossomed into a long-term relationship, with two C&CS members joining the WOKC Board of Directors. Students worked with board members and staff to craft a three-year strategic plan, analyze their financials, revamp their marketing efforts and revitalize a new development push. Emerging from these projects were a new website, social networking and development efforts and a new cost-benefit analysis program. A recent focus of C&CS was the “Jersey Mike’s” campaign, in which a portion of all sandwich sales from 11 locations were donated to WOKC, helping to raise $50,000 for the nonprofit organization. Wipe Out Kids’ Cancer was founded 30 years ago by Cindy Brinker Simmons, the daughter of the late Maureen Connolly Brinker and Norman Brinker. Simmons started WOKC to champion investment in innovative pediatric cancer research. In addition to research grants, WOKC adopts 15-20 Ambassador families each year and provides fun kid-focused programs and events to help alleviate everyday concerns of those living with pediatric cancer. Board members of Wipe Out Kids’ Cancer join officers of the Consulting and Corporate Strategy Club

Front Row - Paula Strasser (WOKC + BLC), Dan Brummer (WOKC) and Ann Cain (WOKC); middle row - Abhishek Sengupta (FTMBA ‘11), Ginger Adams (WOKC), Kathy Ramsland (WOKC), Gayle Horton (WOKC), Sophia Tay (FTMBA ‘11), Linda Randall (WOKC), and T.J.Hill (FTMBA ‘11); back row - Kevin Shtofman (FTMBA ‘10), Time Wile (FTMBA ‘11), Gavin Worthy (FTMBA ‘10), Ann Podeszwa (WOKC) and Gary Foss (WOKC)

Cox Scholars Spend a Week in Washington The Cox Distinguished MBA Scholars spent their spring break in Washington, D.C., visiting government organizations and institutes including the Pentagon, the U.S. Securities & Exchange Commission, the Investment Company Institute, the U.S. Senate and U.S. House of Representatives, the Senate Foreign Relations Committee Hearing on “Future of Public Diplomacy,” the U.S. Department of Commerce, U.S. Department of State, U.S. Department of Treasury and the U.S. Department of Labor. This trip gave students a rare insider’s view of how business is conducted in Washington and into the inner workings of the U.S. government, thus broadening their understanding of the connections between business and government. www.cox.smu.edu

coxprogram News

Graduate Programs

Cox Students Commercialize Technology to win the SMU Business Plan Competition Cox MBA students collaborated with the Lyle School of Engineering faculty in February to win the annual SMU Business Plan Competition. Teams competed for more than $60,000 in cash, prizes and an opportunity to advance to regional and national business plan competitions. MP Flow, a business plan designed by Cox MBA students Jon Mueller and Matthew Vroom, was awarded first prize. MP Flow is designed to manufacture and sell the proprietary technology developed by mechanical engineering professor, Yildirim Hurmuzlu. The MP Flow team also won first place in the “elevator pitch” competition.

SMU Cox Accounting Program Receives Accolades SMU Cox is one of 15 graduate schools of business named in The Princeton Review’s second annual “Student Opinion Honors for Business Schools” list in the accounting category. The list appeared in the April 2010 issue of Entrepreneur magazine. In 2009, Public Accounting Report, the independent newsletter of the accounting profession, ranked the SMU graduate program No. 17 among midsize schools. This recognition was the result of more than 1,900 accounting educator survey responses answering the question: “Which programs consistently turn out students capable of some day attaining partner status?” These honors come at a time when the Cox School is experiencing increased application and enrollment for the Master of Science in Accounting (MSA) program. As of March, applications for 2010 were up 50 percent over last year.

Cox Student Participates in IPADE’s International MBA Week: Doing Business in Mexico This spring, José Gómez (PMBA ’10) participated in a comprehensive course at IPADE Business School covering political, cultural and economic issues related to conducting business activities in Mexico and Latin America. Students from business schools around the world participated in the program featuring presentations on the telecom, fashion, entertainment and food and beverage industries. Other activities included the analysis of business models of local companies and case studies of international companies in Mexico, as well as Mexican transnational companies. Summer 2010

Executive Education

Executive Education Hosts International Journalists In March, SMU Cox hosted 10 prominent Chinese journalists on campus for a four-day program sponsored by Mary Kay China. As part of its corporate social responsibility initiatives, Mary Kay China wished to build bridges between U.S. and Chinese culture by exposing influential journalists to key aspects of U.S. business and politics as well as to their corporate “hometown.” The participating journalists received executive-level instruction on the American political system, trends in journalism, entrepreneurship and global strategy.

Executive Education Adds New Programs for Oil and Gas Leaders For decades, energy industry leaders around the world have counted on Cox Executive Education for programs that pave the way for stronger performance and sustainable success. In April, new Strategic Financial Skills and Strategic Leadership Skills programs launched in Dallas. The worldclass programs included participants from Nigeria, Libya, Denmark and Australia. These programs are designed to equip oil and gas executives with cutting-edge business ideas within a highly collaborative environment.

www.cox.smu.edu

Executive Education to Develop Hispanic Corporate Executive Development Program The National Hispanic Corporate Council selected SMU Cox to develop its Corporate Executive Development Program for Hispanic executives. Cox was selected because of its overall prestige and quality, its convenient location in an area of growing Hispanic influence and its commitment to developing business leaders. The program’s objective is to accelerate the careers of highpotential Hispanic managers and executives through a comprehensive educational experience.

coxprogram News

Executive Education

Cox Executive Education Conducts Custom Leadership Program for Sabre Cox Executive Education delivered two international modules for Sabre Holding’s high-potential vice presidents in order to provide instruction in global business and exposure to Sabre’s international operations. This year, the global modules were presented in Bangalore, India, and London, England. Sabre Holdings, a Dallas-based global company, has established a long-term academic relationship with Cox Executive Education and delivers this program each year for their global operations. The program was recognized for “Excellence in Academic Partnership” by Chief Learning Officer magazine in 2009.

Centers of Excellence

The George W. Bush Institute Launches Inaugural Programming As the policy research arm of the George W. Bush Presidential Center, the Bush Institute hosted a series of conferences this spring, launching its research and academic programs. In keeping with the Institute’s mission as a center for scholarship and action, the conferences brought together leaders from academia, business and public policy to debate, discuss and make recommendations on topics including educational leadership, educating and empowering women and girls in Afghanistan, expanding the use of clean-burning natural gas, and using the Internet to empower dissidents. The George W. Bush Institute and the Maguire Energy Institute at SMU Cox partnered to present “Natural Gas Nation” on March 25. At the conference, business leaders, elected officials and leading scholars joined former President George W. Bush to discuss the economic, environmental and national security implications of the recent discovery that America’s supply of domestic natural gas is much larger than previously thought. Among the conference participants: the Honorable Edward G. Rendell, Governor of Pennsylvania, Dan Yergin, PulitzerPrize-winning author of The Prize: The Epic Quest for Oil, Money and Power (keynote address), scholar Peter Huber, former CIA Director Jim Woolsey, Chairman Victor Carrillo of the Texas Railroad Commission, and Trevor Rees-Jones, President and CEO of Chief Oil & Gas. Additional panelists discussed the environmental benefits of this cleaner burning fuel, as well as the environmental challenges of recovering it. The George W. Bush Institute is a center for scholarship and action that focuses on four major areas: education reform, global health, human freedom and economic growth, with an emphasis on encouraging social entrepreneurship and empowering women across all its work. The Institute is part of the George W. Bush Presidential Center, which will also include an archive and museum, and will be located on the campus of SMU.

Summer 2010

Centers of Excellence

Graduate Marketing Certificate Program Expands to the Plano Campus The Graduate Marketing Certificate Program (GMCP), in its 22nd year on the Dallas campus, launched at the SMU-in-Plano campus this spring. The GMCP is a 21-week program that focuses on the foundations of marketing such as social networking, online marketing and customer loyalty. The GMCP is offered on the main campus each year in September and at SMU-in-Plano in January. For more information, visit www.marketingcertificate.cox.smu.edu or call 214.768.2722.

The 2009-2010 GMCP class after graduation

Business Intelligence Graduate Certificate Program Celebrates Another Successful Year

Business Intelligence Graduate Certificate Program graduation in December 2009

Two Business Intelligence Graduate Certificate Program (BIGCP) classes recently celebrated graduations. Companies that sent participants included 7-Eleven, Citibank, Fidelity, JCPenney, Baylor Healthcare System, Time Warner Cable and CitiFinancial, among others. The 15-week program is designed for managers and professionals in finance, marketing, IT or operations who analyze business data. Topics include decision modeling and analysis, data and knowledge management, data mining, customer relationship management and revenue management. The next session will start in October 2010. For more information, visit http://tiny.cc/bigcp or call 214.768.1246. www.cox.smu.edu

coxprogram News

Centers of Excellence

Cox Business Leadership Center Recognizes Student and Instructor Accomplishments

The Edwin L. Cox Business Leadership Center (BLC) is committed to helping students attain exceptional leadership development experience at the Cox School by providing a wide range of seminar topics and special programs. The Dean’s Circle is an elite group of students who have spent more than 90 contact hours in the BLC by accumulating more than 30 BLC credits through seminars and special programs. The BLC congratulates the newest Dean’s Circle members: Erin Bailey (PMBA ’10), Matthew Canon (PMBA ’09), Will Cromley (PMBA ’09), Mark Emmenegger (MBA ’10), Chris Goodman (PMBA ’10), Amber Kosik (PMBA ’10), Navin Manohar (PMBA ’09), Sandy Mathews (PMBA ’10), Krishna Matta (PMBA ’09), Patrick O’Brien (PMBA ’10), Leslie Quiros (PMBA ’09), Madhu Rajagopal (MBA ’10), Wilfrido Rincon (PMBA ’09), Meribah Speare (PMBA ’09), Wendy Westmoreland (PMBA ’09) and Marian Wilson (PMBA ’09). The BLC would also like to recognize the outstanding

instructors who have earned a Teaching Excellence Award since December 2009. In order to receive a Teaching Excellence Award, the instructor must receive at 4.8 or higher out of a 5.0 evaluation from the students. Those awarded include the following (number denotes awards received while teaching at the BLC): Ed Dawson, Capital Alliance Corporation (32), Merrie Spaeth, Spaeth Communications (18), Dave Gunby, Formerly EDS (10), Randy Pennington, Pennington Performance Group (10), Mitch McCasland, Brand Inquiry (9), Henry Evans, formerly Vistage (9), Randy Mayeux, Creative Communication Network (7), Alex Bagden, Oak Island Capital Management (6), Rob Morton, Walt Disney Company (4), Chris Caracci, Walt Disney Company (3), Lothar Katz, formerly TI (3), Cathy Groos, formerly IBM and Pritchett (2), Joe Jordan, Dell Services (2), Tommy Clark, iFranchise, formerly Pearle Vision and Snap-On Tools, and Jim Young, Teleportec, formerly EDS. Three new seminars have been added to the spring and summer seminar offerings. The BLC welcomes new instructors: Keith Lewis, formerly Anderson Consulting, Eleonore Pieper, formerly Perot Systems, and Gene Scott, formerly Dell. For more information about the Business Leadership Center, please visit www.blc.cox.smu.edu.

Jim Hackett, CEO and President, Anadarko Petroleum Corporation speaks at SMU Cox In January, The Maguire Energy Institute at the SMU Cox School of Business presented “A Conventional Fuel as an Unconventional Answer for Climate Change and National Security,” featuring Jim Hackett, CEO and president, Anadarko Petroleum Corporation, the second-largest producer of U.S. natural gas. The presentation was part of the Frank Pitts Lecture Series, which was established in 2002 by the Custard Family and Cary Maguire for the purpose of educating members of the academic community as well as the general public on important energy issues.

Summer 2010

Centers of Excellence

Online Business Research Guides Popular with Students and Alumni The librarians in the Business Information Center (BIC) work closely with faculty, alumni and students to created detailed online research guides for a variety of business topics. Library databases, free websites, books are suggested for questions ranging from accounting to international business and much more. Other heavily used guides were Entrepreneurship and Careers. The BIC’s Research Guides are available to students, faculty, staff and alumni 24-7 from the library home page. Visit www.bic.cox.smu.edu for more information.

Global Connections

SMU Cox Hosts Vietnam National University School of Economics and Law In February, SMU Cox was honored to host Nguyen Van Luan, dean, and Nguyen Ngoc Dien, vice dean of the Vietnam National University School of Economics and Law for a daylong visit. The dean and vice dean met with leaders from the Cox School to learn about the school’s various departments and exchange ideas on how to work together in the future. They began their day by visiting with W. Michael Cox, director of the O’Neil Center for Global Markets and Freedom, where they discussed levels of economic freedom among developed countries and measures Vietnam must take to become more industrialized. Additional meetings focused on Cox Executive Education, the Southwestern Graduate School of Banking, the Business Leadership Center, the Maguire Energy Institute, the Business Information Center and the Caruth Institute for Entrepreneurship. Vietnam National University is the largest comprehensive higher education and research center in Vietnam.

SMU Establishes Shanghai Alumni Chapter SMU Cox established an alumni network in China in 2002, through the assistance of Linda Kao, assistant dean for global programs, and A.J. Hu (MBA ’01). In March, the network was formally recognized as an SMU Alumni Chapter. An event at Le Meridien, Shanghai was held to celebrate the establishment. Kao is pictured with the chapter president, A.J. Hu (MBA ’01), and SMU Cox alumni from the area.

www.cox.smu.edu

coxAchievements

Faculty & Staff

Achievements Assistant ITOM Professors Sreekumar Bhaskaran and Karthik Ramachandran had the paper “Managing Technology Selection and Development Risk in Competitive Environments” accepted for publication in Production and Operations Management. Neil Bhattacharya, associate professor of accounting, was invited to give a research seminar at the colloquia series at the Carlson School of Management, University of Minnesota. He presented his co-authored paper titled “Direct and Mediated Associations among Earnings Quality, Information Asymmetry and the Cost of Equity.” Bhattacharya was selected to serve on the American Accounting Association’s Competitive Manuscript Award Committee. The Competitive Manuscript Award is one of the most prestigious awards given by the American Accounting Association. Richard Briesch, associate professor of marketing, presented “Destination Categories: How the Categories in a Household’s Basket Affect their Store Choice Decision” last year at the

Workshop on the Econometrics of Demand, held at Brown University and sponsored by the Centre for Micro Data Methods and Practice. This year, he gave the presentation in London at the Institute for Fiscal Studies, co-sponsored by the Journal of Applied Econometrics and CEMMAP. His paper “Neural Network Applications in Consumer Behavior,” co-written with Cox’s Priyali Rajagopal, was accepted at Journal of Consumer Psychology. McGraw-Hill Irwin published the 14th edition of Real Estate Finance and Investments, by William B. Brueggeman, Corrigan Chair in Real Estate. Brueggeman has been the lead author of this textbook for the past 30 years. The book is now in its 56th year of publication and, during this time, has been used at over 200 colleges and universities throughout the world. It was most recently cited as an authoritative source by the Congressional Oversight Panel in its Oversight Report, “Commercial Real Estate Losses and the Risk to Financial Stability.” Andrew H. Chen, distinguished professor of finance, served as a member of the 2010 Western Finance Association Program Committee. He presented a paper, “Optimal Corporate Strategy under Uncertainty,” and chaired a session at the EFMA Symposium held in Beijing in April. He delivered an opening keynote speech, "Lessons from the Recent Financial Crisis," at the 2010 Taiwan

Finance Association Annual Conference in May. In July, he will present “China’s Corporate Bond Market Development: Information Asymmetry and Security Design Implications” at the Shanghai Finance Conference. His research, “Models for Portfolio Revisions with Transaction Costs in the Mean-Variance Framework,” was published in the Handbook of Portfolio Construction: Contemporary Applications of Markowitz Techniques. His two papers, “The Long-term Relationships under Climate Change between Economic Activity and Metal Utilizations Using the Forgetting Factor” and “Pricing and Risk Management of Variable Annuities and Equity-Indexed Annuities,”were published in Research in Finance, Vol. 26, in March 2010. In December 2009, Chen received a research grant from the Australian Research Council of the Australian government. He will be a Visiting Fellow at the Australian National University in August. W. Michael Cox, director of the O’Neil Center for Global Markets and Freedom, was appointed to the International Business Council of the Greater Dallas Chamber of Commerce. Since May 2009, Cox has given more than 25 presentations on the economy throughout DFW and the nation. His article, “Variety, Globalization and Social Efficiency,” was accepted by the Southern Economic Journal. His paper, “Labor Market Globalization in the Recession and Beyond,” was published in the Federal Reserve Bank of Dallas’ Economic Letter. “Globalization’s Upside: Opportunity Knocks for America’s Services Pros” is forthcoming in Leadership Excellence. Summer 2010

David Croson, associate professor of strategy and entrepreneurship, presented the paper “Slipping the Surly Bonds: The Value of Autonomy in Self-Employment,” co-written with Cox’s Maria Minniti, at a workshop organized jointly by the Institute for the Study of Labor (IZA) and the German Institute for Economic Research (Deutsches Institut für Wirtschaftsforschung -DIW Berlin) in Bonn, Germany. Amar Gande, assistant professor of finance, had the paper “Bank Debt versus Bond Debt: Evidence from Secondary Market Prices” accepted for publication in the Journal of Money, Credit and Banking (JMCB). Bezalel Gavish, ITOM professor and endowed chair, gave a keynote address at the fourth International Conference on Ubiquitous Information Technologies & Applications (ICUT 2009), which was held in Fukouka, Japan. The title of his presentation was “Are there Hard Limits on the Growth of the Internet and Computing Capacity?”

www.cox.smu.edu

Roger Kerin, Harold C. Simmons Distinguished Professor of Marketing, published the 10th edition of Marketing (McGrawHill) and the 12th edition of Strategic Marketing Problems: Cases and Comments (Prentice Hall). Dwight Lee, William J. O’Neil endowed chair in Professor of Global Markets and Freedom, had the paper “The Clergy and Economists: Two Windows on Common Objectives” published in the Journal of Markets & Morality. Simon Mak, adjunct professor and associate director of the Caruth Institute for Entrepreneurship, presented a paper titled “Bayesian Selection Method and Systems Modeling for Enhancing the Success of Venture Investments in Technology Entrepreneurship” at the annual conference of the United States Association of Small Business and Entrepreneurship (USASBE). Darius Miller, finance professor and Caruth chair, had the paper “Escape from New York: The Market Impact of Loosening Disclosure Requirements” published as the lead article in the February issue of the Journal of Financial Economics.

Maria Minniti, professor and Bobby B. Lyle Chair in Entrepreneurship, had the article “Gender Issues in Entrepreneurship” published in Foundations and Trends in Entrepreneurship. The paper also was published as a monograph in the series “The Essence of Knowledge” by NOW Publishers. Her co-authored article, “Entrepreneurship and the Invisible Hand,” was published in Entrepreneur and Enterprise, Lights and Shadows from the Italian Experience. Her edited volume titled “The Dynamics of Entrepreneurship: Theory and Evidence” is forthcoming in Oxford University Press. She presented her co-authored paper “Survival and Financing of Black-Owned Startups in the U.S.” at the American Economic Association Meeting. Minniti held the third Ph.D. workshop for the Global Entrepreneurship Monitor (GEM) Project in Santiago, Chile, with 35 young scholars from 28 countries and six continents. Albert W. Niemi, Jr. dean of the Cox School, has been invited by the Associated Press to serve on the Board of Economists to be surveyed quarterly for forecasts and opinions about economic trends and policies. The survey data will be posted online and will be used to produce interactive charts and graphs. The quarterly surveys will focus on key indicators such as GDP, inflation and unemployment.

coxAchievements

Joonwook Park, assistant professor of marketing, had the co-authored paper “A Bayesian Vector Multidimensional Scaling Procedure for the Analysis of Ordered Preference Data,” accepted for publication by the Journal of the American Statistical Association. His co-authored paper, “Deriving Joint Space Positioning Maps from Consumer Preference Ratings,” was accepted for publication by Marketing Letters. Mina Pizzini, assistant professor of accounting, published a sole-authored study in the January issue of The Accounting Review titled “GroupBased Compensation in Professional Service Firms: An Examination of Medical Group Practices.” She was invited to speak at the Management Accounting Section Doctoral Colloquium, where she gave a presentation titled “An Industry Specific Approach to Management Accounting Research: Healthcare.” Priyali Rajagopal, assistant professor of marketing, had her paper “I Imagine, I Like: The False Experience Effect” presented at the annual conference for the Society for Consumer Psychology. Ulrike Schultze, associate ITOM professor, gave a Ph.D. seminar on “Qualitative Research Methods in Information Systems” at the University of Frankfurt. Her paper, “Dialogic Construction of Identity in Virtual Reality,” has been accepted for presentation at the 2010 Academy of Management Annual Meeting, in Montreal. At this conference, she will also be a panelist on a symposium titled “Entangled Reality: Sociomateriality and Virtual Worlds.”

Marion Sobol, ITOM professor, was elected vice president at large of the National Decision Sciences Institute for 2010-2012. Sobol’s coauthored article “Relation of CIO Background, IT Infrastructure and Economic Performance” was published in Information and Management. Her co-authored article titled “Common Knowledge in Information System Development Projects” was published in the International Journal of Project Management. “Warranty Policy Impact on Net Revenues due to Optional Purchases,” by Sobol and Bezalel Gavish will be published in the International Journal on Information Technology and Decision Making. Greg Sommers, clinical professor of accounting and director of the Master of Science in Accounting program, had the coauthored paper titled “Do Competitive Advantages Lead to Higher Future Rates of Return?” accepted for presentation at the 2010 research conference on Forecasting Firm and Industry Fundamentals organized by The Center for Accounting Research and Education at the University of Notre Dame. Jacquelyn Thomas, associate professor of marketing, participated in a Thought Leadership Conference at Texas A&M University’s Mays School of Business. The topic of the conference was “Innovations in Retailing.” The outcome of the conference will be papers published in the Journal of Retailing in 2011. Gordon Walker, chair of the strategy and entrepreneurship department and David B. Miller Professor of Business, was appointed to the Executive Committee of Alico, Inc. (NASDAQ).

Bud Weinstein, adjunct professor and associate director of the Maguire Energy Institute, participated in a round table discussion on “The Global Financial Crisis: Regional Implications and Responses” as part of the 49th Annual Meeting of the Western Regional Science Association held in Sedona, Arizona. In February, he spoke at the National Press Club in Washington pursuant to release of a Maguire Energy Institute study on the potential negative impacts of proposed EPA rules on the U.S. cement industry. This year, Weinstein has given more than 20 presentations on energy and the economy throughout the DFW area. His paper, “The Moving Media Industry as a Catalyst for Technological Change and Economic Development,” was published in The Geography of Innovation and Entrepreneurship. Kumar Venkataraman, Fabacher Endowed Professor of Alternative Asset Management, presented his co-authored research “Performance of Institutional Trading Desks: An Analysis of Persistence in Trading Costs” at the prestigious Utah Winter Finance Conference and American Finance Association Conference. His co-authored research examining equity market liquidity and institutional trading during the financial crisis of 2007–09 has been presented at the Commodity Futures Trading Commission, the Securities and Exchange Commission, CREATES Symposium on Market Microstructure, the Mid-Atlantic Research Conference, and at the NYSE – Euronext and Université Paris-Dauphine Workshop on Financial Market Quality.

Summer 2010

coxin the news

COX

Quotables

Following are recent samples of Cox faculty quoted in the news.

varieties of toilet paper, paper towels, or even basic foodstuffs. So stores that have house brands love that because they generally make more money on their house brands than they do on proprietary brands.” The New York Times (2/17/2010)

The Wall Street Journal (1/5/2010)

“Cold Blast Spreads Shivers” Bruce Bullock, director of the Maguire Energy Institute, commented on the natural gas industry benefiting from the arctic blast that hit the South. “Traders tend to watch weekly inventory reports closely, and draws on inventory lead to dramatic price moves,” said Bullock. “I suspect if we see another week of this, you’ll see prices jump another five percent.” The New York Times (2/12/2010)

“Toyota’s Wrecked Image Needs the Right Bodywork” Dan Howard, marketing professor, commented on the Toyota recall and how the company’s reaction could impact the brand. “I don’t think in the long run the amount of time it took to respond to the crisis is going to hurt them,” said Howard. “The question is how they respond to it and what sort of deals they will give customers to get them back.” KXAS-TV Ch. 5 (NBC) (2/16/2010)

“Grocery Store Wars” Bud Weinstein, associate director of the Maguire Energy Institute commented on some brand names being cut from grocery and drugstore shelves. “I’m really not surprised at all,” Weinstein said. “They’re really pushing house brands, particularly on items that we might consider a commodity, and the reality is in the current recession nobody really cares what kind of toilet paper they’re using. People don’t want to have to choose between 15 or 20 different www.cox.smu.edu

“An Order of Prosperity, To Go” W. Michael Cox, director of the O’Neil Center for Global Markets and Freedom, discussed American prosperity in terms of exports of goods and services. “Exports of American services have jumped by 84 percent since 2000, while the growth rate among goods was 66 percent. America trails both China and Germany in sales of goods abroad, but ranks number one in global services by a wide margin. And while trade deficits in goods have been enormous — $840 billion in 2008 — the country runs a large and growing surplus in services: we exported $144 billion more in services than we imported, dwarfing the surpluses of $75 billion in 2000 and $58 billion in 1992,” Cox said. “Equally important, Commerce Department data show that the United States is a top-notch competitor in many of the high-value-added services that support well-paying jobs.”

The Dallas Morning News (3/2/2010)

“SMU’s Niemi on the Economy” Albert W. Niemi, Jr., dean of the Cox School, discussed the economy and reasons why things seemed so good for so long. “There’s never been anything like it in the history of this great economy, and we may never see anything like it again,” Niemi said, citing several causes for the economic performance between 1982 and 2007 such as technology, growth in global markets, significant growth in the U.S. market, business friendly policies and the rise in consumer debt. “It was a perfect storm for economic growth. It was a money party and everyone came,” he said. “Everyone got in over their heads.” KRLD 1080 AM (3/2/2010)

“CEO Spotlight” Dean Niemi commented on the economic recovery. “This is going to be a sluggish recovery. We did have a very strong fourth quarter in 2009 and real growth was just revised up to 5.9 percent,” Niemi said. “But I think that is really an aberration. It was 2.8 percent in the third quarter, and I think that’s a better benchmark for what we can look for in 2010.”

C-SPAN (2/23/2010)

San Antonio Express-News (3/18/2010)

“U.S. Exports” W. Michael Cox, director of the O’Neil Center for Global Markets and Freedom, responded to President Obama’s commitment to doubling U.S. exports over the next five years. “I’m looking for more free trade and more capital principles applied to how we get rich in this world. Not so much a government push but the way the markets work,” Cox said. “I think our greatest benefit lies in the export of services. America has spent the last 50 to 100 years developing a service economy. We have the world’s best service economy, and what we’ve developed over the last few decades with technology is the ability to export our services. We’re doing quite nicely now.”

“Family Women Like Having Own Firms” Maria Minniti, strategy and entrepreneurship professor, discussed the differences in entrepreneurship between women and men, saying that women are more likely to open business in the service industry whereas men lean towards manufacturing or technology. “The businesses women gravitate toward tend to have low initial investment requirements, and women usually finance their start-up costs with funds from their own savings and what we call the ‘three Fs’ — family, friends and fools,” Minniti said. “Women rely heavily on close-knit networks for funding.”

c o x Fa c u lt y R e s e a r c h

Business Clusters and Government Policy Bobby Lyle Chair in Entrepreneurship Maria Minniti

With employment concerns high from the financial crisis fallout, policies directed toward entrepreneurship are a logical focus. Of great temptation to politicians, can government help create business clusters—technology hubs and centers of business excellence? New research by Maria Minniti and co-authors shows how industrial clusters are formed and under what conditions they endure. Minniti argues that entrepreneurial break-offs—when employees leave a firm and strike out on their own—contribute significantly to clustering. And the relationship between the new firm and the former one is important, in cases contributing to the creation of the cluster. Minniti explains that “this [type] of outsourcing happens all over the world.” The authors use game theory to show under what conditions a break-off is desirable for an employee and whether they should locate nearby the incumbent firm. The famous clusters of Silicon Valley and Route 128 in Massachusetts have

firms populating those regions because of benefits like labor supply, specialized inputs and knowledge exchange. Even in this Internet age, spillovers of tacit or “experiential” Silicon Valley knowledge, which is difficult to access and mainly available through face-to-face interactions, remain always desirable. localized. Minniti says concentrating Government subsidies aimed at in an area “allows for networking, and increasing manufacturing and diffusing particularly suits engineering and the innovations were found to be useless in sciences since information-sharing is promoting business clustering, particularly important for breakthroughs and progress.” for large markets. In many situations, the location decisions Clustering can have unintended of entrepreneurial break-offs explain the consequences, and policies often fail. initial stage (birth) of clusters. But once “There have to be incentives for firms to formed, their later development and stay and be sustainable beyond the tax expansion have different characteristics. advantages,” Minniti offers. “Creating the One of the most common goals of right environment is difficult. You can’t entrepreneurial policy, promoting industrial program entrepreneurship.” clusters, is one of the most difficult to “Employees’ Break-offs and the Birth realize. Minniti says we need to better of Industrial Clusters,” by Maria Minniti, understand how clusters form and not In Hyeock Lee and Moren Lévesque, is mistakenly believe that their formation is under review.

Business Complexity: Aligning Strategy for Growth Marketing Professor Glenn Voss Marketing Professor and Chair of Arts Administration Zannie Voss

Businesses and their leaders are perpetually involved in the process of aligning their strategic emphases to stay competitive or even survive. “I think we need to work harder and harder in developing models that more accurately capture the complexity of the world today,” says Glenn Voss. New research by Glenn Voss and Zannie Voss dives deep into the complex choices faced by managers, given their competition, firm size and resources. The problem of managing complexity goes well beyond managing products or markets. Glenn Voss states, “To accomplish that, really large companies use a variety of ‘complexity-reducing strategies,’ which include outsourcing key activities or acquiring emerging technologies or markets.” Using complex strategies, large firms in highly competitive markets can offer diverse

product lines. One line stays close to the company’s current strengths and also serves as the cash cow for one or more uncertain, experimental product lines. Small businesses lack the necessary resources to implement complex strategies. Voss notes, “Due to their conflicting organizational learning processes and outcomes, it is difficult for small firms to accommodate these differing learning styles and goal orientations.” As a result, small firms’ revenues decrease when they attempt to implement complex strategies. Highly competitive markets are more receptive to strategies emphasizing the exploration of new products and markets, and less competitive markets are more receptive to strategies emphasizing exploitation of existing products and markets. But large firms are confronted with the

“innovator’s dilemma.” Large incumbent firms could be effective innovators, but they are financially invested and committed to current products and technologies. This limits their willingness to pursue disruptive exploration. The authors reaffirm to managers of large firms in all industries that inertia in product exploration can prove fatal to financial performance. Previous research by the authors showed in a theater industry sample that focusing too much on ongoing customers can have a negative impact on financial performance. The paper “An Empirical Investigation of Exploration and Exploitation in Product and Market Domains” is being reviewed.

Parsing the Financial Crisis: First Evidence

Fabacher Endowed Professor of Alternative Asset Management Kumar Venkataraman

The trading difficulties for institutional investors and liquidity effects during the 2007—2008 period of the financial crisis served as a laboratory for Finance Professor Kumar Venkataraman and colleagues. This first documented evidence of what occurred in the markets focuses on the large institutional investors like mutual funds and pension funds, comprising about 70 percent of the market. The U.S. has experienced a lost decade in market quality. Because of the crisis, liquidity—the ease with which an investor can trade into and out of a stock—has suffered. Venkataraman says, “We looked at the cost of executing large block trades in 2008, and the cost increased significantly. In other words, liquidity froze up, dried up, and institutional investors had to pay a big mark up.” The research shows that because liquidity dried up during the crisis, the average

institution paid two to three times that of pre-crisis times to get trades executed. “For an average investor in mutual funds, who is saving for retirement, these trading costs are similar to brokerage commissions,” notes Venkataraman. “These costs matter because they are large and will impact the wealth available at retirement.” Investors unknowingly took a double hit. Not only did investors take a hit from declining stock values but also their portfolios were knocked from the higher costs of trading. In a market decline, institutions are more likely to experience abnormal selling pressure. So when risk aversion sets in during a crisis, more selling occurs and less buying. In the crisis study period, small cap stocks were harder to trade and experienced greater declines relative to large cap stocks. Specifically, large cap stocks experienced an 8 percent increase in selling activity, while

small cap stocks’ selling activity dropped by over 40 percent during the height of the financial crisis. In other words, there was a “flight-to-quality” effect and large cap stocks served the role of an insurance policy when things got bad. Leading up to the crisis, financial institutions increasingly financed their asset holdings with short-term maturity instruments, exposing them to funding shocks when they couldn’t roll them over. The crisis in the funding market spilled over to the equity market when institutions sold equities to raise cash. “Market crashes and institutional trading: Evidence from U.S. equities during the financial crisis of 2007—08,” by Kumar Venkataraman, Amber Anand, Paul Irvine and Andy Puckett, is under review.

Fundamentals Drive ‘Mysteries’ of the Oil Market Cary M. Maguire Chair in Oil and Gas Management James Smith

Unlike the stock market, which moves according to incident, expectations, confidence and manias, oil markets move on the fundamentals of the real asset. In his research, Finance Professor James Smith shows that the oil price spikes of summer 2008 will not necessarily be the trend in the future. Based on supply and demand factors, Smith reveals the logical causes behind the much-debated high trajectory of oil prices and how the cartel OPEC had a lot to do with it. His research, “World Oil: Market or Mayhem?,” published in August’s Journal of Economic Perspectives, offers a message of what’s to come based on history and fundamentals. Smith writes that a unique combination of economic circumstances surrounds oil markets, including: • extremely high price volatility; • the cartel OPEC’s major role and longevity; • the size and scope of the oil industry and its links to economic growth; • doubts of oil’s sustainability; • its CO2 emissions placing oil into the www.cox.smu.edu

climate change debate; plus, • a host of geopolitical issues, given oil’s uneven distribution around the globe. Relative to the high prices experienced during the summer of 2008, OPEC ranks at the top of the contributors list, alongside a series of supply shocks in the run-up to July 2008. Consumers have suffered from OPEC’s failure as well as its success: failure to manage installed capacity has increased price volatility, while success in restricting capacity growth has driven up the average price level. OPEC accounted for only 10 percent of the petroleum industry’s upstream capital investment during the past decade, although it produced nearly half of global output. By holding back, OPEC has effectively allowed secular growth in demand to absorb and eliminate its excess capacity, ceding market share to non-OPEC producers in the process.

Demand growth from the likes of China, India and others, with a reduction to oil supply from higher production costs, can partly explain a substantial rise in oil prices after about 2004. Smith also points to short-run issues. Seemingly small shocks exert large effects in oil markets, as seen in the spring of 2008 with the dramatic spike in oil prices. So, surging demand and falling supply reveal the most likely source of the rise, not the traders or speculators targeted by regulators. “Relative to the size of the world oil market, hedge funds and even the ‘super-major’ oil companies are small fry,” Smith states. Regarding the high-end forecasts tossed about by various analysts and executives, Smith says, “Look at the demand curve. There’s a big focus on supply and the depletion story, but demand is sensitive to price.”

Summer 2010

SMU Cox is influencing the way the world does business, one student at a time.

The Demand For Global Leadership By Mark Stuertz

www.cox.smu.edu

Today, a global mindset holds the key to business survival and success. Thriving in the rigors of a rapidly evolving global marketplace requires business leaders to understand the economic, social, political and cultural forces impacting the way business is conducted in different parts of the world.

“Don’t just think globally,” says W. Michael Cox, director of the O’Neil Center for Global Markets and Freedom at SMU’s Cox School of Business. “Think and act globally. That’s where many of the best profit and business opportunities will be coming from.” How critical is a global perspective? Consider the following: • The buying power of China, with a population of 1.4 billion, has been growing by an annual average of more than 9 percent for a decade. • India and its 1.1 billion citizens are moving forward nearly as fast with growth rates of 7 percent. • Add in the rest of the world, and 21 out of 22 customers for U.S. products and services are overseas. These numbers, Cox contends, point to the limits of traditional business strategies that focus on the U.S. market, with its 300 million people and potential growth rates of 3 percent. He believes more American companies can profit in this rapidly transitioning global environment—if they show imagination and creativity, and seize the opportunities that are out there. “Many of our business leaders don’t have an appreciation for how much the world has changed and opened up,” Cox says. “Modern technologies and the Internet have changed the global business model.” The successful global leader must also have ample supplies of emotional intelligence and cultural awareness to effectively motivate and manage employees over the global terrain. To address that need, Dean Albert W. Niemi, Jr., recalibrated the Cox MBA program more than 10 years ago to prepare graduates for global commerce. At the time, most MBA programs “did global” with a predictable similarity: a steady flow of coursework exploring the global marketplace. Because future business leaders need the perspective earned from a full-immersion experience in the global arena to view its machinations in real time, Niemi launched the SMU Cox Global Leadership Program.

Sponsored by American Airlines, the yearlong program for full-time Cox MBA students affords participants a rich opportunity to network across borders. Prior to the international excursion, students visit several companies’ U.S. operations so they are able to compare and contrast businesses, governmental policies and cultures when they go abroad. Upon return, the program concludes with an intensive symposium with each MBA group making an in-depth presentation about their experience and observations of their chosen region of travel and experience.

How SMU Cox MBA programs rank As the global programs propelled the Cox School’s international reputation over the years, the rankings have followed suit. SMU Cox recently earned top slots in rankings assembled by some of the most prestigious business publications in the world. All three Cox MBA programs (Full-time, Executive and Professional) are ranked in the top 20 by leading business publications, such as Bloomberg BusinessWeek, The Wall Street Journal and U.S. News & World Report.

Linda Kao, Vice Dean Nguyen Ngoc Dien, Dean Nguyen Van Luan, Dean Niemi. In February, SMU Cox was honored to host Nguyen Van Luan, dean, and Nguyen Ngoc Dien, vice dean, of the Vietnam National University School of Economics and Law, for a daylong visit to discuss ideas on how to work together in the future.

Tapping global power

Since the inaugural trip in May 2000, the Global Leadership Program (GLP) has offered full-time MBA students an intensive, hands-on business experience in a choice of international locales: Asia, Latin America or Europe. “Today, we are going to China. Tomorrow, India. The landscape changes; the pace is fast,” says Linda Kao (BBA ’78), who, as assistant dean of global operations at SMU Cox, has directed the program since its inception. “We follow the trends in the regions of the world, put our heart and soul into it, and take tremendous pride. Corporations around the world respond accordingly. They are impressed with the quality of our students, and always have us back.” The trip changes annually, but each time, students interact with executives and officials from some of the most dynamic companies and organizations in the world, experiencing a firsthand grasp of how economic, social and cultural forces can lead to international business success. They also meet with government officials and administrators to study how current and shifting political forces impact markets. “The program successfully exposes students to a broad diversity of business environments,” Kao says. For full-time MBA candidates, the trip takes place in May of their first year. This year, four groups of students followed four separate itineraries: Saigon, Hong Kong, Shanghai; London, Budapest, Zurich; Bangalore, New Delhi, Mumbai; and Tokyo, Seoul, Shanghai. “When they come back,” says Kao, “they apply their knowledge to their second year. It is group experiential learning.” SMU Cox, she believes, is on the forefront of global business education. Other

universities conduct trips abroad; very few, she says, make them a requirement with a grade. Also, SMU does not outsource the management of these excursions. “We have direct relationships with international corporations at the highest level. A company hired to do this cannot knock on the doors of leading international CEOs,” she says, adding that she is often up at 2 a.m. waiting for e-mails from Asia. “There are a lot of moving pieces, but we are constantly learning, keeping fresh. What could be more interesting?” The program focuses on a who’s who of influential global business leadership, including British Telecom, Cadbury Schweppes, HSBC, Bharti-Airtel, Citi, Samsung, Toshiba, Bao Steel, Petrobras, BMW and many others. What sets the SMU Cox program apart from other international business programs? “In all of the global programs we organize, we are very hands-on,” Kao says. “We know exactly where we will visit, who we will meet and what we will be discussing.” In addition to the full-time MBA Global Leadership Program, Cox offers other MBA students the opportunity to glean international business experience. In the Cox Professional MBA Program, students can choose from seven international trips to China, Europe, South America and India. These one-week trips combine classroom instruction with visits to leading corporations. The Executive MBAs also have an outstanding global program that includes two study trips abroad. Recent trips include Chile, China, Cuba and Mexico City.

Mining rich networks

The impact of the Cox School’s international business experience continues

to influence students long after graduation. Claudia Arias (EMBA ’08), global consumer group management associate at Citibank, says the program not only provided a panoramic view of the global economy, it furnished tools that she regularly utilizes to maximize her career success. During an EMBA trip to Mexico, Arias met with several directors from the board governing Banamex, Mexico’s second largest bank. “I utilized the trip to link to a network and gained great insight,” she says. “Now, I’m actually in contact with some of the senior people in Banamex.” Such connections offer dividends throughout a career. Will Huckin (MBA ’06), founder of the environmental private equity firm NeoVerde, says his GLP experiences in Hong Kong, China and Japan in 2005 dramatically broadened and deepened his perception of the opportunities that exist worldwide. “It very much opened my eyes to doing business in a global arena, above and beyond the state of Texas and the United States,” he says. “Before, I don’t think I would have looked or assumed there were opportunities out there that I could take advantage of.” Huckin says one of the companies he visited through the program became one of the largest suppliers for TX4 Marketing, the company he launched shortly after graduating from SMU Cox. He sold TX4 in 2008 before starting NeoVerde, which currently has more than $17 million in assets. “Dean Niemi established this program because he believed that global immersion was an essential element to success in the international business environment,” Kao says. “Students need to see how other parts of the world live, work and do business. And the only way to do that is to go.”

CEOs Share Global Perspectives What does it really take to succeed in today’s competitive global business climate? That was the question posed to a number of influential executives and thought leaders last fall during a conference sponsored by the Federal Reserve Bank of Dallas and The O’Neil Center for Global Markets and Freedom at SMU Cox. Speakers included Richard Fisher, president and CEO of the Federal Reserve Bank of Dallas, Richard K. Templeton, chairman, president and CEO of Texas Instruments, Thomas J. Falk, CEO of Kimberly-Clark, William J. O’Neil, publisher of Investor’s Business Daily, Robert Lawson, co-author of the Economic Freedom of the World annual report, and W. Michael Cox, director of the O’Neil Center. A panel of global talent experts also offered valuable in-depth perspectives on resourcing challenges and opportunities abroad. The O’Neil Center offers education and training for today’s forward-looking individuals and businesses who recognize the importance of globalization. To learn more about the Center’s objectives, upcoming calendar of events or to view videos featuring W. Michael Cox and other conference speakers, please visit www.oneilcenter.com. Please also find the Center’s 2009 annual report, titled “The Ascension of DFW” on the O’Neil Center website. www.cox.smu.edu

photograph by holt haynsworth

The Changing Face of smu

Diversity enriches learning in and out of the classroom By Pamela G. Kripke Summer 2010

Freshman Max Ooi arrived at SMU’s Cox School of Business last summer after turning down numerous world-class universities … and after flying 33 hours alone. “You’re a student, you’re traveling halfway around the globe, you have no family here, you don’t know anyone, and you are starting up a new life,” he says. “But I knew SMU Cox was the proper school for me.” Ooi (BBA ’13), left Kuala Lumpur, Malaysia, with a spirit that will serve him well in international business. “I am an entrepreneurial person. If there is an opportunity in the States, or in Europe, or anywhere else, I’ll just go where it takes me.” He is among the changing face of SMU’s diversity. Today, about 9 percent of SMU’s students come from

other countries, and in the university at large, there are over 900 international students, from more than 90 nations. Among the countries representing the largest enrollments are India, China, Mexico, Saudi Arabia, Republic of South Korea, Guatemala, Taiwan, Canada, Iran and the United Kingdom. In addition, the 2009– 2010 undergraduate population consisted of 25 percent minority and non-resident students. Not only is the school becoming more internationally and ethnically diverse, but of those American students in SMU’s freshman class, only 45 percent are from Texas, with most students hailing from California, Florida, Missouri, Georgia and Illinois. And throughout the student body, all 50 states are represented.

Max Ooi (BBA ’13) represents the changing diversity of SMU. The entrepreneurially driven student journeyed from Kuala Lumpur, Malaysia, in search of a world-class business education at Cox.

From the military to the boardroom: SMU Cox helps veterans transition into a business career. See the feature story on page 26.

www.cox.smu.edu

BBA students: Jackie Negrete, Illya Zavizion, Sharon Chan, Michael Noble and Scott Burns

“There has been a shift in the out-of-state growth,” says Stephanie Dupaul, director of BBA admissions at SMU Cox. “We work hard, nationally, to build the SMU Cox brand. We travel, we go to high schools, and we are spreading the word about the business school. And, being in Dallas is a huge help. It’s a good place to be right now.” The University, as part of its global initiative in and out of the classroom, makes an effort to attract candidates from overseas, including China, Honduras, Bolivia, Switzerland, Germany, Korea and more. The result is a student body comprised of worldly perspective, broad economic and social experience and ethnic diversity. “When you get these students in the classroom, a student from California next

to a student from Connecticut, sitting next to Max, from Malaysia, and he is talking about how the car industry works there, you enhance everything they are learning,” Dupaul says. “Because they were raised in different environments, and have operated in different settings, it works.” For Kristy Webster (BBA ’12, BA ’12), who arrived at SMU from tiny Brown Deer, Wisconsin, the class discussion that emerges from varied student backgrounds is invaluable. “Sometimes things can get a little heated, which is beneficial to everybody, and the professors certainly play off that energy.” The University has long believed that a global view of business is critical. Outside of the classroom dynamic, students in the full-time MBA program participate in the

Global Leadership Program, a two-weeklong immersion on foreign soil, preceded by a half year of preparation work. For 11 years, students have traveled to Asia, India, Europe and South America to meet with corporate and industrial leaders selected for their relevance on the economic stage at the time. Professional and Executive MBA students have opportunities to learn from the international business community, as well. During his time at SMU Cox, Rick Calero (EMBA ’08) spent 10 days in Asia and a week in Mexico. A defense attaché with the U.S. Army from 1983 until 1997, Calero, now 44, came to SMU with years of service in such countries as Chile, Pakistan, Nicaragua, Afghanistan and Germany. “Without the international focus, the Summer 2010

“When you get these kids in the classroom, a student from California next to a student from Connecticut, sitting next to Max, from Malaysia, and he is talking about how the car industry works there, you enhance everything they are learning.” program would not have been as appealing or as rewarding to me,” he says. “You cannot function without a global perspective in any multinational company.” Now, as sales and marketing director for Citibank N.A., Calero examines cross-border operations, creating products and services for customers working in both the U.S. and Mexico. “The SMU Cox program effectively measures the level of globalization that we talk about. Everyone talks about companies being global. To separate international studies from business is impossible right now. But the Executive MBA program actually puts a value to it.” Because SMU Cox strives to develop international connections directly, the school establishes links and creates opportunities that students tap throughout their careers. With alumni association chapters in 22 countries, SMU Cox offers graduates the resources they need to nurture future business relationships. “The three key words that we always use when talking about national, international and

local alumni groups, are we want them to be informed, involved and invested in the school,” says Kevin Knox, assistant dean of external relations and executive director of the alumni association at SMU Cox. The international business community agrees with this approach. Thus, The Economist ranks Cox fourth in the U.S. and 13th in the world for the international breadth of its alumni network and among the top 20 MBA schools in the world for networking potential and alumni effectiveness. On campus, however, the tone is decidedly non-local, or regional, even, according to growing statistics and student impressions. “My roommate is Mexican,” says Ooi, “and I have friends from Hong Kong, Africa and, of course, America.” Most important, he says, the curriculum and the opportunities will ensure that he is prepared. “I knew that SMU Cox had really great connections, with CEOs, with corporations, with studies abroad. And, even as freshmen, we have access to that interaction.”

National Hispanic Corporate Council selects SMU Cox for Corporate Executive Development Program Though Hispanic employees in the U.S. progress more quickly to mid-management than any other ethnic group, research shows they are disproportionately under-represented in the boardroom. “They get stuck,” says Frank Lloyd, associate dean of executive education at SMU Cox. “We need to fuel the pipeline of Hispanic talent and equip them to assume the highest levels of corporate responsibility in the very best companies.” This is the challenge the Washington-based National Hispanic Corporate Council posed when looking for a university partner for its Corporate Executive Development Program, due to launch this September. “They had a list of 15 schools. After their first visit to the SMU Cox School of Business, they said, ‘We don’t need to look anywhere else,’ ” Lloyd says. “They were delighted with the extent and the nature of our interaction with the Hispanic community.” The NHCC is an organization of about 50 Fortune 500 corporations that helps its members access the growing Hispanic market and develop leadership capabilities among the Hispanic workforce. The program will consist of academic instruction at SMU Cox, surrounded by support mechanisms such as mentoring and coaching designed to turn high potential employees into high performing executives. “The learning will focus on successful navigation of organizational and Latino cultures all the way to the boardroom,” Lloyd says. A joint SMU-NHCC committee will select a nationwide pilot class of 20 students. www.cox.smu.edu

In 2009, Hispanic Business ranked SMU Cox No. 20 in the U.S. as one of the top business schools for Hispanic students. The ranking was compiled through analysis of the school’s enrollment, faculty, student services, retention rate and reputation.

For Veterans, the Cox School Aids Transition from Military Service to Meaningful Business Career

Katherine Sharp, BBA ’11 Undergraduate: SMU Cox Military Rank: Sergeant (E-5), United States Marine Corps Years Served: 5 Career Path: Sharp is majoring in accounting and economics, with a minor in Chinese. Served in: California and Texas

Brian Jackson, MBA ’10

Undergraduate: University of Texas Military Rank: Lieutenant, United States Navy Years Served: 4 ½ Career Path: Jackson is seeking employment in management consulting upon graduation. He currently serves in the Individual Ready Reserve. Served in: Australia, Belize, Columbia, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Hong Kong, Nicaragua, Panama, Peru, Singapore, South Korea, Suriname and Thailand

In appreciation for the sacrifices veterans make in serving our nation, the Cox School strives to be a top program for those who decide to pursue a career in business. In 2009, SMU Cox was identified as a top 20 program for offering the best value for veterans using the new GI Bill by Military MBA, an education network for military officers and non-commissioned officers interested in applying their MBA graduate degrees for career advancement. The analysis and resulting best-value list is the first resource of its kind for prospective military students. This honor was in part due to the Cox School’s participation in the Yellow Ribbon Program, a provision of the Post 9-11 Veterans Educational Assistance Act of 2008. To participate in the Yellow Ribbon Program, SMU Cox partners with the Veterans Administration to fund tuition expenses above a predetermined level for veterans. The Cox School contributes up to 50 percent of those expenses, and the VA will match the same amount. The implementation of the Post 9-11 GI Bill and Yellow Ribbon Act has made private schools and top MBA programs a more financially viable option for former military personnel. In fact, veteran enrollment in the Cox MBA program is at an all-time high in the class of 2011. A group of veterans from this class joined together to establish Veterans in Business (VIB), a student association committed to assisting veterans in the transition from the military into a successful career in the private sector. “VIB will serve as a tool for helping veterans become more integrated into the business community by learning from mentors who specifically want to assist a veterans’ organization,” said Troy Vaughn, president of VIB. “It will strengthen networking and job search opportunities for Cox veterans, uniting them in their pursuit of a career outside the military.” The Cox School thanks its current students and alumni who have provided military service. A few are highlighted here along with a map of the locations in which they served.

Chuck Armstrong, EMBA ’95 Undergraduate: East Texas State University Military Rank: Lieutenant Colonel, United States Marine Corps Years Served: 25 Career Path: Armstrong leads his own privately held company. He manages several private investment portfolios, occasionally investing in startup or earlystage ventures.

Served in: Azores, Belgium, Canada, Egypt, El Salvador, France, Germany, Greece, Guam, Guatemala, Honduras, Hong Kong, Iraq, Israel, Italy, Japan, Jordan, Kuwait, Lebanon, Mexico, Netherlands, Okinawa, Philippine Islands, Puerto Rico, Sardinia, Saudi Arabia, Spain, Syria, Taiwan, Thailand, Turkey, United Kingdom and Vietnam

We want to hear your story! If you are a Cox Alumni 26

Summer 2010

Trevor Roe, MBA ’11

Undergraduate: West Point Military Rank: Captain, United States Army Years Served: 5 Career Path: Upon graduation, Roe would like to work for a major defense contractor in the Dallas area. He currently serves as an infantry company commander in the Texas Army National Guard.

Chris Matthews, MBA ’10

Undergraduate: West Point Military Rank: Captain, United States Army Years Served: 5 Career Path: Mathews is seeking a marketing job in the technology industry upon graduation. Served in: Texas and Iraq

Served in: Georgia, Louisiana, Afghanistan and Iraq

Troy Vaughn, MBA ’11

Undergraduate: West Point Military Rank: Captain, U.S. Army Infantry Years Served: 5 ½ Career Path: Vaughn currently serves as company commander of a Texas National Guard Infantry company. Upon graduation, Vaughn hopes to enter a project management/operations role. Served in: Colorado, Georgia and Iraq

James Schneider, PMBA ’10

Undergraduate: U.S. Air Force Academy Military Rank: Captain, United States Air Force Years Served: 8 Career Path: Schneider works for Bank of America in the foreclosure department as a risk operations team manager. He currently serves in the Individual Ready Reserve.

Ross Gloyna, MBA ’11

Undergraduate: Wake Forest University Military Rank: Captain, United States Army Special Operations Years Served: 5 Career Path: Upon graduation, Gloyna would like to work in marketing as a brand or operations manager. Served in: Iraq and South Korea

Served in: Kuwait, Oman, Pakistan and Qatar

Imran Khan, PMBA ’11

Undergraduate: University of Texas, Arlington Military Rank: First Lieutenant, United States Army Years Served: 13 Career Path: Khan currently works as a systems engineer at Fidelity Investments. After graduation, he hopes to further his career in IT consulting. Served in: California, Oklahoma, Texas and Virginia

Jonathan Goza, PMBA ’09

Undergraduate: West Point Military Rank: Captain, United States Army Years Served: 5 Career Path: Today, Goza works in his family business making cabinets for the medical industry. Served in: Georgia, Kentucky, North Carolina, Texas and Iraq

Dan MacElroy, EMBA ’11

Undergraduate: West Point Military Rank: Captain, United States Army Years Served: 7 Career Path: MacElroy is an environmental representative for Hunt Oil Company. He looks forward to growing within Hunt and using what he learns at SMU Cox to contribute to the success of the company. Served in: Delaware, Kansas, Kentucky, New York, Texas, Afghanistan, Germany and Iraq

and would like to be featured in future issues of CoxToday, please contact Ahugg@cox.smu.edu. www.cox.smu.edu

The Life of An Endowment:

A Gift that Keeps On Giving A

s we amble down the hallowed halls of the Fincher Building, we graciously acknowledge the

bronze plaques on the wall depicting the names and purposes of our generous endowment donors. We appreciate how fortunate we are to have this extraordinary support, yet many still do not easily understand how endowments are tools for academic growth. What do they really do? What is the academic and human payout? In fact, endowments are the academic gifts that keep on giving, and the very threads by which many of our graduates are able to fulfill their dreams and find success in and out of school. Endowments enable professors to conduct research and impart their deep knowledge to open-minded students eager to absorb, learn, share and implement their knowledge in the marketplace. And in turn, hopefully, teach others. In this and future issues of CoxToday, we’ll attempt to bring these gifts to life by sharing the visions of our donors, the gifted professors and the students, who are ultimately the direct beneficiaries. Perhaps you, too, will be moved to make a lasting impression on your school via such a bequest or, at least, appreciate the lifespan and everlasting impact these thoughtful gifts provide.

The David B. Miller Endowed Professor in Business In 2006, David B. Miller (BBA ’72, MBA ’73) and his wife Carolyn decided to fund a professorship at Cox. Throughout his life David has been exceptionally involved with SMU. An outstanding student and athlete, he was a three-year varsity basketball letterman while he earned his BBA and MBA degrees at Cox. David went on to become co-founder and partner of EnCap Investments L.P., an investment management firm based in Texas. As an alumnus, he has been instrumental in assisting SMU athletics, particularly the basketball program, and has shown unwavering support for the Cox School. Miller’s vision for the endowment was to support a flexible professorship in the business school. “The flexible terms of the Millers’ gift allowed us to assign an endowed professorship to the academic area in which it could have the greatest impact,” explained Dean Niemi. Enter Gordon Walker, Ph.D., the David B. Miller Professor of Business and chair of the department of Strategy and Entrepreneurship. Walker’s 12-page curriculum vitae exemplifies the very best in academic pedigree, consisting of a B.A. from Yale, and an MBA and Ph.D. from Wharton. Equally remarkable is his experience outside of the classroom. After Yale, Walker joined “a hard working battalion” in the Marines and emerged with a Bronze Star with a Combat V. Following his military duty in Vietnam, he taught at Wharton, the Sloan School at MIT, Yale and, ultimately, SMU Cox. Today, he is a consultant, author, researcher, public company board member and a highly prolific publisher of working papers and journal articles. Cox is honored to have Walker walking our hallways and educating our students about global strategy. How does Miller’s endowment help Walker? “The endowment enables me to expand my research, and provides some financial flexibility to focus on larger projects as well as increase the pace of my article writing. I can be relaxed, more free form and ask, ‘Am I advancing? Am I pushing the edge

Summer 2010

Matt Day (MBA ’10) and Professor Gordon Walker

David B. Miller (BBA ’72, MBA ’73)

of a particular problem?’” Walker has taught Global Strategy since 1981. Years of honing the course enable him to anticipate 90 percent of the questions after reviewing a given case perhaps only once. He inculcates understanding in his students by expounding a set of internally consistent frameworks repeatedly over time. The endowment affords travel as well. “I’m able to attend more international conferences in Europe and Asia, which enhances the international presence of the school,” he explains. Walker then brings global content back to the classroom. That international context resonated with one student in particular. Matt Day is a full-time MBA student graduating in May who has accepted a position with one of the most prestigious consulting firms in

www.cox.smu.edu

the world, McKinsey & Co. After taking the professor’s strategy classes, Day continued his study under Walker’s watchful eye while visiting China in the Cox Global Leadership Program. Both men share a deep appreciation for China. Walker’s appreciation stems from a multinational business viewpoint while Day’s has a more personal origin. Day first learned the language as a result of missionary work spent in Los Angeles’ Mandarin-speaking neighborhoods. He then went to work for Dura, setting up supply chain relationships in Shanghai. He met his wife there and now has two beautiful daughters. In 2008, Day came to SMU Cox and took Walker’s strategy class. “My big thing coming out of the class was the ability to take a big picture and look at the value chain, look at the

value the company is offering in their products and see the value proposition.” Day also explains that he was successful in the legendary McKinsey & Co. interview process in large part because of his ability to successfully navigate and synthesize the case questions—a skill he honed in Walker’s strategy classes. The impact of the Millers’ endowment, as utilized by Professor Walker and instilled in students like Matt Day, didn’t just stop there. With his experience and education, Day, in turn, helped many other Cox students prepare for their own grueling interviews with the world’s leading consulting firms by leading case interview workshops offered by the Cox Consulting Club. With great thanks to supporters like Carolyn and David Miller and deep appreciation for professors like Gordon Walker, Cox is proud to ultimately bestow the benefits of an endowment upon its students. So the next time you’re in Fincher, take another look around. There are many more stories behind those bronze inscriptions. After all, these endowments are the gifts that truly keep on giving—long after the bronze plaques are hung and celebrated upon the walls of the Cox School.

coxdevelopment

Ideas in Giving: How to Give to Cox and Pass More to Your Heirs

Did you know that you can give to your favorite charity while still preserving assets for your family or loved ones? Here’s an option that you may not be aware of: A nongrantor Charitable Lead Trust allows you to pay a stream of income to charity for a term and pass the remainder to non-charitable beneficiaries. Often used by individuals to pass assets to their family at a discount, it is another way to support the Cox School of Business while, at the same time, increasing your gift to your own heirs. What is a Charitable Lead Trust? A Charitable Lead Trust is an irrevocable trust funded by cash or other assets such as stocks, bonds, minerals, real estate or other marketable assets. The trust makes periodic payments to SMU for a term of years or for the life of a named individual. At the end of the term, the remaining assets pass to the beneficiaries you designate. There are two basic types of Charitable Lead Trusts, a Charitable Lead Annuity Trust that pays a fixed dollar amount to charity each year and a Charitable Lead Unitrust that pays a fixed percentage of the value of the trust assets to charity each year.

How does a Charitable Lead Trust preserve your estate? Non-grantor Charitable Lead Trusts have no income tax advantages; however, if established during the donor’s lifetime, the donor will receive a gift tax deduction. If established at death, the donor’s estate receives an estate tax deduction.* In both cases, the deduction is equal to the net present value of the income interest payable to the charity. The effect is to significantly reduce the gift or estate tax liability on the assets that pass to your heirs. The best time to use this vehicle is during a low interest rate environment. Today, the rate used by the IRS is historically low. This rate is sometimes referred to as the “hurdle rate” because any investment gains beyond the set rate will generally pass tax free to the donor’s heirs. Here is one example. Susan recently sold land she inherited from her mother. She would like the $1 million proceeds to ultimately pass to her children, but would also like to fund a scholarship for the Cox School of Business. After consulting with her advisors, Susan

established a Charitable Lead Trust in March 2010. The IRS hurdle rate was 3 percent. Susan established a 7 percent non-grantor charitable lead annuity trust ($70,000 per year), with an eight-year charitable term. She was not required to pay a gift tax because the value of the gift was below her available gift tax exemption. Assuming the trust earns income of 3 percent each year and appreciates in value 5 percent each year, then during the charitable term the Cox School of Business will receive $70,000 a year, for a total of $560,000. This was more than enough to fund a BBA scholarship in her family’s name. At the end of the term, Susan’s children will receive $1,106,336, free of estate taxes. In addition, because the initial value of the assets were within Susan’s lifetime gift tax exemption, she did not pay a gift tax either. Imagine taking $1 million, making a $560,000 gift to the Cox School of Business, paying no gift tax, and passing $1,106,336 to your children, estate tax free. That’s smart planning! How do I get started? The Charitable Lead Trust is just one way to make a planned gift in support of SMU Cox students, faculty and facilities. We always recommend that you consult your tax advisors. We also encourage you to contact the Cox School Office of Development at 214.768.3074. See the following chart, “Ways to Give,” for more information on charitable giving. *Note, on the date this article was written, the estate and gift tax laws were uncertain. Currently, there is no estate tax in 2010, but the estate tax exemption amount is scheduled to be $1 million in 2011. It is anticipated that these laws will be modified in 2010.

Summer 2010

W AY S O F G I V I N G Suggested Assets

Method of Effecting Gift

Disposition of Income

Taxation of Income

Outright Gift

Cash, stocks, bonds, real estate, tangible personal property

Donor transfers assets to SMU

Not applicable

Tax deduction based on value of gift Avoidance of tax on capital gains

Bequest

Cash, stocks, bonds, real estate, tangible personal property

Donor provides in will to transfer assets to SMU

Not applicable

Distribution of estate as intended by donor Avoidance of estate taxes

Charitable Gift Annuity

Cash, stocks

Donor and SMU enter into contract agreement; donor transfers assets to SMU

Fixed income paid to recipient for lifetime. Rate based on recipient’s age

Portion of income subject to income tax, and portion is tax-free, based on actuarial data. Portion of capital gains may be realized

Secure income Partially tax-free Income tax deduction

Charitable Remainder Annuity Trust

Cash, stocks, bonds

Donor and trustee enter into written trust agreement; donor transfers assets to trustee

Fixed income (based on initial value of trust assets) paid to donor and/or other beneficiary(ies) for life or for a period not to exceed 20 years

Beneficiary taxed on income received (may include ordinary income or capital gains)

Income tax deduction based on value of assets transferred to trustee Avoidance of tax on capital gains Avoidance of estate tax

Charitable Remainder Unitrust

Cash, stocks, bonds, real estate

Donor and trustee enter into written trust agreement; donor transfers assets to trustee

Variable income (based on Beneficiary taxed on income annual value of trust assets) received (may include ordinary paid to donor and/or income or capital gains) beneficiary(ies) for life or for a period not to exceed 20 years

Income tax deduction based on value of assets transferred to trustee Avoidance of tax on capital gains Avoidance of estate tax

Charitable Lead Cash, stocks, bonds, Trust revenue-producing real estate

Donor and trustee enter into written agreement; donor transfers assets to trustee

Income paid to SMU for term of trust

Possible taxation of income to donor

Trust income possibly not taxed to donor Possible estate and gift tax savings

Life Insurance

Donor names SMU beneficiary; OR donor transfers paid-up policy to SMU; OR SMU owns policy and donor pays premium amount to SMU

Not applicable

Estate tax deduction; OR Paid-up policy qualifies for tax deduction based upon value of policy; OR Annual premium payment qualifies for income tax deduction

Life insurance policy

Dean Niemi, Cary Maguire, Ray Hunt, Linda Pitts Custard, President R. Gerald Turner, Bobby B. Lyle

Benefit to Donor

Inaugural L. Frank Pitts Energy Leadership Award Given to Ray Hunt In April, SMU Cox and the Maguire Energy Institute presented the inaugural L. Frank Pitts Energy Leadership Award to Ray Hunt. Named in honor of the late oil and gas professional, the award is given to an individual who exemplifies a spirit of ethical leadership and innovative impact on the energy industry. The L. Frank Pitts Energy Leadership Award luncheon and event raised more than $200,000. Proceeds will support student programs and other educational activities of the SMU Cox Maguire Energy Institute as well as business school scholarships for undergraduate and graduate students with an interest in careers in the energy industry. “I am honored that the Maguire Energy Institute and SMU Cox created this award to celebrate my father’s legacy,” said Linda Pitts Custard. “He would have been delighted that Ray was selected as the recipient as he greatly admired and respected him.”

www.cox.smu.edu

coxAlumni ProfileS

International Alumni Profiles

Where Are They Now? Alumni of the Cox Global Leadership Program Span the Globe

Taruna Jain, MBA ’01 Hometown – Houston, TX Undergraduate – SMU Cox Current Position – Principal, Mercer, Houston Taruna Jain’s experience with the GLP inspired her to pursue an international opportunity with Mercer, a global HR consulting firm, where she has worked for the past eight years. Jain recently relocated to Houston from Mercer’s London office, where she worked on client projects across Europe and Africa and with colleagues from across the globe. She credits the GLP with providing the foundational training that helped her succeed both personally and professionally in her career. “My GLP experience gave me considerable insight into what it would be like to live and work in a foreign country,” said Jain. “You will learn more about the global business environment during those two weeks than you’ll ever learn from a text book, whether it’s from the company tours, the conversations you have with company representatives, or the cultural immersion you experience during your trip.”

Andreas Pizzinini, MBA ’01

Hometown – Munich, Germany Undergraduate - Technische Universität München Current position – Senior Vice President, Citigroup, New York City Andreas Pizzinini traveled to Asia with the GLP, where he learned there are subtle cultural differences that can either break business relationships or help take them to the next level. This insight serves him well today, as Pizzinini leads an internal global advisory group for Citigroup. He helps businesses define and implement their global resources and location strategies. Pizzinini has almost daily interactions with his customers in Latin America, Europe, Asia and North America. “From visiting companies on the GLP, I learned how important it is to know your specific customers. This real world experience went far beyond what I could have learned through case studies in the classroom,” said Pizzinini.

Galya Nikolova-Moutafov, MBA ’01

Hometown – Dryanovo, Bulgaria Undergraduate – Sofia University, Bulgaria Current position – Vice President, Treasury Department, Wells Fargo & Co., San Francisco When choosing an MBA, Galya NikolovaMoutafov did not want to be one of the few students with a “funny accent,” so the Cox School’s international presence, global connections and GLP were important deciding factors. “I am still in touch with my German, Brazilian, Indian, Rumanian, and of course, American friends I met in the program. The exposure and the connections to these people are some of my most valuable ‘acquisitions’ from Cox,” she said. From the GLP and her time at SMU Cox, Nikolova-Moutafov gained an appreciation for the differences among people, and the idea that one should leverage and appreciate diverse backgrounds in order to attain success in the global marketplace.

Summer 2010

Since its inception in 1999, the Cox Global Leadership Program (GLP) has taken students out of their comfort zone and across the globe to experience international business first hand. The GLP is often a life-changing experience, and for many, the beginning of international careers. Whether alumni end up in Dallas or in China, the GLP provides a level of international and cultural exposure that translates into a concrete understanding of how to conduct business in an increasingly global world.

Aakash Moondhra, MBA 2003 Hometown – Indore, India Undergraduate – Sri Ram College of Commerce, Delhi Current position – Director, Business Development, Nokia, India

William Huckin, MBA 2006

Javier Silvera, MBA 2007

For Aakash Moondhra, global connectivity was one of the major factors in his decision to attend the Cox School. The GLP gave Moondhra on-the-job practical training that took him out of his comfort zone, and challenged his thoughts. He was able to build an international network, understand the way business is conducted globally and gain an appreciation of cultural differences and various ways of communication. Today, Moondhra works for Nokia India, a multinational corporation that operates in 70 countries and employs more than 100,000 people across the world. “From my learning in the Cox program, I can appreciate and respect individuals from diverse backgrounds. The program has provided me with an arsenal to lead and interact in teams that are very diverse.”

Will Huckin started a promotional products and marketing firm, (TX4), upon graduation from the Cox School in 2006, thanks to a series of relationships he had established overseas. Most of TX4’s products originate in mainland China and ship from Hong Kong. They have several direct factory relationships–one of whom Huckin visited while at Cox–that produce many of the company’s large volume orders. “Gaining their trust and generating a large scale of business with Chinese factories allowed me to make vital connections with other factories worldwide,” he said. “I would not have been able to get a foot in the door in such a short time frame without my GLP connections.”

Javier Silvera remembers one particular moment of the GLP vividly. It was in Shanghai, just before his group was scheduled to return to Dallas. “We were walking around the Bund Area when I thought to myself, two weeks just hasn’t been enough. I would return to China,” he said. “After a 12-week exchange program with China Europe International Business School (CEIBS) in Shanghai, I still felt it wasn’t enough. I now wanted to work in China. Two years later, I find myself living and working in Hong Kong. It all started with my GLP trip at SMU.” Today, Silvera is with the regional business planning and analysis office for Citibank’s Asia operations. “My international experiences, both with the GLP and subsequent study abroad programs, gave me the knowledge and confidence to pursue the international assignment I have today.”

www.cox.smu.edu

Hometown – Dallas, TX Undergraduate – University of Texas at Austin Current position – Co-Founder and manager of NeoVerde, LLC, Dallas

Hometown – Panama City, Panama Undergraduate – Georgia Institute of Technology Current position – Vice President, Citibank, Hong Kong

coxexecutive board

Edwin L. Cox School of Business

Executive Board Chairman of the Board Mr. John C. Tolleson

Mr. David E. Alexander Vice Chair and Southwest Area Managing Partner Ernst & Young LLP Mr. Gerald B. Alley President Con-Real, Inc. Mr. Victor D. Almeida President and CEO Interceramic Mr. F. Thaddeus Arroyo Chief Information Officer AT&T Ms. Marilyn Augur Chairman Marilyn Augur Enterprises Mr. Norman P. Bagwell Chairman and CEO Bank of Texas, N.A. Mr. C. Fred Ball, Jr. Senior Chairman of the Board Bank of Texas, N.A. Mr. George L. Ball Chairman Sanders Morris Harris Group, Inc. Mr. J. Gabriel Barbier-Mueller Chairman and CEO Harwood International Mr. Raymond A. Basye, Jr. President BenchMark Facilities Group, Inc. Mr. James F. Berry President Lockheed Martin Missiles and Fire Control Mr. Albert C. Black, Jr. President and CEO On Target Supplies & Logistics, Ltd. Ms. Jan Hart Black Mr. William A. Blase, Jr. Senior Executive Vice President- Human Resources AT&T Inc. Mr. Tony Boghetich Owner and CEO Omar B. Milligan Enterprises Mr. Pat S. Bolin President & Owner Eagle Oil & Gas Company Ms. Julie Ann Brice Former Owner & Founder I Can’t Believe It’s Yogurt, Inc. Mr. Tucker S. Bridwell President Mansfeldt Investment Corporation Mr. Bradley Brookshire Chairman Brookshire Grocery Company Mr. Peter D. Brundage Managing Director Goldman Sachs Mr. Donald J. Carty Mr. Felix Chen President and CEO PAJ Inc. Mr. Greg T. Clifton, ChFC, CFP President Clifton Capital Partners, Inc. Mr. Richard H. Collins Chairman and CEO Richard Collins Enterprises Mr. Gus Comiskey Senior Vice President & Managing Director Clark Consulting

Mr. Dan W. Cook, III Senior Advisor MHT Partners Mr. William R. Cooper Chairman Paragon Group Mr. Edwin L. Cox Chairman and CEO Edwin L. Cox Company Mr. Gary T. Crum President CFP Foundation Mr. William A. Custard President and CEO Dallas Production, Inc. Mr. Terry R. Dallas Executive Vice President Wells Fargo U.S. Corporate Banking Mr. Richard L. Davis CEO DAVACO Mr. Derek E. Dewan Chairman MPS Group, Inc. Mr. Frank M. Dunlevy Vice Chairman, Managing Director Cowen & Company, LLC Mr. Juan Elek Co-Chairman Elek, Moreno Valle y Asociados Mr. Bryant R. Fisher Senior Vice President Retired Federated Martin L. Flanagan President and CEO INVESCO Mr. James F. Geiger CEO Cbeyond Mr. William W. George Area Chairman Arthur J. Gallagher Risk Management Services, Inc. Dr. James R. Gibbs Chairman, President and CEO Frontier Oil Corporation Mr. Norman Green Founder and Former Owner Dallas Stars Mr. Charles L. Gummer President and CEO Comerica Bank-Texas Ms. Linda W. Hart Vice Chairman and CEO Hart Group, Inc. Mr. Brad K. Heppner Chairman and CEO Heritage Highland Finance & Management Services Mr. Ken C. Hicks President & Chief Merchandising Officer J. C. Penney Company, Inc. Mr. James M. Hoak Chairman James M. Hoak & Company Mr. Denny Holman Chairman of the Board Folsom Properties, Inc. Mr. Thomas W. Horton Executive Vice President Finance & Planning and CFO AMR Corporation Mr. Kevin C. Howe Managing Partner Mercury Ventures, Ltd. Mr. Clark K. Hunt Chairman Kansas City Chiefs

Mr. Douglas E. Hutt Regional President Compass Bank Mr. Thomas W. Jasper Chief Executive Officer Primus Financial Products, LLC Mr. David K. Kao Managing Partner Advantage Resources Group Mr. James W. Keyes Chairman and CEO Blockbuster, Inc. Mr. Lawrence Lacerte President Exponent Technologies Mr. Paul B. Loyd, Jr. Mr. D. Scott Luttrell CEO LCM Group Dr. Bobby B. Lyle Chairman, President and CEO Lyco Holdings Incorporated Mr. James H. MacNaughton MacNaughton & Associates Mr. Cary M. Maguire President Maguire Oil Company Ms. Ruth Ann Marshall Former President of the Americas MasterCard International Ms. Ti Adelaide Martin President Commander’s Palace Mr. Michael F. McGehee CEO Wilmac Resources, L.L.C. Mr. Michael A. Merriman President and CEO Financial Holding Corporation Mr. David B. Miller Managing Director EnCap Investments, L.L.C. Mr. Tyree B. Miller President and CEO COMM Group, Inc. Mr. Kenneth R. Morris Vice President & Chief Technology Strategist Workday Mr. Roger Nanney Vice Chairman Deloitte LLP Mr. Erle A. Nye Chairman Emeritus TXU Corp. Mr. P. Scott Ozanus Southwest Area Managing Partner KPMG LLP Ms. Patricia Patterson President Patterson Investments Dr. Sheron Patterson Senior Pastor Highland Hills United Methodist Church Mr. Randal L. Perkins Private Investor Private Advisory Group Mr. John C. Phelan Managing Principal and Co-Founder MSD Capital, L.P. Mr. Charles Pistor Retired Vice Chair Southern Methodist University Ms. Melissa M. Reiff President The Container Store Mr. Rick Richards CEO Reserve Oil Technologies, LLC Mr. Ronald H. Ridlehuber Chairman First Choice Companies

Mr. Ronald A. Rittenmeyer Former Chairman, President and CEO (retired) EDS Mr. Robert D. Rogers Chairman of the Board Texas Industries, Inc. Mr. Philip J. Romano President Romano Concepts Mr. Robert J. Schlegel Chairman Pavestone Company Mr. Jeffrey R. Schmid Chairman and CEO Mutual of Omaha Bank Mr. Mark Schortman Chairman of the Board Coca-Cola Bottlers’ Sales and Services Company, LLC Mr. John M. Scott III President and CEO Rosewood Hotels & Resorts Mr. Carl Sewell Chairman Sewell Automotive Companies Ms. Cece Smith Mr. Michael G. Smith Private Investments Mr. Richard K. Templeton President, CEO and Director Texas Instruments Incorporated Mr. Guy R. Thomas Retired Vice President U.S. Sales Operations Coca-Cola Enterprises Mr. John C. Tolleson Chairman and CEO Tolleson Wealth Management Mr. Scott B. Walker President Downstream Capital, LLC Mr. Garry Weber Chairman of the Board Weber Financial, Inc. Ms. Julia Wellborn Texas Regional Managing Director Comerica Mr. William M. Wheless, III President Wheless Properties Mr. Robert A. Wilson Executive Vice President Kemmons-Wilson Companies Mr. Charles J. Wyly, Jr. Ms. Trea C. Yip CEO TY Commercial Group, Inc.

Summer 2010

c o x C o n ta c t U s

Important Numbers for

Cox Alumni & Friends Academic Department Chairs Accounting: Jody Magliolo..................................................................................214.768.1678 Finance: Bill Maxwell...........................................................................................214.768.4150 Information Technology and Operations Management: John Semple............214.768.2546 Management and Organizations: Don VandeWalle..........................................214.768.1239 Marketing: Raj Sethuraman................................................................................214.768.3403 Real Estate/Insurance/Business Law: Bill Brueggeman.......................................214.768.3182 Strategy and Entrepreneurship: Gordon Walker...............................................214.768.2191 Alumni and External Relations Assistant Dean of External Relations and Executive Director of the Cox Alumni Association: Kevin Knox..............................................................214.768.8338 BBA PROGRAM Associate Dean: Gary Moskowitz........................................................................214.768.1575 BUSINESS INFORMATION CENTER Director: Sandy Miller..........................................................................................214.768.4113 CENTERS AND INSTITUTES Caruth Institute for Entrepreneurship................................................................214.768.3689 EnCap & LCM Group Alternative Asset Management Center...........................214.768.1228 JCPenney Center for Retail Excellence................................................................214.768.3943 KPMG Institute for Corporate Governance........................................................214.768.3053 Maguire Energy Institute.....................................................................................214.768.3692 William J. O’Neil Center for Global Markets and Freedom...............................214.768.3251 CERTIFICATE PROGRAMS Business Intelligence Graduate Certificate Program..........................................214.768.1246 Entrepreneurship Certificate Program................................................................214.768.3689 Graduate Finance Certificate Program...............................................................214.768.4155 Graduate Marketing Certificate Program..........................................................214.768.2679 DEAN’S OFFICE Dean: Albert W. Niemi, Jr....................................................................................214.768.3012 DEVELOPMENT AND MAJOR GIFTS Director: Robin Maness........................................................................................214.768.3890 EXECUTIVE EDUCATION Associate Dean: Frank Lloyd................................................................................214.768.3191 GRADUATE PROGRAMS Associate Dean: Marci Armstrong.......................................................................214.768.4486 MARKETING AND COMMUNICATIONS Assistant Dean: Lynda Oliver...............................................................................214.768.3678 MBA BUSINESS LEADERSHIP CENTER/BBA LEADERSHIP INSTITUTE Director: Paula (Hill) Strasser...............................................................................214.768.3104 MBA CAREER MANAGEMENT CENTER...................................................................214.768.6227 MBA GLOBAL PROGRAMS Assistant Dean: Linda Kao...................................................................................214.768.4754 SOUTHWESTERN GRADUATE SCHOOL OF BANKING President and CEO: Scott MacDonald.................................................................214.768.2995 SPEAKER SERIES Bank of Texas Business Leaders Spotlight Series................................................214.768.3030 Collins Economic Forum.......................................................................................214.768.4266 Frank L. Pitts Oil and Gas Lecture Series.............................................................214.768.3948 Southwest Venture Forum...................................................................................214.768.3689

www.cox.smu.edu

c o x C a l e n d a r o f e v e n ts

Cox Events

August 10-August 21

Graduate Program Orientations Full-Time International Orientation: August 10 Finance Workshop: August 12–14 EMBA Orientation: August 13–15 PMBA and MSM Orientation: August 14-16 Full-Time MBA Orientation: August 16-22 MSA Orientation: August 21

August 23:

First Day of Classes for Cox Undergraduate Programs

August 24:

First Day of Classes for Cox Graduate Students

September 5:

First SMU football game SMU at Texas Tech (ESPN)

September 11:

First home football game SMU vs. UAB, 7 p.m. Ford Stadium*

September 18:

1 2

SMU vs. Washington State, 2:30 p.m. Ford Stadium*

September 24:

Family Weekend SMU vs. TCU, 7 p.m. Ford Stadium* (ESPN)

October 2: SMU at Rice

October 9:

SMU vs. Tulsa, 7 p.m. Ford Stadium*

October 16: SMU at Navy

October 23: 3

Homecoming SMU vs. Houston, 2:30 p.m. Ford Stadium*

October 30: SMU at Tulane

1-SMU Head Football Coach June Jones was in Atlanta for a Mustang Club event. Shown here: Lisa Harris, Mark Galyardt (MBA ’88), Coach Jones, Suzie Galyardt and Gavin Harris (BA ’95). 2-The Business Leaders Spotlight, sponsored by Bank of Texas, hosted Carl Sewell (BBA ’66), Chairman of the SMU Board of Trustees and Chairman of Sewell Automotive Companies, as their keynote speaker. Shown here at the reception prior to the engagement, Tom Abbott (BBA ’63), Fred Ball (BSE ’66, MBA ’68), Carl Sewell, Norm Bagwell (BBA ’85), Rocky Gray and Mike Meredith. 3-The Management Briefing Series, sponsored by Ernst & Young, featured Keith Morrow, CIO, Blockbuster, as their keynote speaker. Pictured here: Keith Morrow (Cox Associate Board mentor) taking questions from the audience in the Ernst & Young Gallery.

November 6: SMU at UTEP

November 20:

SMU vs. Marshall, 2 p.m. Ford Stadium*

November 26: SMU at East Carolina

*Dean’s Tailgate “On the Boulevard” begins two hours prior to kick-off at every home game

For information about upcoming events go to www.smucoxalumni.com. Summer 2010

coxAlumni Board

Cox Alumni Association SMU-TCU tailgate in Fort Worth, hosted and sponsored by: Jeff Dyer (MBA ’03); Greg Clifton (EMBA ’05); Evan Radler (BBA ’05, PMBA ’11)

How to Get Involved • Maintain a current home, business and e-mail address in the Cox alumni database. When you move or change jobs, let us know. (Renee Kauffman, rkauffman@cox. smu.edu, 214.768.3390) • Attend Cox events including executive speakers, social engagements, tailgates, educational forums, panels, meetings and awards programs. Ask others to join you. • Help recruit prospective students for Cox undergraduate, graduate programs, executive certificate and non-degree programs. Identify high school students beginning the college application process. Let us know about fellow employees wanting to take part in lifelong learning. Cox has something for everyone! • Encourage your company to hire Cox students and alumni for internships, project work and full-time job opportunities. • Make a contribution to the Cox Annual Fund and capital campaigns. • Become a program, event or table sponsor at executive speaker luncheons, “tailgate” events or the “Golf for Cox” tournament each spring. (Kevin Knox, kknox@cox. smu.edu, 214.768.8338) • Sponsor and host receptions for Cox alumni, prospective students and parents in your area. • Purchase SMU Cox logo merchandise from our online collection. NOT AVAILABLE IN STORES. www. smucoxalumni.com • Cox Class Notes: Give an update on youself, your family, your career— published in the CoxToday, fall issue. Visit www.coxalums.com and click “class notes.” • Contact Cox Alumni Association Board members and volunteers in your area.

Remember: Without you, there is no network! www.cox.smu.edu

Board of Directors Name

Degree/Year

City, State

E-mail

James Alvetro Clark Bacon Trey Chappell Paul Collins Richard de Garis Paul Divis Victoria Eavenson Gonzalo Escamez Sada Mark Galyardt Dan Goe John Goodrum Brooke Green Paul Henderson Jono Hiemenz Kevin Hight Mark Holoman Gary Horton A. J. Hu Christina Hussong Taruna Jain Chris Jones Pam Hoyerman Kemper Keith Knox Chris Loy Ashley Wilson McClellan Lauren McDonald Frank McGrew Mike Miers Aakash Moondhra Phil Moran Rhonda Murphy Fabio Okamoto Carlton O’Neal Patrick Panko Bruce Parkerson Kyle Perkins Dan Porth Evan Radler Chris Reilly Wayne Richard David Rouse Allen Shank Javier Silvera Cristine Struble Matthew Struble Arun Subramanian Laura Till David Visinsky Catherine Walts Mark Warner David Wesson Chris Wilson Kylie Wood Jiang Wu Liz Youngblood

MBA ‘99 BBA ’04 BBA ’00 MBA ’03 MBA ’06 EMBA ’99 MBA ’99 MBA ’90 MBA ’88 MBA ’99 BBA ’05 MBA ’99 PMBA ’94 BBA ’09 MBA ’99 MBA ’03 EMBA ’99 MBA ’01 BBA ‘06 MBA ’01 PMBA ’00 BBA ’79 MBA ’98 PMBA ’92 BBA ’04 MBA ’82 BBA ’90 MBA ’98 MBA ‘03 MBA ’87 MBA ’98 MBA ’95 PMBA ’87, JD ’91 PMBA ’01 BBA ’79, JD ’82 BBA ’09 BBA ’69, MBA ’71 BBA ’05 PMBA ’01 BBA ’80 PMBA ’95 BBA ‘02, MSA ‘03 MBA ‘07 BBA ’96 PMBA ’00 MBA ’01 BBA ’82 BBA ’98 BBA ’99 MBA ’95 EMBA ’04 BBA ’03 BBA ’06 MBA ‘99 EMBA ’05

Sydney, Australia Los Angeles, CA Phoenix, AZ New Jersey Miami, FL Washington, DC Livermore, CA Santiago, Mexico Atlanta, GA Denver, CO Washington, DC San Francisco, CA Sunnyvale, CA St. Louis, MO Austin, TX Charlotte, NC Dallas, TX Shanghai, China Los Angeles, CA Houston, TX Houston, TX Boston, MA Dallas, TX Dallas, TX Dallas, TX Little Rock, AR Nashville, TN Tulsa, OK New Delhi, India Houston, TX St. Louis, MO Sao Paolo, Brazil La Jolla, CA Kansas City, MO New Orleans, LA La Jolla, CA Scottsdale, AZ Fort Worth, TX San Antonio, TX Dallas, TX Dallas, TX Dallas, TX Hong Kong, China Chicago, IL Chicago, IL Bangalore, India Albany, NY Memphis, TN Atlanta, GA Austin, TX Bryan, TX Oklahoma City, OK Kansas City, MO Beijing, China Plano, TX

james@getfundamental.com clark.bacon@ubs.com tchappell@att.net pcollins@bbmetro.com rdegaris@alum.cox.smu.edu paul.divis@blenheimcs.com veavenson@alum.cox.smu.edu gescamez@prodigy.net.mx mark.galyardt@xioss.com daniel_e_goe@yahoo.com john.goodrum@gmail.com brooke@presidiopay.com phenderson@successfactors.com jono.hiemenz@gmail.com kevin.hight@dimensional.com mholoman@yahoo.com ghorton1223@hotmail.com aj.hu@jljgroup.com cyhussong@gmail.com taruna.jain@mercer.com chris.jones@connecticut.swagelok.com pamelakemper@gmail.com knox.keith@gmail.com christopher.loy@twcable.com ashley.mcclellan@hcahealthcare.com lemcdonald@aol.com fmcgrew@morganjoseph.com mmiers@oneok.com aakash.moondhra@gmail.com pmoran@pacadvisory.com rhonda_murphy@alum.cox.smu.edu fabio.okamoto@riobravo.com.br coneal@proximetry.com ppanko@dfamilk.com bparkerson@pmpllp.com kyle@westviewfg.com drporth@navalissystems.com eradler@tug-hill.com chris.reilly@reillyassociatesllc.com wrichard@icglobal.net david.rouse@yum.com ashank@lockelord.com javier.o.silvera@citi.com cristine.struble@sbcglobal.net mstruble@lawsonproducts.com psarun@hotmail.com ltill@finsvcs.com dvisinsky@hotmail.com Catherine.walts@gapac.com mwarner@utimco.org david.wesson@perf.com cwilson@gobaker.com kylie.wood@hotmail.com jiang.wu@power.alstom.com elizayou@baylorhealth.edu

coxconnections

1-August 18: IBM’s General Manager for

Computer Services Industry, Estere Ferre, was a keynote speaker at the orientation program for new MBA students. Pictured here: Estere Ferre visiting with students at the reception. Bob Beaudine (BBA ’77), author of The Power of Who, also serves on the Cox Associate Board and spoke to the group on August 20.

2-August 24: During the new BBA Cox

Scholars’ new student orientation, Dean Niemi spoke to the scholars in Georges Auditorium. 3-September 3: A part of SMU’s Second Century Campaign, SMU and Cox faculty and staff kicked off their campaign to show their outstanding support for the University. Shown here prior to event: Robin Maness, Cox director of development; Allison Brubaker (PMBA ’08), Cox assistant director of development; Kevin Knox, assistant dean of external relations, executive director of Cox Alumni Association; and Meagan McCracken, development coordinator. 4-September 5: “Dean’s Tailgate-On the

Boulevard” prior to SMU’s football game with Stephen F. Austin University. During

football season, the Cox School welcomed alumni, friends, students, parents, faculty/ staff, corporate sponsors and community partners. Special thanks to all sponsors during the season: TGIF’s/Carlson Worldwide, Clifton Capital, Joe’s Crab Shack/ Ignite Restaurants, 7-Eleven, Central Market/ HEB, The Bottomless Pitt, Xioss-Data Storage Solution, Affairs to Remember, Andrews Distributing, Coca-Cola and Hotel Lumen. 5-September 11: Linda Kao (BBA ’78),

assistant dean of global programs, welcomed Hong Kong Commissioner for Economic and Trade Affairs of USA, Donald Tong, to campus for a breakfast engagement with students. Pictured here: Linda Kao introducing Commissioner Tong.

6-September 14: Dean Niemi, along with

Kevin Knox, Robin Maness and Stephanie Dupaul, director of BBA admissions, sponsored a Cox School alumni and prospective student reception in Milwaukee, WI. Shown here: Dean Niemi, Robin Maness, Christina Nahabedian Hanson (MBA ’99) and Mark Hanson.

7-September 15: Dean Niemi and others

from Cox attended a SMU alumni reception at the Chicago Art Institute. Pictured here:

Cristine Struble (BBA ’96) and Cox Alumni Association Board of Directors member Carol Rediehs (BBA ’79) and J.D. Salazar. 8-September 22: Dr. Bobby Lyle, chairman of

the Associate Board, welcomes mentors and students at the Meet & Greet event held on the SMU-in-Plano campus.

9-September 25: Atlanta young alumnus,

Raymond Singletary (BBA ’06), sponsored a golf outing at the Piedmont Driving Club. Shown here: Tim Moore, SMU development director; Raymond Singletary; Roger Quillen, SMU parent, and Kevin Knox.

10-September 29: The Hay Group and the Cox School welcomed former Air Force pilot and Dallas Cowboys star, Chad Hennings, as their keynote speaker. Hennings is president of Hennings Management Corporation and works with Stream Realty’s Tenant representation business. Pictured here: Chad Henning; John Larrere and Bob Dill with the Hay Group; Kim Sosolik, Cox Executive Education. 11-September 29: The BBA Scholars reception in the Collins Center offered students an opportunity to meet and visit with Edwin L. Cox. Shown here: Blake Palmer, Taylor Carney, Sagar Manda and Ed Cox. Summer 2010

12-September 30: Dean Niemi, along with the SMU Development Office, sponsored an alumni and prospective student reception in Little Rock, AR. Pictured here: Dean Niemi, Laura Doramus and Mark Doramus (MSRE ’82).

16-October 16: W. Michael Cox, director of the O’Neil Center for Global Markets and Freedom, hosted the conference, “What Do Businesses Need to Succeed in Today’s Competitive Global Economy?” Pictured here: W. Michael Cox giving his presentation.

13-October 1: For the 19th year, the Caruth

17-October 21: Cox Alumni Association and student reception at Sevy’s. Pictured here: Dan Schilens (EMBA ’09), Linda Beheler (MBA ’99), Chris Wester (BBA ’99, MBA ’10) and Jose Hernandez (PMBA ’10).

Institute at the Cox School and all the program sponsors planned and executed Dallas 100. This corporate awards program recognizes the top 100 fastest-growing, privately held companies in the Dallas area. Shown here at the reception for all the Dallas 100 CEOs and presidents: Jim Cali (PMBA ’00), president, Southern Botanical, and Jason Craven, also with Southern Botanical.

14-October 2: The Cox School’s Women in Business Organization, sponsored by Dean Niemi, held its fall luncheon. Members welcomed Cox Executive Board Member, Julia Wellborne,Texas regional managing director for Comerica Bank, as their keynote speaker. 15-October 15: Each year, selected MBA

students from colleges and universities across Texas are awarded scholarships and recognition by The Texas Business Hall of Fame. Shown here at the Houston awards ceremony: Justin Sanderson (MBA ’10), center, receiving his award. www.cox.smu.edu

18-October 23: Expertly organized by Phil Moran (MBA ’87), Cox Alumni Board of Directors, a golf outing was held at Blackhorse Golf Club near Houston. Pictured here: Chris Martinez, Phil Moran and Chris King (BBA ’93). 19-October 24: Hosted by Kristen and Jake Wilson, a SMU vs. Houston football watch party was held at their home in Collierville, TN. Shown here: Kevin Knox, David Felgner (BBA ’91), David Visinski (BBA ’97), Kristen Wilson (in helmet) (BBA ’97), John (BBA ’81) and Melanie Duncan (BBA ’84), Jake Wilson (BA ’98), Trevor Weichmann (BS ’06), Mike Whaley (BA ’06) and Dave Curran (BBA ’81).

20-October 26: Presented jointly by DCEO magazine and the Cox School of Business, the CEO Sentiment Survey awarded the CEO of the Year to Southwest Airlines CEO, Gary Kelly. The survey is researched and produced by Cox professors, Mickey Quiñones and Bob Rasberry. Pictured here: Gary Kelly and former SWA Chairman, Herb Kelleher. 21-October 30: In the spirit of competitiveness and sportsmanship, the first and second year MBA students organized the “Cox Cup” competition. Shown here: the MBA Class of 2011, victors in the flag football game! 22-November 4: The Dallas 100 corporate

awards and recognition program named Ambit Energy as the top, fastest-growing, privately held company in Dallas. Shown here: Jerry White, director of the Caruth Institute for Entrepreneurship, interviewing keynote speaker, Sam Wylie, on the stage at the Meyerson Symphony Center.

23-November 6: The Sales Leadership Forum,

sponsored jointly by Eddie Birchfield, Mark Donolo, the Cox School and Cox Executive Education, hosted Mark Schortman with Coca-Cola Enterprises, as the forum’s keynote presenter.

24-November 6: The MBA Class of 1999

hosted their 10-year reunion during SMU Homecoming Weekend. Pictured here: Kristen Coulter Goe, Stephanie Jones (reunion chair), Maureen Kelley and Brad Kam.

25-November 7: Trent Corcia (MBA ’07) and

his son, Alex, enjoy the “Dean’s Tailgate On the Boulevard” during Homecoming festivities prior to the SMU vs. Rice football game.

26-November 21: Kevin Knox, Pat Panko

(PMBA ’01, Cox Alumni Board of Directors), Mark Galyardt (MBA ’88, Cox Alumni Board of Directors) and Michael Caplan, assistant dean of MBA Student Services, were hosted by Michael Merriman (BBA ’75, Cox Executive Board) at a Kansas City ChiefsPittsburgh Steelers game at Arrowhead Stadium. Shown here: Mark Galyardt; Roger Twibell, sports commentator; Michael Merriman and Bobby Bell, former KC Chiefs star defensive end and member of the Pro Football Hall of Fame. 27-December 1: In Atlanta, Dean Niemi, Kevin

Knox, Stephanie Dupaul, Tim Moore and Laran O’Neill hosted a reception at the Ritz Carlton-Buckhead for Cox alumni, friends, prospective students and parents. Shown

here: Cox alumni as they listen to Dean Niemi’s update on the school.

(BBA ’10); Erika Thomas and Mary Thomas, Cox parent.

28-December 2: The Business Leaders Spotlight, sponsored by Bank of Texas, hosted Kip Tindell, president and CEO of The Container Store, as their keynote speaker. Pictured here: Norm Bagwell (BBA ’85, Cox Executive Board), chairman and CEO of Bank of Texas, Kip Tindell and Dean Niemi.

32-January 10: Dean Niemi, Dana and Seth

29-December 9: Kevin Knox and the Cox Alumni Association hosted a holiday luncheon and gift drop-off with Scotty Landry (EMBA ’03), chief operating officer for the Salvation Army. Shown here: Wil Murphy, Alex Stem (MBA ’01) and Linda Kao (BBA ’78), assistant dean of global programs.

33-January 14: The Frank Pitts Lecture Series

30-December 19: Dean Niemi hosted a

graduation reception after the December commencement at Moody Coliseum. Pictured here: Jason Dagelewicz (PMBA ’09) with his brother, Matt (BS ’09).

31-January 9: Dean Niemi and Randy Perkins (Cox Executive Board) hosted a reception at the Grand Del Mar Resort in San Diego, CA, for Cox alumni and prospective students and parents. Shown here: Kyle Perkins (BBA ’09); Brad Thomas, Cox parent; Ryan Thomas

Hall (MBA ’94) hosted a reception at the Pelican Hill Resort in Newport Beach, CA, for Cox alumni and prospective students. Pictured here: Jim Bryan, associate director of BBA Admissions, Kevin Knox, Robin Maness and Dean Al Niemi. and the Maguire Energy Institute hosted Jim Hackett, chairman and CEO of Anadarko Petroleum, as their keynote speaker. As a part of the event, selected Cox BBA and MBA students are recognized and awarded scholarships made possible by the Pitts Gas and Oil Company. Shown here: Travis Newkumet being congratulated by Bill (BBA ’57) and Linda Custard (EMBA ’99).

34-January 25: Kim and Derek Dewan (SMU

parents, Cox Executive Board) hosted a reception at their home in Jacksonville, FL, for Cox alumni, prospective students and parents. Pictured here: Derek Dewan and Dean Niemi making remarks to those in attendance.

Summer 2010

35-January 26: Dean Niemi hosted a reception for Cox alumni, prospective students, and parents in Coral Gables, FL. Shown here: Isabel delValle (BBA ’89) and Richard de Garis (MBA ’06, Cox Alumni Board of Directors). 36-January 27: Dee Dee and Laddie Merck

(SMU parents) hosted a reception at their home in Palm Beach, FL, for Cox alumni, prospective students and parents. Pictured here: Dean Niemi making remarks to those in attendance.

37-February 2: Cox alumni in Houston

were invited to a luncheon and speaker event featuring Dennis Murphree (BA ’69), Murphree Venture Partners, as the keynote speaker. Shown here: David Loyless (PMBA ’03, SMU Development Office) Jonathan Parker (MBA ’05) and Phil Moran (MBA ’87, Cox Alumni Board of Directors). 38-February 17: The Management Briefing

Series, sponsored by Ernst & Young, hosted Mike Pritchard, VP of Global Security for Hunt Consolidated, as their keynote speaker.

39-February 23: In St. Louis, MO, Dean Niemi,

Kevin Knox and Stephanie Dupaul, director of BBA admissions, gathered at the Saint Louis Club with alumni, friends, campaign

volunteers, prospective students and parents. 40-February 26: On campus, graduation

exercises for the Graduate Marketing Certificate Program (GMCP) were held in Crum Auditorium. Program graduates, their family members and their workmates heard Brad Wilson (MBA ’01), SVP/GM of Marketing & Brand Management for Nutrisystem, as their keynote speaker.

41-March 2: In Memphis, TN, Bob (BBA ’61)

and Susan Wilson (BS ’67) hosted a reception for Cox alumni, friends, prospective students and their parents. Shown here: Bob Wilson, Dave Curran (BBA ’81) and Steve Rhea (BA ’72, MBA ’81).

42-March 3: In Nashville, TN, Kevin Knox,

Stephanie Dupaul and Tim Moore, SMU Campaign director, host a reception for Cox alumni, friends, prospective students and their parents. Pictured here: Jason Tucker (MBA ’01) and Emily Harris (BBA ’02).

43-March 11: In Washington, D.C., Kevin Knox; Marci Armstrong, associate deangraduate programs; Stephanie Dupaul; and John Goodrum ( BBA ’05, Cox Alumni Association) hosted a reception for Cox alumni, friends, prospective students and

parents. Shown here: John Goodrum, Rawson Hart (BA ’06); Ed Rahal with Honeywell International; Laura Goodrum. 44-March 24: The Insurance Council, led by Cox Professor Bob Puelz, hosted its spring meeting in the Ernst & Young Gallery at the Cox School. As keynote speakers, the Council presented Art Kirchoffer, executive director of Risk Management with AT&T; and Raymond Alletto, director of Risk Management, United Rentals. Pictured here: Art Kirchoffer during his remarks. 45-March 25: The George W. Bush Institute, in partnership with the Cox School of Business and the Maguire Energy Institute, held its first conference on the SMU campus. Titled “Natural Gas Nation,” the conference was highlighted by the presence of former President of the United States, George W. Bush. Shown here: former President Bush introducing his friend and college classmate, Daniel Yeargin, Ph.D., chairman, HIS Cambridge Energy Research Associates, Inc.

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