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BGS Corporate Contributors and Afﬁliates 2007

A Message from the BGS President

Letters to the Editor

Business and the Internet

Online Advertising

Business and the Virtual World

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I wanted to take this opportunity to highlight one of our award recipients, David Bussau, Founder of Opportunity International, who has demonstrated a commitment to doing things the right way. As a recipient of the 2007 Medallion for Entrepreneurship, Bussau had to overcome many obstacles growing up. An underprivileged environment did not stop him from building a single soccer stadium hot dog stand into an empire. Twenty years and many successful business ventures later, Bussau retired as a millionaire at the age of 35. Seeing the despair of others, and wanting to help, Bussau’s life took a different turn when Cyclone Tracey destroyed more than 70 percent of the city of Darwin, Australia in 1974. Responding to a call for help, Bussau moved his family and headed up a national (Australian) movement to assist the storm’s victims and arranged a team of builders to help rebuild aboriginal housing.

A MESSAGE FROM THE BGS PRESIDENT

n the fall 2006 issue of the BGS International Exchange, Beta Gamma Sigma’s new initiative – Ethical Business Leadership – was announced and discussed. In the subsequent winter 2006 issue, we included several responses from members in the “Letters to the Editor” section that were quite complimentary about the new initiative. I am very pleased that the Society has struck a positive chord with many of its lifetime members regarding Ethical Business Leadership. Partially as a result of this response, the Beta Gamma Sigma Board of Governors has been considering different ways to promote Ethical Business Leadership and make sure it’s a part of what we stand for as an honor society. Many new ideas have been discussed and considered, and a few are starting to make their way into our programs. Each spring the Society announces the recipients of its international awards – the Medallions for Entrepreneurship and the Business Achievement Awards. For the first time, the nominees were judged not only on their contribution to the world of business and the community around them, but also how they exemplified the ideals of Ethical Business Leadership. This additional consideration resulted in some very qualified individuals – strong business minds who value the notion of leading ethically – being honored as 2007 recipients. The wording added to the nomination forms for each award reads, “The nominee shall have been a model of ethical business leadership in his or her career and have exemplified the highest honor and integrity consistent with the ideals of Beta Gamma Sigma.” 2007 Medallion for Entrepreneurship recipients: • David Bussau, Founder, Opportunity International. Nominated by Loyola Marymount University. • Edwin F. Hale, Sr., Chairman and CEO, First Mariner Bank. Nominated by Towson University. • Howard L. Hawks, Founder, Chairman and CEO, Tenaska, Inc. Nominated by the University of Nebraska at Omaha. • Randal J. Kirk, Founder, Chairman and CEO, New River Pharmaceuticals and Third Security, LLC. Nominated by Radford University.

2007 BGS Business Achievement Award recipients: • James J. Maguire, Founder and Chairman, Philadelphia Consolidated Holding Company. Nominated by Saint Joseph’s University • Gerald W. Schlief, Senior Vice President, ATP Oil and Gas Corporation. Nominated by Stephen F. Austin State University. • Dmitri Stockton, President and CEO, GE Money, Central and Eastern Europe. Nominated by North Carolina A&T State University. 2 BGS INTERNATIONAL EXCHANGE SPRING 2007 WWW.BETAGAMMASIGMA.ORG

John Wholihan, President of Beta Gamma Sigma In 1976, Bussau and his family moved again, this time to Indonesia to help rebuild following an earthquake. While applying traditional development solutions – reestablishing water supplies, repairing bridges and roads, and rebuilding schools – Bussau realized that sustainable development needed more than just infrastructure. His solution was micro enterprise development. Using his own money, Bussau offered unsecured, collateral-free micro-loans to poor entrepreneurs. His first loan went to a struggling Indonesian farmer who used the $50 loan to purchase a sewing machine and start a tailoring business. In 1979, Bussau helped found the organization that is now Opportunity International. Today the company has microfinance programs operating in Africa, Asia, Eastern Europe and Latin America. Mr. Bussau’s story is unique, but all of our award recipients have embraced the ideals of ethical business leadership throughout their careers. You can read detailed bios on each of our Medallion recipients at http://www. betagammasigma.org/medallions07.htm, and each of our Business Achievement Award recipients at http://www.betagammasigma. org/businessachieve07.htm. Who will receive the Society’s next round of international awards in 2008? It’s not too early to start thinking about it. Perhaps you know of someone who fits the criteria, including the emphasis on Ethical Business Leadership. If so, contact the dean at your alma mater, or a local business school in your geographic area. This is a great opportunity to better connect with your school and to assist Beta Gamma Sigma in finding the best individuals for future Medallions for Entrepreneurship and Business Achievement Awards. Thanks very much.

I am pleased that BGS is promoting ethical business leadership. This has been an area of concern for me for many years now. Even our church has failed to teach ethical and moral lessons that are needed for our youth to understand what is expected from them. I have discussed this with our minister several times and have yet to hear a sermon on ethics. Many kids today don’t even know that it is wrong to cheat in school or for adults to take home company supplies. This seems minor compared to company executives robbing the employee retirement fund, but I believe that small ethics violations eventually lead to greater ones. Roland Sneed (BGS 1992, University of Missouri-Kansas City)

I read with great interest your article in the Winter 2006 Exchange issue about the work/life dilemma faced by many. As a working parent, I have done much research on this topic over the past several years. Your article is correct in stating that companies need to make cultural changes to support employees to use work/ life programs already in place. In addition to that, I believe employees need to start taking the lead in proposing work options that will help them better balance their home obligations. Employers will start to respond when more and more employees start asking.

I am encouraged by your focus on work-life balance in the Winter 2006 edition of Exchange. While these issues are not new for employees, especially women, it is refreshing to see them taken seriously in your consideration. With the coming leadership labor shortage it is imperative business leaders address the work-life needs of employees in new ways. Research shows employee performance is higher and turnover is lower when employees are dual-centric, balancing other aspects of their lives with their passion for work. Yet the current prescription for workplace flexibility has failed to improve the situation measurably. Executive-bound employees avoid using flexibility programs for fear they will sidetrack their careers, telecommuters sacrifice needed office face time, and part time roles only impair company competitiveness in a 24 x 7 world. It is time for a new strategy, time to put our best creative thinking into the problem. If our organizations are to remain competitive in a global world we need to cultivate and empower our best and brightest talent. Clinging to our mid-20th century workplace structure, where hours on the job meant more than results, will contribute to the growing labor shortage and the rising cost of talent. Integrating life and work in creative new ways, however, will allow companies to tap new sources of talent and employees to contribute their best to both work and life.

Lori K. Long, Ph.D., SPHR LK Consulting, LLC (BGS 2006, Kent State University) I really enjoyed your article on Striving for Balance in your Winter 2006 issue. I am a chemical engineer with an MBA turned stay-at-home mom. When my son was born in February 2005, my company didn’t offer any type of flexible work options beyond FMLA. After years of schooling and nine years of work, I decided to quit rather than put my son in full-time childcare. It’s a shame because I was a dedicated employee who liked my job. There was an episode of 20/20 or 60 Minutes around the time my son was born that highlighted companies that were accommodating employees (men and women) with flexible work hours, part time assignments, job sharing, etc. in order to keep their top employees. Included was an interview with the dean of Harvard Business School that said that schools needed to stress to companies what new hires (undergraduates and graduates) will expect in the future in order to not lose employees as their family situations change. The culture of companies will be slow to change. While I am out of the process, my husband still struggles with the 24-houra-day demands of his job and his desire to see his children before they go to bed. I hope your article and others like them reach out to upper management and start a change for the better. Anonymous

Kathryn (Kelly) Watson President, Career Partners (BGS 2006, Loyola Marymount University) The article “Striving For A Balance” hit the mark when someone considers why American workers are stressed out. The demand to continuously increase productivity is an outgrowth of Far East competition and that has impacted the American worker negatively. My employer…is a classic example of a very poor employer when it comes to flexible scheduling. Not only do they offer very little in flexible scheduling, what they do offer is often frowned upon by management to the point where most employees are afraid to take advantage of the benefit for fear of retribution. Anonymous

What do you think about this issue of the International Exchange? Send your letters and comments to the editor:

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“Sooner or later the Internet will become profitable. It’s an old story played before by canals, railroads and automobiles.”

Paul A. Samuelson, 1970 Recipient of the Nobel Prize for Economics

he Internet is one of the great frontiers of our generation. A universe that can never be fully explored, its users constantly build, create, tear-down, replace, update and redefine it. Morphing and adapting from minute to minute, second to second, no two visits will offer the same experience. What many imagined in the early 1990s has been blown away by 2007, and the Internet is just getting started. On a quick trip one can find the valuable, the informative, the entertaining, the profane, the useless and the just-plain-weird in a matter of seconds. And business stands right in the middle of it all. Business is the engine that drives the machine, ensuring that developments will continue to emerge even faster in the future. The rate of growth is phenomenal. “There is far more competition now – hundreds of millions of websites are being launched on the Internet each year, with many competing for the same potential customers,” said Simon Dunwoody, Business Development Manager for The Found Agency, an Internet marketing agency based in Australia. Around the world, people are flocking to the Internet. For personal entertainment, business opportunities, networking, job searches, as a primary or secondary news source, as a vehicle to voice your views on the world – if you can imagine it, there are probably at least 100 sites devoted to it, whatever “it” is.

BUSINESS AND THE INTERNET According to comScore Networks, a company that bills itself as a “leader in measuring the digital age,” worldwide Internet usage increased 10 percent from December 2005 to December 2006. Measuring unique users, comScore’s analysis indicated that Search, Multimedia, Community, Email and Games were the fastest growing segments of the Internet. A few companies and the things they offer online have become branding giants on the level of Coca-Cola and Ford Motor Company. Ten years ago if someone told you to “Google it,” you’d have had no idea what they were talking about. Today, at least three-quarters of America’s adult population would know just what that means. Google, the second-most-visited site worldwide, grew more than 13 percent over the last year. “Google’s popularity has been driven in part by its international appeal as well as the rapid uptake of some of Google’s applications beyond traditional web search,” said Bob Ivins, Managing Director of comScore Europe. “Examples include the 40 percent year-over-year growth in visitors to Google Image Search, the 71 percent growth in visitors to Gmail, and the 62 percent growth in visitors to Google Maps.” A January 2007 report by Nielsen/NetRatings indicated that Google, with more than 3 billion total search queries, handled nearly 51 percent of the total U.S. searches for the month of December 2006. Yahoo! Search was next with 1.4 billion (23.6 percent), followed by MSN/Windows Live Search with nearly 500 million (8.4 percent). Some of the other Internet stars of 2006, according to the comScore Networks report, included YouTube.com, which grew 1,972 percent since December 2005, and MySpace.com, which grew 159 percent in the same span. Other fast risers included Nintendo.com (157 percent), MSN News & Weather (131 percent), Blogger (90 percent), Gmail (71 percent), Yahoo! News (44 percent), and New York Times Digital (20 percent).

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t could be said that the world in 2007 is a marketer’s dream. We wake to our alarm-clock radios singing the praises of the Independent Tire Dealers. We turn on our televisions to check the traffic and weather before heading out for work, and it’s the McDonald’s Commute Checker, complete with golden arches at appropriate locations along the side of the road. We flip through the Wall Street Journal when we get to the office and find a full-color HP advertisement spanning the five columns at the bottom of the front page. The Internet, of course, isn’t any different. In fact, it’s the next great thing in advertising. Advertising is omnipresent online. For instance, since Burger King has spent millions getting the smiling, freakish “King” character in front of fans during Sunday afternoon professional football telecasts, you can bet they’ve bought their share of space on sports websites. In fact, a quick check of the espn.com site reveals the “ESPN SportsCenter King of the Night” poll question right on the front page, brought to you by Burger King. This falls just below the “ESPN Motion” rotation of video clips and television commercials. On a recent visit, Chase Freedom Visa and Olevia high-definition televisions highlight the advertising content on ESPN Motion. Of course, if you dig a little deeper, you find that Olevia also sponsors something called ESPN Full Court, a premium pay option

ONLINE ADVERTISING for basketball fans (which is also running ads on ESPN Motion). It all seems to tie together somehow. The Interactive Advertising Bureau (IAB) announced recently that Internet advertising revenues reached a record $4.2 billion for the third quarter of 2006. The 2006 third quarter revenues represent a 33 percent increase over $3.1 billion in third quarter 2005 and a 2 percent increase over the second quarter 2006 total of nearly $4.1 billion. “The consistent growth of online advertising is a clear indication that marketers continue to embrace the true power of interactive advertising,” said Sheryl Draizen, Senior Vice President and General Manager of IAB. “Marketers are experiencing how this medium enhances their ability to target and engage the audience that matters to their brand and then measure its effectiveness in ways no other medium provides.” So how does online advertising work? “Basically, Internet advertising is all about helping customers find your website and business,” said Simon Dunwoody, Business Development Manager for The Found Agency. “The end goal is usually to send traffic to your website and engage customers with your business as a result. Internet advertising can come in many forms – banner advertising, email marketing lists, viral marketing campaigns, search engine marketing – and all forms have their pros and cons.” Dunwoody said his agency, headquartered in Australia but serving clients in Europe and the United States as well, specializes in search engine marketing, which has grown exponentially over other forms of online advertising due to its effectiveness. He said search engine marketing takes two main forms: natural search engine optimization and pay-per-click advertising. Continued on Next Page

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ONLINE ADVERTISING (Cont. from page 5)

“Search engine optimization is all about getting a website to rank in the natural results of search engines like Google, MSN and Yahoo!” he said. “So, if you’re a mortgage broker in Sydney, you want your website to appear near the top of the rankings when someone searches for relevant search phrases like ‘home loans Sydney’ or ‘Sydney mortgage brokers.’” Pay-per-click, on the other hand, is paid targeted text, image and video advertisements that appear on search engines and across a range of websites. Dunwoody said that previous models of Internet advertising – like banner ads – are still common, but they are limited in what they can accomplish. “We are a specialist search marketing agency and we advise clients in this niche online marketing area, not banners, email and the like,” he said. “The overriding premise now is that the website idea of ‘build it and they will come’ has disappeared, mainly because it was so flawed as a marketing strategy. Our role as a search marketing agency is to deliver pre-qualified traffic to a client’s website, as cost effectively as possible.” So, if a small business owner – or a manager at a larger company, for that matter – is considering jumping into Internet advertising, what would Dunwoody suggest as a starting point?

“Good marketing...has almost always been about good relationship building. This is no different online than offline. Those that do it the best often win.” Stoney deGeyter, owner of Pole Position Marketing “One of the first steps we take with new clients is to establish what their business objectives are,” he said. “Once we gain an insight into what it is exactly that they want to achieve, we propose a strategy for delivering costeffective, targeted search traffic. Most clients want natural search engine optimization first, without even knowing what keywords they want to rank for. Our suggestion is to slow down and be analytical before spending large sums of money. “We usually run paid search (pay-per-click) first, for two reasons. First, it’s an immediate source of traffic – a campaign can go live within hours or days and clients can measure the results. Second, paid search can be used as a research exercise, to establish the highest yielding keywords, not just the most popular. This data is invaluable for further website strategy and search engine optimization work.” What kinds of costs can be expected with this sort of marketing campaign? Dunwoody said the main search engines typically charge either on a cost-per-click model, or cost per thousand impressions (CPM). With CPM, every time an ad is displayed, regardless of whether it is clicked on or not, one impression is registered. Cost-per-click is the most popular model, he said, with click costs ranging from five cents per click-through to more than $50 per click for highly competitive terms such as “home loan.” The overall cost range can vary dramatically. “A company can spend anywhere from $10,000 to $500,000 per year on Internet marketing,” said Stoney deGeyter, owner of Pole Position Marketing, another company specializing in search engine optimization. “In fact I’m sure there are large companies out there spending much more. There are simply so many options available that there is no limit to the amount of money that can be spent. The trick is to find the marketing arenas that will provide the best return on investment and invest there. Once that is pretty well maximized, then start diving into other marketing areas, testing return constantly in order to see which are worth pursuing more deeply and which are not.” 6 BGS INTERNATIONAL EXCHANGE SPRING 2007 WWW.BETAGAMMASIGMA.ORG

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Ranked #1 MBA in Florida by Forbes, August 2005 Ranked #1 in the South, America’s Best Colleges, US News & World Report, August 2006 Recognized by Entrepreneur Magazine for leading Entrepreneurship program, September 2006 said it will be interesting to see how An emerging trend – and one that seems to be getting a great deal of the technology is applied to search press coverage – is behavioral targeting. According to the engine ads over the coming months OnTargetInteractive.com website, behavioral targeting is a technique that and years. uses online advertising to reach web consumers based on their web surfing For the future, the major search behavior. For instance, if an Internet user spends a great deal of time checking engines like Yahoo! and Google are on sports-related material, then ads can be tailored to be delivered to that working hard to develop platforms person when they are visiting other, non-sports related sites, such as news or to serve ads in additional online other entertainment sites. formats like audio and video. Obviously this kind of targeted advertising could prove to be very Some of that is already happening, effective. In our example above, it’s obvious that marketing sports-related but should become much more products to someone who has spent a significant amount of time looking at widespread in the next year. sports material (targeted approach) is better than marketing sports-related deGeyter cautioned about products to everyone (shotgun approach). The return on investment can be getting caught up in the newest considerably higher. technology. “I think any idea that analyzes user behavior as a means to provide better “Good marketing, however, content and targeting is beneficial,” deGeyter said. “The ultimate goal is to be has almost always been about good able to find the audience that is most willing to buy your product or service relationship building,” he said. “This and go after them. This is where the money is.” is no different online than offline. However, there are skeptics. One of the big concerns is the issue of Those that do it the best often win.” privacy. For behavioral targeting to work, advertisers must collect some non-personally identifiable information. However, that hasn’t been very well received by the public. A survey conducted in 2004 by Burst Media found only 23 percent of respondents are comfortable with websites collecting nonWhat did you think about this article? personally identifiable information to deliver more relevant Share your feedback with BGS: ads. exchange@betagammasigma.org Dunwoody pointed out that despite all the hype, behavioral targeting is still an emerging technology. He BGS INTERNATIONAL EXCHANGE SPRING 2007 WWW.BETAGAMMASIGMA.ORG 7

ailed as the “next great evolution of the Internet” by some, Second Life has taken the (real) world by storm and become the darling of a trend-hungry media. At the same time, however, the technology has been criticized for being cumbersome, slow, difficult to learn, and some bloggers on technology websites say it’s “the same virtual reality (stuff) they tried to feed us in the late ‘90s.” Will it become a significant tool of business in the decade ahead? Opinions vary greatly. According to Linden Lab, the creators of Second Life, this virtual world now boasts more than 3 million “residents.” On January 29, 2007, the site reported that more than $1.4 million (U.S.) had changed hands on Second Life in the preceding 24-hour period. At precisely 2:15 pm Eastern on January 28, there were more than 27,000 people logged into the Second Life site (known as being “in-world”). The creation is a virtual world, complete with animated characters (avatars) developed by users that look, feel and act however the creator chooses. And make no mistake, the creators are those who register for and visit the site. Linden Lab does not create the businesses, games, recreational opportunities,

BUSINESS AND THE VIRTUAL WORLD etc. that exist within Second Life. It is left to the users to come up with new and interesting ways for the site to be used. There are parks, beaches, libraries, nightclubs, auto showrooms, retail outlets, and more than a few X-rated opportunities. The list of possibilities grows daily, as residents develop new ways to build their virtual world. “Second Life is what we all dreamed the web could become when we first saw it in 1994,” said Philip Rosedale, CEO and founder of Second Life, in a release. “As the world has grown we’ve seen it blossom with more experimentation and ambitious development. Projects like the Katrina Benefits, the American Cancer Society’s Relay for Life and inworld book talks by prominent authors demonstrate there are many ways to experience Second Life.

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“I’ve seen everything from a weekly dinner club hosted by a singing frog to fashion designers who are making their living in Second Life. In fact, Tringo, a game that was created in Second Life by resident Kermitt Quirk, transitioned from Second Life to GameBoy Advance. It’s exciting to witness the evolution of Second Life and to find it is as full of interesting characters and amazing

stories as the real world is.” THE FOX SCHOOL | MS in Financial Engineering As a business platform, Second Life has attracted In Response to Global Demand… an interesting list of companies and organizations. American Apparel was one of the first, launching a successful clothing store that generated a tremendous amount of media buzz. Adidas sells shoes, Starwood rents hotel rooms, Scion has developed a virtual auto showroom, and the Sundance Channel debuted a virtual movie screening room. Many educational organizations are developing new ways to lead virtual classroom learning opportunities, including the Harvard Law School, which already has a few online courses within the Second Life world. Now accepting applications for Fall 2007. So how is business conducted in Second Life? Well, that’s where it gets interesting. In-world users www.fox.temple.edu/msfe purchase or rent land and other items with Linden Dollars. These virtual dollars can be purchased online with a (real world) credit card, and the exchange rate is approximately $1 (real-world U.S.) to 300 Linden dollars. According to the Second Life website, “Millions In November 2006, Second Life of Linden Dollars change hands every month for the goods and services resident Anshe Chung claimed to be residents create and provide. This currency may then be bought and sold on the first person to amass more than $1 million (U.S.) in wealth through profits generated entirely through “I’ve seen everything from a weekly dinner club hosted by a this virtual world. Inside Second singing frog to fashion designers who are making their living Life, Chung buys and develops in Second Life.” virtual real estate. In addition, Philip Rosedale, CEO and founder of Second Life she has “cash” holdings of several million Linden Dollars, several virtual shopping malls and virtual store chains, and she has established LindX (Second Life’s official currency exchange), or other unaffiliated third several new, virtual brands. party sites for real currency.” A few individuals have made it big through this virtual existence.

TEMPLE Introducing our new Master of Science in

Financial Engineering.

Continued on Next Page

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BUSINESS AND THE VIRTUAL WORLD (Cont. from page 9)

She claims to have significant virtual stock market investments in Second Life companies. Incredibly, there is no “real” person named Anshe Chung. That’s just the virtual name chosen by Ailin Graef, who saw an opportunity more than two years ago where most just saw a gaming site. She spent less than $10 to set up her original account in Second Life’s early days, purchased some small parcels of virtual real estate, then subdivided and developed the virtual land and offered property for rental and resale. Her business flourished. Graef’s operations have since grown to include the development and sale of properties for large-scale real world corporations inside Second Life. This has led to the development of her “real life” company, called Anshe Chung Studios. Her company develops 3D, virtual environments for applications ranging from education to business conferencing and product prototyping. Of course, this all happens virtually in Second Life. Business is booming, as the company is actively expanding its “real” workforce in Wuhan, China, from 25 to 50 employees. In January 2007, Linden Lab announced a gamble that its creator feels will lead to the next big boomtime for Second Life. Linden Lab released the code of its viewer application to the software development community. In a statement, Linden Lab said the result would be that “developers can now access the source code to the Second Life end-user software in order to make modifications, enhancements and to add new features.” The company says this ensures that Second Life will

VIRTUALLY BUSY The Second Life website lists the following businesses as examples of enterprises run virtually by residents:

Party and wedding planner Pet manufacturer Tatooist Automotive manufacturer Fashion designer Custom avatar designer Jewelry maker Architect XML coder Freelance scripter Game developer Tour guide Real estate speculator Publicist or marketing representative remain “an open, extensible platform for development, rather than a closed proprietary system.” Rosedale said giving users more control is the next logical step as they seek to improve the resident Continued on Page 12

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“Have you ever heard of Second Life?” The question was posed to a 50-something professional female BGS member. Laughing, she said, “I’ve heard of reincarnation.” That’s not exactly the definition of the Second Life we had in mind, but it may accurately represent the level of understanding that Beta Gamma Sigma members and other business professionals have about Second Life and other virtual online worlds. A recent Beta Gamma Sigma email survey (4,428 respondents) indicated that online virtual worlds remain a mystery to many. Responding to the question, “How familiar are you with online virtual worlds, such as Second Life?” 55 percent had never heard of them while another 29 percent had heard of them but had no real knowledge of what they are. Only 2 percent of respondents were very familiar with them. Predictably, those BGS members who reported higher amounts of Internet usage (both business and personal) were more familiar with products like Second Life. Of those utilizing the Internet at least 16 hours per week, 21 percent were somewhat or very familiar with online virtual worlds. For those members accessing the Internet 15 hours per week or less, fewer than 10 percent were somewhat or very familiar with Second Life or other online virtual worlds.

For those BGS members who had visited and/or used Second Life (6 percent), some of the respondents’ reasons for doing so included: To educate myself; to understand the application. Still deciding what to do there… Exploring it for research and teaching. Just to see what it was. MBA studies. Considering business and personal use. I really just took a look to see what it was. For my Ph.D. dissertation. Entered in order to assess business opportunities. Charity organization. Research for work. Checked it out in a class…thought it was weird. One-time review to try to stay current. Learning experience. Just to have a look. Investigation about entertainment and business opps. Selling my home. Visited and explored…not used.

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BUSINESS AND THE VIRTUAL WORLD (Cont. from page 10)

experience in Second Life. “We were the first virtual world to enable content creators to own the rights to the intellectual property they create,” he said. “That sparked

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exponential growth in the richness of the Second Life environment. Now we’re placing the viewer’s development into the hands of residents and developers as well. This extends the control residents can have over the Second Life experience and allows a worldwide community to examine, validate and improve the software’s sophistication and capabilities.” Second Life has become popular enough that one website – www. getafirstlife.com – has been created as a satirical dig at the virtual world and its residents. On its website, Get a First Life says, “First Life is a 3D analog world where server lag does not exist.” It suggests that people should “Go Outside: Membership is Free.”

What did you think abut this article? Share your feedback with BGS: exchange@betagammasigma.org

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Of course we all use the Internet to conduct business and for personal enjoyment. That’s not really much of a question anymore, as the Net has morphed into an irreplaceable tool that has changed the way we live our lives. Our society has sped up, in both good and bad ways, because information is available at the touch of a button. The Internet is as important today as a combination of the telephone, library amd postal service were 25 years ago.

hat’s more, we don’t even need a computer to connect with the ever-shrinking outside world. Blackberries, other PDAs, cell phones – the list of delivery methods is seemingly endless. In fact, if you live in Kalamazoo, Mich., and you want to compete against someone in Kiev, Ukraine, on your favorite video game, no problem. Plug in and have at it. When it comes to personal spending, the Internet is big business, and that trend is not expected to change. During the recent 2006 holiday season, online purchases increased to record numbers. According to Nielson// NetRatings, the Holiday eShopping Index grew 20 percent in the United States for the week ending December 10: there were 563 million visitors to

CYBERSPACE CONSUMERISM Increased Personal Spending on the Internet 120 representative online retailers in 2006 vs. 469 million in 2005. Toys/Video Games was the fastest growing segment, with a 49 percent increase over the previous year. Books/Music/Videos grew 46 percent, while Consumer Electronics visits increased 27 percent. According to the eShopping Holiday Index, December 12, 2006 was the heaviest online shopping day of the holiday season with 30.4 million unique visitors. Leading the way was eBay, which registered 12.4 million unique visitors that day, followed by Amazon (6.1 million), Wal-Mart Stores (4 million), Target (2.75 million) and BestBuy.com (1.75 million). Continued on Next Page

EMERGING. EVOLVING. BUSINESS NEVER STANDS STILL … AND NEITHER DO WE.

Miss an issue? Back issues of the BGS International Exchange are available on BetaNet.

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BGS INTERNATIONAL EXCHANGE SPRING 2007 WWW.BETAGAMMASIGMA.ORG 13

CYBERSPACE CONSUMERISM (Cont. from page 13)

Holiday Online Retail Sales

The Internet’s unique position as an “always open” retailer is driving additional growth. While it’s only possible to go to a brick-and-mortar establishment when they decide to open their doors, an e-store is always open for business. In addition, shoppers don’t have to make the trip to the store to find out if the latest trendy item is in stock. They can go online and find out quickly if it’s available for shipment. If not, it’s on to the next store, without the hassle of fighting for the last parking space. Online shopping has become a part of the holidays themselves, with 24 percent more unique visitors on Thanksgiving and 29 percent more on Christmas day than last year, according to Nielson//NetRatings. Their conclusion? “Many people are taking advantage of their holiday time off to go online and shop while brick-and-mortar stores are closed, which means online shopping may soon take its place among the American holiday traditions of eating and spending time with friends and family.” According to comScore Networks, the U.S. isn’t the only place where shoppers are relaxing in their bathrobes in front of their monitors with a cup of coffee rather than making that annual trek to the mall. From October 30 to December 31, 2006, (in U.S. dollars) German residents spent $7.1 billion, U.K. consumers spent $5.3 billion, and the French spent $2.5 billion online. This compared to the $24.6 billion U.S. residents spent online during the same period. “European online retailers appear to have done well this holiday season,” said Bob Ivins, managing director of comScore Europe. “Almost across the board, activity on the secure buying pages of online retail sites during the 14 BGS INTERNATIONAL EXCHANGE SPRING 2007 WWW.BETAGAMMASIGMA.ORG

Source: comScore Networks

holidays rose 50 percent above the average level of activity prior to the holidays, indicating that European online retailers had a very merry Christmas.” But at least one market research firm believes there is a ceiling; that growth in online purchasing will not continue at its present rate. In a January 2007 report, JupiterResearch predicted that online retail spending in the United States will plateau at 10 to 15 percent. The company did suggest, however, that the research component of the web – browsing and figuring out what to buy and where – would continue to grow. According to their estimates, online browsing and research is expected to influence 40 percent of all U.S. retail sales by 2011. So, even when Internet sales stop rising year-to-year, the importance of gathering information about products and services will keep the Internet growing for the foreseeable future.

What did you think abut this article? Share your feedback with BGS: exchange@betagammasigma.org

Beta Gamma Sigma surveyed a segment of its membership in October 2006, focusing on a variety of topics. Of particular interest were BGS member responses to questions about Ethical Business Leadership. By collecting information about the thoughts and feelings of Beta Gamma Sigma members, we can accurately report, “Those who graduated at the very top of their classes in the world’s best business schools said…” We wanted to share with our members some of the responses provided. As always, if you have questions or comments, or if you’d like more information about our Ethical Business Leadership initiative, please contact us at exchange@betagammasigma.org. Who do you think has the most responsibility to ensure that ethical business behavior is part of the culture of the company? Don’t know (<1%)

You, the employee (5%)

Since the debacle several years ago of Enron and WorldCom, do you think the ethical climate in American business has: Become much worse (1%) Gotten somewhat worse (5%)

Improved greatly (3%)

The company’s top management (28%)

Everyone contributes to the ethical behavior of the company (65%)

The company’s HR department (1%)

Improved somewhat (52%)

Remained the same (40%)

Survey conducted by BusinessWeek Research Services for Beta Gamma Sigma, Inc.

Beta Gamma Sigma Congratulates its 2007 Award Recipients! Business Achievement Award Recipients

Medallion for Entrepreneurship Recipients David Bussau

Founder, Opportunity International Nominated by: Loyola Marymount University

James J. Maguire

Edwin F. Hale, Sr.

Chairman and Founder, Philadelphia Consolidated Holding Company Nominated by: Saint Joseph’s University

CEO and Chairman, First Mariner Bank Nominated by: Towson University

Gerald W. Schlief

Howard L. Hawks

Senior Vice President, ATP Oil and Gas Corporation Nominated by: Stephen F. Austin State University

Founder, Chairman, and CEO, Tenaska, Inc. Nominated by: University of Nebraska at Omaha

Dmitri Stockton

Randal J. Kirk

President and CEO, GE Money, Central and Eastern Europe Nominated by: North Carolina A&T State University

For recipient biographies: http://www.betagammasigma.org/businessachieve07.htm

Founder, Chairman, and CEO, New River Pharmaceuticals, Third Security, LLC Nominated by: Radford University

For recipient biographies: http://www.betagammasigma.org/medallions07.htm BGS INTERNATIONAL EXCHANGE SPRING 2007 WWW.BETAGAMMASIGMA.ORG 15

Gifts from Friends

Beta Gamma Sigma gratefully acknowledges the support of the following individuals, as well as the organizations listed on page one. Without this assistance, the Society would be unable to continue adding value to the lifetime membership.

Director’s Table $1,000-$1,999

University of Arizona Janis Monroe University of Arkansas John M. Norwood Fordham University Bert W. M. Twaalfhoven Loyola Marymount University John T. Wholihan New York University Graduate School of Business Robert Kaufman The University of North Carolina at Greensboro James K. Weeks Oklahoma State University Sara M. Freedman University of Rhode Island James A. Viehland Rutgers, The State University of New Jersey Newark Gerald H. Lipkin Valdosta State University Kenneth L. Stanley Business Achievement Award Joseph W. Moeller

President’s Cabinet $500-$999

University of Alabama Marinda J. C. Wood California State University, Sacramento Michael J. Poulos University of Colorado P. John Lymberopoulos Eastern Illinois University Jack Schultz University of Miami R. Chad Brenner Michigan State University Bruce D. Bottomley University of MissouriColumbia Duncan L. Matteson New Mexico State University M. Don Kidd Oregon State University Ken Austin Donald F. Parker Purdue University Dennis J. Weidenaar Sam Houston State University Preston Johnson, Jr. Union College Walter L. Robb Washington and Lee University Richard H. Turrell Western Illinois University Vicki C. Klutts

Dean’s Club $250-$499

University of Arkansas at Little Rock Susan G. Rogers Baruch College, CUNY William H. Shron California State University, Chico Janet H. Smith University of California, Los Angeles Ross E. Roeder University of Chicago Thomas G. Baker Clemson University John P. Harman

University of Connecticut H. Douglas Porter University of Detroit Mercy Francis Westmeyer Eastern Illinois University Greg Bonnell Hong Kong University of Science and Technology Paul M. F. Cheng University of Houston Charles R. Idol Indiana University Jack R. Wentworth Christopher T. Winkler University of Iowa Vernley R. Rehnstrom Mercer University Antonio R. Davis Miami University Robert J. Kamerschen Michigan State University Philip E. Lippincott Nicholls State University Richard Barker III North Carolina A&T State University Quiester Craig Ohio University Albert J. Weatherhead, III University of Rochester Serge Deteindre University of Southern California Doreen Lee Gee Southern Illinois University at Edwardsville Dana Charles Walker The University of Texas at Austin Grant A. Fuller Tulane University Darwin C. Fenner Lance B. Young

Century Club $100-$249

University of Alabama at Birmingham J.S.M. French Jeffrey I. Stone University of Alabama William A. Barry, III James H. Bearden George R. Rea, Jr. University of Albany, SUNY George Yee University of Arizona Howard S. Bremond Robert A. Eckert University of Arkansas Harry C. Erwin David R. Malone Julia P. Mobley Auburn University Vicki L. Bentley Ball State University John W. Fisher Lynne D. Richardson Baruch College, CUNY Sylvia Clark Samuel M. Miller William E. Oakley John V. Restuccio Dr. & Mrs. Samuel G. Ryan Jerome A. Seidman Baylor University David M. Jacobs Boston College William C. McInnes, SJ Bennett Soo Yee Boston University Harvey A. Creem California State University, Fresno Matty Matoian

California State University, Long Beach Rosa N. McDonald California State University, Sacramento George T. Gibson University of California, Berkeley Leonard A. Aplet Marc J. Desoer Harold E. Kren Leland E. Leisz Wilbur H. Stevens Howard R. Toole University of California, Los Angeles Gordon A. Fell Bernard D. Fischer Irwin D. Goldring Canisius College Anthony N. Diina Reginald B. Newman II Case Western Reserve University Marguerite B. Humphrey College of Charleston Anita Zucker Jerry Zucker University of Chicago John T. Baily Clark University Claire Maday-Travis Dawn Murphy Clarkson University Harry F. Voss Clemson University Marvin J. Pinson, Jr. Colorado State University Richard L. Robinson University of Colorado Robert S. Graham Columbia University Diana M. Sattelberger Barry M. Shereck University of Connecticut George G. Roller Joseph A. Steger Creighton University Bryan K. Brown University of Dayton Terry D. Carder University of Delaware Judith A. Schabel University of Denver Lowell A. Hare University of Detroit Mercy Ronald J. Gdowski Daniel E. Grady Drake University J. Robert MacNaughton Emory University Matthew D. Hofrichter Florida Atlantic University Charlene R. Walker University of Florida John C. Appel Frederick E. Fisher Yannis N. Karayannis John J. Slaboch Fordham University Kevin J. McKenna Francis Marion University Frank H. Avent George Washington University Mary M. Lewis Barry N. Smith Georgia Southern University Mary F. Hazeldine Albert J. Roesel Georgia State University Dale N. Davis Larry F. Miller Rita C. Scoggins

16 BGS INTERNATIONAL EXCHANGE SPRING 2007 WWW.BETAGAMMASIGMA.ORG

University of Houston Marilyn M. Falkenhagen Harry M. Jacobson Kenneth Y. Rosenzweig University of Illinois at Chicago Dennis W. Baker University of Illinois Clifford R. Buys Thomas B. Sleeman Indiana State University James M. Gutting Indiana University Donald C. Danielson William D. Fischer Warren O. Hilton Erwilli R. Jackson Indiana University Southeast Norman E. Pfau, Jr. Indiana University-Purdue University at Fort Wayne Susan M. Hinds University of Iowa W. Robert Berg Jeffrey B. Warner James Madison University Alan S. McCleaf Lehigh University Jack K. Busby Paul Caster Loyola College in Maryland Albert R. Counselman I.H. Hammerman, II Loyola Marymount University Lynn De Groot Loyola University Chicago Kenneth R. Weigand Marquette University David J. Hushek David A. Straz, Jr. Craig I. Zirbel University of Maryland Robert H. Carmack George M. Ray Russell F. Smith University of MassachusettsLowel Amy K. Regan Memorial University of Newfoundland Paul D. Dicks University of Miami James W. Lovely Ray M. Shaw Miami University Michael Schamroth Michigan State University Dennis W. Duquette Douglas M. Klein Richard J. Lewis Alexander C. McKeen Ronald J. Patten University of Minnesota James B. Dagnon Montclair State University David C. Zimmerman New York University Lon F. Birnholz Arthur J. Krakower Sanford J. Moster Richard C. Nerod David K. Owens New York University Graduate School of Business Gunda E. Vesque

GENEROUS DONORS SUPPORTING BETA GAMMA SIGMA October 16, 2006 - January 15, 2007 University of North Carolina at Chapel Hill Alan B. Flaschner Jack M. Harris Edwin S. Melvin Sean T. Williams University of North Florida John F. Swietnicki Northeastern University Charles D. Baker Sheldon Cohen Baker A. Smith Lorraine P. Steele Northern Illinois University Denis M. Desmond Alfred J. Knox Northwestern University Lido C. Gianneschi Kurt L. Janavitz Lawrence R. Kosinski John S. Thode University of Notre Dame Robert M. Tobben Oakland University C.S. Bud Kulesza George H. Seifert The Ohio State University Jack Davis Robert A. Marsh James G. McMillan Charles Plum Press Clay Southworth, III Oklahoma State University John C. Linehan University of Oklahoma Manley W. Crider University of Oregon Kevin W. O’Neill Pennsylvania State University James B. Miller University of Pennsylvania Thomas L. Markl Robert C. Nevin University of Pittsburgh Edward W. Kay Donald H. Peters Portland State University George E. Miller University of Richmond Robert S. Ukrop Rochester Institute of Technology Edwin J. Carroll, III University of Rochester Ramachandra Bhagavatula Roosevelt University Donald H. Ho Fung M. A. Melodie Karnezis Rutgers, The State University of New Jersey Newark Sanjay V. Mirpuri Saint Louis University David A. Gardiner San Diego State University Monty W. Dickinson Gene A. Lynes Charles M. Medvitz Barry J. Shillito University of Southern California John M. Bonino Massoud Ghaemi Jay H. Grodin Terrence O. Hughes Gustavo E. Paladines Southern Illinois University at Edwardsville Arnold G. Franke Deborah L. Johnston Hulas H. King Southern Methodist University Gary A. Feather Cher E. Thomas Jacobs

St. John’s University Iris Altilio Roland R. Eppley, Jr. Mary M. Jordan Eileen T. Lemonda Brian T. Shea Anne Caputo Wennington Suffolk University Susan O. Olivier Susquehanna University Raymond C. Lauver Syracuse University Gustav J. Braun Frederick H. Weeks Temple University Marvin Comisky Gary Mozenter University of Tennessee at Knoxville Barry P. Sebralla Texas Christian University Timothy J. Daniel Texas Tech University Ray L. Robbins The University of Texas at Arlington Mark C. Hensel, Jr. The University of Texas at Austin Orville A. Armstrong Susan B. Mead Glen A. Rosenbaum Carol A. Shepherd Charles A. Watson The University of Texas at Tyler Billy G. Hartley James I. Perkins Valdosta State University W. Ed Crane Virginia Polytechnic Institute and State University John G. Rocovich, Jr. John E. Wilson Washington and Lee University Robert C. Gammon Glenn O. Thornhill, Jr. Washington University Howard E. Lovely Joe E. Strawn, Jr. Wayne State University Debra L. Bernstein West Virginia University Richard M. Gardner D. Steven Hamilton Russell L. Isaacs Western Carolina University James A. Valkenaar, Jr. College of William and Mary Hays T. Watkins University of WisconsinMadison Jack W. Boyle David Geraldson Anton T. Vanek University of WisconsinMilwaukee Tara L. Zerby Wright State University Christopher M. Frame University of Wyoming Margaret H. Williamson The Herndon Foundation Unknown

Thank You!

FOR YOUR GENEROUS SUPPORT

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GEICO could save you $500 a year on car insurance. Wouldn’t that help your bottom line? Beta Gamma Sigma members could receive a special discount on GEICO car insurance. Visit geico.com for your free rate quote and be sure to select Beta Gamma Gigma when asked for your affiliation. Special member discount

GEICO offers you: • Outstanding, 24-hour service online or on the phone. • Fast, fair claim handling. • Guaranteed claim repairs at GEICO-recommended shops.

To find out how much you could save,visit geico.com or call 1-800-368-2734 today. Average savings information based on GEICO New Policyholder Survey data through August 2005. Discount amount varies in some states. Some discounts, coverages, payment plans, and features are not available in all states or in all GEICO companies. One group discount applicable per policy. Government Employees Insurance Co. • GEICO General Insurance Co. • GEICO Indemnity Co. • GEICO Casualty Co. These companies are subsidiaries of Berkshire Hathaway Inc. GEICO auto insurance is not available in Mass. GEICO, Washington, DC 20076. © 2005 GEICO

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