This article first appeared in the UConn Business magazine, Volume 1, Issue 1 (Summer 2009)

“Creativity is in our DNA at Walmart,” noted Bill Simon ’81, ’88 MBA, a distinguished UConn School of Business alum.  Simon, Executive Vice President and Chief Operating Officer of Wal-Mart US., and his colleague, Hank Mullany, President of Wal-Mart Northeast, were addressing questions from Full-Time MBA students at a forum about organizational  transformation on Tuesday, April 21st.

After the forum, they opened the floor to a question and answer session regarding career management, a topic of particular importance to students in this economic climate. The forum held at UConn was focused on the organizational transformation that Walmart Executives Address Organizational Transformation and Careers with MBA Students Walmart has undergone in the past few years and career advancement.

Mr. Simon started with a quote from Walmart CEO, Lee Scott, “To stay out in front of change, we must make unique contributions to the community.” Walmart does this through a strong strategy around climate, waste and products. Stores are becoming more energy efficient through solar power and renewable energy, creating zero waste and selling products that sustain resources and the environment. This is a two-fold effort: it gives Walmart a great image, but it also saves the company millions of dollars a year. Smaller packing allows the company to save waste and lowers the cost of operation. Aerodynamic trucks save 32 million gallons of fuel each year.

Walmart’s corporate motto “Save Money. Live Better.” follows this notion. Mr. Simon is proud to be a Walmart employee; he believes that Walmart’s position as an established leader in the retail segment is driven by its ability to save consumers money and provide them with fast and friendly stores. Simon also noted that Walmart is adept at executing new ideas by staying on the cutting edge; he’s never experienced a company that does it better.

In the career session, Simon and Mullany spoke to MBA students about the skills and traits that are needed to excel in today’s business world. Students should leave their MBA program with a willingness to work hard. Mullany notes that having a “fire in your belly” that will fuel work ethic is among one of the most important skills. In addition, strong  communication, leadership and analytical skills will contribute to success in the business world.

Today’s business world is competitive and Mr. Simon and Mr. Mullany reminded all students to be proactive, not reactive. A new employee can make a difference early on and has the opportunity to shine when first starting a new job. In order to be successful in finding the right job, Mr. Simon reminded all students not to take a job simply because the pay seems right. He asked the students to always remember three basic principles: ask yourself what you get from the position, what you give to the position/company and what is in it for you. Mr. Mullany followed with stressing the importance of having a vision of what you want out of a career. The skills Mr. Simon learned at UConn helped to prepare him for his career trajectory.

Mr. Simon is currently Executive Vice President and Chief Operating Officer of WalMart US. He is responsible for the retailer’s U.S. operations, covering more than 3,600 stores, logistics, asset protection, transportation and store innovation. The Walmart U.S. retail units include Discount stores, Supercenters, Marketsides and Neighborhood Markets. He was promoted to his current position in 2007. Mr. Simon was previously EVP of Professional Services and New Business Development where he managed Pharmacy, Optical, Tire and Lube Express, Photo, and Connection Centers. Mr. Simon also led the team that created and launched Walmart’s $4 generic prescription program.

   

This article first appeared in the UConn Business magazine, Volume 1, Issue 1 (Summer 2009)

When Selma Cagatay-Searfoss ’94 (SSW) sought to mark the passing of her husband, David Searfoss ’76 MBA, she and her children created an endowment in David’s honor to support the School of Business’s Student Managed Investment Fund. “With this fund, we hope to encourage students’ education, but also to promote David’s legacy,” says Selma. “I think this fund really captures his vision and spirit. The whole family is thrilled with the establishment of the fund and with its current success.”

One of the School of Business’s most popular educational programs, the Student Managed Fund, established in 1999, offers students a rich experiential learning immersion in stock selection, trade execution, and portfolio management. Funded by the UConn Foundation in cooperation with the School of Business, the Department of Finance, alumni and private donors, the fund gives students a unique opportunity to apply classroom concepts to real-life investing.

Investing in the financial markets was a passion David Searfoss developed early in life. After starting his career as a Certified Public Accountant and eventual Audit Manager with Price Waterhouse in Hartford, he then became the Senior Vice President, Chief Financial Officer and Treasurer of the Orion Group. After serving as Vice President and Controller of the Orion Capital Corp, he became Executive Vice President and Chief Financial Officer of the Phoenix Home Life Mutual Insurance Company. David was also a Certified Financial Analyst, and formed Sears Investment Management, LLC a registered advisory firm.

Selma’s and David’s son Cengiz Searfoss, a managing director at DCS Capital, has taken on a more instrumental role in overseeing the Student Managed Fund. He greatly appreciates how experiential learning enables School of Business students to think more critically about their investment selections and the timing with respect to those decisions. “That type of risk awareness is something that doesn’t come instinctively until you start to manage money. These students gain
a good understanding of what they’re getting into and why. They really understand the backdrop, the industry, and the fundamentals; their in-depth understanding of decision-making is a real testament to the students and to UConn,” he says.

Both Selma and Cengiz agree that David would be especially proud of the character building that students experience as a result of their involvement with the Student Managed Fund. “Teaching students how to maintain the highest levels of integrity while maximizing returns is so important, so teaching students the importance of character building and business acumen is what would make David very happy,” Selma emphasizes. If any of the student’s investments go bad, they know they must be accountable to the board, and, as Cengiz shares, “that’s part of the accountability process.”

Selma, a native of Turkey, agrees that the family’s support of the Student Managed Fund is a particularly fitting way to  celebrate David’s legacy. “David always mentored young people, and he was an incredible teacher. He was such a gentle soul, in that sense. He demanded and expected more, but he was a great teacher and loved sharing his knowledge. He expected young people to strive and excel,” she says.

David’s love for discussion and ideas was infectious. His niece, Shebna Olsen, a wealth management professional with HSBC Securities, indicated that David “always talked to me like I was a peer. He constantly shared things with me; he was the best mentor I could ask for. Although he was a CFO, he would give all his knowledge away, if you were willing to talk with him.” As a son, brother, husband, father, uncle, and grandfather, David always encouraged those he loved to pay close attention to the world around them. He knew that understanding the broader world not only helped others make more informed financial decisions, but also helped one appreciate diversity and difference.

The Searfoss family looks forward to making the Student Managed Fund even stronger in the future. For example, both Cengiz and Shebna have expressed interest in strengthening the semester-long mentoring relationships between board members and students. Selma agrees that this mentoring reflects David’s spirit. “It’s important that we make sure students think about investments and finance with the highest levels of integrity, especially given the financial scandals of late. David had such incredible integrity, and that integrity is so important for our future business leaders to pass down to the next generation of investors,” she says.

In honoring her husband’s legacy, Selma hopes to set an example for future UConn alumni. “Giving to UConn is gratifying for us. I take it very seriously, for I feel it is our civic duty. Graduates gain so much, and it’s important for them to then give back. Our future generations need to see modeled for them the importance of giving back. I’m so delighted we are giving back to UConn. I enjoy passing the baton to young ones, and we all have to somehow be reaching out to the world.”

Cengiz also takes great pride in carrying out his father’s legacy. “I think my father would be over the moon with what has been accomplished with the Student Managed Fund. I think this program reflects so many of the values that he shared.
Investing was a passion that my father had, and I share that passion. With the Student Managed Fund, I feel that the students, the board members, and UConn’s faculty are all really rowing in the same direction, so to speak. It’s important to encourage these young minds to continue to think things through, to keep asking questions.”

   

This article first appeared in the UConn Business magazine, Volume 1, Issue 1 (Summer 2009)

Philip McDonald ’09 MBA earned his B.S. in International Finance and Commerce at Georgetown University and also studied at l’Institut d’Etudes Politiques in Strasbourg, France. He has held investment management positions with Prudential Capital Group in Chicago and London, and has been a CFA Charter Holder since 2003. Phil earned his MBA with concentrations in finance and venture consulting and was also lead Manager of Uconn’s MBA Student Managed Fund. He is currently working for The Hartford’s Business Technology Consulting group as a Senior Consultant.

In order to put this recession into perspective, loose comparisons have been made to historic crises, especially to The Great Depression. In comparison to previous downturns, this event provides not only an economic education but also an unprecedented opportunity to implement lasting reforms. We have learned the interdependence of real estate, capital markets, financial services, availability of credit, interest rates, unemployment, and general price levels during the last 24 months. We also now have the opportunity to identify ex ante individual behavior and systemic weaknesses that contributed to our current state of affairs. This information should be used to modify both.

However, change is neither universally positive nor successful in meeting its goal. In attempting to expedite a recovery, we risk forcing the metaphoric pendulum to swing too far from the exuberant excess of our recent past toward the asphyxiating effects of fearful retrenchment and misguided reform. An appropriate program will recognize that our responsibility is two-fold: to engage in more responsible individual behavior and to take a constructive role in driving appropriate systemic reform.

The sad truth is that our own behavior created this crisis. Wall Street did not engineer this meltdown without our assistance. Our spending, saving, and investing habits tested the limit of our ability to earn and the system’s ability to transparently allocate risk. We contributed to the untenable increase in real estate values, financed discretionary spending with temporarily cheap credit, and spent our incentive compensation before it was earned. Unfortunately, these decisions were based on unrealistic expectations, and the bill has come due. The price stability, full employment, and easy credit of our recent past are unlikely to reappear. Since markets are comprised of individuals, their psychological state plays a major role in their decision making. As a result, the road to recovery begins with appropriate individual perspective and personal financial accountability.

But to keep that pendulum from swinging too far in the wrong direction, we as individuals must decipher the appropriate level of spending, saving, and risk-taking; everything cannot be reduced to zero. Responsible spending to keep the neighborhood restaurant or store in business and continuing to contribute to our 401k will help our local economy and will allow us to finance a healthy and leisurely retirement. Similarly, our decisions at work must reflect the fact that our companies are, in fact, going concerns. Since there is an eye-watering amount of qualified, educated, creative talent on the sidelines, those of us fortunate enough to still be employed should embrace the opportunity to cherry-pick the next generation of leadership at a bargain. Many of these talented job-seekers hold degrees from UConn.

On a larger scale, each of us has the responsibility to prevent overzealous regulation from pushing the pendulum from swinging so far as to choke off American enterprising spirit and stable economic growth. A repeat of the Sarbanes-Oxley legislation should be avoided, as its good intentions have been eclipsed by additional, costly bureaucracy and reduced US competitiveness. After all, the primary goal of a bureaucracy is to justify and perpetuate its own existence, not to consider its own irrelevance. Individual intervention and oversight is imperative. Admittedly, there have been incredible frauds and failures that could have been mitigated by effective regulation. Our regulatory system, with its foundations in 1930s legislation, certainly reached its limits in managing the negative externalities of certain financial innovations. Reform is required. That said, the march of financial innovation must be allowed to continue. Over time, it has improved economic efficiency and our quality of life through consumption timing, risk management, and price discovery.

The global economy is more complex and interdependent than ever before. However, all markets are comprised of individuals whose behavior and decisions have an impact on the aggregate. This economic crisis amounts to a perfect storm that formed through a confluence of previously uncorrelated developments. The way we spend, save, and invest, how the government regulates these activities, and private sector financial services will likely change forever. Navigating this tempest as an individual is a frightening proposition. Through the aggregate benefit of constructive individual efforts, however, we will emerge more intelligent and stronger than before. In this quest, I cannot help but reflect on my grandparents’ generation, which rose up to conquer seemingly insurmountable challenges during the 1930s and 1940s. Time is of the essence, so let us please join together to slow the momentum of that pendulum. If successful we may  eventually earn our grandchildren’s reverence as America’s Second Greatest Generation.

   

This article first appeared in the UConn Business magazine, Volume 1, Issue  (Summer 2009)

Paul Speltz ’69, ’72 MBA has been an advisor on USA-China affairs to the White House under Presidents Carter, Reagan and Bush. In 2002, President Bush appointed him U.S. Executive Director to the Asian Development Bank. He is currently Chairman and CEO of Global Strategic Associates, LLC and Senior Advisor to Kissinger Associates, Inc. He joined the School of Business Hall of Fame in 1998 and serves on the School of Business Board of Advisors. 

While some might question the objectivity of a former member of the George W. Bush administration critiquing President Obama’s performance in his first 12 weeks in office, most friends and colleagues would describe me as a moderate Republican who, above all, can recognize that the current President has faced unprecedented challenges in the short time he has held his new position.

In short, I give the Obama administration generally good marks on its performance amidst these tumultuous times. What follows are my impressions of the White House’s responses across a range of sectors, some dealt with more favorably than others. Let us take a look at some of the realities that President Obama faced as he entered office, including areas which have received less coverage than others, and understand where he has led the country so far.

 

Inner Beltway Syndrome 

As the euphoria of winning the election has subsided for Obama, the President faces the reality of demands from countless groups, organizations, and individuals who believe that they were instrumental in the party winning the Presidency.

Despite President Obama’s repeated claims that he will not pander to special interests, he nonetheless immediately began facing the realities of favors granted and the expectation that those favors will be repaid in Washington DC, a.k.a. the “Inner Beltway Syndrome.” In the days and weeks following the election, his biggest internal task will be in taking the mantle of Democratic power from the Democratic members of the House and Senate, who held it for the prior eight years. Unfortunately, he has not been successful in accomplishing this.

The attitudes of Nancy Pelosi and Harry Reid have not been in sync with the President, as they clearly continue to try to establish and promote their own agenda on the Hill. These mixed signals and lack of coordination have led to the array of poorly planned economic bills coming to the floors. I would give the President a “B “ for his outreach to Republicans and special interest groups in his first few months, but I would give him a “D” in his ability to seize the leadership on the Hill from the very party that put him in power. This is not unusual in Washington, but President Obama must move to control the Hill quickly, or he will fail to enact the many programs that he has promised the American people.

 

The Cabinet

President Obama’s ability to select a Cabinet and Sub-Cabinet actually went quickly until he began bumping into the results of excessively stringent screening standards. For example, the administration added the vetting step of analyzing the computer hard drives of many of its candidates, a laborious and time-consuming step. However, it is important to look at past administrations and recognize that, even without these extra measures, many had not filled Cabinet and other top-tier positions, including Ambassadors, until the late spring and early summer following inauguration.

Given the public’s very high expectations of Obama in light of the economic crisis, there have been unrealistic demands for speed in filling top positions. However, despite Treasury and other agencies being well on their way to filling their ranks, the administration must assume some responsibility for the added layers of scrutiny which have delayed a number of critical appointments. I rate the President between a B and a C on this effort.

 

Economic First Aid 

The economic “solutions” we have seen from the White House have unfortunately been a series of haphazard measures which seek to place a Band-Aid on the wound as opposed to treating the underlying condition. The results have generated a great deal of volatility and “back-and-forthing” on problems facing the automobile industry, the banking sector, and now the pay and regulation of the financial sector as a whole.

Much of this can be explained by an anxious national and global public wanting the administration to do something, anything, very quickly to halt the economic free fall. However, many of the stellar scholars and economists the President has on staff maintain more of a focus on generating plans within the intellectual sanctity of academia; precious few have the extensive private sector experience to understand how such plans will play out in the harsh reality of the marketplace.

Much of the economic “planning” that has come out of the administration, while novel and sweeping and certainly worthy of praise in an academic journal, have an equal or greater potential for economic backfire as they do for turnaround.

While the economic problems we face have been caused by greed, arrogance, lack of accountability, and unrealistic hope for continued easy wealth across a number of administrations, there has been enough finger-pointing as to their root cause. The aim must now be to focus upon learning from past mistakes and applying reasonable regulations and oversight for the future, without choking the fundamental effectiveness of free market capitalism. As of today, there is hope that the US stock markets are testing the bottom. Only time will tell if this is unrealistic optimism. My belief is that we still have a long time before we see a turnaround, and we will not see significant upticks in economic indicators such as employment levels before 2010. For his very patchy performance in an admittedly tumultuous time, I give the President a “C” on the economy.

 

International Relations

In the area of international relations, I feel President Obama has done quite well, and I give him a grade of “B”. The public must remember that effective operation on the global stage does not simply mean foisting responsibility upon the Secretary of State. The President must set the agenda with input from the National Security Council, the State Department, and key advisors in the White House. He must then ensure that his agenda is carried out, and that there is a level of concord among the players.

Despite high expectation, President Obama’s approach to the G-20 meetings was genuine, and his other engagements in Europe thereafter have been well received as an American foreign policy that represents a willingness to listen and cooperate with other nations, rather than lecture them. This is refreshing. The approaches in Asia, although a bit confusing at times, were well received, and his approaches with Russia on further denuclearization are seen by many (myself included) as steps in the correct direction. North Korea will remain a headache for President Obama for a long time to come, and there is no quick solution – certainly not the military strike solution that Mr. Bolton and a few others might advocate. Our patient cooperation with Japan and South Korea on this issue is crucial, andwe must continue to ensure that China and Russia remain as parties to these negotiations.

 

Domestic Affairs

Regarding domestic affairs, this is not an area on which the President has had the luxury of spending a great deal of time yet, so I will refrain from proposing a grade. During these first 100 days or so, most Americans have appeared to be patient, as President Obama focuses on their most important concerns: their jobs, their lifestyles, and their heavily mortgaged homes. However, patience has its limits, and this honeymoon period will run short sooner than later. At that point, key members of the Obama team in the Departments of Health and Energy, to name a few, must begin demonstrating results to a heretofore intractable and difficult Congress. We can only wish them the best.

 

A Closing Note

President Obama has had his hands full with more demands in his first 100 days than any of his recent predecessors. He and his team at the Treasury must maintain focus on the economy and its global impact. In every country where I have travelled in the past few months, global financial leaders have expressed a desire for the United States to act decisively in enacting necessary financial reforms without leading the rest of the world down the path of protectionism and isolationism. We must also remain productively engaged with other key economic partners, particularly China, to ensure their understanding and cooperation as we look forward.

We will hopefully be able to accomplish this while winding down the conflict in Iraq, and adding much needed resources to Afghanistan without letting it turn into a quagmire we can little afford. This is to say nothing of the demands on the President provided by Sudan, Russia, Pakistan, Iran, emerging drug wars in Mexico, and the Global War on Terror, which will stay with us for generations to come.

These challenges, when added to the mix of domestic issues and priorities, add up to a President who will need all the luck and support we can summon for him, as his hair turns exceedingly white in the months to come.

   

This article first appeared in the UConn Business magazine, Volume 1, Issue 1 (Summer 2009)

We live in a world of brand names and registered trademarks. Each day we are confronted with dozens, if not hundreds, of products that have become household names: Coca Cola, IBM, Nike, just to name a few.

Companies jealously guard their branded products, spending vast sums to create, promote, and differentiate them. And many consumers respond to brands through a variety of complex behaviors, even identifying with some in a personal way (“I’m a Mac person”).

The concept of branding originated in the U.S. in the nineteenth century, but it has become firmly rooted throughout the developed world and is also a growing presence in emerging international markets, particularly in the budding global youth culture of the former Soviet bloc. As in the West, young urban consumers in Eastern Europe and Russia drive brand growth and awareness.

But what core meanings are attached to branded products, and are these meanings cross-national? What qualities or values does the global youth segment associate with brands? Are branded products better or more trusted than unbranded products? And do young consumers in Eastern Europe and Russia relate to brands in the same ways as their Western counterparts?

To answer these questions, UConn Marketing Professor Robin Coulter, working with Professor Yuliya Strizhakova of Rutgers University and Professor Linda Price of the University of Arizona, developed a scale to measure four dimensions of branded product meanings: quality, values, personal identity, and traditions. The results of their research can be invaluable for multinational firms seeking to design effective marketing campaigns aimed at young consumers in both developed and developing markets.

Coulter and her fellow researchers focused on college-educated consumers, aged 18 to 29, from the U.S., Ukraine, Romania and Russia. They chose this demographic for its high degree of homogeneity, which previous research indicated spans national and cultural boundaries. In fact, this global market segment appears to have more in common with each other, identifying with similar symbols and sharing aligned interests, than with their older countrymen.

Using a combination of research protocols, including indepth interviews, extant data, and surveys, Coulter and her team explored the complex reactions that these young consumers had to branded products generally, and to a variety of durable (automobiles and electronics) and non-durable (soft drinks and personal care) products. Their results revealed striking cross-national similarities.

For each national group, quality was the most important aspect of a branded product. This is perhaps not surprising because many internationally branded products have stressed quality and dependability as key selling points (Quality is Our Most Important Product – GE; Quality is Job 1 – Ford). Coulter’s research confirms that the global youth segment perceives quality as a key component of brand-name products.

In terms of how branded products help reinforce a sense of personal identity, Coulter and her colleagues discovered some interesting differences between the U.S. and the other national groups. In particular, branding as a signal of self identity, status, and group identity was more pronounced in the U.S. This finding is likely a consequence of more firms in the U.S. promoting the image of branded products, and the greater incidence of communities, such as Mac users, affiliated with particular brands. As firms begin to implement marketing campaigns focusing on personal identity issues in the developing countries, we are likely to witness consumers in these countries ascribing greater importance to this dimension of branded products.

The findings related to “values” suggest the possibility of different interpretations across countries. In the U.S. consumers indicated the importance of values related to socially responsible actions, whereas in developing countries, interpretations suggest that value may be linked to quality and price perceptions. Coulter and her colleagues suggest the need for  additional research to more systematically examine the various values associated with branded products.

Finally, the research reported that “tradition” was the least important meaning of branded products. Coulter and associates speculate that the low level of importance assigned to this category possibly signals that the global youth market, rather than following established traditions, may prefer to break with them, and also that consumers in developing countries have not had the time to establish ongoing traditions associated with specific brands.

This study provides evidence that brand awareness spans cultural and national boundaries, and is a powerful determinant in consumer behavior among the global youth market. Global marketing managers will find the scale developed by Coulter and her team to be a useful tool for developing successful international marketing efforts.

*Study cited in this brief: Strizhakova, Y., Coulter, R. and Price, L. “The Meanings of Branded Products: A Cross-national Scale Development and Meaning Assessment,” International Journal of Research in Marketing, vol. 25, no.2, pp.82-93.