WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION EXECUTIVE ADVISORY COMMITTEE Hiring Simon School Summer Associates… William E. Simon, WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION / WINTER 2000 Chairman …is the next best thing William Balderston III Harry Keefe to hiring our M.B.A.’s! Charles L. Bartlett Henry A. Kissinger O. T. Berkman Jr. William W. Lanigan, Esq. J. P. Bolduc Donald D. Lennox Paul A. Brands Jane Maas Andrew M. Carter Paul W. MacAvoy Richard G. Couch Louis L. Massaro Frank G. Creamer Jr. J. Richard Munro Ronald H. Fielding James Piereson Barry W. Florescue Robert E. Rich Jr. George J. Gillespie III, Esq. William D. Ryan James S. Gleason Leonard Schutzman Robert B. Goergen George J. Sella Jr. Paul S. Goldner Marilyn R. Seymann Bruce M. Greenwald J. Peter Simon Mark B. Grier William E. Simon Jr., Esq. Join the growing number of leading firms taking a General Alexander M. Haig Jr. Joel M. Stern closer look at what we’ve got to offer! Larry D. Horner Sir John M. Templeton Michael S. Joyce Ralph R. Whitney Jr. For more information, please call the Simon School Office of Career Services at 716-275-4881 David T. Kearns Joseph T. Willett William M. Kearns Jr. We are Committed to Your Success!
UNIVERSITY OF R OCHESTER ROCHESTER, NEW YORK 14627 SWIIM L LION A M E. GRADUATE SCHOOL OF BUSINE SS ADMINISTRATION Change Service Requested opportunity E-Commerce is changing the face of business, and Simon students will be well-equipped to meet the challenges.
SPECIAL FEATURE: DEAN CHARLES PLOSSER’S ECONOMIC FORECAST FOR 2000 simonbusiness William E. Simon Graduate School of Business Administration contents 3 Winter 2000
2 message from the dean
3 upfront Career Services Puts Customers First Strategic enhancements in the Simon School Career Services Office will improve recruiter and student satisfaction.
5 upfront 8 New Faculty Members Strengthen Overall Experience for Students Additions to teaching and research staff will add to Simon’s international reputation.
8 feature Simon Spirit Shines Brightly in Class of 2000 Simon Business profiles three Class of 2000 students who always strive for success.
16 cover story E-opportunity Although it will ultimately become an unremarkable part of the 16 business landscape, e-commerce is currently an extraordinary phenomenon that offers boundless opportunities. The Simon School is taking the lead in preparing managers to deal with this new technology.
22 feature Special Delivery An exclusive Simon Business interview with HomeGrocer.com CEO Mary Alice Taylor offers a behind-the-scenes look at a new dot.com company.
26 feature The Communications Carousel 22 Simon alumni answer the call in the ever-changing telecommunica- tions marketplace.
28 special report A “New Economy” for the Millennium? Dean Charles I. Plosser forecasts a strong economy for 2000 and takes issue with proponents of the “New Economy.”
26 DEAN: Charles I. Plosser A MESSAGE FROM THE DEAN UPFRONT
SENIOR ASSOCIATE DEAN FOR CORPORATE RELATIONS AND One of the most important charges of the ed seven students.” Prior to joining the INSTITUTIONAL ADVANCEMENT: Our cover story in this issue of Simon Business Career Simon School’s Career Services Office is its School, McGurn served as manager of Global Charles W. Miersch predicts that e-commerce will one day become as Services Puts ability to build long-term relationships with Strategic Staffing and Diversity for Bausch & ubiquitous as electricity. And while it is being SENIOR ASSOCIATE DEAN Customers recruiters, students and alumni. As such, the Lomb. She holds an M.B.A. degree, and in her FOR FACULTY AND RESEARCH: heralded by some as the ultimate revolution and office has changed dramatically in recent previous position managed Bausch & Lomb’s Ronald W. Hansen by others as simply the latest step along the path First months to deliver on initiatives designed to college relations program and recruited ASSOCIATE DEAN propel the School further into the ranks of the M.B.A.’s and interns at top U.S. graduate busi- FOR EXECUTIVE PROGRAMS: of technological progress, the Internet has —by Vicki Brown best business schools in the world. These ini- ness schools. She has held positions in human Richard M. Popovic already begun to redefine business on a scale tiatives are based on the recommendations of resources for the past 10 years and has a deep “Fast-Track” teams formed in 1998 to exam- commitment to serving customers. ASSOCIATE DEAN unimagined even five years ago. There is no FOR M.B.A. PROGRAMS: ine key areas of Simon (Admissions, Career In a recent interview McGurn said, “We’re doubt that its influence will be profound and Stacey R. Kole Services, Computing, Curriculum/Teaching, putting in place what we call the Five P’s of long lasting. Student Services, and Public Relations/Public Career Services.” For student audiences she CHAIRMAN, PH.D. PROGRAM: Ross L. Watts Our cover story explores some of the Affairs) with the goal of improving student and defines them as a partnership between Career opportunities—and obstacles—to be found on recruiter satisfaction. Services and students, helping students plan ASSISTANT DEAN The recommendations by the Career and prepare for the futures they imagine for FOR CAREER SERVICES: the new frontier of e-commerce. It will also tell Services Fast-Track team have resulted in a 50- themselves, and strengthening student presen- Lisa M. McGurn you how the Simon School is positioning its stu- percent increase in the office’s resources. As a tation skills. Finally, she stressed the impor- ASSISTANT DEAN dents to meet the management challenges created by this burgeoning new Internet tech- result, the Simon School has been able to initi- tance of punctuality because “you only get FOR INFORMATION TECHNOLOGIES: nology. We have joined a select few top business schools that offer a formal graduate one chance to make a great first impression.” Kevin Brennan However, she noted, the same 5P’s also define research and teaching program in Electronic Commerce. The Simon School’s concen- the way Career Services now approaches mar- ASSISTANT DEAN FOR M.B.A. “We’ve stepped-up the focus on ADMISSIONS AND ADMINISTRATION: tration is unique in that it delivers an integrated foundation in the three major compo- keting to corporations and recruiters, and the Pamela A. Black-Colton nents of e-commerce: marketing, information technology and economics, with a clear way it is working with Simon alumni to strengthen relations in the corporate commu- DIRECTOR OF OPERATIONS focus on the business process. Our concentration will teach Simon students how to customer satisfaction AND FINANCE: nity. Martha Every successfully set up and run electronic commerce for novel business models, including McGurn said the corporate relations both business-to-consumer and business-to-business settings. It’s safe to predict that e- group, which is “one distinct side” of her DIRECTOR OF PUBLIC AFFAIRS: and we’ve clearly added a George M. Tomczyk commerce—from its youth through industry maturity and beyond— will impact all of office, definitely thinks in terms of partnering with customers, being punctual, planning thor- our students regardless of their career choices. Taken by itself or with other concentra- DIRECTOR OF STUDENT SERVICES: oughly and paying attention to preparation Donna Lampen Smith tions, our new E-commerce initiative will enhance not only our students’ professional proactive marketing stance.” and presentation details. This group is man- skills and opportunities, but also their value added to employers. aged by Associate Director Nadia Bolalek and In this issue we’d also like to introduce 10 new Simon faculty members, who bring ate new programs designed to develop addi- seeks to turn key contacts at targeted corpora- tional recruiting opportunities for students. tions into Simon corporate partners. “We are EDITOR: a wide range of interests to the School. The recruitment, retention and development of Daniel Clifton Another Fast-Track team recommendation able to devote the appropriate degree of atten- a superior-quality faculty has always been one of our highest priorities, and we com- served as the catalyst for reorganizing the tion to the important details, allowing Career CONTRIBUTING WRITERS: Vicki Brown, Christina Le Beau pete vigorously with other top schools around the world for these exceptional people. Career Services Office into two groups report- Services to be more customer-focused than ever The Simon School’s success in attracting this number of outstanding scholars in one ing to the assistant dean. One group is con- before when serving recruiters,” continued ART DIRECTOR/DESIGNER: cerned solely with counseling and career educa- McGurn. “We are also strengthening our rela- Michael T. Johnson academic year is extremely significant—it testifies to our excellent reputation, and tion, while the second focuses solely on build- tionships with various Simon clubs. All of makes it possible for us to strengthen the depth and breadth of our academic offerings ing strong corporate relationships. these efforts will allow us to broaden and PRODUCTION MANAGER: “We’ve stepped up the focus on customer deepen our relationships in investment bank- Dawn S. McWilliams and research capabilities. Lisa M. McGurn, left, and satisfaction and we’ve clearly added a proac- ing, consulting, finance, marketing, e-com- Thank you for reading our magazine. I hope you will find it informative and enjoy- Nancy McCarthy ’00 CONTRIBUTING PHOTOGRAPHY: tive marketing stance,” says Charles W. merce and other areas.” Jan Regan, David L. Sanford able. Please feel free to share your comments and suggestions with us. Miersch, senior associate dean for corporate The objective, adds Miersch, “is that within relations and institutional advancement. the next couple of years, major firms on the SIMONBUSINESS, Vol. 15, Number 2 © 2000. Published semiannually by the University of Miersch calls the team in Career Services, School’s target list will consider Simon a recog- Rochester, William E. Simon Graduate School of which has been headed since September by a nizable brand.” Simon wants to end up some- Business Administration, Carol G. Simon Hall, Box 270100, Rochester, New York 14627-0100. new assistant dean, “the strongest team I’ve where on a continuum which includes the fol- seen in that office in my 20-year tenure at the lowing: Postmaster: Send address changes to the School.” • Corporate Partners understand and seek out William E. Simon Graduate School of Business Simon tapped Lisa M. McGurn as the new Administration, Carol G. Simon Hall, the unique value proposition the Simon assistant dean for Career Services because, Box 270100, University of Rochester, Rochester, M.B.A. affords our students. New York 14627-0100. Charles I. Plosser Miersch says, “she possesses a level of energy, aggressiveness and creativity that very positive- • As a result, the depth and breadth of career © 2000 William E. Simon Graduate School of Dean and John M. Olin Distinguished ly impressed an interviewing team that includ- opportunities continue to increase, spanning Business Administration, University of Rochester Professor of Economics and Public Policy
2 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 3 UPFRONT Firms That Recruited at Simon in 1998-99 UPFRONT
Finance & Investment Banking: AIG Capital Lomb; Bayer Corporation; British American New Faculty The ability of a business school to attract the most coveted and talented faculty Partners, Inc.; Bank of America;The Bank of Tobacco PLC; Canandaigua Brands; Clairol, Inc.; Eli Members members is an indication of not only the school’s internationally recognized repu- Montreal;The Bank of New York;The Bank of Lilly and Company; Kraft Foods, Inc.; Nabisco, Inc.; tation, but also the promise and potential of its students. This year, the Simon Nova Scotia; BankOne Corporation; Barclay’s Playtex Products, Inc.; Procter & Gamble Strengthen School has added nine new tenure-track faculty and one visiting research professor Capital; Bear, Stearns & Co., Inc.; Capital One Company; Reckitt & Coleman, Inc.; Merck & Overall Financial Group;The Chase Manhattan Bank; Company, Inc.; Pfizer, Inc.; Parke-Davis to its already peerless cadre of the brightest academic minds in the country. Citigroup, Inc.; Credit Suisse First Boston; Federal Experience “We have built what I consider an academic model where the free flow of Reserve Bank of New York; GE Capital Technology: Dell Computer Corporation; for Students ideas, research and teaching come together unlike any other institution in the Corporation; HSBC; Goldman Sachs & Co.; J.P. Hewlett-Packard Company; IBM Corp.; IBM country,” says Ronald W. Hansen, senior associate dean for faculty and research. Morgan & Co.; Lehman Brothers, Inc.; M&T Bank Global Services; Intel Corporation; Lucent “The addition of this number of scholars and researchers is a testament to that Corporation; MasterCard International Technologies; Microsoft Corporation; Oracle notion, and proof of Simon’s place among the top business schools in the world.” Corporation; Merrill Lynch; Mellon Bank; Moody’s Corporation; SAP America, Inc.; Sapient Investors Services; Morgan Stanley Dean Witter Corporation; Sun Microsystems, Inc.;Texas & Co.; Oppenheimer Funds, Inc.; PaineWebber Instruments, Inc.; Scitex Corp., Ltd.; Silicon Rui Albuquerque “Great Career Incorporated; Prudential Securities; Salomon Graphics Assistant Professor of Finance Smith Barney; State Street Bank & Trust Services Office!,” Company; Stern Stewart & Co.; U.S. Bancorp; U.S. Telecommunications: AT&T; Bell South Current research and interests: Optimal financial strategies and industry dynamics. He is also interested in analyzing how the lack of commitment produces contractual arrangements that lead to Office of Management & Budget; National City Corporation; Global Crossing, Ltd. wrote Edward M. financial constraints, and in understanding the implications of capital market imperfections to the Corporation;TIAA-CREF; Putnam; Prudential behavior of the aggregate economy. Securities; RJ Steichen & Co. Manufacturing: Allied Signal; Cutler-Hammer; Nadworny, VP Honors: Kaplan Award for the best graduate student of the Department of Economics, University Carrier Corporation; E.I. Dupont De Nemours of Rochester. of American Consulting: American Management Systems, and Company; Eastman Kodak Company; Ford Inc.; Andersen Consulting; Arthur Andersen & Co. Motor Company; General Chemical Corporation; Background: Lecturer for the Portuguese Catholic University in Lisbon, and a research assistant at the Research Center of the Bank of Portugal. Management LLP; Booz Allen & Hamilton, Inc.;The Boston General Motors Corporation; ITT Industries, Inc.; Consulting Group; Deloitte & Touche LLP; Diablo Pratt & Whitney; Praxair, Inc.; Monsanto Education: B.A. (magna cum laude) in Economics from Portuguese Catholic University and an Systems, Inc., after Management Group; Ernst & Young LLP; KPMG Company; Royal Dutch/Shell Group; United M.A. and Ph.D. in Economics from the University of Rochester. Peat Marwick; Lake West Group; McKinsey & Technologies; US Steel; Xerox Corporation a recent recruiting Company, Inc.; Mercer Management Consulting; Elizabeth A. Demers PricewaterhouseCoopersLLP Other: Biomedical Insights, Inc.; Disney’s Wide Assistant Professor of Accounting trip. “I’ve gone World of Sports, Inc.; Northwest Airlines; Pike; Consumer Packaged Goods: Bausch & Wegmans Food Markets, Inc. Current research and interests: Corporate equity valuations and risk management activities in the to a number of property-casualty insurance industry, and the valuation of Internet stocks. Demers is also interested in incentive issues and executive compensation. schools over the Background: Prior to completing her Ph.D. in Business Administration at Stanford University, Demers practiced as a Chartered Accountant specializing in business valuations and litigation years—this staff a wide range of firms and functional areas have two dedicated counselors and each accounting in Toronto. to meet the diverse needs of our students. counselor now follows a class of students for Education: B.A. (with honors) and an M.Acc in Accounting from the University of Waterloo and is the best.” two years,” said McGurn. “This model • Simon targets firms to either recruit on an M.S. in Statistics and Ph.D. in Business Administration from Stanford University. works best for the student and allows the campus, post positions and accept résumés, counselor to partner with students to help and/or provide a designated contact person them become knowledgeable about their tar- for students regarding their interests. get industry, stay focused, and be more effec- Paul B. Ellickson “We want to be on that continuum,” says tive.” Assistant Professor of Economics and Management Miersch. “In fact, we want to be at best, rec- She concluded: “I am pleased with all that Current research and interests: Ellickson is exploring the impact of quality-enhancing endoge- ognized as a top provider of service, value is happening. We have engaged more faculty nous sunk costs on competition and market structure in the supermarket industry. and quality by our corporate partners and members in Career Services activities. They students.” are working with recruiters which bridges the Background: Presently conducting research concerned with identifying complements between orga- McGurn stated that the counseling and gap between the classroom and the board- nizational and technological investments and assessing their impact on both performance and entry career education group, which is headed by room. Alumni are very complimentary of the decisions. Ellickson is broadly interested in the economics of organizations. Associate Director Angela Petrucco, not only changes at Simon and they are highly sup- Education: B.A. in Economics and Mathematics at the University of California at Berkeley and is a adheres to the five P’s but is also structured portive of the Fast-Track initiatives. It’s excit- Ph.D. candidate in Economics at the Massachusetts Institute of Technology. differently than it has been in the past. “We ing to see.” SB
4 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 5 UPFRONT
Christopher S. Jones Nils Rudi Assistant Professor of Finance Assistant Professor of Operations Management Current research and interests: His research and teaching interests are in the area of empirical Current research and interests: Operations management with overlap to information systems and asset pricing, and his dissertation concerned the creation and application of new statistical methods marketing. Recently, he has been focusing on supply chain management and how one can use dif- for analyzing problems in fixed income and derivatives pricing. Jones’s current research examines ferent methods (e.g. variety postponement, real options and incentive structures) to reduce the the factors underlying stock market volatility and their impact on derivatives pricing. demand uncertainty. Background: Jones worked for several years in research at the Federal Reserve Board of Gov- Background: AfterRudi workedhigh school, for three Rudi years worked as a for computer three years programmer as a computer at Movex programmer (Enterprise at Movex ernors. (EnterpriseResource Planning Resource Systems). Planning He Systems). then formed He then Minard, formed specializing Minard, specializingin decision supportin decision systems support for systemsforecasting for andforecasting inventory. and Minardinventory. went Minard public wenton the public Oslo onStock the ExchangeOslo Stock (Norway) Exchange in (Norway) 1996. Education: B.S. (with honors) in Mathematical Economics from Pomona College and a Ph.D. from in 1996. the University of Pennsylvania. Education: B.S. degree in Computer Science at Molde College and a Ph.D. candidate in Operations ManagementEducation: B.S. at the degree University in Computer of Pennsylvania. Science at Molde College and a Ph.D. candidate in Operations Management at the University of Pennsylvania. Arthur G. Kraft Assistant Professor of Accounting Charles E.Wasley Current research and interests: Kraft is broadly interested in the effects of financial disclosures Visiting Research Associate Professor of Accounting for two academic years on capital market participants and security prices, the credibility of voluntary disclosure mechanisms and corporate governance. His current research explores the predictability of future returns based Current research and interests: Corporate financial reporting and analysis area. Wasley’s other on currently available information and the factors underlying the trade decisions of mutual fund research interests are the role of accounting information in capital markets, management earnings managers. forecasts, voluntary disclosure and security market microstructure, accounting disclosures and stock return behavior, executive compensation and incentives, and corporate governance. Background: A C.P.A. in the state of Illinois, he worked in the Derivatives and Structured Finance Department at Arthur Andersen (New York). Honors: He is the recipient of an Ernst and Young Doctoral Fellowship. Education: B.B.A. and M.Acc degrees in Accounting from the University of Michigan, and is an Background: Wasley was a faculty member at Washington University in St. Louis and the M.B.A. and Ph.D. candidate at the University of Chicago. University of Iowa (on leave). Education: B.S. and M.S. degrees in Accounting from the State University of New York at Binghamton and a Ph.D. in Accounting from the University of Iowa. Sanjog R. Misra Assistant Professor of Marketing Shuang (Joanna) Wu Current research and interests: Theoretical and empirical investigation of sales force compensa- Assistant Professor of Accounting tion design. In particular, Misra examines the impact of various marketing variables and decisions on the compensation scheme. In addition, Misra is interested in the econometric analysis of discrete Current research and interests: Wu is conducting research on the stock market and the behavior and qualitative data, from both frequentist and Bayesian perspectives. of its participants, analysts forecasts, capital markets and earnings analysis. Background: Misra worked as an associate consultant for a Microsoft solution provider. He is Honors: 1997 Consortium Fellow for the American Accounting Association Doctoral Consortium. currently working on various research projects with Fortune 500 companies such as Xerox Background: A C.P.A. since 1997, her teaching interests are in financial and managerial accounting Corporation and Lucent Technologies with the aim of helping them design more efficient sales com- and she taught for two years at Tulane University while completing her thesis. Her dissertation is pensation plans. entitled “Financial Analysts Understanding of the Seasonal Patterns in Quarterly Earnings and Its Education: B.A. in Economics from Ravenshaw College in India, an M.B.A. in Marketing from Implications for Market Efficiency.” FSM in New Delhi, India and an M.S. in Statistics and Ph.D. in Marketing from the State University Education: B.A. in International Economics from Beijing University, and an M.A. in Economics of New York at Buffalo. and Ph.D. in Accounting, both from Tulane University. SB
Erwan Morellec Assistant Professor of Finance Current research and interests: Corporate finance. His current research includes the valuation of corporate securities, capital structure choices and capital budgeting under uncertainty. Background: Prior to joining the Simon faculty, Morellec taught finance in France and in Lebanon. He has also served as a consultant to Paribas Corporate Finance for the implementation of real options models and the valuation of international projects. Education: B.A. in Business Administration from CERAM, an M.A. in Finance from Sorbonne University and a Ph.D. in Finance from HEC School of Management, all in France.
6 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 7 FEATURE
Class of 2000
Simon Spirit Shines Brightly in Class of 2000
It’s talked about in job forums and resonates at career fairs and recruiting trips. The
Simon School spirit is alive and well, and runs not only throughout the corridors of
Schlegel Hall, but also through those of international business. As the Simon commu-
nity looks forward to celebrating the achievements of the Class of 2000, we profile three
students who have dedicated themselves to personal and professional success by main-
taining a sense of responsibility to family and community. By conquering challenges
and overcoming obstacles, these students truly exemplify the Simon School spirit.
8 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 9 FEATURE
Class of 2000
Irvyne Jean-Baptiste “It was my most challenging professional experience.”
Obtaining an education—not to mention food and Typically, she would walk at least one—and sometimes even water—is a struggle for the majority of her home- as many as four—hours before she would even reach a land’s population. That’s why Irvyne Jean-Baptiste township because roads were in such poor condition. thinks of herself as privileged. Growing up in Port-of- Her most ambitious challenge was outfitting Haiti Prince, Haiti, not only did she have a house and clean with more than 300 new schools on a budget of just water, but she had the added luxury of attending pri- over a million dollars. “I was most proud of this vate schools and being raised by a family that taught accomplishment. As a Haitian woman, I think it was her solid values. my most challenging professional experience,” Irvyne After graduating with a bachelor’s degree in civil says with pride. In less than three years, Irvyne and her engineering from Faculte des Sciences in Haiti, Irvyne team of four coordinators accomplished this daunting served more than three years at SNEP, a government task. organization that provides portable water. But it was While at FAES, Irvyne realized that many agencies at her next job where Irvyne would realize a higher were willing to invest in Haiti for relief aid. Armed calling. with that strong technical savvy and an innate ability In 1995, she was appointed project coordinator at to get the job done, Irvyne turned her attention to a firm called FAES, designed to provide economic and assisting Haiti in its quest for more funding. In order social assistance to the underprivileged in Haiti. “We for her to be most effective, she decided to round out built water systems, irrigation systems, bridges and her skill-set by obtaining a business degree. roads, things that are really essential for life,” she says. With little money she applied for a scholarship— “It was here that I discovered that maybe I could make setting her sights on America, where she hoped to a difference.” study at a top business school. Today, this finance and Working with people in remote areas of Haiti, accounting major, William K. Fulbright scholar and Irvyne describes instances where she would have liked Simon School Class of 2000 candidate has her sights to have been equipped with a psychology degree. set on working in an international agency where she “Sometimes we had to convince them we were there to can work to encourage organizations to invest in her help,” she adds. “They saw that we were more privi- homeland. leged than they, and would not trust us. They would Education, food, water—Irvyne Jean-Baptiste will think, ‘Why would you want to help me?’” not be satisfied until the people of Haiti can consider Often, common transportation methods were not themselves privileged too. an option when traveling to the villages she helped.
10 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 11 FEATURE
Class of 2000
Deniz Tunca “It’s in me to work.”
From counting papers and pennies in a corner news- direct-mail campaigns for the business. The perpetual stand to counting his blessings everyday, Deniz Tunca smile on his face widens as he recalls the 70-hour work realized early in life on the streets of Brooklyn, N.Y., weeks he used to endure. That’s the true essence of that if you want anything you have to work for it. Deniz Tunca—his lust for life and his will to succeed. One of four children of Turkish immigrants, Deniz The newspapers he sold as a youngster became a began honing his entrepreneurial skills at the young lightning rod in his search for a top business school. age of 13. Strapping on his shoes at 5:30 in the morn- He says he selected the Simon School after investigat- ing, he arrived at a newsstand to assemble the weekend ing numerous programs in all sorts of publications and newspapers and open the shop for business. At noon, finding an article in Computerworld magazine that he would return home to help take care of his family, ranked the Simon School’s Computers and which included an older brother who is mentally hand- Information Systems area 14th among the top 25 icapped. It was in his home where Deniz learned the “techno-M.B.A.” programs in the United States in value of work and the meaning of life. “Anytime you 1998. “And then after my first recruiting visit, I knew can wake up and walk and do your daily routine is a I just had to be here!” he exclaims. great day—it really is,” says Deniz. The same work ethic Deniz exhibited as a wide- Due to his strong family bonds, Deniz stayed close eyed 13-year-old continues today at the Simon School. to home for college, graduating from a prestigious From being the writer, director and main presenter in undergraduate business school in Manhattan. He a cultural seminar for students on Turkey, to helping eventually found himself working as a compensation his team place second in a Simon Marketing Case manager at Lord & Taylor by day, and by night found- Competition, to serving as president of the School’s ing “The Original Song Company,” a music produc- student volunteer Simon Ambassador program, Deniz tion house writing songs for personalized occasions has made a lasting impression. such as weddings. After a successful summer internship at Lucent “It’s in me to work,” adds Deniz. “During my Technologies Inc., this High-Tech Management League lunch break, I would get my messages and return (HTML) club member and Simon Class of 2000 can- phone calls. Then after work, I conducted business as didate has his sights set on a marketing position with a I needed. I was always thinking about marketing high-tech firm. “I’ve narrowed my focus and know strategies and what marketing campaigns I needed to exactly what I want to do,” says Deniz. put together.” From counting papers and pennies, to counting on Deniz executed successful Internet and market a bright future, Deniz is living proof that a strong work research, ad design, telemarketing, advertising and ethic pays off.
12 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 13 FEATURE
Class of 2000
Joab Tjiungwanara “I realized I had so much.”
As the old cliché goes, don’t judge a book by its cover. later, he was hired as a sales associate for the compa- Never is this more evident than when you look at Joab ny, and eventually worked his way up to sales manag- Tjiungwanara. You could probably guess his back- er and information technology director. Joab finished ground, but you would only have just begun to know his MSc. in electrical engineering while working full- this Simon School Class of 2000 student. time, and became a German citizen in 1998. A native of Medan, Indonesia—in what he The thought of his family back home was never far describes as a “Chinese colony”—Joab was born one from his mind. And after the untimely death of his of two children of Chinese immigrants. He graduated father, Joab took it upon himself to fund his sister’s third out of 600 in his high school class, but decided to college education. “I wanted her to have the same pursue his college education in Germany, leaving his opportunities I did,” Joab says proudly. “This was not family and friends behind. a sacrifice—it was my family.” “To leave everything I knew was the hardest deci- While traveling extensively throughout Europe, sion I ever made, but I had to take that risk,” he says America and Asia for Henry Lamotte, Joab finally got with his head bowed. “My parents instilled a work the chance to visit the country about which he had ethic in our family that continues to drive me today. I heard so many stories from his parents. China was as needed to leave for myself, and for my family.” So beautiful as they portrayed it, and he spent more than without any money, a place to stay, or a command of two weeks with his cousins and an uncle in Fujian. the German language, Joab set out to make those he Before returning to Germany, he would give his loved proud by becoming the first college graduate in cousins enough money to start a motorcycle and refrig- his immediate family. erator repair shop. He recalls, “I realized I had so In Germany, Joab attended a local school to learn much. This was my way of helping them become more the German language. He then went on to study elec- economically independent.” trical engineering at the University of Bremen while With a wife and daughter at home, and his first son working part-time at a local Chinese restaurant. After on the way, Joab looks forward to the journey his fam- only two years in Germany, Joab set out to leverage his ily will take after completing his M.B.A. He is looking knowledge in engineering, his expertise in multiple lan- forward to sharing the many chapters of his life with guages and his background in diverse cultures, to begin them. “I want to give them a strong basis for their his search for work. future and make them children of the world, where After researching several companies, Joab contact- they can live and prosper in many different countries ed Henry Lamotte, a $70 million German importer. and cultures,” he says. Because if there is one thing his Joab pitched the company on the idea of selling goods past experiences have taught him, it is that there is to Chinese restaurants and wholesalers. Three weeks nothing more sacred than family. SB
(Continued on page 17)
14 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 15 COVER story
opportunity —by Christina Le Beau We are only a split-second after the Big-Bang
here will come a time when e-com- really gets me excited about this field is three hours at the grocery store every Research, Inc., a technology research Tmerce is as ubiquitous as electricity, I can see how it can truly change a per- Saturday”—does electronic banking, firm in Cambridge, Mass. Within when the mention of the word barely son’s life.” His own included. manages his photos online, and shops two years that number had nearly registers in our collective conscience. Douaire recently left a post as sen- the Web for gifts to be sent to friends quadrupled. Forrester now estimates But it’s not that time yet. ior vice president of interactive market- and relatives around the country. that about 40 million households are Call it e-commerce, e-business or ing for Peapod, Inc., a Chicago-based “Words don’t adequately describe the connected to the Internet, a census any number of terms used to describe pioneer in online grocery shopping. changes e-commerce has made in my expected to reach 60 million by 2003. this oh-so-versatile way of doing busi- His new job is in Rochester, N.Y., as life.” Even if no more people were to sign ness. Rarely has one word held the general manager of Internet marketing It’s been barely five years since e- on—and observers do believe Web power to conjure up concepts of busi- for photo giant Eastman Kodak commerce debuted in its most literal consumers will max out at a certain ness, even life, well beyond what we Company. Yet Douaire is a single dad sense—with businesses opening retail percentage of the overall popula- George Douaire know now. As long as that’s the case, to three school-age kids, so a move shops on the Web. And since then the tion—that is a huge potential market. commerce on the Internet is a frontier wasn’t in the cards. Now Douaire concept has swelled in potential, as Of even greater importance is the bur- in the shaping. “Gutenberg might be a travels to Rochester a couple of times a businesses devise ever more innova- geoning business-to-business sector, good place to start,” George Douaire week, telecommuting from Chicago the tive ways of using the Internet to mar- which, while slower in coming to the says when asked whether there’s any rest of the days, and taking advantage ket and sell products, link with sup- Web, moves far greater amounts of business innovation that compares in of the latest in e-commerce to better pliers and distributors, and provide money. scope to e-commerce. The e-commerce juggle the demands of home and work. customer service. In 1994, fewer than As quickly as e-commerce is grow- executive is only half-joking: “This is a He uses Peapod to order all his gro- 6 million households were connected ing, however, and despite the breath- huge fundamental shift...the thing that ceries online—“That, versus spending to the Internet, according to Forrester less observations of pundits and e-
16 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 17 COVER story
crazy investors and analysts, the real as it starts to crest. “We feel the mar- projected e-commerce revenues growth—what Forrester calls “hyper- ket has grown beyond the embryonic Forrester Research, Inc.
growth”—won’t begin until late 2000. Marcia Robinson stage and that there is now a significant
Forrester estimates that business-to- demand for our students,” explains Business-to-BUSINESS in BILLIONS of dollars consumer revenues will grow from Abraham Seidmann, Xerox Professor 2003 $20.25 billion in 1999 to $38.75 bil- of Computers and Information Systems Bookmark It 2002 lion in 2000, a whopping 91 percent and Operations Management at the increase. After that revenues are —by Daniel Clifton Simon School. “And being a School 2001 expected to crank each year, reaching Marcia Robinson ’96 has co-authored a book with Ravi Kalakota which prides itself on teaching funda- 2000 $143.75 billion in 2003. If those num- entitled e-Business: Roadmap for Success. In it they discuss how mentals, we waited for the theory base 1999 bers are impressive, then the projec- businesses should execute e-commerce tactics and techniques in an to be solid enough so that we can teach tions for business-to-business revenues effort to better position them for competition on the Internet. By analyzing case stud- our students the foundations of elec- $100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 are staggering. From 1999 to 2000, ies from e-businesses such as Amazon.com, Cisco and E*Trade, Robinson and tronic commerce.” That means a cur- revenues are expected to jump from Kalakota offer step-by-step guidance in selecting and implementing strategies for suc- riculum that combines marketing, $109.3 billion to $251.1 billion, a 130 cess. information technology and economics, Business-to-CONSUMER percent increase. By 2003, business-to- “The managerial challenge in e-business is the ability to quickly translate strategy and has courses heavy on fieldwork, in BILLIONS of dollars business revenues are predicted to top into execution,” says Robinson. “To succeed at this, managers must have a sound case studies and other real-world appli- 2003 $1.33 trillion. “No one company has understanding of technology and business. This understanding must be backed by an cations. Versatility and adaptability 2002 entrepreneurial spirit that is not afraid of risk. From my M.B.A. experience, Simon’s built an unassailable citadel yet,” will be stressed by “a strong core facul- 2001 writes Forrester president George mix of courses fits the needs of the next generation e-business manager quite well.” ty” already immersed in e-commerce An excerpt from the book reads, “As the digital age progresses, companies must 2000 Colony in a recent column for the com- research, adds Seidmann, who’s also react more quickly to customer needs, bring products to market with greater speed and pany’s Web site. “Land that’s been area coordinator for computers and 1999 respond more completely to changing business conditions. The ability to manage ‘conquered’ by the Yahoo!s, Amazon’s information systems at the School. information is a prerequisite for success. To manage information transparently, organ- $10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 and eBay’s can be recaptured and That means, for instance, that the izations need an e-business blueprint—an approach that allows them to build on exist- shared.” ing technology to create efficient, integrated applications that collect, manage, organize Marketing on the Internet course (one Adds Marcia Robinson ’96, who and disseminate information throughout an enterprise. Ultimately, the effectiveness of of two cornerstone courses, the other runs an e-business consulting firm in an e-business blueprint depends on how managers use it and how well it fits into the being Managing Electronic Commerce) Web-based company as it is for a Business Strategies with Ravi Kalakota, Atlanta and has co-authored a book on day-to-day processes and culture of a will be taught by someone from infor- bricks-and-mortar venture. “Every a former Simon School faculty member. the subject (see sidebar at right): “E- company.” mation systems. And the School is company out there is recognizing the “There are very few people who under- commerce is changing the way every As president of e-Business developing relationships with industry: need for an e-business strategy, and stand what e-business is and who business operates today. It’s incredibly Strategies, a leading edge e-commerce It paired with Citigroup in February they’re struggling to find people to help understand what you have to do to be exciting. … There’s just incredible consulting and research practice, her 1999 to hold a seminal conference on them do that,” says Robinson, who successful at it.” opportunity for everyone out there.” expertise is in the emerging area of electronic banking, has swapped strate- worked at Frontier Corp., EDS and Those who do, win. Here’s a look That means a high demand for people “Satisfying the e-Customer.” This gy with American Management SunTrust Banks, Inc. before starting e- at what they’ll be facing. skilled in the multiple disciplines that builds on her prior experience in Systems, Inc. and is developing an converge in e-commerce. Technical Customer Relationship Management industrial advisory board for the E- know-how is going for a premium, yes, and service delivery. commerce concentration. Plus a Xerox but just as important are the people Prior to e-Business Strategies, she Corporation employee teaches one of Not by the who can assess where the technology was an assistant vice president at the School’s information-systems cours- fits in the larger business strategy. That SunTrust Bank. She was responsible es. Such a focused approach, Internet Alone takes business savvy—and then some. for strategic initiatives such as Seidmann notes, “allows students to The e-businesses generating the most “Enthusiasm and a willingness to learn, rethinking the retail banking delivery look at the forest rather than be over- hype are those that exist solely on the change and adapt,” says Kodak’s infrastructure and designing an inte- whelmed by the number of trees grow- grated multi-channel architecture. Web—Amazon.com and eToys are just Douaire. “That’s an attitude more ing around.” She was also instrumental in the two examples—but many observers than a skill.” It’s a distinction that can determine design and implementation of the believe the future of e-commerce It’s in this climate that the Simon fortunes in an industry still young yet cross-sell and retention applications. belongs not to Internet-only companies, School has launched an E-commerce maturing to the point where the word but to those that combine channels: the concentration, catching the wave just “Web” alone is no guarantee of fund- Web with mail-order with phone-order ing. Investors have been buoyed by with bricks-and-mortar operations. It’s Paul Krause the promise so evident in the Web, what the GartnerGroup, a Stamford, Half of all business-to-business Web sites belong to manufacturers or distributors; hoping their pick is the next big thing. Conn., consulting firm, calls incorpo- While that excitement remains palpa- rating the “rest of the alphabet, includ- one in four are business-service providers; and one in four are retailers ble, saner heads are starting to prevail. ing the “e.” “I am skeptical of most That means the foundation, the whole businesses with an Internet-only strate- focused on business clients. Source: ActivMedia business plan, must be as solid for a gy,” agrees Paul Krause ’94, vice presi-
18 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 19 COVER story
nearly impossible to compete, since dent for publishing and operations at Wall Street does not reward hybrid Ziff-Davis Education, Inc., a training bricks-and-mortar/e-commerce com- E-bits provider and publisher based in panies with high multiples. … Unless Rochester, N.Y. ZD Education was the they turn that into an advantage—for • Nearly half of all Web first, in 1996, to offer interactive, self- which the consumer is willing to pay sites are profitable, and directed tutorials online, Krause says. a higher price—the pure e-commerce another one in four That, in tandem with its instructor-led companies will win.” online training, now makes up the Which is what Lisa Sharples is expect to be profitable 2 company’s fastest-growing business. counting on. Sharples co-founded within 12 months. “There’s a lot of hype surrounding Garden.com, the Austin, Texas-based Robert Fraser Lisa Sharples Internet businesses, and I think that venture that has captured all sorts of • The average Web site many times people just get caught up in attention, including a lengthy feature invests $37,000 in site the Internet and how cool it is,” Krause in the August (1999) issue of Inc. development, with maintains. “I see e-commerce as sim- magazine. “We have built all of our media/portal sites and ply another tool, or another variable, systems around the Internet, so we to be considered in managing the busi- can be much more proactive and business-to-business ness.” quick to change things.” sites investing upwards An existing infrastructure, tested of $78,000 and distribution networks and multiple rev- $68,000, respectively.2 enue streams—making sure that none investments online.” Kodak’s Douaire Then Again… The Bottom Line cannibalizes another—are but a few of points to Dell Computer Corp. • The number of visible the reasons for using combined chan- “They’re doing inventory management All of the above noted, the fact remains Whether Web-only or not, the suc- nels. In fact, ActivMedia, a research as well as customer interaction.” that some Web-based businesses are cessful e-commerce ventures share business domains firm in Peterborough, N.H., reports In a multichannel world, business- doing well, some of them very well. two common threads: First, none of soared to 720,000 in that four of five retail Web sites have es—those that deal with consumers, The most successful sites are those that, them goes it alone. Amazon, for early 1999, up from offline business counterparts. But put- anyway—also can capitalize on varia- as the GartnerGroup reports, cast a instance, sells untold books through 411,000 in 1998.2 ting up a Web site is no guarantee of tions in shopping habits, adds Robert wide net by bringing together buyers links at other sites. And Kodak and success. “Existing businesses have just Fraser, CEO of NetSales, Inc., an e- and sellers. That includes auction sites America Online have teamed to offer • U.S. online ad spend- begun to consider the impact of the commerce outsourcing company based like eBay, online brokerages like “You’ve Got Pictures.” Second, they ing is expected to grow Internet and how they should react.” in Overland Park, Kan. Among E*Trade, and “portal advertising mag- know customer service shouldn’t lag says Krause. “Their e-commerce strate- NetSales’ clients: Xerox Corporation, nets” like Yahoo! and America Online. just because it’s cyberspace. That from its current $2.8 gy outlines how they will reposition or The Weather Channel, Ingram Micro, Also hot are the “category killers” like means making the sites easy to navi- billion to $22 billion by change their business model in response The Christian Broadcasting Network Amazon.com—valued highly even gate and ensuring links do what 2004.3 to a new set of rules. … I think the and Net Nanny Software International, though it has yet to make a profit—and they’re supposed to do. One study of biggest opportunities are for existing Inc. “Commodity items—items which Garden.com, which raised more than 10 top retail sites by Creative Good, Sources: 1PricewaterhouseCoopers 2 3 companies to use the Internet to make are selected primarily based on price— $50 million before it even went public, Inc., a Manhattan e-commerce con- LLP, ActivMedia and Forrester Research it easier for customers to do business will be sold predominately online,” easily doubling that amount after trad- sulting firm, found that 39 percent of with them: provide more information Fraser says, noting an accompanying ing started in September. Competitors attempts to buy something failed and about products, provide access to increase in “hybrid shopping,” meaning are out there, particularly in Amazon’s 56 percent of search attempts failed. accounts, provide for online ordering customers go into a store to make a case, but for the time being these are Not exactly conducive to making You really want to create a destina- and order status, etc.” Who’s doing selection, then go online to find the the charmed ones. “Bricks-and-mortar money. tion. … One person in a focus group that now? Stockbrokers, Krause says. best price. “Items which must be can be a huge advantage or a huge Also on the customer-savvy list is said it took her two days to design “Individuals can now trade stocks, touched, tasted, smelled, etc., will con- boat anchor. Take your pick,” says the concept of “community,” meaning her garden with a CD-ROM and two review their portfolio and research tinue to be sold through local outlets.” NetSales’ Fraser. “Financially it can be a site has to offer more than just months to find all the plants, so that’s products to buy. Take Garden.com: where the garden-design software It offers gardening advice, chats, per- came from. You can design, then sonalized online gardening journals, push a button and buy.” Of 802 global CEO’s attending the 1999 World Economic reminder services, even garden-design In the end, though, after all this software, all for the price of your talk of fundamental shifts and Christina Le Beau, a freelance journalist Forum in Davos, Switzerland, 39 percent predicted that, in name and address. “When we wrote groundbreaking technology and our initial business plan, it was all improved customer service, let’s just living in Rochester, N.Y., has written about commerce,” says Sharples, the be honest about the attraction of e- for Gannett newspapers nationwide. the next five years, more than 10 percent of their company’s company’s chief marketing and mer- commerce. Just ask Kodak’s George chandising officer, “but we realized Douaire. “It’s fun to feel like a pio- She also writes for FamilyPC and 1 that the ultimate experience online is neer,” Douaire says. “No, not to feel revenues would come from electronic business. about a lot more than selling stuff. like a pioneer, but to be a pioneer.” SB Woman’s Day magazines.
20 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 21 FEATURE Special Delivery A Cyber Chat With HomeGrocer.com Chairman and CEO Mary Alice Taylor
In the golden days of yesteryear, men who were dressed in crisply-pressed uniforms delivered milk to doorsteps. Today, in the information age, a fleet of trucks delivering entire orders of groceries is just a mouse click away. Are consumers ready to shop for groceries online? Bellevue, Wash.-based HomeGrocer.com has bet the store on it—literally. Backed by investors including Amazon.com, the Barksdale Group, Hummer Winblad Venture Partners and more, the company provides consumers with the ability and convenience of selecting grocery items via the Internet. It also recently hired a Fortune 500 executive to head its opera- tions and expansion plans, and was recently named one of 1999’s “Top 12 Cool Companies” by Fortune magazine. The recent appointment of Mary Alice Taylor as chairman and CEO solidifies the company’s manage- ment as it looks to aggressively expand its delivery and infrastructure systems. She was most recently cor- porate executive vice president of Global Operations and Technology at Citigroup, and previously spent more than 16 years with Federal Express Corporation. As she begins her tenure at HomeGrocer.com, Simon Business had the opportunity to “chat” with Ms. Taylor about her company, her transition into a leadership role in a dot.com environment, and her views on the value she places on graduates with an e-commerce background.
After working at Fortune 500 companies, what thinker—something every company needs whether attracted you to the job as chairman and CEO of it’s a dot.com or not. Action and execution are the HomeGrocer.com? real differentiation at the end of the day. Because e-commerce is nothing short of a revolution. It’s changing the way we will do business in the future. Since your appointment in September, And, HomeGrocer.com is changing the way we shop for what do you see as the strengths of our families. To be part of this revolution is the most HomeGrocer.com? What do you still need exciting thing I can think of. to work on to really be successful? HomeGrocer.com is the nation’s fastest growing How has your previous work experience online grocer. In the three markets we now reach, helped prepare you for a job in the we have a reputation for supreme customer service dot.com environment? and top quality products. The goal will be to repli- Throughout the nearly 17 years I was at Fed cate this in the 20 locations where we intend to Ex and three years spent at Citigroup, I open during the next year. We will stay our course, amassed substantial experience in logistical and let the customer drive us to make the right operations, delivery and aggressive nation- decisions. al expansions. Throughout my 30-year career, I’ve also held positions at Shell What are some of the fundamental differ- Oil, Northern Telecom and Cook ences that you see running an Internet Industries. While this experience start-up? is invaluable, all my professional The biggest difference is time. Everything is on positions have taught me to turbo-charge! Acting quickly and decisively is be a strategic and critical important everywhere, but nowhere as important
22 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 23 FEATURE FEATURE
as in the e-commerce world. Because of the nature of the ferent from the traditional brick-and mortar-management of Simon’s A rich blend of cultural diversity paired with drive and Internet, companies must move fast in order to capture mar- inventory, people and facilities. The brick-and-mortar-stores Class ket share. This creates an opportunity to move quickly and will find it challenging to serve both the online and offline ambition prepares this class for the new millennium! make an immediate, positive impact on a changing industry. grocery customer. Maintaining both physical storefronts as of 2001: There is no road map to guide e-commerce companies well as an online presence is extremely complex. Inherent within the Simon School M.B.A. pro- The total full-time M.B.A. Class represents 44 because much of what we’re doing has never been done gram are countless opportunities and reward- countries. Over 60 percent of Class of 2001 before. The staff we have, and are continuing to build, are You are currently offering services in five mar- ing challenges. The full-time M.B.A. Class of students are bilingual, with a large number more than meeting the demands of Internet time. kets, what is your plan going forward into 2000? 2001 has added to Simon’s vibrant learning fluent in three or four languages. They have Expansion during 2000 will encompass an additional 20 environment through its mix of backgrounds, earned undergraduate degrees at institutions How do you, or will you, differentiate yourselves or so service markets. cultures, professional experiences, and person- ranging from Duke University to Pontifical from competitors such as Webvan.com, al interests and goals. Class members include Catholic University of Sao Paulo. Such an Peapod.com and NetGrocer.com? Some of your competitors are either pub- accomplished athletes, entrepreneurs, profes- enriched class coupled with Simon’s world- The customer will create that differentiation. licly traded companies or on the verge. Is sional dancers, lawyers and even a bridge class faculty and academic excellence can only In our plan, the customer defines the there a timetable for HomeGrocer.com to designer! Thirty-eight percent of the full-time spell success in the new millennium! See the model. go public? M.B.A. Class of 2001 hail from outside the charts below for more information. SB We have a fully integrated busi- We are always keeping in touch with the public and U.S., representing over 40 different countries. ness model that allows for rapid private markets and will do what is right for our national rollout and a low-capital customers and shareholders. intensity. Our research has shown Class Characteristics Undergraduate Majors that our multiple warehouse models Increasingly, top business schools allow us to better serve our cus- are offering e-commerce degrees Enrolled 220 Economics 19% tomers. In addition, our approach and certificates. What type of Humanities 10% ensures consistent food quality and value do you place on an M.B.A. U.S. Minority Students 21% timely delivery. We’ve empowered graduate with an e-commerce back- Social Sciences 9% our personal shoppers to pick the ground? Have you had the opportu- •African-American 11% Business and Commerce 30% best quality produce for our cus- nity to hire any yet? •Asian-American 6% Engineering 16% tomers versus relying on automation do We certainly do have a number of employ- •Hispanic-American 4% the job for us. ees here at HomeGrocer.com with M.B.A.’s, Math and Science 16% We pride ourselves on offering the freshest but I don’t believe any with a specific e- International Students 38% perishables, as well as a broad selection of non- commerce emphasis. perishables. We stock more than 13,000 items in The world of e-commerce and the new Average Age 29 GMAT Distribution our own warehouses, which are then delivered, in economy is evolving and changing the our own fleet of tri-temperature trucks. face of future business quickly. It is cer- Age Range 21-45 GRE takers 3% One of the most important things that differenti- tainly a unique and distinct commercial Average GMAT 647 Countries Represented 40 ate HomeGrocer.com is our delivery people. We arena and those who can develop an Average TOEFL 625 bring groceries right to our customers’ kitchen understanding of this new arena will come Undergraduate Institutions 125 counters. We get to know their kids, and will even put the to us with an extra arrow in their quiver that can’t help but be 40 lb. bag of dog food in the garage for them. an advantage to their future growth. I support this type of Male 86% educational emphasis. 700+ What are some of the obstacles you see for the Female 14% company and how will you overcome them? Do you think consumers are ready to purchase 600 While in today’s market, attracting and retaining top tal- groceries over the Net? ent is an obstacle for most companies, we’ve found that the You bet they are! We’re already finding that consumers culture and dynamics at play at HomeGrocer.com make us think that pushing a mouse is a lot easier than pushing a Work Experience 500 a highly sought-after employer. We must manage growth to shopping cart! New Graduates 3% retain that feeling and to be able to sustain that appeal as According to Forrester Research, the online grocery 400 we enter new areas of the country. industry is expected to grow 101 percent annually in the 1 Year 3.8% Real estate can also be challenging because we seek next five years: compare this to the 22 percent projected for 2+ Years 93% 300 superior geographic locations that allow for efficient opera- online book industry. Based on this research, we definitely Average Years Work Experience 5.7 tions. see strong growth for this industry. 200 Can the business model of warehouses and How do you want the average online shopper to Undergraduate G.P.A. trucks be duplicated by traditional brick and view HomeGrocer.com? 100 600-690 700+
mortar supermarkets? Do you see this happen- Simply put: As the best and most trusted online grocer 500-590 ing anytime soon? in the country. We want the consumer clamoring for our Average 3.15 Not easily, nor quickly. The online approach is very dif- service into their homes across the country! SB Middle 80% 2.8 - 3.5 % 16% 16% 68%
24 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 25 FEATURE nications traffic is growing nearly 600 percent per year domestically, and international traffic is doubling roughly every 100 days. “We will be able to service customers throughout the world by running a data pipe directly into at the their businesses,” he said. In the event’s keynote address, John Major, CEO of Wireless Knowledge, said his company is focused on the Conference convergence of wireless communications access and infor- mation technology. The company’s vision is to extend the “Having recently started a telecom company with several reach of corporate collaborative software, offering secure other Simon School alumni, I rely heavily on the analytical access to productivity and information services for an air- approaches to business opportunities that were empha- link- and device-independent end-to-end solution based on sized at the Simon School. The Simon School has pro- existing Internet and computing standards. “Wireless and vided me with a foundation of thought processes and skill Internet are two of the fastest growing markets in the Communications world,” he stated. “We will combine them both to change sets that have enabled me to identify, evaluate and imple- life as we know it forever.” ment ideas and opportunities, from both a micro and How did the transition from a monopolistic industry to macro perspective, in a rapidly growing and changing Carousel a competitive free-for-all happen? It all began innocently marketplace.” enough three years ago with the implementation of the Phil Yawman ’89 Telecommunications Act of 1996. The Federal Senior Vice President of Marketing and Communications Commission intended the act to elicit Business Development first-time competition for monopoly services such as local Choice One Communications and long distance access. Although it has not yet had its intended effects, competition has been accelerated by “next-generation” carriers lined by deep-pocketed backers “Working at an e-commerce research firm demands that anxious to enter the fray. I analyze the latest business trends. The education I So, how does a company, regardless of size, compete for a piece of the hundreds of billions of dollars up for grabs received from the Simon School prepared me to analyze in the global long distance communications market? the business models and strategic plans of the industries Round and Carriers have implemented sound strategic marketing ini- we follow by grounding my analysis in quantitative theory tiatives, targeted business plans to serve niche markets, and and fundamental economics.” round it goes... acquired the technology and personnel to better position Frank Lallos ’93 themselves in the marketplace. Senior Financial Services Analyst Gomez.com where it stops “Wireless and Internet are two of “More than ever, successful technology implementation to nobody quite support business goals depends on being able to meas- the fastest growing ure progress and apply corrective action where neces- sary. The Simon School’s analytical focus and quantitative yet knows. markets in the world,” approach provided me a more metrics-oriented basis for technology planning and deployment.” For instance, large carriers such as AT&T and Timothy Smith ’88 It’s safe to say there has never been a more fronting the marketplace is what form will the MCIWorldCom promise cost-savings among other things. Executive Vice President volatile yet exciting time in the communica- technology of the future take. Will voice be We’ve all seen the intense consumer advertising campaigns X/Net Associates, Inc. tions industry. The marketplace has experi- transmitted via digital subscriber line (DSL) touting the single-cent long distance minute, and we have enced a century’s worth of change in just the technology, satellites, cable television lines or all been inundated with telemarketing calls promising these last five years thanks to the combination of over the Internet? A host of competitors, large savings. “The Simon School exposed me to the importance of megamergers, historic legislation, the Internet and small, old and new, are competing for your On the other hand, mid-sized carriers such as Qwest information technology and data accessibility to a busi- and e-commerce. telecom business, and they all feel they can Communications, Global Crossing Ltd., Level 3 At the cusp of this revolution are Simon serve your needs. Communications and Williams Communications target ness’ success. As a result, it helped me identify and clarify School graduates, increasingly more evident by “Our plan is to sell the movement and man- business customers with bundled solutions on one bill. the direction I wanted my career to go. Today, I run my the number of telecommunications executives agement of information, not content,” pro- Then there are the regional niche players that target own information systems consulting business which focus- attending—and presenting—at the School’s claimed Martin McCue ’96, senior vice presi- small- and medium-sized business customers, competing on es on making information technology a natural part of Annual Alumni Conference, held this past dent and general counsel of Global Crossing service and support. Phil Yawman ’89, senior vice presi- the way people do business.” September. From equipment and software pro- Ltd., at the alumni conference. dent of marketing and business development at Choice Francesca Koron ’90 ducers to global and regional communications Global Crossing is set to leverage the band- One Communications, commented at the conference that Managing Principal providers, Simon alumni are shaping the future width associated with the buildout of its he will rely on the size of his company to better and more Lionsgait Solutions Group of this fast-growing industry. uniquely-designed, seamless intercontinental quickly serve its customers. “We will not only compete on One of the most important questions con- network. McCue stated that domestic commu- price, but our ability to quickly serve the needs of our cus- (Continued on page 32)
26 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 27 SPECIAL feature a radical restructuring that is making us more advances temporarily raise productivity growth efficient.” Another writer speaks of a “tectonic rates and the results are a higher level of pro- upheaval...tearing the old laws of wealth ductivity, but without ongoing innovations and apart.” Still other commentators talk about advances in new areas and sectors, the overall new forms of entrepreneurship and enterprise. rate of growth will likely slow. The implication is that we are seeing something It is important to remember that a techno- A "New Economy" for that we have never seen before and thus all the logical revolution is not an economic revolu- old rules and established economic ways of tion. Just because microchips can make the thinking no longer apply. What these “vision- processing of information faster and our access the Millennium? aries” are seeing is what we have seen over and to it quicker, does not mean that it will domi- over again since the start of the industrial revo- nate the economy. What makes an economy lution. The march of technological progress is run—and run productively—is not producing Dean Charles Plosser’s Economic Forecast for 2000 not a smooth one. Waves of invention and dis- vast quantities of things that are cheap, but covery burst onto the economic landscape lead- producing things that are highly valued by peo- ing to new ways of doing business. We see ple. Moreover, once something is cheap to pro- The 20th century is certain to end on a strong economic note. entire industries disappear, more efficient pro- duce, competition drives the selling price down, duction processes, and new and improved then economic resources flow to where the Real economic growth will average just under 4.0 percent per products unimagined only a few years before. opportunities are greater. That is the nature of year over the last four years while inflation and unemployment This was the case in Manchester, England, economic growth. in the 1830’s where the future was emerging What does this view of economic history will close out the century at their lowest levels in decades. Even from the factories and textile mills. It was the tells us about the future? It suggests that there more encouraging is that productivity growth has also been same after the discovery of oil and the industri- will continue to be productivity gains in certain al development that made use of it. It followed leading sectors of the economy but over time above the average of the previous two decades. To some the invention of the automobile and Henry the productivity growth will diminish and observers there is a strong belief that this resurgence in produc- Ford’s perfection of the Model-T through resources will seek other opportunities in exist- tivity growth marks the end of the “productivity slowdown” assembly line efficiencies, which was ultimately ing or as yet unimagined sectors of the econo- bested in the market by Alfred Sloan’s ability to my. For example, the telecommunications that has plagued so many industrialized countries since 1973. achieve mass customization to give buyers industry is often cited as one of the prime The most enthusiastic proponents speak of a “new economy” more of what they wanted. It was apparent examples of a “new economy” industry. Yet it when technology made possible the cheap gen- is certainly not a new industry. Its roots date driven by information technology that is reshaping the way eration of electricity and when Cable and back at least to the telegraph (and arguably to Plosser, who is also John every industry produces goods and services. This technological revolution, the Wireless figured out how to insulate underwa- the printing press), with key technological M. Olin Distinguished reasoning goes, will inevitably result in a sustained increase in productivity ter telegraph cables. It followed the develop- innovations periodically taking it to a new Professor of Economics and ment of the transistor, the discovery of antibi- level: Bell’s creation of the telephone, Public Policy at the Simon growth in every corner of the economy and perhaps a new “golden age.” otics, and more recently the biotech revolution. Marconi’s wireless telegraph, and now mobile School, has lectured on the economy to academic and In each of these instances, a sector of the phones, digital satellite technology, fiberoptic business audiences world- The enthusiasm is not without some justifica- Figure 1 plots nonfarm business productivi- economy became a veritable engine of econom- cable and so forth. Each has contributed to wide. For the past 20 years, tion. Between 1973 and 1995, real gross ty as computed by the Bureau of Labor ic growth. Productivity increases typically fol- new growth and productivity within this old his forecasts have rivaled the domestic product (GDP) averaged 2.55 percent Statistics. The changes in the growth rates are lowed the technological advances as individuals industry. accuracy of prominent con- and the mean for inflation 5.04 percent, while readily apparent. The more difficult question is figured out how to provide new and improved Now let’s take a closer look at the nature of sulting services and frequent- ly cited surveys. He is a labor productivity growth managed just 1.45 whether this trend will be sustained in the products and services that were highly valued the productivity gains that we have experienced member of the Shadow Open percent per year. In the 15 quarters starting in future. in the marketplace. As the highest valued uses during the last few years and see if we can Market Committee—a group 1996 through the 3rd quarter of 1999, real While there is good reason for optimism were exploited, new uses and newer products determine if there is evidence of the broad of internationally known growth has averaged 3.79 percent, inflation about the future of the economy and productiv- appeared but had less value and thus lower based impact on productivity as claimed by economists who regularly 1.46 percent and productivity growth 2.56 per- ity growth, neither the data nor economic theo- comment on U.S. economic productive efficiency. many of the “new economy” advocates. policy. cent. Table 1 highlights these changing trends. ry support a strong case that the recent What this means is that technological The behavior of productivity in the post- In addition to the econom- From 1949 through 1972 productivity grew at rebound is likely sustainable for the long haul. war era is a well-known story. Following a ic outlook in Rochester, in an average annual rate of 2.84 percent. Thus it It is also true that many of the proponents of period of vigorous productivity growth in the January Plosser presented his would appear that the performance of the past the “new economy,” like anyone trying to gain 1950’s and 60’s, the U.S., and most other forecast in London and three years brings us about three-quarters of attention and sell a supposedly novel point of Switzerland, and in industrialized countries, experienced a marked Amsterdam, where he has the way back to the productivity growth rate view, have somewhat oversold its novelty and slowdown beginning in about 1973. The rea- addressed the Dutch business that existed before the “slowdown.” made a number of errors regarding its implica- son for the slowdown continues to be a topic community annually as a tions for monetary and fiscal policy. of debate. Figure 2 shows the productivity guest of the American Table 1 What exactly is “new” about this “new index for several broad sectors of the economy. Chamber of Commerce in the Netherlands since 1991. Economic Performance economy”? The most strident advocates speak It is obvious from this plot that the greatest of the sheer speed of technological progress in The Annual Economic 1973-79 1980-95 1996-99 productivity gains have been in the manufac- Outlook was co-sponsored the semiconductor and related businesses and ture of durable goods and the least in the more Real GDP 2.94% 2.39% 3.79% by the Simon School, the how information technology, computers and broad-based nonfarm business sector. Greater Rochester Metro Productivity 1.34 1.50 2.56 high-speed networks are, according to one Table 2 summarizes the growth rates over Chamber of Commerce and Chase Manhattan Bank. Inflation 7.38 4.02 1.46 writer, “undermining the old order...leading to various periods. The slowdown is apparent in Figure 1
28 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 29 SPECIAL feature matic productivity gains in the manufacture of SPECIAL feature percentage points then we are only talking computer hardware. There is no evidence of about a 1.0 to 1.5 percentage-point reduction accelerating productivity in other durable in inflation rates. We already have difficulty goods industries. Moreover, there is an actual measuring inflation within this range of accura- slowdown in the growth rate of nondurable cy. To offset this potential reduction by allow- goods manufacturing. ing the money supply to grow faster implies Thus, despite the appearance of an upturn changes in the rate of growth of money in the in productivity growth for the economy as a neighborhood of 1 to 2 percentage points in whole, it is largely confined to one small manu- the long run. It is difficult to think in terms of facturing sector that has experienced dramatic this degree of fine-tuning when the money sup- efficiency gains and falling prices. There is lit- ply growth can vary within the year as much as tle evidence to support the claim that comput- 6 to 10 percentage points. Figure 2 ers, network and information technologies have As regards to fiscal policy, higher long-term Figure 3 led to a broad-based resurgence in productivity growth could be beneficial to the budget situa- all sectors. The annual productivity growth as claimed by some advocates of the “new tion. Indeed, if real growth were sufficiently look for the fourth quarter is positive. Despite “ I remain opti- from 1973-89 was 1.0 to 1.5 percent below economy” paradigm. high, we could grow our way out of the Social the expected and justified increases in rates that experienced in the period between 1960 to Let me hasten to point out that technologi- Security crisis, at least in principle. This would engineered by the Federal Reserve, the econo- mistic about the 1973. For the 1990’s, manufacturing produc- cal advances are clearly changing the way busi- be a dangerous strategy. In the first place, the my is currently running on all cylinders and tivity appears to have improved substantially. nesses function and communicate and we all higher long-term growth is far from being should end the year on a strong note. prospects new This is particularly true in the durable goods face the difficult challenges and opportunities assured and secondly, the political process can Looking into 2000 (see Figure 4), I antici- technology industry. afforded to us by these new innovations. But not necessarily be counted on to use the extra pate that growth will moderate somewhat There has been work by several economists, economic growth is messy. It is typified by tax revenues in a responsible manner. Thus, it toward more sustainable rates, but 4th quarter brings for most notably Robert Gordon at Northwestern spurts in productivity sometimes confined to a would be very dangerous, in my opinion, to use to 4th quarter growth should still exceed 3 per- University, that breaks down the durable goods limited set of sectors of the economy. “new economy” arguments to deny a Social cent. Exports will rebound as the rest of the improved long- manufacturing sector into the manufacture of Innovation is important, but it does not Security problem or to greatly expand project- world continues to recover from the slowdown computer hardware and all other durable man- mean that we have eliminated the business ed budget surpluses. in the emerging economies of Asia and South run productivity. ufacturing. What they have discovered is that cycle or that the underlying trend in productivi- America. This will lead to a gradually shrink- productivity growth in the manufacture of ty is changed for the indefinite future. Nor ing trade deficit for the U.S. Whether its computer hardware has accelerated dramatical- does it mean that the laws of economics have Speaking of trade, the recent fiasco in Seattle is a sad statement of the extent to which impact will be ly. Between 1972 and 1995, it is estimated that been repealed. I remain optimistic about the Economic productivity growth in this area has averaged prospects new technology brings for improved short-run political expediency may have grave large or small in 17.8 percent per year. Even more astonishing, long-run productivity. Whether its impact will Outlook long-run consequences. The desire of the however, is that it has averaged 41 percent per be large or small in productivity or value-added “I do not see the Now let’s turn our attention to the outlook for developed countries, and the U.S. in particular, productivity or year since 1996. The noncomputer sector, on terms remains to be seen. The promise seems the U.S. economy. As I always try to do, I’d to link labor practices and environmental prac- the other hand, has shown no acceleration in still in the future. makings of a like to start by reviewing the current year and tices to trade policy was a thinly veiled exercise value-added productivity growth in the last three years, Let me briefly add one additional observa- evaluating my forecasts of last year. in protectionism that pitted the wealthy nations growing at just 1.82 percent per year. This is tion about the “new economy.” It is sometimes recession in the 1999 has been another good year. It has against the developing economies of the world that desperately wish to pull themselves out of terms remains roughly equivalent to the 1.88 percent per year argued that a new higher rate of productivity U.S. in 2000. turned out to be better than most forecasters average experienced from 1972-95. has important implications for monetary policy. anticipated at this time last year. If you recall, poverty. It put at risk many of the achieve- to be seen. The Computer hardware represents a very small The idea is that the Federal Reserve can be last year at this time the Asian crisis was the ments of the WTO and scuttled for now any However, I do chance of expanding the opportunities for trade promise seems fraction of manufacturing. All of durable more generous with liquidity and easier on major story in the news. The Federal Reserve goods manufacturing only makes up for about interest rates because the underlying long-run not believe that had lowered interest rates three times in the fall and addressing important issues yet to be still in the 12 percent of the GDP. It has been estimated rate of growth is now higher than it used to be. of last year to reassure financial markets. resolved. that computer and related hardware manufac- To some extent this argument is true in the we have seen Brazil was fervently denying that it would Back to the economy. I do not see the mak- ings of a recession in the U.S. in 2000. How- future.” turing accounts for less than 2 percent of GDP. sense that faster real growth reduces inflation the end of devalue its currency and many articles were What this means is that almost all of the for a given monetary policy. But this is a rela- being written on the dire consequences for the ever, I do not believe that we have seen the end acceleration in productivity growth we have tively minor issue. If long run productivity recessions, U.S. of a Brazilian devaluation. Of course, it of recessions, despite the rosy near-term out- witnessed in the last few years stems from dra- growth is really moved higher by 1.0 to 1.5 was apparent to many, including myself, that despite the Brazil would eventually have to devalue, and in Table 2 February it did. Some forecasters were predict- rosy near-term ing a recession, but most were predicting a very Productivity Growth by Sector slow year in 1999 primarily due to the turmoil Average Annual Growth Rates outlook.” overseas. 1960-72 1973-82 1983-89 1990-95 1996-99 My talk last year explained why I thought Nonfarm Business 2.91% 1.14% 1.80% 1.57% 2.56% that the crises would not have a significant impact on the U.S. economy except for a Nonfinancial Corp. 2.52 1.25 2.04 2.11 3.38 widening trade deficit. That forecast turned Manufacturing 3.16 2.04 2.66 3.31 4.40 out to be largely correct. In fact, the economy Durables 3.51 2.02 3.11 4.17 6.45 ended up performing quite well. (see Figure 3) Nondurables 2.94 1.73 1.93 2.33 2.06 Turning to the future, the short-term out- Figure 4
30 SIMONBUSINESS / Winter 2000 SIMONBUSINESS / Winter 2000 31 SPECIAL feature
In Memory of Henry P. Epstein 1935-2000
Henry P. Epstein, a 1980 graduate of the Simon School’s Executive Figure 5 Figure 6 Figure 7 Development Program and a member of Beta Gamma Sigma, passed away on January 6, 2000. Mr. Epstein was an alumnus who combined look. Unlike some of the more ardent productivity growth. You can’t really innovative business achievement with outstanding service to his com- believers in the “new economy,” there have it both ways. munity and humanity. will be one and it will come about In truth, more rapid real growth In 1970, Mr. Epstein and a partner, Roger Freidlander (University through some combination of bad luck caused by productivity increase does of Rochester ’56), bought the office supply division of a Rochester or bad policy. I just can’t tell when it act to reduce inflation for a given mon- company. Within five years, their success enabled them to purchase the will come. etary policy. While the strong produc- office furniture division of that same company. From an original $1.8 The unemployment rate is at its tivity gains in recent years of 1-1.5 per- million in sales, their company—Spectrum Office Products— grew into lowest point since 1973. Without a cent greater than in recent history have a regional firm with offices in nine cities, nearly 400 employees, and much, much slower economy, I see the helped subdue inflation by about 1 per- annual sales in excess of $55 million. The partners subsequently sold labor market remaining tight acting to cent or so, it cannot be counted on as a Spectrum to Staples, a leading national office supplier, where Mr. keep the unemployment rate in the 4- long-term solution to inflation risk. Figure 8 Epstein served as senior vice president until his retirement. 4.5 percent range for 2000, as indicat- These productivity gains are likely to With his wife, Mr. Epstein maintained an active involvement in ed in Figure 5. be temporary as I argued earlier, and increase during the coming year. (See industry, community and charitable organizations. In 1993, he was Despite the popular but wrong- thus it will continue to fall to monetary Figure 7) If the Federal Reserve is suc- presented with the “Torch of Liberty” award from the Anti- headed wisdom that more rapid real policy to ensure a stable price level. cessful in this effort, I cannot see any Defamation League, the world’s largest organization fighting anti- economic growth causes inflation, price The Federal Reserve has now reason to expect long-term rates to Semitism, prejudice and bigotry. In 1988, he received the “Spirit of increases have remained modest during reversed the interest rate cuts of last fall make any big moves. Life Award” from the National Office Products Council for the City of 1999. This should not be interpreted as I said they would do. This was Overall, 2000 appears to be a year Hope’s California Medical Center, where a Henry P. Epstein Fellowship as evidence that inflation is dead. (See clearly necessary. But unless monetary of moderate to strong growth, low was established. City of Hope is an institution where biomedical scien- Figure 6) Sometimes the same people growth slows substantially after the inflation and low unemployment. (See tists and physicians are conducting research to defeat killer diseases. arguing that rapid real growth causes first of the year, the Fed may have to Figure 8) What better way to ring in In October 1998, the Simon School announced the establishment of inflation will argue that inflation has raise rates again. Thus, short-term the new millennium? SB the Louise and Henry Epstein Professorship in Business Administration, been kept under control by the strong rates will likely experience a slight endowed by a major contribution from Mr. Epstein and his wife, Louise. At that time, Mr. Epstein commented that the Simon School was in large part responsible for the way in which he approached “both business and human problems,” and expressed the hope that Carousel (Continued from page 27) Mrs. Epstein’s and his gift would “help the Simon School continue to educate managers who are extraordinarily equipped—and inclined—to tomers by offering a best-of-breed, per- infancy, allows carriers to transmit “If you look out five years from deal with business and societal issues at all levels.” The Epstein sonalized customer service.” voice over Internet Protocol (IP) much now, who are the potential competitors Professorship is currently held by Professor Clifford W. Smith Jr. A recent rash of mergers has further more cheaply than traditional analog for the consumer market?,” asked In a tribute, Simon School Dean Charles I. Plosser described Mr. muddied the competitive landscape. voice services. There is also a battle Arunas Chesonis ’91, Chairman and Epstein as an exemplary industry leader, executive, entrepreneur and The scorecard reads like a who’s who brewing over supplying customers with CEO of PaeTec Communications, a philanthropist. “Henry Epstein’s life and accomplishments,” Plosser of top players—WorldCom acquired dial-up and dedicated Internet access, national integrated communications said,” will serve as a reminder and benchmark of the qualities that our MCI and more recently Sprint, AT&T as it has become a must-have for all provider. “You’ve got the cable guy, School strives to instill in all of its students.” purchased TCI and Media One, Bell businesses. the incumbent (phone company) and Mr. Epstein is survived by his wife, Louise; sons and daughters-in- Atlantic bought GTE, Global Crossing All of these tactics—cut-throat pric- the wireless guy. It’s a race.” law, Geoffrey and Linda, Steven, Neil and Laurie; grandchildren, and Frontier merged, and Qwest joined ing, increased competition, consolida- The telecommunications industry Johnathan, Janet and Isabelle; aunt, Bess Cohen, and mother-in-law, forces with US West. tion of phone and television, and the has all the bells, lights and whistles of Bess Whittaker. And finally, researchers cannot continued evolution of the Internet— one wild carousel ride. Ready to hop measure quickly enough the effect the promise that the telecom market will onboard? SB Internet is having on the industry. continue the trend of constant change Internet telephony, although in its well into the next millennium.
32 SIMONBUSINESS / Winter 2000 WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION EXECUTIVE ADVISORY COMMITTEE Hiring Simon School Summer Associates… William E. Simon, WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION / WINTER 2000 Chairman …is the next best thing William Balderston III Harry Keefe to hiring our M.B.A.’s! Charles L. Bartlett Henry A. Kissinger O. T. Berkman Jr. William W. Lanigan, Esq. J. P. Bolduc Donald D. Lennox Paul A. Brands Jane Maas Andrew M. Carter Paul W. MacAvoy Richard G. Couch Louis L. Massaro Frank G. Creamer Jr. J. Richard Munro Ronald H. Fielding James Piereson Barry W. Florescue Robert E. Rich Jr. George J. Gillespie III, Esq. William D. Ryan James S. Gleason Leonard Schutzman Robert B. Goergen George J. Sella Jr. Paul S. Goldner Marilyn R. Seymann Bruce M. Greenwald J. Peter Simon Mark B. Grier William E. Simon Jr., Esq. Join the growing number of leading firms taking a General Alexander M. Haig Jr. Joel M. Stern closer look at what we’ve got to offer! Larry D. Horner Sir John M. Templeton Michael S. Joyce Ralph R. Whitney Jr. For more information, please call the Simon School Office of Career Services at 716-275-4881 David T. Kearns Joseph T. Willett William M. Kearns Jr. We are Committed to Your Success!
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SPECIAL FEATURE: DEAN CHARLES PLOSSER’S ECONOMIC FORECAST FOR 2000