The Lauder Institute: The First Five Years

The Joseph H. Lauder Institute of Management and International Studies was founded in October, 1983 through the vision and generosity of Penn alumni Leonard Lauder W'54 and Ronald Lauder W '65. The 10 million dollar gift honored their late father, Joseph H. Lauder, co- founder of Estee Lauder Inc. "Joseph Lauder used to tell his sons that he was concerned about the lack of education available for Americans conducting business overseas. He perceived that Americans were at a disadvantage in the international marketplace because so often they knew little or nothing about the language, culture, and customs of the country with which they were dealing." To meet this challenge, the Institute was established by the Wharton School and the School of Arts and Sciences. A faculty council which reported to the Provost, Tom Ehrlich, and was chaired by the Insti- tute's founding Director, Professor Jerry Wind, was formed. The Council, with the assistance of the two deans and the Board of Governors, estab- lished the Institute's mission, goals and strategies. These goals were: " to develop a program that will prepare future business leaders who can operate comfortably and effectively in a language and cultural environment other than their own: " to attract to the Institute the best and brightest students who combine a commit- ment to international business with a Renaissance perspective: " to find the best placement for these students and thus enhance and improve the internationaliiation of the corporate community: " to establish close links between the program and the international business community: " to stimulate the international orientation, research and teaching of the faculty: " to serve as a model for the internationalization of management education. As the Institute celebrates its first five year anniversary, we can proudly point to the attainment of our original objectives: the Institute's dual degree MBA MA program educates Americans and students from other countries about the prob- lems, prospects of and approaches for doing business in the changing global economy. Overall, the purpose of this report is to delineate our specific achievements and to assess the impact the Institute has had on students, faculty, and the business community. We conclude by identifying some of the future challenges facing the Institute.

The Lauder Institute At the specialized level, students elect a The Institute's innovative language and University of Pennsylvania Wharton major (e.g finance, marketing, culture program focuses on cultural under- and indi- and as well as Suite 3001 Steinberg Hall/Dietrich Hall strategy, operations management, standing sensitivity the achieve- vidualized majors) in order to a ment of 3620 Locust Walk develop superior language proficiency. functional specialty. Individualized majors The Lauder program begins in late May. Philadelphia, PA 19104-6368 allow students to design programs tailored After three weeks of campus coursework, (215) 898-1215 to their individual needs. Popular individual- students spend the remainder of their first ized majors include entrepreneurship/fi- summer in Beijing, China; Caracas, Venezuela; Goal: To prepare future business nance and entrepreneurship/marketing. Moscow, Russia; Munich, Germany; Paris, France; leaders who can operate effectively Each major requires in-depth knowledge Philadelphia, the United States; Sao Paulo, Brazil; and comfortably in the global econ- and includes an Advanced Study Project and Tokyo, Japan. The summer program is omy and in a language and cultural demonstrating disciplinary mastery in the designed to learn language in context as an environment other than their own. context of a geographic concentration. Such ethnographer would, from "a native's point a functional/geographic specialty enhances of view." Cultural studies complement lan- The Joseph H. Lauder Institute of Man- international job placement. guage instruction by providing contempor- The M.A. in International Studies cur- agement and International Studies is a twenty- ary and historical perspectives with which to four month program which offers an internationalized riculum also includes both general and spe- understand the subtleties of the various M.B.A. from the Wharton School and an M.A. in cialized coursework. countries. One student described his class's International Studies from the School of Arts and General international studies include: in- collective summer experience thus: "In eight Sciences. The Institute's innovative curricu- ternational economics, international politics, weeks we covered Brazilian folklore, art, lum includes internationalized management international law, international negotiations, geography, urbanization, politics, econom- courses, social science and humanities and international technology transfer and ics, music, theater, literature, contemporary courses which focus on cultural understand- management. These disciplines address is- affairs, agriculture, and the 'Piano Cruzado,' sues ing, advanced language training both on which influence international business an unorthodox economic plan to eliminate between campus and abroad, an International Execu- dynamics nations. inflation without recession." tive Internship, and extracurricular events Summerdesigned to enhance the program academi- ISummer II cally and culturally. " Orientation " Executive Internship (12 weeks overseas) " Comparative Social, Political & Economic Institutions Academic Year II " Language & Culture International Man- Programagement Studies (8 weeks overseas) " Focus on Disciplinary Concentration Academic Year I " Language & Cultural " Internationalized Perspectives Management Studies " International & " Language & CulturalArea Studies Perspectives " Integration: Inter- " Internationalized Areanationalized Manage- Studies Perspectivesment & Area Studies Russell Palmer, Dean, The Wharton School (The Reliance Professor of Management and Private Enterprise) and Jere R. Behrman (The William R. Kenan. Jr. Professor of Economics and First Asso- ciate Director of The Institute). Specialized area studies address inter- Overall, the Lauder "concept" combines disciplinary dynamics within particular re- both and studies thatcut of the world. These studies general specialized gions comprise Herbert S. Levine, c Economics and Co- across the of and the Institute's and Cultur- Professor disciplines management unique Language Director, The Lauder Institute. international studies. This approach dev' al Perspectives Program. The program inte- ops skills and perspectives essential to the grates cultural, historical, and comparative repertoire of the international manager. coursework with advanced language acqui- The newly revised Lauder curriculum sition. The program focuses on four regions Area of Specialization integrates management and international and their associated languages: East Asia studies in the following ways: (Mandarin Chinese and Japanese); Latin The M.B.A. curriculum includes both gen- America (Spanish and Portuguese); the Uni- eral and specialized courses. ted States (English, for non U.S. nationals) Western At the general level, the Lauder "core" is and Western Europe (French and German). Europe (38%) significantly internationalized. It includes In addition, one or two students are admit- the functional disciplines of accounting, fi- ted annually to study Eastern Europe (Rus- Latin America nance, management, marketing, and opera- sian). While the program demands expertise (26%) tions management. A course in interna- in particular languages and cultures, it also tional business is offered, as well as in students a to cultural policy develops sensitivity East Asia (20%) courses in the"tool" areas of statistics, quan- differences world-wide. titative methods, microeconomics and macro- Overall, the Lauder "concept" combines economics. Such a broad-based foundation both and studies thatcut general specialized United States (14%) in the fundamentals of management pre- across management and international disci- pares graduatesasgeneral managers through- plines. This integrated approach develops out their careers of their skills and essential to the regardless particu- perspectives reper- Eastern Europe/Soviet Union (2%) lar industries or functions. toire of the international manager.

II ALMA NA C SUPPLEMENTSeptember 6, 1988

Corporate visits continue to be one of the highlights of the summer program. These excursions into foreign business environ- ments demonstrate the variety of work ethics as well as the distinct cultural compo- nents of multi-national and indigenous com- panies. In describing these visits, according to one student "after they exhausted the supply of commercial banks in Paris, they branched out and visited Young and Rubi cam, CNES, NBC's foreign correspondent, Pierre Salinger, the American Commission to the Common Market in Brussels, and even spoke about politics with Flora Lewis of The New York Times. Fellow students in Caracas treaded the red carpet as they Claire Gaudiani, Director of Language and Cultu- boarded the corporate jet of the state oil ral Perspectives Program (1984-1988) company, Lagoven, and were greeted by the company's private boat for a guided tour of the oil rigs. While the American contingent Summer Program in People's Republic of China of firms of Gold- Following the first summer, the pursuit was visiting the prestigious and cultural the Scott enhanced language training man, Sachs, Inc., Paper Company, the academic at Penn. was to continues in setting and CIGNA, the China cohort privy and culture courses are the China Nature and Specialized language a presentation by both with taught by language acquisition experts Animal Byproduct Corporation dealing and from the of as well as visits to ITT, faculty departments politi- pig bristle exchange economics, and ARCO. The cal science, history, sociology Otis, Hewlett-Packard, and literature. Individual and tutor- was but group classroom work important, actually ials are also available as needed. Some stu- ofanother viewing the operations country's dents also elect to enroll in sche- the nature regularly companies emphasized practical duled (non-Lauder) of what we were their language department learning. Following courses to their learning. The summers in various world regions' the stu- supplement goals of the academic year program are to dents have felt that theynot only came back advance students' knowledge of the lan- speaking their second/third/fourth language guage and culture for use in management better, but also that they 'came back know- Pm'rmmi in Japan settings and to strengthen and solidify the ing that country.'" students' linguistic skills at the Superior level. To assure the broadest possible cultural and academic perspectives, the academic program is supplemented by extracurricu- lar activities. These events include monthly visits by the Board of Governors and range from arts enrichment to academic supple- mentation. One particularly notable exam- ple of the cultural activities arranged for the students is the James Wolfensohn Concert Series at the Curtis Institute of Music. Enhancing the academicprogram, Ralf Dah rendorf, visiting Lauder professor and the Warden of Saint Anthony's College at Ox- ford University presented the first of an umn,er Pracramn in time United Slates on-going series of lectures to the Lauder students during the spring of 1988, "Euro- pean Integration: The Problems and Pros- pects of 1992" and "Democracies Without Opposition: In Search of Political Ideas." Summer Program in Germany The Germans group's five-day trip from Guest lectures recently sponsored by the Munich to Berlin was a lesson in contrasts- Lauder Institute include: "Communications political, economic and social-between the Across Boarders-Management Concern or East and West. What struck one student the Neglect?" Loet A. Velmans, former Chair- most "was the overpowering impact of the man, Hill and Knowlton; "Evolution of a wall... it was so unexpected. One side was Global Economy" -John E. Berndt, then so dynamic and international, while the President and CEO, AT&T International; other was frozen and paralyzed." From the "Soviet Economic Reform: Theory and Prac- Champs Elysees to Inner Mongolia, Rio to tice" -Leonid Abalkin, Director, Institute of the San In Islands, Red Square to Times Economics, U.S.S.R. Academy of Science; Square, experiences are varied, but always and, "How Do You Run a Diverse Interna- critical to the integration of the cultural tional Consumer-Service Business?" Ira S. perspectives. Summer Program in Brazil Rimmerman, Group Executive, Citicorp.

ALMANAC SUPPLEMENT September6, 1988 II!

Executive Internships are an integral and Internships By Region required component of the Institute's pro- gram. During the summer between the first and second of students are years study, Africa: Citibank hired the world. by corporations throughout Australia: Pratt Venture Plc. Living for twelve weeks in a country where Capital, East Asia: Bankers Trust; lndosuez; they use their language on a daily and pro- Banque fessional basis, the students increase their Bear, Stearns & Co., Inc.; Booz, Allen & Hamil- ton (3); The Chase Manhattan Bank, N.A. of the inner of (3); knowledge workings organi- Coca-Cola China, Ltd. (2); Control Data; zations and cultures in different corporate Dentsu Young & Rubicam; Eberstadt Fleming nations. (2); The First Boston Corp.; Ford Motor Com- The Executive Internships provide mu- pany; Japan Ltd.; Formosa Plastics Company; tual benefits to students and corporations. Fuji Xerox (2); Goldman Sachs & Co. (2); The students use their expertise to perform Hoare Govett Asia, Ltd.; Jardine Fleming Ltd.; meaningful work, undertaking projects Merrill-Lynch; Nomura Securities; Northern which make the most of their advanced lan- Telecom, Pacific; Otis Elevator Co., Pacific Production Control Department, Fuji Xerox Area skills and Wharton edu- Operations; Yogogawa Hewlett-Packard, guage management Ron Scluorsclu, Lauder student (seated at desk) and Xerox. cation. The internship enables corporate management to assess the potential of the Eastern Europe: El. Dupont de Nemours, intern for permanent employment. Many International (2); Pfizer Inc. Latin America: Booz, Allen & Hamilton; students return to their final year of studies the success to date in stu- received offers or leads for Despite pairing Bunge Born Group (8); The Chase Manhattan having perman- dents with interns/ups and finding ent with the appropriate Bank; The Citicorp Investment Bank; Citibank placement sponsoringcompany. for graduates, there is a continu- The success of 200 Lauder stu- placement Latin America (3); Citicorp; Coca-Cola Com- matching ing need to "educate" the corporate world DOLE La Fabril, SA; Fenix, S.A. dents with in-lan- pany (3); (2); appropriate in-country, about the caliber and capabilities of the stu- (2); GLOBO; International has been To Goodyear Group guage internships phenomenal. dents. Also, the for structuring (2); Group Analysis for Development; The date 105 in 26 countries have necessity companies appropriate projects at appropriate salaries MAC Group; Operadora de Bolsa; Promotora offered to our students. internships is on-going. As Edwin L. Artzt, Vice Chair- de Nogocios, S.A.; Rosario Dominicano; Scott Internships vary widely. One student man of the Board and President of Procter & Paper Company (2); Technomic Consultores worked as the first non-Chinese employee Gamble International and a member of the S/C; Warner Lambert; Xerox do Brazil (3); Xerox Mexicana S.A. de C.V. (3). for the largest corporation in the Republic of Lauder Institute Board of Governors re- China. With an amateur boxing background, cently said, "he is excited to be involved with this student served as an for U.S.A: American Appraisal Associates, Inc.; interpreter the early stages of a program the world A.R.A. Services, Inc.; AT&TInternational Muhammad All the former (11); during heavy- doesn't yet know it needs ... The Lauder Banco National de Mexico; Bankers Trust Co. tour of China. this weight champ's During Institute has not just produced another fla- (5); Banque Indosuez; Benton & Bowles; Booz, time, the student trained with the national vor of business student, but brings some- Allen & Hamilton; Braxton Associates; Cit- team of the of boxing People's Republic thing to the corporate international arena icorp Investment Bank; Citicorp/Citibank (3); China. He also served as negotiator for All. which would take for other new Coca-Cola Company (4); Continental Grain years Discount Soon after one set initial arrangements had to achieve." Company (2); Corporation of New been made, "the other side" asked that the employees York Advisors; El. DuPont de Nemours, Inc.; TheFirst Boston Franklin Mint; student represent their interests as well, for Corp.; General not did "he understand our Electric Trading Co. (3); General Motors Corp. only language, (Global Goldman Sachs & but he understood our as well." Planning Group); people Co. (3); Harris; IBM World Trade Corporation (2); Johnson & Johnson; de Neurflize Another a student an Lepercq, internship provided & Co.; Lusitania; Merrill-Lynch; Morgan Gua- opportunity to work in the marketing depart- ranty Trust Co. of New York; New York Life; ment of Pechiney's Corporate Planning Div- PaineWebber, Inc.; Pepper, Hamilton & Sheetz; ision. Based in Paris for the summer, she S.E.I. Corporation; Strategic Planning Asso- travelled to Hong Kong to analyze Hong ciates, Inc.; Swiss Bank Corp.; World Bank. market and distribution network for Kong's Western Europe: Alcan Aluminium France, Europe's largest non-ferrous metals com- Technal; Anglo Nordic Holdings Plc. (3); Ar- pany. Her dual concentration in Europe and thur D. Little; Bain (2); Banque Indosuez (5); East Asia and her command of the French Bayer; Bayerische Vereinsbank; Booz, Allen & language made this a manageable three- Hamilton; CIGNA Worldwide Inc.; Citicorp; month project. A Swedish born student The Coca-Cola Co.; Credit Commercial de France; Credit Suisse, First (who speaks German, French, English, Ital- Boston Ltd.; ian, and "some his Deutsche Bank AG (5); Elf Aquitane; Eli Lilly Spanish Japanese") spent Gmbh Estee Lauder, Inc. EZ-EM, for Deutsche Bank A.G. Ltd.; (3); internship working Incorporated; Ford of Europe; G.E.-C.G.R; in Munich, West Germany where he worked G.E. Electromedicina, S.A.; Flenkel kGaA; Hew- in sales and trading of international equities. lett-Packard France; Hewlett-Packard GmbH; The summer position turned into a perman- IBM (3); IBM Sweden; Kraft Europe; L'Air ent job, as he has returned to work as the Liquide; L'Oreal (2); Louis Berger Interna- Assistant to the Chairman of Deutsche tional, Inc.; Mastercard International, Inc.; Mc- Bank AG. Another unique summer project Kinsey & Co. (3); MID.; Morgan Grenfell; NCR France; Peat, Marwick & Main; opportunity was given to a student, having Pechiney lived and worked in China and Taiwan for World Trade (2); Polaroid; Procter & Gamble (2); GmbI-I; S.G. War- four who writes and Man- Quantum Management years, speaks burg; Scott International; Scott darin Chinese when he was hired Paper Paper fluently, Company; Societe Generale de France; Solvay by a major New York life insurance firm to et Cie (2); St. Gobain; TVM Techno Venture do research on opening branch offices in Mgmt.; Wembley Stadium; Wickes Plc. (3) and Taiwan and other countries in that region. Summer Program in France Xerox.

IV ALMANAC SUPPLEMENT September 6, 1988

Goal: To attract the best students. nical standpoints; and a Senior Credit Anal- To date, we have had 250 students from yst responsible for evaluating the credit risk the United States and 40 other countries. of loan proposals from clients in East Asia. The 50 students in each class have been Reasons for returning to graduate school chosen for their commitment to interna- run the gamut from wanting to understand tional management and for their leadership the complex superstructure within their potential. While there is no typical Lauder companies to wanting to pursue interna- fellow, each man and woman (for five years, tional career opportunities and realizing 70% male-30% female) brings to the Insti- that the Lauder education could provide the tute academic excellence (with an average exposure necessary to make that change. GMAT score in the 92nd percentile and an Woo Choong Kim, Chairman, Daewoo Corporation average grade point average of 3.4). The (Korea) with (Class 1988) Ronney Rosenberg of On the mean age is 26, ranging from 24 to 37 years extracurricular side, the students make a Who's of age. While all matriculants have had prior up Who of Fuibright Scholars, national ski business experience, the average applicant champions, Kung Fu experts, and in has worked for over three years. Through accomplished performers music, dance, and theater: international education, travel orwork exper- recently admitted to the class of 1990 are two ience, all Lauder students have had expo- magicians! Other sure to the international environment. members of recent classes: A woman from Chicago who has testified at the United The composition ofthe student body adds Nations and has trained women entrepre- further to the international character of neurs in Brazil, Kenya, and Ghana. A Rus- Lauder with over one third of the five sian specialist who coordinated the opera- tions of classes of students being comprised of non- the American Council of Teachers U.S. nationals. To date, the five classes have of Russia, which annually sponsors over 300 included 159 students from the United States American scholars to study in the USSR and and 91 students from the following coun- Eastern Europe. A former world-class ama- tries: Argentina (5); Austria (1); Belgium (3); teur bicycle racer who raced in California Brazil (1); Canada (3); Chile (1); Cuba (4); before moving to France to race for Peugeot The Lauder cohort Ecuador (1); Egypt(1); El Salvador (2); the of 'Yield to Maturity,' Follies throughout Southern Europe. An American (1986) Federal Republic of Germany (5); France (3); who speaks Japanese, German, and Irish Greece (1); Hong Kong (3); India (2); Iran (1); Gaelic, and who worked for Nippon Tele- Israel (1); Jamaica (1); Japan (6); Kenya (1); vision in New York coordinating news, doc- Lebanon (1); South Korea (2); Madagascar umentary, and dramatic productions byJap- (1); Malaysia (2); Mexico (4); Morocco (1); anese television networks. A graduate of the Netherlands (2); New Zealand (1); Nige- Brown University who was invited to Costa ria (1); Paraguay (1); the People's Republic of Rica to visit Nicaraguan refugee camps, and China (6); the Philippines (4) Scotland (1); who later cycled from San Francisco to Bos- the Soviet Union (2); Sweden (4); Switzer- ton to raise money for Oxfam and Save the land (2); Taiwan (5); Turkey (1); the United Children. A quadra-lingual Malaysian who Kingdom (3); and Vietnam (1). enjoys Ukrainian egg-painting and published The prior business experience of the stu- an article on reindustrialization during her dents covers a broad range. From the non- work for the U.S. Chamber of Commerce. A profit sector, returning students have inclu- Canadian, born and raised in Iran, educated at an American ded, among others, a former financial consul- William F. Glavin, Vice Chairman, Xerox Corpo- school in Tehran and at tant in the Peace Corps in the Dominican ration and Ron Schorsch (Class of 1987) Cambridge University in England, who Republic and a former Associate Director of speaks English, French, Spanish, Farsi, and Catholic Relief Services in Middle East! some Arabic. And a citizen of the People's North Africa whowas responsible for over- Republic of China who taught himself Eng- sight, supervision and management of pro- lish by listening to English radio programs at gramming activities of 19 countries. night, while working full time at an aero- Representatives from government in- nautical factory in Beijing, and who then clude: a former assistant to Bruce Babbitt translated and published works of Ernest who researched domestic and foreign policy Hemingway, Mark Twain, Irving Stone and issues; a field coordinator who ran two G.B. Shaw. regional headquarters for Michael Dukakis; an attorney from Maine who served as a Once at Lauder, the students continue to legislative draftor; and officers, both male distinguish themselves as multi-faceted indi- and female, from the Army and the Navy. viduals through their extra-curricular activ- From Taiwan to France, from Los Angeles ities: they have participated in the Wharton to Wall Street, students returning from the Follies each year in noticeable and impres- private sector bring impressive credentials sive numbers; they have played on the including: an American in Taiwan who Wharton soccer, rugby, ice hockey and owned and operated his own export man- squash teams; they produce an annual intra- agement business; the director of the finan- Lauder awards ceremony as well asa Lauder cial analysis department for a bank in Paris; a yearbook; and there have been four intra- student with a B.A. in Physics and a B.S. in Lauder marriages to date, an impressive sta- Optical Engineering who had the responsi- tistic among 150 graduates! for and bility coordination of the construc- All new students are added to the grow- tion, from integration to test, of ten satellite The Lauder (Class of 1987) component of the ing, world-wide network of Lauder and systems from both management and tech- Wharton soccer team Wharton alumni.

ALMANAC SUPPLEMENT September 6, 1988 V

program; Lauder Institute Board of Governors. Goal: To find the best for " Executive placement offering Internships; The Board members of the Institute repre- students and thus enhance and " these offering permanent placement; sent 26 of the world's most prestigious com- " to course improve the internationalization of input development; panies. The Board members are fully com- " for student the corporate community. offering opportunities pro- mitted to the Institute's efforts and play an jects; active role on its and The unique demand for the skills of the by: advising programs " giving guest lectures; activities; with and Lauder students and their combined capabil- assisting internships " acting as corporate hosts during the first and and ities has been illustrated through several placements; sponsoring nominating summer of the program; students. recent requests for permanent placement: con- " serving as country attaches; The Board, which serves as a link to sider the company who needed a student major " sponsorship of other students through the business convenes at an with a management degree, Chinese lan- community, Fellowships. annual business meeting. The Institute is guage, undergraduate Engineering degree, Student sponsorship and Fellowships: and in the U.S.A. to additionally served by these corporate lead- working experience go The Institute is especially grateful for the to run their in Bei- ers on an individual basis: each month dur- immediately operation financial support which has been provided Another called with a ing the academic year, on a rotating sched- jing. company request from individuals, companies and founda- for someone who fluent ule, a Board member meets with the stu- spoke Japanese, tions. The significant need for funding the understood culture, with dents for a presentation which is both Japanese exper- growing cost of management education is ience in the to assist the informal and informative. computer industry particularly important for students from President of the in busi- company on-going foreign nations as they cannot get loans ness negotiations with Japanese companies. from their home countries for education in Reginald H. A recent letter came from a company saying the United States-nor will U.S. financial "knew it would be a difficult Jones, they quite institutions provide loans for non-U.S. match" to find someone who speaks Rus- Founding citizens. Chairman sian, is willing to live in Brussels and is inter- of Fellowships have been received from the the Lauder ested in selling industrial chemicals. A Euro- following: Institute pean based merchant bank called in search AM International Board of of a student with financial experience, inter- AT&T Foundation Governors national exposure and skills, and 3-5 lan- Bank Julius Baer & Co. Ltd. guages (English, French, Spanish, Italian, Booz, Allen & Hamilton International Portuguese and German). Yet another firm Thornton F. Bradshaw Past presentations by Board members wanted a student with an engineering back- Citicorp have covered a broad range: personal reflec- and French abilities to The Coca-Cola Company tions have been shared by William Glavin, ground speaking Exxon Education Foundation work in France with a French company Vice-Chairman of Xerox Corporation who in Each Alejandro Garza Laguera his conviction the which has a business base the U.S.A. IBM spoke regarding necessity of "Balancing Family. Business and Culture"; David of these companies could have had one or Commission Japan-U.S. Fellowship Culver, President and CEO of Alcan Alumi- more students to interview who met their Senator Jacob Javits Memorial nium (Canada) who on "An Interna- qualifications, had they been in contact Reginald H. Jones spoke sooner! Mellon Foundation tional Management Career-Past Reflections and A remarkable percentage of students have Pfizer Inc. Future Hopes"; and James Wolfensohn, Presi- entered post-Lauder careers in the interna- Procter & Gamble Co. dent of James Wolfensohn, Inc. who shared tional arena, either in the U.S.A. or in a Ronald Schnitzer Memorial his philanthropic philosophy and talked about to their Subaru Foundation 'What Differentiates the American System-Giving country corresponding regional The Honorable Barbara Thomas Lauder concentration. It is important to rec- Something Back." U.S. Department of Education, Title VI, Multinational for and ognize that there will be an increased and National Resource Center topics presentation enhanced internationalization of the busi- discussion included: Edmund Pratt, Chair- Two have been estab- ness the of country fellowships man of the Board and CEO of Pfizer Inc. community through presence lished to date: the Sahra and William M. those who have been Lauder- who shared his views on "America Inc.- graduates Lese Fellowships (Israel) and the Deutsche educated. Even those students who have Business/Govern men! Cooperation in the New Inter- Bank Fellowship (W. Germany). national entered non-international positions bring Marketplace"; Claudine Malone, Presi- an invaluable international perspective to dent of Financial & Management Consulting theirjobs-both forcompeting effectively in Inc. who discussed her views on "U.S. Multi- domestic markets against foreign competi- nationals: Are We Competitively Disadvantaged?"; tion and for developing global strategies. and, Brian Wolfson, Chairman, Wembley To date, 150 graduates are working in 16 Stadium LTD. of the United Kingdom who Global countries. Through those graduates who spoke on "Sucessful Entrepreneurship." have been Lauder-educated, we continue to Regional topics have included Washing- enhance thecorporate connections through- ton Sycip, Chairman, SGV Group, The Phi- out the world. As these new "ambassadors" lippines who made a presentation on "Recent in East Asia" locate, both domestically and internation- Changes and Alejandro Garza ally, a formalized alumni network is being Laguera, Chairman of Empresas La Mod- created to expand the knowledge about and erna, S.A. de CV. Mexico who spoke on the It is in the Mind," impact of The Lauder Institute. topic "Underdevelopment: 1956 was a appropriate year for the explo- Goal: To establish close links be- ration of business and morality as evidenced the on "Insider and tween the program and the interna- by presentations Trading tional business Wall Street Morality" by The Honorable Bar- community. bara S. Thomas, Senior Vice President and The Corporate Community is closely connected Group Head, Bankers Trust Company and to the Lauder Institute in a variety of ways "Ethics" by Willard C. Butcher, Chairman of which include: Alfred Herrhausen. Managing Director, Deutsche the Board and CEO, Chase Manhattan *sending corporate employees to the Bank A.G. (Germany) Bank.

VI ALMANAC SUPPLEMENT September 6, 1988

The Board of Governors Joseph Neubauer, Chairman and President, Inc. Thornton F. Bradshaw, Chairman, The ARA Services Lauder Institute Board of Governors, Chair- Russell Palmer, Dean, The Wharton School man of the Board, Retired, RCA Cor- H. Ross Perot, The Perot Group poration Edmund T. Pratt Jr., Chairman of the Board Thornton F. Brad- Michael Aiken, Provost, University of Penn- and CEO, Pfizer Inc. shaw, Chairman sylvania Sonnenschein, Dean, the School of of Hugo the Board, Retired, Edwin L. Artzt, ViceChairman of the Board Arts and Sciences RCA and President, Procter & Gamble Inter- Corporation Washington Sycip, Chairman, SGV Group and Chairman the national of (Philippines) Board, The Lauder Willard C. Butcher, Chairman of the Board Institute and Chief Executive Officer, Chase Man- The Honorable Barbara S. Thomas, Senior hattan Bank, N.A. V.P. and Head of International Private Bank- David M. Culver, Chairman and CEO, ing, Bankers Trust Co. Alcan Aluminium Limited (Canada) The Honorable William C. Turner, Chair- David C. Farrell, Chairman and CEO, The man, Argyle Atlantic Corporation Peter Vice Chairman, Skandi- May Department Stores Company Wallenberg, Goal: To stimulate the international naviska Enskilda Banken (Sweden) Michel Fribourg, Chairman and CEO, Con- orientation, research, and teaching tinental Grain Company Jerry Wind, Founding Director of The Lau- of the der Institute, The Lauder Professor faculty. Alejandro Garza Laguera, Chairman of the Board, Empresas La Moderna, S.A. de C.V. James D. Wolfensohn, President, James D. One of the major problems and chal- (Mexico) Wolfensohn Inc. lenges facing the Institute, and all interna- William F. Glavin, Vice Chairman, Xerox Brian G. Wolfson, Chairman, Wembley Sta- tional management programs, is how to dium Limited (United Kingdom) assure that the management faculty who Corporation concentrate on their research Alfred Herrhausen, Director, disciplinary Managing and in a domestic context will begin Deutsche Bank A.G. teaching (Germany) Previous Board Members to internationalize their orientation, re- Reginald H. Jones, Chairman Emeritus, search and Jere R. Behrman, The William R. Kenan, Jr. teaching. General Electric Corporation, Founding To stimulate this internationalization, we of The Lauder Institute Board of Professor of Economics Chairman provided incentives for new course devel- Governors Jorge Born, President and Chairman of the opment and encouraged our students to Kenichi Kamiya, President, The Mitsui Board, Bunge Born (Brazil) challenge the faculty in each class to explore Bank, Ltd. (Japan) Jean F. Caste, Former Director General, the implications of the increased globaliza- Woo Choong Kim, Chairman, Daewoo Cor- Nestle S.A. (Switzerland) tion of consumer and resource markets and to the domestic) con- poration (Korea) Roberto C. Goizueta, Chairman of the competition (mostly Leonard A. Lauder, President and CEO, cepts and methods of the material covered. Board and CEO, The Coca-Cola Company Involvement with students' international- Estee Lauder Companies Robert C. Holland, President, Committee ized Advanced Study Projects also helped The Honorable Ronald S. Lauder, former for Economic internationalize the and fostered U.S. Ambassador to Austria Development faculty greater interaction between faculty of the Herbert S. Levine, Co-Director, The Lauder Edward C. Jefferson, Chairman of the Board, Retired; Finance Committee Chair- Wharton School and the School of Arts and Institute, Professor of Economics Sciences. In addition, we have encouraged man, E.I. du Pont de Nemours & Company Peter Lorange, Director, The Lauder Insti- faculty to attend the internationally oriented tute, The William H. Wurster Professor Lee L. Morgan, Chairman of the Board and lectures given by the members of our Board CEO, Tractor Jacques C. Maisonrouge, President du Con- Caterpillar Company of Governors and other visitors. seil d'Administration, Centre Francais du Sir David Nicolson, F.I.C., F. Eng. Chair- The efforts to internationalize the Whar- Commerce Exterieur (France) man, Northern Telecom Chairman, plc., ton faculty have, however, only just begun. Vickers and Claudine B. Malone, President, Financial & Shipbuilding Engineering plc. Despite having an increasing number of (United Management Consulting, Inc. Kingdom) faculty members teach "Lauderized" cour- Martin Meyerson, President Emeritus, Uni- Toshiro Kusaba, Director and Counselor, ses, there remains much to achieve in fully 'ersi tv of Pennsylvania The Mitsui Bank, Ltd. Japan internationalizing the Wharton courses. This is a recognized priority of the School, which has encouraged a variety of activities to stimulate and facilitate this process. The major challenge facing the SAS fac- ulty is the teaching of advanced language and culture perspectives, tailored for highly motivated graduate students pursuing pro- fessional degrees. Again, the Institute has provided support, especially as part of its Title VI Center. Goal: To impact future management education and practice using the Institute as a model To meet the Institute's objective, we must prepare a new generation of international Leonard A. Lauder, President and Chief Executive Officer of Estee Lauder Comapnies and business leaders and have a significant im- the Honorable Ronald S. Lauder, Former United States Ambassador to Austria pact on the business community and thus on

ALMANAC SUPPLEMENT September 6, 1988 VII

a better understanding among nations. The sponsor a number of events including the the administration of Wharton, SAS and Institute's impact on the future of manage- China Roundtable. The Roundtable focused the University, a strong and growing of affiliated ment education has been in three ways: on the "Implications of Recent Develop- group faculty who teach in our and are their 1) Direct impact of our program on the ments in the People's Republic of China for programs internationalizing courses and research, and a growing glo- Wharton and SAS faculty and our graduates; Foreign Investment and Management." bal network of corporate and faculty 2) Indirect impact through the Institute's Eight specialists from the academic and busi- contacts. ness sectors discussed the effect on the internationalization of the topic. " A Faculty Council was established. Mem- Wharton faculty and the contact with other bers of the Institute's Faculty Council Wharton students. In this respect, the Insti- have included: Arjun Appadurai; Jere R. tute has successfully been serving as a Behrman; Morris Cohen; Donald Fitts; laboratory for the internationalization of Claire Gaudiani; Lawrence R. Klein; Richard Lambert; Herbert S. Wharton. Similarly, the Institute had an Levine; Peter on the and cul- Lorange; Susan Naquin; William P. Pier- impact University's language skalla; M. tural and has led to further inter- Anthony Santomero; Henry programs Teune; and Jerry Wind. action between Wharton and SAS faculty. " We have a solid with a Second order effects have been via organization group 3) the of highly dedicated professionals who run model the Institute has provided for the the Institute. We have further completed a internationalization of other management successful transition in July of 1988 from programs in the US and abroad. In addition, Dr. Jerry Wind, The Lauder Professor, Director, the founding director-Jerry Wind-and the Institute's language and culture compo- The Lauder Institute (1983-1988) his associate director (1983-7)-Jere R. nent started serving as a model for other Berhman-and the co-director (1987-88)- Herbert S. Levine, to the new professional schools facing globalization Achievements to Date leadership such as law, medicine, etc. In of Peter Lorange (director) and Herbert S. engineering, and Future Challenges Levine (co-director). this context, the establihment of the Title " Reflecting on the achievements to date We have completed the design of our per- VI National Resource Center for Interna- manent residence-the Lauder-Fischer and the challenges still facing the Institute, tional Studies in Management has been Building. This marvelous structure is ex- Professor Jerry Wind, who served as the extremely helpful in getting new institu- pected to be ready before the fall of 1989. tional and our ex- founding Director of the Institute from Feb- " We have an and dedi- programs disseminating of 1983 until of 1988, observed: outstanding highly perience to others. ruary July cated Board of Governors. The Board " We established the premier international members' visits to campus are one of the Title VI National Resouce Center management program in the world. It is a program's highlights, and their overall which has been continu- interest and enhance the The Institute's program offers a national unique program support greatly model for the of level for- ously evolving and improving. Institute's business relations. integration high " The demand for our program is steadily instruction and area studies Our accomplishments in the first five eign language increasing-from slightly over four appli- with coursework in a premiere M.B.A. de- cants for each admitted candidate in 1984 years provide the Institute with a firm foundation gree. The Department of Education has rec- to over eight applicants in 1988. Further- forthe challenges facing it. These ognized the Lauder model by designating more, the applicant pool is improving in include: the Institute as the core of the nation's first quality and diversity. 1. Continued program refinement and im- National Resource Center in International " Our 150alumni have challenging positions- provements, especially as it relates to the Studies for This many of which include an international integration of the management disciplines Management. designation and area and international studies and the has more than $600,000 in perspective. brought support expansion of cultural and of academic and student fellow- " understanding programs The corporate support for the Institute sensitivity beyond a single second language ships in the last four years. As a Resource and our students is growing. To date, 105 to additional languages and cultures. Center, the Institute has accepted the respon- companies have offered us 200 intern- 2. Focus on research to help develop the sibility to help train faculty and assist cur- ships in 2b countries. Increasing numbers needed teaching materials. riculum materials' development at other col- of companies in the U.S. and other coun- 3. Increased need for financial aid for U.S. leges and universities seeking to integrate tries have hired our 150 graduates and and non-U.S. students to attract the best numbers of are send- language with international studies and man- increasing companies candidates. ing us applicants and seek other ways of 4. Provide a stimulus for the international- agement. with us. The Institute has for additional cooperating ization of other University of Pennsylvania qualified " Financial contributions from individuals, Within the from Title VI each programs. management area, the priority funding year by corporations, foundations, and the govern- internationalization of: its to the linking foreign language program ment for fellowshipsupport and programs " Executive education program oral proficiency project. The Institute is the development have exceeded a million dol- " Ph.D./MA in international studies first and only international management lars, and we have pledges for an additional " Undergraduate offerings program in the nation that requires specific $1 million. 5. the Title VI efforts " Expand for dissemi- foreign language oral proficiency levels for The financial contributions and the origi- nation of material and enhance nal endowment established the Lauder pedagogical admission and graduation. This accountabil- by the dissemination of the Institute model to factor assures that family coupled with prudent budget man- other Universities. ity employers graduates agement provides us a strong financial will be competent to conduct their work in base. We have been able to have a As the new leadership of the Institute, budget held the foreign language. It also increases the surplus every year, and the various Insti- by Professors Peter Lorange and Herb efficiency of the program instruction. tute endowments now total over $13 Levine, takesover the Institute, we are look- Title VI funds have supported the devel- million. ing forward to having the Institute continue opment of course modules in social sciences " We have successfully been serving as a lab its growth and enhance its impact on other and humanities taught in French, Spanish, for the internationalization of Wharton programs at the University, helping to estab- and German in and for the development of advanced pro- lish Penn as a Portuguese by professors fessional and culture premier global university. those disciplines. These faculty workclosely language programs at the School of Arts and Sciences. This special Almanac insert on the Lauder Institute with language instructors each week to " As the nation's first Title VI National was produced by: Marcy Bevan, Assistant Director assure that students both learn the course Resource Center for International Studies for External Affairs under the direction of Dr. material and continue to in Jerry progress acquir- in Management, we have been serving as a Wind, The Lauder Professor, with excerpts from ing higher language skills. model program for other universities in articles by: Dr. Bait Nourse. Administrative Direc- Support has also brought visiting lectur- the U.S. and abroad. tor: Siobhan Mullen, Class of 1988; and. David ers to campus and enables the Institute to " We have excellent working relations with Trachtenberg, Class of 1988.

VIII ALMANAC SUPPLEMENT September 6, 1988