SCHOOL OF BUSINESS ARIZONA STATE UNIVERSITY

INSIDE The Basha brothers: Keeping it fresh

Tastemakers: Succeeding in the restaurant industry

Local Flavor How companies like Sossaman Farms secure the future STEVE SOSSAMAN, of local foods Owner, Sossaman Farms B.S. Agriculture, ’78

WPCAREY.ASU.EDU / AUTUMN 2016 DEAN’S LETTER WPC

DEAR W. P. CAREY FAMILY AND FRIENDS,

Is there a food that reminds you that you are a Sun Devil? When I think of W. P. Carey, I think of donuts and ice cream. On the first day of school each semester we deliver donuts to the faculty and staff, and every July we host an ice cream social for the same group. The Chuckbox burger is the food I most associate with ASU. When I was a faculty member we’d walk newly hired colleagues across the blazing hot campus when they arrived each summer for one of those iconic burgers. That may seem cruel, but hey: as far as I’m concerned, the Chuckbox is the place for hamburgers at ASU, no matter what time of year. This issue covers many facets of the business of food, including the psychology that underpins our behavior. Food shapes our memories and bridges cultures; it can form lasting bonds between people. As I write this, I have just returned from several weeks in China. While there I shared meals with our alumni, faculty and graduates, and every bite was a celebration of their The food in each accomplishments. We visited the largest snack food and place I visited beverage company in China (Want Want Group), where one was a huge part of our alumni, Lu Jian (MBA ’12) is deputy director of general production department. We sampled food that Chinese of the learning children grow up on, and I couldn’t help but think the food experience. I loved as a kid was very different. The W. P. Carey faculty Walking through traveling with me who are Chinese shared their memories of markets, I reveled favorite childhood foods and talked about what their families in the culture Business like to eat today. They were excited to bring back some of their memories in their suitcases. of food and I stayed on to vacation, which included culinary tourism. the business The food in each place I visited was a huge part of the of producing, is personal. learning experience. Walking through markets, I reveled in the culture of food and the business of producing, sourcing and sourcing and preparing it. In Xi’an, we joined a food tour led by locals who preparing it. Take a moment to consider the impact the W. P. Carey School of Business wanted to make sure visitors experienced what makes their has had on your life. As an alumnus or friend of the W. P. Carey School, you city so special. I’ll admit I’ve become addicted to xiao long bao — Shanghai’s delicious soup dumplings. Even the sad, frozen version I can buy at home brings back amazing memories. have a firsthand understanding of our entrepreneurial approach to learning In these pages you’ll learn about food, but you’ll also read about our faculty and their and the unique opportunities that we provide our students. Last year alone, research, and our alumni and their businesses. We hope something here evokes memories scholarship support provided access to higher education for 1,000+ as well. To me, that’s what makes the W. P. Carey School of Business so special: the W. P. Carey School students. people and the memories. I laugh over my most embarrassing moments in the classroom, treasure the colleagues I work with and those who have moved on and miss my students. Inspire the next generation of business leaders with your gift today. Memories make a life, don’t they? What’s your memory of us? Is it a faculty member who made a difference in your life? Together we can create positive change on a global scale. Is it an advisor who helped you thrive? Is it friends made in the dorm, or in class or on the wpcarey.asu.edu/invest sports field? Share it with us. We want to hear about your memories and reconnect you with the school, your faculty and staff and fellow alumni. Tell us what makes this a special place for you.

[email protected] @WPCDean

WPCAREY.ASU.EDU / AUTUMN 2016 1 WPC FROM THE EDITOR TABLE OF CONTENTS

W. P. CAREY MAGAZINE SETTING THE TABLE Volume 4, Issue 1, Autumn 2016 AT SKYBERRY FARMS Managing Editor (Class Notes, see page 35) Elizabeth Farquhar

Creative Director Paula Murray Features

DEAR W. P. CAREY FRIENDS, Art Director 10 The Basha brothers David Imes Keeping it fresh Food, glorious food! The team that creates Staff Contributors 13 Local Flavor Colin Boyd, Hannah O’Regan W. P. Carey magazine was very excited to work on this Supply chains are closing the distance issue. Where does food come from? How does it get to Editorial Assistant from farm to table us? Why is it so much more than mere sustenance? Connor Lovejoy I was mentally chewing on that and more when I 21 Tastemakers interviewed four of the top executives at Bashas’ Inc., Proofreader Succeeding in the restaurant industry an independent grocery company in Arizona (page 10). Cara LaBrie The executives — Edward “Trey” Basha III and brothers Contributors Upfront David, Ike and Mike — are all W. P. Carey MBA alumni, Molly Castelazo, Teresa Esquivel, the third generation of Bashas Tim Gray, Tim Hyland, 1 From the dean Jenny Keeler, Betsy Loeff to operate stores in one of the 2 From the editor W. P. Carey most competitive markets in Photographers magazine the country. King Lawrence, W. Scott Mitchell, 4 Voices Rather than sitting down Mark Peterman, Cassandra Tomei, works toward Shelley Marie Valdez 5 All things WPC: News from your school a simple goal: at corporate headquarters, and your alumni community we met at one of their stores to re-introduce in Gilbert, Arizona. When I you — our far- arrived, the photographer VALDEZ MARIE SHELLEY Departments Dean was setting up lights in the flung alumni Amy Hillman 24 Research: Location and world bank produce department. The and friends — lending; taxes in the U.S. and Europe brothers joked with each other as we posed them amidst the vegetables, and the Chief Affinity Officer to each other, good-natured ribbing continued when we sat down for our talk. Frequently one Kim Steinmetz 28 Ph.D. Research: Ziru Li, Eunae Yoo, and to help brother would make a comment, and another would elaborate. That creative give- Manager of Alumni Relations Beth Schinoff, Allan Hernandez and-take is business as usual among the leadership at Bashas’. In the process Theresa DeLaere you become 30 Whiteboard: Doug Owczarczak (B.S. they make better decisions, and they help each other become better people. Economics ’09), Jeremy Veatch (MBA ’08) something like Because they are brothers, they trust each other to have the best interests of the W. P. Carey Alumni alumni.wpcarey.asu.edu a family. family and the business at heart. 32 Student experience: New Venture Group W. P. Carey magazine works toward a simple goal: to re-introduce you — our Facebook 35 Class notes far-flung alumni and friends — to each other, and to help you become something like a family. You may not facebook.com/wpcareyschool be siblings, but like siblings you have shared experiences. You attended a top business school, where 40 The Backstory: McCord Hall’s LinkedIn in addition to the knowledge and skills to succeed, you learned about W. P. Carey’s values: excellence, wpcarey.asu.edu/linkedin not-so-hidden gem integrity, impact and community. And, you absorbed the W. P. Carey mantra that “business is personal.” As you page through this issue, we hope you’ll discover ways you can deepen your W. P. Carey family ties. Twitter @wpcareyschool Check the calendar and find a networking or social event in your city to attend. Look into our mentoring ON THE COVER: Steve Sossaman at Hayden Flour Mills, Queen Creek, Arizona. programs. Hire an intern or simply help a fellow alum with an introduction. In other words, spend some time together. That’s what families do, right? You are sure to come away with new insights and friends. Editorial, sales and production Photo by King Lawrence It’s been 20 years since I joined your family, and it’s been wonderful! But now it’s time to slip out the correspondence should be addressed to: W. P. Carey School of Business door — as you read this I’ll be retired and out bird-watching somewhere. But we all know that you can’t Arizona State University retire from family. Even though I won’t be at my desk chasing stories, I won’t disappear. You just might PO Box 873506, Tempe, AZ see me at Homecoming. Please say hello! 85287-3506

Changes of address and other subscription inquiries can be THE 30 UNDER 30 NEW VENTURE emailed to [email protected] RISING SUPPLY CHAIN GROUP: Student inside wpc STARS identifies top- consultants LIZ FARQUHAR, Managing Editor W. P. Carey magazine is a publication of W. P. Carey School of Business at performing young have solutions, [email protected] Arizona State University © 2016 professionals will travel

(see page 6) (see page 32) Send editorial submissions and letters to [email protected]

2 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 3 WPC VOICES ALL THINGS WPC your school and your community

SCHOOL OF BUSINESS ARIZONA STATE UNIVERSITY of Inside Getting health care on the road to recovery

Finding time for focus Editor’s note: In our last issue, one in a busy world TOP 10 LIST Newest members of of our research features explored the the alumni hall of fame Here are 10 golden nuggets you can issues facing family farms. Reader pull out the next time the conversation Rick Kloeppel poses a good question. turns to your alma mater Students find strength through adversity Unbreakable REASONS Spirit WPCAREY.ASU.EDU / SPRING 2016 TO BE PROUD OF W. P. CAREY TO THE EDITOR, Response from Professor Ashok Mishra: “Agritourism” is part of the discussion about the survivability of small # # # # I received my copy of the latest issue the other day, and as expected, the farms, especially in the Northeast region of the U.S., and I have 10 9 8 7 magazine is informative and entertaining, especially after a 32-year career published several research articles that point to the importance There are more than The average debt for Twenty percent of More than and 10 years of retirement. of agritourism to farming businesses. Farms in the Northeast are small and are located near urban fringes; they are engaged in the 50 ways to get your an Arizona resident W. P. Carey freshmen 80 percent of ASU I was particularly drawn to the article titled: “What’s next for the family production of high-value, organic agricultural outputs such as business degree at who graduates from are the first in their students receive farm business?” My perspective on that issue is somewhat unique. I fruits, vegetables and horticultural products. These products have W. P. Carey. ASU is 30 percent families to go to financial assistance. lived in Illinois farm country for 27 years and 15 years in west central a shorter shelf life, but they command higher prices. Additionally, We offer 30 undergraduate, four less than the national college. Arizona State University New Hampshire. The difference between family farms in those states farmland value in this region is very high and contributes to about 90 MBA, 10 specialized masters average. W. P. Carey Undergraduate Office of Financial Aid and is stark: in New England we farm; in the heartland we do agriculture. percent of the total assets. These farms will be in the family farming and eight Ph.D. degrees. Admissions. Scholarship Services. I was disappointed that the article did not mention agritourism, which business until they are bought out by developers who are interested The average student debt load is $37,000 nationally; the average affects both the survival and succession planning of many family farms in building the houses, shopping(center spread, complexes stitch) and recreational areas for an Arizona students at ASU in this region. I would think that that Dr. Mishra’s research would explore demanded by people living in suburban areas. Unfortunately, our take W. P. Carey with you was $24,000, according to the implications of agritourism, especially as it impacts the long term data do not bear out these results due to lack of data collected on your favorite device #iamwpcarey laptops | cell phones | tablets # the Arizona Board of Regents # # sustainability of family farms. by the United States Department of Agriculture. Read more at keyboards | gps | folders ULTRA REMOVABLE STICKERS. 6 Financial Aid Report. 4 3 ARIZONA STA TE CUSTOMIZE YOUR TECHNOLOGY! research.wpcarey.asu.edu.UNIVERSITY KEEP . ASU is the school of W. P. Carey is home You’ve heard of Thank you for producing this terrific publication. I often wish I could | \ shift choice for Arizona’s to one of ASU’s four “Shark Tank.” return for some advanced study. ASHOK MISHRA CALM AND he future of business of future he t Kemper and Ethel Marley Foundation Chair in Food Management RETURN Flinn Scholars, the # Nobel Laureates. W. P. Carey hosts RICK KLOEPPEL Morrison School of Agribusiness W. P. CAREY state’s top high 5 Regents’ Professor Edward an annual Spark TE

Y C. Prescott was awarded the A TE

(B.S. Business Administration ‘74) ON Y

A school seniors. Tank and other ARIZONA STA TE UNIVERSITY ASU is the No. 1 ONA ST ONA ST Nobel Memorial Prize in UNIVERSIT UNIVERSIT ARIZ WHERE ARIZ More Flinn Scholars choose ranked university competitions to BUSINESS IS TM TM Economic Sciences in 2004. I PERSONAL ASU than the University of in the U.S. for bankroll student Arizona or Northern Arizona WPC innovation. startups.

IS PERSONAL University. U.S. News & World Report, Investors commit more than

\ | $250,000 a year to student

BUSINESS 2016. Overheard on Twitter # entrepreneurs through financial ARIZONA STA TE # UNIVERSITY ARIZONA STA TE WHERE support and competitions. UNIVERSITY FLETCHER KING, student, sports and media studies WHERE 2 W. P. Carey SEVEN THINGS I LEARNED FROM MY FIRST YEAR OF COLLEGE ASU’s

BUSINESS 1 is working with ERIC G. CREASMAN party school 1. Things will be new at first, and some of 5. Washing clothes and keeping your TAB NASA to increase

(MBA ’16) CAPS LOCK them may be frightening, but if you’re room tidy might seem like a nuisance, PERSONAL IS ranking is in the

Couldn’t make it to @asu @ business. of future he shift t productivity in space. willing to take some chances you’ll find but they’re good habits for life. WPCareySchool graduation rear view mirror, but a bevy of insights and knowledge. Management Professor 6. Don’t think because you didn’t do well so we had a ceremony in TM JENNIFER M. COOK ARIZ with the great weather ARIZ UNIVERSIT UNIVERSIT ONA ST on one quiz or test that you’re ruined Jamaica ONA ST (MBA ’04) Jeff LePine’s research is the A Y TE A Y

2. Make at least one new friend TE and plenty to do, academically. The more you believe in Love the clever branding! first business school project during the course of the year. yourself the more real it will become. Way to go @WPCareySchool NASA has funded. W. P. Carey’s hard-working #iamwpcarey Our class students still have fun. 3. Join at least one student group. 7. Things that seem like mindbenders DOUG DUCEY (B.S. was gifted w/ keepsake when you are a freshman will be as easy Finance ’86) rings=pride (our idea)! ASU has not made the 4. Try to attend as many student events as a child’s puzzle over time. Fearing the Proud to be a @ Inset: One of the tech stickers party school ranking as you can, sports or otherwise, but college experience is normal, but by the WPCareySchool alum! included in our Spring 2016 issue in years. leave time for homework and test end of your first year you’ll be thinking, #GoDevils #SunDevilNation of W. P. Carey magazine. preparation. “What was I afraid of?

4 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 20152016 5 ALL THINGS WPC ALL THINGS WPC AT THE CORNER OF ACADEMICS TEACHING by EXAMPLE BEST. AND INDUSTRY DAY. he W. P. Carey School of Business is proud of faculty members for their excellence in teaching and research, early 400 senior executives are Tand all that they do to advance our culture of collaboration, hard work, and superior performance. currently serving as members of EVER. the W. P. Carey School’s INDUSTRY & Zhan (Michael) Shi, Assistant Professor Phil Drake, Clinical Professor of t the 2016 Spring 13 advisory boards. Nicole UNIVERSITY HONORS of Information Systems, Outstanding Accountancy, John W. Teets Outstanding to Success Career NGarcia, executive director of corporate A Allan Hernandez Graduate Teaching Award Graduate Teaching Award Fair, more than 1,100 relations, describes these executives as Ph.D. student, Department of Economics Kirk Kristofferson, Assistant Professor undergraduate business “professional lifelong learners who are Teaching Excellence Award, Graduate and of Marketing, John W. Teets Outstanding students — an increase positively impacting their companies” Professional Student Association at ASU HUIZINGH UNDERGRADUATE Undergraduate Teaching Award of 200 from the prior year and who have an interest in helping to Andrea Morales TEACHING AWARDS Beth Schinoff, Ph.D. Student, — began shaping their prepare fresh business talent. Professor, Department of Marketing The Huizingh Undergraduate Management, John W. Teets Outstanding professional futures by “Our advisory board members open J. Willard & Alice S. Marriott Foundation Teaching Awards recognize Undergraduate Teaching Assistant meeting representatives a window on industries and professions Professor of Marketing and Services excellence in teaching, inspiring of 93 organizations to that are evolving and emerging,” she Leadership, 40 Under 40 Most Outstanding and mentoring students. The annual discuss internships and said. “The boards represent an inter- MBA Professors, Poets & Quants awards honor professors who have W. P. CAREY FACULTY full-time positions. section between thought leaders who Anne Tsui committed their lives to helping HALL OF FAME are creating new knowledge and SUPPLY CHAIN EXCELLENCE Professor Emeritus, Department of students realize their full potential. The Faculty Hall of Fame was 1,100+ business the companies where change is Management, 2016 International Association established in 1977 to recognize retired students he 30 Under 30 Rising Supply Chain “We need to prepare a talent pipeline,” happening daily.” for Chinese Management Research Lifetime John Eaton, Clinical Professor of and semi-retired faculty members who Stars Recognition Program, sponsored says Wan. “With added visibility, I’m “The E. & J. Gallo Winery is Contribution Award Marketing, Huizingh Outstanding have made extraordinary contributions to 93 companies

by ThomasNet and the Institute for certain that more people will see how well proud to be one of the charter Undergraduate Teacher Award the advancement of business education 250 career members of the Value Chain Supply Management, identifies top-per- supply chain aligns with the core values Detra Montoya, Clinical Associate and to the W. P. Carey School overall. opportunities (2.9 forming young professionals in the field. and interests of the next generation. We Network,” says Ernie Chachere, W. P. CAREY Professor of Marketing, Huizingh Following are the 2016 inductees: full-time positions and 2.5 This year, three W. P. Carey alumni are on the list, and desire to contribute to something bigger, vice president of supply chain FACULTY AWARDS Outstanding Undergraduate Service to internships per company, on one of them was named the brightest star in the group. have strong tenacity and take an and quality. “The membership Each year the W. P. Carey School of Students Award Angelo Kinicki, Professor Emeritus average) Amy Georgi (B.S. Supply Chain Management ’07), entrepreneurial approach to work.” has provided opportunities to Business recognizes faculty who set Adegoke Oke, Associate Professor of Management 200+ on-campus enable more effective talent a program manager in supply chain acquisitions For Goehring, the honor also high- the standard as scholars in research of Supply Chain Management, Huizingh Peter Reingen, Professor Emeritus interviews scheduled for management and recruiting, and integrations at Fluke Electronics in York, lights millennials as major players in and teaching at the graduate level. Outstanding Undergraduate Teacher Award of Marketing the following day providing input into research Pennsylvania, is this year’s Megawatt winner. Other shaping the future of business. “Mil- Rajiv Sinha, Professor Emeritus agendas and direct engage- W. P. Carey alumni among the honorees are Debbi lennials are not afraid to explore new Bin Gu, Professor of Supply Chain of Marketing (Posthumous) Visit wpcarey.asu. ment with faculty supply chain Wan (B.S. Supply Chain Management and methods and ways of completing tasks,” Management, Faculty Research Award THE JOHN W. TEETS AWARDS Beth Walker, Professor Emeritus edu/talent to learn experts. For me personally, the Marketing ’11, B.A. Sustainability ’11), a strategic he says. “This kind of ‘outside the box’ Minu Ipe, Clinical Associate Professor Established in 1999, the John W. of Marketing more about Spring opportunity to network, discover, sourcing manager in global operations at Cisco thinking shakes things up, and can pro- of Marketing, Outstanding Graduate Teets Outstanding Teaching Award to Success and other and learn from my peers has Systems Inc., and Christian Goehring (MSIM ’13), vide great value to all organizations.” Teaching Award recognizes instructors and graduate For more about faculty awards high-impact recruiting been a great experience.” a logistics supply supervisor at Avnet Inc. Nominations for next year’s list Steve Kaplan, Professor of assistants chosen by their students see wpcarey.asu.edu/faculty- opportunities at the For more information, The program is intended to call out role models will open this fall. See 30under30. Accountancy, Outstanding Professor of as elite members of the academic research/achievements W. P. Carey School contact Nicole Garcia at who make the case for others in their generation thomasnet.com/nominate/ for Doctoral Programs Award community. of Business. that supply chain is an exciting, viable career path. information. [email protected].

HOMECOMING HALL VERY TIME I THINK I’VE HIT MY PEAK, 20 OF FAME RECEPTION W. P. Carey alumni connect ETHE PASSION AND FASCINATION I HAVE McCord Hall Plaza, ASU’s Tempe FOR THE FIELD OF SUPPLY CHAIN REMINDS OCTOBER Campus, 6 to 7:30 p.m. in San Francisco ME THAT THERE IS MORE TO ASPIRE TO — calendar LAWRENCE R. KLEIN RSVP at wpcarey.asu.edu/fame Coming soon to San AND A HIGHER ROUTE TO CLIMB.” of events ) 12 AWARD FOR BLUE CHIP Antonio, Los Angeles, FORECAST ACCURACY ASU HOMECOMING BLOCK Seattle, Orlando, Denver, DEBBI WAN RECEPTION & PROGRAM 22 PARTY & FOOTBALL GAME New York, Chicago and B.S. Supply Chain Management and University Club Old Main Lawn and Sun Devil Stadium, Shanghai. Stay tuned: Marketing ’11, B.A. Sustainability ’11 1 W. 54th St., New York, NY ASU’s Tempe campus (time TBD), RSVP at wpcarey.asu.edu/events RSVP at wpcarey.asu.edu/klein wpcarey.asu.edu/homecoming

6 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 7 WPC ALL THINGS ALL THINGS WPC Produce for

. P. Carey alumni are making better health Celebrate Wsuccessful careers in every W. P. Carey alumni inducted to the Sun Devil 100 in 2016 kind of organization from startups team of four W. P. Carey students won the 2016 to the Fortune 500; that’s a lot of Produce for Better Health (PBH) Foundation experience! If you would like to share Formula 5 Marketing Competition – a collegiate the wealth with a student, W. P. Carey event offering marketing students the opportunity offers opportunities: to influence fruit and vegetable marketing, sales and Aconsumption in the United States. Career Discovery “The competition challenges students to develop a The Career Discovery Mentorship comprehensive marketing plan,” says Renee Hughner, associate Program connects W. P. Carey and professor in the Morrison School of Agribusiness. “It requires ASU alumni, executives and other an understanding of the nuances of agriculture, such as growing professionals with undergraduate and supply chain issues, in addition to having a solid business and (sophomores, juniors and seniors) and marketing foundation — something our students are perfectly suited for.” graduate business students (MBA From 29 proposals submitted to the competition, the W. P. Carey group and specialized masters) who want to was among six finalists selected for presentation at the annual PBH expand and deepen their interests and conference. The team included Logan Rohloff (B.A. Global Agribusiness career opportunities. ’16), Colton Hernandez, (B.A. Global Agribusiness ‘16), and seniors Daisy Solis-Alvarez, (B.A. Food Industry Management) and Katherine Flash Mentoring Sieverding, (B.S. Marketing). Rohloff represented W. P. Carey Flash Mentoring is a one-time, one- before judges from organizations such as Campbell Soup Co., Fresh Aaron Blau (B.S. Adam B. Harrington Burt Rapoport (B.A. Cody Sperber (B.S. David Glanzrock Jody James Watkins hour mentoring conversation between Del Monte Produce Inc., Dole Food Co. Inc. and Sun-Maid Growers Management ’01) (BS. Finance ’00) Marketing, ’71) Finance, ’06) CEO, (B.S. Supply Chain (B.S. Operations and a professional and a graduate student of California, as well as an audience of more than 200 industry President, The Blau Founder and Managing President, Rapoport’s Clever Investor Management and Production Management, who is seeking to enhance his or her executives participating in judging via mobile device. Company Ltd. Principal, Victus Advisors Restaurant Group Inc. Marketing ’05) Assistant ’91) CEO, President professional knowledge and network. “The competition was a natural ice breaker that gave industry Scott Kaufmann (B.S. Vice President, Title365 and Founder, Watkins

professionals a reason to spark a conversation with students,” Matthew Michael Hawksworth Nathan Policar (B.S. Finance and Marketing Landmark Construction Traditional Mentoring Hughner says. “After the presentation, Michalowski (B.S. (B.S. Computer Computer Information ’02, MRED ’09) Steve Luhrs (B.S. This model connects alumni and un- several people commended the solid Finance ’09) President Information Systems Systems ’06, MBA ’09) President, Lucid Agency Agribusiness ’96) Tina Nunziato (B.S. dergraduate students for 8-9 months marketing plan, as well as Logan’s great and Owner, PXL Bros ’79) President, MSS President, StatBroadcast Founder and President, Marketing ’96) Owner of conversation, goal-setting and speaking style.” Technologies Inc. Systems Bionic Pet Products Inc. and Founder, Dr. Liz Cruz career discovery. All undergraduate Scheduled social opportunities only business students are matched with a added value to the experience. “With professional mentor and are expected sponsors like Sunkist Growers, Nestlé, to participate in meetings and attaining Earthbound Farms and more, the assigned milestones. conference draws major players in produce,” For more information, see says Hughner, “providing a rare opportunity for wpcmentors.chronus.com/about. CREAM of the CROP students to easily, naturally and comfortably mingle with higher-level industry executives.” he Sun Devil 100 celebrates meet with deans, visit classes, Tthe exceptional achievements and network with budding of alumni entrepreneurs and student entrepreneurs on ASU’s business leaders. Last year, Tempe campus. calendar OCTOBER NOVEMBER DECEMBER the inaugural class brought 17 “The ASU Alumni Association has of events ECONOMIC CLUB OF ECONOMIC CLUB OF 53ND ANNUAL ECONOMIC honorees back to ASU from across selected alumni and organizations ) 26 PHOENIX LUNCHEON 10 PHOENIX LUNCHEON 5 FORECAST LUNCHEON the nation, various industries, and from across the country that qualify Jason Clemens — Executive Vice Tony Sarsam — CEO, Ready Pac Phoenix Convention Center, diverse leadership teams. to receive this award,” said Christine President of the Fraser Institute Foods, Inc. Hilton Scottsdale North Ballroom This April, the Sun Devil 100 K. Wilkinson, president and CEO Westin Kierland Resort & Spa Resort & Villas, 6333 N. Scottsdale Rd. SE corner of 3rd St. and Monroe St. welcomed 20 new inductees — of the ASU Alumni Association. 6902 E. Greenway Parkway, 11:30 A.M. – 1:30 P.M. 11:15 A.M. – 1:15 P.M. including 13 alumni of the “These are organizations that Scottsdale RSVP at wpcarey.asu.edu/ecp RSVP at wpcarey.asu.edu/efl W. P. Carey School of Business — demonstrate innovation, growth and 11:30 A.M. – 1:30 P.M. to connect with one another, entrepreneurial spirit.” RSVP at wpcarey.asu.edu/ecp Events, details, and registration: wpcarey.asu.edu/events

8 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 9 WPC PROFILE

alumni community

he Basha Arizona’s grocer independents vie for the grocery dollar. Today, brothers From the beginning, Bashas’ has been a family the other major players in Phoenix are Fry’s were affair. The first generation were immigrants Food & Drug Stores Inc., Albertsons-Safeway sitting who came to Arizona and opened a dry goods Companies Inc. and the juggernaut Wal- around a store. Sons Ike and Eddie Basha Sr. started Mart Stores Inc., as well as an assortment table in their own business in 1932, opening the first of specialty and natural foods markets like the floral of what is today a chain of about 115 stores. Whole Foods Market Inc., Sprouts Farmers section Eddie Basha Jr. took over in 1968, and before Market and Trader Joe’s. Target Corp. has of one his death in 2013, he became an Arizona icon. added groceries to its footprint, and grocery of their A businessman, humanitarian and art collector, items can be found in drug and office supply grocery he served on the Arizona Board of Regents stores — even The Home Depot. So how does stores and ran for governor. Now four of his sons and a local chain compete? talking a nephew guide the company. “It’s incredibly difficult, there are no two ways about “One of the best things about being in about it,” says Ike. “I think our culture helps us what it business with family is that we collaborate — that commitment to our fellow members is at takes to with and trust each other,” says Trey. Ike a higher level than our competition.” Trey adds, thrive in their industry, when a silver-haired chimes in: “I’d say it’s easier to do business “Everybody likes a personal experience, but if we woman in a neat shirtwaist dress wheeled as a family, because everybody has a have to own something, it’s customer service.” by with her cart. “That’s the most beautiful common goal — there are no competing He might also have said that Bashas’ produce department in any store I’ve ever agendas or politics when it comes to the had a head start on been in,” she said to them. Clearly pleased, family’s outlook and our focus.” differentiation in an industry the brothers showered her with thanks as That sense of family, and the family’s where chains must either “Everybody she proceeded to the checkout. bedrock of fairness and honesty, infuses the “go big or go niche.” The likes a personal Many observers say that the Bashas’ business. The people who work at Bashas’ 49 Bashas’ Supermarkets experience, but Family of Stores rebounded from Chapter are “members,” not employees. The brothers around Arizona represent 11 bankruptcy in part because of the loyalty go so far as to say they are extended family. the traditional grocery if we have to of its customers and the support of its “We’ve always been very egalitarian,” format, but there are three own something, suppliers. Today the company is leaner and explains Trey. “For example, Basha family others under the Bashas’ it’s customer more profitable, and though consolidation members have the same medical benefits Family of Stores umbrella, service.” The Basha brothers: is sweeping the grocery industry, there’s no that a full-time clerk has. That’s something each tailored to a well- talk of selling the company. “It’s not just a that Eddie started, and we really have tried defined market. The 46 company to the people who work here,” said to blur the lines between management and Food City locations focus on the Hispanic Bashas’ spokesman Ashley Shick. “It’s a labor. We all have a job to do, but ultimately community, 11 AJ’s Fine Foods stores cater legacy, a family history and a commitment we all work for the customers that come to the gourmet market and 10 Bashas’ to Arizona to stay localized.” through the door. We understand that.” Diné Markets serve the Native American And the family is at the helm: the brothers This family-centered culture, they say, is communities around the state. are the third generation to lead the Bashas’ their competitive advantage. Another differentiator, and a “saving family of grocery stores. Edward “Trey” Basha grace,” was the distribution center in III, MBA ’02, is president and CEO; David The razor’s edge Chandler. In the early years a number of KEEPING Basha, MBA ’02, is vice president for real The Bashas’ chain operates in one of the top chains were using third-party suppliers, Trey estate; Ike Basha, MBA ’98, is senior vice two most competitive grocery markets in the explains. Lacking that wholesale advantage, EDWARD “TREY” BASHA III, (MBA ’02), IKE BASHA, president for strategic initiatives; and Mike country, according to Trey. The other is Dallas. none of them survived. Today, the distribution (MBA ’98), DAVID BASHA, Basha, MBA ’98, is senior vice president At one time metropolitan Phoenix hosted nine center continues to be a big contributor to (MBA ’02) and MIKE BASHA, for logistics. Their cousin, Johnny Basha, is major chains, he added. In most other cities the company’s success. (MBA ’98) IT FRESH senior vice president, special projects. two or three big players and an assortment of Mike directs the center, an around-the- 10 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 11 WPC PROFILE

alumni community

clock operation. He continues to find ways to streamline processes while ensuring that the right products get to the right stores every day. This allows the grocer to be quick on its Supply chains are closing the distance from farm to table By Jane Larson feet. Orders placed by stores in the morning are filled that day — something very important to customers who follow what’s on sale.

The best offense Upon emerging from Chapter 11 four years ago, the company was faced with aging stores and few opportunities to build. “It was really important for us to start updating our stores,” says David. He’s leading a remodeling initiative that will see one-third to one-half of all Bashas’ and Food City stores refreshed by the end of this year. Just one mile south of a new Fry’s and a new Sprouts, the store at Chandler Heights and Gilbert roads is a case in point for the LOCAL remodeling program. “We’re doing this offensively and defensively — and because it’s time,” says Trey. The stores that have been updated are already making an impact. “It’s been very beneficial — we’ve seen some great increases in sales — new faces, That reliance on data is nothing new smaller, consisting primarily of the departments new customers,” David says. “And we’ve seen to the industry, Trey says. “The grocery that now occupy the perimeter — the deli, morale increase. When our members see us business isn’t considered sexy, but we were bakery, meat and produce departments. And putting money back into the stores it shows concerned with logistics before UPS knew stores will balance two opposing trends: we’re here to stay.” what logistics was,” he says. “We’re always the emergence of foodies who want fresh Trey says the company is using on the forefront of technology. We were the ingredients, and the young people who are demographic and psychographic data to early adopters of credit and debit cards. Any either not interested in cooking, don’t have determine the work to be done at each store. technology that’s out there — we look at it the time to cook or don’t know how to cook. These are not cosmetic face lifts. “We marry and we use it if we can. We’re in the pennies That will probably mean more freshly prepared those two data points and come up with a business, so anything that we can do better, foods and meals, similar to the chef-prepared remodeling and remerchandising plan that’s faster, cheaper — we’re looking at it.” entrees that give AJ’s Fine Foods its cachet. customized for each and every store,” he Convenience may also come in the form of says. Even the advertising is tailored. Selling in the perimeter ready-to-cook packages that include a recipe Because grocery is in the retail sector, and measured ingredients. Moving into FLA- it goes without saying that the industry services, grocery stores might even begin to is experiencing change. So what will offer cooking lessons. “One of the best things about supermarkets look like in five years or so? The brothers were getting ready to “It’s hard to say with all of the interruption, head out for the day when Shick gathered being in business with family especially from online,” says Trey. them for a photo. They lined up in front of is that we collaborate with The center of the store is becoming a buckets of bouquets with store Director and trust each other,” says commodity business, he said, and he expects Jamie Mathis, who was approaching the Trey. Ike chimes in: “I’d say the square footage to shrink. “The pressure 28th anniversary of his employment with the is on to buy consumer packaged products company. There were smiles and laughter all it’s easier to do business as a in larger quantities, to get the discounts,” around as Shick snapped the shot. family, because everybody has he said. That trend favors big box stores like Whatever the future brings, the Bashas a common goal — there are no Costco Wholesale Corp., and Amazon.com — including their extended family members — competing agendas or politics Inc., with its automated ordering and home are determined to be in the business. “Each delivery. Bashas’ and other supermarkets will generation we’re working to make it better,” when it comes to the family’s find a different model. Trey says. “The last thing we’re going to say outlook and our focus.” He thinks future grocery stores will be is, ‘We’re there — we’re satisfied.’ Never.” VOR 12 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 13 COVER STORY WPC

illed from heritage grains helped raise awareness of what is local and grown on a Queen Creek what is not, he says. farm, Hayden Flour Mills’ The local agriculture industry’s “Arizona products easily fit the Grown” initiative, for example, has popular image of local succeeded in getting many grocery foods: Fresh food grown shoppers to recognize the campaign’s orange nearby, named after a labels on their spinach, carrots and other piece of local history and produce, and to put higher values on them. trucked short distances “Anytime you put the brand on anything, to grocery stores, you find consumers are willing to pay a restaurants and higher price because of that implicit microbreweries eager promise of quality,” says Associate Professor for distinctive flavors and of Agribusiness Renee Shaw Hughner, who new foods. helped study the “Arizona Grown” campaign. And it doesn’t hurt The top reason consumers bought “Arizona the four-year-old company Grown” foods, the research indicated, was that hundreds of chefs that they believed the local foods would from New York to San taste better than even organic foods grown Francisco regularly farther away. order its flour, or that Besides the factors of freshness, consumers young and old pay a premium for food crafted at some point by human hands. environmental concerns and local economic “Keeping your “It’s a little easier to grow in an area where people do want the product,” says Steve support, consumers like the opportunity to dollars local is Sossaman (B.S. Agriculture ’78), owner of grain grower Sossaman Farms. “A lot of the chefs build personal relationships with hometown always a plus. that do order from us do promote local, and they feel that their clientele appreciate that … producers and with entrepreneurial We produce Whole Foods, Sprouts lean toward more of the local, nutritious, organic thing, and their businesses that help create local products. clientele appreciate it. So it’s that market niche that makes sense.” “Keeping your dollars local is always a it here, it’s plus. We produce it here, it’s processed processed here, Consumers believe local is better “Total sales of local foods, however, here, we provide local jobs and sell it, and we provide local Suppliers, retailers, researchers and are growing rapidly due to the important those dollars come right back to the state jobs and sell industry experts agree that consumers are role retailers are playing in selling local,” of Arizona,” grower Sossaman says. “And demanding more locally produced foods, Richards says. you can have a social media relationship it, and those and they are doing so for a host of reasons. Indeed, more grocery chains are seeking with the farmer, the processor … That’s dollars come Consumers often perceive that local foods to both meet consumers’ demand for local another part of this that I find personally fun, right back to are safer, fresher and of better quality than foods and to tout the chains’ support of local exciting. I get to connect with something the state of foods from other regions or countries. They growers and producers. much larger than myself, with the food believe in supporting local businesses and “If there’s a demand for it, they’ll get it in industry, the foodies.” Arizona.” keeping dollars in their local economy. And the stores, and they know there’s a demand they feel they are helping the environment to buy local, especially in foods and Suppliers, retailers respond STEVE SOSSAMAN by doing their part to reduce long distance produce,” says Tim McCabe, president of to demand Owner, Sossaman Farms transportation of food. the Arizona Food Marketing Alliance, a food Whether consumers are millennials buying B.S. Agriculture, ’78 Consumers’ purchases at classic farm industry trade association. “And I think the Apple iPhones or Starbucks coffee, or baby stands and farmers’ markets, however, seem retailers want to make an impression on the boomers enjoying their higher incomes, to have plateaued. Such direct-to-consumer consumer that they do buy local, or they people are willing to spend more for higher food sales jumped 32 percent between do look locally and support people locally, quality products. Professor of Supply Chain 2002 and 2007, but were flat between 2007 especially if you’re a national chain.” Management Elliot Rabinovich, co-director and 2012, the U.S. Department of Agriculture McCabe says the local food trend started of the Internet-Edge Supply Chain Lab at reported in 2015. Professor of Agribusiness taking off five to 10 years ago as consumers the W. P. Carey School of Business, has Tim Richards says direct channels are limited increased demand for organic products, studied an East Coast online grocer, Relay because many consumers do not have especially in produce. Though organic Foods, with a business model that has access to them and because vendors cannot products are not necessarily local, federal allowed consumers to order local products sell in big quantities, nor do vendors have requirements that labels inform consumers online for delivery direct to consumers. access to capital to expand. about a product’s country of origin have “Because these are not your typical

14 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 15 COVER STORY WPC

products — they are specialty, meat and other perishable items. The demand grew, Hayden Flour Mills moved one million pounds of heritage grains a its expiration date leads to unhappy organic, hand-crafted types of additional spending that comes with out of its urban Phoenix location and is year, Sossaman says, and the company is consumers and damage to the food — the type of customer that local foods catches the attention of leasing bigger quarters at Sossaman already halfway there. company’s reputation. Just as the buys from Relay Foods is going to be mainstream retailers, who also sell local Farms. Sossaman is even constructing a Sossaman acknowledges some food alliance’s McCabe emphasizes willing to pay a premium,” foods to differentiate themselves and five-times-bigger building to house the mill, difficulties with producing specialty availability’s importance to retailers, TOP: BEN BUTLER is Rabinovich says. gain market share. baking classes and future shop, restaurant foods in small quantities. Hayden Flour Sossaman says small suppliers must the master miller at By selling to a niche market, rather The local economic effect is and pasta manufacturing facilities. Mills has learned to sell only to stores gear up when media attention drives a Hayden Flour Mills. than to consumers who buy groceries at important to retailers, too, McCabe Hayden Flour Mills’ goal is to produce with quick turnover, lest a product past surge in orders. BELOW, Heritage and warehouse clubs or dollar stores, sellers says. “They always wanted to support ancient grains grown can command higher margins on local their community, but several times in at Sossaman Farms: foods than on non-local foods. the past there wasn’t the availability” from left, buckwheat, Buyers of local foods also tend of products that met retailers’ higher heritage oats, hard white wheat, amaranth, to spend more during their grocery standards, he says. “They want a emmer farro, white shopping trips, Rabinovich says — due certain product and they just couldn’t IN SEASON: The winter produce supply chain Sonoran wheat and to the higher prices of local foods, but get it locally, or they couldn’t get black barley. also because an important fraction of enough of it locally.” nce upon a time, the only fresh fruits and growers are required to provide even more Supplying As local growers have geared up vegetables we ate were the ones in season documentation for their produce than their U.S. produce north of “Consumers like to meet demand, products are more Ofor our region. If you lived on the Upper West counterparts. the border is a readily available, McCabe says. Local Side of Manhattan for example, that would mean Other regulations seem less necessary, and can be complex, time- the opportunity products are also easier and less produce like lettuce, tomatoes and raspberries more disruptive. One example is the requirement that sensitive business. to build personal expensive to ship, and spend less time were available from about May through September. most drivers be replaced at the U.S. border, along But it’s also a big relationships in storage, than products from other Other than a pumpkin in November, and a few other with the power unit that is hauling the load. This dollar enterprise. regions or countries. select items, you’d be hard pressed to find any good inefficiency was supposed to have been eliminated by Maltz says that with hometown But retailers also face potential produce through the winter months. the North America Free Trade Agreement, according between $1.5 and producers and with drawbacks in selling local foods. But the business of agriculture has changed all that, to Maltz, but nevertheless persists today. $1.7 billion worth entrepreneurial Local products might cannibalize supported by a dynamic supply chain that stretches This is especially problematic because the industry of product annually businesses that sales of products from elsewhere. 3,000 miles all the way to Sinaloa in western Mexico. is facing an enormous shortage of long-haul drivers. passes through Competitors might cut prices to “Produce staples are now year-round,” says “We need 60,000 more drivers,” says Gatzionis, “the the main port of help create local take back market share. Wholesale Associate Professor of Supply Chain Management older guys are retiring and younger people don’t want entry for Mexican products.” prices can run higher, and the Arnold Maltz. “But just think what it takes to keep to do it.” Even pay hikes of about 15 percent or more produce at Nogales. He cites U.S. census data, logistics of sourcing small quantities those produce aisles filled.” in the last two years haven’t helped much with which reports that four of the top 25 commodities those buyers find one-stop shopping from multiple suppliers can be more Nick Gatzionis (B.S. Agricultural Finance ’08, recruiting drivers, Maltz notes. imported into Arizona are fresh produce, including more convenient. While some buyers complicated. M.S. Agriculture ’10), whose family has been in the Another major challenge for growers like Gatzionis tomatoes, bell peppers and cucumbers. To are “stock-up” consumers, buying a Availability, Richards says, is the business of providing winter tomatoes, bell peppers is anticipating demand. Sinaloa tomato growers streamline the entry process, Nogales recently range of items for the week, others are biggest problem with local foods. and cucumbers to the northern regions of the United compete with growers in Florida in supplying the opened a state-of-the-art port facility, which is “top-off” consumers, who buy in small National retailers might have to use 20 States since the 1930s, knows exactly what it takes. Midwest and Northeast. Weather, pricing and “fantastic,” according to Gatzionis. quantities or for special occasions. sources to supply 10 stores instead “Total shelf life is about two weeks,” says Gatzionis. availability in Florida can all impact demand at the Mexico has been improving its infrastructure as The higher prices for local foods of using one supplier for 200 stores, “It takes two days to harvest and load, then another Arizona border. well, Maltz reports, significantly upgrading roads are also a function of limited supply creating big logistical problems. four days to reach New York City in time to give Gatzionis recounts how two years ago tomatoes running east from Sinaloa. This has led to a 15 and rising demand, Richards of the Hayden Flour Mills and Sossaman grocers a week to sell it before it all goes bad.” were in such oversupply that there weren’t nearly percent increase in produce crossing the southern Morrison School of Agribusiness says. Farms have ramped up to meet Making this happen requires a continuous cold enough buyers. “Soon the food banks were full, and border through the Texas ports of Laredo and Limited supplies give high quality demand. The farm started out storage chain, from the packing shed beside the certain growers couldn’t even give them away. Hidalgo over the last five years. “Now that the roads growers and suppliers an edge in growing three varieties of grain on 30 fields, to refrigerated trucks, to temperature-controlled Thousands of pounds were dumped,” he says. “One are improved inside Mexico, it’s a viable route to the negotiating, though they still need to of its 800 acres, including the White warehouses often with enclosed docks, all the way to company installed grinders so they could send it Northeast and Midwest.” ship consistent quantities of high Sonora wheat well-suited to a hot, dry the grocer in your neighborhood. directly into the sewage system, and there was so much Another industry trend is the increase in organic quality produce to keep their contracts climate and first brought to Arizona “The second our produce starts growing is the they had issues with the water treatment plant.” growing. But while organic produce brings a premium with retailers. As supplies rise, he sees by missionary Eusebio Kino. The crop second it starts to depreciate in value,” Gatzionis Gatzionis’ company, C.A.B. Produce LLC, hedges price in the stores, the demand for it isn’t strong buyers gaining more of a negotiating is now up to eight wheat and barley says, meaning speed and efficiency are at a premium. its risk by selling about 30 percent in advance on enough yet to attract C.A.B. Produce. “In due time, edge, but local foods will always varieties, and acreage has doubled It’s not magic, but making warm-weather produce contract to large retailers like Wal-Mart Stores Inc., we’ll probably have to get into it,” says Gatzionis, “but carry a premium because the cost of each year, Sossaman said, fitting appear in markets throughout the winter months is the Kroger Company and Subway to cover costs. right now a lot of the organic producers sell part of producing and selling them is higher. easily into the crop rotation with his highly challenging. Regulations are another formidable Retailers generally mark up their produce 200 their produce conventional, as non-organic, because The local foods trend is entering major crop of alfalfa. obstacle. The Food and Drug Administration requires percent, but growers have little leverage to benefit market share isn’t there yet.” mainstream retailers in full force, The milling company grinds the grains complete traceability all the way back to the field from such margins. Even as the industry evolves, this unique supply Hughner says, especially because with a stone mill whose lower heat levels in which a particular crop was grown, in case “It’s a buyer-driven supply chain,” says Maltz, chain is likely to continue to thrive. “Demand has consumers tend to choose their maintain the grains’ nutrients better contaminants like salmonella are identified and must “because there’s so much competition among been there for 60 years,” says Maltz, “and it’s grocery store based on its produce, than modern industrial processing. As be contained. According to Gatzionis, Mexican suppliers. This is true with produce all over the world.” going strong.”

16 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 17 COVER STORY WPC

Food for thought: Marketers gain from consumer angst Delivering the goods in new ways manufacturers, third-party distributors market will help local food producers, Logistics plays an important role in the and retailers until it reaches consumers. because they will have more chains that nalysts calculate the United the study group watched a movie didn’t ask this, but might in a follow- supply chain, especially because “local” So there are a lot of hands that the can carry their products. For their part, States’ weight loss industry clip and ate cookies. up study: “When you looked at the might not be as close as consumers product or ingredient has to go he says, local producers must innovate A to be worth some $60 “We were secretly measuring nutrition information, why did you not think. The Food, Conservation, and through,” says Min Choi, a Ph.D. and add to their product lines to keep billion. If you’re marketing to the how much they ate,” Mandel says. use it?” Energy Act of 2008 defines local or candidate in the Department of Supply consumers interested. 70 percent of U.S. residents who “Dieters who wrote down the regional products as those produced Chain Management at W. P. Carey. “If Professor Rabinovich sees local foods, carry surplus bulk, you might think message ‘All sugary snacks are Cooties curb appetite, but within a state’s boundaries or whose some contracts decouple ownership subject as they are to factors such as providing low-calorie food and bad’ ate more than dieters who death and multi-tasking total distance from source to consumer from responsibility, or ownership from weather and seasonality, remaining a healthy information will surely help wrote down ‘All sugary snacks are fattening is less than 400 miles. management ... retailers won’t care niche market that will not displace other consumers conquer corpulence. are good.’ For non-dieters, there In other research, Morales found Third parties like States Logistics much … It’s not their loss.” produce at large retailers. Nor does he But, eating behavior is more was no effect.” Morales explains that when chocolate chip cookies Services, which has operations in Choi’s research into perishable see retailers displacing farmers’ markets, complicated than calorie counting that the condemnation of sweets touched the box of a feminine Arizona and California, focus on linking bakery items sold at four major where consumers and suppliers can make and simple restraint. Here’s a quick “made them more appealing and hygiene product on a store shelf, local food manufacturers to retailers supermarket chains indicated that the personal, face-to-face connections. look at some of the lessons three activated a compulsion to eat the shoppers found the cookies far and providing the warehousing and share of damaged and expired products He does think local suppliers are a researchers from the W. P. Carey sugary snacks.” less appealing. Yet another study transportation options that the smaller increased 2.5 percent under scan- good fit for consumers who want to order School of Business have uncovered. indicated that, “The busier you are, firms would be hard-pressed to do based trading compared to vendor- foods online. Farmers’ markets can’t Eating out the lower your ability to assert self- on their own, says Jim Kallof (B.S. managed inventory. Her research did scale significantly, and grocery chains, Dieters think differently For yet another study, Morales control,” Morales says. Marketing ’77), business development not specifically focus on local foods, but even if they wanted to take the risk, can’t Consider the 100-calorie snack pack. examined whether choices made by Meanwhile, Mandel got people manager for States Logistics. given that popular local foods include stock everything. According to marketing professors the person in front of you at a fast thinking about negative events — States Logistics responded to the perishables like fresh produce and “You don’t have those shelf-space Andrea Morales and Naomi Mandel, food venue might impact what you either a painful medical procedure or local foods trend 10 years ago by bakery goods with few preservatives, limitations on the Web,” he say. “The if you purchased those for weight choose yourself. “What we found death itself. In multiple experiments, adding a division that wraps and labels she suggests that local suppliers other thing that’s different is the way order loss, it probably backfired. These is that the degree to which you the people who were asked to write producers’ local items, enhancing consider the reputational and financial fulfillment works in an online environment. professors conducted an experiment anchor on what that other person a brief essay about death were packaging to give the products better risks of increased waste when deciding You have the luxury as a retailer to not have where they gave people snacks in has chosen is highly dependent on more inclined to buy or eat greater play on retailers’ shelves. Manufacturers which type of contract to sign. to stock the inventory if you don’t want to. varying size bags to nibble on while the body type of that individual,” amounts than those who didn’t also don’t have to ship foods hundreds On a positive note, Hughner found You can usually pick it up the day of the answering a survey. Morales explains. “If they’re really have to think about their end of of miles away for packaging, a move a new one moves into town from beverages they buy, and the largest that consumers who joined community- order, versus a retailer who usually has to As Mandel explains, “The heavy, you tend not to do what they days. She calls this “compensatory that Kallof says helps reduce the carbon California and other states.” shares are fruits and vegetables, supported agriculture, or CSA, have the inventory available on the shelves non-dieters did what you would do. If they’re skinny, you may use consumption,” something we do footprint of transporting local foods. according to the Natural Resources programs felt guilty if they wasted when consumers show up.” expect: they ate more from bigger that as an excuse to eat more … or to escape the negative feelings we The logistics company also Still unsolved: food deserts Defense Council. It recommends local foods. Members pay to belong to The Morrison School’s Richards thinks packages and less from smaller less. The most dangerous person often have when we consider our consolidates deliveries from multiple and waste that consumers start planning and such programs and get weekly boxes online is the future for local and all other packages. Dieters do the opposite. to have lunch with is a really skinny own demise and question how well small suppliers, making one trip to For all its progress, the local food shopping more wisely, understand from local growers of whatever fruits foods, because it allows consumers to They eat more from small packages, friend who eats a lot.” we’ve lived or will be remembered. a retailer’s dock instead of many movement has big challenges to expiration dates and buy more and vegetables are in season. Her use one portal to order a customized mix actually going back and opening Carola Grebitus, an agribusiness All of this research leaves this trips. Consolidation reduces the resolve. One is the existence of imperfect yet still-healthful produce. research showed that besides easing of foods, and it helps retailers source more packages.” professor, had a different result with trio convinced that eating behavior is number of truck deliveries, scheduled food deserts — neighborhoods that Food waste also can increase as guilt, consumption of produce greatly from large numbers of small growers Why do they do that? Mandel says people who were eating together. complicated. “A person’s weight is delivery times help make operations lack mainstream grocers and are more big retailers shift away from a increased when consumers obtained it and producers. “The combination of low she and Morales concluded that After watching and surveying diners determined by more than just more efficient and full loads improve dominated by convenience stores and vendor-managed inventory model, in from their CSA program. search costs and high variety,” he says, dieters interpret the small packages in an on-campus cafeteria, she willpower. There are so many handling efficiencies and reduce mom-and-pop shops. which the retailer takes ownership “will mean higher food prices paid willingly as diet food, so it’s OK to eat plenty observed that, “If you are eating factors lurking below the surface damage to products, Kallof says. Contrary to popular belief, Hughner of products upon delivery, and The future of local foods by happier consumers.” of it. She also says that dieters are something that we would probably that are both psychological and Kallof agrees that the local food says, various studies have found that increasingly adopt a new model called The local food movement won’t fade The food alliance’s McCabe sees “constantly trying to monitor their consider rather unhealthy — like physiological,” Mandel says. trend is growing, because the the cost of local foods does not deter scan-based trading. Under the SBT anytime soon, experts agree. the local food trend getting stronger weight, so they’ve sort of lost their pizza and pop — and you are eating Grebitus echoes that view and numbers of organic and local stock- consumers in food deserts from buying model, suppliers own their products’ Though growers must deal with their as more consumers focus on nutrition, natural impulses that tell you when to in a group with at least one obese adds a note of compassion: “We keeping units, or SKUs, he sees at them. Rather, the problem is that small inventory, even as it sits on a retailer’s geographical constraints, Sossaman ingredients and freshness. When local stop eating.” Non-dieters, however, individual, you will eat even more. want everyone to make healthy food major national food shows continue to stores lack the refrigeration and other shelf, until a cashier scans the product says he would like to see growers in growers and suppliers gear up to ensure quit when hunger goes away. Your calorie intake will be even choices, but it is so complex, we just rise. In Arizona, there is more room for infrastructure needed to keep such and sells it to a consumer. other parts of the country raise their the right products are available, they will In another experiment, Mandel and higher,” she notes. need to give people credit for trying,” foods and producers. foods fresh. On top of that, transporting The model is attractive to small own heritage grains and set up their benefit from being close to buyers and Morales found that dieters rebelled In the same cafeteria study, she says. “Everyone is always trying to bring small volumes to multiple small stores suppliers in particular because it offers own local food hubs. However, they shipping short distances. He doesn’t agree against health-related messages. The Grebitus asked whether people in new foods locally, but a lot of in sparsely populated areas can be too access to real-time sales and inventory face the expense and subsequent risk that consumers will do all their grocery scholars told study participants that noticed the nutritional information that depends, too, on the number of expensive to be profitable. information and to quicker payments. of building mills to process the product. shopping online. “Although more and more they were taking handwriting tests in associated with foods on the companies moving to the Phoenix Another challenge is the vast But it also reduces retailers’ incentive Logistics professional Kaloff thinks are doing that, we find that when it comes which participants answered a short cafeteria menu boards. Nearly half metro area for production and amount of perishable foods wasted to ensure that items remain undamaged the entry of chains like Sprouts to things like meat or fruits and vegetables, survey and wrote sentences supplied did and, of those, 56 percent manufacturing,” Kallof says. “I don’t throughout the supply chain, especially and sell before their expiration dates. Farmers Markets and Vitamin Cottage people like to touch it,” he says. by the marketing professors. Then, used that information in think we’ve got as many as we’d by consumers. Americans throw out “The supply chain involves a Natural Food Markets Inc. into metro Consumers, the future is back in your the researchers asked the study making wiser food choices. really like to have, but every so often about 25 percent of the food and number of entities, from suppliers, Phoenix’s already competitive grocery hands. participants to evaluate snacks, so Grebitus adds that she

18 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 19 LIFESTYLE WPC

SPEAKERS

JAMES BULLARD President and CEO Federal Reserve Bank of St. Louis

The most trusted ANTHONY CHAN Chief Economist economic forecasting Chase DAVID WETTA (B.S. Business, ’80) stands event in the Valley. outside Postino Annex near Sun Devil Stadium. His development company U.S. economic growth continues at a historically low renovated the historic rate. The stock market has reached record levels. Will the building, now a popular Federal Reserve increase interest rates? destination.

Join us at this year’s luncheon where the LEE MCPHETERS top national and regional experts will present Research Professor their economic forecasts and advice on these of Economics issues and more. W. P. Carey School of Business 53rd Annual ASU/JPMorgan Chase Director JPMorgan Chase he more than one million Economic Forecast Luncheon Economic Outlook Center restaurants in the United States generate a total of almost Monday, December 5, 2016 $800 billion in sales each 11:15 am – 1:15 pm year, according to the National Restaurant Association. It’s big Phoenix Convention Center A diverse business, and it’s an industry North Ballroom that has to adapt quickly to ever-changing Tconsumer preferences. To get a closer look at SE corner of 3rd St. & Monroe St. Phoenix, AZ current trends and what it takes to flourish, we caught up with several W. P. Carey School of For information and registration go to wpcarey.asu.edu/efl Business alumni who understand that there is palate more on the menu than kitchens and behind- Succeeding in the the-scenes details at thriving restaurants across The net proceeds from the luncheon allows the Department of Economics to provide scholarships for outstanding students the country. as well as support other academic and professional activities in the department through the ASU Foundation, a separate restaurant industry non-profit organization which exists to support ASU. Playing it cool By Teresa Esquivel In any conversation about trends, one word is sure to pop up: millennials. Millennials, 75.4 million of them DAVE WETTA PRESENTED BY PROMOTION & LIVE RADIO SUPPORT PROVIDED BY

WPCAREY.ASU.EDU / AUTUMN 2016 21 DEPARTMENT OF ECONOMICS LIFESTYLE WPC

between the ages of 18 to 34, are impacting nearly BURT RAPOPORT (B.A. “My dad started the restaurant in 1946, then decided to take a look at what it’s going to take to and craft cocktails. We’re doing some of this every industry, including restaurants. Marketing, ’71), president I ran it for about 40 years,” says Steve Johnson be around for the next 70 years and continue to be in some of the restaurants to help bring in a Experts say that these young adults saw the of Rapoport’s Restaurant (B.A. Business, ’72), who opened the family’s first like the company my dad started.” younger demographic.” impact the recession had on everyone around Group, plans to open his fifth Scottsdale location while still a student at ASU. them, and now that they’ve come into their own, are concept this fall. “We’ve served a lot of meals over the years and Mixed plate Large party doing things a little differently than their parents and we’re proud of it. We have a lot of people who Burt Rapoport (B.A. Marketing, ’71) also juggles Acting on trends can be a good way to bring in grandparents. Experiences, for example, hold more have eaten at our restaurants for years and if you multiple locations as president of Rapoport’s more diners, but sometimes a restaurant simply value to them than material goods. The quest to change their food they get very upset. It’s a very Restaurant Group in Boca Raton, Florida. He can’t make many changes. For Boccaccio’s socialize and gather experiences, coupled with the fine line when you’re trying to update your menu currently operates four restaurants — Deck 84, Restaurant in Westlake Village, California, for ability to communicate on multiple platforms from and not disappoint the customers who have been Burt & Max’s, Bogart’s Bar & Grille and Henry’s — example, sweeping adjustments to the menu are their phones, has made sharing a visit to a “cool” coming for a long time. But it can be done.” with a fifth, Rappy’s Deli, opening this fall. just not possible. place a form of social capital. Over the years, the traditional Mexican menu After a long day of managing employees, “The restaurant originally only sat about 65 “Cool places that are interesting, engaging, has been tweaked to include heart-healthy items revenue, expenses, sales, purchasing and other people, and now we seat about 250 people, but desirable and well-designed are sought after,” says and, more recently, dishes with a spicy kick to administrative issues, Rapoport and his wife visit the kitchen has not changed in size,” says Joseph Mark Stapp, director of the Master of Real Estate meet changing consumer tastes. Also new is a two of the group’s restaurants at least five nights a Ieraci (B.S. Finance, ’90), part owner of the Development program at the W. P. Carey School test kitchen for developing new recipes and a week, “sometimes six, sometimes seven,” he says. restaurant. “Our menu has to be something that of Business. “Restaurants have become a nexus tequila program at the Shea and Mesa locations. But this is nothing new for someone who lived we can create out of a small kitchen for a large for social interaction and gathering. And the space Some of the biggest changes involve the above and worked at the Manhattan restaurant number of people, so we’re limited in how much and the food are not mutually exclusive. Restaurants restaurants themselves. There are now a total his grandfather opened in 1923. He’s a lifer, and we can offer, and the menu changes very little. have to curate an experience. We use the words of 12 in Arizona, as well as two in Nevada, but he knows what it takes to make it in an often We focus on quality and good service to keep ‘authentic’, ‘contextual, ‘quality’ and ‘local’ to define beyond expanding the brand, the family has had fickle industry. people coming back.” interesting places.” to continually update the dining spaces. “I’ve found over time that the most successful And come back they do, as much for the A prime example of this is Taco Guild in Phoenix. “You have to bring a restaurant to life every restaurants are those that appeal to the broadest continental cuisine as for the restaurant’s While the margaritas and guacamole served there seven to eight years to be able to keep it going. base,” he says. “Restaurants don’t necessarily location on the edge of a picturesque manmade are tasty, it’s the building — a former Methodist You just have to keep pumping blood into have to fit into trends, but most restaurants have lake — and even to see Ieraci himself. church built in 1948 — that makes it a special it,” Johnson says. Bit by bit, the restaurants to evolve to stay alive.” “This is a hands-on operation that requires gathering spot for diners of all ages. are changing, from the interior design to the For this company, that has meant buying a a lot of time,” he says. “It’s something I grew “It’s very satisfying to watch the look on people’s employee uniforms to the background music. truck for home and office delivery, and adding up doing at my family’s Italian restaurants, so faces when they walk in for the first time,” says gluten-free and vegan items to the menus. for me it’s not out of the norm. But it’s a dying David Wetta (B.S. Business ‘80), founder of Wetta “We found out that 80 percent of the people breed, something like this. Most places have Ventures. “Their eyes get big and their heads roll from order 20 percent of the items,” he says. “So multiple managers. My partner and I run the one end of the building to the other. The space leaves “We found that 80 percent those 80 percent, that’s our core group, and place ourselves with another part-time manager, you moved in a special way.” of the people order 20 those 20 percent of items will never change. because of the rising costs in California. We Wetta, a real estate developer specializing in They’ll stay on the menu indefinitely. But the grew up in this community and support the local small-scale and in-fill sites, purchased the acre-and- percent of the items. So other parts of the menu are where we experiment schools and some local charities, so even though a-half parcel of land and completed the infrastructure those 80 percent, that’s with things and move things in and out and see the food doesn’t change, people just like to see work on the church and one of the remaining school our core group, and those what hits and what doesn’t hit.” us here.” buildings in preparation for tenants who would Although Rapoport sees local sourcing and Despite all that, the restaurant struggled when complete the build-out and interior design. 20 percent of items will sustainability as the top trend in the industry, for the economy turned in 2007-2008. To stay afloat, “When we first put the church on the market never change.” his group of restaurants it is more of a standard the partners refocused their efforts on drawing for lease, there wasn’t a lot of interest. The mid- than a novelty. The group helped the Florida in large groups of 100 to 150 people, rather town submarket and an old church building left create a sense of place. On the same property, than a building, a patio and parking spaces. My role Perhaps the biggest change is that the Department of Agriculture and Consumer than parties of two and four. Corporate events, most local operators, let’s just say unmoved.” there’s a Starbucks housed in what looks like is to find the locations and buildings, renovations trademark Aztec-inspired building on Central Services roll out its “Fresh From Florida” rehearsal dinners, baby showers, bridal showers Wetta says. “It hadn’t been done before and they a drive-through bank built in the middle of the or new construction that provide the opportunity for Avenue in Phoenix is being torn down. Multi- restaurant program, which supports the use of and even an annual Sun Devil Send-Off for didn’t know what to make of it. Then the Taco last century. But it only looks that way; it was restaurant operators to express their creativity family housing will go up in its place, and local produce and seafood on menus, and it’s a incoming ASU students helped them through the Guild guys walked in and said, ‘This is it, this is constructed in 2013. in special ways for the benefit of their customer the restaurant will move just to the south, program it is committed to for the long haul. rough years. what we’ve been looking for.’ Now everybody “You can create a special sense of place and and employees.” transforming a former garage into an energetic He is, however, making changes to attract what “It’s a lot easier to get a group of 100 than to wants one. But the beauty of it is there’s only one create an experience for people by simply executing space inspired by Woody Johnson’s original he calls the No. 1 target diner: millennials. get 50 tables of two inside your restaurant,” Ieraci in the Phoenix metro.” thoughtful design and development,” Wetta says. Seasoned veteran 1946 restaurant. “They are the largest group that eats out right says. “We took that direction many years ago But that doesn’t mean it’s the end of the “It’s more expensive and takes more time, and Even established restaurants evolve to suit the current “It was a tough decision because we’ve been in now,” notes Rapoport. “The trend toward small when the economy went south, and we just stayed world. As Wetta points out, adaptive reuse or requires a lot of patience, but as a restaurant climate. Consider Macayo’s Mexican Kitchen, which that building for so long,” says Sharisse Johnson, plates with big flavors is driven by millennials, on that path. We’re staying the course. We’ve renovation of old buildings is not the only way to developer you need to provide something more celebrates its 70th anniversary this fall. Steve’s sister and CEO of Macayo’s. “But we and there’s a huge push toward craft beers found the formula that works.”

22 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 23 SPOTLIGHT ON RESEARCH

In the study focused on these lending models, researchers found that geopolitical interest Accounting or allegiance: What “had the highest really opens World Bank coffers? explanatory power,”

Lamoreaux says. “It fit sk the 3,000 impoverished to make money … to generate profit for is, by far, the largest of World Bank’s 189 the lending data best.” Ethiopian women who received shareholders,” Lamoreaux explains. “That’s a member countries, and other researchers special credit lines so they could secondary objective for World Bank.” had already found that the bank’s lending start their own businesses: Still, World Bank does have shareholders of appeared to be motivated by both economic World Bank loans change lives. a sort. “Its member countries put money into and political forces. AAnd, they should. After all, this institution’s the World Bank, and the U.S. is the largest Specifically, other researchers looked motto is “working for a world free of poverty.” investor,” Lamoreaux continues. In fact, the at World Bank lending in reference to four Still, as Phil Lamoreaux points out, “World U.S. holds some 15 percent of shares. The models of motivation. The “needs model” Bank has lofty stated ambitions but, at the next highest level of financial backing came maintains that money goes to the countries end of the day, it loans money and it wants from the United Kingdom, which has a four- with the greatest need for aid. The “just that money paid back.” percent share. deserts model” says it goes to those nations Lamoreaux, a professor of accounting that deserve it. The “benevolence model” at the W. P. Carey School of Business, Accounting matters holds that World Bank officials simply follow decided to see if getting the money Because World Bank lends money primarily their charter, handing out funds to fulfill back appeared to be a driving force in to alleviate human suffering, lending rates are their goal of ending world poverty. Finally, World Bank lending behavior. In a paper predicated on the length of the borrowing the “politico-economic model” posits that published in The Accounting Review, he term rather than on default risk, which is the bank officials will use political interest as a reported that accounting and audit quality construct firmly behind a commercial bank’s guide. In the study focused on these lending did seem to matter, particularly when the interest rates to borrowers. Still, accounting models, researchers found that geopolitical Research by nations looking for a loan were well known matters, because when accounting quality interest “had the highest explanatory Phil Lamoreaux for corruption. But, even more important is low, World Bank officials will likely need power,” Lamoreaux says. “It fit the lending Assistant Professor of Accounting was the correlation between loans and to monitor projects more closely than they data best.” another factor: the borrower nation’s would when they can rely on high-quality, As it turns out, complementary results geopolitical alignment with the interests of audited financial statements. That adds cost showed up when Lamoreaux examined World the United States. to the loan. Bank activity, too. “From what we observed This is why Lamoreaux and his fellow in the data, the quality of information they Peas and prosperity researchers — Paul Michas, University of thought they’d get back influences what Just what is the World Bank? Started Arizona and Wendy Schultz, University of they’re willing to lend.” after World War II, it was created to help Manitoba — hypothesized that accounting But, he adds, “accounting and auditing nations rebuild, Lamoreaux says. Today, the quality would raise the likelihood of a nation’s only matter in countries with relatively high organization funds a variety of projects in aid workers getting World Bank financial corruption levels.” middle-income and creditworthy low-income support. The researchers also thought What’s more, if there’s a nation with nations. Recent initiatives include backing audit infrastructure would have impact geopolitical interests that are aligned an agricultural project that disperses seeds because each financed project must have an with those of the U.S., that too will raise a and seedlings to restore food security in independent auditor watching cash flows. borrower country’s chances of getting a loan Africa, building new health care facilities in In addition, the research team examined and toss the importance of accounting or Cambodia, bringing clean water sources to a nation’s reputation for corruption. If it audit quality aside. parched rural villages in India and raising was high, they figured bank staff would be Lamoreaux says his findings confirm literacy levels in Papua New Guinea, where more attentive to accounting standards and those of other researchers. “Geopolitical nearly 40 percent of the population can’t read. audit quality. influences impact what World Bank does,” “The key difference between World Finally, the researchers looked at whether he concludes. When political influences are Bank and a commercial bank is that the loans were made to countries geopolitically strong, “accounting and audit quality really commercial bank’s purpose is essentially aligned with the U.S. That’s because the U.S. don’t seem to matter.” — Betsy Loeff

24 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 25 SPOTLIGHT ON RESEARCH

“If only the husband As disincentives to work, higher works, and he taxes affect women more works the average number of hours, n 2004, Nobel Laureate and W. P. Carey The easiest way to understand Bick’s study taxed separately, as in Sweden, each spouse’s Professor of Economics Edward C. is with a concrete example. Bick offers up three income is taxed at the rate set for that level the average income Prescott started the debate about why countries: the U.S., Germany and Sweden. of income, so a wife earning less than her tax rate is about Europeans, as a whole, work so much less In the U.S., average tax rates are low, and husband would be taxed at a lower tax rate. than Americans. His answer: Europe’s married couples are taxed jointly. In Germany, In Sweden, the benefits of separate taxation 33 percent in Germany Ihigher taxes dull the incentive to work. average tax rates are high, and married for wives’ income actually cancel out the and Sweden, and Alex Bick, also an economics professor couples are taxed jointly. In Sweden, average disincentive of the higher tax rate. at the W. P. Carey School, has taken the tax rates are high, and married couples are 21 percent in question a step further: could tax differences taxed separately. Why women work less than men the U.S.” also explain differences in how much married If only the husband works, and he works the Bick’s research sheds light into why, on men and women work? It turns out, yes. average number of hours, the average income average in Europe and the U.S., married In a recent working paper, Bick and his tax rate is about 33 percent in Germany and women work less than married men. co-author, Nicola Fuchs-Schündeln from Sweden, and 21 percent in the U.S. That lines Consider the earlier example: in both the Goethe University Frankfurt, compare the up well with the fact that married men work U.S. and Germany, the high marginal tax aggregate number of hours worked by about the same number of hours in Germany rates on the secondary earner implied by joint married men and married women in the and Sweden, and more hours in the U.S. taxation reduce the incentive to work drastically. United States and Europe. “But if the wife works as well, the picture The opposite is also true: lowering the tax For Bick, the answer begins with an looks quite different,” Bick says. The average burden incentivizes work. Bick says that a third understanding of differences in hours marginal tax rate on wives’ earnings, i.e. of the increase in married women’s labor force worked between Europe and the U.S. how much tax the couple has to pay on the participation from the 1980s to the mid-2000s “Given what we know from Prescott’s work, additional income earned by the woman, is can be explained by tax reforms that decreased it was no surprise to find that married men about 29 percent in the U.S. and Sweden the marginal tax rate on secondary earners, work less in Europe than in the U.S.,” Bick and 50 percent in Germany. As for men, which is historically and still today in the explains. “In addition, the number of hours these differences are in line with the observed majority of couples the woman. worked by married men is fairly consistent differences in the data: married women work Policymakers could lower married women’s across Europe.” about the same number of hours in the U.S. tax burden by changing the progressivity of The findings about married women, and Sweden, and far fewer hours in Germany the tax code or changing the tax treatment of though, were quite different. Bick explains, (34 percent fewer). The higher the taxes, the married couples. On the first, Bick says that “Married women in eastern Europe and greater the disincentive to work. progressivity affects men too, but because Scandinavia work far more hours than In each country, the relative strength of women are less likely to be primary earners, married women in western and southern the disincentives for married women to work and more likely to not work, the progressivity Europe. In fact, they work only slightly fewer depends on both the progressivity of the of the tax code affects them more. hours than married women in the U.S.” tax code and the tax treatment of married Sweden makes clear that progressivity Why do the cross-country comparisons couples. Progressivity reflects how fast the alone isn’t necessarily a disincentive for look so different for women and men? tax rate paid on an additional dollar earned married women to work, if the couple’s income Research by Clearly, there are many reasons for these (the marginal tax rate) increases with overall is taxed separately. “So if a country like Alex Bick differences, but, Bick says, a significant part level of earnings. In cases where married Germany wanted to increase the numbers of Assistant Professor of of the answer is taxes. couples are taxed jointly, as in Germany and hours worked by married women,” Bick says, Economics the U.S., the two incomes are combined “a good policy to consider would be changing Cross-country tax differences and then taxed at the same marginal tax rate the tax treatment of married couples so that Bick’s conclusions have nothing to do with for that combined level of income. For most their incomes are taxed separately.” gender per se; they are about how taxes affect married couples in the U.S., this implies that From Silicon Valley to Washington D.C., the work incentives of the secondary earner in the spouse with the higher earnings ends up many ideas have been offered up to help a married couple. On average, married women in a lower tax bracket, and the spouse with the women get into and thrive in the workforce. in the U.S. and Europe work fewer hours and lower earnings ends up in a higher tax bracket, Alex Bick’s research shows that tax code earn lower wages than married men, such that compared to an unmarried couple with the reform, as unromantic as it may be, deserves in the majority of married couples the woman is same earnings situation. its place with the best of those ideas. the secondary earner. In countries where married couples are — Molly Castelazo

26 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 27 SPOTLIGHT ON RESEARCH

DOCTORAL STUDENTS EUNAE YOO BETH SCHINOFF ALLAN Fourth Year, Supply Chain Fifth Year, Management — 2016 HERNANDEZ Management John W. Teets Outstanding Fifth Year, Economics The new generation Undergraduate Teaching — 2016 Top Teaching Academic preparation: Assistant Assistant Award, ASU of knowledge pioneers B.S., Accountancy and Graduate and Professional Supply Chain Management, Academic preparation: Student Association esearch is at the heart of the doctoral experience. Soon after W. P. Carey School of B.S., Communications Studies, arriving on campus, students start searching for answers to their Business, followed by Northwestern University; MBA, Academic preparation: research questions, and most publish their work in journals long direct admission to the University of Illinois at Chicago B.S., Economics and before they graduate with the title “doctor.” doctoral program M.S., Economics and Applied Mathematics, Students work closely with W. P. Carey School of Business Why I am pursuing a Ph.D.: I was working full- Universidad de Costa Rica; M.A. Economics, professors who are conducting groundbreaking research in Why I am pursuing a Ph.D.: My family time at a non-profit and getting my master’s at the Northwestern University Rvirtually all of fields of business. Often they choose a school based on the instilled a commitment to service in me from an same time. I realized that in school, I was using my early age. As an undergraduate, I learned about brain in new and exciting ways. I also started doing research agenda of its faculty. It’s a close intellectual relationship, often career- Why I am pursuing a Ph.D.: I like the idea humanitarian logistics, which unites my interests research with a professor in organizational behavior I long, as students eventually become peers and research collaborators. that you are in charge of your own agenda, you in supply chain management and public service. revere and I thought, this is so cool — you get to ask “Some say that the attention paid to delivering a quality Ph.D. program is an challenge yourself every day and you are working This motivated me to do research in the field of your own questions aimed at making people’s work important marker for the quality of a business school,” says Associate Dean for on problems that you designed. Moreover, you humanitarian logistics. experiences better, and then answer them. Research Michael Goul. “After all, Ph.D. mentoring is akin to raising the children work on the frontier of knowledge. who will one day assume the mantle at the top business schools. In the My doctoral committee: My co-chairs My research-in-progress: My first stream W. P. Carey School of Business, we take this training very seriously; next My research-in-progress: In many countries, are Professor of Supply Chain Management of research tries to understand how employees generation business schools will be in good hands.” high school graduates participate in centralized Elliot Rabinovich and Professor of Information construct their identities at work: how do they answer Meet four doctoral students who are currently mastering the knowledge and admission systems where they have to rank and Systems Bin Gu. the question, “Who am I?” My second stream skills to be the top scholars at leading universities all over the world. report to university authorities which majors focuses on workplace relationships. My dissertation (colleges) they would like to attend. Since normally My research-in-progress: Information is an seeks to understand how employees form ZIRU LI the demand is higher than the supply of seats, invaluable resource during disasters, and the friendships in virtual environments. Making friends Second Year, Information Systems — ASU Institute of Social Science Research authorities have to prioritize students by their volume of information has exploded with the virtually requires a lot of proactivity and imagination Poster Contest, First Place, Proposed Research score in a national exam, and use algorithms to advent of social media. My research focuses on as you create and interact with a person who you assign seats in each major. In such mechanisms, how humanitarian organizations can leverage often never meet. The two streams are intertwined. Academic preparation: B.S. services such as Uber can change many students have the incentive to manipulate social media to gather and share information in We don’t construct our identities in isolation; who we and M.S., Management Information the driving behaviors of individuals, their preferences to maximize their chances to a crisis. Using a large dataset of tweets from are has a lot to do with the others around us. Systems, Harbin Institute of Technology, shifting demand and supply in the go to college. My research provides a novel Hurricane Sandy, we studied the rate at which Heilongjiang province, China market. Findings from this research methodology to recover students’ true preferences information spread through retweets on Twitter. My doctoral committee: My chair is Professor could potentially contribute new from the “manipulated reports’’ and conducts We modeled how quickly tweets diffused based Blake Ashforth and my committee members are Why I am pursuing a Ph.D.: In insights on the sharing economy several policy exercises, related to affirmative on the influence of the users posting them Professor Kevin Corley and Assistant Professor my third year of undergraduate study I and contribute to government action programs and allocation of resources. had the opportunity to help one of my policy decisions. and also discovered that tweets posted earlier Ned Wellman. in an event spread faster than those posted professors with data collection and My doctoral committee: My chair is later. Understanding these dynamics will help Publication: “‘I identify with her,’ ‘I identify the preparation of a literature review. Publication: My poster describing Professor Alejandro Manelli, and my committee Information System humanitarian groups operate more efficiently with him:’ Unpacking the dynamics of personal I discovered I like digging out the this project was awarded first place members are Professor Hector Chade and doctoral candidate answers to questions. in the Graduate Student Poster and communicate better with victims. identification in organizations” by Professor Blake ZIRU LI’s poster won Associate Professor Amanda Friedenberg. Competition, hosted by the Institute for Ashforth and Ph.D. candidate Beth Schinoff of first place against My research-in-progress: My Social Science Research at ASU. Publication: Forthcoming paper in the the W. P. Carey School of Business, and former competition from Journal of Operations Management: “Evaluating W. P. Carey doctoral candidate Kristie M. Rogers, Working paper: “Student’s Selection of Majors social sciences Ph.D. research examines how the entry of Information Diffusion Speed and Its Determinants now assistant professor of organizational behavior under Uncertainty: Evidence from University of students from all over ridesharing services such as Uber My first year paper advisor and in Social Media Networks During Humanitarian at the University of Kansas, in the Academy of Costa Rica.” ASU. Doctoral students impact traffic congestion in metro co-author: Associate Professor prepare posters about areas. We are using data from Zhongju Zhang worked with me on my Crises,” by Eunae Yoo, Mahyar Eftekhar and Elliot Management Review, 41: 28-60. their work for the Uber and the T&A Urban Mobility ridesharing research. Rabinovich, W. P. Carey School of Business, and When I’m not doing research: academic meetings Report from Texas A&M University William Rand, University of Maryland. When I’m not doing research: My colleagues I like to hike, swim and play soccer — badly! I also in their disciplines to empirically examine whether and When I’m not doing research: and students probably don’t know this, but my love the classics. I was working in the United attended by scholars how the entry of Uber car services I take grind and yoga classes at the When I’m not doing my research: I twin sister and I were master jugglers when Kingdom this summer, and I had the opportunity from around the world. impacts traffic congestion and Sun Devil Fitness Center, and I like enjoy volunteering with my church, hiking and we were kids in Miami. We even had our own to visit Westminster Abbey, many medieval carbon dioxide emissions. We will to hike — especially at Grand Canyon supporting our local football teams — the Arizona routine choreographed to Jock Jams — an upbeat castles and William Shakespeare’s birthplace in further study how ridesharing National Park. Cardinals and ASU Sun Devils! compilation of ‘90s dance music. Stratford-upon-Avon.

28 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 29 WHITEBOARD WPC WHITEBOARD WPC By Doug Owczarczak By Jeremy Veatch

Nudging students to Chaos and collision: get involved, aim higher Seek them out every day

sk anyone who knows me, and clubs that interested me, and to pursue shoes. And that’s why I can tell them ou’ll never have all the answers. wouldn’t have it any other way. those ear buds and close the lid on your they’ll tell you there isn’t another leadership positions in those clubs. He that with time and effort and a little bit I certainly don’t. The more I expose myself to laptop. Sit near the cash register with the Aperson on this planet who loves pushed me to consider taking on a role of confidence, things can and will get Y For some, it’s a tough pill to collisions, the stronger the chance most foot traffic, and work with a pen and Arizona State University more than I with the athletic department, which, as he better. That’s what my mentor told me swallow, but the very best folks in business I’ll strike up a random conversation paper to display your work to the world. do. I am a die-hard fan of our Sun Devil promised, turned out to be a wonderful and he was right. already understand this about themselves. with someone who just might have the If caffeine isn’t one of your cravings, sports teams, I proudly display all things experience. He even helped me find my My mentors mean very much to me, but Naturally, planning strategic partnerships, solutions I’ve been seeking. Sometimes, forgo the corner shop in favor of your Sparky on my desk at the office and I’m true academic passion and, by extension, the young people I’ve mentored myself mapping out meetings with vendors and a good chat can spark a creative idea building’s lobby or break room. Make eye incredibly proud to be an alum of the allowed me to grow into the successful mean just as much. I care about them, pulling in talent to augment your needs on its own. Here’s the bottom line: contact and say “hi” to passers-by. Or, W. P. Carey School of Business. It’s a professional I’ve since become. and nothing gives me greater joy than help fill in those knowledge gaps. more run-ins means more random take things a step further and print the place that means a lot to me, because Of course, hard work and seeing them find their passion and enjoy But I think you need more chaos in acts of brilliance, more unintentional, visuals from your next big project and in many ways, it’s where I became who I perseverance have helped me get where success, both in life and at work. your work life. but effective, collaborations and more display them by the communal printer am today. I am today, but I wouldn’t be honest if In some ways, I feel like my experience Think about it. Imagine the last time opportunities to expose my own talents where others can’t help but see them. It wasn’t always that way, though. That I didn’t say I also owe a great deal of as a mentor and mentee has come full you had a problem and the answer came and supplement my weaknesses with Accept feedback and comments, and first semester, I wanted out. my success to my first mentor, and to circle. And if I’ve learned anything it’s along when you least expected it. I find the strengths of others. maybe even a little criticism — especially DOUG OWCZARCZAK I had trouble making friends and the other mentors who have come into that both sides gain in the relationship JEREMY VEATCH myself having more than my fair share of They’re unplanned interactions if it’s constructive. (B.S. Economics ’09) is (MBA ’08) is a connections. I couldn’t figure out what I my life since. Whenever I’ve needed — something special and lasting, and those moments by intentionally lining up perhaps, but not entirely unprovoked. Outside the work day, incite a little the division manager founding partner of wanted to study, and the university just support, they’ve been there for me. And deeply rewarding. a collision course with others. I make it a daily choice to seek out chaos by studying a completely new for food service/on Ironwood Venture, premise, Coca-Cola. seemed so huge. After weeks of feeling it’s because I so appreciate my mentors a management How? these impulsive interactions. Relying creative skill, such as photography, aimless, I figured the only way forward that I’ve also made the conscious effort consulting company Our company, Ironwood Venture, on planned collaborations can limit alongside other students. This is a great was to pack my bags and try this college to become a mentor myself. For more information specializing in is located within The Department — a your creative outcome, and those go-to way to strike up a conversation outside thing somewhere else. I’ve been involved with the Camp about mentoring contact accelerating growth collaborative working space in downtown wells are bound to eventually run dry. of your normal networks while sharing a Then I met the person that changed Carey experience for years now, and in [email protected] for emerging and Phoenix. Some call it “co-working,” but I Instead, intentionally place yourself in common new adventure and interest. everything: my first mentor. that time I’ve met with and mentored W. middle-market prefer “creative chaos.” the path of others, and learn to embrace The bottom line is, you don’t know for undergraduate At the precise moment that I needed P. Carey freshman who need just a little businesses. Here, my hourly walks to the all that comes with these unanticipated where you’ll find yourself, when it will programs, or somebody to turn me in the right bit of guidance, or encouragement, or a communal kitchen, printers, conference interactions. And do it daily. happen or who will be sitting next to direction, my mentor did exactly that. He slight nudge to get more involved, dream [email protected] rooms and even washrooms expose If answering emails at a coffee shop you when the next big idea hits, but encouraged me — a kid who hadn’t been bigger, aim higher. I understand how for graduate programs. me to collisions with other businesses, is the most chaotic thing you’re doing, one thing’s for certain — it won’t be in involved in much at all — to find and join they feel, because I was once in their leaders, doers and thinkers, and I it’s time to make some waves. Unplug a cubicle.

30 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 31 STUDENT EXPERIENCE WPC

LEFT PAGE, FROM LEFT: FEDERICO BRYNER (B.S. Accounting and Finance ’13, MACC ’14), STEPHANIE SEGHERS-NARVAEZ (B.S. Marketing ’13), BRIANNA ARENDT (B.S. Accountancy ’13, MACC ’14) making the trek to Havasupai Falls. RIGHT PAGE, TOP: Returning home from Supai by helicopter. RIGHT PAGE, BOTTOM: JENNIFER SCHNELL (B.S. Supply Chain Management and Finance ’14) with a member from the Havasupai Tribe.

“At W. P. Carey the New Venture Group is no joke — we do real NEW VENTURE GROUP CLIENTS work with real impact on Arizona Theatre Co. The Phoenix Symphony BioAccel businesses, and I think Honeywell International Steak Escape State of Arizona employers can see that, too.” Executive MBA Council American Red Cross Biosensing Instrument New Chicanos Por La Causa Tiempo Development Downtown Phoenix Havasupai Tribe Las Tiendas Mayo Clinic ASPIN/Mohave Lightworks Town of Fountain Hills American Express Shamrock Foods Co. L. William Seidman Parenting Arizona Frank Lloyd Wright Research Institute Venture Arizona Opera Foundation

about solving business problems,” sharpens another,’” Barger says. Group he says. “Under that metaphor, New Venture Student consultants Luckily it only took about 15 Group is like a blacksmith for aspiring minutes more for him to get his professionals — and that’s pretty cool.” have solutions, will travel teammates to stop worrying. Moving forward, they taught one another what A safe space to learn and grow they could, and focused on assigning New Venture Group has taught . P. Carey alumnus as close to an authentic consulting project tasks based on their individual Tiffany Lam (no relation to Jeff) the Jeff Lam (B.S. company as possible,” Brooks says. strengths. They learned that power of patience. “To achieve the Accountancy ’13, Brooks thought the experience challenges are best addressed as a perfect fit between problem and MACC ’14) worked would give the students more than team. By the end of the year, Barger solution, you have to be patient,” Wwith the Havasupai Tribe when he was just firsthand consulting experience. was elected to his current position as says the W. P. Carey business an undergraduate and a member of More important, students would come the student director of curriculum for data analytics and supply chain the New Venture Group — a student to understand that creating value New Venture Group. management student. “You have to consulting firm at the school. “The in itself is an exciting career path. Looking forward, Barger believes wait for the subtle clues that tell you client challenged us in various areas,” “Consulting is a creative way to think experience is just as valuable as a not only what solutions will work, but says Lam, now a consultant at Protiviti, about applying the talent you acquire degree to becoming a marketable also how to approach the details.” “the first being the four- to five-hour through higher education, as a A blacksmith for aspiring as much information from clients professional. “At W. P. Carey the New It has also taught her the value hike from the top of the Grand Canyon means of creating value for whatever professionals as possible,” he says. “To this day, Venture Group is no joke — we do real of teamwork. While working with a to the valley where Supai is located.” community you’re most interested Lam said the Havasupai experience this method elicits extra, valuable work with real impact on businesses, potential client last year, Lam wanted Over a period of four years, New in being a part of,” he says. “You’re was rich with rewarding and information from clients — a result I and I think employers can see that, her teammates to help her polish a Venture Group built an economic converting your education into making memorable moments, such as could never achieve by asking ‘yes’ too,” he says. “It’s incredibly valuable presentation. She asked some of her development program and worked a difference that people appreciate. beautiful hike down to Havasu Falls, or ‘no’ questions.” to gain experience alongside so many peers to stay after class, to watch her on various projects for the Havasupai There aren’t a lot of opportunities to where students persuaded Brooks to Looking back on his first foray in smart and motivated students, in a presentation and give her feedback. Tribe and its business enterprises. do that.” partake in some waterfall sliding. Or consulting, W. P. Carey economics driven environment where I can get “It was getting late and I honestly New Venture Group is a consulting Now led by W. P. Carey’s Chief being honored with an invitation to and finance major Michael Barger real career preparation.” expected everyone to leave,” Lam firm that was formed in 2008 as part Innovation Officer John Beck and dinner at a tribe member’s home. had no idea what to expect — and The elite nature of the group turns says. “But my fellow consultants of the Consulting Scholars Certificate Professor of Practice Todd Taylor, Listening to the client remains no idea what he was talking about. every meeting into an opportunity to stayed. They gave me a round of program. Professor Emeritus Dan New Venture Group continues to the most important lesson Lam He and three others drove to their learn something new, Barger says, applause, and the edits I needed to Brooks wanted students to experience help students discover career paths learned through New Venture Group. client’s home, about an hour away or hear a story that inspires him to make it perfect.” real-world consulting, potentially while contributing substantially to It’s something he uses daily in his from campus. “It took less than 15 do more. Being mentored by older making a measurable difference in the success of organizations that consulting career. “We were taught minutes with the client for me to “It’s like that quote, ‘as iron consultants has exposed her to new the world. “The idea was to create participate. to ask open-ended questions to get learn that I knew almost nothing sharpens iron, so one person techniques and processes. Working

32 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 33 CLASS NOTES FRONT ROW, FROM LEFT: XIAONAN “SHANE” XIAHOU (B.S. Supply Chain Management ’16), NICK NIST (B.S. Supply Chain Management, B.A. Global Politics ’15). BACK ROW, “It’s like that quote, ‘as FROM LEFT: BLAIR ROBERTSON (M.S. Business Analytics Teamwork makes the dream work at ’15), DAN BROOKS, FAN XIAO (M.A.S. Geographic Information iron sharpens iron, so Skyberry Farm in Portland, Oregon — an Systems ’16), GURKARAN CHOTALLA (B.S. Finance ’17), one person sharpens altruistic enterprise made possible by BETTY LEE (B.S. Supply Chain Management and Finance ’15), another,’” Barger says. backers all over the world. FROM LEFT: LEAH FIACCO (B.S. Economics and Political Science ’15). “Under that metaphor, Farmers WALTERS, ANDERSON and KELLY. New Venture Group is like a blacksmith for aspiring with high-level decision-makers at she explains. “Hearing from various companies has solidified her professionals only a few years professionals — and that’s position as a professional. Moreover, older made it easier to imagine pretty cool.” New Venture Group has been a safe what my life would be like as a space to learn and grow with a little consultant.” PHOTOS COURTESY OF SKYBERRY FARM, EVA VERBEEK help from her friends. Mionis begins GE’s Lam is excited to help plan and Operations Management execute C2, a consulting conference, Leadership Program, in her new role as the student director specifically in the area of of event logistics for New Venture aviation, in October 2016. While the recent grad decided Skyberry Fields Group. Held annually, more than 100 consultants from across the country she preferred industry work attended C2 last year. “Interested to consulting, she describes Portland-based organic farm passionate about students can attend to learn more the experience as a great building a community around healthy food about New Venture Group and way for students to figure Forever consulting in general,” she says, “as out if consulting is right for well as hear from and network with them, while gaining practical magine working tirelessly to cultivate thousands “Many farms struggle to break even and can “We decided to literally ‘feed the need’ right here in industry professionals.” knowledge and skills. of pounds of produce — just so you can give all of typically see up to five years in the red to get there,” Portland,” Kelly says. “To us that means providing it away for free. That’s exactly what Garrett Kelly Kelly says. “In order to survive, we had to sell CSA truly nutritious food to the people who need it most, Adventures in complexity All aboard the value train (B.S. Management ’10) and the other co-founders shares at premium prices that only a small, wealthier without asking for money in return.” With so many extracurricular options W. P. Carey supply chain of Skyberry Farm are doing in the hills above segment of the Portland community could afford.” to choose from, Erika Mionis (B.S. management student Karen IPortland, Oregon. They found creative ways to diversify their Growing for good Supply Chain Management and Chang returns to campus as “We hope that our mission and success inspires business, including farm-to-table dinners, company Hosting farm stay experiences for local Finance ’16) adopted a follow-the- president of New Venture Group young people to become local farmers,” Kelly says. “It offsite events and fundraisers at local breweries. enthusiasts and international travelers offered a leader strategy as a freshman and this fall, after spending the is amazing to think that by not selling our vegetables But nothing compensated for the fact that the bulk new, community-oriented source of revenue — sophomore at W. P. Carey. She summer as a systems analyst at all, which was our original core business, we can of their efforts revolved around selling organic exactly what they needed to turn Skyberry Farm looked at people she admired (mostly intern for American Airlines Inc. create more value than ever before.” vegetables to the wealthy, a realization that into a self-sustaining food source for local charities. upperclassmen), and took note of “In all of my interviews, I use my for delivering food to many ASPIN/ of sitting in a freezer, surrounded by bothered Kelly and his Skyberry Farm colleagues. The Skyberry farmers showcased this vision on their involvement. “I noticed that many consulting experience to answer their Mohave school districts, the client cartons of ice cream. How it all started Kickstarter, and raised more than $33,000 to help intelligent, accomplished individuals questions about teamwork, problem brought Chang and her teammates on Kelly and ASU alums Sid Walters (B.S. A turning point convert their large garage into a rentable space for were part of New Venture Group,” she solving and communication,” she says. a tour of its distribution center. “The One team, one dream Kinesiology ’09) and Derek Cardinale (B.S. “After our first three years in business, we asked guests in June 2015. says, so she decided to join. “I think this really helped me obtain my goal was to help us better understand Within four years of its inception, New Geography ’11), fellow members of ASU’s track ourselves why we were putting so much work into Look for Skyberry Farm on Airbnb to book a visit, Her first assignment, for a medical internships.” the supply chain of a school lunch,” Venture Group had placed students in and cross country teams joined together with something with so little impact,” he says. “Fighting and support their cause. entrepreneur, took more than a year Chang says all of her client she says, recalling one of her favorite every major consulting firm in the U.S. longtime friend Patrick Anderson to break new food insecurity stood out as a to complete, but was immensely engagements have been valuable experiences with New Venture Group. — all of which today employ multiple ground in agriculture. way we could use our rewarding in terms of experience learning experiences, critical to shaping “We got to see the conveyor belt that New Venture Group alumni. The original business was a community greatest asset — organic, gained and skills learned. Mionis and her into a good consultant. Consulting transfers products from shelves to This is due, in large part, to the fact supported agriculture (CSA) model. Each CSA nutritious food — to fellow teammates ended up becoming has also been a meaningful way for loading docks, and a man fileting a fish that New Venture Group members share equated to a portion of the Skyberry harvest better connect with such great friends that they decided to Chang to make a difference in local before it was packaged and sealed.” learn what pursuing a consulting career — like a pre-paid subscription for organic produce and serve our Produce complete their honors thesis together, organizations like the ASPIN/Mohave Chang and her teammates created is like. They understand the drawbacks. — which was delivered directly from Skyberry Farm community.” Squash Peas Tomatoes which led to all-nighters, midnight Educational Services Cooperative, her a value model to help the client They know what is expected of them. to community shareholders, once a week for 16 Approximately Cucumbers Turnips Kohlrabi Chinese food runs and many other first client. improve their customer service And they are excited to be consultants. weeks out of the summer. one in eight Eggplant Lettuce Brussels good memories. The local food service cooperative levels, using firsthand knowledge Firms interested in engaging with Establishing a cooperative scheme with local Portland Beets Artichoke sprouts “New Venture Group is unique in purchases food for more than 100 of the school lunch supply chain. In New Venture Group should contact consumers allowed them to share the risks and residents suffers Carrots Beans Cabbage that it has so many connections with Arizona school districts. Since addition to shaping an organization’s Professor of Practice Todd Taylor at rewards of food production. Organic farming, from food insecurity Radishes Peppers consultants early in their careers,” Shamrock Foods Co. is responsible operational strategy, she had the treat [email protected]. however, is expensive. on a regular basis.

34 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 35 WPC CLASS NOTES CLASS NOTES WPC

Bataan Death Uber-ambitious for Phoenix growth March: From a teve Thompson (B.S. Marketing ’10) think like an entrepreneur to solve problems and take Sknows what a difference a few years advantage of opportunities.” can make in the life of a dynamic business Thompson was drawn to the energy and adventure of the startup survivor’s eyes model. Three and a half years ago, when environment while still a student at the W. P. Carey School of Professor Emeritus Lester I. Tenney, 96, was he went to work for the revolutionary Business. He created his own company as an undergrad through busy this summer writing an epilogue to his book, ridesharing company, Uber, Phoenix was the Edson Student Entrepreneurship Initiative. “My Hitch in Hell: The Bataan Death March.” Tenney the 20th city to launch, and the company’s “It didn’t really get off the ground,” he says, “but I took away a is one of the few to survive the 60-mile trek and the employee roster numbered in the hundreds. lot of lessons I was able to apply later.” subsequent three-and-a-half years in prison camp Now, more than 450 cities worldwide Thompson sees his success at Uber as a platform for in Japan, where he witnessed the atomic attack on Steve Thompson are served by Uber, which employs a personal passion of his: promoting metro Phoenix as a Nagasaki. Tenney taught finance at (B.S. Marketing ’10) more than 5,000 people. technology hub. “Working for Uber is a great calling card, a GOING W. P. Carey from 1969 “Every day is a new challenge conduit to conversations about how we can make Phoenix until his retirement in and I’m glad to be a part of it,” says more desirable for startups, which also builds Uber’s PLACES 1983. He and his wife, Thompson, who is general manager for the desert region, opportunities in the Valley.” on wildlife. He now leads annual WITH Betty, now reside in which includes Arizona, New Mexico, Utah and Nevada. “My Encouraging capable people to move here and stay in Into the wild with on-foot safaris to the plains of Carlsbad, California. He job is to assess the Phoenix is key. “I want to help create more opportunities to keep OLLIE Africa and creates artwork from remains an outspoken unique needs of young talent here. W. P. Carey is one of best business schools Visitors have his experiences. His memoir, advocate for the veterans Fred Krakowiak our cities, and in the country. By increasing retention we can create more enjoyed riding Ollie “Tracking Your Inner Maverick: of World War II, especially businesses, especially in the downtown corridor, which leads to the Trolley around After 30 years on Wall Street, Fred Career Transition for Trailblazers, those who suffered in the more arts and culture, too.” Scottsdale and Krakowiak (B.S. Finance ’78) Risk Takers & Rule Breakers,” tells Philippines and Japan. When he isn’t working on Uber or Phoenix or both, surrounding areas made a career turn and refocused the story. Thompson is a foodie who enjoys the city’s for more than 30 burgeoning cuisine scene. “I’m always trying years. Founder to find new restaurants, but my default is Margaret Dunn Barrio Urbano for Mexican and Bitter & (B.S. Sustainability Twisted for drinks.” ’10, MBA ’12) now He enjoys speaking with students employs 70 people Cooking from the heart and recent graduates about the unique and has grown the 2016 marks the 21st anniversary of Nick Stellino’s (B.S. Marketing ’80) career on Seattle public challenges of startups, including skeptical fleet to 34, including television as a chef and author of 10 cookbooks. He grew up with a family of accomplished cooks parents. “When I joined Uber my parents 30 buses that look who readily shared their knowledge of Italian cuisine and love of cooking. thought I was crazy,” Thompson says, “but like trolleys and four the company took off and it’s been great.” luxury coaches.

1960s Carol Fowle, B.S. Economics ’76, MBA ’77, is the Kirk Shaw, B.S. Finance ’83, is a Ward Hickey, B.S. Finance ’88, is the vice president of talked about the world of startups, the rapid pace of Nichol Luoma, B.S. Supply Chain Management ’00, is Ed Sandidge, B.S. Insurance ’62, is the top agent for special membership service manager for the National loan officer specializing in certified small business lending for the First Community Bank in technology change and lifelong learning. the associate vice president of the University Business Mass Mutual Insurance in Scottsdale. Association of Credit Management in Baltimore. divorce lending for Fairway Santa Rosa, California. Services at Arizona State University. Independent Mortgage Corp. in Kathy Sacks, B.S. Marketing ’97, is the owner and Wayne Culiver, B.S. Business Management ’66, is the Cathy Enz, B.S. Management ’77, is a professor of Phoenix. Ben Bentzin, B.S. Finance ’89, is the CEO of Interactive operator of Coleap, a company that focuses on the Brenda Cox, B.S. Management ’03, is the vice founder and owner of a real estate investment company strategy at Cornell University in Ithaca, New York. Health Technologies Inc. in Austin. growth of people, products and positioning in Phoenix. president of human resources at the Salina Regional based out of Scottsdale. After graduation, Culiver spent Greg Vogel, B.S. Real Estate ’85, is Health Center in Salina, Kansas. 10 years working for ExxonMobil in California, before Ken Kingery, B.S. Marketing ’79, is a principal of the the CEO of the Scottsdale-based Land 1990s E. Calvin Matthews, B.S. Finance ’98, has been returning to Arizona with his wife, also an ASU graduate, Mosaic Corporation, an Enterprise Content Management Kirk Shaw Advisors Organization, the largest land Laura Clark, MBA ’91, is a faculty member at Mesa appointed the new equity partner for the firm Armstrong Megan Creecy-Herman, B.S. and opening a series of car dealerships. company, in Atlanta. He enjoys playing golf on the brokerage firm in the United States. Community College. Teasdale LLP in St. Louis. Real Estate ’03, has been promoted weekend and made his third trip to Russia with his fiancée to vice president of leasing and 1970s this summer. Robert Sederstrom, MBA ‘86, is the senior vice Steven Gragg, MBA ’98, is the newly appointed development at Liberty Property Christina Biscailuz, B.S. Real Estate/Finance ’92, is Steve Kaplan, B.S. Accounting ’74, is the KPMG president of the commercial real estate brokerage firm international president of Lambda Alpha International Trust in Scottsdale. 1980s the CFO for Global Protective Services, a security firm Professor of Accountancy and the new director of the Kiddler Matthews in Phoenix. in Orange County. Joy (Hoedel) Elder, B.S. Marketing ’82, has been in Valencia, California. School of Accountancy at the W. P. Carey School of Todd LaPorte Sr., MBA ’04, the director of marketing and sales for the Bott Radio Business. He has been with ASU since 1981. Gib Gibson, B.S. Marketing ’87, works at CoxReps 2000s was appointed the new CEO of Network for 26 years, in St. Louis. Recently, she Inc., a subsidiary of Cox Media Group, as the senior vice Lowell Vande Kamp, B.S. Computer Information Joan Koerber-Walker, MBA ’00, is the president HonorHealth in Phoenix this spring. accomplished a lifelong goal of becoming a PSA Master- Megan David Williams, B.S. Accounting ’74, MBA ’76, is the president and director of sales. He has been with the Systems ’93, is the chief information officer of Synergis and CEO of the Arizona BioIndustry Association, He previously served as the CFO rated U.S. Figure Skating Gold Medalist in ice dancing Dean’s Research Professor at The Ohio State University company since 1988 and is an industry leader who serves Education Inc. in Mesa, Arizona. He was a guest lecturer which helps Arizona become recognized as a top-tier Creecy-Herman and chief strategy officer. and a figure skating coach. in Columbus. on several media boards in New York City. this summer in the CIS capstone course, where he biotech location.

36 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 37 WPC CLASS NOTES CLASS NOTES WPC Red noses Pediatrician and health care Alum trades office for everyone by class year It’s been 23 years since Skip Bourdo innovator started out in accounting (B.S. Marketing ’00) started out as a lbert D. Jacobson (B.S. Accountancy ’64) students about at ASU. for vineyard cashier for the Walgreens Co. Today he was on his way to a successful career as a Health care is a value- 1953 aura Swanton (B.S. Management ’86) is living a wine lover’s is the corporate vice president of eastern A 1975 CPA, but his interest in caring for people led him driven system now, Alfredo Sydlo Bill Dunbar operations. In May, Bourdo and his Ldream. As co-owner of Laura Michael Wines, she lives in Napa in a different direction: medical school and a life Jacobson said, as doc- David Wist Gus Psarros Valley and produces seven wines each year: one each of chardonnay, colleagues rang the opening day NASDAQ of achievement in pediatrics that includes being tors are compensated 1957 1976 rosé and port, and two zinfandels and two cabernets. But, idyllic bell to mark Red Nose Day, a fun initiative one of the founders of the Phoenix Children’s for the quality of care John Vise Michael Magnan as it sounds, getting to this place — and staying there — has that raises money to help alleviate Hospital. And this fall, he’s coming home to they give their patients, 1959 1977 not always been easy. child suffering throughout Arizona State University, lecturing at the College not the quantity. Richard Crouch Barbara Lang Swanton was a strategic account manager at Cisco the world. of Health Solutions at the downtown campus. Although he’s step- 1964 Systems Inc. in 1999 when she and her second husband 1978 After his medical training and a stint in the U.S. ping out of practice at Richard Natiello Thomas Kerlin bought a little winery in Calistoga. After three harvests, Swanton Navy, Jacobson returned to Arizona in 1975 to the Phoenix Children’s Albert D. Jacobson 1967 found herself going it alone, determined to maintain her job with 1981 build a pediatrics practice. It was while he was Hospital, he’ll remain (B.S. Accountancy ’64) William Cline Joe DeLello Jr. Cisco Systems. But after learning that her mother had been president of the Maricopa County Pediatric Soci- active there and will still 1968 diagnosed with cancer, Swanton felt her priorities shifting and she 1982 ety that the group began to discuss establishing continue to see patients. He volunteers at a clinic at Gary Horton Dennis Burton decided to leave the corporate life and focus on the winery. a children’s hospital in Phoenix and Jacobson St. Vincent de Paul and will soon travel to Mexico to 1970 Michael Ervin Huls The winery was operational, but Swanton needed to learn the became the chairman of the planning commit- work at a medical clinic in an orphanage. Redford Sanderson Wade MacKay industry. She reached out to the Napa Valley Vintners association, tee. In 1983 the hospital opened and since then, He admits that his retirement isn’t much of a Richard Shott 1986 soaked up information from neighbors and growers and relied on the Jacobson has been in leadership there and at the slowdown. He expects to “gradually fade into 1971 Collen Bergsteen experience of her consulting winemaker and vineyard manager. national level working on health care policy and retirement,” and will spend time traveling with his Michael Barrington Denise Meek Margaret Gillespie “I have great expertise around me, and I’ve leveraged it like any good practice management. wife and family, reading and volunteering. And John Kennedy Jr. business manager should,” Swanton says. “You put people around you who are Jacobson has used the business acumen he he’s looking forward to lecturing at ASU. 1972 1991 smarter and more experienced than you and you learn from them.” acquired at W. P. Carey throughout his career and “It’ll be fun to interact with the graduate and Raymond Jennet Steven Johnson Love and support doesn’t hurt, either: she remarried her first husband in 2010. was a pioneer in the development of optimized undergraduate students at ASU,” Jacobson says. 1973 1992 Then she began making changes to her business model. She pulled her wines out health care delivery systems — a topic he’ll teach “I really enjoy teaching.” Danniel Cranson John Bakker of distribution and now relies solely on word-of-mouth through her wine club and 1974 1993 local businesses. Irene Bielawski Jeffrey Pogemiller Half of her 3.25 acres is planted to zinfandel, which is used for one-quarter of the Chase Terwilliger (MBA ’13), and wife Katie David Ives 2000 winery’s total production. Swanton sources the rest of the grapes she needs from four small, are the proud parents of Charlie Terwilliger, Jack Roney Wesle Babcock Richard Wickness high quality properties. As she says, “you can’t make good wine from bad grapes.” born July 24, 2015 in Vail, Colorado. Chase Freestylin’ it Neil Gallelli This year marks Swanton’s 18th harvest, which means she has now been a winemaker for is the vice president of product and business New graduate Sierra Blair-Coyle (B.S. World Cup competitions in China, 1975 2010 Terry Baer one year longer than she was in high-tech. development at Silvernest, a company that Marketing ’16) is a full-time professional Germany, Japan, Switzerland and the Matthew Moore “The wine industry — agriculture in general — is difficult,” she says. “It’s been a huge matches up people with empty space in their rock climber. This year, her journeys have United States, with the championships challenge, but I feel very good about what I’ve done and I’m proud of my team, who have homes to prospective tenants. taken her to international held later this year in Paris. Professor Emeritus helped me over the years.” William Huizingh

Professor Emeritus of Accountancy William Huizingh, one of the first Charlton Park, MBA ’06, is the chief 2010s Chad Fogg, B.S. Business Management ’12, is an faculty members to join the Lixin Chen, MBA ’15, is the president of the Jiejian Civil analytics officer for University of Utah Greg Fitzgerald, B.S. Marketing/Supply Chain operations and logistics manager at Uber Technologies T.J. Wey, B.S. CIS ’13, is an IT project manager at Avent Defense Architectural Design Company Ltd. in China. school, died at the age of 97 Hospitals and Clinics in Salt Lake City. Management ’10, is the director of acquisition marketing Inc. in Phoenix. Fogg was recently appointed to the board Inc. in Phoenix. on March 18. Huizingh, who at Blue Apron in New York City. of the Arizona Technology Council. Brittan Susich, B.S. Marketing ’16, is a user Danny Estavillo, B.S. Economics ’06, Syed-Ali Bilgrami, B.S. CIS ’14, is a product specialist arrived in Tempe in 1959, experience and information architecture associate for MBA ’12, recently joined The Nerdery Michelle Gates, MBA ’10, is vice president of financial at the Huron Consulting Group in Portland, Oregon. played a leading role in shaping the new college’s Joshua McCoy, B.S. CIS ’12, is a systems analyst for the Phoenix-based advertising agency Zion & Zion. as a business development director. affairs and CFO at Columbia College in Chicago. Infusionsoft in Chandler, Arizona. programs until his retirement in 1981. He was the The Nerdery specializes in finding David Choi, B.S. SCM/Economics ’14, is a data Phil Jeong, MBA ’16, is the senior first director of the School of Accountancy, and Charlton Park business solutions through software D.J. Passey, B.S. CIS ’10, is a software development scientist for Shipt in San Fransisco. Shipt is a startup financial analyst for the E & J Gallo served in several other administrative positions. design and development in Phoenix. engineer at Amazon in Phoenix. Nisha Mohan, B.S. CIS ’12, is an IT project manager at company that provides grocery ordering and delivery Winery in Modesto. Jeong was GE Healthcare in Detroit. through a mobile application. He was devoted to his students, and the Huizingh named one of Poets & Quants’ Nilesh Joshi, MBA ’08, is the CIO and executive vice Denise Castaneda, B.S. Finance/Accounting ’11, is a Outstanding Teaching Awards recognize his 2016 Best MBAs. president of Newtek Business Services Corporation manager at Protiviti in Los Angeles. Corinne Relucio, B.S. CIS ’12, is a senior associate in Ashley Miller, MBA ‘14, has been appointed the support of excellence in the classroom. He is in Phoenix. risk consulting at KPMG in Houston. COO at Orchard Medical Consulting in Phoenix and Jianfu Zhao, MBA ’16, is the CFO also remembered through the Huizingh-Mumford Mark Anderson, B.S. CIS ’12, recently moved to serves on the board of directors of the W. P. Carey of Bright Food Company Ltd. in Scholarship, established by former student John Matthew White, B.S. Finance ’08, is an investment Portland, Oregon and is an application developer Drew Schweinfurth, B.S. CIS ’12, is the manager of School of Business Alumni Chapter. Miller recently Phil Jeong China, the second-largest China- analyst at MRA Associates, an investment advisory firm for Intel Corp. developer relations for the Walgreens Boot Alliance Inc. in visited her 22nd country and will be getting married Mumford. After he retired, Huizingh was also based food manufacturer. headquartered in Phoenix. Chicago. in November. active at the Desert Botanical Garden in Phoenix.

38 WPCAREY.ASU.EDU / AUTUMN 2016 WPCAREY.ASU.EDU / AUTUMN 2016 39 SOUTH ELEVATION (NORTH WING) - 12:00 PM DECEMBER 21 / WINTER SOLSTICE

SOUTH ELEVATION (NORTH WING) - 12:00 PM DECEMBER 21 / WINTER SOLSTICE

WPC THE BACKSTORY SOUTH ELEVATION (NORTH WING) - 12:00 PM DECEMBER 21 / WINTER SOLSTICE

SOUTH ELEVATION (NORTH WING) - 12:00 PM JUNE 21 / SUMMER SOLSTICE %

SOUTH ELEVATION (NORTH WING) - 12:00 PM JUNE 21 / SUMMER SOLSTICE In 2010, the service sector employed fully 84% of the US workforce,1 and represented 82% of the nation’s Gross Domestic Product. 2 84Since 1985 The Center for Services Leadership has been the globally recognized leader in the science of competing strategically through

SOUTH ELEVATION (NORTH WING) - 12:00 PM JUNE 21 / SUMMER SOLSTICE the profi table use of service and services. While other academic institutions focused on products and manufacturing (currently 13% of the workforce,3 and 15% GDP 4) the CSL pioneered the study of the science of service. Joining the best insights of the academic world and the best strategies of the business world, the Center thrives at the PLAN - 12:00 PM JUNE 21 (SUMMER SOLSTICE) intersection of academia and business — the bigger part.

PLAN - 12:00 PM JUNE 21 (SUMMER SOLSTICE) W. SCOTT MITCHELL

PLAN - 12:00 PM JUNE 21 (SUMMER SOLSTICE)

1,3 Bureau of Labor Statistics, Employment, Hours, and Earnings from the Current Employment Statistics survey (National), http://sata.bls.gov/cgi-bin/surveymost?ce (Accessed on 6 August 2012). 2,4 Bureau of Economic Analysis, “GDP by Industry.” http://bea.gov/iTable/iTable.cfm?ReqID=5&step=1 (6 July 2012)

EYE to the SKY we wrote the book on how to leverage he roof that spans the walkway between fabric. Together with the vertical fins that shade the north and south wings of McCord the building’s tall narrow windows, the sun service for competitive advantage THall is pierced by an iconic architectural puts on a light show every day as the shadows element: an oculus. The circular 23-foot opening lengthen and shorten. Upcoming programs: 59 feet above the ground is lined with alternating The sun played a large role in many aspects of Compete Through brushed and polished stainless steel panels. Its the building’s design, starting with the positioning Services Leadership Institute Customer Experience Certificate Service Symposium Learn and apply a proven process and Online Courses lower edge is rimmed with LED lights. And, at the of the two buildings that make up McCord Hall. Annual, 2½ day gathering of academic for service quality in this unique, The CSL offers open-enrollment online summer solstice, the sun shining through at noon The wings were placed to take advantage of sun and business thought leaders to share faculty-led, two-day “mini-MBA” courses designed to provide education fills a circle of brick on the pavement below. and shade throughout the day. Before noon the and advance the science of service March 22 - 24, 2017 in the areas of services leadership and The oculus and the circle of brick exemplify patio is open to the sun, warming students as they October 26 - 28, 2016 W. P. Carey School of Business excellence. For a complete listing of the level of detail that makes McCord Hall hurry to class on chilly winter mornings. But in the Hilton Scottsdale Resort & Villas Arizona State University all upcoming courses, please visit exceptional architecturally. Consider the exterior afternoon, the shadow cast by the curved north Scottsdale, Arizona Tempe, Arizona wpcarey.asu.edu/csl/onlineeducation The architects of McCord Hall used the skin of the building: The architects from Kohn wing provides protection from the scorching rays wpcarey.asu.edu/symposium wpcarey.asu.edu/institute oculus to produce a circle of light on the patio during the summer solstice. Pedersen Fox Associates in New York chose of summer. In fact, the north wing was stretched L-shaped bricks to create the look of corduroy to block more of the late-day heat. wpcarey.asu.edu/csl > ASU graduates use code “WPCALUMNI” to save 15% on CTS registration!

Problem-focused Research | Executive and Professional Development | Corporate Membership | Student Education 40 WPCAREY.ASU.EDU / AUTUMN 2016

CFSL WPC fp4c 2016 FINAL.indd 1 7/26/2016 8:24:58 AM NON-PROFIT ORG. U.S. POSTAGE P A I D

Arizona State University

W. P. Carey School of Business P.O. Box 873506 Tempe, AZ 85287-3506 USA

From career changes to new members of the family, we what’s the story? want to hear about what’s going on in your life. Class Notes is the perfect way to stay in touch with your alma mater and the W. P. Carey community. wpcarey.asu.edu/magazine