Georgetown

Business FALL / WINTER 1998 volume 11 number 1

t h e r ob e rt e m m e t t mc d on o u g h s c ho ol of b u s i n e s s

Bob McDonoughs Lasting Legacy

Introducing Dean Chris Puto
The Sound of Music
Georgetown Business is
published during the academic
year by The McDonough School
of Business for alumni, parents,
friends, and business colleagues
Dean
Christopher P. Puto, Ph.D.
Senior Associate Dean
William Droms, Ph.D.
Editor
Elisabeth Liptak
Associate Editor
Elizabeth Shine
Contributing Writers
Bindu Vaswani b00
Cheryl Arndt mba99
Leigh Jackman mba00
Nan Wang mba00
Designer
Nancy Van Meter
Photographers
Philip Humnicky
Jennie Lam-Nagata
Evan Shephard
Keith Tishken

Inquiries and updates should

be sent to:
Georgetown Business
deans office
georgetown university
the mcdonough school
of business
old north building
washington dc 20057
phone: 202-687-4080
Georgetown Business
welcomes opinions and comments
expressed by its readers. Letters
should be addressed to:

the editor
Georgetown Business
deans office
georgetown university
the mcdonough school
of business
washington dc 20057
 LETTER FROM THE EDITOR

WELCOME
Some stories - and some issues seem to write themselves. In putting this
issue together, the feature articles were a given. A new dean. A $30 million
naming gift.

It all unfolded in July. Chris Puto began his tenure as the new dean of the
business school after nine years at the University of Arizona, where he most
recently served as director of their MBA program. Just two weeks
later, Robert McDonough visited the Georgetown campus to finalize the
plans for his $30 million gift to the School of Business. Things havent
been the same since.

To begin with, we have a new identity The Robert Emmett McDonough

School of Business or The McDonough School of Business, for short.
No relation to the other McDonoughs of Georgetown fame, as you will
read in the cover feature.

As with any transition, phasing in the new name will take time. Before we
were GSB, now you will begin to see references to MSB. Callers to the busi-
ness school are now greeted with The McDonough School of Business.
CONTENTS
At least for now, this magazine will still be Georgetown Business.

Inside Information . . . . . . . . . . . . . 2 Elisabeth Liptak

The Sound of Music . . . . . . . . . . . . 6

IEMBAs Experience
the Asian Market. . . . . . . . . . . . . . . 8

Coming Full Circle . . . . . . . . . . . . . 10

Imagining the Returns

on a Naming Investment . . . . . . . 12

IPOs: Aftermarket
Stock Price Support or
Market Manipulation? . . . . . . . . . 16

Faculty and Staff News . . . . . . . . 19

Alumni Notes . . . . . . . . . . . . . . . . . 23

Fall / Winter 1998 1


N ow that technology enables a viable link
The Best of the Best
Required courses are the
hallmark of MBA pro-
grams, but the number
and variety of elective
courses grows each year
and helps attract prospec-
tive students. So Business
Week Onlines 1998 pro-
file of the best b-schools
asked MBA students to
rank the most popular
electives at their schools.
Georgetown MBAs chose
electives in finance
Advanced Corporate
Finance, Negotiated
Mergers and Acquisitions,
and Financial Statement
Analysis along with
Managing the Interna-
tional Enterprise, Global
Logistics and
Entrepreneurship
as their top picks.
Favorite profs cited were
Bardia Kamrad, Ken
Homa, Ricardo Ernst, Paul
Almeida, Allan Eberhart,
John Dealy, and Catherine
Langlois.
2 The McDonough School of Business
Inside Information
Does Telecommuting Work?
between work and home, more employees are opt-
ing to work out of their homes. Telecommuting can
be a workers dream - if it is well planned and sup-
ported by the company. A study by management
communications professor Lamar Reinsch focuses
on the relationship between telecommuting workers
and their managers as the key ingredient in making
the telecommuting arrangement succeed.
Reinsch surveyed over 100 telecommuters at
several large companies on the east coast to learn
more about the dynamics of telecommuting.
Although the respondents generally regarded their
telecommuting experience as successful, survey results
suggest that the picture may be more complex.
If the telecommuting relationship is long-term,
for example, the relationship between telecom-
muters and their managers may deteriorate after an
initial honeymoon. Possible causes are a reduction
in socialization and corporate loyalty for the worker,
leading the worker to operate like an independent
contractor.
With the attractiveness of telecommuting on
the rise, what can organizations do to increase its
chance of success? In addition to looking at the
tasks to be performed, personality traits, and perfor-
mance indicators, Reinschs study suggests that
organizations consider the relationship between the
worker and manager when selecting telecommuters.
The findings also suggest that organizations consid-
er part-time rather than full-time telecommuting
arrangements.
The article based on Reinschs research, Rela-
tionships Between Telecommuting Workers and
Their Managers, which appeared in the October
1997 issue of The Journal of Business Communication,
received the distinguished publication award for 1997
from the Association for Business Communication.
HDTV...Coming Soon
To a Neighborhood Near You
O n November 1st, digital television was
introduced in more than 30 major markets across
the United States. But most households missed the
historic rollout due to the lack of availability and
high cost of digital television sets.
Both the promise and the problems surround-
ing the implementation of digital television, which
has been more than 10 years in the making, were
highlighted in a Georgetown Executive Programs
forum held on Capitol Hill this summer.
Digital television began as an engineering chal-
lenge in the 1980s, when the Grand Alliance of
manufacturers sought to develop a standard for digi-
tal television sets. Now the challenge is a business
one. The big question is whether there is sufficient
consumer demand for digital television and at what
cost, said Dr. Joseph Kraemer, vice president of
A.T. Kearney, a management consulting firm that
has studied the business opportunities in digital tele-
vision.
Dr. Paul Liao, chief technology officer at Pana-
sonic, estimated that his company would initially
price digital television sets from $2,000 to $6,000,
but that the prices were expected to drop rapidly.
Panasonic projects that 50-100,000 sets will be sold
in the first year.
The wholesale adoption of digital television
may seem like a distant vision, but most of the
forum participants predicted a transformed broad-
casting industrywith such services as video on
demand and interactive televisionas a result of
the convergence of the computer and broadcasting
industries. We will be fellow travelers [with the
broadcasters] on a new road, said Barbarz Lopez,
digital broadcast marketing manager for Intel.
Although the government-mandated conver-
sion to digital television will eventually affect every
consumer when the switch to digital television is
complete, the short-term picture is far less clear.
 MBAs Attend
Immersed in the Language of Business
NBMBAA

F irst-year MBAs jump-started their careers as

students in the first integrated course of the new
Nita Brown (MBA 00) and

Class of 1999 students

Sean McLeod, Rick Single-

MBA curriculum that debuted in August. Designed ton and Robert Wilhite
to immerse the incoming class in the language of represented Georgetown
business, and particularly, the case method, students
MBAs in the annual
not only learned basic finance, marketing, and strate-
National Black MBA Asso-
gy, but were also asked to apply it in a case competi-
tion at the end of the week. ciation (NBMBAA) Confer-
The employee parking lot at Harley Davidson
The live case focused on AES, a billion-dollar ences Student Case Analy-
global energy company based in Arlington, Virginia, sis and Presentation
with the somewhat unorthodox mission to have fun Competition in Detroit
and make money. Senator Dale Bumpers (D-Ark.) Revving Up for Statistical Analysis
September 16-20.

provided background on the changing energy indus-
try and the legislation he helped author on energy
deregulation.
Student teams competed by developing and
presenting a strategy for AES. Having developed a
strategy for the company in the semi-final rounds,
two finalist student teams were asked to re-evaluate
their strategy in the wake of hypothetical challenges,
such as economic collapse in Russia, problems in
Asia, and the resignation of the CEO.
The AES management team leading the live
case wanted students to come away with the idea
that companies can be structured with the goal of
integrating personal and work lives. But the most
important thing, which is often hard for strategical-
ly-oriented business students to see, is that our orga-
nizational structure is not about improving the
financial bottom line, said Paul Burdick (IEMBA
97), a vice president with AES.
John Bonds (MBA 00), a member of the win-
ning team, found the experience intense but
extremely valuable because it laid the groundwork
not only academically, but also in teambuilding and
problem-solving skills. The case competition made
a lot of students think about the difference between
maximizing shareholder value or stakeholder wealth.
Everyone wrestled with the unusual company that
AES is.
D
African-American students
ecision science students were in full throttle
from the nations top busi-
for a tour of the Harley Davidson plant in
ness schools were asked
York, Pennsylvania on November 6.
Designed to show students the practical appli- to predict the next mega-
cations of statistical theory, the tour focused on the merger among the auto
role of statistics in Harley Davidsons quality control industrys major players,
practices and their efforts to attain ISO9000, the providing an opportunity
highest international quality control standard.
to demonstrate the ana-
Harley Davidson was attractive for several rea-
lytical and problem-solv-
sons, according to statistics professor Jackie Hoell,
ing skills learned during
who organized the tour, along with professors Carla
Inclan and Keith Ord. Quality control, which is their MBA studies.
statistics-based, was vital to the companys The NBMBAA conference
turnaround in the mid-1980s, said Hoell. We had is designed to meet the
the Harley case written by Professor Rob Grant, the professional development,
Harley plant was accessible and they were willing to
mentoring and network-
tailor their plant tour to meet our educational
ing needs of African
requirements.
American MBAs, business
The tour is part of a growing initiative by
Georgetown professors to bring experiential learning entrepreneurs and stu-
to the classroom. We wanted to show the students dents. Over 9,000 partici-
the real-world implications of what they were learn- pants attended this years
ing in class, said Hoell. conference.
Students appreciated the exposure to statistics in
action. Stats in class is one thing, said Sasha
Spencer (B01). Seeing the practical implications of
statistics helps make it real.

Fall / Winter 1998 3


Senator Richard Lugar
D
(R-Indiana)
Economic Crisis and
Political Change in
Southeast Asia
Weaving together recent
events in Southeast Asia,
the government-ordered
bailout of Long-Term
Capital Management, and
the impact of the Asian
financial crisis on U.S.
farmers, Senator Richard
Lugar (R-Indiana) called
for a major overhaul of
the international financial
system. The occasion was
the Southeast Asia Forum
on September 28, a series
for congressional staff,
government officials, and
business hosted by the
School of Business and the
School of Foreign Service.
The forum featured
updates on the political
and economic climate in
Vietnam, Thailand, the
Philippines, Malaysia and
Indonesia. Regional secu-
rity implications were also
addressed.
4 David Gergen, editor-at-large, U.S. News & World Report
The McDonough School of Business
Does Volatility Necessarily Mean Instability?
V olatility is inevitable in stock markets. But
too much volatility understandably makes investors
Examining the Business/City Partnership nervous, especially in emerging markets.
Delegates from forty countries met amid con-
tinuing turmoil in global markets to discuss market
volatility and analyze the differences between good
oes an American business have a responsi-
and bad volatility at the fourth annual Alternative
bility to the city in which it is located? That was the
Structures for Securities Markets conference orga-
question addressed by the panel, Business and the
nized by the Capital Markets Research Center.
American City, sponsored by the Students for
Volatility due to market manipulation is bad
Responsible Business and the John F. Connelly Pro-
volatility and causes concern, said Professor Reena
gram in Business Ethics on September 17. The pan-
Aggarwal, the program chair. Emerging markets
el was moderated by David Gergen, editor-at-large
need appropriate disclosure and insider trading reg-
of U.S. News & World Report, and featured an
ulations to help manage erratic markets. The recent
impressive roster of panelists from business and gov-
financial crises have highlighted other concerns fac-
ernment across the United States.
ing emerging stock markets, such as the need for
American cities are currently plagued with a
more stringent accounting procedures and market
myriad of problems educational deficiencies, ser-
transparency.
vice inadequacies, lack of employment all of
Keynote speaker Frank G. Zarb, chairman of
which promote a negative perception. Cities also
the National Association of Securities Dealers, Inc.
offer business certain opportunities, said John
predicted there would be more linkages between
Norquist, mayor of Milwaukee and author of The
stock exchanges, such as the link between Nasdaq
Wealth of Cities. Businesses owe it to society to rec-
and the Deutsche Brse. Ultimately, there will be
ognize and capitalize on these opportunities by
real time executions across continents, said Zarb.
committing the necessary financial resources.
We would execute trades when other markets are
What business can do to reverse the decline of
closed and others could execute trades when our
cities was addressed by the other panel members,
markets are closed, using real time data.
including: William Byron, rector and distinguished
Aggarwal applauded Zarb for his vision, but
professor of management at Georgetown; Donna
sounded a warning note. Globalization offers lots
Klein, vice president of workforce effectiveness for
of opportunities, but also a number of challenges for
Marriott International; Bill Pascrell, U.S. congress-
stock exchanges and the regulation of securities
man from New Jerseys Eighth District; Charles
markets, said Aggarwal. More co-ordination is
Rial, chairman of the management committee for
needed between countries to address these issues.
Shorebank; and Whitney Tilson, co-founder of the
Initiative for a Competitive Inner City.
The panel was designed to highlight that
ethics is an important part of the business education
at Georgetown, said George Brenkert, director of
the Connelly Program and a professor at the School
of Business, who hopes to sponsor a similar event
every year.
Do Ethical Investment Boycotts MSB is for CPAs
Affect a Companys Cost of Capital?
Ever wonder how many

S outh Africa, tobacco, and human rights were

the hot buttons for socially responsible investors
partners of Big 5 account-

ing firms are alumni of

Georgetown University?

According to Bowmans
who sought to eliminate them from their portfolios
in the 1980s. Today, the environment, the weapons Slamdunking the Market Accounting Report of 800

industry and gambling have been added to the list of universities nationwide,
industries that some investors choose to avoid for
ethical reasons.
While there have been a number of studies
focusing on the performance of ethical investments
T his year the Big East Conference means more
than watching the Hoyas shoot hoops. During the
Georgetown ranks 15th

in the country, ahead of

many larger programs

with no conclusive answers finance professors
James Angel and Pietra Rivoli are the first to study
whether socially responsible investment policies
impose a cost upon firms who are targeted by
investors. They conclude that divestment of a com-
panys stock from portfolios for ethical reasons will
increase the cost of a firms equity, but that it would
take a large investor boycott - over 80% to signif-
icantly affect a companys cost of capital. However,
even small increases in the cost of capital can signifi-
cantly affect stock prices.
If investors want to affect a company through
divestment, their strategy should be to band togeth-
er with other investors. A small investor will not
have much effect, says Professor Pietra Rivoli.
Ethical investing is more than a passing interest
to both investors and the investment community.
The number of service providers is growing and now
consists of more than 150 mutual funds that screen
out companies from their portfolios and engage in
other forms of investor activism.
Angel and Rivolis article, Does Ethical Invest-
ing Impose a Cost Upon the Firm? in The Journal
of Investing (winter 1997), captured the attention of
the investment community. Angel addressed The
Colloquium on Socially Responsible Investing at
the University of Chicago, and Rivoli participated in
a discussion on social screening and shareholder val-
ue at the Investor Responsibility Research Center
conference in Washington, D.C.
four-month college basketball season, an undergrad- and universities.
uate team from the Class of 99 will play the market
Georgetown also ranks
to compete for $25,000 for Georgetowns scholar-
ahead of all area schools,
ship funds.
The contest, sponsored by Tucker Anthony including University of
Incorporated, the official investment brokerage firm Virginia (#28), University
of the Big East Conference, involves student teams of Maryland (#30) and
selecting and managing a hypothetical $250,000 George Washington
portfolio. Portfolios were submitted on October 22. University (#35).
Winning schools are determined by the greatest
If the current pass rates
total return performance of the portfolios as of mar-
of Georgetown alumni
ket close on February 11, 1999. The winning team
will travel to New York City to see the 1999 Big on the CPA exam are any
East Championship at Madison Square Garden. indication, this trend is
With only four months to earn high returns, likely to continue. Results
team members Melissa Lucas, Courtney Droms, from the May and
Christopher Kenny, Jude Gorman, and Michael November 1997 CPA
Salemi have selected a highly aggressive portfolio,
exam place Georgetown
including stock in Amazon.com, BB&T Bank,
#1 and #4 in the nation
Hasbro, Nokia, Quik, and Wal-Mart. Were look-
ing for real fliers, said Melissa Lucas, who is captain on the audit section.
of Georgetowns track team. Pass rates on the other
As of November 9, the McDonough teams sections were also well
portfolio held fourth place among investment teams above the national
from the 13 colleges and universities that compete average.
in the Big East. The team plans to make its first
trade soon, focusing on retail stocks in the run up to
the holidays.
Were ready for New York, said Lucas. Watch
for the McDonough teams performance in the
spring issue of Georgetown Business.

Fall / Winter 1998 5

The Sound of Music Resonates with Two Alums

Robert Bowlin (B75) An accounting major at Georgetown, named president of Sony Music Interna-
Bowlin may have had an unusual path into tional, a $3 billion division of Sony Music.

I
f you are thinking of
a career in the music the music world. He worked with Price Although he played the trumpet as a
business, think glob- Waterhouse for sixteen years after gradua- boy, Bowlin brings no other musical back-
al. Robert Bowlin tion. As a partner with a number of enter- ground to the job except a love of music.
(B75), president of tainment clients, he caught the attention One of the legends of the business, Mo
Sony Music International, logs about 120 of Mickey Schulhof, then the CEO of Austin [of Warner fame and currently with
days a year in international travel in the Sony Music. Bowlin subsequently landed a DreamWorks], also started as an accoun-
increasingly global music business. job at the music company as its CFO. He tant, says Bowlin. You dont have to be a
The introduction of the compact disk became increasingly involved in the inter- musician to be successful in this business,
and the maturing of the U.S. market have national aspects of the business and moved you just need an affinity for music.
pointed the music business outside of the into the operations side. In 1994, he was
U.S. since the 1980s. American entertain-
ment continues to be a huge export today,
with the sound track from the recent
movie Titanic selling 16 million of its 25
million album units outside of the United
States.
Bowlin looks to Asia and Latin
America for growth potential. Within fif-
teen to twenty years, the Asian music mar-
ket will rival the U.S., predicts Bowlin.
Although it is only about $250 million
annually, the Asian music market is poised
for growth. The singer/songwriter will
emerge in China and will dominate the
entertainment business in that region.
The global financial crisis in Asia has
created a temporary setback, though, with
business off 35%. Our catalog business is
down and the emerging artist may suffer.
But ours is a hit-driven business. The big
hits, like Celine Dion, Mariah Carey, and
CoCo Lee, will still sell, says Bowlin.

Robert Bowlin

6 The McDonough School of Business

Marcus Johnson (MBA/JD 97)

T
he life of a musician
on tour may seem
grueling to some,
but Marcus Johnson
figures that life in a
law or consulting firm can be equally gru-
eling. And not nearly as lucrative or fun.
Since graduating in 1997 with a joint
degree in law and business, Johnson is clear-
ly enjoying himself. The musician
entrepreneur released two independent
CDs through his own company, Marimelj
Entertainment, and recently debuted Choco-
late City Groovin, with N2K Encoded
Music. The self-taught keyboardist wrote
most of the material, which he describes as
instrumental R&B. I hesitate to call it
jazz, he says. Its jazz with an urban vibe,
music that makes your neck move.
Johnson sees no conflict in being both
musician and businessman and draws
inspiration from other musical
entrepreneurs such as Quincy Jones,
George Duke, and Gerald Albright.
Quincy Jones doesnt sing, yet his best-
selling works use vocals, notes Johnson.
Its about creating music that people like.
Marketing is key.
The target market for Johnsons music
Marcus Johnson
encompasses a wide demographic25-54
years old, male/female, and educatedthe
smooth jazz aficionados. But even younger
The music business can be worse than While he relishes the independence of
audiences enjoy the hip-hop beat.
a jungle, according to Johnson, so his back- having his own company, Johnsons record
ground in business and law comes in more deal with N2K (Need to Know) offered
than handy. My education helps me under- him advantages such as greater distribu-
stand my attorneys and accountants, says tion. So far, the CD is selling well.
Johnson. When my accountant is throwing Down the road, he hopes to be tour-
spreadsheets in front of me with amortized ing less than the 300 days a year that is
costs, I know how to respond. Most of all, typical for musicians. He sees himself with
my education gives me the confidence to do his own studio and its own artists, creating
a lot of things I might not have. content and music in-house. The musical
Like negotiating record contracts. entrepreneur.

Fall / Winter 1998 1998 7

By Foot, Jeep, Yak and Camel...
By Richard Eng (IEMBA 99), John Gudas (IEMBA 99), and Professor Ilkka A. Ronkainen
hile technology promises to bring glob-
W al markets closer, sometimes there is no
substitute for hands-on exposure to
international business problems. To underscore that
point, the IEMBA class of 1999 became the fourth
class since the programs inception to travel to desti-
nations previously unknown in pursuit of the real-
life challenges confronting global companies.
And travel they did. Starting with an orienta-
tion in Hong Kong, the group logged over one mil-
lion air miles in ten days and over half a million
additional miles on the ground. The IEMBA stu-
dents heard Hong Kong-based speakers address
issues relevant to working in the Asia-Pacific region,
including success in eliminating corruption and the
need for close interaction between the private and
public sectors to combat piracy in intellectual property.
A trip to Shenzhen, one of the special economic
zones (SEZs) in the Peoples Republic of China,
highlighted the fact that Asia was in the midst of a
major economic crisis. Bamboo scaffoldings dotted
the landscape of Shenzhen - yet no construction
activity was present at any of the sites.
After their regional orientation, the eight stu-
dent teams scattered the Asian Pacific region to con-
duct meetings and research for a six-month con-
sulting project for their U.S.-based clients AES,
Bechtel, Hellmuth, Obata+Kassabaum (HOK),
Ingram Micro, Nomadic Expeditions, Praxair,
Retrieval Technologies, and Stride Rite Shoes.
Karen Flood, Karl Williams,
and Seth Grae on location
in China.
8 The McDonough School of Business
Tapping the Mongolian Market
How can a small, young company based in New Jer-
sey capitalize on the young, but rapidly changing,
Mongolian tourist industry? That was the task for
one IEMBA team advising Nomadic Expeditions, a
specialist in high-quality, special interest adventure
tours to Mongolia, and Nomadic Expeditions Mon-
golia, based in Ulaan Baatar, Mongolia.
As part of their fieldwork, the team met with
U.S. Ambassador LaPorta (a Georgetown alumnus)
and with Mongolian officials, including the Minis-
ter of Finance, to discuss foreign investment and
development of tourism.
IEMBA student Bruce Burton made the local
news, handling the televised interview with great
flair. One of the surprises we found was the degree
to which such a small company experienced the
same types of difficultiesdifferent managerial
perspectives, sketchy internal communications and
lack of data - that afflict larger companies, said
Burton (IEMBA 99).
The team designed a model to help Nomadic
Expeditions expand its marketing efforts through
the use of the Internet. It helped its Mongolian
operation expand services through improvements in
its financial management system and its recruitment
and training of qualified tour guides.
On the Road to Singapore
Ingram Micro, a large information systems distribu-
tion company, sought a financing mechanism that
could extend credit to Asian resellers while mini-
mizing the commercial risks of non-payment.
Armed with new financing tools to enhance reseller
purchasing power, Ingram Micro Singapore was
seeking to strengthen business ties with its existing
reseller base as well as attract business from other
resellers in the region.
The IEMBA team that worked with Ingram
proposed credit insurance for the companys resellers
as a short-term solution that could be an effective
marketing and financing tool to help minimize the
loss of sales. The team also suggested leasing as a
IEMBAs Experience the Asian Market
viable mid-term solution for those resellers carrying
sales transactions greater than $20,000 to high-qual-
ity national or multinational businesses.
While both credit insurance and leasing can be
implemented under the current Asian economic
slump, an additional, longer-term solution that the
IEMBA team proposed was the establishment of a
third-party financing fund called an Asian Reseller
Fund. The fund would provide inventory financing
directly to distributors and resellers, enabling Ingram
to increase sales and ultimately empower its resellers.
Keds for China
The Stride Rite Corporation of Lexington, Mas-
sachusetts put an IEMBA team on the job in Bei-
jing and Shanghai to research the market for chil-
drens shoes in China. The group met with Chinese
government officials to discuss the Chinese footwear
industry and childrens shoes, in particular. Beijings
largest and most upscale mall provided the venue for
primary research on pricing, styling, and marketing.
Our on-location research in China gave us
more knowledge than we could have imagined. We
found government officials and factory owners sur-
prisingly candid about the shoe industry, said John
Gudas (IEMBA 99).
Divide and Conquer
In order to examine the impact of Chinese currency
devaluation for a large U.S. industrial gas company,
one IEMBA team split up, half remaining in Hong
Kong, while the other half traveled to the companys
joint venture site in Beijing.
The Hong Kong group interviewed banking,
market, and government officials on the potential
scenario of a Chinese currency devaluation with an
eye towards exploring strategies the firm could employ
in China to mitigate potential direct exposure.
Meanwhile in Beijing, the rest of the group spoke
to the energy companys president/plant manager,
chief financial officer, and sales team, in addition to
meeting with Chinese government officials to discuss
the governments plans regarding a devaluation.
The teams findings regarding both direct and IEMBA team members
with the president of
indirect exposure were presented to the sponsors
Nomadic Expeditions,
management via teleconference one month after the Jalsa Urubshurow
teams return to the United States. The customer not (far right) during their
only endorsed the findings, but is also currently trip to Mongolia.
enacting several of the teams strategies to mitigate
its future risks.
Anyong haseyo? (Hello - are you at peace?)
Hellmuth, Obata + Kassabaum (HOK), an architec-
tural services firms, had successfully completed a job
in South Korea and sought information on the
potential for future work and market entry strategies.
The IEMBA group working for HOK discov-
ered that industry perceptions about doing business
with American architectural services firms was per-
haps their most worthwhile learning experience. In
general, they found that the Koreans view American
architectural firms as technically better at design, pro-
ject management, staying within budget, and meeting
deadlines. But they also found American firms too
litigious and inflexible in their adherence to contract
terms, overly concerned about cost and schedule, and
unfamiliar with the Korean business culture.
Technology has made instantaneous communi-
cation around the world possible. But as the IEM-
BA students discovered through their Asian resi-
dency, nothing replaces the value of face-to-face
communication.
Fall / Winter 1998 9

t may be a long way from Mobile, but
I
to Chris Puto, the Georgetown cam-
pus feels a lot like home. After spend-
ing his academic career at Duke, the
University of Michigan, and the Uni-
versity of Arizona, the new business
school dean jumped at the opportunity
to come to Washington.
Stepping onto the Georgetown campus
evoked the same feelings I had as an undergraduate
at Spring Hill College. While I saw this as a
tremendous opportunity to be part of a first-rate
institution known all over the world, on another lev-
el, it was an opportunity for me to give back to the
Jesuits what they gave to me, he says.
Since arriving on campus in July, Puto has
hardly had time to look back. Overseeing the imple-
mentation of the new MBA curriculum, meeting
with alumni and board members around the coun-
try, and interviewing new faculty recruits are just a
few of the things keeping him busy. Every universi-
ty has a unique culture. Im trying to understand the
Georgetown environment as thoroughly as I can,
he explains.
Understanding what motivates people perhaps
comes naturally to Puto, who has a minor in psy-
chology along with a Ph.D. in marketing from
Duke University. Even his award-winning research
focuses on understanding how consumers make
decisions.
Students are the major constituency Puto wants
to understand. Soon after they arrived on campus in
September, he spoke to undergraduate and MBA
students in separate forums, letting them know his
door was always open if students needed to talk to
him. Students are the renewal factor for universi-
ties, says Puto. Each year, new students arrive that
reflect the issues prevalent in society at that time. It
is critical that we keep in touch with what is moti-
vating students, as well as what is frustrating them.
10 The McDonough School of Business
Coming Full Circle:
The undergraduate program figures into the
new deans immediate goals. The undergraduate
students provide a sense of continuity by being here
for four years. We need to provide them with the
best possible business education during their time
here, he says. To ensure this, Puto created a task
force to look at the entire undergraduate experience,
including curriculum, co-curricular activities, advis-
ing, and interfacing with other parts of the university.
MBA students get equal face time with the
new dean, who might turn up for a club activity if
his schedule permits. As students at the University
of Arizona discovered, this is vintage Puto. One
MBA student commented in the recent Business
Week ranking, Chris Puto spends a lot of time com-
municating and working with students to constantly
improve the program. Another raved, Dr. Puto is
the driving-force behind transforming this program
into a top-25 program.
Puto also wants to understand what motivates
the faculty at Georgetown. Impressed by their
strong commitment to Georgetown and its stu-
dents, he would like to foster an environment where
faculty who are primarily interested in the classroom
can thrive alongside those with specific research
interests. Institutions need both to survive, he
maintains.
He also believes that Georgetown, like most
good business schools, must operate at the optimum
intersection of theory and practice. Many schools
are extremely theoretical and are challenged in the
relevancy area, others are heavily applied and do not
contribute much to theory, says Puto. I would like
us to be one of the schools proficient at both, and
that is a big challenge.
A Profile of New Dean Christopher Puto

International business is an area of proficiency

the new dean hopes to leverage in all of its facets
research, teaching, and recruiting. Puto recently con-
vened an international business task force to assess
where Georgetown stands in comparison to other
prominent business schools and, in particular, other
internationally-focused business schools, to ensure
that the school is maximizing this area of expertise.
Before receiving his Ph.D. in marketing, Puto
spent eleven years in the private sector in the sales
and marketing arena. He worked on positioning and
strategy development for the Burger King Corpora-
tion and was instrumental in their successful Have
It Your Way campaign in the 1970s. After working
for Quaker State Motor Oil and the automotive
industry, Puto decided he had earned enough money
to temporarily retire. He spent eighteen months in
Innsbrck, Austria learning to ski and speak German.
I came to the conclusion that I wanted to do
something that had a positive influence on other
peoples lives. While there are lots of choices one can
Chris Puto
make, the one that seemed to fit with my skills and
background was education, says Puto.
For two years, he taught at Appalachian State, a Although he was quite content to continue
small college in rural North Carolina. Realizing that watching Arizona rise in prominence, a call inviting
he loved teaching, Puto applied to Duke Universitys him to apply for the deanship at Georgetowns busi-
Ph.D. program and became their first doctoral grad- ness school intrigued him. Georgetown possessed all
uate in business. of the right attributes: excellent students, a strong
The University of Michigan offered Puto an and committed faculty, and a marketers dream -
assistant professorship and a glimpse into a large a powerful brand name. Georgetown is clearly
and successful business school environment. But the poised to make a major move in the global business
University of Arizona is where Puto feels he finally community. I wanted to be a part of that, he says.
came into his own. He held joint teaching appoint- An unexpected stroke of good fortune greeted
ments in marketing and psychology, and eventually Puto shortly after he accepted the deans position - a
directed the Karl Eller Graduate School of Manage- $30 million gift from Robert McDonough. As fate
ment, moving it from an unranked position in 1992 would have it, the two share a thing or two in com-
to 50th in 1995 and 35th in the 1997 U.S. News & mon. Bob McDonough spent the early years of his
World Report. career in Alabama. And both owe a great deal of
gratitude to their undergraduate Jesuit training.

Elisabeth Liptak

Fall / Winter 1998 11

Imagining the Returns On a Naming Investment

R obert Emmet, the great Irish patriot who was martyred in

1803 for leading a rebellion against the English, became
legendary for the speech he delivered before his execution:

Let no man write my epitaph...

When my country takes her place among the nations of the earth,
then and not till then let my epitaph be written.

Unlike his namesake, Robert Emmett McDonough (F49) doesnt have to

worry about who will write his epitaph or the circumstances under which it
will be written. McDonough recently gave $30 million to name the busi-
ness school, ensuring his legacy at Georgetown as surely as Robert Emmet
ensured his in the annals of Irish history.
McDonoughs gift is the largest in Georgetowns history and ties with
two other universities as the third-largest naming gift ever given to an
American business school. Bob McDonoughs unprecedented gift expands
the School of Business potential for growth and advancement tremendous-
ly, said Chris Puto, dean of the new McDonough School.
In explaining his decision to name the business school, McDonough
noted that business was where I made my mark. Business was my life.
But when speaking about the future of business, McDonough remembers
his education in the School of Foreign Service, making an analogy between
diplomacy and business. Business is global warfare without bullets, says
McDonough. We need strong businesses with strong leaders. He envi-
sions his gift as generating the momentum necessary to become the pre-
eminent business school in the United States.
As the chairman and chief executive officer of Remedy Temporary
Services in Aliso Viejo, California, McDonough oversees a company that
today has 230 offices nationwide and average annual billings of $500 mil-
lion. In 1965, as a successful executive in the oil business in Alabama, he
saw California flourish in the post-war boom, and predicted temporary ser-
vices would be necessary to fuel the rapidly growing economy. Leaving
behind the corporate life, he moved his family to California, as
McDonough puts it sight unseen. He opened the first RemedyTemp
office, and started again from scratch.

Fall / Winter 1998 13

 A lthough McDonough
worked in the corporate world
before starting his own compa-
ny, his entrepreneurial instincts
were evident from an early age.
As a newspaper boy in Chica-
go during the Depression, he
entered a contest to sell the
most subscriptions.
McDonough coveted the
prize, a shiny red bike. During
the Depression, you couldnt
ask your parents for anything,
recalls McDonough. And I
desperately wanted that bike.
The competition was stiff, but
I had a bit of imagination. It
was winter, and people would
have to run to the corner to
buy their papers. Id follow
them home, and say Isnt that
terribly inconvenient? Cant I
do that for you? They said,
What about the rain and
snow? I said, Im Bob
McDonough. I promise you
will never have a wet newspa-
per. So the newsstand lost a lot
of business, and I won the
bike.
Imagination drew him to
Georgetown, determination
kept him there. The first time
14 The McDonough School of Business
I set foot on campus, I froze,
says McDonough. I looked
around, and I saw John Car-
roll, and I saw Healy Hall and
something hit me. I immedi-
ately felt like I belonged. But
McDonough didnt have it
easy. Married, with one child
and a second on the way, he
worked as a guard at the U.S.
Capitol during the day and ran
a boarding house to make ends
meet, and attended George-
town at night.
McDonough matriculated
in the School of Foreign Ser-
vice (Georgetown lacked a
business school before 1957).
Having served in the Mer-
chant Marine during World
War II and with the United Two of McDonoughs raised its profile, as media cov-
Nations in Yugoslavia, grandchildren are continuing erage generated by the gift in
McDonough understood the the Hoya tradition. David The Washington Post, The New
importance of having a global McDonough is a sophomore York Times, The Los Angeles
outlook. At Georgetown, his at Georgetown. Meaghan Times and various other publi-
academic experience broad- Mikos (C91, G95) earned cations has shown. But sus-
ened his mind and deepened her MBA from the School of taining such momentum
his international perspective. Business. It is a great honor requires using the gift with
In a real way, Georgetown to have the School of Business wisdom and a bit of imagina-
expanded my mind, my think- named for my grandfather, tion-qualities inherent in
ing, says McDonough. You says Mikos. I hope the gift making McDonough the suc-
cant get through Georgetown will continue to raise the cessful individual he is today.
without thinking globally. Schools profile. The gift is only the beginning.
Just by naming the busi- Elizabeth Shine
ness school, McDonough has
Unveiling the business schools new identity

Leo J. ODonovan, S.J., president
of Georgetown University,
shares a light moment with
Bob McDonough, center, and
Dean Christopher Puto, right,
in Gaston Hall.
Bob McDonough Day
O
ctober 7th was declared Bob McDonough Day
by the business school, which hosted a series of events in
honor of its new namesake.
Rumblings about the identity of the donor could be
heard in hallways and in classrooms for several weeks
leading up to the day. But it was not until 11:30 a.m.,
when Bob McDonough appeared before a packed audi-
ence gathered in Gaston Hall, that the business school
was formally introduced to its benefactor.
Leo J. ODonovan, S.J., president of Georgetown
University, spoke personally and, at times, humorously, of
McDonoughs dedicated service to Georgetown. When
Bob interviews prospective students, no, make that inter-
rogates students who want to come to Georgetown..., he
joked.
McDonough charmed the audience, reminiscing
about his days as a Georgetown student. Girls were the
best thing that ever happened to Georgetown, he
recalled. The guys started to comb their hair and be more
attentive to the way they looked.
McDonough closed by letting the audience in on a
secret. Father ODonovan doesnt know this, he began,
but Georgetown never billed me for my last semester.
But I figure that with inflation and the cost of capital over
all these years, we are just about even.
Christopher Puto, the new dean of The Robert
Emmett McDonough School of Business, added a
moment of drama by unveiling the schools new name. Of
McDonoughs generosity, he said, Bob McDonoughs
gift, above all, symbolizes his unwavering belief in the
future of this school.
The celebration continued under the Healy tent,
where mugs and mousepads bearing the schools new
name were handed out. McDonough clearly relished
every minute of the day with his new extended family.
The Magnanimous
McDonoughs of
Georgetown
Georgetowns history is dotted
with McDonoughs.
Built in 1951, McDonough Gym was
named for Vincent S. McDonough, S.J.,
director of athletics from 1916 to 1928.
Affectionately known as Father Mac,
McDonough campaigned long and
hard for a new gym. Shortly before his
death in 1939, McDonough celebrated
23 years at Georgetown. When asked
what gift he would appreciate to mark
his service, he replied: You give the
boys a gym and Ill be happy. A com-
mittee was formed in 1947 to raise
funds for a gym in his honor.
Bernard Patrick McDonoughs (L25) $1
million gift, then the largest donation
in the Universitys history, made the
modern Law Center campus possible.
Like Bob McDonough, he was a self-
made millionaire, making his fortune in
manufacturing and construction. A
noted philanthropist, McDonoughs
generosity is aptly summarized in the
citation of his 1967 Georgetown hon-
orary degree: The material rewards of
his ingenuity and indefatigable indus-
try he has, in a truly Christian spirit,
regarded as a stewardship for the bet-
terment of his fellow man. Many of his
contributions...are of public
record...many more are by his own
wish unheralded. The Law Centers
McDonough Hall is named in his honor.
These McDonoughs are related to Bob
McDonough only through their com-
mitment and generosity to George-
town. But the impact they made
ensures the McDonough name will
retain a proud place in the Universitys
history.
Fall / Winter 1998 15
 FACULTY FORUM :
IPOs: Aftermarket Stock Price Support or
he regulations of the
T
Securities and
Exchange Commission
(SEC) are generally
aimed at curbing vari-
ous forms of market
manipulation in securities markets. How-
ever, the SEC has long held the view that
stabilization activities are useful in the
capital raising process.
Investment banks engage in stabiliza-
tion activities after an initial public offer-
ing (IPO) in order to provide price support
to weak offerings. On average, IPOs start
trading above the offer price but many
would drop in value if underwriters did not
provide such price support. In general, the
SEC has viewed price declines in initial
trading as damaging to the distribution of
shares and thus to the capital raising process.
Finance research has paid little atten-
tion to the specific activities of underwrit-
ers in the aftermarket. These interventions
by the underwriters are not well-under-
stood, because of both lack of data and lack
of transparency in industry practices.
There have been two main limitations in
the research. First, the literature has had to
hypothesize which offerings were stabi-
lized and which were not by using certain
proxies because the information is not
directly available. Second, the literature has
had to make assumptions about how these
activities that provide price support are
carried out.
16 The McDonough School of Business
In my research, I analyze in detail the
following three forms of aftermarket activ-
ities used to provide price support:
(1) Underwriters may post a stabilizing bid to pur-
chase shares at a price not exceeding the offer
price if the distribution of shares is not com-
plete. I refer to this direct intervention as pure
stabilization.
(2) Underwriters may assume a naked short posi-
tion prior to the offering and then cover the
position in the aftermarket.
(3) Underwriters may penalize members of the sell-
ing group whose customers quickly flip shares
in the aftermarket by taking away their selling
concession. This is referred to as a penalty bid.
In the first two cases the underwriter
provides price support by stimulating
demand, and in the third case by restrict-
ing supply.
Pure Stabilization and
Rationale for Allowing It
Stabilization activities have been carried
out for a long time. On March 18, 1940,
the SEC (in Release 2446), issued one of
its first statements on the problem of regu-
lating the pegging, fixing, and stabilizing
of security prices. The SEC stated that,
The Commission is unanimous in recog-
nizing that stabilizing is a form of manipu-
lation. The dilemma faced by the regula-
tors was whether to allow stabilizing to
continue unregulated, to completely pro-
hibit it, or to regulate it. One of the key
reasons given for stabilization was that
underwriters do not have enough capital to
do firm-commitment offerings and if they
cannot perform these functions then capi-
tal will not flow to industry. The tension
between price manipulation and capital
raising is evident even today. SEC Release
38067 (in 1997) states:
Although stabilization is a price influencing
activity intended to induce others to purchase
the offered security, when appropriately regu-
lated it is an effective mechanism for fostering
the orderly distribution of securities and pro-
motes the interests of shareholders, underwrit-
ers, and issuers.
Pure stabilization allows underwrit-
ers to post a stabilizing bid to purchase
shares at a price not to exceed the offer
price. These bids are also required to have
a flag identifying them as stabilization
bids. It appears that one of the reasons why
underwriters avoid using pure stabiliza-
tion is that such a flag would send a clear
signal to the market that the offering is a
weak one.
Why Short Covering is more
effective in providing price support
than Pure Stabilization
The SEC is aware that underwriters rarely
engage in classic stabilizing but engage in
significant aftermarket activities following
the breaking of the syndicate. An alterna-
tive to pure stabilization that does not
require much disclosure is the practice of
underwriters overselling the issue.
The overallotment or Green Shoe
option allows the underwriter syndicate to
sell additional shares up to a maximum of
15 percent. It is, however, common for the
underwriting syndicate to be naked short
over and beyond the Green Shoe. If
demand for the offering is weak, the short
position is covered with shares purchased
in the aftermarket. In the situation where
demand is strong, the short position is cov-
ered by exercising the overallotment
option. If the syndicate is naked short
and demand is exceptionally strong, then
the short position has to be covered by
purchases in the secondary market at
prices above the offer price.
Market Manipulation? By Professor Reena Aggarwal

In contrast to pure stabilization bids, below the offer price. On average, the vol- Penalty bids are found to be used
which are required by regulation to be ume turnover on the first trading day of an selectively and they tend to be assessed
below or at the offer price, there are no offering is 60-70 percent and poses a major only for weak offerings. I also find that
such restrictions on short covering. Short problem for underwriters. these aftermarket activities are not expen-
covering can and does take place at prices sive for the underwriting syndicate and
above the offer price, and no flags are Research Findings amount to a very small proportion of the
required to identify these transactions. For My research finds that underwriters play compensation they receive. The results
most offerings, short covering is a tool for an important role in providing price sup- raise the question of whether SEC regula-
providing price support. port for weak IPOs. The lead underwriter tions with respect to stabilization activities
also plays a very important role as a market are outdated.
The Use of Penalty Bids to maker in Nasdaq IPOs. Stock prices do
Control Flipping not tend to fall after the price support Professor Aggarwal teaches and conducts
The third form of aftermarket activity is activities are completed. Price support is research in finance at The McDonough School
the use of penalty bids. Each firm that not provided by engaging in pure stabi- of Business. Her current research focuses on
makes up the selling group receives com- lization. Instead, short covering is the prin- IPOs in the U.S. and Europe and volatility
pensation called selling concession for each cipal form by which price support is pro- in emerging markets. Last year, she was an
share distributed/sold by it. In typical vided. Short covering obtains the same academic fellow at the Securities and
IPOs, underwriters receive a commission results as pure stabilization but is less Exchange Commission in Washington, D.C.
of seven percent. Of this, 60 percent tends costly and has no disclosure requirements.
to be selling concession and is paid to the
selling group for distributing the shares. If
the distribution firms customers who
bought in at the initial offer price sell their
shares in the first few days then penalty
bids may be assessed on the distributing
firm. Assessment of penalty bids result in
forfeiture of the selling concession received
for distribution of shares that are repur-
chased for syndicate account in the sec-
ondary market. Therefore, the discount
from the offering price received by syndi-
cate members can be recovered.
Flipping is the term used for selling
shares in the immediate aftermarket that
have been received in an initial allocation.
When there is strong demand, underwrit-
ers are happy to see flipping (and the com-
missions the trading generates). But when
there is weak demand, the resulting selling
pressure requires that the underwriter
Reena Aggarwal
either stabilize the price or see it decline

Fall / Winter 1998 17

 Dividends

University Kicks Off Third Century Campaign

Bob McDonoughs (F49) $30 million naming gift to the business

school, the largest in the Universitys history, fortified the Third Century

Campaign kickoff on October 8.

The naming gift has allowed The McDonoughs School portion

of the campaign goal to increase from $60 million to $100 million. To

date, $57.7 million has been raised towards the new campaign goal.

Georgetown president Leo ODonovan, S.J., and campaign chair Jack

Kennedy announced a University campaign goal of $750 million.

Commitments for a state-of-the-art facility for The McDonough

School received a significant boost with an anonymous $10 million com-

mitment from a business school parent. Other gifts for the facility

include $250,000 from C. Allen Merritt (B62). Merritt, chief operating

officer of Liberty Financial Companies, Inc., recently joined The

McDonough Schools Board of Visitors and the schools major gifts com-

mittee. Board of Visitors member Thomas L. Bindley (B65) and Sarkis D.

Izmirlian (B94) also recently pledged $100,000 each to support planning

and construction of a new facility. To date, $17.1 million has been raised

for this project.

Financial aid was recently enhanced with a $150,000 gift from Marc

Sulam (B84). Sulam, a principal of equity research at Donaldson Lufkin

& Jenrette, serves on the schools Graduate Advisory Board. My experi-

ence at Georgetown was enhanced by the variety of people I met

there, says Sulam. By giving to financial aid, students in need can par-

ticipate in the Georgetown experience. It also motivates recipients to

replenish the fund when they graduate. This way, financial aid can con-

tinue to grow.

Several members of the Parents Council have made $100,000

commitments to The McDonough School, including Mr. and Mrs. E. Holt

Williams, parents of Brett (C00), who designated their gift to the Fund

for International Business.

To join the small group of the worlds premier business schools,

we must have the resources to compete effectively, says Chris Puto,

dean of The McDonough School. The generosity demonstrated by our

alumni and friends is clear evidence of the schools strength and direction.

18 The McDonough School of Business

Faculty and Staff NEWS
Going the Distance
W hat does an invest-
ment banker have in common
with a marathon runner?
The challenge, the long hours
or the work ethic? Bill Byrnes
(B72, L81), distinguished
professor of finance, would
argue all of the above. Byrnes
finished his first marathon
when he crossed the line
in 5:28:23 at the annual
Marine Corps Marathon
on October 25.
Byrnes developed his
passion for running while
working as an investment
banker. Running provided
a release from the hectic pace
of the job. Byrnes changed his
professional pace by leaving
his position as managing direc-
tor at Alex. Brown & Sons,
Inc., to join the McDonough
faculty this fall.
A native of Schenectady, NY,
Byrnes spent five years as an
assistant investment officer at
Mellon Bank. He then
returned to Georgetown,
where he taught finance from
197781, before joining Alex.
Brown.
Byrnes teaches mergers &
acquisitions and investment
banking to MBAs. Bringing
plenty of real-world experience
to the classroom, he can also
offer unique insight into oper-
Bill Byrnes
ating a company. Byrnes is on
the board of directors of Med-
itrust Operating Company.
The CEO of Meditrust
resigned in August, and the
board of directors is essentially
running the company.
Some specific issues I cant
talk about in class, Byrnes
explains, but I can give stu-
dents a broader understanding
of the concepts behind the
issues being discussed. Stu-
dents can definitely benefit
from that.
Byrnes current focus may be to
impart to his students the req-
uisite financial knowledge and
work ethic to succeed on Wall
Street. But he is already look-
ing ahead toward next falls
objectives. My goal for next
year is to [run the marathon]
in under five hours.
Practicing What
She Teaches
S ue Dugan (SLL77)
knows a thing or two about
competitive strategy, besides
teaching it to MBAs.
A linguistics student and a
competitive swimmer on the
mens team (Georgetown then
lacked a female swim team),
she was the first female to win Sue Dugan
the Universitys Robert Duffy
Scholar-Athlete award.
business background makes
Although she was accepted to
her a natural to teach in the
the University of Pennsylva-
new international MBA cur-
nias linguistic Ph.D. program,
riculum. Business precepts are
she decided to earn an MBA,
the same the world over, notes
and applied to University of
Dugan. Its applying these
Michigans business school.
principles in different countries
Fluent in Portuguese and
that gives a greater depth to
Spanish, and armed with a
business problems.
Michigan MBA, she worked
on corporate strategy for For- With four children, Dugan
tune 500 corporations, and lat- decided to put her consulting
er consulted with World Bank career on hold when she decid-
clients in Latin America and ed to teach full time. But she
the Caribbean. Fifteen years has no regrets about her deci-
after graduating from George- sion. Consulting doesnt offer
town, she was the first female the intellectual stimulation
athlete inducted into the Uni- teaching does, says Dugan.
versitys Hall of Fame. Its fascinating to see the
potential interpretations stu-
Dugan joined the Mac Group,
dents offer on a case.
a consulting firm, in the mid-
80s, and spent two years in
Hong Kong, developing the
firms Southeast Asian business
opportunities. She joined the
adjunct faculty at Georgetown
in 1990, shortly after returning
from Asia. Her international
Fall / Winter 1998 19
 Taking the Sting Out
of Statistics
K eith Ord is a practical
man. Ord, who is currently
teaching undergraduates
applied statistics six hours a
week, spends more time teach-
ing students how to deal with
real business problems rather
than taking a theoretical
approach. Simple statistics
will do as good a job as sitting
around and arguing about
statistics, Ord said.
A man of the 1990s, Ord fol-
lowed his wife to Washington,
D.C. after she accepted a posi-
tion at the Federal Drug
Administration. While pursu-
ing a position in D.C., Ord
commuted between his prior
position at Penn State and
Washington, D.C.
Ord had been teaching at Penn
State University since 1980.
Prior to Penn State, he taught
for 14 years at the University
of Warwick and University of
Bristol. Three years ago, he
became the editor of the Inter-
national Journal of Forecasting.
20 The McDonough School of Business
Keith Ord
In his most recent research
paper, the statistics professor
explored an inventory model
with order crossover and the
cost savings resulting from
cooperative inventory planning.
Ord is impressed with the
quality of his colleagues teach-
ing and research, the spirit of
teamwork, and the new MBA
curriculum, which appeals to
his practical side. The new
MBA curriculum has a lot of
appeal, said Ord. Its much
more balanced with more
flexibility.
A Shirt-Sleeved Approach
to Marketing Education
W hether it is advising
a retailers association about
the accuracy of price scanners
or reviewing a companys mar-
keting material for message
conflicts, Ron Goodstein loves
to solve real business problems.
I begin with the question:
What is the business issue Ron Goodstein
here? Then I use academic the-
ory to get a better answer for a
real problem, says Goodstein, Communication is the overar-
who joined Georgetowns mar- ching theme, though, in Good-
keting faculty this fall from steins research. Everything a
Indiana University. company does communicates
something to its customer, he
Goodsteins study on price
says. Goodstein is particularly
scanners in supermarkets is just
interested in studying whether
one example of a real problem
a companys communications
that his research helped to
converge, in which case their
solve. Looking at the pattern of
impact will be much higher. He
pricing errors that occur with
advertised specials, end-of-aisle points to an American car
specials, and regularly priced manufacturer whose communi-
products, he found that retailers cations he recently evaluated.
were generally more motivated All of their advertising says
to take action on pricing quality, but the showroom mes-
changes that cost them money sage is that they need a sale to
rather than the consumer. close the deal.
As enthusiastic as he is about
The controversial findings
brought some complaints by research, Goodstein is equally
the retail industry, but landed passionate about teaching.
Goodstein on the board of the Teaching counts. It does mat-
National Institute of Standards ter. But people can do great
in Technology. Eventually, the research and be good teachers.
industry adopted 75% of his I think there is a good balance
recommended methodology to at Georgetown.
develop scanner accuracy
checks.
Less Yen for a Cash
Reserve
T he power of banks as
shareholders and providers of
debts for Japanese companies
has declined, according to
Rohan Williamson, who
researches how banks around
the world handle liquidity.
Banks used to have a lot more
power. They were the ones
really extracting rents from
shareholders and other firms
by forcing them to maintain
enough cash to cover liabili-
ties, says Williamson. He
notes that as banks have
become weaker, Japanese firms
are holding less cash than ever
before. Early on, nearly 100%
of firms debt was bank debt.
This had dropped to 6065%
in 1995, and I suspect a lot less
in the last few years, says
Williamson.
He is anxious to see how this
trend plays out in the next
few years as Japanese firms
turn to international capital
markets to raise cash. Because
Japanese markets are not as
developed as U.S. markets,
Japanese firms will have to
depend more on international
bonds than American firms,
says Williamson.
Williamson, who teaches
international finance to under-
graduate business students,
began his research while work-
IN THE MEDIA
The McDonough naming gift received coverage in a variety of publi-
cations, including The Washington Post, The New York Times, and The
Los Angeles Times.
Christopher P. Puto, new dean of The McDonough School of Busi-
ness, was featured in a profile on selecting new business school deans in
the July 13th Washington Post.
The August edition of The Washingtonian featured The McDonough
MBA program in a profile of local area MBA programs.
Rohan Williamson
The stock markets September dip was The McDonough Schools
gain. Professor Reena Aggarwal was quoted on the subject of the
ing for Chrysler during the market dips effect on initial public offerings on the front page of
economic downturn in the ear-
the September 2nd Wall Street Journal. Professor Jim Angel provided
ly 1990s. In doing an initial
some context on the 1929 stock market crash in the September 1st
study for Chrysler we deter-
Washington Post, and also commented on market crashes on NPR, CNN
mined that the company need-
ed more cash to sustain them and Australian television.
through recessionary periods
Professor Jim Angel was quoted about the proposed Goldman Sachs
says Williamson. A follow-up
initial public offering in the August 11th edition of The Washington Post.
to that was looking at cash
holdings in other countries.
A September 20th Washington Post article on bachelor degrees in
Williamson looks at the cur- leadership included Professor Bob Bies opinion on these programs.
rent global economic situation
as a great learning experience.
Were in a time now that is
unlike that ever experienced
before. No one really knows
what is going to happen
because we cant base it on
anything that has happened in
the past. What we learn now
will become valuable in five to
ten years, says Williamson.
Fall / Winter 1998 21

Bill Droms
Fourth Time Lucky
B
ill Droms is back.
Droms assumed the position
of senior associate dean for the
1998-99 academic year in July.
Having previously served as
the associate dean for under-
graduate programs, associate
dean for graduate programs,
and associate dean for faculty,
Droms is not unfamiliar with
senior administrative posts.
I took the position because I
was on the new dean search
committee, and helped to
recruit Chris [Puto] to George-
town, said Droms. I felt an
obligation to help Chris during
his transition here, and to help
with the implementation of the
new MBA curriculum.
Droms has been at Georgetown
26 years, and served under three
deans-Ron Smith, Robert
Parker, and now Chris Puto.
22 The McDonough School of Business
Gone, But Not Forgotten
M ergers and acquisi-
tions wont be the same for
McDonough MBAs this fall.
After 16 years at Georgetown,
John Dealy has retired from
teaching.
Year after year, Dealy, who
also taught strategy and busi-
ness planning, was a consistent
favorite among students in
BusinessWeeks MBA surveys.
Formerly the president of
Fairchild Industries, a Fortune
500 company, Dealy was noted
for his rigorous, practical
approach. Students in Dealys
classes earned their grades.
His significant intellect and
his amazing focus made his
class demanding and interest-
ing, said former student John
Delaney (L89).
Dealy was no less demanding
of himself. Before my first
class, I saturated myself in
learning in the field, he said.
I wanted to teach the course
my way, I didnt want to follow
other professors. He empha-
sized the Socratic method,
time. And I owe it to the
challenging the students log-
ic, forcing them to defend
what they said and why they
said it.
Since teaching the first gradu-
ating class, Dealy has wit-
nessed the MBA programs
evolution. He is especially
proud of the strides women
have made, noting that in the
early 80s, women were still
uncertain of their role in busi-
ness. But male or female, no
John Dealy
shrinking violets were allowed
in Dealys class. He once
assigned a case on oil compa- His significant
nies to an all-female group in
his strategy class, overriding intellect and his
their groans about studying
this male-dominated industry.
amazing focus made
Not only did they give one of
the most outstanding presenta-
his class demanding
tions, said Dealy. But one of
them ended up running an oil
and interesting,
brokerage.
Explosive growth of Dealys said former student
company, Dealy Strategy
Group, forced Dealy to retire John Delaney (L89).
from teaching. I couldnt do
both, said Dealy. I didnt
want to scale back to teaching
part-time, and only being
available to the students part-
young people who work in my
company to be there for them.
He encourages his former stu-
dents to keep in contact with
him via e-mail. He can be
reached at jfdealy@erols.com.

Please e-mail your alumni notes
to shinee@gunet.georgetown.edu
or call Elizabeth Shine at
202-687-4080.
Alumni NOTES
UNDERGRADUATE
62 C. Allen Merritt Jr. was
named chief operating officer of
Liberty Financial Companies,
Inc., a NYSE-listed firm with
approximately $50 billion assets
under management. He now
resides in Lynnfield, Mass.
76 Colette Marie Furr
returned to work three years ago
after 13 years of being a full-time
mother. She is now an analyst in
the independent testing depart-
ment of Cincinnati Bell Informa-
tion Systems, where she recently
received an award for excellence.
In July, she earned her certificate
as a software test engineer
(CSTE). She resides in Crystal
Lake, IL.
76 Joseph J. Lhota was pro-
moted to deputy mayor for opera-
tions for New York City in July
1998. Joseph was previously work-
ing for Mayor Rudy Giuliani as
budget director. He is now respon-
sible for the day-to-day manage-
ment of the city government and
the budget.
72 Geoffrey Gross was
appointed managing director and
head of European operations for
DAccord Financial Services, Inc.,
a leading investment bank special-
izing in tax advantage financings.
He has been based in London for
the past seven years, working pre-
viously with Citibank and Bab-
cock & Brown.
73 Barbara A. OBoyle was
named vice president of the U.S.
Export-Import Banks project
finance division in March.
80 Kumar P. Barve has been a
member of the Maryland House
of Delegates since his election in
1990. He currently serves as the
chairman of the subcommittee on
science and technology. Kumar
welcomes any comments or sug-
gestions from fellow Georgetown
alumni who wish to share their
expertise in high-technology eco-
nomic development (e-mail him
at: delbarve@aol.com).
80 Stephen A. Scheuerle is
a lawyer with Gallagher, Reilly
and Lachat, P.C., in Philadelphia,
Pa. He, his wife, Linda, and their
three sons, Harry Adam, Owen
Eric and Stephen Cole, reside in
Bryn Mawr, Pa., where Stephen is
also the president of the George-
town Club of Philadelphia.
81 Geof Rochester is senior
vice president of sales and market-
ing at Comcast Cable Communi-
cations Inc. in Philadelphia.
84 Philip D. Baker, and his
wife, Jamie, own and operate Tal-
bot Heirs Guesthouse, a luxury
hotel in downtown Memphis,
Tennessee. Within their first year
of business, their client list includ-
ed David Copperfield, Claudia
Schiffer, The Robert Cray Band,
Secretary of Commerce Ron
Brown, Francis Ford Coppola, Hal
Holbrook, and Bridgette Fonda.
84 Peter Lawrence was
named executive director of the
Resort Leadership Council, a lob-
bying group that represents a
selection of oceanfront businesses
in Virginia. He has previously
served as managing director of the
Virginia Waterfront International
Arts Festival, where he helped
raise $1million in private sponsor-
ships.
85 Robert B. Aiken (L89)
was named president of Metz
Baking Company, a leading retail
bread company, in April 1998. He
was previously general counsel of
Specialty Food Corporation, the
parent company of Metz.
87 Molly Helfrich Gribbin
has left her job at the U.S. Trea-
sury Department, and has started
a family business with her hus-
band D.J., located in Leesburg, Va.
88 Timothy Seymour moved
to Russia in late August after
being named head of the fixed
income sales department at Troika
Dialog Bank in Moscow. Prior to
this move, Tim was at Union
Bank of Switzerland in New York.
89 Annalisa Nash was mar-
ried to Andre Fernandez on April
25, 1998, in Manhattan. The cou-
ple will live in Sao Paulo, Brazil,
where Annalisa is a financial plan-
ning manager for Philip Morris
International.
Fall / Winter 1998 23

89 Michael Psaros is a part-
ner at Keilin, Psaros, Shapiro Spe-
cial Situations Fund, L.P., a lever-
age buyout fund targeting
underperforming middle market
companies. Over the last eight
years, Psaros and his partners have
completed the largest ESOP
transactions in the U.S. and Cana-
da, such as United Airlines.
Michael and his wife, Robin, live
with their daughter, Alexandra, in
Manhattan, NY.
90 Trisha Teale is now a char-
tered public accountant and inter-
nal auditor at Florida Power and
Light. Trisha and her fianc have
settled in their new house in Coral
Gables, Fla., and plan to marry in
February 1999.
91 Karen Lynne Phillips was
married to Christopher Broussard
on May 9, 1998 in Washington,
D.C. The couple now resides in
Northern Virginia.
95 Jeffrey Duchesneau is
vice president and general manag-
er at Tri-Sum Potato Chip Com-
pany, Inc., a small, independent
snack-food production company
that was started by his great-great
grandfather in 1908.
96 Jessica Gage was married
to Timothy Kelly in August 1997,
and now resides in Staten Island,
NY.
96 Kevin Keck is an analyst
with Donaldson, Lufkin & Jen-
rette in London, England.
24 The McDonough School of Business
ALUMNI NOTES
MBA
85 Mike Gottlieb, profiled in
the Spring/Summer issue, was the
Republican candidate for South-
ern Californias 29th district in the
November election. Unfortunately,
he was defeated.
Professor Stanley Nollen organized the first gathering of business school alumni in
India. On hand were (left to right): Saket Dalmia (B95), Professor Nollen, Subhash
85 Doug Knopper has joined
Ammirati Puris Lintas (APL) as
Agrawal (MBA 93), Namita Dalmia (Sakets wife), Barbara Spencer (MBA 87), Amita
senior vice president and group
Agrawal (Subhashs wife), Anjali Aggarwal (MBA 97), and Harsh Gupta (MBA 97).
director for client services on the
Aetna and General Motors
OnStar accounts. APL is a full-
service, integrated marketing
MENTORING PROGRAM EXPANDS ITS REACH communications company, with
over 150 offices in 78 countries.
Remember how daunting it was to zero in on a career and search for that Previously, he was group director
at TBWA Chiat/Day in New
perfect job? The Mentor Network helps reduce the stress by providing
York and San Francisco, where he
advice and expertise to undergraduate sophomores, juniors, and seniors
worked on accounts such as Sea-
in a friendly environment. grams, Champion & Wonderbra.
We help students deal with the reality of the real world, says Allen
87 Harvey Chimoff has
Merritt, Jr. (B62), chief operating officer of Liberty Financial Companies, formed Velocity 1 Consulting,
who is spearheading the efforts to build the mentoring program across Inc., a marketing specialist firm
the country, along with associate dean Ann-Mary Kapusta.
committed to customized solu-
tions to help companies add value
Building upon the success of the Washington, D.C. program, the Network and increase sales. Prior to starting
Velocity, Harvey managed the
targeted New York, Boston, Philadelphia, and Los Angeles in the past
U.S. business operations and all
year. San Francisco and London are this years goal.
marketing for Liptons Tea Bag
division.
Although most mentors are graduates of the business school, they can
also be parents and friends of the business school. They may be recent
88 Eric Bauer moved from
graduates or offer many years of experience. If you are interested in Southern California to Washing-
being part of the mentoring network, please contact Ms. Allison Schultz ton, D.C. where he is now vice
in the undergraduate office at (202) 687-3851. president of finance and planning
for Choice Hotels.
89 Karin Mugnaini Girault
is working as a part-time consul-
tant for the Snoopy Restaurants
project throughout Asia, helping
 MBA
investors open a line of themed
restaurants and cafes throughout
the region. She lives in Hong
Kong with her husband, Denis,
and two children, Mattis and
Manon. Karin recently met up
with classmate Karen Kaufman,
who was in Hong Kong on busi-
ness for E! Entertainment Inter-
national Television.
90
Class Agent: Lorraine Herr
(Cmputrilit@aol.com) 9 South
021 Skylane Drive, Naperville, IL
60564
My husband, Michael, and I had a
great time catching up with Dave
Burke and his wife, Cathy, in
Minneapolis earlier this year.
Their two children, Whitney and
Connor, are doing wonderfully.
Dick and Jane Ashton Hawes
announced the arrival of their sec-
ond child, Colin Ashton Hawes,
in July 1998. Jane continues to
freelance as a writer. I had the
pleasure of reading a column of
hers in a recent issue of Runners
World.
Fredric and Sally Wakeman
send word from London. Sally left
Citibank in September 1997 to
start her own business in sporting
event management. Fred is work-
ing in European private equity for
Advent Management. Fred and
Sally had their first child, Connor
Evans Wakeman, in January 1998.
They report it is a big change to
be parents, but Connor is a happy
and easy baby.
The Wakemans have had a string
of Georgetown visitors including
Michael Carlo and his wife Patti,
Chuck Farber, and Harlan
Bradley Calkins. Plus, theyve
seen John Anderson on several
occasions.
Jason Wu writes that he and his
wife, Jackie, are busy with work
and traveling quite a bit. They met
Jeanne Tsao in Los Angeles at
the end of last year and had a
great time.
In October 1997, I completed the
Chicago Marathon and am look-
ing forward to training for anoth-
er in the future. No marathon for
me this year because Michael and
I had a baby, Emerson Reber
Beinhauer, in September 1998. As
Sally says, it is a big adjustment,
but we certainly are enjoying it
immensely.
Roland Manger is managing
director at Infobahn International,
a technology transfer company
focusing on Internet and intranet
enterprise software. Previously, he
was marketing director and co-
owner of the European Internet
provider, Cybernet.
Please write me all your news.
91
Class Agent: Mary Pat Blaylock
(creativecollections@erols.com)
You can fax me at 410-561-1279.
Lisa Ball was married to Keith
Ghezzi on May 2, 1998. Several
alumni attended. Lisa and Keith
honeymooned for three weeks in
Indonesia. They stayed at four
Aman resorts on Bali and Java.
They unfortunately were in Java
at the same time as the riots, but
left unscathed. From Java, it was
on to Hong Kong and then back
home to the Washington, D.C.
area. Lisa works for John Dealys
company, The Dealy Strategy
Group LLC. A few days after I
am writing this, Lisa will be trav-
eling to French Guiana to witness
a clients launch of a radio satel-
lite. Sounds like a fun business
trip!
Paula Cameron is working as the
brand manager for the business
section of The Los Angeles Times.
Mary Jean Duran is the com-
munity affairs manager at Tricon
Global Restaurants, the parent
company of Taco Bell, Kentucky
Fried Chicken and Pizza Hut.
She is based in Irvine, Calif.
Andy Feffer is a director of
sports marketing at DirecTV and
lives in Manhattan Beach, Calif.
Layla Kashani tells us that hes
bummed about the Braves (since
hes an Atlanta boy), but he cant
help rooting for the San Diego
Padres since hes practically a
native Californian now (he even
surfs!).
Layla Kashani works in the
quality department of CNBC in
New York City (part of her time
is spent in Fort Lee, NJ). She lives
in Manhattan but tries to remain
as Southern Californian as possible.
Sandy Kupetz is busy being a
stay-at-home mom and also
teaching piano lessons and selling
Tupperware. She is a senior execu-
tive manager with Tupperware
and likes the control it gives her.
Amit Pande works for Ernst &
Young in their information tech-
nology group. He and his wife live
in Arlington, Virginia.
Rajesh M. Patel is also working
for Ernst & Young, but in their
real estate consulting group as a
senior consultant. He is also
engaged. Congratulations, Raj!
Deborah Rich is marketing a
corn hybrid for her own company,
with her husband Tom. They have
settled into their home of two
years in Monterey, Calif., and are
enjoying outings to the beach,
park, library, and dance and music
classes. They have a full travel
schedule planned with upcoming
trips booked to Chicago, Orlando
(i.e. Disney World), Hawaii, Col-
orado, and a business trip to Chile.
When not chasing after her two
boys, Davis (4) and Bradford (20
months), Mary Pat Blaylock is
teaching aquatic fitness at the
MAC (a local Baltimore fitness
club). Right now she teaches a
killer water aerobics class as well
as an intro to all the types of water
fitness their club offers. It is great
fun and a fantastic way to stay in
shape. Recently, she took an
HTML web page design course
and will hopefully be designing
some web pages.
Fall / Winter 1998 25
 Alumni NOTES

92 Stephen Corcoran opened his Mattias Graff lives in Chicago Laura Rodman is trying to win

ALUMNI NOTES
first restaurant, called Sky, in with his fiance Rachel Maguire. the world record for holding the
Class Agent: Jonathan M. Gafni
October 1997. Sky is a 230-seat Ed Greenfield was the match- first job out of B-school the longest
(gafnij@lci.com)
full service restaurant located in maker. Mattias is a project manag- - four plus years at PriceWater-
Sudbury, Mass. Stephen and his er with the John Buck Company, a houseCoopers. Her husband Rick
Vanessa George checked in
wife, Nancy, would like to encour- large real-estate developer head- left KPMG in April and is now a
recently from California. Shes
age any Georgetown alumni in the quartered in Chicago. Ed hosted a strategy consultant for Stamford
doing well at Pacific Bell and just
Boston area to stop by. Halloween party in San Francisco. Research Institute Consulting in
moved to a new place. In other
You can e-mail Ed at greenfield@ Rosslyn, Va. No kids, just a zoo
news from the West Coast, Karen
OSuch reports that shes passed
93 ispchannel.com. Ed is working consisting of two big Labradors, a
Class Agent: Web Fletcher for ISP Channel, which will be cat and a lot of fish!
the three-year mark with Netscape
(wfletche@vpartners.com) bringing digital cable and two-way
and is taking the next year off
to travel the world with her boy-
broadband to a home near you 95
James Linen made an unsuccess- shortly. Class Agents: Lisa Bell,
friend Bill.
ful bid in Georgetowns Advisory Martina Ehlers
Neighborhood Commission David Goldberg is currently (mehlers@ACNielsen.com),
Im sure London is on Karens
2E08 election in November. trying to accomplish all major Kelly Reed, & Scott Shore
itinerary because its becoming
He currently works in the stressful life events within a nine- (sos@h-s.com)
home to more of our class. Doug
telecommunications industry. month time frame. Since last June,
Clarisse is the latest to head
David and his wife, Marnie, have Pam Caldwell is still living in
across the Pond, posted overseas
by Bankers Trust. Hell be joining 94 bought a house in the town of San Francisco, working for Ken-
Class Agent: David Gee Rockville, Maryland, and celebrat- nolyn Conference Center.
Al Kaiser and JP Neal. London
(dgee@us.ibm.com) ed the birth of their son, Sam, on
may not survive. JP and his wife
September 1. Additionally, David Tony Corsello has accepted a job
Laura are expecting their first
Ron Cieri scaled Mount Rainier, has recently started a new job with in the risk management program
child.
the third-largest peak in the U.S., McManis Associates, of General Electric. He is current-
in September. a consulting firm in Washington, ly based in Stamford, Conn. for
Closer to home, Niels Nielsen
D.C. training.
has been asked to take over
managing the installation of an Andrew Dyer has relocated
(again) to the Bay Area and Michael Harman is working for Bruce Dincin is still at US Air-
advertising order and billing
recently bought a house in San Mercedes-Benz North America in ways, and uses the benefits so we
system for The Washington Post.
Francisco. Tuscalosa, Alabama. still hardly see him in the Capitol
Running a team of 20 analysts
and developers will be a more- arealife in the 90s.
Since the last issue, David Gee Dirk Nowak was married to Eliz-
than-fulltime occupation through
has been travelling extensively to abeth Wintersteller in Salzburg, Steve Genn is now working at
1999, so hes looking for a replace-
China, Australia, New Zealand, Austria. The couple met at Gemi- Arthur Andersen Consulting in
ment to write this column.
Hong Kong, Brazil, Taiwan, Por- ni Consulting, where fellow MBA Washington, D.C. Roger Cepe-
Please contact Elizabeth Shine
tugal, the U.K., Malaysia, and Sin- alum, Roland Manger (MBA90) da just moved back to the D.C.
(shinee@gunet.georgetown.edu)
gapore. In fact, hes been fortunate was their mentor. area and is engaged. Glad he is
at Georgetown to volunteer!
to have dinner with John Onto, back in the Capitol area.
who was a visiting professor at Jennifer (Finn) Rios and her
Georgetown, in Melbourne earlier husband Martin have a beautiful Faysal Hamza is working in Dal-
this year, and Simon Black and baby girl, Emma Gabrielle, born las, Texas for Arco. He recently
his wife, Alice, in London in in August 1997. The couple live in made a pilgrimage to New York to
October. Santa Fe, N.M., where they are visit fellow Georgetown grads and
building a house. celebrate Pedro Herreras (MBA
96) birthday.

26 The McDonough School of Business

MBA
Michele Joseph has just moved
into a nice townhouse in Mary-
land and is keeping herself pretty
busy working in the D.C. area.
Michele enjoyed a trip to Trinidad
earlier this year.
Andy Libuser and his wife Andie
just had a baby, Kyra Rose, born
on June 10, weighing in at 8
pounds. Andy is working for
Sprint while Andi works for MCI
- this gives new meaning to the
term, baby-bell. (Bad joke...OK,
Im almost done). Sean Ross does
the telecom shuffle, moving from
AT&T to MCI.
Iva Mance is still working as an
equity analyst at NCM Capital in
Durham, N.C. Theres big news in
Ivas life as she has just purchased
her first home and finally finished
her first script! She gave up on the
idea of writing the great American
novel and decided to go Hollywood.
Matt Myers and his wife Chris
are the proud parents of a daugh-
ter, Annie Malone.
Kui Nakamura took some time
from trading on Wall Street to
marry Dawn. Attendees at the
wedding included Tony Hovsepi-
an and Scott Shore. Part of Kuis
global honeymoon included a
stopover in India and a planned
visit to Deepak Agrawal, who is
married and living in India (which
is nothing new since the last
update, but I thought Id throw in
here since I failed to mention it
then).
Kerri Olson married Ariel Eck-
CALIFORNIA NETWORKIN
stein on September 6, in Wash-
ington D.C. In attendance at the
wedding were fellow Georgetown A series of networking events in northern California will bring together
grads Charissa (Lee) Fay, area alumni with current and prospective MBA students. On January 5th,
Stephanie Scherr, Kathy Lam- Silicon Valley alumni and MBA students will get together for a happy
berty, Lara Kudryk-Traska,
hour at Blue Chalk Caf, 1630 Ramona in Palo Alto.
Giselle (Chan-Checa)
Engstrom, Larissa Moffa and Current MBA students interested in California employment opportunities
Martina Ehlers. Kerri and Ariel
both summer internships and full-time jobs will visit selected com-
spent their honeymoon in South
Africa. While in South Africa, panies during the week, including IBM and Netscape. The group has also
they spent a day in Johannesburg targeted Yahoo and Cnet. Alex Li, a second-year MBA, has been contact-
visiting Gerda Piprek, and her ing area graduates about both events.
husband, Eckhart.
On January 7th, current students and interested alumni will meet with
Kelly Reed has settled comfort- prospective MBA students in San Francisco. Kelly Best, admissions direc-
ably in the Capitol Hill area of
tor, is hosting the reception.
Washington D.C. She works with
American Management For further information about any of these events, alumni may contact
Systemspresently on travel to
the MBA Career Management office at (202) 687-3741.
Harrisburg, Pa. After doing the
Race for the Cure and the AIDS
Walk Washington, she is contem-
plating training for next years
Marine Corps Marathon. She is
still in the Army Reservesthis
year she had a two-week stint in
Atlanta where she was able to
spend some time with Lisa
Wyche (MBA93). She has also
been hanging out with Angelica
Beard (MBA94).
Carrie Sauer, a dedicated Sprint
employee, is one of the few
Georgetown MBAs still in her
original job since graduation.
When Carrie is not running in
U.S. Army ten-milers, she is trav-
eling to attend telecom conven-
tions to explain routers, relays and
long distance service.
Fall / Winter 1998 27
 Alumni NOTES
Sara Shea, still with ChaseOne is
another Georgetown MBA still at
the original place of employment.
We cant speak of Sara without
mentioning Kathy Lamberty,
who still works for Revlon.
Rafe Slattery is his usual witty
self. He is still working as an oper-
ations consultant for Metzler &
Associates based in Chicago. Hes
also finally finished getting his
BMW motorcycle back in good
conditioning and is riding with
the wind through the Midwest
on weekends.
Danielle Slentz is still enjoying
life in Australia. She has accepted
a full-time strategy position with
BHP in Melbourne.
Tricia Swart has attended D.C.
metro area events including sever-
al Wolf Trap concerts this past
year. Most notable were Bonnie
Raitt, Ray Charles and Grover
Washington, Jr. Tricia is working
in Fairfax and keeping in good
shape by rollerblading, yoga and
running.
Samantha Tarlton is in Boston.
She just started a new job with
Fidelity Investments. Mention
Fidelity, you get Lori Greiner,
who just left Boston, and is now in
Denver. As Lori moves from east
to west, Karin Lesica has moved
from Chicago to Washington,
D.C. She is still trying to parlay
her fascinating experiences in the
Baltic States into a regular job.
28 The McDonough School of Business
Staying put in D.C., at least for
now is Tony Hovsepian who
sometimes gets to New York via
US Airways and will attend rave
parties with Womo(aka, James
Healy).
Scott Vincent in Baltimore, Md.
just had a baby boy, Nicholas Vin-
cent, weighing in at 8 pounds and
10.5 ounces on October 6th, 1998.
Welcome to the world, Nicholas.
Sue Won and her husband Bu
Hyun came to D.C. for a weekend
visit in February. They now live in
Boston, where Sue is preparing for
law school and Bu is completing
his MBA at Boston University.
Kevin Wrathall is still working
for Oracle in San Francisco. Kevin
was married this year and reports
that hes settling into married life
nicely.
96
Class Agents: Leslie Blair
(leslie.blaire@spcorp.com),
Tim Doyle
(tdoyle@washington.palisades.org),
Julie Jaoudi (jaoudi@aol.com),
Jill Kianka (jillk@fool.com),
Miriana Martinova
(martinom@lci.com)
Michael Berman finished work
on his first photo-illustrated book,
Save the World: Serial Volume One:
Entry to the World. He is currently
seeking a publisher and plans to
start work on the second volume
in the series.
Mark Drexelius is still alive after
a stint in French-speaking West
Africa with Tidewater, Inc. Mark
also reports that J.D. Moss is back
at work in Nigeria after recovering
from a monkey bite. Both J.D. and
the monkey are doing fine.
Tim Doyle decided once again to
stay in school. He is enrolled in
the night program at George
Washington University Law
School, where he has been seen on
the streets of Foggy Bottom wear-
ing a No Med School button.
Pedro Herrera rolled over the
odometer, turning 40 on October
1, 1998. He celebrated in style at a
club in Manhattan with numerous
Georgetown MBA alumni, but
oddly enough, none are admitting
to the fact.
Julie Jaoudi was recently pro-
moted to senior manager of busi-
ness development at America
Online. Her expanded workload
continues to include strategic
planning and business develop-
ment, but she also does content
review for AOLs lifestyle pro-
gramming.
In January 1997, Phillipe Leno-
ble graduated from Universite
Catholique de Louvain in Bel-
gium. After working briefly as a
teaching and research assistant, he
moved to Citibank in London in
September 1997. Phillipe now
works as an investment industry
analyst serving the needs of insti-
tutional investors.
Mariano de Beer of McKinsey
ALUMNI NOTES
Consulting and Sara Shahidi of
Northern Telecom have planned
their wedding ceremony for
December 20, 1998. They will
be married in Buenos Aires,
Argentina.
Rich Oren married Nancy Sibirs-
ki on August 9, 1998 at the
Brooklyn Botanical Garden in
New York. Rich is working as a
product manager for Arcotoys
(subsidiary of Mattel) and Nancy
is a certified social worker. The
couple now reside in Port Wash-
ington, New York.
Georgetown alums were busy on
June 27, 1998. Anne Pusey and
Larry Roberts exchanged vows in
Philadelphia on June 27, 1998.
They honeymooned in Italy. Anne
was recently promoted to senior
product manager at America
Online. Larry is an attorney at the
environmental division of the U.S.
Department of Justice. Debbie
Beauvais and Alfonso Monge
(C86 and M90) were also mar-
ried that day in Monterey, Califor-
nia. The Georgetown couple hon-
eymooned in Hawaii and reside in
Miami.
Ron Rosier plans to wed Kathy
Erhart in July 1999. Ron is work-
ing as a project manager for
American Management Systems.
He and Jeff Steen (MBA 97)
recently worked together on a
strategic repositioning project for
a major credit card company.
 MBA
On September 12, 1998, Anne
Tiedje married Arthur Vendola
(M95). The ceremony was held
on scenic Mackinac Island,
Michigan. Fellow Class of 1996
members attending included
Peter Levis, Jill Kianka, Ken
Cruse, Beth Swaggart, John
Dearing, Michael Schmeltzer,
and Susan Lavington. The cou-
ple honeymooned in Bali. Anne is
now back on the job at the Dis-
covery Channel.
Mara Christina Alverado will
have her hands full with her father
Erik Alvarado and her mother
Leslie Blair. Mara has grown like
crazy since her birth on July 17,
1998. Eric quit the corporate
world and has taken up the envi-
able life of the independent con-
sultant. So far, his software test
management projects for three
clients are keeping him busy
enough to seek outside assistance.
(Anyone interested in working
with MS Access, Visual Basic, or
Lotus Notes should contact Erik
at EAlvar1677@aol.com). Just to
hedge the risk, Leslie has decided
that she will return to her market-
ing research management position
at Schering-Plough starting in
mid-November.
Sandi Mao and Keith George are
now the proud parents of a baby
girl, Jordan Chia-Yu Mao. Jordan
was born on April 27, 1998 and
looks just like mommy! Sandi also
reports that she has moved into
the market surveillance area at
The National Association of
Securities Dealers, where she
investigates the trading and mar-
ket-making aspects of investment
banks. Watch out!
Judy Renfrew and her husband
Brian Berger proudly report the
birth of their daughter Alexandra
on June 19, 1998. The family cur-
rently resides in Bethesda, where
Brian is balancing his freelance
architecture work with his parental
duties. Judy has returned to work
as an associate at Carr America
Urban Development, where her
efforts in managing both new con-
struction and renovation projects
are part of the ongoing improve-
ments occurring in downtown
Washington.
Luke Marshall Tinsey was born to
Mark Tinsey and his wife Lynn
on May 10, 1998. Mark is still
with Procter & Gamble. Luke is
growing like a weed and all three
are having fun in Cincinnati, Ohio.
97
Class Agents: Andrea Alexan-
der (alexamnder.ah@pg.com),
Jane Oyugi ( Joyugi@dutts.com),
Megan Mulvihill
(memulvihill@leggmason.com),
Rochelle Cheng
(Rcheng36@aol.com)
Jeremy Akel is now currently in
Dubai, working as the regional
marketing manager for Tidewater
Marine.
Laura Mayer is now a senior
financial analyst at UUNET
WorldCom. Laura also ran in
the Marine Corps Marathon in
October.
Jennifer Sheehy was honored in
June at the 14th Annual National
Conference for College Women
Student Leaders in Washington,
D.C. She received a 1998 Women
of Distinction Award for her
work as director of public affairs at
the National Organization on
Disability.
Robert D. Smink III was married
to Tiffany Berry West on May 2,
1998 in Washington, D.C. He is
currently a strategic planner at
Centura Health in Denver, Colo.
Mark Wilcox and wife Kris have
some exciting news. Isabelle
Angeline Wilcox was born on
October 8 at 5:02 pm at George-
town University Medical Center.
She is a beautiful girl with a full
head of hair. She weighed in at 6
lbs 15 ozs and was 20.5 inches
long . Assisting with the delivery
was Jason Zand, a Georgetown
MD/MBA (00). It was the ulti-
mate group project!!! Kris and
Isabelle are doing well and they
are all enjoying their new roles and
responsibilities.
John Wolpert is now the emerg-
ing technology development man-
ager for IBMs Alpha Works
group. The group is on a world
tour to sites in the U.S., Canada,
England, Israel, India, Belgium,
Germany, Switzerland, China and
Japan between October and Jan-
uary. They are in search of new
business opportunities coming
from emerging technologies
around the world. John is also
looking to recruit graduate stu-
dents in 1999 who have compe-
tencies and experience in high-
technology and business. These
people will help them create busi-
ness plans for new technology
projects at IBM. He and Chris
Bahr (MBA94) worked together
(in true Georgetown teamwork
fashion) to develop the Alpha
Works group into one of IBMs
leading emerging technology
development organizations. They
are being positioned as one way
IBM is changing the way it does
business by inserting the outside
development community directly
into the earliest phases of new
product development.
Daniel Yeh now works at the
Royal Bank of Canada as a senior
associate in the leveraged finance
group.
98
Ricardo Colin is a trader for Ban-
co Pactual in Brazil. Every week
Ricardo writes a short summary
about the economic situation of
the Latin American countries, and
sends it via e-mail to several
Georgetown alumni. He started
doing this when he was an MBA
for the Inter-American Business
Association, but found out that
alumni were interested in it too, so
he has kept it up since. If youre
interested, you can reach Ricardo
at: hoya-mba@yahoo.com.
Carlos Fonseca is working for
Citibanks global emerging mar-
kets group in Mumbai, India. He
is taking part in a two-year inter-
national training program, and has
worked in Istanbul and London.
Carlos reports that also taking
part in the same Citibank program
is classmate Nathan Richardson,
who is now stationed in Poland.
Fall / Winter 1998 29
 Alumni NOTES
David Granson is currently with
Goldman Sachs in New York,
working with the equities divi-
sion, private client services. He
reports that also at Goldman New
York is Ali Bastani. In March
1999, David will be moving to
Philadelphia, while Ali will go to
San Francisco.
Scott Mitic and Peter Mellen
have started a company called
Visiq Online Learning, based in
San Francisco. The company is
funded by outside investors, and
they now have a total of eight peo-
ple working for them.
Jennifer Ullyot and Melissa
Flemings traveled to Prague,
Vienna, and Munich this summer.
Jennifer recently started as manag-
er of business development in
interactive marketing at America
Online.
30 The McDonough School of Business
IEMBA
96
Class Agent: Thom Arnsperger
Mark Bloom has recently been
promoted to director of commer-
cial accounts for Lockheed Mar-
tin, where he divides his time
between offices in Meadowlands,
N.J. and McLean, Va. Mark will
be responsible for running a client
engagement for Lockheed Mar-
tin, providing information tech-
nology consulting support to
include data center operations,
applications support, and project
management.
Pietro Gerosa and Terri Frick
welcomed the arrival of Francesco,
their new son, on July 12, 1998 in
Lugano, Switzerland. All three
members of the family are well.
Pietro promises more news soon.
Ron Pippin is pleased to
announce the arrival of the newest
addition to the Pippin clan.
Spencer Henry was born on
September 10, 1998, at 2:42 pm.
The brown-eyed, brown-haired
boy is doing fine, resting at home
with his new, proud parents and
older brother.
Greg Spierkel, president of
Ingram Micro, Asia Pacific is
pleased to announce that his for-
mer classmate and teammate, Guy
Abramo, has accepted a position
as senior vice president of strategic
marketing at Ingram Micro.
97 Minh Le has accepted a new
ALUMNI NOTES
managerial position with Ander-
Class Agent: Lynn Anne Miller
sen Consulting. She is moving
Jean-Luc Bejot and his family
from New York back to the Wash-
ington metropolitan area.
will be relocating to the D.C. area
at the end of December. He will be
Michael McCarthy has accepted
taking up a new position at the
a position with HOVDE Finan-
biotechnology/venture capital sub-
cial located in Washington, D.C..
sidiary of the investment bank
In his new role as vice president,
Prestwick Scientific Capital.
Michael focuses on investment
banking, specifically on mergers
Lucy Reilly Fitch has a new job as
and acquisitions in the financial
the director of business develop-
services sector. In addition to
ment and strategic planning for
investment banking, HOVDE
Lockheed Martin Aeronautics
Financial maintains an ownership
Sector. Congratulations, Lucy!
interest in several banks across the
country. Michael reports that he is
Bill Grove is pleased to share the
happy to be putting his IEMBA
news of his expanding family. His
degree to good use.
daughter, Haley Isabella, arrived
on July 14, at 7:02 p.m., weighing
Herbert MacArthur reports that
in at 8 lbs. 12 oz. At this point, her
he and wife Lisa have recently
specialties are (in no particular
purchased a new home in
order) looking cute, keeping her
McLean, Va., and the move-in has
parents up at night, and winning
finally been completed.
the favor of her older brothers.
Lynn Anne Miller was recently
Bob Johnson and his wife Joanne
engaged to Jonathon Phillips,
announce the arrival of Andrew
whom many IEMBA alumni met
Michael on Bobs birthday,
at the recent reunion. They are
September 30, 1998. Andrew
planning a January wedding and
weighed in at 8 lbs., 4 oz., and 20
will reside in Arlington, with an
inches. Mom, baby, and two sib-
eventual house-hunting sojourn
lings are all doing fine.
planned for Bethesda. Lynn also
recently presented a case study she
Suzanne Kaiser is only four cred-
developed on high-tech marketing
its away from graduating from the
at a Tower Club marketing semi-
Pulitzer School of Journalism. Her
nar sponsored by local marketing
business articles have been pub-
agency RMR & Associates.
lished in The New York Times, The
Financial Times book review sec-
tion, and The Reuters Journal. Keep
an eye out for her byline in the
National Law Journal.
 IEMBA
Keihan Sedghi is on the move
again! He has accepted a position
as principal consultant with
CapGemini, which will undoubt-
edly result in more travel.
Nonetheless, he reports that he is
looking forward to the experiences
and exposure provided by his new
career.
98
Class Agent: Debbie Weil
Michael Canzian certainly put
his classroom skills to good use
during the program, and was pro-
moted twice by British Aerospace
as a result! The first time was in
March, 1997 when he was pro-
moted to director of sales for the
Americas. He was promoted again
a year later to director, commercial
operations and sales, worldwide.
Congratulations, Michael!
Joanne Coffey was promoted to
director of finance at Excalibur
Technologies, a publicly traded
software company located in
Vienna, Va., in January 1998. The
promotion added the corporate
controller role to existing financial
planning and analysis responsibili-
ties.
Linn Donaldson was promoted
from executive director of admin-
istrative and financial services to
chief financial officer of The
McDonough School of Business
at Georgetown University, effec-
tive January 1, 1998.
Amr ElSawy was promoted to
vice president and corporate offi-
cer of the MITRE Corporation, a
non-profit systems engineering
firm headquartered in McLean,
Va. He will be managing the oper-
ation of a new MITRE-controlled
affiliate, and will lead the develop-
ment of MITREs aeronautical
information services business.
Thomas Fiser accepted a new
position with S.C. Johnson Wax,
in their North American Con-
sumer Products Division. As a
result of the change, he has relo-
cated to Racine, Wisconsin, where
he began work in mid-October.
Erik S. Gaull (MPP95) made an
unsuccessful bid for a Georgetown
Advisory Neighborhood Com-
mission seat in Novembers gener-
al elections.
Dale Howell was promoted to
director, financial planning and
reporting at Raytheon Systems
Company (RSC). RSC is a $15
billion per year operating entity
within Raytheon Corporation,
and is headquartered in Arlington,
Va.
Michael Hughes has accepted a
new job at Argon Engineering
where he will be joining his former
classmate, Joe Carlin.
Maureen Lalor accepted the
position of manager of business
development for CrossMedia
Corporation. CrossMedia is a
start-up company which provides
a suite of voice navigations ser-
vices using state-of-the-art voice
recognition technologies. With include: networking, continuing
text-to-speech and automatic education, and helping to raise the
speech recognition engines, Cross- profile of MSB. Another alumni
Media provides people with an event is scheduled for December.
alternative access to their e-mail
messages by using simple voice Combined Defense Integrators
commands from a phoneno opened for business on August 3,
more lugging the laptop around! 1998, in the District of Columbia,
with Dennis Wilson as president
Paul LaPorte, along with wife and CEO. The firm assists defense
Dawn, welcomed the arrival of a contractors from foreign countries
daughter on 8/21/98. Sydney who wish to do business in the
Alexa arrived twelve days early, United States.
weighing in at 5 lbs. 14 oz. The
new parents report that the family
is both happy and healthy.
Anupam Pahuja has accepted a
new position with Andersen Con-
sulting. Details of Anus job will
be forthcoming. Congratulations,
Anu!
While he is still employed with
Bell Atlantic, Kamran Sis-
tanizadeh has changed jobs
within the company to a new sub-
sidiary called Bell Atlantic Global
Networks Inc. Kamrans new title
is chief technology officer.
Deborah Weil reports that seven
IEMBAs attended an alumni bar-
beque in Alexandria last month.
In attendance were: Andre Gam-
rasni, Victoria Rixey, Mary-
Rose Szoka, Dean Eveland,
Alan Li, Marylynn Placet, and
Debbie herself. The barbeque was
hosted by the Alumni Association,
which IEMBAs are encouraged to
join. Chris Puto, Dean of The
McDonough School of Business,
spoke at the event. According to
Debbie, benefits and goals of join-
ing the Alumni Association
Fall / Winter 1998 31
Georgetown...The Way it Was

The roots of the business school began in the School of Foreign Service

(SFS). Business courses appeared in the SFS curriculum from the begin-

ning, but in 1936 they became part of a new division of business admin-

istration within SFS.

REMEMBERING
After World War II, Georgetowns enrollment almost tripled as

the University tried to accommodate the number of returning veterans

and others whose education was interrupted by the War. Many of the

students in the post-War years took evening classes.

One such student was Robert McDonough, pictured (right) in

the February 1949 issue of the SFS magazine, The Envoy. McDonough

worked as a Capitol Hill police officer on the midnight to 8 a.m. shift.

Also pictured (bottom) is Leonard Toussignant (F 49), a classmate and

friend of McDonoughs. Both men came to Georgetown through an

arrangement with Kings Point, a merchant marine academy established

during the War. Toussignant, who made his career in the defense industry,

joined in the celebration for his friend on October 7th.

georgetown university Non Profit Organization
the mcdonough school of business US Postage
old north building PA I D
Washington DC
washington dc 20057-1008 Permit 3901