Business

SPRING / SUMMER 2001

VOLUME 13 NUMBER 2

(c)2001 The New Yorker Collection from cartoonbank.com. All rights reserved.

Are Dot.Coms Dead?

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
John Mayo, Ph.D.
Editor
Elizabeth Shine g99
Contributing Writers
Tom Price
Susan Price
Elaine Ruggieri, APR
Designer
Nancy Van Meter
Georgetown Business
welcomes inquiries, updates,
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
old north building
washington dc 20057

phone: 202-687-4080

www.msb.edu
 Letter from the Dean

A
s you can see, Georgetown Business has a new look. The redesign of the

Welcome
magazine reflects the launching of a new graphic identity for the

McDonough School of Business. The growing recognition of our various

programs demanded an identity that gives weight to Georgetowns distinct style of

business education. Accompanying the feature on our new identity are static decals.

We hope youll display the decals with pride!

The decline of the Nasdaq composite index has led to a massive dot.com shakeout,

and much media ink has gone into chronicling the death of dot.coms and the resulting

financial losses. But as Professor Paul Almeida observes, we should never have

expected most or even many dot.coms to succeed. History shows that the trajectory

for new technologies typically leads to a rash of new companies that undergo vigorous

competition culminating in a bloodbath. A few clear industry winners emerge to

exploit and develop the new technology.

Our lead feature in this issue focuses on the lessons our faculty and alumni have learned

through their experiences with founding, running and funding dot.coms, and what the

future holds for Internet businesses. Its a thought-provoking article, and gives valuable

insights into what it takes to succeed, or successfully fail, in the New Economy.

As we end another successful year, and look forward to the fall, I hope you will con-

tinue to keep in touch. Please let us know what you think of the new graphic identity

and the way we have incorporated it into the magazine. Send your comments to

shinee@georgetown.edu.

Christopher P. Puto, Ph.D.

Dean

CONTENTS

Inside Information . . . . . . . . . . . . . 2

Are Dot.Coms Dead?. . . . . . . . . . . . 5

Business School Launches

New Graphic Identity . . . . . . . . . . 12

Foolish MBAs Compound

Entrepreneurial Skills
by Writing Book . . . . . . . . . . . . . . 14

Alumni Notes . . . . . . . . . . . . . . . . . 25
1
Inside Information

Georgetowns MBA Program Rises Seven Places in

U.S. News & World Report Ranking
.S.News & World Report ranked Georgetowns

U McDonough School MBA program at #22 in its

annual Americas Best Graduate Schools edition,
up seven places from last years ranking of #29. This places
Georgetowns MBA program among the top six percent of
341 accredited American MBA programs surveyed.

We are pleased to be recognized by U.S. News & World

Report as an elite MBA program, says Christopher Puto,
dean of the McDonough School. The U.S. News ranking
underscores the significant advancement of Georgetowns
MBA program.

U.S.News &World Report surveyed all 341 accredited masters

programs in business, and calculated rankings based on
a weighted average of several quality indicators, including
reputation by academic and corporate recruiters, placement
success, and student selectivity.

U.S.News & World Report also lists the leading MBA program
specialities ranked by business school deans and senior faculty.
Georgetowns MBA program ranked 15th in international
business and 13th in non-profit management.

cDonough Dean Christopher Puto presents Ted

M Leonsis (C77), president of AOL Interactive Proper-

ties Group, with a sweatshirt incorporating the
schools new graphic identity at Georgetowns Capital Technology
I dont pay all that much Summit, January 2627. The summit is the fourth annual MBA
attention to [U.S.News], student-run conference that brings industry leaders to George-
town to discuss the latest trends in technology. Leonsis and Motley
but I think youll find Fool co-founder Tom Gardner were this years keynote speakers.
that our business school
is ranked ahead of theirs.

Leo J. ODonovan, S.J., former president of Georgetown University,

in the March 22 Washington Post, commenting on a remark that
several of Marylands graduate programs rank above Georgetowns.

2 The McDonough School of Business

 Leaders in world business are the first true global citizens. As such, they have
worldwide capability and responsibility. Our decisions affect not just economies but
entire societies. Not just the direct concerns of business, but world problems of
poverty, the environment and security.

Anita Roddick, founder of The Body Shop, who spoke about her book,
Business as Unusual, to the Georgetown Business Ethics Institute on January 30.

.S. Treasury Secretary Paul

U ONeill delivered the keynote

address at the Workplace Safety
Summit on March 30. The summit was
designed to raise awareness of workplace
safety. Co-sponsors included the George-
town Business Ethics Institute and
DuPont Safety Resources. The event was
obert Piacesis (MBA02) initiative to improve fuel efficiency hosted by the McDonough School.

R for trucks won the $10,000 prize in the ideaChallenge,

a new McDonough School business plan competition. Left
to right: Dean Christopher Puto; keynote speaker Dave Holtzman,
CEO of Opion, Inc.; Robert Piacesi; and second keynote speaker
Kamran Amjadi, CEO and co-founder of e-centives, Inc.

Spring / Summer 2001 3

Inside Information

Dariush Afshar (B01) is the recipient of a Fulbright

Scholarship. Afshar will examine issues concerning
European Union and French telecommunications
laws, and will work with faculty from the cole des
Hautes tudes Commericales and cole des Hautes
tudes Politiques, and officials at the French Min-
istry of Finance and the French Commission to the
European Union.

arold McGraw III, president and CEO of

H The McGraw-Hill Companies, urged the

2001 MBA graduating class to find their
voice by becoming engaged in issues that will shape the
future. Mr. McGraw was the MBA commencement
speaker at the ceremony on May 25.

ason Vines, vice president for communications at the

J Ford Motor Company, spoke to MBAs April 10 about

the Ford Explorer/Firestone Tires case and the role crisis
communications plays in corporate life.

4 The McDonough School of Business

Are Dot.Coms Dead?
Dot.Coms Redefined

8
Internet hype blurred the reality that any new technology needs to evolve before it
can make a widespread impact. Professor Paul Almeida examines the hype and the
industry shake-out.

Sound Business Models Are Key to Successful Dot.Coms

9
Proven business practices arent sexy enough to make the news, but theyre the reason
Blackboard Inc., an e-education company, has survived the dot.com tailspin.

Dot.com Dive Underscores the Potential of the Technology Sector

10
Has venture money for dot.coms dried up? Andrew Sachs (F96, MBA96)
explains funding opportunities for tech companies are still possible.

The Myth of the Dot.Com Whiz Kids

11
Peter Mellen (MBA96) lived the roller-coaster ride of the dot.com startup.
He talks about what he has learned from the experience.

Spring / Summer 2001 5

Dot.Coms Redefined
Are dot.coms dead?
Are large numbers of them dying?
Of course.
Professor Paul Almeida
Professor Paul Almeida
earned his Ph.D. from Wharton.
His current research focuses
on the inter-firm transfer
of knowledge within
technology-intensive regions.
6 The McDonough School of Business
W
e should never have
expected most or even
many dot.coms to suc-
ceed. Through history,
technological opportunities have prompted
new entrants into new or redefined busi-
nesses. This pattern could be seen in the
auto industry nearly a 100 years ago, or
semiconductors 40 years ago, or home
video games a couple of decades ago. Of
the new entrants, some get it right, but
most dont. The invisible hand works, there
is a shake-out (and a learning process), and
a few firms go on to exploit and build the
technology at hand successfully. Dot.coms
are following this pattern.
Ironically, it was information technol-
ogy (IT) that helped create and feed the
hype about Internet-related businesses.
Part of the problem was the acceptance of
half-truths or complete myths by experts,
including investment managers and ven-
ture capitalists. Phrases like first-mover
advantage and winner-take-all markets that works. Look at the pure advertising
inspired both established firms like Reuters
newswires and new firms like Bluefly.com,
an online outlet store for designer fashions,
to make large investments in attempted
land grabs. The idea of reach suggested
that Internet firms could go after numer-
Of course not!
ous customers in different locations and
market segments simultaneously through
the Internet. For instance, WebMD
attempts to reach hypochondriacs, doctors,
nurses, pharmacies and hospitals all at once!
Firms like Priceline.com bought into the
idea that the Internet made a firm instantly
global. But words, even cute business
phrases, are not substitutes for analysis.
The Internet (or more broadly, IT) is a
tool. This tool has provided an opportunity
for easy entry into business. But easy entry
into business never meant easy or sustain-
able profits (in fact, it often points to the
opposite). To be profitable, a firm needs to
be in an attractive business segment. A
common mistake is to equate growth of a
business area with attractiveness. Also, for
any firm, profitability is not just about
technological capabilities, but associated
business capabilities.
Finally, and this is especially relevant to
dot.coms, the firm needs a business model
model adopted by a large number of hope-
ful dot.coms. Yahoo, for instance, is the pre-
mier example of a company that relies on
advertising. Even as Yahoo increased traffic
to its sites, its stock price plunged along
with advertising revenues. The industry
realized that banner ads werent very effec- tries. These may not be visible to the aver- continue to exist, only occasionally as inde-
tive. Now Yahoo has to look at alternative age consumer, but they are improving effi- pendent pure plays. Increasingly, these
business models as well as seek to make its ciency in dramatic ways. firms will be linked to established firms,
advertising more effective. So information technology is here to forming hybrids with complementary
Many dot.coms didnt just mistake stay and dramatically change business. The capabilities. These surviving dot.coms (and
sales for profitability; they ignored another past irrationality of bloated expectations venture capitalists) are now going to be
conceptsustainability. EBay, which is for Internet-related firms and the current more evaluative and sophisticated about
one of the few customer-to-customer busi- pessimism about the possibilities of the what IT can do. And this will show up in
nesses, is also one of the few that makes Internet will both dissipate. Dot.coms will the bottom line.
money. This model works, in my opinion,
because it makes use of one of the less
talked-about opportunities for an Internet-
related business, i.e. network effects. eBay
is customer-to-customer based, and is
focused on creating a community; this
makes it really hard for a new entrant to
duplicate or overtake eBay. Why should
anyone want to sell something through
anyone other than eBay? EBay has over six
million users. If I want to sell something, I
want six million people to be able to see it.
If I want to buy something, where do I go?
I go to the site with the most products on
sale. This creates a positive feedback loop
that makes eBay hard to challenge.
Beyond dot.coms, the Internet and IT
have already transformed businesses and
industries and will continue to do so for
many years to come. The Internet has
aided productivity increases by helping
firms control their logistics or reach their
customer or manage knowledge. But there
are still many opportunities for further
application. Business-to-business (B2B)
has not fully taken off. IT offers tremen-
dous opportunities for further improve-
ment in management of supply, distribu-
tion and inventory. Multinational firms are
just beginning to harness the power of
information technology in coordinating
operationsfrom transfer pricing to
R&D and manufacturingacross coun-

(c)2001 The New Yorker Collection from cartoonbank.com. All rights reserved.

Spring / Summer 2001 7

Sound Business Models
Are Key to
Successful
Dot.Coms
Michael Chasen
Michael Chasen (MBA95) is the CEO
and co-founder of Blackboard Inc., a
Washington-based e-education company.
In April 2001, Blackboard received
$48 million in its fifth round of venture
funding. Mr. Chasen sits on the
McDonough School Board of Advisors.
8 The McDonough School of Business
O
ne of the reasons Blackboard is
successful in this market full of
dot.bombs is because we built
the company around a strong
business model. We did not go crazy with
the mantra of build-it-and-they-will-come.
So many web-based companies believed
that they should first attract a user base and
then monetize that user base. They were not
clear about how they would earn revenue or
where the earning potential was.
Blackboards business model stuck to
the fundamentalsbuild a good product
and then sell it to make a profit. Black-
board sells software and services, and we
also charge an annual license fee, so we
have strong recurring revenue each quarter.
I think a lot of the dot.com bust was a
result of emerging business models that
were not really grounded in the basic busi-
ness fundamentals.
That said, I still think business models
that are focused around websites or user
monetization can work, but the fundamen-
tals need to be there. A company needs to
offer a product that people will pay for and
that can generate enough money to make a
profit. There are several dot.coms that actu-
ally do make moneyfor example, Yahoo.
The companies that gave their products
and services away for free, causing huge
costs to their investors and squandering the
capital they were raising, really led to the
dot.com crash.
I think Blackboards greatest
challengeand that of the market
overallis that some startups have sur-
vived in the wake of the dot.com crash,
even though they have questionable busi-
ness models. They have survived on large
amounts of capital, since capital has been
almost free over the last year. In the
dot.com glory days, these startups became
competitors with other startups that also
did not have sound business models, and
have since been forced to close. But in the
current environment, the surviving startups
are competing against capitalized compa-
nies that are making a profit. In order to
compete now, the startups are giving their
products away or selling them below cost.
This trend puts pressure on compa-
nies like Blackboard to raise capital, or fig-
ure out another business strategy because it
becomes increasingly difficult to compete
with a company that is giving their product
away for free. I think that these startups
not only hurt themselves, but are also con-
tinuing to hurt the industries that they are
in. For example, there are still a lot of
dot.com companies competing for the
same customers as Blackboard. These
startups give away products that are similar
to ours, essentially giving institutions a free
alternative to purchasing our product.
But, the long-term benefit still
belongs to Blackboard because we have
implemented a business model based on
the fundamentals of sound economics and
with the goal of making money. This
means that in the future, we will still be
here and will be able to service our clients,
while our competitors mostly likely will be
out of business.
Theres been a lot in the news lately
about graduates who have been scared or
intimidated by the dot.bomb scenario, and
want to work for larger, safer companies
rather than take advantage of the
entrepreneurial route. But I dont think that
dot.coms are dead. It is the companies that
dont have sound business models that are
dead. Whether someone is creating an
Internet-based company, a bricks-and-mor-
tar company, or a technology company, s/he
has to remember the business basics. I
learned these in Georgetowns MBA pro-
grama sustainable business model creates
revenue. Realize that, and youll find that
the entrepreneurial opportunity is still there.
Dot.com Dive
Underscores the
Potential of
Technology Sector
Andrew Sachs
Andrew Sachs (F96, MBA96) runs
Capital Investors, a venture capital firm
that provides seed capital to technology-
related businesses in the Greater Washington
D.C. area. Mr. Sachs sits on the
McDonough School Board of Advisors.
T
here was a huge bubble in the tech
market, and what were seeing
now is a fundamental shift occur-
ring to correct that. The money
deployed in the tech market was extrava-
gant. I would say dot.coms are gone. Tech-
nology is a toolyou dont build a busi-
ness just on the Internet, which has
become abundantly clear.
But opportunities in the technology
sector (broadband, telecom) are still there.
Over time, as we become more and more
networked, information flows will be faster
and greater, and inherent in that should be
greater productivity. Were just at the very
beginning of seeing those effects.
But I think it will take a long time,
because youre talking about not only build-
ing an infrastructure, where significant
investment opportunities exist, but also
about fundamentally changing the way
companies conduct business. Financial mar-
kets thought that changes wrought in busi-
ness by technology would happen in two to
three years, but it will take 20 to 30 years.
The financial side of the technology
sector is brutal at the moment. Weve seen
a period when the markets, especially in
the dot.com sector, were overvalued; a
shakeout was natural. For example, when
the car was invented, there were 200 to
300 car companies. Today there are three.
The technology revolution is in its
infancyNetscape only went public in
1996. Since then, there has been a depar-
ture of reality in the tech sector, with start-
ups mushrooming. Venture capitalists
were putting out tremendous amounts of
cash. Last year, New Enterprise Associ-
ates, a venture capital firm here in North-
ern Virginia, did 60 deals. Every venture
capital firm did many more deals than they
ever would have in the last couple of years.
Traditional private equity funds, depend-
ing on the size of the fund, average six to
10 deals a year at most.
Its also important to remember that
not everyone yet has access to the Internet.
It took cable television 30 years to become
commonplace in homes, and today, only
60 percent of homes have cable. The pace
at which the technology infrastructure has
been built out is fast, but the investment
community was completely unrealistic in
Spring / Summer 2001 9
 thinking it would take a couple of years to
build out a technology infrastructure in
homes in such a brief period. And its not
only homes. Look at most small businesses
The Myth of
todaytheyre not even online, and cant
take advantage of these new B2B opportu-
nities in e-commerce. The spending was
too far ahead of the infrastructure, but
Peter Mellen
thats only one part of it. Even if you add
the infrastructure, too much money was Peter Mellen (MBA98) and Scott Mitic (MBA98)
thrown at dot.coms. A number of compa-
nies even in an ideal world wouldnt be created Headlight, a company that provided
successful simply because theyre bad ideas online training solutions for corporations.
and didnt have realistic business models.
Dot.coms are dead, but technology is Headlight closed on March 15, 2001.
making the long-term outlook extremely
bright. In the past, a 20 to 30 percent
return over five years was considered good.
The problem during the dot.com boom
was that investors were seeing 50 to 100
times return on their investment in a year.
Can the 20 to 30 percent returns still hap-
pen? Yes, because technology is improving
the efficiency of business.
Venture capital firms gorged during
the tech boom, and now theyre suffering
indigestion. They are being very careful
about putting out capital. Theyre looking
to invest in quality companies with busi-
ness plans and cash flow management that
are using technology to make traditional
businesses better. You still need a credible
business plan and time is keyits going
to take 10 times longer than was originally
anticipated. If I were recommending com-
panies to invest in, I would say that tech-
nology companies with a credible business
model still make the most sense. Software
companies are a good example, because
they are not capital intensive. Wireless,
broadband, supply chain technology, net-
workingthese could all be good invest-
ments.
Dot.coms in terms of selling widgets
on the Web or content on the Web are
dead. Rightly, retailers understand its just
another sales channel. Its a wonderful sales Scott Mitic (MBA98) and Peter Mellen (MBA98), co-founders of headlight.com
channel, but its no different from cata-
logue or telephone sales.

10 The McDonough School of Business

the Dot.Com Whiz Kids
T
he Internet has allowed great
innovation in business, but I would
say that dot.coms, as we knew
them in the late 1990s, are dead.
Our company was doing extraordinar-
ily well. When we spoke with venture cap-
italists in March 2000, they asked with a
straight face, Are you expecting a valua-
tion north or south of a $100 million in
terms of what you think the company is
worth? Within a couple of weeks of the
crash, the focus shifted exclusively to rev-
enues and profitability.
So why did all these dot.coms, includ-
ing ours, fail?
First, the dot.com business model had
problems. The business model is crucial,
because its the blueprint for the replicable
things that a business can do really well,
profitably and consistently. The right way
to achieve this in business is to start at a
micro level, prove that people are willing to
pay for your service if you can sell it to
them in a cost-efficient way, and then scale
it to a large operation. At Headlight, we
started by selling training to small- and
medium-sized businesses via the Internet.
While revenues were slow to ramp, we
assumed that sales would follow the tradi-
tional hockey stick curve as awareness of
our product grew.
We continued to invest heavily in the
business and run substantial losses under
the assumption that we would be able to
capitalize on the seemingly unlimited
opportunity of the Internet. Although we
saw signs from the beginning of limited
demand, we believed the reach and power
of the Internet would enable us to reach
new, larger markets. We invested substan-
tially in marketing before simply running
out of time as the market contracted and
access to capital became substantially
more difficult.
In trying to capture markets quickly, a
lot of dot.coms fell prey to the fallacy of
first mover advantage (FMA). It was
believed that if you were first to market
and established a brand name, you could
sew up your market. Headlight achieved
great recognition for its FMA. We were
featured in The Wall Street Journal,
Newsweek and The San Francisco Chronicle.
I was invited to speak at conferences
hosted by Harvard, Stanford, and Merrill
Lynch. We assumed that profits would fol-
low FMA. But sales failed to grow as
rapidly as expected, and did not keep track
with the companys growing expenses.
Ultimately, the company ran out of money.
Critical mass was another fallacy.
Dot.coms followed Internet business mod-
els that were focused on web advertising
and co-branding. The volume of sales from
the Internet model was low, because it
focused on selling to individuals, which
doesnt generate as much revenue as the
traditional corporate sales model. With
corporate sales, one employee is in charge
of buying in large volume for the company.
At Headlight, we took a risk by betting on
reaching a new market with a new tech-
nology. Had we switched to the corporate
model early on, Headlight might still be in
business today.
Another myth I hope is laid to rest
with the dot.com crash is that of the whiz-
kid entrepreneur. The Marc Andreessens
were the exception, not the rule. During
the dot.com era, it seemed that a good idea
and smart people were all you needed to
get a business off the ground. But a strong
venture opportunity needs many ingredi-
ents to be successfulintellectual property
(patents, etc.), a proven strategy, and good
management skills. Investors were so
caught up in the enthusiasm of the market
that they were willing to bet on less proven
ventures that would have had a lower
probability of success in a tougher market.
At Headlight.com, we took too long
to make the shift from a dot.com to a more
B2B focus. We could see the writing on
the wall, but we created the company, and
its like killing your own child to close it.
But I have no regrets. Its very easy for me
to look back now and recognize just how
little experience we had beginning this. Its
been incredibly educational, but not defeat-
ing. I remain an entrepreneur to the bone.
Spring / Summer 2001 11
 Business School Launches New Graphic Identity
by Tom Price
aking another step to secure its
T
position among the nations elite
business schools, the McDonough
School of Business has developed a new
graphic identity that is designed to pro-
mote the schools young name while con-
tinuing to embrace Georgetown Univer-
sitys centuries-old tradition.
The keystone of the project is a new
logo that emphasizes McDonough as a
distinct institution within the larger uni-
versity.
The logo incorporates the universitys
colors of blue and gray adopted after the
Civil War to symbolize the reunification of
North and Southalong with the grid
design that is part of the universitys
graphic identity. The typeface used is
Caslon, the standard Georgetown Univer-
sity typeface, which was used to print
Georgetown founder John Carrolls Pro-
posals for Establishing an Academy at
George-Town, Patowmack-River, Mary-
land, in 1787. The name McDonough
School of Business is set off in a grid
between the words Georgetown and
University.
Georgetown University is a 210-
year-old legendary academic name that is
world renowned. So the business school
gains leverage by being associated with
Georgetown, McDonough Dean
12 The McDonough School of Business
Christopher P. Puto said, explaining the
dual message communicated by the new
identity. At the same time, Puto added,
We have to establish ourselves within
Georgetown, establish that we are a special
part of Georgetown. And thats where I
think the McDonough name has the
potential to be the differential.
The challenge is to tie the two
together, so that we create the
McDonough name as a strong connection
with Georgetown.
To develop the graphic identity sys-
tem, the school retained artist Rob Szabo,
who had created the universitys graphic
identity in the early 1980s. The task was to
develop a system that distinguished
McDonough within the universitys overall
identity. That posed a more complicated
challenge than the typical corporate iden-
tity project, Szabo said, because you have
branding within branding.
Interviews and focus groups were con-
ducted with business school undergradu-
ates, MBAs, faculty, administrators, alumni
and senior University officials to determine
their conceptions of the image the school
should project. Common sentiments were
desires to emphasize the connection with
Georgetown and to promote the
McDonough name.
When you do any sort of branding,
you have to know where youre coming
fromthe history of the institution, the
feelings about the institutionbefore you
just go out there and draw up something,
said McDonough Communications
Director Elizabeth Shine, who coordi-
nated the project. We felt it was impor-
tant that everyone feel they had a role in
this. What we wanted to find out (in the
interviews) was what does Georgetown
mean to you and what does the business
school mean to you.
The value of the Georgetown brand is
obvious, Shine said. For McDonough,
being a named school seems to convey
prestige, because the vast majority of the
top-rated business schoolsKellogg,

Wharton, Sloan, Haas, Fuqua, Tuck,
Stern, for instanceare named, she noted.
The graphic identity enables
McDonough to project a unified, identifi-
able image in multiple media. For instance,
the logo is displayed prominently through-
out McDonoughs recently upgraded
Internet site. It is used in McDonough
publications, letterheads, envelopes and
business cards. A special MBA ligature can
be used with the logo by the masters pro-
gram. The logo also has been printed on
sweatshirts and paperweights and soon
will be added to other memorabilia.
I like the logo a lot, said Bindu
Vaswani (B00), who was a focus group
participant while she was on campus and
now works as an associate account man-
ager at DArcy Advertising in New York.
I think it does a great job of integrating
the traditional blue and gray colors that
everyone associates with Georgetown, and
its modern. I can envision it on a banner
when I go to reunions.
Its nice to have something other
than the Georgetown seal that is just for
the business school.
New Website Reflects Business Schools Advances in Technology,
and Innovative Programs
by Tom Price
T
he McDonough School presented a new face to the world when the upgraded msb.edu
Internet site went on-line March 16.
The site, developed by the McDonough Technology Center and ExecCard Inc., incorporates the
schools new graphic identity, adds new functions for users, is simpler to navigate and can be
updated easily.
The basic design of the (old) site had been in place for a few years, McDonough Chief Technol-
ogy Officer John Carpenter noted, and thats two or three lifetimes when it comes to the Web.
The old site lacked cohesion, according to Jerry Haley (MBA 00), an ExecCard consultant who
worked on the Web redesign and earlier on the MBA programs electronic business card.
The goal was to create a clean, good-looking Web page, Haley said.
Prospective students can gather extensive information
about the business school on-line, request a catalog,
and file and track an application to the MBA program.
Employing software from a company co-founded by
Michael L. Chasen (MBA 95), the site enables students
to file class assignments, take tests, enter online discus-
sions, and complete such administrative functions as
changing class schedules. MBA students can submit on-line resumes to prospective employers.
The goal is to create an on-line class environment and to take most of the things you had to
go to the deans office for and put them on line, Carpenter said. If you can think of it, we want
to put it on the Web page.
In the works are Web pages for alumni clubs and e-mail lists that will allow alums to communi-
cate in online affinity groupslike MBA grads who are working in England, Carpenter
explained.
The site is graphically attractive and dynamic. Changing campus photos are featured on the
home page, along with the new McDonough logo and links to news about the school. Univer-
sity publications, including Georgetown Business magazine, can be downloaded at the site.
The old site didnt reflect the progressive nature of the school, Carpenter said. We wanted an
advanced site because the Internet is the hallmark of progressive organizations, and the future
utility of these Internet tools is enormous.
Spring / Summer 2001 13
 Foolish MBAs
Compound Entrepreneurial Skills
by Writing a Book
By Elizabeth Shine (G99) issues, the greatest of which was time. Im assume that [the $24 was invested] for the
extremely pleased with the way the class last 375 years at a very conservative eight
responded. percent, the MBAs write. Had they done
BAs arent often noted for Gardner chose the subject of com- this, the proceeds from the purchase would

M their literary prowess, but with

the help of Motley Fool co-
founder and author Tom Gardner,
pound interest with the objective of mak-
ing a subject thats dull, boring but critical
to long-term financial health accessible
and enjoyable to the novice investor
be worth $82 trillion today!
Before beginning the book, Gardner
asked the class to define core values for the
project. Students voted for four values: fun,
Georgetown MBAs wrote a book in six
weeks, and plan to publish it this winter. through the use of amusing, factual anec- fair, fast and familial. My belief is that
Titled Einsteins Miracle, the book dotes. Topics such as total market index, none of us should work for or be associated
deals with the subject of compound inter- inflation, cost of borrowing, social security with organizations if we dont understand
est, and was the sole assignment for the and illustrations of compound interest are the organizations aims and values, says
oversubscribed integrative course Gardner covered. Gardner.
taught this spring, Entrepreneurial One example the MBAs use to illus- To complete a draft of the book in six
Growth Strategies. trate compound interest is the purchase of weeks, the 48 MBAs were organized into
Unique among the standard MBA Manhattan by the Dutch from the Man- teams to work on each chapter. Students
projects usually assigned by professors, hattan Indians in 1625 for $24. Lets volunteered to be writers, researchers or
Gardner feels that writing a book is the
perfect case study for budding
entrepreneurs.
Writing a book illustrates
entrepreneurship in a few different ways,
says Gardner, who is co-author of several
books, including bestsellers The Motley
Fool Investment Guide and The Motley
Fools Rule Breakers, Rule Makers. The
MBAs worked in teams on a product, a
book, to make it as relevant and as useful
as possible. And like most entrepreneurs,
they were ultimately dealing with scarcity

14 The McDonough School of Business


editors on each chapter team. Another
team of MBAs worked on a marketing
plan for the book, which was critiqued by
Motley Fool executives Pat Garner,
Jonathan Mudd, and Scott Shedler.
The process was very entrepreneurial,
says Brewster Crosby (MBA02), who coor-
dinated all the chapter teams. We had to
produce high-quality, accurate, but creative
writing in six weeks, and I think the final
product is quite good.
Professor Elaine Romanelli, who runs
the Global Entrepreneurship Program and
sponsored Gardner to teach the course,
believes writing a book is a smart way to
develop students entrepreneurial skills.
Toms been incredibly creative in the way
hes taught the MBAs to rise to the chal-
lenges and opportunities that
entrepreneurship entails, she notes.
Gardner feels he learned as much as
the MBAs. In every way imaginable, I
was dealing with expert students who were
dealing with an amateur professor, he
notes. I can confidently say I learned as
much as the MBAs did from the whole
experience. As for the book, were unani-
mously enthusiastic about the prospect of
helping people and generating a lot of
excitement.
The eleven-chapter book is approxi-
mately 150 pages, and will be published by
The Motley Fool in conjunction with the
McDonough School. Editing will continue
over the summer, with several MBAs volun-
teering to assist with final production of the
book. Gardner anticipates it will hit book-
stores during the winter. Proceeds from the
book will benefit MBA scholarships.
The six-week integrative is Gardners
introduction to classroom teaching at
Georgetown, but hes not the first member
of the family to be connected with the uni-
versity. His grandfather, H. Gabriel Mur-
phy (C30, L36), was graduate manager of
athletics at Georgetown from 1930 to
1941. Gardner himself coached basketball
camp at Georgetown for three summers.
In every way
imaginable,
I was dealing
with expert students
who were dealing
with an amateur
professor
Gardner plans to teach the course
again next year, but students wont be fac-
ing another book assignment. Instead,
Gardner wants to draw on MBA
entrepreneurial skills to create a non-profit
foundation.
As a teacher, I believe one of the
wasted opportunities in class is not letting
students direct more of their own learning
and providing ways for them to learn col-
laboratively, says Gardner.
But the man who has made finance
fun for millions of Americans isnt resting
on his teaching laurels. I had a lot of fun
teaching this course, and I hope I did a
good job, says Gardner. Lets see if any-
one signs up in the fall!
Spring / Summer 2001 15
 FACULTY FORUM
California Dreamin? The Perils and Promise
of Deregulation
or months now, the airwaves have
F raged with news of the California
power crisis, including on-going
reports of power blackouts, utility
bankruptcies, government bailouts, and
electricity price hikes. All players involved
seem intent on assigning blame for the cri-
sis, proposing a wide assortment of villains,
including incompetent politicians and reg-
ulators, profiteering power generators,
overzealous environmentalists, and power-
hogging consumers.
While some claim that Californias
electricity deregulation plan went too far,
others assert that it did not go far enough.
Meanwhile, some observers emphasize the
role played by bad luck, such as droughts
affecting hydroelectric facilities, sharp
increases in natural gas prices, and unex-
pected power plant outages.
How did the California crisis come
about? Why did it become so severe?
What lessons does Californias experience
provide for electricity reforms in other
states, and the perils and promise of dereg-
ulation in general?
In the early 1990s, California
struggled with the effects of a deep
recession. Californias electricity
rates were then among the highest
in the nation, despite a significant
surplus of power generating capacity
and the availability of low cost, out-
of-state power supplies. The high
prices could be explained by a tradi-
tional utility regulatory system
designed to pass along the utilities
costs to customers.
(c)2001 The New Yorker Collection from cartoonbank.com. All rights reserved.
16 The McDonough School of Business
Paradoxically, excess capacity led to
higher prices, since rates incorporated the
utilities capital costs. Most of the states
electricity was provided by three privately
owned utility companies, Pacific Gas &
Electric (PG&E), Southern California
Edison (SCE), and San Diego Gas &
Electric (SDG&E)the Big Three
each with a monopoly service territory.
These companies generated power, trans-
mitted it over high voltage power lines,
and distributed electricity to customers.
Many in the private sector and state
government believed that power prices in
California could be reduced significantly
through changes in the structure and regu-
lation of the states electric utility industry.
In 1996, the California legislature unani-
mously adopted reform legislation that
contained three main elements. First, the
Big Three were required to divest their
power-generating facilities to third parties.
Second, all sales and purchases of power
were to be made through a newly-estab-
lished wholesale power pool, the California
Power Exchange, which would buy and
sell electricity at prices set at half-hour
intervals based on the lowest (marginal)
bid offered by power generators. Third,
retail (customer) electricity rates would be
cut by 10 percent, then frozen for up to
five years to allow the Big Three to recover
the so-called stranded costs utilities were
expected to incur by divesting their gener-
ating facilities at a loss in the midst of
industry overcapacity.
In theory, Californias power sector
reforms would provide benefits all around.
Business and residential consumers would
enjoy stable electricity prices during a tran-
sition period and, then, presumably pay
lower rates as competition among power
generators drove down wholesale electric-
ity prices. The Big Three would be able to
offset any losses associated with capacity
divestments with the additional profits
expected to result from fixed retail prices
coupled with declining wholesale prices.
Thereafter, these firms would con-
tinue to provide regulated transmis-
sion and distribution services. New
power generators, acquirers of capac-
ity divested by the Big Three, and
out-of-state generators would enjoy
access to the California Power
Exchange and, if efficient, profit
from selling electricity into the
wholesale power pool. Finally,
incumbent politicians could expect to
be rewarded by satisfied electricity
consumers and service providers.
What went wrong? Perhaps the most
critical assumption in the reform
plan was that wholesale power prices
would decline over time. Unfortu-
nately, wholesale prices actually increased.
Price increases at peak demand times were
particularly severe as rates rose from tens
of dollars per megawatt (MW) to hun-
dreds of dollars per MW in some
instances.
By 2000, these cost increases threat-
ened the financial health of PG&E and
SCE, which still were obligated to sell
electricity at fixed retail prices. SDG&E
fared somewhat better: having recovered
all of its stranded costs by 1999, it was free
to increase retail rates to reflect higher
wholesale power costs. Yet this utility faced
its own financial problems when the Cali-
fornia legislature voted in September 2000
to cap its residential rates temporarily, in
effect allowing its customers to accumulate
IOUs to be paid back over time.
Why did wholesale power prices
increase so sharply? Essentially, weak
demand and overcapacity at the time of
the reforms evolved into surging demand
and increasingly constrained supply. Cali-
fornias economy boomed in the late
1990s, and demand for electricity rose over
6% per year.
At the same time, oil and natural gas
prices, which had declined for much of the
decade, rose sharply in the late 1990s,
increasing the costs of power plants that
relied on these fuels. To make matters
worse, severe droughts reduced the supply
of power available from hydroelectric gen-
erating plants within and outside Califor-
nia. Excess supply from neighboring states
was reduced as well by rising electricity
demand in those markets.
What about new power plants in Cal-
ifornia? Unfortunately, several factors dis-
couraged investment in new generating
capacity at the time of reform, including
overcapacity in the mid-1990s, the expec-
tation of falling wholesale power prices,
uncertainty regarding the changing regula-
tory environment, and concerns relating to
Californias strict plant approval process.
Even after it became apparent that addi-
tional capacity was needed, the lead time
required to obtain approvals and construct
power plants limited the speed at which
additional power supplies could be brought
into the market.
Additional factors exacerbated the
imbalance between supply and demand in
the wholesale power market. Because end-
users typically enjoyed fixed electricity
prices, demand continued to rise even after
the costs of providing service increased
substantially. Moreover, in some instances,
power generators idled their capacity when
major utility buyers, faced with severe
financial difficulties, stopped paying bills
for power purchases. It also appears that
some power generators engaged in strate-
gic behavior, using their control of key
sources of supply to drive up prices artifi-
cially in the wholesale power pool, espe-
cially at times of peak demand.
The California governments response
to the crisis has been piecemeal. Initially, it
focused on supply, intervening as a buyer
in the wholesale market to enhance avail-
ability of power supplies to the Big Three.
The state also offered to purchase the
transmission networks of the Big Three to
help improve the utilities financial condi-
tion and urged the U.S. Federal Energy
Regulatory Commission to impose price
caps on wholesale power prices (an area of
federal jurisdiction) in order to reduce
alleged price manipulation by generators
and, reluctantly, permitted significant
increases in retail electricity prices.
Currently, California is working to
accelerate the approval of new power
plants and encourage electricity conserva-
tion. Even with these steps, however, the
Golden State faces the short-term
prospect of additional power blackouts and
utility bankruptcies.
What can we learn from Californias
experience? It is important to recognize
that, despite the determination of
observers on the right and left to pinpoint
ideologically acceptable scapegoats, the
crisis really has no single cause. Perhaps
the most general lesson is that highly regu-
lated markets, while often inefficient, are
also highly predictable.
Deregulation, in contrast, offers the
promise of greater efficiency and innova-
tion, but also the perils of greater instabil-
ity and variation in prices and product
qualitywhich carry especially significant
economic and political risks in the case of
basic goods and services such as electricity.
Furthermore, the exact path of industry
dynamics following deregulation is devil-
ishly hard to predict, evidenced not only by
the power sector, but also by other industries
such as airlines and telecommunications.
Ultimately, California designed a
reform program that attempted simultane-
ously to open the power market to compe-
tition and protect the interests of con-
sumers and established utilities in a period
of transition. Yet the program was inher-
ently risky because it was built on rosy
assumptions about future trends in supply
and demand, with few contingency mech-
anisms in place to cope with less favorable
industry dynamics.
As other states look to deregulate elec-
tricity markets, and as governments in the
United States and abroad seek to introduce
market-based reforms, the California power
crisis should serve as a warning that failure
to manage the inherent risks may lead to
market chaos and popular backlash, which
may undermine the sustainability of reforms
and the benefits they potentially offer to
consumers and producers alike.
Associate Professor
Willis Emmons is author
of The Evolving Bargain:
Strategic Implications of
Deregulation and Priva-
tization, which examines
the impact of deregulation
on managers strategic agendas in industries
around the world, including the utility indus-
try in the U.S. and abroad. A member of the
Harvard Business School faculty for over a
decade, Emmons also consults to a wide range
of private and public sector organizations.
Spring / Summer 2001 17
 RESEARCH AND ACTIVITIES
Faculty
Associate Professor Reena Aggarwal pre-
sented Regulatory Infrastructure Cover-
ing Financial Markets, at the Brookings-
Wharton Papers on Financial Services
Conference in January 2001. She chaired a
panel on market infrastructure issues in
developing economies for the U.S. Securi-
ties and Exchange Commission Interna-
tional Institute in May 2001. In June, she
presented Allocation and Price Support in
IPOs: Who Benefits? for the Western
Finance Association Annual Meeting.
Professor Alan Andreasen organized the
third annual Nonprofit Marketing Man-
agers Summit in April 2001. He edited
and contributed two chapters to Ethics in
Social Marketing. He and Philip Kotler
(Northwestern University) co-authored
Strategic Marketing for Nonprofit Orga-
nization, forthcoming in the 2001 Inter-
national Encyclopedia of Business and Man-
agement (2nd ed.). Andreasens Intersector
Transfer of Marketing Knowledge will be
published in the forthcoming Handbook
of Marketing and Society. He presented
Social Marketing for Environmental
Action at the Conference on Nonpoint
Source Pollution Information and Educa-
tion Programs in May. In June, Andreasen
will present Social Marketing Ethics at
the Conference on Social Marketing in
Public Health, and give a presentation on
branding at the 2001 National Conference
of Volunteers of America.
18 The McDonough School of Business
Associate Professor Thomas Brewer co-
authored The Multilateral Investment Sys-
tem and Multinational Enterprises with
Stephen Young (University of Strath-
Whisenants paper, Accrued Earnings and
Growth: Implications for Earnings Persis-
tence and Market Mispricing was
accepted at the 2001 Summer Symposium
clyde). He also co-authored a number of at Hong Kong University of Science and
papers, including The U.S. in the WTO: Technology.
Industry Structure, Firm Strategy and
Associate Professor Ronald Goodsteins
Government Policy, with Alan Rugman
paper The Moderating Effect of Per-
(Indiana University) forthcoming in the
ceived Risk on Consumers Evaluations of
Oxford Handbook of International Business.
Product Incongruity: Preference for the
Assistant Professor Ken Cavalluzzos arti- Norm, co-authored with Margaret
cle, Competition, Small Business Financ- Campbell (University of Colorado) will
ing and Discrimination: Evidence From a appear in the December 2001 issue of
New Survey, co-authored with Linda Journal of Consumer Research. In February
Cavalluzzo (CNA Corporation) and John 2001 he gave two presentations to the
Wolken (Federal Reserve) is forthcoming Society for Consumer Psychology: Affec-
in Journal of Business. tive Responses to Music in TV Advertise-
ments, with Julie Edell, Marian Moore,
Associate Professor Michael Czinkotas
and Wanda Wallace (Duke University);
paper, International Information Cross-
and The Effects of Consumer Control
Fertilization in Marketing: An Empirical
and Motivation on Information Processing
Assessment, was selected as the European
and Communication Effectiveness on the
Journal of Marketings most outstanding
Web, with Andrew Aylesworth (Bentley
paper for 2000, and received the MCB
College) and Ramaprasad Unni (Portland
2001 University Press Award for Excel-
State University).
lence.
Visiting Professor Prem Jain published
Professor William Droms Finance and
Financial Leverage Changes Associated
Accounting for Nonfinancial Managers (4th
with Corporate Mergers, in the Journal of
ed.) has been translated into Portuguese.
Corporate Finance, Vol. 6, December 2000.
He and Professor David Walkers article
Performance Persistence of International Associate Professor Catherine Langlois
Mutual Funds, will be published in the and Jean-Pierre Langlois article, Engi-
Global Financial Journal, Vol.12, No. 2. neering Cooperation: A Game Theoretic
Analysis of Phased Treaties and Agree-
Associate Professors Patricia Fairfields
ments appears in the July 2001 volume of
and Teri Yohns paper, Using Asset
American Journal of Political Science.
Turnover and Profit Margin to Forecast
Changes in Profitability is forthcoming in
the Review of Accounting Studies. Fairfield,
Yohn and Assistant Professor Scott
Professor Joseph Mazzolas paper
Heuristics for the Multi-Resource Gener-
alized Assignment Problem, co-authored
with Steven P. Wilcox (Logicon, Inc.) is
forthcoming in Naval Research and Logis-
tics. Mazzola will organize invited paper
sessions at the INFORMS National
Meeting in November.
Professor Douglas McCabe served as the
associate editor of an international man-
agement issue of the Journal of Business
Ethics.
Professor Marcia Micelis paper Individual
Differences and Whistle Blowing has
been accepted for presentation and publi-
cation at the Proceedings of the Academy
of Management meeting in August 2001.
She will also present on her research on
whistle blowing at Toulouse University
(France) in May.
Professor J. Keith Ord recently co-
authored several articles, including: Pre-
diction Intervals for ARIMA Models,
Journal of Business and Economic Statistics,
Vol. 19, 2001 with R.D. Snyder (Monash
University, Australia) and A.B. Koehler
(Miami University of Ohio); The Impact
of Imperfect Processes on Production Run
Times, with T. Boone and R. Ganeshan
(both College of William and Mary) and
Y. Guo (Advanta Corporation) in Deci-
sion Sciences, Vol. 31, 2000. His forth-
coming publications include: Testing for
Local Spatial Autocorrelation in the Pres-
ence of Global Spatial Autocorrelation,
co-authored with A. Getis (San Diego
State University), Journal of Regional Sci-
ence; A New Look At Exponential
Smoothing, with C. Chatfield (University
of Bath, UK), R.D. Snyder (Monash Uni-
versity, Australia) and A.B. Koehler
(Miami University of Ohio), Journal of the
Royal Statistical Society; and two articles,
Forecasting Models and Prediction Inter-
vals for the Multiplicative Hold-Winters
Method and Forecasting for Inventory
Control with Exponential Smoothing,
both co-authored with R.D. Snyder and
A.B. Koehler, both in International Journal
of Forecasting. He has also received $43,000
in research funding from the U.S. Depart-
ment of Transportation to develop an on-
line monitoring scheme for the principal
monthly and quarterly indicators.
Associate Professor N. Lamar Reinsch is
president of the International Association
for Business Communication. He published
Business Performance in the January 1,
2001 issue of Vital Speeches of the Day.
Assistant Professor Catherine H. Tinsleys
article, How We Get to Yes: Predicting the
Constellation of Strategies Used Across
Cultures to Negotiate Conflict, is forth-
coming in Journal of Applied Psychology.
Assistant Professor Jeanine Turner pre-
sented the following papers: Understand-
ing the Communicative Context Created
Through Telemedicine Interactions in
March 2001 at the National Library of
Medicines Telemedicine Symposium; and
Becoming Telecompetent: Creating a
Virtual Organization Within a
Telemedicine Network as the keynote
speaker at the University of Daytons
Communication Day in February 2001.
Other recent articles that are in press
include: Consumer Response to Virtual
Service Organization: The Case of
Telemedicine written with Professor Bob
Thomas and Michelle Gailiun (Ohio State
University) in International Journal of Med-
ical Marketing; Media Richness and
Social Information Processing: A Ratio-
nale for Multifocal CME Activities, with
Stuart Gilman (Department of Veterans
Affairs) in the Journal of Continuing Edu-
cation in the Health Professions; and
Telepsychiatry as a Case Study of Pres-
ence: Do You Know What You Are Miss-
ing? in the Journal of Online Computer-
Mediated Communication.
Professor Emeritus Othmar Winkler pre-
sented Data Obsolescence and Forecast-
ing, at the Federal Forecasters Conference
in September 2000. He will present his
paper, A Different Approach to Regres-
sion-Correlation in the Social Sciences,
at the International Statistical Institute
in Korea in August 2001.
Assistant Professor Bennet Zelner will
conduct research in Eastern Europe this
summer as part of an ongoing project with
Witold Henisz (Wharton) examining the
effects of political institutions on electricity
infrastructure.
Spring / Summer 2001 19
 Overseas Integrative Experience

Going Global Broadens MBA Business,

Cultural Skills
By Tom Price

t takes more than a passport to equip With all this technologytelecon- All McDonough MBA candidates are

I MBAs for careers in the global mar-

ketplace.
Since its inception two years ago, the
ferences, e-mail, telephonesyoud think
that business can be done without having
face-to-face meetings, Gonzalez says.
required to participate in the program,
which integrates the functional skills
learned in the classroom into working on
required McDonough international resi- But I dont think you can. Because my an international consulting project during
dency for MBAs has provided second-year perception of the people I talked to over the second semester of their second year.
MBAs with the skills and experience to the phone completely changed when I was The students are grouped in teams of
function effectively in the international in front of them. five or six, with each team working on a
business environment.
According to Professor Stanley D.
Nollen, the goal of the program is to help
all our MBAs become competent and
comfortable conducting business in differ-
ent countries and cultures, and to have an
opportunity to improve their problem-
solving and critical-thinking skills in a
realistic setting.
According to the students, thats
whats happening.
It gave us the opportunity to delve
into the kinds of problems were going to
see as future executives, says Stephen
Tansey (MBA01), who worked with ICI
Argentina, a division of British-headquar-
tered Imperial Chemical Industries. Its
not simply theory, rehashing another case.
Were helping a real organization deal with
real issues they currently are facing.
Andrea Gonzalez (MBA01), who
worked with the National Stock Exchange
of India (NSE), believes the experience
underscored that the trend toward global-
ization is a real thing and that face-to-face
contact remains important despite the
powers of modern telecommunications.

MBAs taking a break on the Argentina integrative.

20 The McDonough School of Business

consulting project for an overseas business.
The students this year worked on 47 pro-
jects in five countriesBrazil, England and
the Czech Republic, as well as India and
Argentina. A sixth country will be added
next year, Lawrence W. Abeln, associate
dean for graduate business programs, says.
Six weeks prior to the residency, the
teams are assigned their corporate projects,
and study the business practices, economic
system and culture of the country. The
overseas residency allows them to conduct
further research before presenting their
recommendations to top company execu-
tives on site.
During the residency, they visit a sec-
ond company for an on-site case study led
by company executives, attend a joint ses-
sion with local business school students,
and are exposed to local culture through
lectures and tours.
The faculty involved with the projects
and the residency have taught, researched,
worked or lived in the country previously.
Calling the program, which he directs,
an exercise in depth, not in breadth,
Nollen says that we dont want to act like
superficial American business people skat-
ing across the surface and hardly noticing
where they are. We want our students to
relate to the local life and times. So we
need to educate them about differences in
the national culture, in the business sys-
tem, in the problems and issues that are
occupying the locals attention.
The residency in Prague had speak-
ers who talked about the problems of tran-
sition from central planning to a market
economy. The speakers in India talked
about the liberalization of trade and
investment.
The key point is that this kind of
learning can only occur through practical
experiences outside the classroom-we have
to go abroad, we need to do the consulting
projects, which is a centerpiece of the
course. These are genuine, real-life busi-
ness problems that companies face, that
they need solved.
Tanseys team developed a marketing
and distribution plan for ICI Argentina to
begin selling its grape seed oil in the
United States. The company has to burn
the heck out of the oil to turn it the yel-
lowish color of common cooking oils, a
process that destroys many of the oils
health benefits, Tansey said. ICI planned
to sell the product in the United States
under the brand Vin Oil.
The MBAs advised leaving the prod-
uct its natural green color, emphasizing its
health benefits, and promoting it as extra
virgin grape seed oil or oil in the raw.
They also recommended branding it
Mendoza Valley, a name that evokes
Argentinas Mendoza wine region and
resembles the Napa and Sonoma valleys
that Americans associate with good wine.
One remarkable moment in their resi-
dency occurred when the five students met
with nine executives from several ICI depart-
ments. At that meeting, for the first time, the
marketing executives learned from the pro-
duction executives that green oil could claim
more health benefits and be cheaper to pro-
duce than yellow oil,Tansey says.
Gonzalezs team advised the Indian
stock exchange on developing a globaliza-
tion strategy. NSE is a powerful competi-
tor in the fragmented Indian stock market,
doing about 40 percent of the business,
and it wanted to expand internationally.
We recommended that they pursue a
strategic alliance first with some regional
stock exchanges and in the long term with
a global stock exchange like NASDAQ,
she says.
They would need to get their first
experience within Asia. After that, they
could move to a more international scenario.
Gonzalez, a Mexican citizen, said she
was struck by the contrasts in Indiahigh-
tech industries and sophisticated business
executives along with extreme poverty.
I had heard comparisons between
Mexico and India, she says, and I was
shocked that it wasnt similar at all. India is
much more poor than I expected it to be.
She found informal time spent with
Indian business school students to be espe-
cially interesting. We got to talk to people
who are in a similar situation to us, and to
compare points of view, she says.
The companies clearly benefit as
well, says William Rocca (MBA92), vice-
president at Citigroup Prague. Citigroup
Prague asked MBAs to examine the
feasibility of e-exchanges in the Czech
Republic, where various industries group
together to buy items, such as office equip-
ment, in bulk to avail themselves of the
lowest possible prices.
With just a nugget of guidance, the
students produced a good, comprehensive
study, says Rocca. The development of e-
exchanges is very leading edge, and its a
good opportunity for us to learn what will
work here in the Czech Republic while
giving MBAs the experience of working in
a global environment.
Nollen believes that the feedback
MBAs have received from companies
speaks volumes about the practicality of
the international integratives.
During the team presentation for one
project, he says, the managing director
was there, and he gave instructions to his
colleagues at that moment to take up this
recommendation.
We had a company in India tell us
this project was worth a six-figure consul-
tants price.
Spring / Summer 2001 21
 Brazilian Orphanage
Offers MBAs Lessons
in Management
By Professor Michael Ryan
Second-year MBA students who selected
Sao Paulo, Brazil, for their Global Experience
took time out from projects with Bank Boston,
Bechtel, Edelman Public Relations, Enron,
Gartner Group, General Motors, Interfarma,
and Merck to visit a local orphanage,
Lar do Menino Jesus, and learned a lesson
in management along the way.
The founder and director of the orphanage,
Ms. Guiomar Morselli, explained that her
orphanage filled a vital need in Sao Paulo
because of the citys extreme poverty and the
fact the government provides neither care for
orphaned children nor funding for charitable
organizations. Through private donations,
Ms. Morselli has been able to create a home
for several hundred children. The orphanage
provides food, housing, health and dental
care, and education.
22 The McDonough School of Business
While the orphanage receives donations stocked with food, medicine, etc. The MBAs
from charitable organizations, including the concluded the visit by meeting the children
Canadian Womens Society of Sao Paulo, who and presenting them with gifts of coloring
hosted the MBA student visit to the orphan- books, crayons, and construction paper.
age, fundraising in a systematic fashion in
Georgetown MBAs have a special leadership
a developing country is challenging. Maintain-
mission because of the Jesuit tradition of the
ing a steady, reliable income flow to pay for
university, which emphasizes the obligation
staffing and equipment needs is difficult.
we have to create a just society. Our orphan-
For example, cash shortages have sometimes
age visit allowed MBAs to experience the
resulted in a lack of paychecks. But the staff,
shadow side of a dynamic, growing Brazilian
which consists mostly of locals, is so loyal
economy that has not yet raised the living
that they have continued to work despite
standards of much of its population.
not being paid.
Many of our graduates are now working
The students met with Ms. Morselli to discuss
in developing countries such as Brazil. Their
running the orphanage in the face of such
business expertise is just as valuable to
challenges, and learned some valuable man-
humanitarian causes, and need not be mutu-
agement lessons. They observed Ms. Morsellis
ally exclusive to their corporate careers.
core values, and her selflessness and genuine
concern for the orphans, and viewed it as a Professor Mike Ryan teaches strategy
powerful motivator in retaining workers and and public policy at the McDonough School
keeping morale high. Her savvy financial man- and led the Sao Paulo residency.
agement enables her to keep the orphanage
Dividends
Planned Gift Significantly Advances Campaign
Business education and social justice both will be advanced
through a $3.5-million gift from Joseph E. and Allanah W. Beh
of Atherton, California. The Behs contributed $3 million to the
McDonough School and $500,000 to the Georgetown Univer-
sity Center for Social Justice Research, Teaching and Service.
Mr. Beh (F41) studied business at the Georgetown School
of Foreign Service, which housed business programs prior to the
establishment of the business school in 1957. Mrs. Beh is a for-
mer external affairs director at the business school.
Mr. Beh has served on the Georgetown University Board of
Regents and on the McDonough School Board of Advisors. He
retired as president of the Joseph E. Beh Co., a Silicon Valley
real estate company.
I believe you have to give something back in life, Mr. Beh
said. Georgetown University gave me something to begin with,
so its payback time.
He said he hopes the gift will motivate others to contribute.
The gifta bequest in the Behs estate planrepresents
the kind of planned giving that makes up about 40 percent of
the funds raised in the universitys current Third Century Cam-
paign, Planned Giving Director Jeffrey Comfort said. Informa-
tion about planned giving is available from Comfort at 202-
687-3697.
Chairman and CEO of Rodamco North America NV
Establishes Dutch Scholarship
Top students from the Netherlands will enrich the international
atmosphere at McDonough thanks to a $1 million gift from
Georgetown University parent Gerald E. Egan. The gift estab-
lished the Gerald Egan MBA Dutch Scholarship for Excel-
lence, which will bring several outstanding Dutch students to
McDonough each year.
The scholarships will help the McDonough School com-
pete with other top-ranked institutions for the most competitive
MBA students while enhancing the schools strong international
reputation, Dean Christopher P. Puto said.
Lawrence W. Abeln, associate dean for graduate business
programs, said the program will support our mission to encom-
pass a diverse and international student body and will impor-
tantly enhance our visibility in Europe.
Associate Dean Lawrence Abeln, Dean Christopher Puto and
Mr. and Mrs. Gerald Egan celebrate the establishment of the
Gerald Egan MBA Dutch Scholarship for Excellence.
Egan is chairman and CEO of Rodamco North America
NV, which owns Urban Shopping Centers, of Chicago, the
third-largest regional shopping mall company in the United
States. He said his strong ties to Holland, Georgetown and
Jesuit education in general motivated his gift.
The stockholders of Urban Shopping Centers are largely
Dutch, and I wanted to give something back personally to the
Dutch people, he said. I received a Jesuit education, and I am
impressed by the Jesuit education received at Georgetown by my
three children, two of whom earned undergraduate degrees at
McDonough.
Steers Faculty Research Fellowship to Strengthen
Teaching, Research
Members of the McDonough faculty will become more active
scholars and more challenging and stimulating teachers thanks
to the newly created Steers Faculty Research Fellowship.
Founded with a $100,000 contribution from McDonough
alumnus Robert Bob Steers (B75), the fund will support sum-
mer research projects. Such research strengthens the curriculum
by enabling faculty to generate innovative, continuously updated
courses as they pursue their scholarly interests, according to
Dean Christopher P. Puto.
Steers is co-founder and chairman of Cohen & Steers Cap-
ital Management Inc. of New York, a pioneer in real estate
investment trusts. An active alum, he is a member of the
McDonough Board of Advisors, the MSB Major Gifts Com-
mittee, the Wall Street Alliance Advisory Board and the Blue
and Gray Society.
In 1999, Steers contributed $100,000 to the McDonough
graduate facility.
Spring / Summer 2001 23
 In the Media
The ultimate effect of these develop-
ments, which career advisers say have led
recent and soon-to-be graduates to accept
whatever offers they receive very quickly,
may be a rash of job-hopping a few years
down the road, commented Lawrence
Abeln, associate dean and director of grad-
uate programs, about the rescinding of
many MBA job offers in the New York
Times article Dear New Employee: Wel-
come, and Goodbye ( Jonathan Glater),
May 4.
Despite a record number of recruiters on
campus this fall, the job-placement num-
bers will be lower than last year, said Dar-
nell Hoose, assistant dean and director of
MBA career management, commenting on
the economic downturn and its effect on
MBAs in The Washington Post article For
MBAs, the Reception Has Cooled (Sara
Goo), May 4.
Fortunately at Georgetown, we have not
had any of our full-time job offers
rescinded, said Darnell Hoose, assistant
dean of MBA career management, com-
menting about the recent downsizing of
new hires on CNNfns Tough Call, Fri-
day, May 11.
Professor Robert Grant appeared on CNN
on March 9 to discuss the introduction of
no e-mail Fridays by several European
companies.
24 The McDonough School of Business
With todays activity in Yahoo, it looks
like NASDAQ is moving in the direction
of more rather than fewer trading halts.
Clearly, it is not in the markets best inter-
est to allow trading to occur in a chaotic or
disorderly situation, said Professor James
Angel in the Wall Street Journal article,
Yahoo! Trading Halt Creates Confusion
(Kate Kelly), March 8.
Demand for hot IPOs can run 20 to 30
times greater than supply. And individual
investors usually take a back seat when bro-
kers are doling out the sought-after shares,
commented Professor Reena Aggarwal in
Morgan Stanley Keeps Lead On Agere
IPO, (Emma-Kate Symons) Wall Street
Journal, March 22. Aggarwals research on
IPOs was also mentioned in Unwise Wis-
dom: IPOs Will Make You Rich (Ruth
Simon) Wall Street Journal, January 29.
Monica Gray, associate director of MBA
admissions was quoted in USA Today in a
feature on the recent surge in graduate
school applicants. Some people are mak-
ing a professionally protective move. They
see opportunities are not as accessible...and
frankly, some people are panicking, said
Gray in Slowing Economy Sends Workers
Back to School (Stephanie Armour),
February 27. The article also noted that
applications to the McDonough School of
Business MBA program are up 10% from
last year, a pace expected to set the record.
The productivity gains of recent years
have gone disproportionately to sharehold-
ers rather than to labor in higher wages,
observed Professor William Byron in a Los
Angeles Times article, Bushs Tax Cut:
Implications for You and the Economy
( James Flanigan), February 11.
Professor Ronald Goodstein noted that
smaller independent grocery and specialty
stores will need to count on customer loy-
alty to stay afloat on National Public Radios
Morning Edition, January 22.
Because we are trying out new things,
there are going to be mistakes, there are
going to be things unexpected, said Pro-
fessor Willis Emmons in California Is
Urged to Alter, Not Scrap, Electric Market
Approach (Michael Davis) Houston
Chronicle, January 13.
Alumni In the Media
Doreen Amorosa (B79), vice president of
global recruitment and retention at Merrill
Lynch, commented on the companys new
telecommuting program in the Wall Street
Journal. In these times, retaining your
good employees becomes even more
important, she said, in This Time, Firms
See Work-Life Plans as Aid During
Downturn (Sue Shellenbarger) March 28.
Michael Periu Jr. (B98) was featured
in a front-page Wall Street Journal article,
Young Dot-Commers In Trouble Go
Home To Mom and Dad, February 8.

We encourage all business
school alumniundergraduate,
MBA, and executive MBA,
to send us class notes. Please
contact Elizabeth Shine at
202.687.4080 or e-mail her at
shinee@georgetown.edu.,
if you would like to become
a class agent. We do not accept
engagement or pre-birth
announcements.
Alumni Notes
UNDERGRADUATE
1956
James Chute lives in Mt.
Gretna, Pa.
James Lauerman is chairman,
vice president and secretary of
CRL, Inc., a maker of Marbles
Products for sportsmen, includ-
ing compasses, gunsights, hunt-
ing knives, folding straight
blades and small axes. James is
semi-retired. He is also active
with Marble Arms Rotary and
Rotary Boys club.
1962
George M. Ruppert (L65) lives
in Arlington, Va.
1972
John Woodruff and his wife,
Tina, are living deep in the rain-
forest of Puerto Rico. After leav-
ing Dial Corporation, where he
was area director for Latin
America, John finally realized
his dream of running his own
international company,
CasAmerica, headquartered in
Panama City. John enjoys being
able to work by his pool once in
a while. John and Tina spend
most of their free time on animal
rights, growing orchids, and
island-hopping in the
Caribbean.
1976
Vincent Restituto served in the
United States Army for six-and-
a-half years. Retiring at the rank
of captain, due to multiple scle-
rosis, he earned an MBA from
Adelphi University in Garden
City, N.Y., and manages a small
office specializing in private
investing. Vincent has also
worked for ten years with the
Multiple Sclerosis Society. He
currently holds a seat on the
local chapters Board of Trustees,
as well as serving on various
other committees. Vincent
remains unmarried and lives
on Long Island, N.Y.
William Sullivan lives in
Wilmette, Ill.
1978
John Duffy has been promoted
to senior vice president with the
National Bank of South Carolina.
He resides in Sumter, S.C. with
his wife, Liz Timdale (N79), and
their son, Jack, age 7.
1979
Smiti Kumar has been a senior
promotions manager at Coca-
Cola North America in Atlanta,
Ga., since 1999. Smiti leads a
team of consumer promotion
developers for Sprite and eight
other regional brands in the U.S.
1980
Kathleen Cosgrave has moved
to Milton, Mass.
1981
Gary Sherman is a partner at
sion-based personalization soft-
the New Jersey CPA firm of
Rosenberg, Rich, Balter, Berman
& Co. In September 2000, he
became a member of the
Bernards Township Education
Foundation, which hosts a bene-
fit concert to raise money for
school grants.
1985
Bruce Ackerman is chairman
and CEO of One Touch Corpo-
ration, an interactive media com-
pany with offices in 18 countries.
Bruce lives in the Princeton, N.J.
area with his wife, Diane, and
their four children.
Paula Gifford is married to
Chris Casiraghi and lives in
Wilton, Conn. Together, they
are raising their six-month-old
daughter, Isabel.
1987
Eric Allan Koch is an attorney
with Appelgate, McDonald &
Koch, P.C. and has been
appointed chairman of the board
at Dunn Memorial Hospital in
Bedford, Ind.
Alan Press is a founder of Alan
R. Press, LLC, a full-service law
firm. Alan lives with his wife of
eleven years, Lety Press, in Buf-
falo Grove, Ill. They have a
three-year-old son, Ethan
Joseph, and a one-year-old
daughter, Elizabeth Bennet.
1989
Eric Christ, and his wife Mau-
reen McIvor (CAS91), recently
completed a worldwide tour.
1990
Sam Khichi was named chief
operating officer of youpow-
ered.inc, a provider of permis-
ware for e-business, software
vendors, platform vendors and
consumers, on February 1, 2001.
Edward Ponzi is currently
employed at the real estate bro-
ker Coldwell Banker in Wash-
ington, D.C. He is working in
the commercial real estate group,
handling bankruptcies.
Spring / Summer 2001 25
 Alumni Notes
1991
William R. Casey is a principal
at Morgan Stanley Dean Witter
in London, England.
David Guarriello, a U.S. Army
Current Operations Officer, is
moving from Fort Shafter,
Hawaii to Fort Leavenworth,
Kan., to work in the Battle
Command Training Program.
Sara Giere Rivenburgh gave
birth to a son, Jackson, in
August 2000. Although he
weighed two pounds at birth, he
is doing fine. Sara is currently
staying at home with her son.
Buwon Tran is a market
research manager at BP-Arco,
the result of the merger of the oil
companies BP Amoco and Arco,
in the West Coast business unit.
She received her MBA from the
University of Southern Califor-
nia in May 2000.
1992
Kevin Joseph Ronayne is a
trader/principle at the invest-
ment bank Robertson Stephens
in California.
Troy Thorn is president of 2.82
Inc. and lives in Fort Worth,
Texas.
1996
Sasha Discala was married on
September 9, 2000 to Michael
Zolik. Erin Sheridon (B96),
Jennifer Pace (B96), and
Veronica Smiley (B96)
attended the wedding.
Abigail Farris is a partner at
Benedetti & Farris, LLC. and
lives in Richmond, Va.
26 The McDonough School of Business
1997
Regina (Reyna) Gonzales
recently passed the New York
and New Jersey bar exams. She is
presently clerking for the Hon-
orable Jonathan N. Harris.
1999
Bradford Caldwell lives in Sil-
ver Spring, Md., and is an execu-
tive director for the Campus
Credit Union Council, an orga-
nization that assists credit unions
that serve college students. He
has been appointed to the advi-
sory board of the Georgetown
University Alumni & Student
Federal Credit Union, and to the
Montgomery County, Md.,
Consumer Affairs Advisory
Committee.
Angel Florenzan is working on
the consumer marketing staff at
Entertainment Weekly magazine,
a Time, Inc., publication.
Brett Helgren lives in New York
City and is now working as a
writer at Forbes magazine.
Karis Youngblood lives in
Tampa, Fla., and is volunteering
for several organizations, includ-
ing Habitat for Humanity,
Inroads, Inc., an organization
that places minority youth in
business and industry and pre-
pares them for corporate and
community leadership; and as a
tutor for Crestwood.
2000
Jason Benjamin Lee is a
research analyst for the invest-
ment bank UBS Warburg. He is
now working in the mergers &
acquisitions group. Prior to
working in M&A, he was with
the real estate division. He has
ALUMNI PROFILE
Early Alumna Credits Her Success to Business School
By Tom Price
Ellen M. Morrell (B66) has drawn on her
experiences as a Georgetown Business
School student and teacher to become a pre-
mier Washington-area real estate broker.
I think real estate is just like teaching,
because you are not effective as a real
estate broker if your clients are not making
educated choices, said Morrell, who is vice president and principal bro-
ker of Washington Fine Properties, an affiliate of Sothebys International
Reality. My job is to educate clients on the market, on location and on
the price, so that when they make a decision to buy or sell they have
enough facts to make that decision on their own.
As a teacher, Morrell said, You learn how to deal with people, and how
to get things across that might seem simple to you but might be compli-
cated to the other person. Those skills are useful in serving clients, she
said, as is the marketing knowledge she acquired studying, researching
and teaching the subject.
Morrells remarkable career began when she managed to enroll in the
Georgetown Business School at a time when only a handful of women
were enrolled, and women were discouraged from applying.
I dont know how I got the gumption to keep going, she said. She
made her case to the acting business school dean, Joseph Sebes, S.J.,
explaining she would be unable to receive a Catholic education because
there were no Catholic business schools for women. Eventually, Sebes
told her to attend summer school, and she received a letter of acceptance
in the fall.
Morrell taught at Mount Vernon and Marymount colleges as well as at
Georgetown, where she also served as assistant to the dean. She entered
the real estate business 22 years ago, and helped to found Washington
Fine Properties two years ago. The firm has grown from four to more
than 30 agents.
Morrell, whose three children graduated from Georgetown, serves on
the McDonough Board of Advisors and the University Alumni Board and
mentors McDonough students.
 MBA
traveled to Switzerland, Austria,
Germany, Puerto Rico and
Connecticut on assignments.
Meghan Rice is working at
Arthur Andersen in Virginia.
MBA
1988
Dodd Kazem-Zadeh is living
in Rockville, Md., and works at
Accenture.
1990
Class agent: Lorraine Herr
Cmputrilit@aol.com
Shaul Berechman has moved
from Israel to Boston, Mass. He
reports making the transition
smoothly, except for the Boston
drivers.
Beth Laboe Edgar has her
hands full with daughter Isabel
and her younger sister, Colette
(born November 2000). She
and Jason are enjoying their
family. Beth left 3M in October
2000 and is pursuing a masters
in public policy at the Univer-
sity of Minnesota.
Jane Ashton Hawes has been
out of touch since her son Colin
managed to delete her entire e-
mail address book from her
computer. Daughter Emma
continues to have better com-
puter etiquette. Jane and her
family are planning a trip to
Chicago in May 2001.
Lorraine Herr, your faithful
class scribe, is busy chasing her
two-year-old around and hatch-
ing a second child. Her drapery
design business is expanding
from Illinois to Minneapolis
and Omaha.
Bill Kummel (MBA90) called
to say he attended Rob Torres
wedding in Maui, where he
caught up with Mohab Khat-
tab (MBA90) and Monte
Carlo (MBA90) and their fam-
ilies. Bill is working in the new
media field.
C. Whitney Mandel has been
making many trips to African
countries as a sought-after
vacation consultant. He is plan-
ning on extending his next stay
to make a quick pilgrimage to
Victoria Falls.
Christine Campe-Price sent a
beautiful family photo for the
holidays, with husband Chris,
Peter (5 years) and Eliza (3
years). Peter is in kindergarten
and Eliza is in pre-school.
Christine is very active in both
of their schools and gets a lot of
satisfaction from that work.
Eileen Utter remains based in
San Francisco and has been
dashing around the country in
her role at Charles Schwab.
Recently, she had an article
published on the Schwab
intranet about her sabbatical
experiencefive weeks in
France. Eileen has been work-
ing out and training for a bike
ride she has planned for July
2001. She reports seeing
Monte Carlo when he was in
was in California on a consult-
ing gig and swears she cooked
him dinnertrout bleu, which
is French, of course.
Jason Wu and wife Jackie, have
a son, Jeffrey, born July 2000.
They are living in Shanghai.
Jeffrey is sitting, turning around
and will be walking and talking
soon, reports his proud father.
We have it from an unbiased
source that Jeffrey is also very
cute. Jason works for Coca-
Cola (China) Beverages Ltd.,
where he has been for the past
five years. He continues to wit-
ness dramatic progress being
made in Shanghai. Jason expects
to be in Atlanta some time this
spring for a three-month Coke
training program. He hears
occasionally from David Burke.
1991
Class agent: Mary Pat Blaylock
mpblay@hotmail.com
Layla Kashani has left CNBC
after two years and is now work-
ing in e-commerce at Global
Exchange Services, a division of
General Electric. Currently, she
is telecommuting to work in San
Diego from her home in Ran-
cho Santa Fe, Calif. Layla is vol-
unteering with ELFUN, a
global organization of GE
employees who are committed
to improving communities
through volunteerism.
1992
Stephen Corcoran celebrated
the third anniversary of the
opening of his restaurant, Sky, in
Sudbury, Mass. He is currently
looking into opening a second
restaurant. Stephen and his wife,
Nancy Sarkis (C87), had their
first child, Holden Stephen, on
June 5, 2000.
John Rarick lives in San Fran-
cisco, Calif., and is a vice presi-
dent at Wells Fargo.
1993
Class agent: Jordan ONeill
Jordan@chevychasebank.com
Tom Billington received a pro-
motion from director of new
product development to group
publisher in charge of 11 publi-
cations and the conference unit
for Pike & Fischer, a subsidiary
of The Bureau of National
Affairs, a publishing firm that
provides coverage of legal and
regulatory developments for
decision makers in business and
government. The four confer-
ences he has led all focus on
Internet and e-commerce public
policy. His work has been writ-
ten about in Folio magazine and
The Professional Publishing
Report. On a personal note,
Toms wife and four-year-old
son are enjoying their house in
Chevy Chase, Md.
Holley Darden and Steve
Volkers are working together at
The Nature Conservancy
(www.nature.org), the largest
private conservation organiza-
tion in the world. Steve is the
director of the International
Leadership Council, a group of
the largest global public and pri-
vate corporations that meet reg-
ularly to share information on
environmental issues and give
input to the Conservancys ini-
tiatives. Holley is enjoying her
10th year with the Conservancy
and is currently producing a
traveling photography exhibition
for the organization. She works
part-time and raises her two
children in McLean, Va.
1994
Class agent: David Gee
david.gee@sun.com
Mary Akimoto gave birth to
Alastair Johnstone Carlyle on
February 7, 2001.
Manish Agrawal is now head-
hunting as CEO of Itsearchplus
in India. He is focusing on
head-hunting for large- and
medium-sized information
technology companies.
Spring / Summer 2001 27
 Alumni Notes
Simon Black and his wife,
Alice, recently celebrated the
birth of their son, Jacob Maurice
( January 2001) in London,
where Simon is CEO and
founder of N-Circle Limited, a
marketing management trans-
formation company.
Brian Christie is president and
co-founder of QuantumStream,
a Virginia-based Internet soft-
ware and online service provider
start-up.
Marlise Eillis left the textile
industry in November 2000 after
eight years. She is now working
at 1-800-FLOWERS.com in
Westbury, N.Y. as the product
manager for flowers. She devel-
ops the flower products for both
the website and the telecenter.
Herve Francoise and his wife
Fabienne had a baby boy, Jared
Herve, on February 10, 2001.
Jared weighed in at 7 pounds 5
ounces and was 20 inches long.
Holly Fulgum and husband
Andy have a beautiful baby boy,
William DeWitt Tisdale, born
on March 6, weighing 8 pounds,
8 ounces. Holly is planning to be
a stay-at-home mom for a while,
and manage her husbands law
practice and father-in-laws con-
struction business.
Mattias Graff resides in
Chicago, Ill. He is currently
developing a townhouse project,
as well as two large apartment
projects.
Ashley Lowe (JD/MBA 94)
married Rob Shaya on Septem-
ber 3, 2000.
28 The McDonough School of Business
Paul Maloney is living in Silicon
Valley and is the president and
CFO of a semiconductor com-
pany, while also continuing to run
his legal, investment, and privacy
advisory business for a small
number of wealthy families.
Lisa Mitiguy is one of the few
still with her original 1994
employer, Ernst & Young, in
Washington, D.C. She will be
visiting Thailand for three weeks
in July 2001.
Paul and Jane Murphy now
have two children, Kathryn and
Margaret. Kathryn is two years
and three months and Margaret
is three months. Paul took a new
job with Sentinel Capital Part-
ners, a private equity firm in
New York City that focuses on
consumer products and business
services. They have moved back
to NYC and bought an apart-
ment on the Upper East Side.
Liz and Ben Rabinowitz are
living in Highland Park, Ill. Ben
is spending a lot of time in
Israel, while Liz is enjoying her
time with baby Maya.
Scott Shuda (JD/MBA 94) is
counsel for Vicinity.com in Palo
Alto, Calif.
1995
Class agent: Scott Shore
scott.a.shore@us.pwcglobal.com
Katie Bauersfeld celebrated her
one-year anniversary in San
Francisco. She loves the area and
swears she wont leave.
James Creigh (JD/MBA 95)
was the former counsel for
Garage.com and is now in pri-
vate practice. He works at Wil-
son, Sonsini, Goodrich &
Rosati, based in Palo Alto, Calif.
Bruce Dincin married Beth
Madorsky in Detroit, Mich., in
November 2000. Bruce and Beth
bought a house and are currently
living in Chevy Chase, Md.
Claudia Kern had a baby girl,
Andrea, on November 9, 2000.
Andrea weighed 7 pounds 3
ounces and measured 50 cms.
Claudia is living in Tysons Cor-
ner, Va.
Andy Libuser and wife Andi
are moving to London, Eng-
land, where Andy will be the
director of product management
and sales support for Sprint
International.
Al Mazloom (JD/MBA 95)
lives in Arlington, Va., and is
involved with the inFILM Net-
work, a California-based com-
pany founded by other George-
town alums.
Kui Nakamura is still trading in
New York City. He is getting a
crew together to do some sailing
during the week and weekends
and is considering entering some
races.
Kerri Olson and Ariel Eckstein
have a beautiful addition to their
family. Sonia Isabelle arrived on
January 1, 2001. Kerri and fam-
ily are living in the New York
City area.
Michelle Russey married Bob
McCarthy (MBA 92) on
August 19, 2000, in Spring
Mills, Pa. Michelle is currently a
director of corporate strategy at
Verizon Communications in
New York, and Bob is a risk
manager at GE Capital in
Stamford, Conn. Theyre living
in Manhattan.
Danielle Slentz and husband
Alumni Notes
Andy have returned from Aus-
tralia and are currently living in
Houston, Texas.
Samantha Tarlton and hus-
band, Dave, are living in Boston,
Mass., and recently visited Costa
Rica.
Alison and Bill Van Dyke had
a baby girl, Claire Marie, born
on March 17, 2001. Allison and
Bill are living in Northern Cali-
fornia.
1996
Class agent: Jill Kianka
jillk@foolmart.com
Aleco Bravo (JD/MBA 96) has
been living in Los Angeles,
Calif. for the past four years. He
started as an actor and is now
working as an executive pro-
ducer. He has been working
with classmate Efraim Wyeth
(MBA 95) on building the
inFILM Network for the past
two years. Aleco is vice presi-
dent, business affairs, and
Efraim is CEO/founder of the
company, which provides a
global marketplace that helps
motion media professionals
access industry information,
market themselves, conduct
business and execute projects in
a more efficient, effective and
dynamic manner, utilizing a
combination of appropriate
mediums for information distri-
bution, communication and
transactions. Both Aleco and
Efraim are involved with the
Georgetown University Los
Angeles Alumni Chapter. Any-
one wanting to contact Aleco
can reach him at
JDMBA96@hotmail.com.
MBA
Bob Gabriel is currently the vice
president of Investlyes.com
Solutions, a division of IXI Cor-
poration, a privately-held
database marketing and con-
sumer-segmentation consulting
company based in McLean, Va.
Bob still lives in Georgetown
with wife Megan and children
Margaret (7), Will (4), and
daughter Honor (2). He recently
ran into Professors Ricardo
Ernst, Bardia Kamrad and
David Walker at neighborhood
parties and reports they are all
doing well.
Stephan Gaull returned to
Washington, D.C. after nearly
four years in Sao Paulo, Brazil,
to serve a one-year appointment
as an Executive Fellow at the
Export-Import Bank of the
United States. He is working on
emerging-market debt restruc-
turing as well as originating
structured finance transactions.
Juliana Jaoudi is executive
director of pan-European busi-
ness development for AOL
Europe. She recently saw
Wendi Norris (MBA 96), vice
president of marketing for
Scale8, an infastructure and
Internet services company, for
New Years Eve 2001, and for a
wedding in San Francisco
shortly after. She also keeps in
close touch with Stefan
Schmitz (MBA97), who is cur-
rently working for J.P. Morgan
Chase & Co. in New York.
Michele Joseph is CEO of a
consulting brokerage firm,
www.klickconsultants.com,
focusing on strategic marketing
solutions for the telecom indus-
try. One of the firms projects
was the rebranding of Bell
Atlantic and GTE to Verizon
ALUMNI PROFILE
MBA Sets Alum on Road to Academy Award Nomination
Communications. Michele is the by Tom Price
busy mother of a four-year-old
Varied emotions swept over Joan Stein (MBA91),
boy named Austin. They
recently moved into a home in as she sat in the audience at this years Academy
the greater Silver Spring, Md. Awards presentations and learned that her film
area.
did not win the Oscar for live-action short.
Richard Oren lives in Hunting-
ton, N.Y., with his wife Nancy In that moment, when I heard another name
and new baby daughter Emma,
announced, it was shock and disappointment,
born on November 3, 2000.
Stein recalled. Then there was a sense of relief that I didnt have to get up
Richard recently became direc-
tor of licensing for HBO, where to give a speech. And then there was the realization of how incredible it is
he develops and markets con-
to be nominated, and how having gone to the awards was like a dream.
sumer products for hit shows
such as The Sopranos and Sex
Mixing with the emotions of the Academy moment, were the emotions
and the City.
of the true story behind the filmof relatives lost in the Holocaust and
(Richard) Yun Xu has been
the feeling that telling their stories will help to make sure that the world
working with various Asian
offices for the international law never forgets.
firms of OMelveny & Meyers
(1996-1997) and Debevoise & Steins 25-minute film, One Day Crossing, is the fictional story of a Jew-
Plimpton (1997-present) on ish family trying to survive the Nazi terror in Hungary near the end of
mergers and acquisitions activity,
World War II. It is inspired and informed by the stories of relatives from
corporate finance, debt restruc-
turings, private equity transac- her parents and grandparents generations, some of whom survived and
tions, and cross-border joint some of whom perished.
venture deals. He is currently
stationed in Hong Kong. Steins business education helped her manage her cast and interact with
the many teams that are involved in creating a movie, she said. Her busi-
1997 ness school experiences also put her on the path that led to the award-
Class agent:
winning film.
Andrea Alexander
Andrea_Alexander@chiron.com
While at Georgetown, Stein was a founding member of Students for
Andrea Alexander has left
Eastern European Democracy (SEED), composed of MBA candidates who
Procter & Gamble for the
biotech industry. She has moved wanted to help the emerging democracies of the former Soviet Bloc.
to the Bay Area and is working
in strategic marketing division at After graduation, she worked as a management consultant in Budapest,
Chiron Corporation. helping Hungarian companies adapt to free markets and international cor-
Grace deFries and her husband, porations invest in Hungary. While there, she volunteered at a camp for
Stephen Aroesty, became the refugees from the Balkan conflicts. And she began making videotapes at
proud parents of Ryan on January
the camp, to show people the faces of suffering. That rekindled a long-
4, 2001. Grace and Stephen also
have a daughter, Maggie (2). standing interest in film and led her into the Columbia University film pro-
Jeff Fassett has moved to San gram. One Day Crossing, filmed in Hungary, was part of her thesis.
Diego and has joined Chrysalis
Software as their vice president Stein now is working on the script for her first full-length feature.
of marketing.
Spring / Summer 2001 29
 Alumni Notes
Chris Hickson has moved on
from Snap! He has joined the
business development arm of
keen.com, a company that offers
personal advice for everyday life.
He works with Patrick
McKenna (MBA 98).
Scott Humphrey and wife
Rachel are the proud parents of
a baby girl. Samantha Rose was
born on March 4, 2001, and is
doing well. Scott, Rachel &
Samantha are still enjoying life
in Atlanta. The last weekend in
March, Scott hosted an
overnight with some former
classmates to kick off their
annual Rotisserie Baseball
League. Attendees included
Andrea Gothelf, Tom Javitch,
Meg Mulvihill, Rose Baisch,
Dan Smink, Scott Williamson,
Todd Corley, Phil Cefaratti
and Max Smith (all MBA 97).
Kris Lichter is now a director at
Palm Ventures, the business
development arm for the Palm
Operating System at Palm, Inc..
Malinda McCulloch Marsh
was married to Christopher
Marsh on November 4, 2000.
She is now living in Ridgewood,
N.J., and is teaching business at
the local community college.
Heather Price, Leigh Jack-
man, Jennifer Thompson and
Jean Berger are settling down
at their new jobs at Procter &
Gamble in Cincinnati. The four
get together once a month for
the Second Tuesday Club to
eat dinner and talk about the
glory days.
Ernesto Priego and his wife,
Traci, are the proud parents of
Thomas Charles, born on
November 26, 2000. The family
lives in Roswell, Ga.
30 The McDonough School of Business
Jeff Rothschild is now an invest-
ment banker at J.P. Morgan
Chase & Co., working in the
mergers & acquisitions group.
He is also in charge of the United
Jewish Appeal campaign for the
mergers & acquisitions group.
Jeff married Debra Silverman
(L96) almost two years ago.
John Wolpert has moved to
Austin, Texas and rejoined IBM,
working with fellow classmate
Leslie Givens on the Extreme
Blue program, IBMs incubator
for talent and technology.
1998
Class agent: Brian Knox
bknox@hess.com
Ali Bastani and Shalini Lal
were married in October, 2000.
Ali works with Goldman Sachs
in their private wealth manage-
ment group, while Shalini is vice
president of marketing for a
newly-formed technology com-
pany called Learning Technol-
ogy Partners.
Chris and Christa (Varney)
Demitz live in Rockville, Md.
Chris works in project finance
for HMSHost, while Christa
works in the public relations
department for Symantec. They
keep busy with their little boy,
Connor.
Mitchel Fenster and Kristen
Klemperer were married on
March 17, 2001 at the Car Barn
in Georgetown. Class of 98
wedding attendees included
Carrie Eiche, Danielle Ring,
Steve Woo, Rich Garodnick,
Margaret (Owen) Welch,
Jane Dwyer and Heather
Hunt. The new couple reports
that 8 x 10 wedding photos are
available upon request.
Carlos Fonseca has been pro-
moted to vice president for busi-
ness development and strategy
for Citigroup Latin America.
While at Citigroup, Carlos has
worked in India, Brazil, Aus-
tralia and Trinidad.
Jay Jacobs lives and works in
Orange county, Calif. He is still
with PIMCO Advisors, a firm
that provides fixed income and
equity investment management
to institutional and retail clients,
and was recently promoted to
senior vice president.
David McCarthy works for GE
Capital in their corporate
finance department. He recently
made a successful appearance on
Who Wants to be a Million-
aire?, where he schmoozed with
Regis Philbin and plugged the
Georgetown MBA program.
Julie Zarenko has moved to
Cadence Design Systems, in San
Jose, Calif., where she works in
their mergers and acquisitions
group.
1999
Class agent: Mike Pastore
pastmike@yahoo.com
Darcy Chamides is planning a
move to Mount Laurel, N.J.
Darcy has also changed jobs, and
is now working as an associate
marketing manager for the
Campbell Soup Company.
Kit Cooper reports that he is
living in Houston, Texas, and
that he and Alberto Fernandez
are running Hispanic Teleser-
vices. Kit is enjoying the differ-
ence between his native Califor-
nia and his adopted home in
Texas, and has traveled to San
Miguel de Allende and White
Sands, N.M.
Mariana Ippolito got married
Alumni Notes
last fall in Bogota, Colombia.
Lisa Kleinknecht works for the
Bank of New York.
Smrithi Prabhu plans to move
to New York this spring. She is
very happy working for AMS,
and recently traveled to Munich
to see classmates Mariana Ippo-
lito, Jason Cross and Sirko
Siemssen.
Maren Sturm married Jeff Nel-
son (MBA 98) on April 28. The
couple plans to live in Roway-
ton, Conn.
2000
Burak Eksioglu is an associate
at Citigroup in New York City.
Tamara Lopez-Jimenez
received a promotion from Latin
American region CEO to inter-
national banking officer at Stan-
dard Chartered, an emerging
markets bank. Tamara was in
Southeast Asia for training from
January to March 2001. She
traveled to Singapore, Hong
Kong, Malaysia and Thailand.
IEMBA
1996
Class Agent: Thom Arnsperger
tarnsperge@aol.com
It is hard to believe that it has
been almost seven years since a
bunch of strangers got together
and became the inaugural
IEMBA class. We took a chance
on a new program, betting that
Georgetown would only create a
top-notch program, and they
took a chance on us. Well, five
years ago we graduated, not as
 IEMBA
strangers, but as friends and as
IEMBA Is. Although many of
us have kept in touch since grad-
uation, time and distance has
taken its toll, making it difficult
to maintain relationships that
formed during the program. We
had a chance to rekindle old
relationships and catch-up with
friends at our five-year reunion
at Georgetown, June 13, 2001.
Matt Brooks is in the process
of relocating to a new home in
McLean, Va. He continues to
serve as the executive director of
the Republican Jewish Coali-
tion. He reports that it has been
a very busy year for him. Not
only did he work tirelessly dur-
ing the Presidential election but
he, his wife Deborah, and their
daughter Samantha celebrated
the birth of the newest member
of the Brooks family, Max Har-
rison, born May 15, 2001. Matt
has been very involved in help-
ing the new Bush Administra-
tion with their transition and
promoting their policy agenda
of the first 100 days and recently
had the honor of meeting with
the President in the Oval Office
for the first time.
Gloria Garcia is still living in
the D.C. area, but has left the
Cotton Council International.
After a stint running her own
consulting firm, she decided to
accept a senior position at
AGEX.com. AGEX.com is a
service company providing web-
based e-procurement software to
the global food and beverage
industry. She reports that she is
having a blast.
Pietro and Terri Gerosa have
relocated to Geneva, Switzer-
land, where both have taken new
jobs. Terri is still with the Citi-
group Private Bank and Pietro
has joined the European Broad-
casting Union. They have two
children, Francesco (2 years) and
Penelope (18 mos.). Both feel
lucky to still be in contact with
many Georgetown classmates on
both sides of the Atlantic. They
also plan on attending the
reunion in June and look forward
to seeing even more old friends
from the IEMBA program.
Lisa Graham McCormack and
her husband had a baby girl,
Lacey Marie, joining her two-
year-old brother, Matthew.
1997
Class agent: Lynn Anne Miller
MlleMiller@aol.com and
lmiller@ti.com
Michelle Young Barnum has
gone broadband. She can be
reached at mybarnum@pacbell.
net, although she might keep the
mybarnum@aol.com for a while.
Jean Luc Bejot and his family
are now living in Georgetown,
Washington D.C. He previously
was in France. Jean Luc is now
with Prestwick Scientific Capi-
tal. The company was founded
by a private investment bank
(formerly Graham & Hamilton,
now Crosshill Financial Group)
and a pharmaceutical physician.
Clark Beyer is still out in Silicon
Valley, working for a software
start-up on B2B e-procurement
application. He is trying hard to
avoid the whole dot.com Silicon
Valley meltdown! He was in Bal-
timore for a trade show a while
back and had dinner with Kevin
Pitts, (IEMBA II).
Sally Buzbee, and her husband
John had another baby girl,
Margaret Anne, known as
Meg, born Jan. 8, 2001. Meg
joins sister Emma, who is now
almost two-years-old and start-
ing to talk up a storm. They
leave Saudi Arabia in July 2001,
after Johns two-year posting at
the U.S. Embassy there. They
will be back in Washington for
one year in fall 2001 before
heading overseas somewhere for
another four years. Sally is look-
ing forward to getting back to
work this fall after her years in
Riyadh.
Nicolas Davidson can be
reached at work at Nicholas_
Davidson@mckinsey.com.
Shawn Green has landed two
new strategic equity partners at
his company, LabBook.
Recently, both IBM and John
Wiley & Son, a global publisher
of textbooks and journals,
became strategic equity partners
in LabBook, a Virginia-based
firm that makes software to
allow researchers to manage and
analyze huge amounts of raw
biological information. Shawn
was previously with Entremed,
where he was vice president of
drug discovery research. Shawn
can be reached at shawn.green@
labbook.com.
Todd Hatfield has relocated
from Northern Virginia to the
bucolic splendor of Kentucky.
He traded in life in suburbia for
a custom-built arts & craft bun-
galow on 50 acres! Todd is often
in Northern Virginia, working
as an independent technology
consultant.
Deborah Hughes has relocated
to Pensacola, Fla. Deborah con-
tinues to home school her four
children while applying her
business skills to, as she puts it,
of all things, the Catholic
Church. Mostly on a local level,
she notes, but it opened my
eyes to possibilities on national
levels as well. You may see more
on this in later years!
Suzanne Kaiser reports that
she was invited to attend a din-
ner last fall with then-New York
senatorial candidate Hillary
Clinton and 20 Whos Who Of
American Women living in New
York (Suzanne became part of
this group back in 1988). They
discussed womens issues, chil-
drens rights issues universal
health care. Suzanne continues
to write features for The San
Francisco Chronicle, The New York
Times, Stage Directions Maga-
zine, Architecture Magazine and
most recently earned three
assignments with American
Artist Magazine, which will take
her to California and Mas-
sachusetts. She is writing a jour-
nalistic non-fiction novel
under the whip of a professor-
mentor from the Columbia
School of Journalism, of which
she is a graduate. She is also
doing voluntary assignments for
Habitat for Humanity in
Westchester, N.Y. She has been
nominated to Pen & Brush, a
100-year-old national organiza-
tion for notable women in the
arts based in New York. On the
home front, she is busy restoring
her two homes, heading up vari-
ous local charities, and participat-
ing in NYC cultural activities.
She is a volunteer tour guide one
morning a week at the NY
Botanical Garden, the largest pri-
vate teaching/botanical research
facility in the world. Her New
York home will be part of
Westchester Garden Week.
Spring / Summer 2001 31
 Alumni Notes
Michael McCarthy can be
reached at mmcarthy@
lendleaserei.com.
Susan McVay is still with Mar-
riott Corporation in Bethesda,
Md. She is heading off to Lon-
don to speak at Hostec 2001, the
European hospitality industry
technology conference.
Dennis Morris welcomed his
fifth child, Juliana Marie, born
January 26, 2001. Dennis and
his family reside in the Freder-
ick, Md. area. He was recently in
London on business and had a
chance to catch up with another
IEMBA II, Nicholas
Davidson. Nicholas has been
with McKinsey Consulting for
about seven months now. He is
quite happy with his new assign-
ment. Dennis and his BAE Sys-
tems and IEMBA II colleague,
Lucy Fitch, collaborated on the
live case study used by the
IEMBA VIIs at their opening
residency. Professors Lamar
Reinsch and Bob Bies wrote a
fabulous case study on BAE and
the global defense industry. Sev-
eral speakers from the company
and Wall Street rounded out the
case study. Lucy was one of the
companys speakers, and Dennis
served as a judge. Dennis can be
reached at work at dennis.mor-
ris@baesystmes.com.
Mary (Stancill) Plock, and hus-
band Ernie welcomed their
adopted baby girl, Marina Clair,
born March 21, 2001. Shes
healthy and according to her
parents, an absolute joy! Mary is
taking several months off from
her job as vice president, public
affairs for the Advanced Medical
Technology Association, where
she oversees U.S. public relation
32 The McDonough School of Business
efforts supporting Medicare
reform, as well as campaigns
reinforcing the value of medical
technology in Germany, France
and the U.K. Mary notes that
the process of adopting has been
a great learning experience. Shes
thinking about focusing more of
her professional interest here
if anyone has thoughts or con-
tacts, Mary would appreciate
hearing from you at
mplock@advamed.org
Pat Quinlan has relocated from
the Washington, D.C. area to
Boston, Mass., to accept a new
position as acquisitions editor
with Pearson Educational Pub-
lishers.
Amy Sample gave birth to a
baby girl, Kalin, on February 16,
2001. Amy has been enjoying
some time off and plans to
return mid-April to US Air-
ways, where she is director of
human resources with responsi-
bility for benefits sourcing. Amy
can be reached at Amy_Sam-
ple@usairways.com.
Eric Sklar, the original IEMBA
II entrepreneur, has left Silicon
Valleys Technet, where he was
involved in galvanizing tech
community support for tech
issue lobbying. In a great
IEMBA connections move, Eric
and Michael McCarthy
(IEMBA II), are now both with
Lend Lease Real Estate Invest-
ments in Bethesda, Md. Michael
joined the firm as a principal last
May to launch an international
real estate fund for taxable
investors. At the start of the new
year, Eric joined the firm as a
partner, working from the San
Francisco Bay Area. Eric Sklar
can now be reached at:
sklarel@napanet.net.
Mikel Williams was appointed Francesco Mejia and wife Lisa-
Alumni Notes
president of wholesale services Beth Mayr (MBA 98) are the
at the Global TeleSystems parents of Isabel Maida, born on
Group, Inc. in January, 2000. March 26, 2001 at 7 pounds, 9
Based in London, Mikel joined ounces.
the firm in 1996 as vice presi-
Richard Meyer is making a liv-
dent of finance operations. As
ing on his new 25-acre farm.
vice president, he oversaw the
financial operating activities of Albert Razick has made contact
all GTS operations and partici- from New Jersey and USAir. He
pated in driving GTSs annual misses those Fridays and Satur-
revenue from under US$100 days more and more and wishes
million to a run rate of US$1 us all peace.
billion.
Alphonse and Liz havent
recapitalized their company,
1998 National Government Proper-
Michelle Franck is living in ties, LLC, yet, but are still work-
Munich, Germany. ing on their optionsand are
also trying to organize an
IEMBA IV get together.
1999
Class Agent: Alphonse Iudicello
a.iudicello@worldnet.att.net
Holly Brown is working at the
strategic planning office of the
U.S. Secretary of Defense.
Richard Eng and Margaret
have moved to a small ranch in
Oceanport, N.J.
Karen Flood will begin work as
a quality trainer for George-
group, a consulting firm.
Chris Ford is still at Marriotts
corporate office, in Bethesda,
Md., and hopes to have a new
job when the next update rolls
around.
Seth Grae tells us that Michael
Harrison was born on March
23, 2001, weighing in at 8
pounds, 14 ounces.
Niel Gregory just completed
his first short-course triathlon.
Ross Lindholm and his wife
Lori had their first child, Adam
(six months).
Executive Education
Developing Leaders for the New Economy

The Office of Executive Education

offers non-degree executive programs
in the areas of management, finance,
leadership and e-commerce.
Additional opportunities offered
through Executive Education include
the International Executive MBA
Program, an eighteen-month graduate
degree program, custom programs
and Public Policy Forums.
To learn more about these programs,
visit our website at www.msb.edu/
or telephone 202-687-2704.
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