Alumni Reunion - The Wharton School of the University of ...

Wharton NowMBA Class GiftsSet New Recordsel of participation achievedby this class is an inspirationto all Wharton Alumni.”TOP: MBA FOR EXECUTIVES - WESTMIDDLE: MBA FOR EXECUTIVES - EASTBOT TOM: MBA CLASS GIFT COMMITTEET O M M Y L E O N A R D I M A U R I C E R A M I R E ZAmid tough economictimes, the Wharton MBAclass of 2004 raised a totalclass gift of $776,690while setting new recordsfor class gift participation.Combined participationof the East and West coastMBA for Executives classesand the traditional MBAclass was 98.3 percent.The graduating Eastcoast and West coast MBAfor Executives classes had anunprecedented 100 percentparticipation in raising atotal of $327,772, includingchallenge gifts from Beth W.Nelson, WG’82. In honorof the participation record,Ms. Nelson offered an additionalgift to bring the combined(East and West coast)Wharton MBA for Executivesclass gift total to $350,000.Following a recordbreakingyear in 2003, theMBA class of 2004 set itsown record with the highest-evernumber of Whartonclass gift donors: 764.Class participation was 95percent, with 97 percentparticipation of internationalstudents. The totalgift raised was $426,690,including $50,000 from ananonymous challenge donor.Associate Dean forExternal Affairs StevenOliveira stated, “TheWharton MBA Class of2004 has made the largestgraduating class gift inthe history of any businessschool. We believe that thismay also be the largest graduatingclass gift in the historyof higher education. The lev-MBA ReunionWeekendLaunches NewAlumni ProgramsVeteran alumni now have anetwork of their own. TheWharton Emeritus Society,one of two new alumniprograms launched during2004 Alumni Weekend, willhelp create a formal networkand content-based programsof interest for graduatesof 50 or more years. Thesecond new program, MBAAlumni March (depictedon this issue’s cover), invitesreunion-year alumni to doncap and gown and processonto Franklin Field, usheringnew graduates into theworld of Wharton alumni.For more information onAlumni Weekend events,visit .Meeting theWorld: WhartonGlobal AlumniForumsMexico’s economic growthtoward globalization and thefuture of Latin Americanmarkets were among thedozens of panel discussionsand speeches by governmentand corporate luminaries,including FernandoCanales Clariond, Mexico’sEconomy Secretary, atWharton’s Global Alumni2. S U M M E R 2 0 0 4 . W H A R T O N N O W

Forum held on June 24-26in Mexico City. The event,the last of three WhartonGlobal Alumni Forumsheld this summer, offeredalumni the chance to networkand learn with topcorporate and governmentleaders who are impactingthe business climateof Latin America. Topicsincluded globalization strategy,the Hispanic market,energy, and pensions andgrowth. Juan Toro, the taxcommissioner of Chile,Eduardo Wanick, CEO ofDuPont Latin America andAlfredo Elias Ayub, CEOof the Federal ElectricityCommission were amongthe roster of speakers.The Wharton GlobalAlumni Forums are organizedby alumni with thehelp of the School. In lateKAHNP E T E R O L S O NMay, the Moscow GlobalAlumni Forum addressedissues including emergingconsumer markets and financinginvestment globallyat a sold-out gathering theMoscow Times called “thefirst example in Russia of aninternational school puttingon a large, publicized event...” Wharton’s presence waseverywhere at the ShanghaiGlobal Forum, held June3-6, where welcome signshung the airport wallsand on city buses while aWharton-emblazoned blimpflew over the city.The sold-out Shanghaievent brought together businessand government leadersincluding Philip Murtaugh,chairman and CEO of GMChina and Zhang Ruimin,chairman of the HaierGroup, to discuss China’sunique banking system andforeign direct investment,among other topics. Duringthe Shanghai event, theSchool also presented itshighest honor—the Dean’sMedal—to K.P. Chao,chairman of the board ofNovel Enterprises Ltd., forhis exceptional leadership inadvancing global business.For more informationon the GlobalAlumni Forums, visit.New Innovationsto UndergraduateCurriculumIn fall 2004, Wharton undergradswill have new opportunitiesto experience businessin practice. Three curricularinnovations are being added:a business simulation additionto the core marketingcourse, a research pilotprogram, and a firm-specificconsulting project. The newprograms are outcomes ofWharton’s recently completedcurriculum review.Widely recognized as thebest undergraduate businessprogram, Wharton’scurriculum blends liberalarts with core business concepts,a combination thatgives students a wider understandingof the socialand cultural issues today’sbusinesses face. The recentcurriculum review lookedat ways to improve thisundergraduate experience,bringing together two committees,an external onethat consisted of deans fromHarvard, Princeton, and theUniversity of Michigan, andan internal task force thatbrought together nine facultymembers from a varietyof Wharton departments, tomake recommendations.Barbara E. Kahn, vicedean and director of theUndergraduate Divisionand the Dorothy SilberbergProfessor of Marketing, saysthese curricular additionsstrengthen and enliven theSchool’s already ambitiousofferings. The businesssimulation component tothe core undergraduate marketingcourse, for instance,will bring undergraduatesinto teams that will managea firm, making key marketingstrategy decisions.“One of things we thinkdifferentiates the Whartonundergraduate learning experiencefrom other kinds oflearning would be this experientiallearning opportunity,that is, something outside ofthe traditional lecture/mediamode,” Kahn says.The new research pilotprogram pairs a studentone-on-one with a facultymember in a semester-longresearch program. The “fieldchallenge” program, to bepiloted this fall, will taketeams of undergraduatesout into the business world.Working with a faculty advisor,the teams will comeup with solutions for individualbusinesses.“Wharton undergradsare an incredibly brightand talented group. Theyare very eager and workvery hard,” says Kahn, whobecame the division’s vicedean in 2003 and teachesIntroduction to Marketingto between 400 and 500students each semester itis offered. “They are herefor a longer period of timethan the MBAs, so youcan have more of a personalrelationship with them.It’s a really nice opportunityto work with them.You feel like you can reallymake a difference.”Knowledge @Wharton toIntroduce ChineseLanguage EditionFew would deny thatChina is hot. Companieswithin China and aroundthe world are searchingfor credible answers abouthow to do business in thismust-play country, andKnowledge@Wharton willsoon provide the knowl-W H A R T O N N O W . W H A R T O N A L U M N I M A G A Z I N E .3

edge they need. Wharton’sonline business analysisand research journal willlaunch a Chinese versionin early 2005, adding toits English, Spanish andPortugese versions. As well,Knowledge@Wharton andThe Boston ConsultingGroup have partneredto create four special reportson China, the firstof which, “China and theNew Rules for Business,”is now available on theKnowledge@Wharton websitein both Chinese andEnglish .The Chinese version ofKnowledge@Wharton willtarget management leadersin China as well as Chinesereadingpopulations worldwidewith a mix of tailoredand existing content. Theproject, a year in the making,came together when bothDean Patrick Harker andBoston Consulting Groupofficials, led by a Whartonalum, expressed a simultaneousinterest in creatingreal-world, online communicationsvehicles to tackle theopportunities and challengesof operating in China.“Our original strategy isto have a two-fold engagement,”explains MukulPandya, editor and directorof Knowledge@Wharton.“On one hand, there’s ahuge hunger for informationabout how to dobusiness in China amongWestern executives. Allthey have been getting is alot of hype, or horror stories.Our opportunity is totell stories for the benefitof a Western world thatwants to figure out what’sreally real. Then there’sa great hunger in Chinatoo about business in theWest, and for them, havingaccess to a place likeWharton is crucial.”Wharton alumnus HalSirkin, W’80, a senior vicepresident at BCG and leaderof the firm’s OperationsPractice, says that for manycompanies, China has risento the top of the managementagenda. “In manyindustries today, operatingin China is no longer justan option to consider — it’san imperative if they are toremain competitive,” Sirkinsays. “Yet many questionsand risks remain.”The Chinese version ofKnowledge@Wharton willbe funded by a combinationof corporate sponsorshipsand donations from alumni,parents of existing studentsand friends of the School.It comes on the heels ofthe fifth anniversary ofKnowledge@Wharton,which now has more than350,000 subscribers in189 countries.Tech LeadersSpeak on VCat InauguralWharton WestConferenceThe state of venture capitalwas one of the many topicsaddressed at Wharton West’sfirst venture capital conference,held May 11 in SanFrancisco and organized byProfessors Andrew Metrickand Chris Geczy. Called“Venture Capital: TheoryMeets Practice,” the eventdrew alumni from bothcoasts to hear speakers suchas John Dean, WG’74, formerCEO of Silicon ValleyBancshares, Jim McElwee,WG’76, general partner ofWeston Presidio, MichaelMortiz, WG’78, partnerat Sequoia Capital, andTed Schlein, C’86, generalpartner of Kleiner, Perkins,Caufield & Byers.Lauder Alumniand BusinessLeaders Gatherfor GlobalBusiness ForumMost images of entrepreneurshiptend to focus onthe vision and guts involvedin getting ventures off theground. But at a recent paneldiscussion at the inauguralLauder Institute AlumniAssociation Global BusinessForum in New York, agroup of entrepreneurs– some just a few years intotheir venture, and at leastone with decades of experience– offered a portraitof the entrepreneur thatseldom makes it onto thecover of Business Week: Theentrepreneur as mensch.Panelists emphasized lessthe solitary aspects of theentrepreneurial life than thesocial ones. Forget genius,they said; what really countsmost is building a strongnetwork to turn to for helpand advice, treating peoplewith dignity, and servingyour customers well.Chaired by LauderInstitute governor EdgarBronfman Jr., the chairmanand CEO of Warner MusicGroup, the panel featuredTom Bendheim, the CEOof Rheingold Brewing Co.;George Bennett, the chairmanand CEO of HealthDialog; Luis Gonzales, COOand founder of Vidalink,a Brazilian pharmaceuticalsupply company; CharlesRashall, president andfounder of brandadvisors;and Diane Ty, chairman andco-founder of YouthNOISE.JOHN BUGGIE, WG’92; DICK PARSONS; LEONARD L AUDER, W ’544 . S U M M E R 2 0 0 4 . W H A R T O N N O W

The Global BusinessForum was held in April atthe Metropolitan Club inNew York City and was attendedby more than 300Lauder/Wharton alumni.In addition to the participantsnoted above, over 30industry leaders served askeynote speakers and panelists,including LeonardLauder, W’54, CEO of EsteeLauder; Dick Parsons, CEOof Time Warner; A.G. Lafley,CEO of Procter & Gamble;Sir Martin Sorrell, CEOof WPP; Paul Fribourg,CEO of ContiGroup; ShivKhemka, WG’90, G’90,CEO of Sun Group; andRichard Haass, presidentof the Council on ForeignRelations. To read moreabout the Business Forum(including coverage fromKnowledge@Wharton), visit.Robert E.Mittelstaedt: 13Years as ViceDean of ExecutiveEducationRobert E. Mittelstaedt hasresigned from his positionas vice dean of the WhartonSchool’s executive educationdivision, a role he has heldfor 13 years. Mittelstaedtleft his post to become deanof the W.P. Carey School ofBusiness at Arizona StateUniversity, effective July 1.During his tenure atWharton, Mittelstaedt wasresponsible for building theAresty Institute of ExecutiveEducation into one of thelargest organizations of itstype in the world, withmore than 220 programsfor 8,000 to 10,000 executivesannually. He was instrumentalin founding theDirectors’ Institute in 1993,the Wharton ElectronicCommerce Forum in 1996,and Knowledge@Whartonin 1999. During 1996-99, he headed Wharton’sexternal affairs division,including fund raising,public relations, communicationsand alumni affairsfunctions. He also led thestartup of Wharton West asthe initiative’s interim vicedean during 2000-2001.While at Wharton, he alsoserved as associate directoror director of a number ofprograms including: theLeonard Davis Instituteof Health Economics;the National Health CareManagement Center; theWharton Applied ResearchCenter; and the WhartonInnovation Center.Dean Patrick Harkersaid, “I am deeply gratefulto Bob for his outstandingwork at Wharton. Hisappointment to the W.P.Carey deanship is muchdeserved recognition of hisabilities as a leader and hiscommitment to businesseducation. We wish him thevery best of success in hisnew position.”NewsmakersJoseph E. Harari,PAR’90, member of theSchool’s Executive Boardfor Latin America, wasawarded (along with histhree brothers) Panama’shighest civilian honor,The Order of Vasco Nunezde Balboa, in April. Theaward is conferred to citizensof the Republic whohave made outstandingcontributions to the countryover the years.Peter Murphy, WG’88,was featured in an articleabout his career as seniorexecutive vice presidentand chief strategic officer ofthe Walt Disney Company(Daily Variety, 4/2/04).Ron Wilson, WG’95and Brian LeGette, WG’95,were featured in an articleabout their company,EntreQuest, producers ofperformance wear merchandise(Baltimore Sun, 4/6/04).Jay I. Kislak, W’43, wasfeatured in an article abouthis gift of 4,000 artifacts ofearly America to the Libraryof Congress (WashingtonPost, 4/7/04).Upcoming Patagonia AlumniLeadership Venture; January 7 –16, 2005 (Includes flying timefrom the U.S.)In January 2005, the Wharton Leadership Ventureswill offer its first Venture to South America foralumni. This trip takes participants into the heartof Patagonia to the famous “Torres Del Paine.” Ledby Professor Mike Useem, Director of the Centerfor Leadership and Change Management, and underthe expert guidance of Vertical SA’s world-classmountaineering team, the Venture will provide a setof engaged, hands-on experiences for exploring andmastering the capabilities for effective individual andteam leadership in business and beyond. Participantswill have the opportunity to improve their capacitiesto think strategically, communicate effectively, andact decisively.This week long program begins the afternoon ofJanuary 8, 2004 in Punta Arenas, Chile. Participantswill spend the week trekking in the Torres Del PaineNational Park alternating between lodges and camping.A key highlight of the trip will be an afternoon ofwalking and ice-climbing on Grey Glacier. It promisesto be a challenging and invigorating program atonce fostering an environment for further leadershipdevelopment as well as providing the opportunity foralumni to reconnect.Enrollment opened on July 1, 2004. For furtherinformation and to enroll please e-mail AldoBoitano at aldo@vertical.cl or Penny Bamber atpennyb@wharton.upenn.edu.W H A R T O N N O W . W H A R T O N A L U M N I M A G A Z I N E .5

William Lauder, W’83,has been named CEO ofEstee Lauder Companies(Wall Street Journal, 4/23/04).Angelo Koo, WG’93,member of the School’sExecutive Board for Asia,was featured in an articleabut his career at ChinaTrust Financial HoldingCompany, and his managementand leadership skills(Tapei Times, 4/23/03).Donna S. Morea,WG’80, was featured in anarticle about her career as executivevice president of thepublic sector group forAmerican ManagementSystems (WashingtonPost, 4/26/04).Charles Abdalian,WG’77, has been appointedto senior vice presidentof finance and CFOof Coley PharmaceuticalGroup, Inc. (Health &Medicine Week, 4/26/04).Steven Zwiener,WG’89, was featured inan article about Wolfgang’s,his family-owned Manhattanrestaurant (New YorkTimes, 4/28/04).Kim Saunders, W’82,has been appointed presidentof ConsolidatedBank & Trust (BlackEnterprise, 3/1/04).Zane Tankel, W’62,was featured in an articleabout his success in theownership of 21 Applebee’sfranchise restaurants inNew York City (New YorkTimes, 3/10/04).Robert B. Goergen,WG’62, Wharton Overseer,authored an article inthe Executive Life Columnabout his career and roleas chairman and CEOof Blyth, Inc. (New YorkTimes, 3/14/04)Tarun Tahiliani, W’84,was featured in an articleabout his international reputationas a leading couturefashion designer in India(The Hindu, 3/18/04)Peter M. Kendall,WG’70, was featured inan article about his successas CEO of CoorsBrewers, Ltd. (The LondonTimes, 3/18/04).Masayuki Nagatake,WG’97, has been namedmanaging director of UnigloUK, a Japanese clothing retailer(Retail Week, 3/19/04).Michael Steinhardt,W’60, was featuredin an article about hissuccess as a hedge-fundmanager (Investor’s BusinessDaily, 3/24/04).Kelly Wallace, W’87,currently with CNN, servedon a panel of national correspondentsto lead discussionson the September11th attacks (CNN: On theStory, 3/27/04). ◆For more news, visit.6

Recent Alumni BooksThrow Me the BottomLine . . . I’m Drowningin E-mail! Bob’s Rulesfor Managing theE-mail CrisisBy John S. Fieldon,W’45, PhD, Jean D.Gibbons, PhD andRonald E. Dulek, PhDPioneer River Press(2003)“I highly recommendthis little book to anyoneaspiring to advance theircareer. The authors offermany practical ideas forinfluencing others usingcertain simple communicationprinciples.”- Arthur C. Neilson, Jr.,Chairman Emeritus,A.C. Nielson Co.Marketing to theCampus CrowdBy David A. Morrison,WG’99Dearborn TradePublishing (2004)“David Morrison hasdiscovered the Fountainof Youth. Marketing tothe Campus Crowd is anall-encompassing-brilliantreviewof what to do and,always more importantly,what never to do.”- Rich Appel, Director ofMarket Research, SonyMusic EntertainmentA Soldier and IBMMachines in WorldWar IIBy John J. DiMino,WEV’53The Historical Societyof Montgomery County(2001)“DiMino’s book . . .provides an excellentintroduction to the specializedwartime mobilerecord units.”- Keith Phucas,The Times HeraldOrganizing for Profitin China: A CaseStudy ApproachBy David S. Wu, WG’82iUniverse (2003)“David S. Wu has written aterrific book on doing businessin China. Don’t missthis guide into the land ofthe world’s first capitalists.”- Dr. Bob Rosen, CEOof Healthy CompaniesInternational, authorof Global LiteraciesW H A R T O N N O W . W H A R T O N A L U M N I M A G A Z I N E .7

Brainy Winners: 2004 Business Plan CompetitionR E P R I N T E D F RO M T H E GET IT STARTED N E W S LE T T E R < W W W. W E P. W H A RTO N . U P E N N . E D U >Health science trumped the Internet— and everything else — at the 2004Venture Fair, the culmination of the2003-2004 Wharton Business PlanCompetition. The grand prize went toInfraScan, which has created a deviceto detect brain bleeding; the secondprize went to CelfCure, which wouldtreat neurological ailments with transplantedstem cells; and third placewent to BioSpectrum, which aimsto improve the way pharmaceuticalcompanies screen for potential drugs.Distributed Resource Imagery, a computeranimation company, won theFrederick H. Gloeckner Award as thebest Wharton undergraduate team.P H I L L E F FBEN DOR; NAIK, WG’04 ;AND BANERJEE, WG’05As the winners, InfraScan’s teammembers — two Wharton MBA studentsand an Israeli physicist — collected$20,000, entry into Wharton’sVenture Initiation Program and a chanceto present their business plan at theGlobal Start-up @ Singapore competition(Co-organized by INSEAD andthe National University of SingaporeEntrepreneurship Center). CelfCurereceived $10,000, and BioSpectrum,$5,000. All three teams also will receive$10,000 worth of combined legaland accounting services.“For the purpose of raising funds,this is extraordinary PR,” saidInfraScan founder Baruch Ben Dor, anIsrael-trained physicist who moved toPhiladelphia in hopes of launching anentrepreneurial venture. “My problemwas getting through the first five secondswith a venture capitalist. Winningthe Business Plan Competition gives methe first five minutes of his attention.”“Nearly 200 student teams participatedin this year’s competition,”said Emily Cieri, managing director ofWharton Entrepreneurial Programs,which co-manages the event with astudent team. “We touched over 700students across campus, whetherthey competed or just attended ourworkshops. We had submissions from10 of the 12 professional schoolsacross campus.” Any team that includesa University of Pennsylvaniastudent can participate.InfraScan’s entry was built on itsHematoScope. The handheld devicewould let emergency room physiciansand emergency medical techniciansdo quick scans of people with headtrauma to determine the extent of theirinjuries. About the size of a personaldigital assistant, it could help hospitals,especially those in the developingworld, more efficiently use scarce CTscanners and MRIs. A patient would besent for a CT or MRI scan only if theHematoScope detected brain bleeding.Ben Dor met his teammates —Sandeep Naik, WG’04, and SamonnoiBanerjee, WG’05 — through a postinghe placed on a Wharton web site. Hesought help with his business plan andinvestor presentation. Naik responded,suggested they enter the competition,and enlisted Banerjee.Naik had worked at Medtronic, aMinnesota medical-device maker beforecoming to Wharton. Thanks to hisbackground, he quickly sensed theHematoScope’s potential.“I asked Baruch tons of questions.And the more I questioned him, themore I realized that the technology isvery simple and low cost. It’s mobile,too. And I found out there’s a huge unmetneed.”Naik, with Banerjee’s assistance,wrote the business plan and deliveredthe team’s 10-minute presentation atthe Venture Fair. After that, the competition’spanel of eight judges — investors,entrepreneurs and a journalist— peppered him and Ben Dor withquestions for 10 more minutes.“This is not just a concept,” Naiksaid during his talk. “We have a workingprototype and have conductedhuman clinical trials on 305 patients.”He argued that the HematoScope couldhelp reduce health care costs by eliminatingunnecessary scans on expensive-to-operateCT and MRI machines.InfraScan’s scanner grew out of apatent on research by Britton Chance,an emeritus professor of biophysics,biochemistry and radiology at Penn.Chance is something of a legend withinhis field and at the University. Though91 years old, he still does research,traveling to his on-campus lab by bicycle.In 1952, he won an Olympic goldmedal in sailing as part of a three-manteam in the 5.5 meter class.Ben Dor, a former Israeli Air Forcecaptain, was familiar with Chance’sresearch and sought him out. Chancedecided to hire Ben Dor as chief executiveof a dormant company he’d createdcalled NIM, which stands for noninva-8. S U M M E R 2 0 0 4 . W H A R T O N N O W

EDITORIAL STAFFEditorSteve Guglielmisive medicine. Chance had started NIM tocommercialize the near-infrared technologythat undergirds the HematoScope.InfraScan spun out of NIM.“This is not just a concept,” Naiksaid. “We have a working prototypeand have conducted human clinicaltrials on 305 patients.”The device “projects light of theproper wavelength into the brain to detectwhether there’s bleeding,” Chanceexplains. “Shed blood absorbs a lot oflight, so spilled blood gives a biggersignal than non spilled blood.”Second-place CelfCure aims to treatneurological ailments, too. It wantsto harness what’s called manipulatedautologus stem cell therapy, or MAST.In MAST, physicians take cells from apatient’s body, culture them in a lab,load them with drugs, then put themback in the patient. The technology,which has shown promise in researchlabs, can be used to treat problemssuch as head and spinal-cord injuriesand stroke. So far, it isn’t available forpracticing doctors.The problem, says team memberAjay Bakshi, a neurosurgeon and researcher,is that “biotech companiesdon’t have access to patients, and hospitalsdon’t know how to grow cells.”CelfCure would act as a bridge, providingthe cultured cells and techniquesfor transplantation. “Our businessproposition rests on developing MASTtechnologies for various diseases andmaking them available for medical useby establishing a centralized laboratory,”the team explains in the writtensummary of its plan.Third-place BioSpectrum also offersa technology that it believes could helpexisting health care companies — in itscase, drug companies — operate moreeffectively. It has deviseda faster means ofscreening proteins thathave a role in diseases.As with conventionalscreens, its technologywould test the proteins’responses to large libraries of chemicalcompounds.“Understanding proteins enablesdrug researchers to target more effectivelythe root causes of disease earlierin the drug-development process, thussaving time and money in a processthat currently requires on average 15years and $800 million,” the teamexplained in a summary of its plan.BioSpectrum’s technology allows it tominiaturize the chemical reactions requiredto run screens. That lets it runmore screens on the standard-sizedplates that drug companies use for thetests and reduce waste. Rather thanlicensing its technology, BioSpectrumwould perform screens for drug companiesand contract-research companies.Rounding out the Great Eight, as thefinalists are known, were Greenhands,a retailer of environmentally friendly fuels;IL Aerospace Technologies, a spacetourism company; Integrated BiometricSolutions, a developer of biometric entrysystems for hotels; and Solestia, aprovider of solar-system financing.An eight-person panel judged thefinals of this year’s competition. Thepanel included representatives of St.Paul Venture Capital, Canaan Partners,JK&B Capital, Johnson & Johnson,Sienna Ventures, Microsoft andContinued on page 33Editorial BoardMichael BaltesKaruna KrishnaMeghan LaskaTracy LiebmanTom McMahonNancy MoffittMukul PandyaCynthia RussellRobbie ShellPeter WinicovEditorial AssistantMark NataleContributing WritersKelly AndrewsJoanne SpigonardoDesignWarkulwiz Design AssociatesProduction AssistantMartin ThibodeauEditorial Office1030 SH/DH, 3620 Locust WalkPhiladelphia, PA 19104215.898.7967 (phone)215.898.1883 (fax)magazine@wharton.upenn.eduADMINISTRATIONPatrick T. HarkerDean and Reliance Professor ofManagement and Private EnterpriseSteven OliveiraAssociate Dean, External AffairsLeslie ArbuthnotDirector, Alumni Affairs and Annual GivingADVISORY BOARDJoan Walsh Cassedy, WG’82Executive Director, American Council ofIndependent LaboratoriesJay A. Dubow, W’81Partner, Wolf, Block, Schorr and Solis-CohenEllen Yin, W’87, WG’93Proprietor, Fork RestaurantFor Change of Address: The Wharton SchoolOffice of Development and Alumni Affairs,Alumni Address Update, 344 Vance Hall,3733 Spruce Street, Philadelphia, PA 19104-6360• Telephone: 215.898.8478 • Fax: 215.898.2695 •Web: W H A R T O N N O W . W H A R T O N A L U M N I M A G A Z I N E . 9

Welcome New Alumni10 . S U M M E R 2 0 0 4 . CS OT ON RN Y E C TT II TO LNES T H A T R U N D E E P

How do you sum up a life-changing experience in 3 minutes? It’s not easy,but at Wharton graduation on May 16 in Philadelphia and May 2 in San Francisco, severalintrepid student speakers expressed the meaning of their years at Wharton beforeclassmates, faculty, friends, and family.This year Amal Devani, W’04, C’04, addressed the undergraduate class on Penn’sFranklin Field, while Nancy Park, WG’04, and John Jolly, WG’04, spoke to newly mintedMBAs from the traditional program and MBA Program for Executives respectively. In SanFrancisco’s Herbst Center, Jane Lin-Baden, WG’04, addressed the second graduating MBAclass from the Wharton MBA Program for Executives at Wharton West.Lin-Baden, who commuted to Wharton in San Francisco from Singapore every twoweeks, stated her belief that a Wharton education has meaning beyond a degree. “It is afaith, passion and responsibility. For many of us, this program has opened a new chapterand perspective in our careers and lives,” she said. “Earning an MBA ‘degree’ has neverbeen my reason to join the program, but a chance to learn from a group of brilliant andtalented people. I have now achieved that.”Wharton graduates also heard from renowned speakers as varied as musician/activistBono; Klaus Zumkinkel, WG,71, CEO of Deustche Post; and Ann McLaughlin Korologos,WG’88, vice chairman of RAND, and former Assistant Secretary of Labor.This academic year, Wharton awarded about 650 undergraduate degrees, 31 PhDs,821 MBAs from the traditional program, 100 MBAs from the Philadelphia executiveprogram, and 74 MBAs from the San Francisco executive program. During the May ceremonies,faculty, administrators, and alumni welcomed the graduates into the ranks ofWharton’s 77,000-plus alumni worldwide.P H O T O S B Y T O M M Y L E O N A R D I

ALUMNI RECONNECT IN HUNTSMANHALL AT THE OPE NING RECEPTION.P H O T O S B Y T O M M Y L E O N A R D I12 . S U M M E R 2 0 0 4 . C O N N E C T I O N S T H A T R U N D E E P

CONNECTIONSThat Run DeepBy Elisa LudwigAlumni connections run deep,as anyone who attends a reunionweekend would attest. More often than not,these connections extend beyond School events and into thedaily lives of alumni who have maintained friendships throughyears of relocations, career changes, and major life events. Classnotes—which our readers admit they turn to first in each edition—provideone way of keeping up with these changes. But,as the individuals we profiled below indicate, there is nothinglike seeing a friend in person. (And, as in the case of MarkHodak, WG’86, and Theresa Boyce, WG’85, surprising newconnections can come out of these events as well.)More than 1,000 alumni and guests came to Philadelphia inMay to participate in reunion. With plenty of sunshine, food,opportunities to mingle and hear faculty speak, the weekendserved as the perfect backdrop for friends to come together afterspending time apart.C O N N E C T I O N S T H A T R U N D E E P . W H A R T O N A L U M N I M A G A Z I N E .13

REUNITING (for the past 50 Years)Bill Nikel, WG’54, and Roy Peterson, WG’54Bill Nikel, WG’54, and Roy Peterson, WG’54, didn’t really needa reunion. Friends for 50 years, the two Wharton grads still see eachother on a regular basis. Instead, they came to reunion weekend tomeet fellow alumni, observe the changed campus, attend lectures,and bask in the sun on Lehman Brothers quad. As it happened, thechance to celebrate a half-century friendship was just an added bonus.Nikel and Peterson met during their first year at Wharton. Bothmen majored in marketing and shared several classes, some taughtby the legendary Reavis Cox, the department’s first chairman.Nikel, who was born in Boonton, NJ, came to Wharton after completingan undergraduate degree at Ursinus College, while Peterson,who was born in Worcester, MA, came from Upsala College.Between their common academic interests and similar undergraduateexperiences, Nikel and Peterson had plenty of things to talkabout and quickly developed an unusually durable bond.After graduation, Nikel and Peterson stayed friendly, meetingup at an occasional Broadway show in New York or a beach resortin Maine with their wives. (Both men married in the mid-1950s.)They both continued on to careers in marketing, with Petersonmoving to Minneapolis and Nikel moving to Newport News, VA.For a time, each was busy raising a family (Nikel has four children;Peterson has two) and they lost touch. But when Peterson cameback to the East Coast, Nikel was among the first people he contacted.“I found his name in the alumni directory and gave him acall,” says Peterson.These days, the two classmates meet every six months for lunch,usually at the Bear Mountain Inn in the Hudson Valley. Peterson,who worked for Lever Brothers (now Unilever), Dow Chemical andShaffer Clark before retiring eight years ago, now lives in Somers,NY, with Linda, his wife of 48 years. Nikel worked for JC Penney,Lukens Steel and the Noland Company, among others, is semi-retiredand works as an independent consultant specializing in careercounseling, team building and executive coaching. He lives inWest Caldwell, NJ, with Nola, his wife of 50 years.For Peterson, the reunion was his first visit back to campus since1954. He left Wharton after a year and half to join the service—heended up getting a job at Pillsbury instead—and got his diplomain the mail. “One of the reasons I came back was because I neverwalked at graduation,” said Peterson.NIKEL, WG’54, AND PETERSON, WG’5414 . S U M M E R 2 0 0 4 . C O N N E C T I O N S T H A T R U N D E E P

HODAK, WG’86, AND BOYCE, WG’85During the weekend, he finally had the opportunity to walk inthe graduation ceremony.“I was the last one. I was carrying the flag, and as I camearound—the oldest guy at the ceremony—all the students perkedup. I waved the flag and gave a little wiggle and said ‘I made it.’ They alllaughed and cheered.”Nikel, who has been active in the Wharton clubs in both NewYork and New Jersey, tries to come back to campus at least once ayear, but there are always changes. “My wife and I lived on 31st andSpruce while I was at Wharton,” says Nikel. “I was shocked to see ahuge high-rise that’s there now.”“The reunion was fantastic. It was really special to take Roy andLinda around and show them all that had changed on campus,”says Nikel. For his part, Peterson enjoyed seeing the changes. “Ihardly recognized anything! But there was so much energy and enthusiasm—notto mention the state-of-the-art facilities—and thatwas great to see. ”And it won’t be long until they’ll have a chance to reminisceabout the reunion in person: Nikel and Peterson plan to meet thissummer at the Bear Mountain Inn.A CHANCE MEETINGMarc Hodak, WG’86, and Theresa Boyce, WG’85Neither Marc Hodak, WG’86, nor Theresa Boyce, WG’85, wascelebrating a class reunion at the opening night reception on May15. But though their classmates were not around, they felt plenty ofnostalgia standing in Huntsman Hall that night. The couple metat the building’s opening in 2002 and they are getting marriednext year.Actually on campus for the Alumni Association meeting—Boyce serves as a board member—Boyce and Hodak saw the Fridaynight party and Saturday picnic as a chance to celebrate their owntwo-person reunion. “It’s one more touch point to be grateful for.Being involved with another Wharton person has been fabulous,” saysBoyce.Even though their time at Wharton overlapped, Hodak andBoyce did not know each other as students. Both were active instudent life, and one fleeting extracurricular connection eventuallybrought them together. While working as a reporter for the studentnewspaper, Hodak wrote about Boyce’s campaign for president ofthe Marketing Club. (She won.)C O N N E C T I O N S T H A T R U N D E E P . W H A R T O N A L U M N I M A G A Z I N E .15

JIMENEZ-MARCOS, WG’99, AND LIEB, WG’99Seventeen years later, when Hodak encountered Boyce at the openingof Huntsman Hall, she looked vaguely familiar to him. “I’d justcome down from New York and was touring around the building forthe first time when I saw her. Then I heard her name, and it clicked.”At the time, Boyce was working in brand development forLennox International in Dallas, TX, but the two quickly developeda long distance romance. They got engaged in July 2003, and shemoved to New York at the end of the year.The turn of events may not have been surprising for Boyce, whohas long been an active member of the Wharton alumni network.“Over the years, I’ve been involved in the Wharton club in whatevercity I was in. Many of the best friends I’ve made have been Whartongrads,” says Boyce. She remembers once calling up Robert Crandall,WG’60, then-CEO of American Airlines, looking for job leads,around the time when she was thinking of relocating to Texas fromNorth Carolina. She was shocked when he called her back from hisyacht in the South Pacific to offer advice and encouragement.For Hodak, though, the 2002 event at Huntsman Hall markeda recently revived interest in nurturing Wharton connections.After graduating, Hodak lost contact with his classmates, and formore than a decade, he was focusing on his career in managementconsulting and raising his two sons, Max and Sam, from a previ-ous marriage. Earlier that year, he’d decided to go out on his ownas a management consultant and began to meet Wharton alumnithrough the New York Club. Since then, he has been rediscoveringthe virtues of the Wharton network, and Boyce’s involvement hasencouraged him to get even more active.“I’ve been carrying Theresa’s bags to alumni meetings. I likecoming to Philly with her for these events: I’m reconnecting with alot of interesting people,” he says.The soon-to-be newlyweds definitely plan to attend their 20-year reunions in 2005 and 2006, but it’s a safe bet they will be backon campus before then.MINI-REUNIONS All Over The WorldMarta Lieb, WG’99, and Florencia Jimenez-Marcos, WG’99Talk to Marta Lieb and Florencia Jimenez-Marcos, both graduatesof Wharton’s Lauder Program in 1999, and you’d think thatMiami Beach was just a couple of bus stops from Paris. The twoalums have managed to maintain a close friendship—and even asclassmates around them screamed with excitement at seeing long-16. S U M M E R 2 0 0 4 . C O N N E C T I O N S T H A T R U N D E E P

lost pals, their meeting at the reunion was hardly dramatic.“I see Marta all the time, so it wasn’t such a big shock,” saysJimenez-Marcos.Lieb and Jimenez-Marcos met when they both began Lauder’sFrench program in May, 1998. With the intense schedule, theybonded quickly, finding common ties: Lieb came to Wharton fromSao Paolo, Brazil, while Jimenez-Marcos was born in Argentina. Asan international student, Lieb found their mutual support systeminvaluable, and Jimenez-Marcos, who had been in the U.S. sinceshe was 5, helped Lieb acclimate to life in Philadelphia. Lieb canremember taking trips to IKEA in a tiny car and coming backcramped between furniture boxes. “When I got here, I didn’t evenknow what IKEA was,” she says.For their first-year summer program in Paris, the two sublet anapartment from a Wharton alum who was working in Asia. Lieb recallshaving difficulty getting to sleep because they were up all nighttalking. “We had a great time discovering together all the idiosyncrasiesof Parisian life, love and the pursuit of the perfect croissant,”says Jimenez-Marcos, who thinks of that summer as a fantasticbonding experience that cemented the foundations for what sheexpects will be a lifetime of friendshipAfter graduation, Jimenez-Marcos moved to Miami Beach, startedher own real estate consulting firm, The Biscayne Bay Group,and married a fellow Wharton alum, Xavier Gonzalez-Sanfleiu, who“ I talk to other Wharton classmatesevery week, if not every day,” saysJimenez-Marcos.she met on a blind date in an airport. Lieb got a job at the EstéeLauder Company, which led her to a position at L’Oréal in Paris.She is currently in the process of moving to London where she willbe marketing director for L’Occitane. Lieb is engaged to FabienLered and plans to marry in 2005.These days, Lieb regularly consults with Jimenez-Marcos byphone about her nuptial plans. Lieb helped Jimenez-Marcos finda headpiece for her wedding, which Lieb will wear at her ownupcoming ceremony.Having graduated fairly recently, both Lieb and Jimenez-Marcosfind that they are still very much entrenched in their Whartonsocial life. “I talk to other Wharton classmates every week, if notevery day,” says Jimenez-Marcos, who has hired and worked withWharton acquaintances at her firm. “We end up having mini-reunionsall over the world on a fairly regular basis.”At reunion, Lieb was delighted with the turnout and the chanceto revisit the past with classmates. “You just remember how manyamazing people are at this place. On the other hand, I’d say it wasbittersweet, because you know you can’t return to those two years. Itmade me want to go back.”Whether in the States or in Europe, the international businessgrads will continue to conduct an ongoing foreign exchange programof their own. “Marta has come to visit me in every place I’velived, and several members of my family have even stayed at herplace in Paris. She is just like another sister now,” says Jimenez-Marcos. The two friends plan to meet again at the end of theyear in Miami.A TIGHT-KNIT CIRCLEColeman O’Murchu, WG’99 (WEMBA XXIII), and MarkChandler, WG’94 (WEMBA XVIII)Not many people get to go to their class reunion with their boss.This year, though, Coleman O’Murchu’s five-year reunion happenedto correspond with Mark Chandler’s ten-year reunion. Bothcolleagues completed the Wharton MBA for Executives (WEMBA)program in the 1990s, and both came to the Friday night WEMBAreception to gather with classmates and friends.O’Murchu and Chandler ended up in the same office throughcircumstances that were not so much coincidenceas the general good fortune of people ina tight-knit, supportive circle.Graduating from WEMBA in 1999, theIrish born O’Murchu traded in a career inchemical engineering and joined BioSupplies,a startup in Philadelphia that created softwarefor microbiologists. He eventually becameCFO and sold the company’s assets in 2002.When it came time to look for a new position,it was only natural that he began tosearch through Wharton channels. He firstcalled an associate, Jim Bodine, WEMBAXVIII, who, after hearing about O’Murchu’sdesire to get involved with a young company, suggested he call hisclassmate, Mark Chandler. A couple weeks later, O’Murchu wasat a Wharton event in Old City and his wife pointed out a manacross the room. The man, who had once dated her sister, wasChris Olivia. Olivia and O’Murchu got to talking, and Olivia alsorecommended that O’Murchu contact Mark Chandler. “Withindays, I had two different recommendations for this guy, so I knewI had to call,” says O’Murchu.Chandler was working at BTG, a technology and intellectualproperty investment firm that helps burgeoning companies taketheir ideas from their early, raw stages to the next level. O’Murchucalled him and they met a couple times at BTG’s Conshohockenoffice. “I wanted to do some projects for the company as there wereno full-time openings at that time, and it turned out Mark wasC O N N E C T I O N S T H A T R U N D E E P . W H A R T O N A L U M N I M A G A Z I N E .17

fun, too. Over the course of the year welearned each other’s strengths and howto be productive by leveraging our differences.Carlos is from Mexico and weused to joke that our team name shouldbe ‘mole,’ like the Mexican sauce madewith chile peppers and chocolate—it’ssomething that doesn’t sound like a goodcombination, but it really is.”These days, the “mole” team continuesto stay in touch through occasional e-mail and phonecontact. Before she moved to Princeton to become a brand managerat Bristol-Myers Squibb, Ryan worked for General Mills inMinneapolis, MN. On one occasion, Carlos and his wife flew infrom Mexico for a Vikings game. (He’s a huge fan.) “I’ve heardfrom Orin Herskowitz since graduation, too. He and his wife had ababy recently,” says Ryan.While reunion was the first time Sánchez, and Jiam were backon campus since graduating, Ryan has visited Wharton a few timesover the past five years, mostly as a recruiter. “But that wasn’tnearly as much fun, because everyone I knew had left by then. Thereunion was wonderful! There was a great turnout from our class,“Once you go through the learning teamexperience, you’re never strangers.”and it was fantastic to be able to catch up with so many classmates.It was fun to see Sean and Carlos again, and it would have been niceto see Orin and Robin, too.”For Sánchez, reunion reinforced the understanding that evenwhen he’s been out of the communication loop, he has a lastingbond with his learning team. “I’m never afraid to get in touch.We’ve been through a lot together and I don’t feel shy emailing outof the blue,” says Sánchez, “Once you go through the learning teamexperience, you’re never strangers.” ◆Elisa Ludwig is a Philadelphia-based freelance writer.JIAM, WG’99, SÁNCHEZ, WG’99, AND RYAN, WG’99C O N N E C T I O N S T H A T R U N D E E P . W H A R T O N A L U M N I M A G A Z I N E . 19

The Value ofExperienceWharton’s Global Consulting Practicum has givenstudents real-world experience for 25 years.BY ROBERT STRAUSSJosefa Nolte was faced with a business impasse.The non-profit organization she runs in Peru, Mercomujer,was successful at making toys and other artisan-like objects inrural women’s cooperatives. Yet its distribution, accounting,and general organizing systems were clearly too haphazard.Then she discovered that the Corporation Andinade Fomento, a rural banking program associated withMercomujer, was going to meet with Wharton MBA students– American students who were taking a class designed to advisecompanies in developing economies break into the American market.She decided to sit in on the proposal from the students fromthe Wharton Global Consulting Practicum.“Because my program was closer to their proposal, they cameto our office, where I made a presentation (for them to take on)Mercomujer,” said Ms. Nolte.Take Mercomujer on they did. Four students from Whartonand four from a partner program at the Universidad Del Pacíficoin Lima, Peru, spent several months doing a consulting job thatotherwise might have cost Mercomujer hundreds of thousands ofdollars – a sum the non-profit surely did not have – had they beenconsulted by McKinsey or Bain or even some lesser first-world firm.Instead, it paid some of the students’ expenses and got what Ms.Nolte considers first-class advice.“I think they have done great work,” said Ms. Nolte. “They hadto understand the logic of an enterprise working under the cover ofan NGO [Non-Government Organization], and all the difficultiesworking with 800 producers in 40 different sites in Peru.“Understanding these issues, and the target to grow the marketin the United States, will bring the benefit not only of meeting ourbreak-even point, but will include more women in the productionend,” she said.It has now been 25 years since Wharton ProfessorLeonard Lodish began what was then an experimental program, theGlobal Consulting Practicum. The idea was, according to Lodish,who still runs the program, to give current students a chance to dointernational consulting on a practical basis, not just with traditionaltextbook learning. Lodish recruited foreign business schools to bothhelp find companies which could benefit from the student consultantsand lend their students to be part of an international team effort.“This is a chance to be cross-cultural, to have a complete functionalexperience,” said Lodish. “We’ve become more sophisticatedover time, but the idea is still the same, a capstone course, somethingof real value to both the students and the company for whichthey consult.”Over the 25 years, the students have consulted for just aboutevery imaginable type of industry. To be sure, during the technologyboom, many of those companies were tech firms trying togain a foothold in the United States market. For the 2003-2004group, the 10 clients ranged from a winery to a feminine hygieneproducts manufacturer to a billing outsourcing firm to the nonprofitMercomujer. Lodish said the criteria for the firms the GlobalConsulting Practicum picks to help out are not extensive.“The first is that there is a reasonable, prima fascia reason forthem to be successful in the United States market,” said Lodish.“They have to have something leverageable. Management has tohave the courage to do something different. And they have to havethe resources to be able to implement what we suggest.”One of them might be as fortunate as Kitan, which Lodishpointed out as a Global Consulting Practicum success story. Kitan,an Israeli company, had a line of about 240 various products, butwas exporting none of them, when it came to the practicum foradvice 20 years ago.20. S U M M E R 2 0 0 4 . T H E V A L U E O F E X P E R I E N C E

ON LOCATION IN PERU (LEFT TO RIGHT):SUE KOLLORU, WG’05, SARAH RYERSON,WG’05, NIKHIL CHANDRA, WG’05, ARTHURSTEINBOCK, WG’05, ELIZABETH ULMAN,WG’05, EMILY LIN, WG ‘05.BOTTOM LEFT: PROFESSOR LEN LODISHBOTTOM RIGHT: THE MERCOMUJER PROJECTGROUP—SHAOWEI YING, WG’05; JOSE LOO,ERNESTO DELGADO, OSCAR UGAZ,UNIVERSIDAD DEL PACIFICO, PERU; EMILYLIN, WG’05, SARAH RYERSON, WG’05; CAROLMAGUIRE; ELIANA UGARTE, UNIVERSIDAD DELPACIFICO, PERU; JOSEFA NOLTE, MERCOMUJER.“The students went through a winnowing process and cameup with a detailed marketing plan for the company’s 100-percentcotton flannel sheets,” he said. “There were OSHA standards thatprohibited U.S. companies from making them and the main competitionwas in Portugal and China. The designs in Portugal werenot as good as Kitan’s, and the ones from the Far East didn’t havetheir quality.“The student team did a step-by-step plan and the export managerfollowed it almost word for word,” said Lodish. After about sixyears, he said, the export business was doing $10-15 million in sales.“They wouldn’t have been around, it is fair to say, if our projectwouldn’t have happened.”Sometimes the students in the Global ConsultingPracticum find themselves in a somewhat top-secret situation. Suchwas the case for Ellen Copaken, WG’05, a member of the teamconsulting for an Israeli company which makesfeminine products.“They have a product that is completely newin technology. That’s about all I feel I can say,”said Copaken.Because of security concerns in Israel, theteam from Wharton and its partner team fromTel Aviv University met in Paris to plan thestrategy for the company to get its product intothe North American market. There, she said,the main initial difficulty was to set figure outwho was to do what and why.“In an actual consulting firm, there wouldbe a pre-established hierarchy. We had to decideour own roles and how we would choose whowould lead what part of the project,” she said.Once that was done, though, the teams becameemboldened. “I think because it was more ofan academic setting, we had more permissionto challenge the client. We certainly did that.We challenged many of the assumptions. TheyT O M M Y L E O N A R D Icame to us exploring one specific thing, butwe said to explore four or five things and theywere receptive.”Copaken’s Wharton team was also unique because it was entirelyfemale.“For any project, that would be unusual for consulting andunusual for Wharton, since only 30 percent of the student body isfemale,” she said. Yet, she said, she felt that served the client well.After all, it would be women who would be using the product.“We had professional interest in the project and personal interest inthe project. The product itself, if it indeed works as described andplanned—and they are doing more clinical trials—can make hugeimprovements for women’s health. There is no other product like iton the market anywhere in the world.”Unfortunately for some firms that come to the GlobalConsulting Practicum for advice, there is indeed too much marketcompetition for particular products. At that point, said Lodish, theadvice is to not enter the U.S. market, which can be a disappointinganswer to the client.T H E V A L U E O F E X P E R I E N C E . W H A R T O N A L U M N I M A G A Z I N E . 21

“ There are a lot of resources at GCP, but that is theback-up. They want to see how you do on your own.”“If it entered the market and lost lots of money, that would beworse,” said Lodish, who noted that it does not affect his evaluationof the student teams if that is what they prescribe for the client. “Thatis part of the game. If they come up with a practical approach anddecide it isn’t worth it for their company, then that is the answer.”It was a close call on that score for Wharton student Gil Dibner,WG’05, and his team advising a Chilean office supplies company.Although this multi-million dollar company has a significant shareof the notebook market in its home country and already exports toseveral Latin American countries, it still sought the advice of theWharton team and its partners from the Universidad Adolfo Ibañezin Chile. Dibner said the ultimate advice the students gave wasnot completely negative, but that the company had to do better atdistinguishing its products to make any real inroad in the UnitedStates market.“It really was a great experience, since it is one of the few classesat Wharton where you get to integrate a lot of stuff,” said Dibner,who wants to be a venture capitalist after graduation. “It was an applicableand relevant fusion: market strategy, pricing, internationalwork, even finance.“And you are working with a client paying money, which ispretty relevant,” said Dibner. “You learn all the same lessons as ina classroom, but in the context of a high-effort environment. Thatadds to the stress level, but also to the relevance. People really care.We stayed up until 2 a.m. arguing the fine points because we wantedto see the final and best product. You get real-world experience,but with an educational context to reflect on it and talk about it.”Ellie Moss, WG’05, was most appreciative of the hands-offpolicy of the Global Consulting Practicum staff. It was scary, in away, she said to be in Peru, where her group was trying to find waysfor a winery to get into the U.S. market. But on the other hand,that was the point—to have the experience of being on a real consultingproject.“There are a lot of resources at GCP, but that is the back-up.They want to see how you do on your own,” she said.The winery, one of the oldest in South America, markets productsthat are well known and well respected locally, but no one inthe always experimental wine-buying market in the United Statesknew about it. Before she came to Wharton, Moss had worked asa director of operations for a translation company that focused onpharmaceutical and medical device instruction translations. She saidshe already knew from that how difficult and important languageand culture is in putting together business propositions.“I speak Spanish and lived in Spain for a while, but I never hadto conduct business in the language,” she said. “It’s a whole new vocabulary,and even with that, you have to learn cultural differences.You are thrown into this situation and you have to learn quicklyto adapt. This is not just a grade. A client is depending on you foryour advice.”On top of that, she said, you have to learn how to work withyour own team.“Everything in business now is involved with groups, so youhave to get used to group dynamics,” said Moss, who after graduationintends to go into international development, primarily withfood policy, and probably in Latin America. “But together, we got,I think, a good result, some ways the winery can position itself tocome to the market. It will be exciting to see if they are successful.”The group consulting with Mercomujer, though,will not just be waiting around to see if the non-profit is successful.All the Wharton Global Consulting Practicum members havesigned on to continue consulting. It is the first time the practicumhas taken on a non-profit client, and Lodish said it will certainlynot be the last, though this and future non-profit projects will haveto be funded differently than the for-profit clients. In this case, thestudents on the Wharton GCP team had to raise several thousanddollars of the budget themselves to help finance the Mercomujerproject (with GCP itself donating some in-kind services in researchand the like). This was no small feat, considering that GCP projectstypically cost $50,000 to $60,000.“We are not doing this to change the perception of MBAs as beingcapitalists, because that is what we are,” said Emily Lin, WG’05,one of the four Wharton students to team with a similar groupfrom the Universidad Del Pacifico in Peru for the project. “But wedid this to have something we feel good about doing.”Mercomujer, which focuses on women’s cooperatives, has a goalof creating more non-subsistence jobs for rural women in Peru. Italso wants to find ways to get these women working at jobs that willget them closer in wages to working men in their particular regions.The project the Global Consulting Practicum team worked on hadwomen in several villages spread out through Peru hand-makingknitted dolls and other somewhat sophisticated paper and clothitems. Most of the women also had family and farming duties, sotheir work hours were inconsistent, most often depending on whenthey were needed otherwise by their families. The products themselves,said Lin, were good, but Mercomujer could never quite get aconsistency in inventory or know exactly when the workers wouldshow up.“That is a real challenge with a non-profit that we learned,” saidLin. “You have to get them to think like a business. You spend anawful lot of energy with a non-profit that way which you probablywouldn’t with another kind of business.“But then, you are not only analyzing things, but working witha cause,” she said. “What was interesting is that there was a nexusbetween environmental concerns, women’s concerns, business,and a host of other things. McKinsey and other firms do pro bonowork, sure, but here you are out there making a difference.”In the end, the GCP students advised Nolte and Mercomujerto concentrate on the high-end and “organic” market in the UnitedStates. There are a lot of buyers of crafts, they said, who look fornatural fibers and things made by local artisans for gifts or showitems. In addition, the students also tried to show Nolte and herContinued on page 3322 . S U M M E R 2 0 0 4 . T H E V A L U E O F E X P E R I E N C E

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YOU ARE WHATWHARTON’S LISA BOLTONINVESTIGATES THECONNECTIONS BETWEENIDENTITY, JUDGMENT,AND CONSUMER BEHAVIOR.IIt was around the time of the Florida electionrecounts that Lisa Bolton noticed that no oneseemed to be listening. She saw the emotionaldebate, Democrats and Republicans exercisedand red-faced, no one budging an inch. It wasmore of the same when the new administrationannounced plans to drill for oil in the ArcticNational Wildlife Refuge a short time later – environmentalists inone camp, Republicans in another. “I was watching it all and thinking,‘No one is changing their mind in all of this. There’s no meetingin the middle.’”Her Wharton marketing colleague Americus Reed, meanwhile,would often drift into her office, waxing philosophic about thepower of identity – that decisions, consumer and otherwise, are reallyall about a person’s identity.Bolton, an assistant professor of marketing, began thinkingabout Reed’s words, the national political debate, and a host of othercontexts came to mind: Why do so many smokers keep smoking,despite decades of health warnings? Why do Harley Davidson motorcyclesand Ralph Lauren clothing engender such loyalty amongvery specific types of people? Why is it teens and parents alwaysseem to fight, and never seem to hear what the other is saying?Four experiments later, Bolton and Reed found some answersdemonstrating that, indeed, judgements that are linked to a person’sidentity – from teenager to Republican, environmentalist or businessman– are virtually immovable, or “sticky.” This stickiness– the tendency for judgements to persevere – is a thread throughoutBolton’s growing body of research, work that is breaking newground in both consumer and managerial contexts.In her most recent research article, to be published in a forthcomingissue of the Journal of Marketing Research, Bolton addressedsocial identity on a very broad level, going beyond new productattitudes to investigate social and political judgements in a variedpopulation of participants.Titled “Sticky Priors: The Perseverance of Identity Effects onJudgement,” the paper included four studies that examined the effectsof identity on judgement. The studies looked at judgments ofa variety of issues and products, such as pollution, legalizing marijuana,and electronic books, that were linked to different identitiesheld by participants, such as environmentalist, businessperson,or parent. Bolton and Reed then tried to influence participants’judgments using techniques that varied from evenhanded reasoning(listing pros and cons) to adopting the perspective of anotheridentity (say, parent vs. teenager), with little success. Social influence– good old peer pressure – was somewhat effective in counteringidentity based judgement, “But not entirely,” Bolton says.24. S U M M E R 2 0 0 4 . Y O U A R E W H A T Y O U B U Y

YOU BUYBY NANCY MOFFITT“Throughout, we really find that identity is really powerful in itseffects on judgement.”“It really doesn’t help to go to the person and say to them,‘Hey come on, look at the evidence.’ If being a smoker is part ofyour identity, you can present all the analytic evidence in the worldabout cancer and heart disease, and it’s going to be very difficultto sway your attitude toward smoking because it’s so much a partof how you define yourself. Your identity serves as a filter of sorts,and you discount information or social influence that’s inconsistentwith that identity,” she says. “It’s hard to walk a mile in the otherguy’s shoes.”Smart marketers have relied on identity messages for years,luring consumers with products and brands that symbolize theirown personality traits – or traits they aspire to. Ralph Lauren, forinstance, has built an empire peddling everything from paint toperfume to the well-heeled set. Previous research has similarly demonstratedthat consumers are often attracted to products and brandsthat are linked to their identity. But Bolton and Reed’s work is thefirst to show how powerful identity is. “We believe we are the firstto take an identity based judgement, subject it to attack with a varietyof techniques, and demonstrate what a force it is,” Bolton says.The message for marketers, Bolton says, is that identity is apowerful way to build brand loyalty. “It resists counter attack fromcompetitors. Arguments that say ‘My brand is better because ofthese attributes’ are probably not enough to overcome a strongidentity based attitude for a competitor. It’s a good basis for brandloyalty that resists change.”For social marketers focused on bettering consumer welfare, thestudies provide evidence that finger wagging messages, such as antismokingadvertising that barrages consumers with warnings abouthealth risks, can be wholly ineffective. “Young people, teenagers,T O M M Y L E O N A R D IBOLTONare just not going to respond to those kinds of messages,” Boltonsays. “They don’t think they are at risk, but it’s also not tying intowhy they smoke to begin with.” A better approach, Bolton suggests,would focus on offering an attractive counter identity, such as encouraginghealthy habits by linking them to athleticism.What does the study offer managers? “Your identity can reallyeffect how you face problems as a manager,” Bolton says. “If you’reY O U A R E W H A T Y O U B U Y . W H A R T O N A L U M N I M A G A Z I N E .25

THE MESSAGE FOR MARKETERS, BOLTON SAYS, ISTHAT IDENTITY IS A POWERFUL WAY TO BUILDBRAND LOYALTY. “IT RESISTS COUNTER ATTACKFROM COMPETITORS.”a marketer, you think you need more advertising. If you’re a financeperson, you think you need more investment. It got me to thinkingabout the challenge of reconciling those different points of viewwithin the firm. It also made me think that just being a businesspersonis actually a really strong identity for a lot of people. It’s hardfor them, say, to understand why the environmentalists or certaincustomer segments are so upset with them. A strong identity makesit harder to consider alternative points of view, which is really whatyou need to do as a manager – otherwise you’re just going to bringyour own biases into your perceptions of your customers and themarketplace.”Bolton’s study of identity based judgement builds on earlierwork that investigates “stickiness” in judgement, i.e., the tendencyfor judgements to persevere. Her dissertation, for instance, lookedat what happens when managers launching new products base forecastson past experience rather than analytic predictions. “Forecastswere stickier when based on analogies or scenarios rather than analyticthinking,” Bolton says. “This suggests that managers may beoverconfident about a product’s success, continuing to invest in itor in a project when evidence suggests otherwise.”Another study, titled “Consumer Perceptions of Price(Un)Fairness,” found that price perceptions are sticky: consumerstend to believe that prices are unfair, and reminding them of inflationand other costs does little to improve their fairness perceptions.The research, Bolton says, points to a gap between how consumersand managers think – a gap managers should acknowledge if theywant to change customer attitudes.Other work has a definite social welfare bent, such as researchthat investigated how the marketing of “remedy” products such asnicotine replacement patches, the now-ubiquitous debt consolidationloan, and identity theft insurance and software ultimately affectconsumer behavior. The good news, the studies found, was thatfor consumers “outside of the problem domain,” i.e., non-smokersor those with little personal debt, “remedy messages” reinforced perceptionsthat the behavior is risky and should be avoided. The badnews? Smokers and over spenders tended to perceive remedy productsas ‘get out of jail free cards,’ ultimately increasing their problembehavior. And when it came to identity theft, consumers were moreinclined to take risks, such as sharing personal information whenshopping on websites, if they had purchased identity theft insuranceor software.“The companies are really careful about how they position theirmessages,” Bolton says. “But somehow you always get the feelingin the end that the consumer is walking away thinking ‘Gee, thisisn’t so risky after all, because of the remedy.’ The remedy marketers’messages undermine the risk-avoidance messages of just-say-nocampaigns, for example. We’d all be better off if we didn’t smokeand get into too much debt, but the remedies suggest to consumersthat maybe we can get away with it. Put this way, it seems that riskybehavior is sticky and hard to change too.”Born and raised in the countryside near Toronto, Bolton wasan officer in the Canadian forces, then worked for five years as amedical engineer at several Canadian teaching hospitals. She took ayear off and traveled the world before deciding to earn her PhD atthe University of Florida, a school known for its strong marketingprogram, where she met professor Reed and the two first began discussingissues of identity and judgement.Her work is all about stickiness, but didn’t start out that way.“I was initially very interested in how judgements are formed andhow they change, and I studied this in contexts where judgementis very important, like new product forecasting and consumer priceperceptions. Along the way, I discovered that some kinds of judgementsseem to be more difficult to change, and I decided to explorethis more.”“Stickiness isn’t always a bad thing,” Bolton continues.“Sometimes, it’s good to stick to your guns or persevere with aninitial judgment – if it’s correct. But stickiness can be bad if it leadsus astray and prevents us from adapting to new information in ourenvironment. On the flip side of the stickiness coin, my researchalso explores ways to change or take the bias out of judgment – forexample, by prompting people to engage in more analytic pro-andconreasoning, to generate alternative scenarios and analogies, toadopt counter-identities. I hope that some of these tools may proveuseful in overcoming the stickiness of an initial judgment and ultimatelyhelp managers and consumers make better decisions.” ◆Nancy Moffitt is a frequent contributor to and former editor of theWharton Alumni Magazine.26 . S U M M E R 2 0 0 4 . Y O U A R E W H A T Y O U B U Y

http://knowledge.wharton.upenn.eduKnowledge@Wharton, the School’s online research and business analysis journal, currently hasmore than 350,000 subscribers in 189 countries. Registration is free.A New Strategy for Venture Investors: HedgeIt’s the venture capital investor’srule of thumb: Nine of every teninvestments will not make money.If all goes well, the tenth will makeenough money to exceed all the losses.Given these odds, investors arealways looking for ways to increasereturns from their winner. Bill Hilliardand Charles Baden-Fuller, visitingscholars at Wharton’s Sol C. SniderEntrepreneurial Research Center, believethey have a strategy that can provideinvestors with an extra edge frominvestments that prove to be profitable,and perhaps take the edge off some ofthe losing ones.In a paper pending publicationentitled, “Should a Venture CapitalFund Act More Like a ‘Venture HedgeFund?’” they propose that venture investorsconsider a strategy that someinvestors routinely use in the publicmarkets: Hedge. They admit thatthere could be legal and ethical issuesinvolved in the process, but havingexamined numerous legal cases and lawreview articles, they conclude that theseissues are not insurmountable.Typically, successful venture capital-backedcompanies act as disruptiveforces in their industries. The freshlyconceivedproducts or services theypromise to bring to the market threatenthe entrenched position of an establishedcompetitor, causing any publiclytradedrival’s stock price to decline. Inthat situation, a put option – which isthe right, but not the obligation, to sellstock at a certain price by a certain date– acquired on the competitor’s stockwould be a tool to capture profits thatare in addition to those obtained fromsales of the new product or service, thetwo authors say.The owner of a put option is bettingthat the option will go up in value asthe underlying stock goes down in value;he or she can make money either byselling the option or trading the stock atan opportune time. “Disruptive investmentstend to not be as valuable as theyshould be, and we have found a way tomake them more valuable,” Hilliard, anentrepreneur-turned-venture capitalist,said in an interview. Baden-Fuller, hisco-author on the paper, is a professor ofstrategy at Cass Business School of CityUniversity in London, England.“This paper will make the case thatventure capital partnerships can increase(internal rates of return) and cash-oncashreturns by acting more like venturehedge funds [a term trademarked byHilliard]. Just like hedge funds, venturecapital partnerships should identify opportunitiesto invest in short positionsthat relate to their long positions so asto increase returns from profitable investments,”Hilliard and Baden-Fullerwrite. “By making a profit on the shorttrade, the venture capitalist is able torecapture from the market some extraprofits that would otherwise be foregoneby their portfolio investment.”In 1987, when privately-heldPhoenix Technologies announced itwas planning to launch a productthat would disrupt Adobe’s postscriptprinter technology, Adobe’s stockdropped 36% over a two-month period.“Investors in Phoenix Technologiescould have increased their return bypurchasing at a suitable time a put onAdobe’s stock,” the authors write.Revisiting People ExpressIn the early 1980s, each of 24 announcementsby the discount airlinePeople Express to enter new domesticroutes in the United States boosted theairline’s stock and depressed stocks ofits competitors. The fall in any givenincumbent’s stock price was aboutfour times larger than the gain in stockprice experienced by People Expressat the time of the launch. Hilliard andBaden-Fuller write: “This suggests thatthe potential gain from trading put options(or some equivalent derivative)may be larger than the potential gainsfrom the discounted cash flow of theinvestment itself.” Although PeopleExpress eventually went out of business,its investors still could havemade money had they made simultaneousfinancial plays on its competitors,the authors say.They also cite two wider studies ofthe business and stock-price impactof research and development as wellas new-product announcements. Onestudy, from 1996, examined 106 an-28. S U M M E R 2 0 0 4 . K N O W L E D G E @ W H A R T O N

nouncements of changes in R&D activitiesby firms from 18 industries andconcluded that where R&D activity“was characterized as generating possiblestrategic substitutes to incumbent firms’products,” the incumbents experienced“statistically significant reductions instock market value” while “the announcingfirm experienced significant, positiverises in market value.”A 2002 study looked at 384 newproduct announcements from 39industries and came to a similar conclusion.Where a new product launchannouncement was viewed as a strategicsubstitute for an incumbent product,the incumbent experienced negativeand statistically significant reductions inits stock market value within a narrowtwo-day window.All this suggests to Hilliard andBaden-Fuller that venture capitalists’financial strategies need to be as innovativeas the companies in their portfolio.“Larger companies are very sophisticatedin managing their money; venturecapitalists often operate by the seat oftheir pants,” Hilliard said.But can this strategy – of buyingput options which is equivalent toshort-selling the stock of companiesmaking rival products – run afoul ofinsider trading regulations that courtsand regulators sometimes have appliedto people who seem to be outsiders?Would venture investors who tryit invite charges of trading on whatregulators might consider is material,non-public information? After all, theinvestors can contemplate short-sellinga rival company’s stock only becausethey come to know of the competitivepotential of their own company’sproduct before that becomes publicknowledge. Might some regulators andcourts construe this as trading in insiderinformation even though the ventureinvestors who trade in the stock of therival company are not really its insiders?It is a concern Hilliard and Baden-Fuller anticipate, investigate and dismiss.“Not every scholar in the worldwill agree on every point, but there is aclear preponderance of case law and lawreview articles outlining guidelines oneshould follow,” Hilliard said.Case law and literature indicate thatthe strategy is legally sound if the investorswho adopt it – and the companiesthey invest in – take care not to haveany relationship, direct or indirect, withthe public company in whose stock theinvestors are buying options, the authorssuggest. Also, investors using thisstrategy must make sure they are notmisappropriating information they haveMight some regulators and courts construethis as trading in insider informationeven though the venture investors whotrade in the stock of the rival companyare not really its insiders?gained from their affiliations with theirown portfolio companies. That secondissue, the authors say, is best addressed ifthe investors request explicit permissionto use such information as part of theinitial investment terms sheets they offertheir companies.“The terms sheet and the documentsspun out of it fundamentally define therelationship between the company andthe investor – the investors’ rights, preferencesand permissions. By requestingthis explicit permission at the time ofthe investment, you have preserved theopportunity to take advantage of an arbitrageopportunity later, if one presentsitself. The time to get such permission isbefore writing the check,” Hilliard said.Such derivative strategies improvereturns for venture capital investments.Explains Baden-Fuller: “Entrenchedcompetitors often react to disruptiveinnovations by cutting prices, which inturn reduces the profits available to theinnovating company and discouragessuch innovations, even socially desirableones. This discourages investors frominvesting in disruptive innovations.Our paper shows how investors canovercome these disincentives to investin disruptive innovations by recapturingthe profits that would otherwise beforgone in the absence of our strategy.”Eli Whitney’s MissedOpportunityEli Whitney, the inventor of the cottongin, “would have made exceptionalprofits if he had abandoned his attemptsto patent the machine and insteadfocused attention on investmentsubstitutes by buying up land suitablefor raising cotton, which at the timewas trading at very low prices. Our proposedstrategy for investors is an applicationof a similar investment substitutestrategy,” Baden-Fuller adds. “Therewill be cases where the options tradewill allow projects to be financed thatcould not be financed otherwise, exceptperhaps by government subsidy.”Any estimates of extra returns fromusing hedging strategies “must factorin risks and transaction costs,” he says.“Stock prices of companies can moveup when market experts expect them tomove down. There are carrying costs toput options.”But Hilliard and Baden-Fuller writethat possession of “asymmetric infor-Continued on page 33K N O W L E D G E @ W H A R T O N . W H A R T O N A L U M N I M A G A Z I N E .29

Next Up at Wharton School Publishingwww.whartonsp.comSeeking Fortune at the Bottom of the PyramidIn a new book from Wharton School Publishing, author CK Prahalad argues for a moreinclusive capitalism.R E P R I N T E D F RO M K N O W LE D G E @ W H A RTO N < H T T P : / / K N O W LE D G E . W H A RTO N . U P E N N . E D U>To experienced marketingmanagers in the world’slargest multinational companies,it is perfectly obviouswho their target marketaudiences are: The developed worldand upper and middle class residentsof the developing world. The rationaleis simple: these are the customers whodemand and can afford costly productsand services, who appreciate advancesin technology and who provide intellectualexcitement to managers trying tocapture their business. The world’s poor?They are better served by governmentsand non-profit organizations. Selling tothem just isn’t worth the effort.Or is it?C. K. Prahalad, professor of corporatestrategy at the University ofMichigan Business School, has anentirely different perspective. In hisbook, The Fortune at the Bottom of thePyramid: Eradicating Poverty throughProfits, Prahalad argues that multinationalcompanies not only can makemoney selling to the world’s poorest,but also that they must undertake suchefforts as a way to close the growinggap between rich and poor countries.The book, scheduled for publicationthis summer, is one of the first volumesto be offered by Wharton SchoolPublishing, a new imprint resultingfrom the collaboration of the WhartonSchool with Pearson Education.At the core of Prahalad’s argumentfor targeting the world’s poorest as apotential market is the sheer size of thatmarket – an estimated 4 billion peopleconstituting two-thirds of the world’spopulation. More importantly, the marketwill grow to an estimated 6 billionpeople within 40 years because the bulkof the world’s population growth is occurringamong the poor.Despite the fact that these peoplesubsist on annual per capita incomesof less than $1,500, this “bottom ofthe pyramid” represents a multi-trillion-dollarmarket. Taken together,nine developing nations – China, India,Brazil, Mexico, Russia, Indonesia,Turkey, South Africa and Thailand– have a combined GDP that is larger,in purchasing power parity, than thecombined GDPs of Japan, Germany,France, the UK and Italy. The bottomof the pyramid, Prahalad says, is “thebiggest potential market opportunity inthe history of commerce.”Prahalad first became interested inthis issue in 1995. He wondered, forexample, how business can be so goodat developing technological resourcesat the same time that the world hasso many people who are so poor. Hisown experience traveling around theTake advantage ofWharton School Publishingalumni discounts - visitglobe and consulting with multinationalsprompted him to begin lookingfor evidence that large companiescan make a significant impact ondeveloping nations.A central point in The Fortune atthe Bottom of the Pyramid is that theeffort to help the poorest people canbe successful across different countriesand different industries ranging fromhealth care and finance to fast-movingconsumer goods and energy. The exceptions,Prahalad notes, are countriesthat are essentially lawless, like Somaliaand the Congo, and industries thatare among the most basic, particularlysome of the purely extractive industriesthat employ many people but have littleincentive or ability to empower them.Otherwise, Prahalad says, his approach“can work 90% of the time.”He expects this book to resonatewith a wide audience, including executivesat large companies, business schoolprofessors, students, and governmentand development agencies. “This is thefirst time that someone has put togethera coherent point of view on why theprivate sector can be an integral partof development and social transformation,”he says. He notes, too, thathe has served on a United NationsCommission under U.N. Secretary-General Kofi Annan to examineprivate sector developing. The commissionis scheduled to issue its reportsoon. Already, he says, “this kind ofthinking is having an impact.”30 . S U M M E R 2 0 0 4 . N E X T U P A T W H A R T O N S C H O O L P U B L I S H I N G

Profits are not the only reasonPrahalad urges multinational companiesto devise strategies, products andservices for the bottom of the pyramid.Citing U.N. figures, Prahalad pointsout that the richest 20% of the worldaccounted for about 70% of totalincome in 1960. In 2000, the richesthad 85% of total income whilethe fraction of income flowing to thepoorest 20% of the world fell from2.3% to 1.1%. Strategies aimed atthe bottom of the pyramid will, bynecessity, create jobs and improveincomes among those people, helpingslow and possibly even reversethe widening income gap. Certainlysuch strategies can help avert socialdecay, political chaos, terrorism andenvironmental degradation.One of the biggest reasons that multinationalshave avoided the bottom ofthe pyramid is that marketing to thepoorest isn’t easy. They usually lackregular cash flow, have little access tocredit and live in rural villages or urbanslums that make traditional methods ofadvertising and distribution difficult, ifnot impossible. Most of the people atthe bottom of the pyramid are part ofan informal economy in which they donot hold legal title or deed to their assets.Thus, effective strategies for reachingthese people will require remarkablydifferent approaches, several of whichare described in case studies in the bookand summarized below.Salt, Soap and HindustanLever Ltd.Hindustan Lever Ltd., one of Unilever’slargest subsidiaries, has been amongthe most effective consumer brandcompanies in reaching the poorest ofthe poor in India and other developingcountries. It is India’s largest exporter ofbranded consumer products and ForbesGlobal has named it the “best consumerhouseholds company worldwide.” Thecompany’s experience marketing two ofthe most basic consumer staples – saltand soap – illustrates some of the innovativeapproaches necessary to sell successfullyto the bottom of the pyramid.In the mid-1990s, HLL’s PopularFoods division recognized the growingpotential for branded staples in Indiaand launched its Annapurna Salt brandin a test market in Andhra Pradesh.Positioned as “pure salt,” Annapurna ’stest had only limited success since consumersconsidered most salt to be pure.Additionally, Annapurna was up againsta strong competitor, Tata Salt, whichhad already established the purity claim.Two years later, however, theIndian government began a concertedeffort to combat an insidious healthproblem called Iodine DeficiencyDisorder, one of the world’s leadingcauses of mental disorders, includingretardation and lowered IQ. In Indiaan estimated 70 million people wereafflicted while another 200 millionwere at risk. Since virtually everyone,even the poor, eat salt regularly, iodizedsalt was widely recognized asthe best means of providing sufficientiodine. In 1997, the Indian governmentbanned the sale of non-iodizedsalt. The problem, however, was thatstandard methods of iodizing salttended to be ineffective because theiodine leached out over time, especiallyin India’s primitive storage andtransportation conditions.Hindustan Lever Research Center,one of Unilever’s five major globalresearch facilities, began investigatingways to keep the iodine content of saltintact in India ’s difficult conditions.Rather than chemically encapsulatingiodine with a protective coating aroundboth it and the salt particle, researchersdeveloped a method of protecting theiodine at the molecular level which keptit intact until released in the very acidicenvironment of the human stomach.With the technological problemsolved, HLL turned its attention tothe marketing of the reformulatedAnnapurna. The target audience amongthe poor included mothers between 25and 40 years of age who are responsiblefor household cooking and making purchasedecisions. The message was thatthe “stable iodine” in Annapurna salt“doesn’t get lost” and would help keeptheir families healthy.Although Tata Salt remains the dominantbrand with 19% of the market,HLL is now a close second with 14% ofthe market and is the dominant brandin South India.HLL used a somewhat similar strategyof finding and marketing a healthbenefit to increase its sales of soap inIndia. While AIDS and SARS havegotten much of the press ink in recentyears, diarrhea, which ranks thirdamong global killers, has gotten littleattention. Ironically, while it is exceedinglydifficult to prevent and cure respiratoryinfections and AIDS, most casesof diarrhea can be prevented simplyby washing hands with soap. In India,which contributes 30% of all diarrheadeaths in the world, surveys indicate thateven though 95% of Indian householdsown soap, only 30% use soap daily.HLL had long advanced healthclaims for the century-old Lifebuoybrand soap in India. The soap as originallyformulated had a strong carbolicsmell associated with cleanliness. Butthe health advantage waned over timeas competitors came up with their ownhealth claims while adding a beautifyingelement to their sales pitch, mostnotably through more floral fragrances.To maintain its dominance of the soapmarket, HLL reformulated Lifebuoy, givingit a floral scent and switching frommanufacturing a “hard” bar to milledsoap. The change made a bar last longerand produce more lather. The companyalso added the antibacterial Triclosan tothe formula, and found a price point thatpoor consumers could afford by adoptinga different approach to pricing than theroutine “cost plus” formula.With its new formulation in hand,HLL had to figure out how to sell theproduct to its mostly rural customers.The company faced two hurdles. First, ithad to change the behavior of its potentialcustomers, who associated soap withN E X T U P A T W H A R T O N S C H O O L P U B L I S H I N G . 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the removal of visible dirt. If their handsdidn’t appear dirty, then there was noneed to use soap. The potential presenceof millions of invisible infectious organismswas not part of their hand washingcalculus. The second hurdle was thatmost of the potential customers lived invillages without access to such mass mediaas radio and televisionThe solution HLL hit upon was tohire two-person “facilitator” teams to gointo village schools and initially teachyoungsters between the ages of 5 and 13about the problems that can be causedby invisible germs and how they canbe largely eliminated by washing handswith soap. Parents and village elders arethen approached with similar messages.Based on initial data, HLL’s soapsales are growing not only in areas inwhich the company initiated its teammarketing approach but also in otherparts of India. Managers are convincedthat providing their soap to the poorachieves product differentiation andtaps into an opportunity for growththrough increased soap usage.CEMEX: Credit andConcreteCommercial credit historically has beenunavailable to the very poor. Yet economistsmaintain that commercial creditis a central component of any marketeconomy. Access to credit in the UnitedStates has allowed even people of modestmeans to make major purchases,including houses, cars and educations.CEMEX, Mexico ’s largest cementmanufacturer and the third-largestcement company in the world, is atechnologically sophisticated firm witha competitive advantage derived froma distribution infrastructure that monitorsthe movement of every truck inreal time to insure on-time delivery ofcement. The company sells cement totwo distinct markets: the constructionindustry and the “do-it-yourself” customer.During the Mexican economiccrisis in 1994 and 1995, CEMEXfound its sales to the construction industrytumbled as much as 50% whilesales to the do-it-yourself market fellbetween 10% and 20%. It decided thento reduce its reliance on the cyclicalconstruction industry by placing moreemphasis on the do-it-yourself market.The company realized the key differencebetween the two markets was theaverage revenue per customer. Smallbut steady sales to individuals earningless than $5 a day could produce veryimpressive revenues.Market research showed that most ofthe cement sales to the do-it-yourself marketwere for the construction of one room,either an addition to an existing structureor the start of what would eventuallybecome a family’s house. It was obviousthat if potential do-it-yourself customershad access to credit, they could undertakeconstruction sooner and more often thanif they had to amass the entire purchaseprice of the cement at one time. In 1998CEMEX launched an experimental programcalled Patrimonio Hoy – Savings/Property Today – intended to enable verypoor people to pay for building materialsand services to upgrade their homes.The program initially targeted neighborhoodsin which the average dailyfamily income was about $5 to $15.Managers were sent into the neighborhoodto enroll women – traditionallyresponsible for saving and purchasingwithin a Mexican household – ingroups of three to form a “socio group.”The three members of each group agreeto take turns collecting small paymentsfrom each of the members that will besaved toward making cement purchases.Once the socio is formed, they are visitedby a technical advisor or architectwho, for a small fee, helps the membersdecide what will be the next room, howit will be laid out and how much materialwill be needed.At the end of five weeks PatrimonioHoy makes its first delivery of rawmaterials, valued at ten weeks worth ofcollections. Thus the program extendsfive weeks of credit to the socio members,further building credibility withinthe neighborhood. If the socio membersremain committed to the program, thecredit they are extended in the form ofas-yet-unpaid-for raw materials increases.In the second 10-week period, forexample, the raw material is deliveredafter the second week, in effect grantingeight weeks of credit.Margins to CEMEX distributorsparticipating in the Patrimonio Hoyprogram typically are smaller – 12% insome cases – than the 15% that is theaverage in the business. But distributorsare nevertheless enthusiastic becausethose smaller margins are more thanoffset by the steady demand for cementand other raw materials like sand andgravel. And while conducting businesson a credit basis with a low-incomepopulation with no regular stream ofpaychecks may appear riskier than traditionallending models, PatrimonioHoy managers contend that the risksare in reality very low. The default rateso far has been less than one half ofone percent, a consequence in part ofthe group commitment of socio members.After three years of operation,Patrimonio Hoy had 36,000 customersand over $10 million in extendedcredit. The customer base is reported tobe growing at the rate of 1,500 to 1,600per month.Connecting to the PoorTechnological advances, particularly incomputing and communicating, seemto be taking place almost entirely in thedeveloped world. Granted, India andsome of the Caribbean islands are providingthe staffing for sophisticated callcenters and India notably has a thrivingsoftware development industry. Butthe employees of those enterprises aremostly well-educated and come fromthe middle-class or affluent segments oftheir populations. The inhabitants ofurban slums and rural villages have notbeen targeted as a market for technologicallysophisticated products or services.Yet when technology has been madeavailable to them, Prahalad has foundContinued on page 3332 . S U M M E R 2 0 0 4 . N E X T U P A T W H A R T O N S C H O O L P U B L I S H I N G

Seeking Fortune continued from page 32 The Value of Experience continued from page 22residents of the bottom of the pyramid to be readily acceptingof technology. In Bangladesh, women entrepreneurs withcell phones do a brisk business renting out the phone bythe minute to other villagers. Indeed, Prahalad finds in thespread of wireless devices proof of the size and viability of themarket at the bottom of the pyramid. By the end of 2003,for example, China had an installed base of 250 million cellphones. The market for wireless devices in India stood atabout 30 million installations and was growing at the rate of1.5 million handsets per month.Where connectivity exists it is resulting in major efficienciesin traditional occupations. Within three months of theinstallation of personal computers in some Indian villages thefarmers there were making decisions about planting basedon futures prices being quoted on the Chicago Board ofTrade. In Kerala, India, satellite-based images of fish shoalsare downloaded on village PCs and read and interpreted bywomen who then direct their husbands where to fish. Thehusbands, after a day of fishing, use their cell phones tocheck prices at various ports along the coast to obtain thehighest bid for their catch.To Prahalad, all these examples are evidence that there aremarket solutions to the problem of poverty. The task that hesets out for multinational corporations is to break out of thedominant logic that views the world’s poor as a distractionto be aided by governments and non-profit organizations.Involvement in markets at the bottom of the pyramid willchallenge many of the assumptions that managers of largecompanies have developed over the years, ranging from packagingand pricing to marketing and distribution. The resultof such efforts will not only be profitable, both for the largecompanies as well as the consumers, but it might also contributesolutions to the serious political and environmentalproblems confronting the developed world. ◆To purchase this book or learn more about WhartonSchool Publishing, visit .A New Strategy continued from page 29mation shades the risk in favor of the venture investor analogouslyto the way that card counting adjusts the odds inblackjack.” They also maintain that acquiring put optionsin transparent markets may be inherently less risky than anyunderlying venture investments made by the venture fund inthe potentially disruptive new company itself.As an angel investor, Hilliard feels comfortable enoughwith the strategy that he has requested such trading rightsin two recent terms sheets, including one concluded latelast year with a Pennsylvania-based software company in thewireless market. “There were no concerns from the otherside of the table; it was a complete non-issue,” Hilliard said.Whether that company proves to upset the market leadersremains to be seen. As Hilliard noted: “You never know.” ◆workers about nuts-and-bolts aspects of a business, everything fromaccounting and time-management to figuring out with a systemhow to know just when each worker would come and how muchshe would produce. Nolte said she is grateful that she found theGCP students, that she hopes it will be a turnaround for her workand for other non-profits around Latin America.“We’re improving our financial forms, and we will start workingwith the organic marketplace, which was one of the most importantrecommendations,” said Nolte. “We had a team that understoodthe benefits and difficulties of an enterprise with social responsibilityfrom the marketing and financial perspective.”For most of the for-profit Global Consulting Practicum projects,the firms want the student teams in for a stated time with astated consulting purpose, fitting quite well within the five monthsor so allotted for the course. But for the Mercomujer project, thestudents have decided to stay on to see how they can help on an ongoingbasis.“When you work with a non-profit, you get really into it.You get an intrinsic emotion. It grows itself organically,” said Lin.“When we first got there, they didn’t know if they were makinga profit on products or not. Were they charging enough for theirproduct? We asked them about capacity and they didn’t know whatcapacity was. They were dealing with eight different communitiesand each has subcommunities with different holidays and farmingschedules.“But that was the exciting thing. The GCP provided us with areal-life situation, not just some classroom work,” she said. “It willbe great to help our partners succeed long after the project itselfis over.” ◆Freelance writer Robert Strauss is a frequent contributor to theWharton Alumni Magazine.Brainy Winners continued from page 9Business 2.0 magazine. Entrepreneur John Osher, a formerWharton Entrepreneur-in-Residence, also served as a judge.More than 300 volunteers served as judges for earlier stagesof the competition and as mentors for the participants.WEP’s Cieri said the hefty number of participants, fromstudents to alumni and friends of Wharton, distinguishedthis year’s competitions from prior ones. “We had a 45 percentincrease in the number of judges,” she pointed out.This year’s competition also scored several firsts.For the first time, a team from Wharton West — ILAerospace Technologies — and two undergraduate teams— Distributed Resource Imagery and Integrated BiometricSolutions — made it to the finals. ◆To find out more, visit Get It Started at .W H A R T O N A L U M N I M A G A Z I N E .33

Alumni Association UpdateAnother Year!DAVID N. FELDMAN,ESQ., W ’82, L’85DEAR FELLOW ALUMNI:Time certainly zooms by.Your Alumni AssociationBoard of Directors has hada busy year, and I wouldlike to take a moment tobriefly outline a few of ourkey achievements. There isstill much to be done, butwe have made much progressin our mission – onbehalf of Wharton’s 77,000alumni, to build and growsimply the greatest businessschool alumni network.U.S. Alumni Conference.We have made significantprogress in planning a majorGlobal Alumni Forum in theUnited States, to complementthe extremely successful internationalforums.New Clubs. This yearwe have added the WhartonClub of Quebec, WhartonOut For Business, and nowboast a club network of dedicatedWharton alums. Inaddition to the traditionalgeographically based Clubs,we also are establishing newways for alumni to connectthrough “affinity”-basedclubs such as the WhartonPrivate Equity Networkand Wharton Health CareNetwork. See below formore information on thePrivate Equity Network,known as “WPEN.”Alumni LeadershipConference. In May, weheld a tremendously successfulAlumni LeadershipConference on campusduring reunion weekend.At this meeting, a group ofClub Presidents and alumnileaders from around theworld participated in workshopsand brainstormingsessions and heard from keyadministration figures. Allwent away with a renewedsense of purpose and newideas about how to buildour Wharton alumni networkat the Club level.Stronger Connectionswith Students. More thanever before, alumni arecoming back to campusthrough various programswhich encourage them toattend conferences andgive talks. Our WhartonColloquia, each a onehoursession with newWharton undergrads duringorientation on topics suchas “Stock Market 101,”“Dressing for Success,”“What is Leadership,”“How to be a CEO by age40” and “Effective BusinessNetworking,” will be expandedgreatly this year. Wehave also made great progressin assisting MBA studentclubs’ efforts to organizealumni advisory boards.Annual FundParticipation. Continuedgrowth of the WhartonAnnual Fund is tremendouslyimportant to maintainingthe School’s world-classreputation for business education.Building the Fund istherefore an important partof the work of the AlumniAssociation Board. Duringthe past year, we continued towork closely with the Schoolto focus on ways to increaseour participation rate. Wewill soon be delivering a seriesof recommendations designedto foster a greater sense ofconnection among those whohave not previously donatedto the School.Alumni StakeholderSurvey. We have been workingclosely with the Dean’sOffice to develop a comprehensivesurvey of our alumni.We believe the resultsof this survey will be veryhelpful in improving ourresponsiveness to the needsand interests of our alums.My thanks go out toour dedicated AlumniAssociation Board members,and especially our President,Vige Barrie, CW’74,WG’76, for all their hardwork this past year. I alsooffer special thanks toAssociate Dean for ExternalAffairs Steve Oliveira,Director of AlumniRelations and AnnualGiving Leslie Arbuthnot,and their fantastic staff (especiallyDawn Downing!)for providing us with a trulyunprecedented level of supportand commitment.As always, if you are currentlyan active member ofWharton’s alumni network,thank you for your dedication.If you are interested ingetting involved and wouldlike to find out more informationabout volunteer opportunities,please contactthe Alumni Affairs office atalumni.affairs@wharton.upenn.edu. There are manyways in which you can makea difference. Start by goingto to find a Whartonalumni club in your region oryour area of interest.I look forward to continuingour dialogue withyou in this column duringthe next year. Please feelfree to call or e-mail medirectly with any questions.Thank you for your supportof the Wharton AlumniAssociation.Sincerely,David N. Feldman, Esq.,W’82, L’85Chairman, WhartonAlumni Associationdfeldman@feldmanweinstein.com34. S U M M E R 2 0 0 4 . A L U M N I A S S O C I A T I O N U P D A T E

WhartonPrivate EquityNetwork:A MODEL FOR AFFINITYALUMNI CLUBSThe Wharton PrivateEquity Alumni Network(“WPEN”) was formedin 1998 for Wharton andUniversity of Pennsylvaniaalumni working in thePrivate Equity industry.Its members include bothGeneral Partners andLimited Partners investingin leveraged buy-outs,growth capital, mezzanine,venture capital, distressedand secondaries. The goalsand objectives of WPENare networking, education,awareness and interaction forthe thousands of Whartonand UPenn alumni in thePrivate Equity industry.The WPEN is currentlyled by co-PresidentsDean Miller ,WG’99, aPartner with venture capitalfirm PA Early Stage, andRob Newbold, WG’99, aManaging Principal withthe buyout firm GrahamPartners. The organizationwas conceptualized andformed back in 1998, ledby the efforts of PraveenJeyarajah, WG’95, AmarishMehta, W’95, Ben Terk,WG’99 (a current memberof the Wharton AlumniAssociation Board ofDirectors and currentChairman of the WPEN),and Steve Sammut,WG’84, Senior Fellow andLecturer in the WhartonSchool’s Department ofManagement.From several small-scaleevents and a geographicallylimited membership,the WPEN has grown toover 500 members withregular events in New YorkCity, Philadelphia, and SanFrancisco. The expansion ofevents into additional U.S.cities, as well as several internationallocations, is underway.In addition to localevents, the WPEN holds adinner every year the nightbefore Wharton’s studentorganizedPrivate EquityConference in Philadelphiain late January.The WPEN looks tostrengthen the bond betweenWharton Alumniworking at all levels in thePrivate Equity industry.Relationships establishedand fostered through theWPEN have helped toadvance the careers of themany alumni in the industryand, through outreachwith current Whartonstudents, have increasedthe number of Whartongraduates entering the field.All alumni working in thePrivate Equity industryare welcome to join, soplease visit the website at.Club Spotlight:THE WHARTON CLUB OFSOUTHERN CALIFORNIAThe Wharton Club ofSouthern California (WSC)continues to be one of themore active Alumni Clubs,with an ongoing slate ofsocial and educational activities.In late March, theClub held a private equityevent that brought togetherprominent Los Angeles privateequity investors for anengaging panel discussionon deal-making in SouthernCalifornia. Prominent lawfirm and sponsor Latham& Watkins moderatedthe panel, which includedpartners from LeonardGreen & Partners, ApolloAdvisors, Oaktree CapitalManagement, Bison CapitalManagement, YucaipaCorporate Initiatives Fundand Gores TechnologyGroup. WSC also recentlyhosted an event on estateplanning and asset protectionfor Baby-Boomers andGeneration X-ers.The Club has moreevents planned for thissummer, including aResume Review Workshopon June 23, where WhartonWest’s Career ManagementAdvisor, Jennifer McElrath,lead participants throughresume tips and suggestions.In addition, there will be adinner party at the JonathanClub on the Santa MonicaBeach on August 3. Formore information on WCAevents or for club officercontact information, go to.On the Roadand Lookingfor SomeWhartonConnections?Remember that as aWharton alum, you are alwayswelcome at local Clubevents, even when you areaway from home. If youknow you’ll be traveling andwould like to meet fellowalumni, be sure to checkout to seeif there are any plannedevents in the city you arevisiting. New York andPhiladelphia have especiallyactive Clubs with frequentevents, but many otherClubs hold events and welcomeyou to participate.(See Club Presidents andContacts list on page 37.)A L U M N I A S S O C I A T I O N U P D A T E . W H A R T O N A L U M N I M A G A Z I N E . 35

WhartonWomen inBusiness:UPCOMINGCONFERENCE AND CALLFOR NOMINATIONSThis year marks the 25thanniversary of WhartonWomen in Business(WWIB). Decades ago,the concept of women inbusiness was heralded witha caption of “AlternateLifestyles” in a Whartonnewspaper. We have comea long way since those earlydays, and today WWIBis one of the largest clubsat Wharton.This year’s WWIBconference on November4-5 in Philadelphia aimsto celebrate WWIB’s 25thanniversary by taking theconference to new heights.The conference will be awonderful networking opportunityand will featurediverse panels and workshopsto address alumniand students’ most pressingconcerns. Come hearremarkable stories fromtruly inspirational womenwho have courageouslyled, scaled new heights inchallenging environments,chosen unconventionalpaths, redefined success,and achieved personal fulfillment.The conferenceplanning team is workingclosely with Alumni Affairs,the Wharton Women’s TaskForce, and other areas ofWharton administration tomake this year’s conferencea “Must Attend” event.As an alumna, you havethe opportunity to shapethe content of this year’sconference. Please completeour two-minute survey atby August 2, 2004. TheConference Committee willuse the results of this surveyto better tailor this year’sconference to your interests.To show our appreciationfor your time, you will automaticallybe entered intoa raffle for a $25 gift certificateto Amazon.com.Every year at the conference,WWIB pays tribute tothe tremendous life achievementsof Ms. KathleenMcDonald, WG’78, byawarding the KathleenMcDonald DistinguishedAlumna Award to a deservingWharton Alumna. ThisAward was created in 1995to highlight the accomplishmentsof Wharton alumnaeand to build a strongerbond between Whartonalumnae and current students.Recipients of theAward serve as role modelsfor Wharton Women bycreating a supportive environmentfor women inbusiness, achieving professionalexcellence, and demonstratinga commitment toa balanced career, communityinvolvement, and otherpersonal pursuits.Candidates are nominatedby the Wharton communityand selected by anelecting committee becauseof their many outstandingpersonal and professionalachievements, meeting thefollowing criteria:1. A nominee must befemale and a recipient ofthe MBA degree from TheWharton School2. A nominee must be agraduate of at least fiveyear’s outstanding3. A nominee should serveas a role model for WhartonWomen through efforts tocreate a supportive environmentfor women in business4. A nominee shoulddemonstrate professionalsuccess and exhibit strongpotential for continued careerdevelopment5. A nominee should demonstratea commitment tobalancing her career, communityinvolvement, andother personal pursuits.To nominate someonefor the WWIB KathleenMcDonald DistinguishedAlumna Award, or tofind out more aboutthis award, please visit.For more informationabout this year’s WWIBConference, or if you wouldlike to get your companyinvolved with this year’sconference as a sponsoror career fair participant,please contact KimberlyPalermo, Co-Chair forthe WWIB Conference,at kpalermo@wharton.upenn.edu. If you havesuggestions for panelists,or if you would like tobe a panelist at this year’sconference, please contactAyesha D’Souza, Co-Chairfor the WWIB Conference,at ayeshad@wharton.upenn.edu.For information aboutthe Wharton Women’sTask Force, pleasevisit their website at.36. S U M M E R 2 0 0 4 . A L U M N I A S S O C I A T I O N U P D A T E

Club Presidents and ContactsUNITED STATES CLUBSALBANYRichard Cunningham, WG’62Phone: 518.273.3822ARIZONABob Rogers C’74bobr@mcmurry.comATLANTABruce A. Hauptfuhrer, WG’94mainleader@aol.comAUSTINChristine Schiller Grable, WG’00christine_grable@dell.comBALTIMOREGregory Paranzino, W’86pennbalt@aol.comBOSTONJennifer Nichols, WG’91jennifer.nichols.wg91@wharton.upenn.eduCALIFORNIA (NORTHERN)Jeffrey L. Goodman, WG’96info@whartonclub.comCALIFORNIA (SAN DIEGO)Ellen Chang, WG’98pennwhartonsd@yahoo.comCALIFORNIA (SOUTHERN)Meesh Joslyn, W93 WG98whartonhelp@yahoo.comCHICAGOOlga Spaic, WG’97whartonchicago@yahoo. comCLEVELANDHerb Braverman, W’69Phone: 216.781.1212COLORADOShiv Chakrabarti, Eng’00shiv@pennwharton.comCOLUMBUSDon Strench, WG’82WhartonClub@aol.comDALLAS/FORT WORTHDoug Black, WG89doug.black@comcast.netFLORIDA — CENTRALMike Cameron, WG’78whartonclubfla@aol.comFLORIDA — SOUTHBill Britton WG’89billbritton1@msn.comFLORIDA — GREATERTAMPA BAYJack Henard, WG’64jhenard@meridiantampa.comHARTFORDRalph E. Little III, WG’87Phone: 860.572.0149HOUSTONFred Wolgel, WG’85fwolgel@houston.rr.comLONG ISLANDAdam Weisman, WG’78Phone: 516.935.9000MICHIGANJay Hansen, WG’85jhansen@nobleintl.comMINNESOTAJanet Kinzler, WG’92janet.kinzler.wg92@wharton.upenn.eduNEW JERSEYJonathan Perelman, W’76jperelman@whartonnjclub.comNEW YORKKenneth Beck, WG’87arline@whartonny.comNORTH/SOUTH CAROLINAJoe Kenny WG’94joe.kenny@wachovia.comPHILADELPHIAAdam J. Fein, Gr’97PORTLANDTim Gillette, WG’88TGillette@pkw.comSEATTLEW. Alexa Chiang, C’92penninseattle@hotmail.comVERMONTThomas S. Leavitt, WG’82tleavitt@mbvt.comWASHINGTON, DCAlan Schlaifer, W’65ANSchlaifer@aol.comINTERNATIONAL CLUBSARGENTINAEzequiel A. Huergo, WG’96ezequiel.huergo@prositio.comAUSTRALIA/NEW ZEALANDPeter McNamara, WG’95pdm@liquidvision.comBAHRAINAnmar Al-Arrayed, W’89ace10@batelco.com.bhBELGIUMJoseph Sadis, WG’75Joe.sadis@be.ey.comBRAZILLuciana Rossi Cuppoloni, WG’97luciana.cuppoloni.wg97@wharton.upenn.eduCANADA — TORONTORohit Gupta, WG’96rohit.gupta.wg96@wharton.upenn.eduCANADA — QUEBECVargha Moayed, WG’94vmoayed@richter.caCHILEAbel Bouchon, WG’94abouchon@lanchile.clDENMARKErik Winther, Gr’85erik.winther@dakocytomation.dkDOMINICAN REPUBLICJose Miguel Bonetti, W’61jose.bonetti.wg61@wharton.upenn .eduECUADORHumberto X. Mata, WG’97hmata@ecua.net.ecEGYPTAladdin Saba, WG’86asaba@hermes.efg-hermes.comEL SALVADORErnesto Sol Meza, WG’61Phone: 503.271.6001FINLANDPatrik Sallner, WG’99sallner@yahoo.comFRANCEFrederic D. Dubois, WG’73f.dubois@sante-investissement.frGERMANY/AUSTRIAWolfram Nolte, WG’77wolfram.nolte.wg77@wharton.upenn.eduGREECEChristian C. Hadjiminas, WG’83c-hadjiminas@efagroup.grHONG KONGGeorge Hongchoy, WG’91george.hongchoy.wg91@wharton.upenn.eduINDIAGautam Chand, WG’92GautamC@instanex.comISRAELIsaac Devash, WEV’88devash@netvision.net.ilITALYOmar Collavizza, WG’01omar_collavizza@mckinsey.comLuca A. Zerbini, WG’02luca.zerbini@bain.itJAPANKeisuke Muratsu, WG’75shimanuk@mxc.mesh.ne.jpKOREAYong-Chan Ahn, WG’85ceo@aekyung.co.krMALAYSIADonald Lim, W’86donlim@kul.equatorial.comMEXICO (MEXICO CITY)Carlos F. Niezen WG’95carlos.niezen@atkearney.comNETHERLANDSSjoerd H.R. Sieburgh-Sjoerdsma,WG’95 sieburgh_sjoerd@hotmail.comNORWAYTore Borthen, WG’88tore.borthen@nordea.comPEOPLE’S REPUBLIC OF CHINA— BEIJINGJim Jin Zhang, WG’97jim_jin_zhang@hotmail.comPEOPLE’S REPUBLIC OF CHINA— SHANGHAIPhillip Wu, WG’95info@whartonshanghai.orgPHILIPPINESEmmanuel Herbosa, WG’79Phone: 63.2.753.7126POLANDAnne Kalin, WG’91wharton_poland@lynka.com.plREPUBLIC OF CHINAHarvey H.W. Chang, WG’77harvey@tcc.net.twRUSSIAGeorge Kikvadze, WG’02gkikvadze@sistel.ruSAUDI ARABIAHassan Yamani, WG’83Phone: 966.2.653.3366SINGAPOREJames Sim, WG’94sim.james@principal.comSPAINCarlos Trascasa, WG’88trascasas.carlos@bcg.comSWEDENLennart J.A. Engstrom, WG’85lennart.engstrom@telia.comSWITZERLANDMarc O. Stockli, WG’96marc.stockli.wg96@wharton.upenn.eduTHAILANDDr. Olarn Chaipravat, W’66olarn@shinawatra.ac.thTURKEYMesut Ellialtioglu, W’93mesut56@yahoo.comUKRAINEGeoffrey Berlin, WG’88gberlin1@aol.comUNITED KINGDOMYoav Kurtzbard, W’90ykurtzbard@youngassoc.comURUGUAYFabian Mendy, WG’92Phone: 598.2.96.04.63VENEZUELAJosé Luis Molina, WG’99board_whartonclubvenezuela@yahoogroups.comVIETNAMSesto E. Vecchi, W’58rusvec@hcm.vnn.vnAFFINITY CLUBSEVENING SCHOOLGary Lindauer, W’92glindauer@juno.comHEALTH CARECynthia Martin, WG’86norm.cyn.martin@att.netPRIVATE EQUITY NETWORKDean E. Miller, WG’99dmiller@paearlystage.comOUT FOR BUSINESSSteve Deitsch, WG ‘92sdeitschny@aol.comA L U M N I A S S O C I A T I O N U P D A T E . W H A R T O N A L U M N I M A G A Z I N E . 37

Global.Wharton.ConnectionsWAVEThe Wharton Alumni Virtual Experience (WAVE) offers Wharton alumni:• a password-protected, searchable alumni database, which offers full control over yourindividual information;• password-protected message boards;• career management services;• lifelong e-mail;• electronic mailing lists for alumni to create and join; and• links to information from throughout the School, including the Alumni Club Network,online publications, reunions, and alumni conferences.Visit WAVE at .Address UpdateMoving to a new location? Changing jobs? Notify AlumniAffairs at 215.898.8478 (phone) or 215.898.2695 (fax) orvia e-mail at alumni.affairs@wharton.upenn.edu.Career ServicesInterested in making a career change or researchingother job opportunities in your industry? MBA CareerManagement offers several ways to assist you. Contactthem at 215.898.4383 or online at . For information on undergraduate alumnicareer resources, call 215.898.3208.ClubsNetwork with alumni in your area, and take advantage ofopportunities to attend speaker events, seminars, and clubprograms. Contacts and a calendar of events can be found onour alumni website at .Fundraising/DevelopmentSupport Wharton’s future by making a gift to The WhartonFund. Get more involved by encouraging your Whartonfriends to do the same or by offering your marketing expertiseto the school. Call 215.898.7868, or give online at.For those interested in planned giving, contact Greg Wolcott,director of gift planning, at 1.800.400.2948 or via e-mail atwolcottg@wharton.upenn.edu.Executive EducationStay current and build on your success through coursesoffered by the Aresty Institute of Executive Education.For information, call 215.898.4560, or e-mail execed@wharton.upenn.edu. Online information is available at.AdmissionsFor undergraduate admissions information, call 215.898.7507, or e-mail Info@admissions.ugao.upenn.edu.Our website is .Children of alumni may schedule on-campus interviews bycontacting the Alumni Council at 215.898.6888.For MBA admissions information, call 215.898.3430, ore-mail mba.admissions@wharton.upenn.edu. Online, visit.For PhD admissions information, call 215.898.4877, or visit.Wharton Admit NetworkGet involved in the admissions process by interviewing prospectivestudents worldwide. Alumni volunteers should contactMBA admissions at 215.898.3430.Library ServicesAccess the wealth of resources that the Lippincott Libraryprovides to alumni. Check out the Library’s homepage at, or contact the circulationdepartment at 215.898.7566.University BookstoreWharton is everywhere – on pens, sweatshirts, T-shirts, keyrings, and more. To order Wharton insignia products, call215.898.7595, or browse through the mail order catalog featuredat .Knowledge@WhartonStay informed of Wharton research, faculty, conferences,and speakers. Browse Wharton’s free online business journal,Knowledge@Wharton, at .Knowledge@Wharton provides insight on issues rangingfrom finance, general management, and marketing to e-commerceand business ethics. The site is updated with new,in-depth features every two weeks and includes analyses ofbusiness trends and current events, interviews with industryleaders and Wharton faculty, articles on recent business research,book reviews, conference reports, and hyperlinks torelated sites.38 . S U M M E R 2 0 0 4 . G L O B A L . W H A R T O N . C O N N E C T I O N S

LeadershipSpotlightANDREW M. HELLER, WG’79Andrew Heller likes to tell the storythat the reason he went to theWharton MBA program was that anair hockey table arrived at his frathouse at Wesleyan University onthe day he had set aside to fill outhis Harvard application. “I chose tobecome fraternity air hockey championrather than write my application,”he joked.It was certainly an unlucky break for Harvard.To say Heller is a devoted alumus is an understatement.He has been a member of the Wharton Graduate AdvisoryBoard for the past nine years, chair of The Wharton Fund forthe past three and has chaired several reunions. In June andJuly, he raced around the world for the “Triple Crown” ofWharton alumni events – attending all three global alumniforums, in Moscow, Shanghai and Mexico City (along withfellow graduate board member Matt Greene, WG’89). Theglobal meetings represented just half of the six Whartonalumni events Heller attended in a two-month period.Under his leadership, Wharton Fund donors increasedfrom less than 6,000 in 2001 to approximately 7,500 in2004, and annual contributions climbed from $5.6 million toapproximately $6.5 million. The 2003 and 2004 MBA classesset new records for participation and donations. Of course,Heller doesn’t take credit for The Wharton Fund’s success.“It wasn’t me,” he said. “I greatly admire what SteveOliveira has accomplished at Wharton. I’ve loved being involvedin the Wharton Fund.”His commitment reflects his gratitude to Wharton for givinghim his start in business. “I have been extraordinarilyfortunate in my life,” he said. “I love what I do for a living,and Wharton played a huge role in my ability to accomplishwhat I have. I realized that my education and the opportunitiesit afforded me were instrumental to my success.”Born in Chicago, Heller became interested in businesswhile working for his father’s electronics distribution companyin Cleveland, Ohio. After graduating from Wharton in1979, Heller joined Deloitte Haskins & Sells as a manage-ment consultant. Then, he left to found his own company,Heller Capital, a private investment company that providesfinancing for start-up companies and acquisitions in manyindustries, as well as for a variety of real estate ventures.Along the way, he bought a medical device manufacturerand grew the business by eightfold in three years. Healso co-founded a company that originated the first mortgageover the Internet (and sold it before the dot-combubble burst).All of which doesn’t leave much time these days for airhockey – although he has an air hockey table, pool tableand a number of other “toys” in the basement of his homein McLean, Virginia.He is passionately devoted to education. “I decided in theearly 90s that education would be the focus of my charitableefforts,” said Heller, who also chaired a capital campaignthat raised millions of dollars for the Langley School, wherehis two children attended. “I believe great educational institutionswill produce our leaders of the future. ◆– R O B E R T G U N T H E RT O M M Y L E O N A R D IS T O R Y T I T L E . W H A R T O N A L U M N I M A G A Z I N E . 39