3 Insights about London Business Culture from Spring Break 2015

International Business Insights Flowed

From Eight Meetings in London

14 Huntsman Students Learned from a Ten-Day Trip There

A trip to London with 14 business students yielded a number of insights about international business. Led by Senior Lecturer Christine Arrington and Program Director Liz Allred, the group took a one-credit course Bus. 2000, Foundations of International Business.

First, it was astounding the degree to which businesspeople in London have embraced design thinking and the lean startup process. The students spent half a day at True Start, part of Google’s innovation campus in east London, where they presented business startup ideas they had prepared and then were guided through the lean startup process. The setting was an open-space office, with no cubicles, and with large tables, white boards, and lots of sticky notes everywhere--exactly like such spaces in Silicon Valley.   

Later, the group spent half a day at a somewhat similar venue, the Barclays Bank London Escalator, in which Barclay’s funds hundreds of startup projects in return for a share of equity in any businesses that successfully get launched from there. 

A third visit, to Government Digital Services, showcased another lean startup, in which all relevant government services information for consumers is posted on www.Gov.UK. The site was created through rapid prototyping and constant iteration. A comparison with online government services information in the U.S. confirmed for the students that Americans don't have anything nearly as efficient for accessing information as do citizens in the United Kingdom.

A second insight came from a case study of the incredibly intense level of analysis required to place a giant bet on a commodity price. At Apollo Global Management, the students learned about that private equity firm’s massive bet that oil prices would fall significantly. An executive there, Rob Ruberton, described the analysis process, the quantitative requirements, and the political components. He pointed out that the entire bet was hedged, and he explained how that was done. Then he offered that the final political factor in favor of the bet was the level of antagonism that Iraqis feel for Iran and that Middle East oil operators feel for U.S. frackers; those big suppliers were judged not likely to lower their pumping in order to slow dropping oil prices. Rather, they would let the price fall and enjoy watching it drive some competitors out of the business.

            The third insight, about business culture in London, came from meeting with a digital analyst at the Financial Times. McKinley Hyden grew up in the U.S., attended St. Andrew's University, and then the London School of Economics. She explained how differently the business culture operates in London than in the U.S. The usual U.S. approach for a young, smart employee is to be a somewhat brash, outspoken underling, full of ideas and always eager to share them; that approach doesn't work well in London, she explained. More decorum and respect for authority is expected in all exchanges between employees and their supervisors.

            Additional visits were insightful, as well--at Deloitte, Goldman-Sachs, and Kantar Media. 

            Finally, the students visited Cambridge University, where they were hosted by two students there, Zach and Joe Levin; they are sons of Christine's Stanford classmate David Levin, new CEO of the $2 billion revenue McGraw-Hill Education in New York. Zach and Joe showed the group around the whole campus and shared the lore. They even pointed out the college that Isaac Newton attended, and the tree which legend has it was the one under which the famous apple fell on his head, stimulating his "gravity" aha moment.  

Opportunity Scholarship: Bo Johnson

By Bo Johnson

Studying abroad in the United Kingdom has been one of the most edifying experiences I’ve ever had. Participating in an exchange program is more than attending a different college; it is truly a once-in-a-lifetime opportunity to develop and grow as an individual, academic, and citizen. By leaving all that is familiar behind, you will learn more about yourself and widen your perspective. No amount of schooling will offer the knowledge you gain by immersing yourself in a foreign culture. Thanks to the Huntsman Opportunity Scholarship, I received the financial support I needed to study abroad. To anyone who is considering a semester abroad, I say, what are you waiting for? And to anyone who has not considered a semester abroad, I say, consider it! This is your opportunity to see the world! It will be an experience you will never forget.

Bo Johnson

Putting Putin in His Place

By Dr. William F. Shughart II

No one hates the U.S. shale revolution more than Russian President Vladimir Putin.

Surging U.S. oil and gas production is a nightmare he can't escape. Already, U.S. gas production and the promise of U.S. liquefied natural gas exports have Russia's European customers demanding cheaper prices for gas, and the Russians are reluctantly agreeing.

Dr. William F. Shugart II

Nothing is more critical to Putin's power than Russian energy revenues. Oil and gas exports account for 52 percent of the Russian state budget. That kind of dependence on one source of revenue can pay the bills when energy demand is high and prices are up, but it can be fiscally disastrous when prices fall.

Putin has long used gas exports, and Russia's state-run gas company, Gazprom, as a lever of geopolitical influence. To extract concessions from client states, he has on numerous occasions either threatened to cut off the flow of gas, or actually done so. Ukraine knows that all too well.

But that kind of ruthless behavior sends buyers looking for new suppliers. For years, European consumers haven't had alternatives to Russian gas. In fact, many East European countries rely on imports from Russia to meet 80 percent or more of their natural gas needs.

As a result of America's shale-gas boom, that's on the verge of changing.

Already, seven U.S. LNG export terminals have received Department of Energy approval to ship gas to countries with which the United States doesn't have free trade agreements. That includes all of Europe.

While these projects will take years to complete, the writing is on the wall: Russia is going to have a major new competitor in European energy markets.

While the Russians will be able to undercut U.S. gas prices because their gas can be moved directly to market by pipeline, European buyers are ready to diversify their supply sources.

The question for Europe is: How much is energy security worth? If the full-court press European political leaders have been putting on the Obama administration and Congress to expedite the LNG export approval process is any indication, the answer is: Energy security is worth a lot.

The Russians are pivoting East in response. They're turning to China as a new Gazprom customer, but the U.S. shale revolution is hanging over contract negotiations there as well.

The Chinese need natural gas to reduce their dependence on coal. China is now burning nearly as much coal as the rest of the world combined. But China is well aware of Putin's eroding European market share and it's also eager to buy U.S. LNG; so China's driving a tough bargain. Some reports suggest that to get a long-term purchase contract from China, Putin may be forced to sell them gas at rock-bottom prices.

America's new position as the world's largest natural gas producer and burgeoning gas exporter is remarkable. Just five years ago many experts inside the U.S. government and at U.S. utilities believed we were on the verge of becoming a major gas importer. Vladimir Putin, in fact, eyed the U.S. market as the next destination for Russian gas.

It should be no surprise that U.S. energy policy has been slow to catch up with our vast new supply of gas. Bureaucratic inertia is legendary.

President Obama nevertheless should embrace the energy gift that has been left on his doorstep. Roughly two-dozen additional LNG export applications await DOE review. If the approval of just seven export terminals already has begun to shift the balance of power away from Putin, imagine what the speedy approval of the remaining applications might yield.

It's time to find out. Putin's stranglehold on the European gas market is slipping through his hands. Let's not let it slip through ours.

ABOUT THE WRITER

William F. Shughart II, research director and senior fellow of The Independent Institute, 100 Swan Way, Oakland, Calif. 94621, is J. Fish Smith Professor in Public Choice at Utah State University's Huntsman School of Business.

Read more here: http://www.mercedsunstar.com/2014/05/20/3655835/putting-putin-in-his-place.html?sp=/99/177/#storylink=cpy

In Jill Abramson's Firing, Was The 'Glass Cliff' To Blame?

Written by Alison Cook, Professor of Management at the Huntsman School of Business at USU, and Christy Glass, Professor of Sociology at USU

Dr. Christy Glass and Dr. Alison Cook

Our research on CEOs in the Fortune 500 finds that women leaders face two significant challenges: the “glass ceiling” and the “savior effect”. First, we find that women are more likely than men to be appointed CEO to struggling firms or firms in crisis. This phenomenon is termed the “glass cliff” because it suggests that when women are appointed to top positions these positions are often precarious or risky. Second, we find that when firms struggle under the leadership of women CEOs, these leaders are likely to be replaced by men. We term this phenomenon the “savior effect” because when organizations struggle under the leadership of women, decision makers often revert to more traditional leaders who are perceived to be capable of “saving” the organization. Our research finds strong and significant evidence for both the glass cliff and the savior effect for women leaders. Overall, women leaders face greater challenges and are given fewer opportunities to demonstrate their capabilities than their male counterparts.

Our research provides insight to the firing of Jill Abramson, the first woman executive editor of the NY Times, in three ways. First, Abramson was appointed in 2011 following a series of highly publicized crises at the paper, including a plagiarism scandal, widespread critiques of the paper’s coverage of foreign policy and national security under the Bush and Obama administrations, and declining competitiveness on the digital news front. Arguably her appointment is consistent with our findings regarding the glass cliff. Second, throughout her tenure as the first woman editor, Abramson faced significant challenges related to token status, including negative evaluations of her leadership, hyper scrutiny by her peers and supervisors, and intense pressures to take the paper in bold new directions. Finally, her firing appears to be a classic example of the savior effect. Shortly before her firing, an internal report was circulated at the paper that emphasized that the paper’s lack of digital competitiveness had reached a crisis point. The belief by the publisher that the paper was facing a crisis under the leadership of Abramson may have contributed to a perception that Abramson was not a capable leader. Abramson’s reputation as “difficult” and “bossy” likely only provided further justification for this perception. As a result, Abramson was fired and replaced by a man who had strong relationships in the newsroom and with the publisher, and who could “save” the paper from crisis.

Overall our research on women CEOs suggests that Abramson’s tenure and departure from the NY Times may be a result of the pressures she experienced as a result of the glass cliff and the savior effect. As our findings demonstrate, when an organization struggles under a woman’s leadership—even in the short term—women leaders are blamed and replaced. Most telling is that at an organization where the executive editor has traditionally remained in the position until retirement, the first woman in this role was fired fewer than three years into her tenure and replaced by a man, all in the name of saving the paper.


To learn more about how Cook's and Glass's research relates to Abramson's firing, check out a recent NPR article that was published on May 19.

To the Students

By Mark Bailey

Your time at the Jon M. Huntsman School of Business will offer you much of what you need to succeed and will then set you at the base of the rest of your life when you graduate. What you do now to prepare for that climb is critical for your future success. As a graduating senior I'd like to share some of the greatest lessons I learned from my college experience and what has happened because of it.

Lesson 1 - Learn through experiences, not just from textbooks.

One of the best ways to experience what you are learning in the classroom is through the school’s Go Global and SEED programs. Take advantage of these programs, not because they may look good on a resume, but because the experience can transform the way you see yourself and the world, and then better qualify you for your future.

Lesson 2 - Realize that there are no ceilings holding you down.

You have often heard that you are powerful beyond measure, but do you believe it? Identify what is holding you back from being your best self by asking, “Why or why not?” These two simple questions will help you identify why you do what you do and explain why you haven’t done what you don’t do. Although a humble practice, these questions will help you overcome personal fears and also expand your perspective; the answers will motivate you to do whatever it takes to improve. Aspects holding you down may be as simple as your unchallenged beliefs, misguided social norms, and uninspiring expectations. Know that regardless of what it is, only you have the control to change it.

Lesson 3 - Risk and failure breed success.

For most individuals the objective to gain a college education is to reduce the risk of failure in the job market. And for most individuals, this happens to be true. But that lack of failure doesn’t actually equate future success. It is because of what I have experienced while studying that I am better equipped to take greater risks, therefore exposing myself to some failures and greater successes. Failure is not an end but the start of a better path.

Through my time at the Jon M. Huntsman School of Business, I have travelled abroad learning about global business in Russia, Armenia, and Turkey. I have helped people escape poverty in Peru through SEED. I networked with wonderful people in London. I have competed in competitions, attended countless seminars, sat on councils, and become great friends with faculty. I invested in myself by taking opportunities and choosing to experience what was being offered.

Because of these experiences I have been able to take an opportunity to align myself with Medopad, a company I was introduced to while in London last spring with the school. This UK based company is a mobile health platform that securely delivers patient information directly to physicians. It aims to revolutionize the way doctors access important patient information by making it instantly available on an iPad or other mobile device. This is a huge mission! The people that drive this company realize that they are only limited by what their minds can conceive! And that it is only through taking advantage of opportunities and taking steps forward that the company will succeed!

I am excited for the next phase of my life with Medopad in London, and I hope that I will not soon forget what I learned because of my experiences here at the Huntsman School. My recipe towards success won’t be just like yours, but I am confident that you too will learn life-changing lessons, the ones not taught in textbooks, through choosing to experience your education at the Jon M. Huntsman School of Business.

Mark Bailey

A Student's Day with a SEC Accountant

By Trevor Lund

I had the opportunity to go to lunch and attend class with Jon Duresh, a senior employee in the office of the chief accountant at the U.S. Securities Exchange Commission (SEC). My time with Jon was well spent as he told story after story regarding his time at the SEC and answering my many questions. Jon spoke a lot about the regulation and different decisions the SEC is making. He also spent a substantial amount of time speaking about the role the SEC plays with the other regulatory bodies in accounting.

Jon spoke about how to manage risk, which he stated was one of the main roles of an auditor but that also applies to just about any profession. The following are a few things that I took from his experiences.

1. Understand the business purpose of the transaction or event; you have to understand why the transaction is taking place. You cannot come to a conclusion until you understand why it is taking place.

2. Have objectivity in evaluating authoritative guidance; be able to understand the standards.

3. Consider broader application of GAAP.

4. Consider what investors and regulators think- you must consider what the regulator thought about when the regulation was written.

5. Has materiality been considered properly?

6. Are the disclosures completely transparent- you can blow it but enforcement will have a hard time if the disclosures are very written well and are very transparent.

A few more items he shared that I thought were important and would be beneficial for our students were: USU students can compete with students from around the country, we need to be aware of much more than what’s going on in accounting and we need to be aware of what’s going on in the news.

Trevor Lund

Inside Insight Dubai: A Huntsman Student's Experience

Four ambitious USU students recently traveled to Dubai to further develop their global vision and leadership skills. The students (Andi Barlow, Wendy Bosshardt, Victoria Rasmussen and Susana Pantigoso) participated in an all-women's conference called Insight Dubai. The purpose of the conference is to bring 80 young women from around the world together to help them increase their global awareness and intercultural understanding through a series of guest speakers, panelists, field trips, role plays and simulations. The women study a variety of topics during the conference including "inheritance under Sharia law, Arabic governance, promoting peace and combating human trafficking."

Andi Barlow kept a travel log of her thoughts and experiences at the conference. She agreed to let the Huntsman School of Business share a portion of her log to help others understand the opportunities for global learning available to Huntsman students.

Andi Barlow

Day 1:

I am in Dubai! Who knew I would ever be in the Middle East? It has been a long road, but well worth it. It took us 24 hours of travel and months of stress, but we did it.

One of the most shocking experiences came right after exiting the airport. We were trying to find our hotel van but unfortunately no one came. We waited for a bit and then noticed we were waiting underneath a sign that said “waiting area for men” and there was another sign that said “waiting area for women” on the other side. After finding customer service and calling the hotel, they sent the van and we were driven to the hotel. It’s going to be a great week.

Day 2:

I have had absolutely no rest. We only got about three hours of sleep and then spent the rest of the night talking. Had I been sleeping, I would have been woken up by the prayer calls.

Day 3:

Today we met all the girls and began the conference. I feel as if there are those days in your life that change you forever and today was one of those days.

Victoria Rasmussen and Wendy Bosshardt

There are about 80 girls from around the world attending the conference.

It has surprised me how similar the Muslim religion is to Christians and, more specifically, The Church of Jesus Christ of Latter-day Saints. Principles of eating healthy, paying tithing, the importance of families, praying daily, sexual purity, fasting, the afterlife, and God are all the same, but there are small differences in which we go about it. Personally, this reassures me of the underlying principles in which all people try to better themselves and strive for good.

Day 4:

We started the day with a speaker who spoke about Sharia Law, which is a Muslim principle. Men are very dominant in this culture and the decision of which parent should have custody of a child in a divorcement is very debatable in this culture.

We did a simulation, like a court trial, on the subject in our small groups, and from what I understand based on the local Muslim law, Fathers usually always win custody of the children.

Day 5:

What an exciting and exhausting day! My buddy Mira taught me the Arabic alphabet and how to say a few more words. It is very complicated, and even after I had a list in front of me, I still could not read which letter was which because they're all combined together.

After the parliament, we bussed to the mosque. It was amazing and beautiful! We were required to wear the abaya (long black dress) and shayla (the head scarf or veil). People have tried to argue they are not hot, but that is a flat out lie. It was the warmest I have ever been and then added another black layer and headpiece. I literally felt claustrophobic and sweat was dripping down my back (that hasn’t happened since I lived in Kiribati).

Day 6:

Today we discussed human trafficking as a group. I was very surprised to learn how common it is, especially here in Dubai. There is a principle here believing it is OK to engage in these acts due to the idea Muslims are better than non-religious people.

For our night activity we drove 30 land rovers out into the desert and went dune bashing. It was insane! The desert is beautiful with mountains in the background. It reminds me a lot of Southern Utah.

Day 7:

It is the last day of the conference. It has been so insightful to get to know all these women. They are all so different in their ways, but we all share similar desires and goals. This has been an experience I will never forget. Learning about the Muslim culture and religion is fascinating, and it has really helped me humanize the Arab people.

After lunch, people shared their insights about the conference. Most of the speeches were serious and even tearful, but us good ol’ USU students got up and did the Scotsman to show our school pride.


I am very grateful to all of those who helped make this experience possible. I could not have done it with out a few key individuals. It was obviously a fun experience, but also very educational. I will forever remember the things I have learned about other cultures and myself through this experience.

Fatbikes Leading to Fat Money for Student Entrepreneur

Spencer Bailey at Taipei International Cycle Show

By Klydi Heywood

Some say that ultimate happiness in a career happens when you combine what you love with what makes you money.

At the age of 21, Spencer Bailey, international business & finance, ‘15, has done just that.

His business idea started by finding an innovative way to pay for school and an LDS mission. Spencer speaks Mandarin Chinese and used this skill to import bicycles from China and sell them on local sites such as KSL Classifieds. 

Then while serving his LDS mission in Taichung, Taiwan, the mission president asked him to develop a new bicycle model for all missionaries.

“I went into some factories and really learned how to develop a bike. I learned the processes of going from conception to manufacturing and then distribution,” he said.

After returning from his mission, his passion for creating bike models only grew. He partnered with Joyride Bikes manager, Wayne Wheeler, to create a new type of wheel rim for a new bicycle genre called fatbikes.

A fatbike is a bicycle with over-sized tires (typically 4-5” wide) that are designed for riding on soft unstable terrain such as snow and sand.

However, Spencer saw a problem with the new bike model: the rims for fatbikes were traditionally smaller than the width of the tire, and few companies were producing bigger tires, rims and frames.

“We did our analysis and found customers were simply asking for fatter tires and lighter bikes; we jumped in and never looked back,” he said.

He initially pitched his idea to the Entrepreneurship Club at the Huntsman School to help get feedback on the Victorious Bikes business plan. When he asked if anyone knew of any good engineers, the person next to him, Mike Lichfield, excitedly explained he was a junior in mechanical engineering at USU and quickly joined the team. The trio then designed a new concept for lighter wider 100mm rims.

Spencer Bailey, Wayne Wheeler, Mike Lichfield

Through the Entrepreneurship Club Spencer heard about the commercial $20,000 USTAR Go-to-Market grant. During the process of applying for the grant, his team learned they would be able to apply in the outdoor sporting category.

“We pitched our designs and concepts to implement a new technology in the market,” Spencer said. “And we got it.”

A few weeks later Victorious Bikes was accepted and able to attend the Taipei International Cycle Show, in Taiwan, one of the World’s biggest cycling expos.

“At the show we were able to work with multiple facilities in Taiwan and China and expand to more than making just rims. Right now we are developing an entire high performance fatbike product line, which will come to market at the Las Vegas Interbike Show this September,” Spencer said. 

“Starting my business in school has taught me a lot," he continued. "Right now I am in Accounting 2020, where we are learning about cost base manufacturing, and I’m able to apply it every day. My homework is my business.”

With the grant money and trade shows accelerating the company forward, the future looks bright for the student entrepreneur. 

“We are just testing all our prototypes and getting ready to go to production so we can be ready for Interbike in September. We are currently exploring some different avenues for financing and looking for some energetic and adventurous people to join our team,” Spencer said.

You can find and contact Spencer and his team at their website www.VictoriousBikes.com.

Marketing Week Preview

By Allie Jeppson

In the past few years the Huntsman Marketing Program has witnessed an immense amount of growth and this year is no different with the commencement of the first-ever Marketing Week, which began Monday, March 3, and will continue through Friday, March 7.

Events began Monday with the Zagg Case Competition, where companies, like Zagg, present students with a real-life marketing scenario they are facing. Students then have a limited amount of time, in this case five days, to create and present their solutions. Case competitions such as this have been held in the past and while they’re a relatively new addition to the Huntsman School Marketing Program, they have proved valuable as students are immersed in a hands-on situation and gain real world experience.

Tuesday’s event will feature a resume-building workshop sponsored by Workday, followed by a presentation titled, “How to Land Your Dream Job with Social Media,” with marketing student and social media guru Jeremy Schumann.

Other highlights during the week will include a market research workshop hosted by Qualtrics, a marketing strategy competition, a new venture-marketing workshop, a t-shirt design competition and raffle prizewinners.

From a student’s perspective, Marketing Week is not only filled with fun activities, but provides some invaluable insight, especially for a graduating senior like myself. Many students may not realize it, but marketing is applicable to students of all studies, especially those who are graduating and looking for jobs. This is where the skill of marketing oneself comes into play and marketing week can help students to do just that

Kent Wuthrich, Zagg EVP of Marketing