Monday, August 31, 2009

A Look Back: Company Financial Analysis


Intel Corporation Financial Analysis

In an Executive Uses of Accounting seminar (spring 2009), students were challenged to execute a thorough financial analysis of a company of our choosing. I decided on Intel Corporation, a company I had been following for some time because of its broad product reach, innovative culture and dominant market position in the global semiconductor industry. Intel is one of those unique companies whose products we encounter and use on a daily basis without conscious intent; rather they are very deeply embedded in our lives. In addition, I also wanted to learn more about the strategic investments made by Intel Capital, the firm’s venture capital arm, which spurs industry innovation through its calculated investments in various technology sectors. The following executive summary is just a sampling of my results from this project:
Intel Financial Analysis
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Monday, August 24, 2009

A Look Back: Travel and Tourism Marketing Project

For a group project in a Marketing Issues Seminar, we presented a thorough examination of the global Travel and Tourism industry using as our starting point Alvin Toffler’s notion that the world can be viewed in terms of “waves” (i.e. agrarianism, industrialism and the information age) and, within those waves, “spheres”, each covering a specific topic such as information, power, technology, psychology, biology/environment and social relationships. We used these loose classifications to begin exploring the spectrum of marketing considerations within the Travel and Tourism industry. This exercise is, in some ways, similar to an environmental scan, but with a slightly more narrow focus on marketing, key current/future trends and customer behavior.

An excerpt from my presentation notes:

In summary, we’ve only scratched the surface of some of the trends happening in this vast, diverse industry. Marketing in this industry plays a very key role. Identifying market segments and niches as they are defined by consumer tastes is crucial to a company’s success in this industry. Today’s traveler is informed, takes shorter, more focused trips and as a result uses existing and emerging technologies to make traveling and travel planning easier.

Travel and Tourism

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Tuesday, August 18, 2009

A Look Back: MBA Environmental Scanning Project

Environmental Scan: The Global Beer Industry

In a class entitled Business Environment Analysis, a semester long group project required students to choose an industry and execute a thorough environmental scan. Environmental scanning is the practice of systematically gathering external information about issues that may influence the decision-making process of a business or industry. In many ways, environmental scanning is an intuitive process that is often practiced on an informal level within an organization. However, it can be most effective when formalized and institutionalized within a firm’s regular operating practices because it can often serve as an early-detection system for recognizing key issues, developments and changes that will shape the future of the organization. For the purpose of our assignment, the analysis was to cover a range of qualitative and quantitative aspects of the industry including: Natural/Physical, Demographic, Economic, Political & Legal, Social & Cultural and Technological issues within the global beer industry. The following paper is the result of our research and analysis.



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Monday, August 17, 2009

A Look Back: MBA Business Ethics Project


With just one week left before the start of the 2009 fall semester at UAA, I thought it might be interesting to take a look back at some of the projects that I participated in or completed during my first full year in the MBA program. I will be spreading this out over several postings this week—and in many cases embedding the final product or document into the blog posting—and hopefully it will serve as a useful glimpse into the types of projects and issues covered in the MBA program.

Business Ethics Project

A rather substantial individual assignment in my Business Environment Analysis class dealt with the creation of a specific code of business ethics. The assignment dictated that each student choose an existing, substantive system of thinking (from, say, a particular branch of philosophy, religion, or regional culture, etc.) and adapt a functioning business code of ethics from its main ideals. The code was to be detailed in a paper and challenged with two business-related ethical issues. The professor warned that this would not be an intuitive task; rather its complications were designed to force students into a more discerning understanding of the crucial role played by practical business ethics. For my starting point I chose the complicated writings of Ayn Rand, in particular her philosophy of Objectivism, which is centered on the principal that individuals should act based upon rational self-interest. I had no previous experience with Rand’s writings, but I was aware that her ideas were rather controversial and often economically associated with political conservatives defending pure free-market capitalism, perhaps because of former Federal Reserve Chairman Alan Greenspan’s well-known belief in Objectivism and rational self-interest. Other than that, I knew that I had chosen a very dense system of thinking from which to distill a simple, practical code of ethics. As my professor had warned, I found the assignment to be very challenging, but rewarding in the sense that I felt like I was cracking a difficult code as I waded into Rand’s prose and sought to uncover the raw ethics that formed the underpinnings of her complex and divisive life’s work. The resulting paper is written from the theoretical perspective of a business owner and also includes a section on corporate social responsibility (pg. 25)—which I was initially skeptical of, but ultimately found to be one of the most interesting aspects of the exercise.


Ayn Rand and Business Ethics

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Monday, August 10, 2009

Organizational Culture: Centre College Makes the Grade


Okay, I couldn’t resist the opportunity to tout my alma mater, Centre College, and highlight its recent appearance at number 14 overall on Forbes 2009 list of best colleges. Say what you will about college ranking systems—they tend to be highly subjective and often based upon questionable criteria—but when taken in the proper context, they can serve as a useful tool for comparative analysis. What’s pleasantly surprising about Centre College’s ranking is not that it is so high—indeed its educational quality has been Kentucky’s worst kept secret for decades—but that its small size didn’t take it out of contention. Centre College is tiny, smaller than a lot of high schools, and located in a small town on a small campus, but what it does have is a big world view and a powerful learning culture. Last fall, in an Organizational Behavior class at the University of Alaska, we studied the influence of organizational culture in business and educational institutions. Our professor challenged us to evaluate UAA’s culture, attempt to understand its development and brainstorm some potential improvements. Centre’s inclusion in the Forbes list reminded me of this exercise and again underscored just how critical organizational culture is to organizational success. Despite the clear differences between UAA and Centre, the importance of culture does not seem to be directly tied to size or scale; rather both large and small organizations must have some clear method for institutionalizing knowledge, values and practices. Consider the following excerpt from an essay I wrote on organizational culture, in which Centre College and UAA’s cultures are discussed:

Organizational culture is, in part, an organic aspect of any well-established group, but it is also a calculated choice designed to perpetuate shared values and beliefs that normalize certain behaviors. Strong organizational cultures have distinct advantages when implemented broadly, yet there are some clear disadvantages as well.

The advantages of a strong organizational culture are that it effectively creates an identity for the organization as a whole and provides a set of guiding norms for individuals within that organization. A strong culture has the ability to perpetuate the organization’s values, beliefs and attitudes as well as provide the foundation for organizational learning and a shared sense of purpose. An organization with a strong culture can more easily identify individuals who fit a particular mold and provide a network of socialization, rewards and incentives. Strong cultures also serve as established communication networks which spread relevant information and convey managerial expectations. Strong cultures tend to contain measures of distributive and social justice and they have defined processes for perpetuating the culture through stories, tradition, socialization, ceremonies, language and symbols, etc... Organizations with strong cultures tend to be equipped for success under specific conditions and tend to cultivate long term employees with a high level of loyalty and shared values. However, strong organizational cultures can have some distinct disadvantages as well. Within strong cultures there is often a pressure to conform, which can isolate individuals and limit creativity. Also, strong cultures can be resistant to change which can complicate growth, particularly regarding mergers. Furthermore, the risks of conformity within a strong culture can make an organization prone to group dysfunctions such as groupthink and group polarization, which can further complicate the decision-making process and creates an element of organizational risk.

In my view, The University of Alaska Anchorage organizational culture is challenged by the fact that very few students live on campus. My undergraduate degree is from Centre College in Danville, Kentucky, a very small college with a very strong culture. During my time there, well over 90-percent of students lived on campus and the culture at Centre College was characterized by a rich history, strong traditions, and values crafted by storied generations of families and individuals over time. A thorough orientation process bonded classes together and the small town semi-rural setting, coupled with a campus-dwelling student body, put the College at the social and educational center of every student’s life. Education came first and, as easily distracted eighteen-year-olds showed up each fall, they were shaped by a culture focused on positive, productive learning amid an extremely demanding educational environment. This is the benefit of a strong culture at an educational institution and I believe that the most successful institutions have administrators who understand that a school’s culture plays a huge role in the educational mission. To be sure, it is more than sports teams and social events, rather at its core it has to be about a high standard of educational excellence. In my opinion, this begins with communication. For example, UAA’s hallways are littered with information boards, which indicates to me that (a) people want to communicate and (b) there is a lack of fully formed outlets for communication—instead individuals are left to tack their claims to a hopeful void. The larger issue here is that UAA does not have a very advanced system of connecting its students to the University or to other students. UAA could gain ground in this area by cultivating a compelling narrative for itself, a tradition based upon the accomplishments of current students, faculty and alumni and by making communication a priority, through regular publications, educational functions and forums, online networking websites and a functional email system, etc... Could UAA’s lack of a strong culture challenge its ability to fulfill its educational mission and serve as a leading-edge institution for the state of Alaska? Perhaps, but thus far UAA has managed to maintain high educational standards without deep organizational culture. I wonder if the lack of a fully formed culture is, in part, due to the fact that the University isn’t dependant on alumni giving as a major funding source. Centre College, a private institution, worked hard to create a strong culture, in part to cultivate a lifelong bond between alumni and the institution, a practice that has been very effective and lucrative, as Centre is regularly cited as one of the top colleges in the nation for alumni giving rates. Indeed, I suspect that nationwide there is at least a loose correlation between university culture and alumni giving. Centre’s administrators clearly believe that in order to stimulate giving, you must create a holistic, unique and lasting educational and social experience. UAA doesn’t seem to have the same incentive, perhaps because it is funded by the state. Nevertheless, a strong culture is an integral part of accomplishing the educational mission and the goal should be to make students feel more connected to their University in order to facilitate the positive feedback loop that exists between learning and a strong university culture.

In summary, strong organizational cultures can have significant advantages and disadvantages. A strong culture can effectively perpetuate a system of values and cultivate a workforce with shared goals and a rich organizational identity. However, strong cultures can contain pitfalls such as constrained growth, the suppression of individual creativity and resistance to change. Organizations wishing to establish strong cultures must be certain that the values they impose are ethical, reasonable and flexible enough to encourage success without blurring the overall mission of the organization.

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