Issue link: https://www.e-digitaleditions.com/i/61371
ARBITRAGE—CAPITALIZING ON CULTURAL DIFFERENCES—IS ESPECIALLY CRUCIAL WHEN MORE THAN 60 PERCENT OF MANAGERS ARE DISSATISFIED WITH THE PERFORMANCE OF THEIR COMPANIES INTERNATIONALLY. A total of 72 sophomores and juniors from Romanian high schools attend- ed the camp, which was held in mid- July. The U.S. group also visited local industries in Cluj and spent a final day sharing cultural traditions with the Romanian students. "I think this experience could be life-altering for all the students involved," Jones says. She hopes to make the Business English Immersion camp a long-term project and bring it to other countries as well. Diversity Matters Diversity is a source of value in the work- force, not a constraint on value cre- ation. That was the message deliv- ered by Pankaj Ghemawat, professor of business administration at Har- vard Business School, speaking to more than 2,000 alumni and other attendees from five continents. They were gathered at IESE in Barcelona to explore the opportunities of "Globalization and Diversity in the Corporate World" at the school's reunion weekend. Ghemawat also promoted the idea of "arbitrage"—capitalizing on cul- tions on global marketing, ethics, and the rise of China as an economic power. The reunion weekend coin- cided with the Universal Forum of Cultures in Barcelona, which also aimed to open up dialogue on cul- tural diversity to promote progress in society. tural differences rather than viewing them as inconveniences. He noted that arbitrage is especially crucial at a time when more than 60 percent of managers say they are dissatisfied with the performance of their companies internationally. "Arbitrage is not the only strategy to create value through global operations, but it is an impor- tant lever to make differences work for you," the professor noted. Other speakers offered presenta- Studying Sponsorship What motivated Nextel to sponsor NASCAR to the tune of $750 million over the next ten years? Why does any corpo- ration sponsor sports events and other activities? Those are the ques- tions students will attempt to answer in a new elective course at the University of North Carolina in License to Brag When dean John Wholihan drives around the Los Angeles campus of Loyola Marymount University, everyone knows he's proud of his association with AACSB International. The faculty first gave him this specialized license plate in 1987 to celebrate accreditation of the school's MBA program. These days it's attached to his 1994 Buick. "Each renewal costs, but I decided that the faculty would like me to keep the plate indefinitely," Wholihan says. New faculty often question the significance of the plate, so Wholihan happily explains "how important it was to all of us to achieve accreditation" and how much he enjoyed the faculty's enthusiasm for the feat. He holds a dinner or special event every time the school achieves re-accreditation. This allows the faculty to celebrate as a group and reward themselves for the effort required to maintain a high level of excellence. tional and event marketing are drawn to the course. According to BizEd SEPTEMBER/OCTOBER 2004 sor events for a variety of reasons, among them to identify with a spe- cific target market; increase aware- ness of a brand; enhance corporate image; express commitment to social issues; and enhance promo- tional opportunities. "As with any other strategic decision that man- agers face, there are trade-offs. For every dollar you spend on sponsor- ships, there's a dollar you can't spend on another activity," Hoeffler says. "You need to think of it very strategically and determine how you measure ROI for the company. How do you assess the effectiveness of your sponsorship activities?" Students interested in nontradi- tions to examine the strategic impli- cations of sponsorship activities. Hoeffler believes marketers spon- Chapel Hill taught by Kenan-Flagler marketing professor Steve Hoeffler. The course combines lecture and experiential activities with guest pre- sentations by social cause organiza- tions, sports organizations, and spon- soring companies such as Nextel, Blue Cross Blue Shield, the Carolina Hurricanes, and Habitat for Humanity. Among other activities, students will attend a race in the Nextel Cup series and volunteer for school-sponsored events such as the Habitat for Humanity Golf Tournament. They will also interview reps at large commercial organiza- 9