Category Archives: Global Business

Part 1 of 2: MBA study tour in Peru – Coffee, copper, economics

Guest post by Oliver Huslid, Evening MBA student

Peru_0097Silicon Valley of Peru
Microsoft Peru rents space from an unassuming office building in the heart of the city. Because this particular satellite branch only does Sales, it does not have the need for a sprawling complex like that in Redmond.  The immediate surrounding area has a new and modern feel to it. The architecture of the buildings showcases their glass and clean concrete. Because Microsoft’s neighbors include HP, Cisco, Oracle, and Google, it’s no wonder they call this area the “Silicon Valley of Peru.”

Coffee co-op
We visited Café Villa Rica, a co-op of coffee-growers in the Villa Rica region. Headquarters were located inside an unmarked office building in a sleepy residential area of Lima. Café Villa Rica is a privately owned and privately funded since local banks do not trust farmland as good collateral for loans.  They grow, pick, and process their own beans to ensure quality. Unfortunately, Peru does not yet have a big coffee-drinking culture, so most of their beans are exported to coffee-drinking nations like the United States. Café Villa Rica sells about 60% of its beans to Starbucks, where their acidic, earthy beans are mixed with Kenyan beans to balance out some flavors for Starbucks’ customers.

Copper mining
We walk around the corner to visit the headquarters of Southern Peru Copper Corporation, a copper mining corporation with extraction sites in Peru and Mexico. The copper industry enjoys high margins and an accelerating demand from developing countries like China. Year over year EBITDA is in the triple billions for this particular company despite issues with strikes, corrupt unions, and increasing environmental backlash.

Though recent demand slowed in 2009 due to lagging construction needs in the global sphere, demand has picked up pace again in 2010. As one of the largest mining companies in the world, Southern Peru Copper Corporation mines a diversity of minerals and metals, like molybdenum, zinc, and others.

Peru’s national economy
We began one day with a visit to the Ministry of Foreign Relations, where we are treated to an exposition on the strengths of Peru’s economy.

Many of the charts convey dramatic increases of key exports in the past decade, highlighting Peru’s rapid expansion and growing presence in the global trade arena. Peru’s modern approach to global economics has earned it crucial free trade agreements with a large number of countries, including the United States and much of Europe. The impact of these decisions has improved the standard of life for Peruvians substantially, as evidenced by the poverty level dropping from 50% to about 35% over the past decade.

One major weakness of Peru’s economy that they are trying to remedy is overreliance on exporting to the United States and other developed nations. The other major weakness of Peru’s economy is heavy saturation of mining companies. This trait of the Peruvian economy makes it vulnerable to fluctuating commodity prices for metals and minerals.

Oliver is one of many University of Washington Foster School of Business MBA students who studied abroad in 2011. Learn more about MBA study and work abroad opportunities.

Doing Business in China Workshop

The UW Global Business Center hosted a full-day workshop on the University of Washington Seattle campus designed for smaller regional firms desiring to enter the Chinese market. 

During the workshop, China business experts shared their knowledge about doing business in China—the challenges and opportunities, failures and successes, plus insights and practical advice about building lasting business relationships. Each session has been posted below:

Establishing an Effective Supply Chain

Human Resources Strategies

The Art of Getting Paid in China

The Dragon and the Elephant: China, India and Global Economic Leadership in the 21st Century

Establishing an Operating Presence with the Right to Do Business

Building Trust, Integrating Business Styles, and Observing Protocol

Meshing Relationship, Governance, Economics, Policies

An Introduction to the History and Geopolitics of Modern Day China

$33,500 awarded to best social innovations

The 2011 Global Social Entrepreneurship Competition (GSEC) at the UW Foster School of Business brought in more than 100 entries from university teams around the world who seek to reduce poverty and solve social problems through sustainable business and technology endeavors.

Sanergy won grand prize
Sanergy won grand prize

“How do we help make social innovations scale? It’s through visibility, encouragement and investment,” said GSEC award banquet keynote speaker Dan Shine, senior innovation advisor at the Office of Science & Technology at USAID.

Grand Prize of $12,500 went to Sanergy. Led by a diverse team (of engineering, business, urban planning and design students) from Massachusetts Institute of Technology (Cambridge, MA), University of Cambridge (Cambridge UK) and Art Center College of Design (Pasadena, CA), Sanergy addresses both social and economic issues among Kenya’s poor by making sanitation safe, affordable and accessible through innovative technologies—such as small-scale toilets—that collect waste and convert it to energy or fertilizer. Their business model ultimately seeks to reduce sanitation-related disease in Africa. Sanergy also won the new Rotary Prize for Social Impact of $1,000.

welloGlobal Health Prize of $10,000 went to Wello. Led by University of Michigan MBA students, Wello provides clean, affordable water to rural India communities through their innovative, mobile WaterWheel that alleviates the burden of carrying water from source to house while also providing entrepreneurial opportunities for rural residents via delivery service.

A new Information & Communication Tech Prize of $10,000 went to NextDrop led by a diverse team (of business, engineering, public policy and information technology students) from University of California, Berkeley and Stanford University. NextDrop addresses clean water scarcity in rural India by improving the distribution of information about water availability via mobile phone technology. NextDrop works with both local water utilities and consumers to provide more predictable water supplies and improve water management.

“GSEC is a gem among University of Washington programs. Global health is a quest that relies on new tools and alliances… to alleviate disparities,” said Dr. Judy Wasserheit, professor and vice chair of the University of Washington School of Public Health.

The Global Social Entrepreneurship Competition is organized each year by the Global Business Center at University of Washington Foster School of Business.

People’s Choice Award winner: Wello at 2011 Global Social Entrepreneurship Competition

welloTeams from around the world gathered for the 2011 Global Social Entrepreneurship Competition. Last night, Wello won the People’s Choice Award at the trade show, where more than 50 investors and the public heard about novel business ideas to solve global poverty.

People’s Choice winning company: Wello
Team: Ross School of Business, University of Michigan
Business idea: Using their WaterWheel, Wello provides affordable, clean water to rural India. The wheel is a tool to retrieve clean water without heavy lifting and can be used directly by families or employ people to work their way out of poverty by serving as water distributors.

Teams are still competing for grand prize at the UW Global Social Entrepreneurship Competition. Later this week, we’ll announce finalist winning teams who will leave Seattle with seed money for their projects.

Engineering and international studies students get involved in Global Social Entrepreneurship Competition

Guest post by Ryan Kelley (UW international studies student) and Adrian Chu (UW engineering student)

Why is an international studies grad student engaged in social entrepreneurship?

I am a second year student at the University of Washington Jackson School of International Studies with a focus in political economy. Both politics and economics have developed to a point of interconnectivity that cannot be ignored, as political issues often are economic issues, with the reverse being true as well.

I see the Global Social Entrepreneurship Competition (GSEC) at the UW Foster School of Business as a focal point where bold global contestants—each having a unique window to a concept as broad and penetrating as “poverty,” represent the vanguard of beneficial changes that can be made to the world. What about each team makes their project the most apropos to how they see poverty? Does this say something about where they are from? Does their solution have a regional impact or transferability beyond a region?

If questions such as these have the possibility of being answered, what this means to me, as it should to anyone currently in international studies, is that GSEC is a global lobby where the problems of the world are brought to light in the context of their possible solutions. What the contestants ultimately bring to the table will in some way be a representation of the future in a way that we have not seen before. I believe that that promise alone begs the attention of everyone.

Ryan Kelley is a UW international studies graduate student fluent in English, Japanese and Spanish who is serving as a 2011 GSEC ambassador to foreign teams who meet in Seattle to compete.

Why is an electrical engineering undergrad student engaged in social entrepreneurship?

Growing up, I have always had a passion for entrepreneurship. The concept of social entrepreneurship occurred to me a few years ago when I came across the paper entitled “Social Entrepreneurship: The Case for Definition,” by Sally Osberg and Roger Martin on the Stanford Social Innovation Review. In the past few years, I have become increasing interested in entrepreneurial endeavors. I have been participating in a number of competitions offered by the UW Foster School of Business’ Center for Innovation and Entrepreneurship: the Environmental Innovation Challenge, Business Plan Competition and the Science & Technology Showcase. Each of these activities taught me valuable lessons on the pathway to creating a successful business.

My own curiosity drew me further. Being environmentally friendly is one thing, but how can something be “green” and at the same time improve social welfare around the world?

My motivation to participate in the UW Global Social Entrepreneurship Competition was driven by the desire to apply my past professional and academic experiences in order to learn new things, meet new people and play a role in saving the world one step at a time. As an engineer, our primary occupation is to solve challenging problems. A typical business venture consists of identifying a problem and proposing a solution, while trying to maintain a profit. Social entrepreneurship is an amazing feat, where its success synergizes traditional principles of business and the ability to make a positive difference. Serving as the 2011 GSEC marketing co-chair and team ambassador for Sanergy, I am looking forward to seeing how an idea can transform into engineering design that can be developed into a product that will make a positive difference in the daily lives of people in developing countries.

Adrian Chu is a senior in electrical engineering at the University of Washington and the marketing co-chair and team ambassador for this year’s GSEC.

Female bankers in Indian pay it forward

Guest blog post by Cate Goethals, UW Foster School of Business lecturer

Why do more women hold top banking positions in India than anywhere else in the world—including the US? My students and I went to India in September 2010 to study women’s leadership at all levels of society, including to get an answer this question.

India is a country where women are widely undervalued—a bride is burned every two hours. And where, equally counterintuitive, far fewer women go into banking, so the pool of qualified females is smaller.

Abonty Banerjee, general manager of global operations at Indian bank ICICI
Abonty Banerjee, general manager of global operations at Indian bank ICICI

Our first visit was with top female executives at ICICI Bank in Mumbai, the country’s largest private bank.  ICICI has been the training ground for most of the top women in Indian banking. Why? It grew rapidly beginning with India’s economic reforms in 1991, providing opportunities for women. It also paid less than other banks and so attracted proportionately fewer men than other banks.

“We don’t do anything special for women,” says CEO Chanda Kochhar. “But we are in a way special because we don’t have any biases. When it’s an employee, we go by the merit of the employee. When it’s an entrepreneur, we go by the merit of the entrepreneur.”

Women also work harder even in an organization of hard workers, explains Abonty Banerjee, general manager for ICICI’s global operations. “We work very long hours, typically 12 hours per day, six days per week. That is a function of our population. If you don’t do it, there are so many others to fill the job.” There is no daycare, though relatives often babysit. Women are generally expected to manage households and children regardless of career. “Women succeed because they work harder at home and at work.”

Indian banker Veena Mankar discusses women in leadership with Foster students
Indian banker Veena Mankar discusses women in leadership with Foster students

We also visited with one of ICICI’s prominent alums, Veena Mankar. Veena founded Swahaar (“self-support” in Hindi), a bank and finance organization dedicated to making tiny loans to Mumbai’s urban poor—especially women—and teaching them how to manage money.

Inspired by the plight of her own household help, Veena is determined to make a difference in the lives of poor women. The challenge, she says, is to change their mindsets, to convince them they are as deserving as men and that their daughters as well as sons should be educated. Once they realize this, their girls often go to college, marry later, delay childbearing and have healthier children, thus ensuring a better life for future generations and the community.

This is where it comes full circle. Highly-educated and affluent women in banking use their success to change the context for women at other levels of society. “It’s not just about giving a woman a loan. It’s about giving her a place in society and her family,” explains Veena.

For background and a comparison of women in American vs. Indian banking industry, I recommend these New York Times articles: Female Bankers in India Earn Chances to Rule and Where Are the Women on Wall Street?

Cate Goethals, University of Washington Foster School of Business lecturer and Seattle consultant, leads global business seminars and study trips focused on women and international business. She has taught at the UW Foster School for more than 20 years—including a class called “Women at the Top” that was named one of the 10 most innovative MBA classes in the country by Forbes in 2010.

Generosity of women leaders in India

Guest blog post by Cate Goethals, UW Foster School of Business lecturer

Women Leadership Trip - India 2010I first noticed it on the plane before I even reached Mumbai when I sat next to a woman who owned a handicraft business. I told her I was bringing a group of 22 students to India. “Come to my home,” she said. “Let me cook for you.” Her sister-in-law, who ran a different business, came to sit in our row. “Please let me host your group,” she said.

University of Washington students and I (their faculty trip organizer) had set out to study women’s leadership in India. I expected the accomplished women we met to be powerful, visionary, confident, charismatic, any number of traits. What I had not anticipated was generosity.  Extreme generosity. The more responsibility someone had, the more time and attention and respect they gave us.  Some more examples:

  • Rohini Nilekani, who runs a multimillion-dollar foundation in Bangalore and is known as “the Melinda Gates of India,” spoke to us and then had to go to a meeting.  After the meeting, she returned and gave us another hour of her time.  Half of that was spent asking us for our ideas.
  • Poorvi Chothani, well-known attorney often seen on Mumbai TV, not only agreed to brief my group on women and the law in India – but went on to spend many more hours organizing a special session of the Ladies Wing (!) of the Mumbai Merchants Chamber to gather dozens of women in our honor. She turned what could have been a personal platform into an exchange of ideas.
  • Veena Mankar, leading banker and co-founder of microfinance institution Swadhaar, had to cancel our visit to go to a funeral. She then rearranged her schedule and spent more than an hour driving across Mumbai to meet with us at our hotel early one morning. “Young people have the best ideas,” she told me. “I talk to them whenever I can.”
  • Amma, “the hugging saint” and most well-known female spiritual guru in the world, heard that we were rushed through our first session with her. Although she hugged thousands of other people that day, she invited us for a second session, asked that we sit at her feet and personally answered our questions about women’s leadership. Then she asked her swami to give us back the money we paid to stay at her ashram. “Students should have pocket money,” she said.
  • Women of the world-famous Self Employed Women’s Association greeted each of us several times with a personal flower, a special bindi (red dot pressed with rice on our foreheads to nourish our spirits) and a bit of sugar to eat.

I was struck by this generosity on nearly every visit.  It may be part of Indian culture, it may be related to gender, it may be a function of the exceptional people we saw.  In any case, it is an overlooked and undervalued leadership trait – and one that is infectious, making the students and I want to give back…and give elsewhere…and do it again, creating new cycles of generosity even now that we’re home.  The ripples are still being felt.

Cate Goethals, University of Washington Foster School of Business lecturer and Seattle consultant, leads global business seminars and study trips focused on women and international business. She has taught at the UW Foster School for more than 20 years—including a class called “Women at the Top” that was named one of the 10 most innovative MBA classes in the country by Forbes in 2010.

The India exploration seminar abroad, called Half the Sky: Women Leaders and Entrepreneurs, included 22 graduate and undergraduate students.

Interning in rural Kenya

Guest post by Nathan Whitson (UW business major graduating in 2012)

SAM_0286As part of my international studies at the UW, I desired to volunteer abroad during my college career. The summer of my sophomore year (2010) I traveled to Kenya as part of an informal internship at a small orphanage called Watoto Wa Baraka.

My time in Kenya lasted 6 weeks, but it was jam-packed with new experiences and encounters. Kenyans are wonderful. They help before you ask and smile before you can react. This attitude puzzled me, because in deep poverty, they persist and love the life that they were dealt. I quickly began drawing differences between Kenya and America, a natural process that creates unique global views.

Global conversations
Kenya was not the only thing new to me. So was everyone around me. While in Kenya, there were few Americans and many of my peers were European. I did not know what to expect, but my understanding grew as we discussed everything from politics to education. In addition to learning about Kenyan culture and society, I gained a unique understanding of different communities from around Europe. I now have a mini network of people from around the world that I can connect with in the future.

Preparing food at a Kenyan orphanage
Preparing food at a Kenyan orphanage

Making an impact
As volunteers, we spent time looking after the children, helping in the local school and hospital, aiding with laundry, harvesting and cooking food and traveling around to different communities in the area. This internship taught me what simple living really is. I am deeply humbled that I was able participate in an international internship this summer because the experience truly cannot be replicated. Kenyans are the most resilient people I have ever met, leaving me with the hope that a bit of this attitude rubbed off on me. I feel that this is true of all internships; they are gateways into the real world. Not every internship defines what your career will be, but it shines a light into what exists at that next level.

Resources
If you are thinking of interning abroad, my recommendation is to fully commit yourself to a program and go with it. A variety of great resources exist for those looking to make a difference abroad or gain experience locally. Here are a few I would recommend: Volunteer Match (opportunities abroad/locally), Intern Match (local internships) or UW Husky jobs.

Nathan Whitson is a junior at the Foster School of Business focusing on finance. He used his “summer break for something more heartfelt than simply a check every two weeks and it definitely paid off.” His Kenyan internship was organized by himself via Volunteer Match.

Women leadership in India via microfinance

Guest post by Cynthia Sánchez (UW English major, graduating in 2011)

I used to believe microfinance pertained only to those in the banking industry. However, I’ve discovered this is not the case. Microfinance can be utilized by many banks, but also individuals seeking to help others. I learned microfinance does more than lend money. It helps people save, build their resources and reduce their vulnerability.

Microfinance repayment gathering in India
Microfinance repayment gathering in India

Meeting with Grameen Bank in Bangalore, India allowed me to witness the difference the bank makes by giving 97% of their loans to women while they also strive to educate the next generation. Our meeting with Grameen Bank began by attending a repayment meeting. We arrived at the gathering location—encountering a few goats along the way—and entered an open space. A group of women sat leg-crossed chanting the sixteen decisions, a set of values, followed by the recitation of a vow. This was the way they commenced meetings. They welcomed us with smiles and requests to sit next to them, tapping the floor beside them to signal open spots. The women wore saris and a few cradled their children. We took our seats barefoot and watched each member sign in. Their glass and golden bangles slid up and down, synchronized to the movement of their arms.

The session was quick. The women were prepared with the money stacked in their hands, like a deck of cards. They all sat attentive waiting to hear their name to pass the payment to the lender. The money circulated, hand in hand, until it reached him. He counted the amount and recorded the amount in the borrower record sheet which contained the borrower’s picture, her name, the names of her children and spouse and dates of all the past payments.

We learned from the women that with the money they borrowed they had paid for their children’s education, started businesses, resolved personal issues and emergencies and also had the opportunity to expand their knowledge of business. Obtaining a loan from Grameen Bank had empowered them to decide what was best for their families and their future. Women who were once considered “uncredit-worthy” are now beginning to move away from poverty in a country where 41% of its population is still “unbanked”—demonstrating the difference a small loan can make.

Cynthia is a University of Washington student participant in the Foster School of Business study tour during fall quarter 2010. The trip, focused on Women Leadership in India, was organized by Foster faculty member Cate Goethals.