Global Business Case Competition exports inspiration around the world

GBCC-facesEvery year the Foster School’s Global Business Case Competition (GBCC) welcomes the world.

Bangladesh and Brazil. Egypt and Estonia. Israel and Italy. Jamaica and Japan. Korea and Kuwait. Pakistan and Peru. Serbia and Singapore. Uganda and the United Kingdom. In all, 52 nations have sent their best and brightest undergraduate business students to match wits in the GBCC since its 1999 launch.

Now this long-time importer of competitors is exporting inspiration.

Kindred competitions in Portugal, New Zealand, Belgium, Sudan and Colombia have been inspired by unforgettable GBCC experiences and informed by its best practices.

GBCC-Presentation2After Brendon Potter, student development and engagement manager at the University of Auckland Business School, brought a team to Seattle for its first international experience in 2004, he was moved to launch his school’s own champions league of case competitions. “Because of that invitation to the GBCC, we have established a significant case program of our own,” says Potter. “And it was the motivation to instigate our own Champions Trophy Case Competition in 2008, to which we’ve been delighted to welcome the Huskies on several occasions.”

Some 12,000 miles and a hemisphere away in Portugal, Renata Blanc de Melo had a similar response when she brought a team of students from the Universidade do Porto to the 2007 GBCC. The lecturer and senior consultant began drawing up plans to replicate the competitive and cultural experience and in 2013 launched the FEPUPORTO International Case Competition. “There is no case competition culture in Portugal, so being invited the first time was a departing point for us,” says Blanc. “And regarding our own competition, GBCC was undoubtedly a benchmark.”

This year, two former Foster students are instigating GBCC-style competitions to serve students in their respective corners of the world. Aysa Miller (BA 2004) and Nathan Bright (BA 2014) are both alumni of the Certificate of International Studies in Business (CISB), Foster’s nationally-ranked specialty program that gives undergrads a competitive edge in global business through language immersion, study or work abroad, and practical experience.

Miller, the economic and deputy commercial officer at the US Embassy in Khartoum, Sudan, has assembled a team of students representing three Sudanese universities to compete at this year’s GBCC. He’ll follow up with a local case competition hosted by the Ahfad University for Women—the first in the east African nation.

Bright, a teacher of international business, technology management and marketing at the Universidad de Manizales in Colombia, decided that a GBCC-style competition would benefit his students. To pull it off, he’s been working with Kathleen Hatch, assistant director of undergraduate programs at the Global Business Center.

GBCC-2014 winnersHatch offers open source guidance to Bright, Miller and any others seeking to replicate the life-changing experience that the GBCC annually delivers through its heady mix of company visits, social events, professional development, cultural exchange and rigorous competition to solve a real-world international business challenge.

She’s not surprised to see the competition’s effect rippling so far and wide.

“I think that GBCC has been an inspirational model to other business schools because it incorporates everything that is so critical to business education today—cross cultural communications, team work, and strategic thinking,” says Hatch. “It forces students to grapple with the complexities of doing business in today’s global landscape.”

Not to mention, it’s great fun.

This year’s Global Business Case Competition takes place April 13-18.

MBA leaders experience transition under pressure

This post was written by staff members from the Center for Leadership and Strategic Thinking

MBA studentsOn Friday March 13, the Center for Leadership and Strategic Thinking (CLST) and Foster MBA Association (MBAA) celebrated the upcoming leadership transition as elected 1st year students prepare to take over the reins from soon-to-graduate 2nd year students. This event is part of our year-long Leading Across Boundaries (LAB) workshops series. The theme chosen for this half-day event was to Transition under Pressure.

MBA studentsWorking in four parallel teams of six to eight students, each team was charged with designing a giant Rube Goldberg machine! Teams consisted of both 1st and 2nd year students. Machines were required to involve at least 4 transfers of energy from one “mini” machine or component to the next culminating in a final machine that would drop a weight into a cup. Armed with an array of materials including dominoes, mouse traps, springs, and marbles, second-year students were instructed to work on the upstream portion of the machine and first-year students were instructed to work on the downstream or terminal portion of the machine. Midway through the event, the facilitators transferred a key player from each team to another team and added design requirements. The purpose of this challenge was three-fold:  1. To focus on how well, under extreme time pressure, the 1st and 2nd year MBAs coordinated the effort and communication needed to make all parts of the machine connect and work as one; 2. To examine how well teams adapted to unexpected and disruptive changes in their structure and resources; and 3. To observe how leadership emerged and was shared to achieve the team’s objectives.

MBA studentsFollowing the ending of the game competition, feedback about how the teams worked to achieve their goals was provided by the judges – CLST’s Bruce Avolio and Chelley Patterson; 2012 alumnus, former MBAA Executive Vice President, and co-founder with CLST of the LAB series, Colin Beazley; and Director, Full-time MBA Student Affairs, Sigrid Olsen.

Many thanks to outgoing MBAA Executive Vice President, Soleil Kelley, for keeping the LAB tradition alive and for all his thought- and leg-work putting together this Rube Goldberg event! And now we move on to working with the new MBA leadership on the next LAB event as we move into the Spring quarter…

Watch video of the event below:

 

L.A.B. sessions enable MBA students to discuss topics of interest with business and community leaders while  developing their own leadership skills. The sessions are sponsored by MBAA and CLST. Visit CLST’s website to learn more.

Great reads: personal finance

Ask a group of finance and accounting faculty at the University of Washington Foster School of Business to recommend a book on personal finance and you wouldn’t expect to get a list of “Get Rich Quick” titles. Nor did we. Instead, our selected scholars dug deeper, offering more discerning picks to improve your command of investing and comprehension of the financial markets, with a couple of unorthodox choices and one clear favorite:

random-walk-down-wall-streetA Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Burton G. Malkiel)

“A great book that explains why the average retail investor should hold low-cost index funds (as I teach in my core MBA class). Don’t waste your time and money picking stocks since even the pros have a hard time beating the market. I hold the market and I always sleep very well at night!”
Thomas Gilbert, Assistant Professor of Finance.

“Malkiel discusses how capital markets work and explains in intuitive terms why they are as efficient as they are in a really approachable and interesting way.”
Lance Young, Senior Lecturer of Finance and Business Economics

“A classic primer on individual investing, this book is a great read for beginners and more advanced investors alike. Malkiel walks through basic investing strategies in a non-technical and entertaining way. I’ve recommended this book to several family members who were starting out on their own investing.”
Jennifer Koski, Associate Professor of Finance

“Malkiel is a Princeton economist and a long time Vanguard director.  Read the book and learn how to become a true ‘Boglehead.’ Diversify, buy and hold, minimize transactions costs. It really is that simple.”
Rocky Higgins, Professor of Finance

“A classic that provides a great overview over investing and keeping costs under control.”
Stephan Siegel, Associate Professor of Finance and Business Economics

undercover-economistThe Undercover Economist Strikes Back: How to Run—or Ruin—an Economy (Tim Harford)

“Fiscal and monetary policy have become the topic of dinner table conversations since the financial crisis. Harford provides an easy to access book on the different theories on how to create a thriving economy. It’s detailed enough to be useful but not so nuanced as to overwhelm readers less familiar with macroeconomics.”
Jonathan Brogaard, Assistant Professor of Finance

only-investment-guideThe Only Investment Guide You’ll Ever Need (Andrew Tobias)

“I first read this book when it came out in 1978. I then gave it to several non-academics to read, including my mother. It is simple, usually correct, often funny, and free of the jargon designed to make readers feel stupid. These characteristics put it way out front of the class of personal finance books. While the world was much different 30 years ago, I am confident the recent new editions will be very helpful.”
Ed Rice, Associate Professor of Finance and Business Economics

the-big-shortThe Big Short: Inside the Doomsday Machine (Michael Lewis)

“Lewis takes a look at five investors who figured out that the housing market was overvalued in 2005 and the travails they faced in ‘betting’ against the market. This illustrates how difficult it is to find mispriced assets in a capital market and how hard it can be to actually profit from the mispricing if you do manage to find it.”
Lance Young, Senior Lecturer in Finance and Business Economics

how-we-decideHow We Decide (Jonah Lehrer)

“A great book for someone who wants to understand the mental process underlying personal finance decisions.”
Frank Hodge, Professor of Accounting

 

 

financial-shockFinancial Shock: Global Panic and Government Bailouts – How We Got Here and What Must Be Done to Fix It (Mark Zandi)

“Zandi identifies the origins of the subprime financial crisis—the most important financial event since the Great Depression—and examines the impact the crisis had on financial markets, the economy and households.”
Frances Maloy, Lecturer of Finance and Business Economics

 

wall-street-journalThe Wall Street Journal, Money, Bloomberg BusinessWeek

“I really don’t read personal finance books, but I try to accumulate knowledge and ideas through these periodicals which do a pretty good job covering personal finance.”
William Bradford, Professor of Finance

 

dilbertDilbert and the Way of the Weasel (Scott Adams)

“I’m actually recommending125 words of this book by the creator of Dilbert. His Everything You Need to Know about Financial Planning is so sound that I teach it in my class and so concise that it fits in a book recommendation. Here’s the whole thing: ‘Make a will. Pay off your credit cards. Get term life insurance if you have a family to support. Fund your 401(k) to the maximum. Fund your IRA to the maximum. Buy a house if you want to live in a house and can afford it. Put six months’ expenses in a money market fund. Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement. If any of this confuses you, or you have something special going on (retirement, college planning, tax issues) hire a fee-based financial planner, not one who charges a percentage of your portfolio.’ ”
Jonathan Karpoff, Professor of Finance

Alaska Airlines Environmental Innovation Challenge awards $37,500 to student innovators

“Alaska Airlines wants to get better and better at being a leader in environmental responsibility, so today we’re here to learn from you,” said Joe Sprague, Alaska Airlines’ senior vice president for communications and external relations, in his welcome address at the 2015 Alaska Airlines Environmental Innovation Challenge.

The “you” he was speaking to was a group of 22 student teams from 7 colleges and universities across the state of Washington, gathered at the Seattle Center to pitch their innovations in clean technology, renewable energy and water resource management.

IMG_4148 (1)Throughout the afternoon these innovative and entrepreneurial students demonstrated their prototypes and fielded questions on everything from technology issues to market viability from a room full of 160+ judges and another 100 guests.

While all in attendance undoubtedly learned something from every team, only five teams went home with a portion of the $37,500 in prize money.

Congratulations to the winners of the 2015 Alaska Airlines Environmental Innovation Challenge!


 

$15,000 Grand Prize & $5,000 Clean Energy Prize

(sponsored by Wells Fargo and the UW Clean Energy Institute)

FireBee (University of Washington)

Student Team members:
Ryan Ahearn, undergraduate, mechanical engineering
Aaron Owen, undergraduate, mechanical engineering
Daniel Parrish, undergraduate, mechanical engineering

FireBee is a portable thermoelectric generator that turns cooking fires into personal power stations,  creating an alternative energy source for people in countries that are otherwise off the grid.
FireBee





$10,000 Second Place Prize

(sponsored by the Herbert B. Jones Foundation)

Hook (University of Washington)

Student Team Members:
Rahil Jain, graduate, electrical engineering
Robert Moehle, graduate , Foster School of Business
Hoolk_2ndPlace_EIC2015

Hook is a home automation hub that allows customers to convert existing electronics  to smart devices, decreasing energy consumption, improving home safety, and reducing the amount of electronics that are routinely discarded in landfills.


$2,500 Honorable Mentions

(sponsored by Starbucks,  UW CoMotion, and Puget Sound Energy)

EcoStream (University of Washington)

Student Team Members:
Michaela Byrne, graduate, Foster School of Business
Tianchi Liu, undergradaute, computer science & engineering
Ryan Osher, graduate, Foster School of Business
Shon Schmidt, graduate, bioengineering
Wenxuan Wu, undergraduate, electrical engineering
Han Ye, undergraduate, electrical engineering

IMG_0899 (1)

EcoStream builds awareness and lifelong habits to conserve our most valuable resource by helping people conserve water and change their usage habits in a fun and inexpensive way.

 

Ion Informatics (University of Washington)

Student Team Members:
Charles Daitch, graduate, Foster School of Business
Brendan Erickson, undergraduate, chemical engineering
Daniel Gilbert, undergraduate, chemical engineering
Matthew Murbach, graduate, chemical engineering
Uttara Sahaym, graduate, Foster School of Business
Arianna Whitten, undergraduate, chemical engineering

IMG_0942

Ion Informatics is developing a proprietary technology that provides critical information to battery operators, optimizing asset utilization and prolonging the useful life of the battery. The end effect is a dramatic increase in value that can be extracted from each battery by enabling viable second use battery systems.

 

 Bettery (University of Washington Tacoma)

Student Team Members:
Brendan Crawford, undergraduate, computer engineering
Chris Dejarlais, undergraduate, finance & computer science
Vishaal Diwan, undergraduate, computer science

Bettery provides a better model for battery use: a reusable subscription service that gives consumers unlimited access to reusable batteries with a monthly subscription.

The Alaska Airlines Environmental Innovation Challenge is presented by the Buerk Center for Entrepreneurship at the Foster School of Business, University of Washington.

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In Beijing, an internship worth yakking about

Guest post by Joyce Tang, Foster undergraduate and Certificate of International Studies in Business student

Joyce TangAt a recent Certificate of International Studies in Business (CISB) Alumni Panel, I heard a woman say she wished she had spent more time during her study abroad experience building a professional network, rather than only engaging with other students. I couldn’t agree more because I personally benefited from this decision while I was an exchange student at Peking University, the most prestigious higher learning institute in China.

After a meaningful summer internship in Shanghai, I knew I wanted to have more work experience while I was studying abroad. My resolve led me to find and accept an internship at a social enterprise called Khunu. This company produces premium yak wool apparel, while supporting the yak herders from whom the wool is sourced. With a great passion for social entrepreneurship and fashion, this was the perfect opportunity for me. Three days a week, I took a 45 minute commute—if I was lucky enough to squish my way onto the first subway that came during rush hour—to work and 45 minutes back to school.

During those three months, I learned things that turned my assumptions about China upside down. For example, I assumed most luxury fashion brands produced their products domestically to maintain quality and workmanship, but found out the factory we produced our apparel in was also used by a big name luxury label. It was also a lot smaller than I expected, as the picture in my head was of an enormous factory designed for mass production. Many people immediately think low quality when they hear the words manufacturing and China in the same sentence. However, this is not always the case. Khunu is one fashion label that is trying to redefine the “Made in China” tag.

What I learned at Khunu was reinforced at a panel discussion I recently attended on ethical sourcing, which was sponsored and organized by CISB and AIESEC. The vice presidents of global sourcing from Costco and Brooks Running Company spoke about the manufacturing, supplying, and operations practices of their respective companies. They emphasized the importance of setting a new market standard where businesses create value chains at every step of the process, rather than just supply chains. To accomplish this, the players at each stage of the chain—from cotton farmer to spinner to business to consumer—must demand and be provided fair compensation for the part they play. As I pursue a concentration and future career in operations and supply chain management, my experiences in CISB have played an invaluable part in helping me understand sustainable supply chains from both sides of the Pacific: Seattle and Beijing.

The honor and privilege of leadership

For B. Kevin Turner, Microsoft’s Chief Operating Officer, leadership is the greatest privilege in life. On Wednesday, April 1, Turner provided a thorough discussion on the lessons he learned about being a leader, interweaving stories from his years of experience with companies like Walmart and Microsoft. Topics ranged from the necessity of self-awareness and continuous self-improvement in leaders, to the significance of simplicity in all businesses.

Watch the full presentation below:

Taste of Foster: The Business of Wine

Taste of Foster panelists
From left to right: John Blair (Dunham Cellars), Angela Jacobs (WineGirl Wines), Bryan Maletis (Fat Cork), and Paul Zitarelli (Full Pull Wines)

Whether it’s tech, aerospace, or retail, Foster alums are often at the forefront of innovation and entrepreneurship. And in Washington’s wine industry, things are no different. With a focus on the business side of winemaking, the second annual Taste of Foster played host to a panel of four Foster alumni making waves in the burgeoning Pacific Northwest wine scene. Facilitated by Full Pull Wines owner/wine blogger Paul Zitarelli (MBA 2009), the panel included John Blair (MBA 2011), General Manager for Dunham Cellars, Angela Jacobs (MBA 2010), owner and winemaker for WineGirl Wines, and Bryan Maletis (EMBA 2010), owner of Fat Cork. Over the course of the evening, event attendees got to know a bit more about the panelists, their products, and their views on Washington’s growing wine industry. Below are a few highlights from the discussion.

Why do you think MBA’s aren’t well represented in the wine industry?
For John Blair, size is the issue. “A lot of wineries can’t afford to hire an MBA…I see that changing.” Bryan Maletis agreed with John, stating, “The big companies are getting bigger and there are more small startups. The big companies will be hiring MBAs.” Maletis also argued that more flexibility in state law will positively effect the number of MBAs in the wine business, especially when it comes to creating more direct-to-consumer experiences.

What are some misconceptions about the wine industry?
Be wary of over-romanticizing vineyard life says Angela Jacobs. “Living on a vineyard sounds fantastic,” she quipped, “but there’s frost in the winter and bugs in the summer. It’s amazing and rewarding but it’s not easy.” For John, it’s important to remember that a product is being sold. “It’s still a business,” he said, “a competitive business. I tell people when they go out to the grocery store that there isn’t a shelf more competitive that wine.”

Taste of Foster attendees

Advice for someone interested in getting involved in the wine industry?
Bryan advises those looking for a well-rounded sense of the wine business to set up informational interviews. “The most successful candidates ask to be connected with more people.” Drawing from his own experiences, Paul agreed, stating, “I definitely asked for more informational interviews.”

Looking toward the future, where do you see the Washington industry?
Pointing to the recent purchase of Columbia Winery by a California distributor and the success of Woodinville’s Chateau St. Michelle, John responded, “I think the sky’s the limit.” Angela agreed, stating, “Our market is not even close to saturation. It makes it possible for people like me to start a small winery.”

How do you maintain the balance between the heart and business of wine?
“I don’t think there is a balance,” said Jacobs semi-jokingly. “It’s an art, a science, and a business.”

See more photos of Taste of Foster: The Business of Wine on the Foster GOLD Facebook page. To be notified of upcoming alumni events, be sure to subscribe to the Foster Alumni event calendar.

Foster students brew up delivery solutions for Starbucks

Guest post by Josina Garnham, experiential learning manager

Starbucks winning teamThe warm chocolatey-caramel notes swirling through the air is what you notice first–often times before you even open the door. When you do enter the storefront, you are enveloped by the sound of well-selected jazz, the buzz of the espresso machine and the friendly baristas calling out the names of customers and their made-to-order beverages.

Starbucks, a ubiquitous brand globally and especially here in Seattle, is seeking to extend this experience from their stores to meet its customers’ just-in-time demands. Graduating seniors from the Foster School were invited to join Starbucks in developing solutions on how to deliver fresh beverages without compromising on quality and maintaining the company’s value of “delivering our very best in all we do.”

Each quarter the Foster School partners with a Seattle-based company to develop a customized business case as part of a required capstone course (MGMT430) for all graduating seniors. The case, written by Anna Fung, Foster PhD student, and overseen by Rick McPherson, course coordinator, presents an urgent business issue in a condensed format. The Foster Strategy Development Case Competition is one of the largest single-day case competitions in the world. This winter’s competition with Starbucks featured 54 teams comprised of over 225 students.

For Dave Twehues, director of Global Corporate Strategy, the decision to partner with the Foster School was an easy one: “I think the value of the case competition from Starbucks is twofold. First, the participation of our partners as judges is a great way for Starbucks to connect with future business leaders and second, the exposure to the creative solutions delivered by the student teams brings fresh perspectives to really difficult business problems.”

To develop a winning solution, the students focused on Starbucks’s mission and values: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Madeline Sykes, a senior finance major, noted, “it is important to do research on the company’s values and we knew Starbucks values its customers very highly. We started off our presentation by presenting a story about a target customer and the customer’s needs.”

Student teams have three weeks to research the issue and prepare presentations summarizing their recommendations to business leaders—both Foster alumni and Starbucks employees who serve as judges. For Matt Hansen, an accounting major, “the Q&A section…is the hardest part to prepare for. This is one area that our team spent a lot of time focusing on because it is where groups can differentiate themselves by their ability to think on their feet and shows how confident they are in their business proposal/strategy.”

The winning team of Renee Chiang, Allison Gaylor, Matt Hansen, Rebecca Ruh, Kamal Sohal, and Madeline Sykes proposed meeting the challenge of delivering Starbucks beverages with the solution of creating smaller satellite “stores” which would focus on preparing drinks for delivery exclusively. Current stores maintain a brisk business with customers walking in the doors. The student’s research—including frequenting area Starbucks cafes—led them to hypothesize that increasing demands on these storefronts for delivery orders would slow service in both areas. From these small-scale, delivery-focused beverage outlets, bike messengers would be deployed to deliver both hot and cold drinks in specially designed temperature controlled bags.

Beyond understanding the company’s values, having a strong situation analysis, well-justified idea, and presenting their solution in a clear and compelling way, what really differentiates teams are their interpersonal dynamics. Ruh said, “Our success in the case competition was rooted in the relaxed, yet focused environment we created. Our vision developed alongside our team synergy. Taking this experience into the future, the strengths of lightheartedness and creativity, are key components that will define future teamwork endeavors, essential in today’s business world.”

“What I learned about teamwork and team dynamics I will definitely…take with me to my future career” said Renee Chiang. “This was my first time participating in a case competition and it taught me to be confident with myself and my ideas. That confidence would definitely be something I hope to apply to my career—from negotiation to pitching my ideas.”

On March 18, 2015 Starbucks announced the launch of delivery services in Seattle and New York City. Foster School of Business students will be amongst the first to be delighted by having a perfectly prepared, hand-delivered cup of coffee to fuel their last quarter of studies before graduating in June.

To learn more about previous Strategy Development Case Competitions please see our competition webpage and the following Foster Unplugged posts: Alaska Airlines and
Seattle City Light

Designed for this international internship

Guest post by Joyce Tang, Foster undergraduate student and Certificate of International Studies in Business student

Joyce Tang
Joyce Tang
It’s never too early to start. That’s what I was thinking when I replied to a vague email about a summer internship opportunity abroad. After getting the internship, what ensued was the development of my skills as a professional designer, project manager of programmers, and an expert print shop price haggler. The first role I was able to experience from the comfort of my own room and the last two I did across the Pacific Ocean in China.

The company I interned at was a startup in Shanghai called Sino Society. The business specialized in international real estate marketing to wealthy Chinese home buyers. Real estate was never an industry I expected to be in, but the promise of getting to live and work in China for a summer sounded like an invaluable experience. With that in mind, I said yes to working remotely for seven months on a probationary basis. During this time, I conducted weekly conference calls that led to a greater understanding of the company’s business model, China’s consumer environment, and–to my delight–that I was capable of being a graphic designer.

Since junior high, I had taken up design as a hobby and almost majored in design, but chose to pursue business because I wanted the skills to build my own business. I figured the design projects would come later, but here I was at my first internship getting to do what I loved most. It seemed like no coincidence when I found out in a conference call that I was to start a project using Adobe Indesign during the same week I had taken an introductory course on the program through Odegaard Library’s free workshop resource. This initial assignment led to creating an entire series of business collateral used for sales pitches to our company’s international clients. My design was translated into Spanish, Italian, Dutch, and Chinese. Without receiving extensive training, I was able to learn by doing real-work assignments and am now proficiently using the program.

At the end of May, my probationary period ended and the company asked me to come to Shanghai to continue for the summer. Contrary to what many might expect of startups, Sino Society provided my round trip ticket to Shanghai. Working in the heart of the city, I continued my marketing projects, but secretly wanted a hand in the technology side of things. My involvement in the Lavin Entrepreneurship Program built up my experience and fascination with the tech space. I asked my boss if I could take on more projects relating to the technology side of the business, which led me to being a project manager of Chinese programmers. After only one meeting, it became pretty clear there was a language barrier, so I gave myself the goal of learning the Chinese phrases for IT terms. Meanwhile, I was occasionally tasked with the grunt work of making print shop runs with the goal of lowering our cost for bulk print jobs. By the end of the summer, I had perfected things I always thought were my weaknesses: communicating about technical topics in Chinese and haggling with locals. And guess what? I’m still happily doing side design projects with Sino Society in my free time.

Learn more about the Certificate of International Studies in Business and Lavin Entrepreneurship Program.

UW Center for Sales and Marketing Hosts Customer Engagement Workshop

Professionals from around the Northwest attended the Foster Sales and Marketing Center's workshop on Customer Engagement.

Engagement: firms’ initiatives to occupy the attention of an existing customer by providing special benefits and experiences that go beyond the core offering.

            The UW Center for Sales and Marketing Strategy hosted a Designing Customer Engagement Strategies to Increase Customer Advocacy and Performance workshop on Thursday, March 12th. The workshop started at the Burke Museum with drinks and networking, and then the group moved into Paccar Hall for the workshop presentations. Key speakers were Derek Drake, CEO of DriveShop and Colleen Harmeling, Ph.D., a Postdoctoral Research Fellow at the Center for Sales and Marketing. Attendees included representatives from Starbucks, Microsoft, Swedish Medical Center, Sila Solutions Groups, James Hardie Building Products, Accenture, Cats’ Exotics, ACS Technologies, BECU, PACCAR Parts, Geocaching HQ, and many others.

            The presentations started with introductions and examples of engagement. Derek Drake spoke about his company, DriveShop. DriveShop is a leader in automotive engagement strategies. Their motto is: “We create driving experiences that inspire people to fall in love with their next new car.” DriveShop works with automobile manufacturers to set up customer engagement experiences for their cars. The company had experienced huge success due to the effectiveness of their customer engagement programs. Derek Drake spoke about the importance of engagement marketing: 96% of consumers who participate in an engagement activity of some sort are more likely to purchase. This element of promotion is growing; In 2015, experiential engagement investments grew 29% for brand marketers.

            What is an example of customer engagement? DriveShop was hired by Maserati to promote their new 4-wheel drive car. Through extensive customer and market research, DriveShop decided the ideal place to create a customer experience driving the new Maserati would be Aspen Snowmass. Aspen Snowmass is a luxury ski resort in near Aspen, Colorado. DriveShop developed partnerships with hotels, retailers, and restaurants to display the cars in front. The company hosted “après ski” receptions to schedule drive appointments. DriveShop exceeded their goal of 650 1-hour winter drive experience appointments with a professional driver in 3 weeks. The strategy was so effective that Maseratis were being sold on the spot.

            Next, Colleen Harmeling, Ph.D. spoke about the Theory of Customer Engagement. Interest in customer engagement has grown in recent years, and more firms (such as Budweiser, Enterprise, and MasterCard) are hiring Customer Engagement Directors. Firms are switching to service-based models and consumers have a desire for a deep connection with products, that is, they are seeking experiential consumption. Customer engagement can benefit firms by differentiating their product from “me too” products (product that are similar to a competitor’s product in order to prevent that competitor from maximizing their market share.) Also, when a customer has an emotional connection to the brand, rational considerations – like price – play a less important role.

            There are two types of engagement: experiential and activity. Both are important because engagement influences the perception of a company’s core offering. Experiential memories are as important as true product performance or brand connections in a customer’s decision to buy. Colleen talked about each of these types of loyalty, their pros and cons, and how to achieve them in detail.

            The next part of the presentations was 3 Steps for Engineering Effective Engagement. The first step is to generate data-driven insights, both qualitative and quantitative. Next, firms must design engagement programs, selecting the type of experience, target audience, and designing activity-based and experiential-based strategies. Finally, companies should test the programs on a small scale and make any changes necessary before fully implementing them.

            The workshop ended with an invitation to all attendees to join the Customer Engagement Special Interest Group (SIG). Special Interest Groups enable 7 to 10 non-competitive managers interested in the same topic to benchmark and learn from each other and network. SIG’s are led by academics from the Center for Sales and Marketing Strategy, who analyze data and solve problems to help firms achieve their goals.

            The Center for Sales and Marketing Strategy’s mission is to align important sales and marketing problems with academic research and analysis techniques to develop strategies that improve business performance and facilitate business-academic collaboration to create and disseminate sales and marketing knowledge. The business model is that businesses get access to academics with deep knowledge in specific areas from around the world and researchers get access to current problems and rich data sets. Workshops and Special Interest Groups are just two of the many ways the Center for Sales and Marketing accomplishes these goals.

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