HSB Review - Spring 2009 by Saint Joseph's University

HSB Review Saint Josephâ&#x20AC;&#x2122;s University

Lessons from Wall Street, page 4

Spring 2009

Erivan K. Haub School of Business

Directors and Board of Visitors 2008-2009 Dean Joseph A. DiAngelo Jr., Ed.D. ’70

Letter from the Dean The current economic climate has impacted families and businesses around the globe, and business education is no exception. At the Haub School of Business, professors have responded to the financial crisis by working with students to dissect the events of the past year and to help them better understand finance theory and its practical application. Undergraduate finance students offer their reactions to this approach in our cover story. This issue of HSB Review also offers the personal testimony of a University College student who is using business management and food marketing applications to advance her family business into the next generation. Through curriculum improvements, academic programming and faculty mentoring, the Haub School primes student entrepreneurs with the management skills needed to execute their business plans. You will learn more about these initiatives, as well as others, including the success of the Energy School and the Academy of Risk Management and Insurance; faculty research; and this year’s Erivan K. Haub School of Business Hall of Fame recipient. The Haub School sees these uncertain times as an opportunity to prepare our students for their immediate futures. With a stronger focus on accountability coming from the top levels of government, we at Haub remain committed to graduating tomorrow’s business leaders who possess a sense of ethics and responsibility, leadership and sound judgment.

Associate Dean, Academic Affairs Stephen Porth, Ph.D. ’80 Associate Dean Patrick O’Brien Assistant Dean Vana Zervanos

Editor Carolyn Steigleman Managing Editor Harriet Goodheart Design Carol McLaughlin ’80

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Managing Partner, The Roseview Group

Bruce Crawley ’67 Milennium 3 Management

Richard Devine ’82

Decision and Systems Sciences, Chair Richard Herschel, Ph.D.

Marlene S. Dooner ’83

Finance, Chair Karen Hogan, Ph.D.

Robert Falese ’69

Food Marketing, Chair John Stanton, Ph.D.

Sharon Gallagher ’85

Management, Chair Elizabeth Doherty, Ph.D.

John Griffin ’78

Marketing, Chair Diane Phillips, Ph.D.

Timothy J. Maguire ’88

Pharmaceutical Marketing, Chair Thani Jambulingam, Ph.D. Pedro Arrupe Center for Business Ethics, Director, John McCall, Ph.D. Advising Center, Director, Bruce Bidinger, S.J. Professional Practice, Director Todd Krug, Ph.D. Graduate Programs, Director Adele Foley ’61 (M.B.A. ’82) Executive M.B.A., Director Terese Waldron Food Marketing M.S., Director Christine Hartman Pharmaceutical Marketing M.B.A., Director, Terese Waldron International Marketing, Director Christine Kaczmar-Russo ’83 Business Intelligence M.S., Human Resource Management M.S., Director, Patricia Rafferty Academy of Risk Management and Insurance, Executive Director David Benglian (M.B.A. ’92)

President, The Haverford Trust Company

Contributors Carolyn Steigleman Maureen Catalano

Vincent J. Costantini ’68

Partner and CFO Smart and Associates LLP

Chairman Joseph J. McLaughlin, Jr. ’81

Photography Melissa Kelly

First Vice President CB Richard Ellis, Inc.

Accounting, Chair Joseph Ragan ’69

Erivan K. Haub School of Business Board of Visitors 2008-2009*

HSB Review

Kathie Carr

Vice President, Comcast Corporation

Chair, TD Bank

Director, IBM Global Services

President, Zeke Capital Advisors, LLC

Senior Executive Vice President Karr Barth Associates

Joseph Mahoney ’76 Executive Vice President Greater Philadelphia Chamber of Commerce

Hank Mullaney President Northeast Region Wal-Mart

Dr. Joan Parker Labor and Employment Arbitrator and Mediator

Albert G. Pastino ’64 Managing Director Amper Investment Banking, LLC

Joanna Savvides President, World Trade Center of Greater Philadelphia

John Smithson ’68 Senior Vice President Towers Perrin Reinsurance

Sean Sweeney (M.B.A. ’94 ) Executive Vice President Philadelphia Insurance Companies

David Tierno ’63 Managing Director – Retired Ernst & Young Worldwide

David L. Toner Jr. ’83 Senior Vice President, Citigroup Global Corporate & Investment Bank

Gerriane Tringali DiPiano President and CEO Femme Pharma

Robert Bowman ’81 Regional Managing Director Merrill Lynch

Patrick Burke Principal, Vanguard Group

Anthony Carfagno ’60 President Pharmaceutical Quality Institute

Richard Welsh ’62 Senior Vice President Wachovia Securities, LLC *The Haub School Dean, Associate Deans, Faculty Chairs, and Directors listed above are also members of the Haub School of Business Board of Visitors ex officio.

Nerney Honored with HSB Hall of Fame Award

Erivan K. Haub School of Business Hall of Fame Award honoring

‫ﱡﱡﱡﱣ‬

‫ﱢﱡﱡﱡ‬

The Erivan K. Haub School of Business will recognize Thomas Nerney ’96 (M.B.A.), chairman, president and chief executive officer of United States Liability Insurance Group, with the 19th Annual Hall of Fame Award during a dinner and award presentation on April 23. As the recipient of this award, Nerney will be acknowledged for his outstanding community work, strong corporate leadership and management qualities. “This prestigious award recognizes business leaders who exemplify the characNerney ’96 teristics of excellence the school of business seeks to foster in its students,” said Joseph DiAngelo, Ed.D. ’70, dean of the Erivan K. Haub School of Business. “Tom joins a growing list of impressive successors who have expertly shaped the business world.” At the helm of United States Liability Insurance Group, Nerney brings nearly three decades of leadership experience to his role. Located in Wayne, Pa., the company — specializing in underwriting low-premium, low-hazard insurance products — is a wholly owned subsidiary of Berskshire Hathaway owned by Warren Buffett. Nerney’s insurance career began directly after college when he worked as a managing general agent for Maguire Insurance Agency and sold specialty insurance products throughout the United States. In 1985, the agency evolved from a managing general agent to Philadelphia Insurance Company. When the company went public in 1993, Nerney assumed the responsibility of president and chief operating officer until taking over at United States Liability Insurance Group in 1996. While making his mark in the insurance industry, Nerney simultaneously left his mark on his local community. He is a founding member of three not-for-profit organizations: Good Sports of Wayne, which supports local charities through an annual fundraising event; A Front Row Seat to Learning, which gives students from low-income families an opportunity to pursue private education in Philadelphia; and The Nerney Foundation, which supports LaSalle Academy in Philadelphia. The Hall of Fame Award dinner will take place at the Hyatt Regency Philadelphia at Penn's Landing on Thursday, April 23, 2009, at 6 p.m. For additional information, contact Mary Finelli at 610-660-1645 or mfinelli@sju.edu.

Thomas Nerney ’96 Thursday, April 23, 2009 6:00 p.m. Reception 7:00 p.m. Dinner and Award Presentation Hyatt Regency Philadelphia at Penn’s Landing 201 South Christopher Columbus Boulevard Philadelphia, Pennsylvania

For additional information contact Mary Finelli at 610.660.1645 or mfinelli@sju.edu

‫ﱢﱡﱡﱡﱡﱡﱣ‬ Each year the Erivan K. Haub School of Business at Saint Joseph’s University recognizes outstanding corporate citizens chosen for their leadership and management qualities. Award recipients are business leaders exemplifying the qualities and characteristics of leadership and management excellence the School of Business seeks to develop in its students. We are proud to announce the 19th Annual Hall of Fame Award recipient.

Spring 2009 |

Lessons from Wall Street: HSB reacts to the global financial crisis “It’s a nice time to be a finance student,” said Taylor Mahanna ’09. The comment may raise some eyebrows given the current economic climate, but Mahanna’s enthusiasm for her major is a testament to the way professors in the Haub School of Business are teaching their students about finance. In a peaceful economy, when the Dow doesn’t rise or fall with the recklessness of the latest celebrity’s popularity, students aren’t always capable of seeing the theoretical lessons of their textbook translated into real and familiar settings. Mahanna, a student in Christopher Coyne, Ph.D.’s ’67 retirement planning course, said the finance classes at HSB have taken an interesting turn. “This is hands-on learning,” she said. “Not only are we studying finance theory, we’re able to observe the mistakes these companies have made to contribute to the global financial crisis.” During his class, Coyne, an associate professor of finance, pointed to patterns of behavior some executives exhibited prior to Wall Street’s collapse. “Using the financial crisis, I’m able to bridge the theory in their textbooks into a discussion about what works in finance and what doesn’t,” he said. For the students involved in HSB’s studentmanaged investment (SMI) fund, the financial crisis has been a roller coaster ride. These students make tough financial decisions using real money; the fund

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started with $61,000 in 2004 and had grown to $128,000 in 2007. “The only stock we own that has held up well is Walmart, in the consumer staples sector,” explained portfolio manager Tanya Lal ’09. “Unfortunately, we haven’t been as lucky with the other picks in that sector.” Just last year, SMI earned honors at the University of Dayton Redefining Investment Education Conference and Portfolio Competition by outperforming the S&P 500. As of November 2008, however, the SMI fund was down 30 percent. Ahmet Tezel, Ph.D., associate professor of finance, advises the students and said the group sold 44 percent of its stock and went to cash in October 2008. “The group was reluctant to sell because fundamentally, these were good stocks,” explained Tezel. “But the market doesn’t care — everything is selling.” The magnitude of the crisis was not something that the students, much like professional investors, had expected. “Initially, we planned to ride it out with the existing portfolio — hoping we would not lose too much money,” said Lal. “But we have had to make some decisions and sell some stocks earlier than planned as a result of these conditions.” When Lehman Brothers declared bankruptcy, a domino effect ensued that caught investors off guard, and also rattled Amy Lipton, Ph.D.’s syllabus.

Instead of teaching business undergraduates about the general calculations of risk and return, Lipton seized the opportunity to teach students about what she knows best — the mechanics of Wall Street. Lipton, an assistant professor of finance who spent years managing multi-million dollar accounts on Wall Street, said “This was one of those rare, teachable moments.” Ironically, Lipton was a college senior in the fall of 1987, during another big stock market plunge, and is able to empathize with finance students about the job market they’re facing. “I’m looking into graduate school instead of entering the workforce,” said Suzy Herlihy ’09, a finance major who is reconsidering her plans after graduation. “School is a lot more appealing now than it was six months ago.” Despite the economy, Matthew Brink, director of the Career Development Center at SJU, said the entry-level market for graduates isn’t as dire as many think. “Wall Street firms are definitely affected by the downturn, and students interested in that location will likely see the impact of that with regard to decreased availability of internships and fulltime jobs,” he explained. “But outside of Wall Street, the entrylevel job market still seems to be relatively strong.” Even so, Joseph DiAngelo, Ed.D. ’70, dean of HSB, admitted there’s a lot of hesitation in the employment community. “The investment banks in New York have gotten hit hard. So the schools who send a number of their students to New York have been hurt badly,” he said. “The good news for SJU grads is a high percentage of them tend to find work in industries that are still hiring.” He adds that students can improve their job prospects by diversifying their skills. Many of the working graduate students enrolled in the executive M.B.A. program are heeding DiAngelo’s advice. “These students are pursuing their degree because they know they need to go above and beyond now,” said Dan Jubinski, Ph.D., an assistant professor of finance who teaches economics to E.M.B.A. students. “The EMBA increases their marketability.” The teaching of business ethics, the hallmark of an HSB education, also gives SJU graduates a competitive edge over their peers, according to John J. McCall, Ph.D., professor and director of HSB’s Pedro Arrupe Center for Business Ethics. He says there were ethical lessons to be learned at “every stage” of the financial crisis, from borrowers to brokers, lending banks to investment banks.

Tanya Lal ’09 portfolio manager for SMI.

“There was a culpable refusal to acknowledge risk and historical experience,” states McCall. “We want students to see that when pure self-interest is not limited by regulatory institutions or by moral values, it almost inevitably leads to serious damage to the public welfare.” Carolin Shellhorn, Ph.D., believes this kind of exclusive pursuit of financial wealth contributed to Wall Street’s woes. “Currently, several countries, including the U.S., are trying to set caps on executive compensation,” she explained. “In my view, that is an important step toward breaking this vicious cycle of managers being compared to their peers, and everyone doing what everyone else does. Eventually, the problem got so big that the government had to step in and bail everyone out. The quintessential investor Warren Buffett, chief executive of Berkshire Hathaway, offers this advice to his followers: “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.” Karen Hogan, Ph.D., chair and professor of finance, said by studying the financial theory and practice they learn in HSB’s finance program, students will follow Buffet’s advice and understand the fundamental differences between what makes a strong long-term buy in the market. Hogan believes HSB graduates will be ethical leaders in their chosen fields. “We, in HSB, are training the kind of managers who are interested in running a business or managing a portfolio using ethical behavior and common sense,” she said.

SJU Professors / Lessons from Wall St.

Coyne

Lipton

Jubinski

Shellhorn Spring 2009 |

Boosting Milk Production One Micro Dairy at a Time Virginia Miori, Ph.D., assistant professor of decision and system sciences, is thinking a lot about milk these days. She has boosted milk production and cut costs at two micro dairies with plans for installing her model at eight more dairies across the country. Her secret — a production scheduling model she developed to change the way farmers process the milk we drink. Over the course of one month, Miori has increased each micro dairy's output by seven percent, amounting to 3,300 additional gallons of milk and almost 240,000 additional gallons annually. These are significant numbers, given the pressures on the industry. “Dairy farmers across the country are burdened with the cost of producing milk and keeping up with consumer demand,” explained Miori. Improvements in equipment technologies and the re-design of the one-gallon milk jug sold to wholesalers have alleviated some of these pressures, but she says significant improvements are still needed. When Miori examined the production lines at each of the micro dairies, she realized how a scheduling model that she originally developed for the trucking industry could improve their operating efficiencies. When micro dairies process milk, they take into consideration consumers' preferences — ranging from type of milk to packaging. The production line typically runs according to product type. “Milk is initially produced in two variations:

skim and whole,” said Miori. “All varieties of milk can be produced through adjusting the ratios of whole and skim released by filling machines.” By looking closely at this process, Miori was able to identify lags in the production line. “When the milk is run according to type, several transitions take place,” she explained. “Transitions in the dairy operation take the form of cleaning cycles and packaging in single, two-packs or fourpacks of gallons.” Miori’s scheduling model shifted the traditional practice of running the production based on milk type to a process where the milk is produced according to transition. Once her schedule was implemented, dairy farmers saw an 82 percent reduction in unproductive time and more than a 71 percent reduction in the number of transitions. Brian Polaski of RoviSys, an automation company that sells and works directly with micro dairies to implement Miori's schedule, said the best thing about the model is the flexibility it offers farmers. “We work with these micro dairies to optimize their operations. Miori’s model accomplishes this objective, while giving the micro dairies an opportunity to tailor the schedule to their specific needs.” As these micro dairies expand their operations, Polaski believes Miori’s scheduling model will have an even greater impact.

Conflicting Messages on What to Eat When You’re Expecting Pregnant women often receive conflicting messages about what foods to avoid during their pregnancies. One of the most confusing health messages for women is the recommended guidelines for eating fish. In a recent study, Nancy Childs, Ph.D., professor of food marketing, and research colleagues, warned this decreased consumption of fish among childbearing, pregnant and lactating women, and young children is likely to have detrimental consequences to public health. “It is conservatively estimated that 73 percent, or two million women, may not be consuming enough low-mercury fish during their pregnancy,” noted Childs. “By decreasing the amount of fish they eat, rather than just minimizing their 6

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consumption of the large fish, pregnant women are missing the advantages of this low fat, high protein component of a healthy diet.” In 2004, the Environmental Protection Agency and the Food and Drug Administration issued a joint advisory to pregnant and nursing women warning that excessive consumption of high mercury fish can have dangerous neurological consequences to infants and young children. Methylmercury, the toxic metal found in all fish, is present at the highest levels among swordfish, shark, bluefin mackerel, tilefish and tuna. “It’s really about which fish, how much is eaten, and who is consuming the fish that’s important. The ideal message will encourage the replacement of high

Childs

mercury fish with low mercury fish,” said Childs. “And until a multi-agency sophisticated consumer communication is developed, health professionals need to be diligent in educating their patients on fish consumption.” Childs and her co-authors published “Review of Food Policy and Consumer Issues of Mercury in Fish” in the most recent issue of the Journal of the American College of Nutrition.

Decision and System Sciences Honored with Chapter Award Saint Joseph’s University’s chapter of Alpha Iota Delta – Alpha Mu, the International Honors Society for Information Systems and Decision Sciences (DSS), was awarded Chapter of the Year during a Nov. 23 ceremony in Baltimore, MD. Ruben Mendoza, Ph.D., assistant professor of decision and system sciences, was honored at the event with the Faculty Sponsor of the Year award. SJU’s Alpha Iota Delta – Alpha Mu chapter was founded in 2006 for students pursuing a business degree in DSS and/or business intelligence. Since its formation, 52 undergraduate, graduate and faculty members have been inducted into the society. SJU’s chapter operates with financial support from the Smart Group, LLC, an international business advisory, consulting and accounting organization. Dan McDevitt ’07 (B.S.) ’08 (M.B.A.) was one of the first SJU students inducted into Alpha Mu, and served as vice president of the chapter for two years. “Alpha Mu recognizes students for their hard work in this field,” said McDevitt. “It’s a great honor to be recognized by the organization for our academic achievements.” Eligibility for undergraduate DSS majors is a cumulative G.P.A. of 3.50 or more for juniors, and a G.P.A. of 3.25 or more for seniors and graduate students. McDevitt adds that because the honor society is internationally recognized, it’s a “great resume builder.” Mendoza, who was honored for his leadership, is proud of his group of students. “We are a young organization, so it's nice to receive validation that what we are doing reflects the spirit and direction the national organization wants to take.” “Personally,” he reflected, “it is deeply gratifying to be recognized for the work I do with our students with the Faculty Sponsor of the Year award. I am very proud of the student officers of the Alpha Mu chapter for helping me with all activities, and for the energy and enthusiasm they bring to our collaboration.”

Finance Professor Recognized with Distinguished Appointment

Heck

The Social Science Research Network (SSRN) recently appointed Jean Heck, Ph.D., associate professor of finance, to the advisory board of its History of Finance eJournal. “The purpose of the journal is for financial experts and researchers to keep up-to-date on what their colleagues are doing,” Heck said. The eJournal is home to hundreds of thousands of working papers and abstracts related to finance. Academics can access the site and read posted papers as well as upload their own research. Out of over 100,000 authors published in SSRN’s eLibrary, Heck is the 786th most downloaded author in finance, a figure that puts him in the top one percent. His work, Establishing a Pecking Order for Finance Academics: Ranking of U.S. Finance Doctoral Programs, is the 208th most downloaded out of nearly 200,000 full text papers. Heck joins colleagues on the board from such prestigious institutions as Harvard University, Yale University, New York University, Dartmouth College, Duke University, Columbia University and the University of Notre Dame, to name a few. Harry Markowitz, a 1990 Nobel Laureate in Economic Sciences is also a fellow board member. A longtime member of the SSRN, Heck believes that he was chosen to join the advisory board because of his extensive expertise in the history of finance. His Web site, econlibrary.com, contains over half a million citations for business and economic references from over 500 academic journals published since 1950. “I’m a reference point,” Heck said. “I enjoy being able to provide others with information about research activity in the field of finance.”

Mendoza Spring 2009 |

Bringing the family business into the 21st century The aroma of baking pepperoni bread and freshly made tomato pie are unmistakable as you enter the door to Marchiano’s Bakery. On some days, the entire Marchiano family is scuttling busily behind the counter, answering phones, preparing orders and helping customers. Most of the time, however, it’s just Daneen, who was only 21 years old when she took over her father’s bakery in Manayunk. “I thought I was helping him for a few months,” said Daneen, who was in college in Florida at the time. “The plan was to help him for the summer, but I ended up staying.” Although Daneen’s plan wasn’t always to run the family business, her father’s heart attack in 2003 compelled her to take the reins of the business he built out of his mother’s basement in her small row home in Manayunk. Now 26 and a University College student at Saint Joseph’s, Daneen both runs Marchiano’s Bakery full-time and takes a full course load as a food marketing major. “I’m burning the candle at both ends, but I’m a good student,” she confirmed. For two years she ran the business with little or no help from anyone, as her parents permanently relocated to Florida but commute back and forth to Philadelphia regularly. “It’s been an uphill battle,” Daneen admitted. “I was thrown into the mix head first.” “ I have learned so much through my economics class about supply and demand, and I think our business has the potential to be operating above the curve.”

When Daneen realized she would be running the business long-term, she decided to head back to school and finish her degree. Her father suggested she attend Saint Joseph’s for food marketing so she could eventually further the bakery’s interests. “My dad told me that he knew the business had a lot of potential,” recalled Daneen. “He said it

Daneen and Frank Marchiano

was about time he started to hand the business over to me little by little.” He was right. Though she had minimal prior experience in business management, Daneen’s hard work has expanded Marchiano’s Bakery to the point where it is literally outgrowing its walls. In fact, the bakery was so bombarded this past holiday season that they had to stop taking orders on Dec. 15. The entire operation is based out of a three-story row home on Umbria Street. Baking takes place on all three levels, but with the business’s rapid growth, there is not enough room to accommodate all of its orders. To solve this problem, Daneen and her father plan to look for an off-site manufacturing facility to bake the inventory while still maintaining the storefront shop in Manayunk. “Ideally, I would like to have all of the baking done in an off-site facility, so

that we can produce our products in much greater quantities,” she said. Daneen won’t take all of the credit for the success of the business. "My father grew his bakery by creating personal relationships with his clients," Daneen said. “He orients himself around customer service. This is what keeps people coming back year after year.” While Daneen thinks the service is what makes Marchiano’s so popular, the critics agree that the food is top-notch, as well. Its tomato pie won Philadelphia Magazine’s Best of Philly™ 2006 and Main Line Today Magazine’s “Best of Main Line Critics Choice 2007” awards. Yet despite Marchiano’s accolades and rapid growth, several aspects of its operations are dated and need an upgrade. Currently, the bakery only accepts cash and all of the bookwork and ordering is done by hand. Revenue is based mostly on repeat business, and they (continued on page 10)

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Hess Corporation Supports Business Education at SJU

Representatives from Hess present HSB with donation.

Hess Corporation recently donated $25,000 to Saint Joseph’s University to support student scholarships and the Erivan K. Haub School of Business’ annual business policy competition. Hess Corporation, a global integrated energy company, works closely with the Career Development Center (CDC) at Saint Joseph’s to recruit students for internships and jobs. “About three years into the relationship, we became one of their preferred target schools for their retail business,” said Matthew Brink, director of the CDC. According to Brink, Hess has had very good success in hiring Saint Joseph’s graduates for their management

training program. “It’s rewarding to know that our graduates are so impressive that organizations are moved to support Saint Joseph’s in this very generous way,” he said. As part of the donation, $5,000 scholarships will be awarded to three undergraduate business school students. The Haub School’s annual business policy competition, offered at the end of each fall and spring semester, will benefit from $10,000. Business policy is a course where students divide into teams of four or five and delve into various businesses and organizations to develop strategic plans for them. The teams then present the plans to their classmates and instructors at the semester’s end. The best plan from each of the course’s six sections advances to the business policy competition where an executive panel judges them on the content of the plans and the quality of the presentations. According to Marcel White ’07, division director of human resources for Hess’ retail marketing business and a Saint Joseph’s E.M.B.A. alumnus, the business policy competition is another example of Saint Joseph’s commitment to preparing students for success in the business world. “Saint Joseph’s students benefit from the effectiveness of the management training program, which in turn benefits companies like Hess as we look to build a strong team,” White says. “We’re pleased to support Saint Joseph’s business policy competition and to offer scholarships to deserving students.”

’The Energy School’ Catastrophic events like the tropical storms and hurricanes that have pounded the U.S. Atlantic and Gulf coasts since 2004 have threatened our country’s energy resources. "Unanticipated disasters like these, whether from natural occurrences or man-made tragedies like the Exxon Valdez oil spill or the Three Mile Island accident, create an insurance nightmare for risk managers," said Sam Cupp, executive-in-residence in risk management and insurance at Saint Joseph’s. From Oct. 19 – 24, “The Energy School,” a new program at SJU, offered a forum to aid risk managers in adapting to the challenges of protecting our nation’s energy companies from shattering losses like the ones Cupp described. The event was sponsored by The OIL Group of Companies, Energy Insurance Mutual Ltd., Nuclear Electric Insurance Ltd., and Saint Joseph’s University’s Erivan K. Haub School of Business. Attendees of "The Energy School" were risk managers from all facets of the energy industry who spent their time interacting with colleagues and hearing remarks from government officials and energy and insurance executives. Among those speaking at the event included outgoing Department of Environmental Protection Secretary Kathleen McGinty ’85, and Marsh & McLennan Chief Executive, Brian Duperreault ’69.

Part of the program also included table top exercises which offered attendees an opportunity to simulate a security threat to the U.S. energy market. "The Energy School" examined catastrophic occurrences and studied their implications for insurance policies during the conference. The agenda also included discussions of environmental issues, working through complex claims, interpretations for enterprise risk management, project financing, crisis management, general liability issues, ethics and the future of energy. Saint Joseph’s administrators participating in the conference included Joseph DiAngelo, Ed.D. ’70, dean of the Haub School of Business; Sam Cupp, executivein-residence in risk management and insurance; Tim Boyce of the Early Responders Distance Learning Center; John McCall, Ph.D., director of the Pedro Arrupe Center for Business Ethics and professor of management and philosophy; and David Steingard, Ph.D., assistant director of the Arrupe Center and assistant professor of management. Executives from Towers Perrin, Aon Risk Services of Texas, Nexen, Inc., The OIL Group of Companies, Exelon Corp., Sunoco, Dempsey Partners, Energy Insurance Mutual Ltd., and Nuclear Electric Insurance Ltd. also spoke at the event. Spring 2009 |

Family Business,

continued from page 8

rely on word-of-mouth as the primary source of advertising. “It was a big deal when my dad let us get a computer in the office a few years ago,” Daneen joked. “Even then, it didn’t have the Internet or Microsoft Word.” “My father has done a wonderful job building the business with my mom, but it’s still an old-world bakery,” she explained. “We need to make some changes.” Daneen, who will graduate this spring, is taking what she has learned in the classroom and applying it directly to her family business in order to bring it up-to-date in a technologybased world. Through Daneen’s food marketing classes, she has learned how to update the business and ensure success. In her Consumer Behavior class, instructed by Nancy Childs, Ph.D., professor of food marketing, Daneen audited the bakery to see what practices could be improved. “It was interesting because I’ve never sat on the other side of the counter and watched my customers,” she explained. “It helped me become more aware of what the bakery needs.” On her to-do list are tasks such as creating an e-mail list and customer database, recording customer demographics and branding a slogan for the bakery to increase recognition. Local radio stations such as WIP Sports Radio often order food in exchange for free airtime, so Daneen plans to use this to her advantage. “I’m working on a consistent message that people recognize and associate with our bakery to deliver on the radio or TV,” she said. What is Daneen’s goal by graduation? “I am reviewing our current business strategies and hoping to present new, more effective solutions to my father so that we have something to work from,” she said. “I have learned so much through my economics class about supply and demand, and I think our business has the potential to be operating above the curve.” With the independent study Daneen is taking this spring under the guidance of Richard George, Ph.D., professor of food marketing, she hopes her plan will come to fruition. The class will allow her to devote time specifically

Daneen behind the bakery counter stocked with Marchianos top-selling stromboli.

toward reviewing and updating her business strategies. “My dad wants to further the business, but I just don’t think he can do it himself because he’s too emotional about it,” said Daneen. “So that’s where I come into the picture.”

Newsmakers Erivan K. Haub School of Business faculty have contributed their expertise to stories appearing in the following media outlets: ABC News Asheville Citizen-Times Asbury Park Press Associated Press The Baltimore Sun The Bellingham Herald The Boston Globe Business Strata BusinessWeek Cattle Network Chicago Tribune Catholic.org Chicago Parent Chicago Tribune CNS News CRM News The Daily Press Digg E-Commerce Times

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ECT News Entrepreneur Examiner Fashion Monitor Toronto Financial Times Forbes The Globe and Mail Greeley Tribune Gourmet Retailer Grocery Headquarters The Hartford Business Journal Hartford Courant The Huffington Post International Business Times KYW/CBS3 KGW/TV8 KING/TV6 Linux News The Los Angeles Times

The Lubbock-Avalanche Journal MacNewsWorld Media Research Center Mid County Tri-City Herald The Morning Call The Modesto Bee MSNBC Muscle Mag Fitness National Public Radio Newsday Newsweek NewsBlaze Newsday NY Daily News The Olympian Orlando Sentinel The Packer The Patriot Post The Philadelphia Business Journal

The Philadelphia Inquirer Press of Atlantic City Retail Wire Republican-American The Sacramento Bee Seattle Times Seattle Post-Intelligencer Sun-Sentinel The Star-Ledger Supermarket News The Southern Times TechNewsWorld The Times and Democrat Virginia Gazette The Washington Post Wisconsin Public Radio WPVI/6ABC

Journal/Research Highlights David Allan, Ph.D. ’98 assistant professor of marketing Journal of Advertising Research Marketing Education Review William J. Byron, S.J. ’51 University professor of business and society Delta Epsilon Sigma Journal The Pastoral Review Nancy Childs, Ph.D. professor of food marketing Journal of the American College of Nutrition Journal of Advertising Research Marketing and Public Policy Proceedings Book of Abstracts IFT 2008 Ronald Dufresne, Ph.D. assistant professor of management Law and Contemporary Problems Journal of Management Inquiry Lucy Ford, Ph.D. assistant professor of management Journal of Occupational and Organizational Psychology Ronald K. Klimberg, Ph.D. associate professor of decision and system sciences Fundamentals of Forecasting Using Excel (Industrial Press) International Journal of Management Science Advances in Business and Management Forecasting Ginette McManus, Ph.D. associate professor of finance Journal of Business and Economics Research Quarterly Review of Economics and Finance The Business Review ICFAI Journal of Urban Policy

Faculty members who have been seen and heard in the news include:

Virginia Miori, Ph.D. assistant professor of decision and system sciences Manufacturing, Distribution and Transportation in the Supply Chain Advances in Business and Management Forecasting Stephen Porth, Ph.D. ’80 associate dean of HSB and professor of management International Journal of Pharmaceutical and Healthcare Marketing Pharmaceutical Executive Nicholas J. Robak, Ph.D. professor of decision & system sciences Management Review: An International Journal Journal of Business Case Studies Carolin D. Schellhorn, Ph.D. assistant professor of finance North American Journal of Finance and Banking Research Journal of Business and Economics Research W. Richard Sherman, LLM, CPA professor of accounting The Elderlaw Report Journal of Personal Finance Michael Solomon, Ph.D. professor of marketing and director, Center for Consumer Research Marketing Education Review Journal of Advertising Education The Truth About What Consumers Want (FT Press) Marketing: Real People, Real Choices: 6th edition (Prentice Hall) Consumer Behavior: In Fashion (Prentice Hall) Consumer Behavior: Buying, Having, and Being: 8th edition (Prentice Hall)

Chapters in: Handbook of Research on Digital Media and Advertising: User Generated Content Consumption (IGI Global) Handbook on Brand Experience and Management (Edward Elgar) Virtual Social Identity (Sharpe) Tim Swift, Ph.D. assistant professor of management Research Policy Journal of Business Strategy European Journal of Scientific Research Ahmet Tezel, Ph.D. associate professor of finance Technical Analysis of Stocks and Commodities Journal of Business and Economics Research The Business Review Journal of Personal Finance The ICFAI Journal of Urban Policy Ira Yermish, Ph.D. assistant professor of decision and system sciences International Journal of Knowledge Management John C. Yi, Ph.D. assistant professor of decisions and system sciences Expert Systems with Applications Natalie Wood, Ph.D. assistant professor of marketing Marketing Education Review Journal of Advertising Education Virtual Social Identity (Sharpe)

David Allan, Ph.D. ’98

Eric Patton, Ph.D.

Nancy Childs, Ph.D.

Joseph Ragan ’69

Christopher Coyne, Ph.D. ’67

Claire Simmers, Ph.D.

Joseph DiAngelo Jr., Ed.D. ’70

Michael Solomon, Ph.D.

Richard George, Ph.D. ’67

John Stanton, Ph.D.

Amy Lipton, Ph.D.

Scott Testa Ph.D.

John Lord, Ph.D. ’71

William Trombetta, Ed.D. ’65

John McCall, Ph.D.

Natalie Wood, Ph.D.

Virginia Miori, Ph.D. Spring 2009 |

HSB CALENDAR OF EVENTS SPRING SEMESTER 2009

March 12

Third Annual Food Industry Summit

16-19

International Business Week

Executive in Residence - Nick Nicolaides

UNDERGRADUATE Day Program 888-BE-A-HAWK

April 8

ARMI Annual Scholarship Information Dinner

Hawks vs. Hunger Walk

Taste of Hawk Hill

Hall of Fame Dinner

Student Achievement Day

May 1 1

Business Policy Competition

7 16

DEGREES OF EXCELLENCE

Sutula Scholars Induction Dinner Beta Gamma Sigma Induction Ceremony Accounting Advisory Board Meeting

UNIVERSITY COLLEGE Undergraduate Evening Program 800-776-7572 GRADUATE PROGRAMS M.B.A. Executive M.B.A. Business Intelligence M.S. Food Marketing M.S. Financial Services M.S. Human Resource Management M.S. International Marketing M.S. Pharmaceutical Marketing M.B.A. 888-SJU-GRAD

Visit the HSB web site at www.sju.edu/hsb/

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