July 2015 | ISSUE N0.1
The Case Competition Program Practical Learning, Opportunities, Success
Co-op Education A Symbiotic Relationship
UPEI
A Great Place for International Students
Summer | Fall 2015
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ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
CONTENT
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Message from the Dean
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New Faculty Members at the School of Business
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School of Business History
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New Specializations in the Business Curriculum
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A Global Campus
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Teaching at a German Business School
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Dean’s Honours Ceremony
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EMBA at UPEI
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Enactus UPEI
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The Case Program: Practical Learning, Opportunities and Success
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Co-op Education, a Symbiotic Relationship
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Business Society at UPEI
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Teaching, Learning, and Higher Education in the UPEI School of Business
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Conducting a Cost Analysis of Atlantic Coastal Infrastructure Options in Response to Climate Change
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Friends or Foes? Activist Hedge Funds and Other Institutional Investors
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Microfinance Research: How Do Ugandan Women Experience Their Micro Loans?
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Gathering Evidence, the Basis of Change
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Shannon Macdonald, Journey to the Top
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ENGAGE is published by the School of Business at the University of Prince Edward Island. Editor:
Mary Whitrow
Contributors: Tim Carroll, Andrew Carrothers, Rebecca Dawson, Adam Fenech, Anthony Gill, Susan Graham, Blake Jelley, Juergen Krause, Melissa MacEachern, Amy MacFarlane, Anna McCarvill, Ryan McCarvill, Adelee McNevin, Nicole Phillips, Tina Saskida, Jennifer Tasker, Don Wagner, Alex Whalen, Mary Whitrow, Karen Wight Photos:
Integrated Communications, Centre for Health & Biotech Management Research, Rebecca Dawson, Adam Fenech, Shannon MacDonald, Melanie McKenna, Don Wagner, Mary Whitrow
Designer:
TechnoMedia Inc.
Special thanks to Integrated Communications and the Office of the Dean for their contribution. For all inquiries: School of Business, University of Prince Edward Island 550 University Avenue, Charlottetown, PE, Canada C1A 4P3
Tel: (902)566-0564 Fax: (902)628-4302
Email: business@upei.ca www.upei.ca/business Summer | Fall 2015
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MESSAGE FROM THE DEAN This first edition of our School of Business magazine provides the opportunity for us to introduce our institution, our programs, and our achievements. The people, facilities, campus, and our setting in the midst of such natural beauty in our wonderful Maritime province, makes the UPEI School of Business a very special place. We offer students a rich educational experience that marries intellectual growth and crossdisciplinary breadth in an intimate, student-centered environment. Our programs meet the needs of young students and business professionals at critical stages of their careers and our faculty members provide students with mentorship, career advice, and business contacts during their studies and throughout their careers.
Through innovative curricula, teamwork, and leadershipdeveloping experiences, our students gain vital critical thinking and communication skills. We are proud to offer specializations in Accounting, Finance, Marketing, Organizational Management, Entrepreneurship, Tourism & Hospitality and International Business. With each program, students learn from professors who understand what students need to know in order to become leaders in their chosen field. We also offer an Executive MBA program which recognises that managers deliver results through and with others. This is why the cohort experience and networking opportunities are an integral and carefully crafted part of our EMBA experience. 2
There are many opportunities for experiential learning for our students. In our Co-op program we provide the opportunity for domestic and international students to gain work experience while earning course credits. Students can choose to spend some time studying and working abroad through UPEI’s network of international academic partners. We also have our UPEI School of Business Case Competition Team Program, and very few schools in Canada can match our successes and recent track record in business case competitions nationally and internationally. The testimony of the quality of our education is presented by our individual students and student teams who have won many prestigious awards. A degree from UPEI’s School of Business is recognized around the world, which is evidenced by the high number of international students that choose our institution for their education and advancement every year. In addition to engaging our students through experiential learning, our faculty members are committed to reshaping the face of business by performing cutting-edge research that is grounded in interdisciplinary collaborations. Amongst other important research topics, our research centres focus on entrepreneurship, healthcare provision and policy research, and we are the first business school in the nation addressing business-related impacts of climate change in various industry areas.
ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
Juergen Krause MSc, PhD Dean
Graduates join a proud and highly accomplished family of over 3,800 alumni in 38 countries worldwide, with eight alumni chapters in Canada, the U.S., and Hong Kong.
Many of our graduates have made a lasting mark in the world of business and have attained the highest levels of personal and professional success. If you seek a highly rewarding business education, I invite you to experience it for yourself in our intellectually stimulating and culturally diverse learning environment. You will not be disappointed!
NEW FACULTY MEMBERS AT THE SCHOOL OF BUSINESS ANDREW CARROTHERS BScEE, MBA, PhD, CFA, PEng Assistant Professor Dr. Carrothers holds a PhD in Finance from McMaster University. He is teaching in the area of finance and his primary research interests are in corporate governance, with a particular focus on hedge fund activism and executive compensation. Prior to joining UPEI, he gained extensive work experience as a senior manager at an S&P 500 company. He is a Chartered Financial Analyst (CFA) charter holder and a professional engineer. Andrew was also the 2014 recipient of the prestigious Canadian Securities Institute Research Foundation PhD Scholarship.
TINE SASKIDA PhD Assistant Professor Dr. Tina Saksida is an Assistant Professor of Management at the School of Business. She currently teaches in the areas of organizational behaviour and research methods. She holds a PhD in industrial relations and human resources from the University of Toronto and her research interests lie primarily in the areas of organizational behaviour, human resource management, and non-profit management. Prior to joining UPEI, Tina taught undergraduate courses in the Rotman Commerce and Employment Relations programs at the University of Toronto. In addition to her academic work, Dr. Saksida has professional experience as a project manager in the public sector.
KAREN WIGHT CPA, CA
ADAM FENECH PhD
Assistant Professor
Associate Professor
Karen Wight is a CPA, CA bringing to the School of Business fifteen years of experience in various roles in accounting and finance. While working in public practice in St. John’s, N.L. and Toronto, Ont., she has specialized in assurance, tax, forensics, and corporate finance (including capital financing, mergers and acquisitions, public-private partnerships, and business succession planning) with clients, including all sizes of owner-operated businesses, provincial and municipal governments and agencies, and publicly-traded international corporations. She has also held senior-level finance positions including the Director of Corporate Services for a provincial crown corporation in Newfoundland and, most recently, the Chief Financial Officer of a large multi-province passenger transportation business based in Charlottetown, P.E.I.
Dr. Fenech is a PhD climatologist who has worked extensively in the area of climate change since the 1988 Intergovernmental Panel on Climate Change First Assessment Report. He is the Director of the UPEI’s Centre for Climate Research which has received international recognition from the Massachusetts Institute of Technology for its climate change visualization tool known as CLIVE (CoastaL Impacts Visualization Environment) that allows communities to understand the risks of sea-level rise and coastal erosion using videogame technology. Additionally, Dr. Fenech was awarded the 2015 Murray Pinchuk Community Builder Award by the P.E.I. Institute of Planners, and was proud to be honoured as part of the team that shared the 2007 Nobel Peace Prize.
Summer | Fall 2015
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SCHOOL OF
BUSINESS HISTORY Author: Tim Carroll
Since the founding of the University of Prince Edward Island (UPEI) in 1969, the School of Business has evolved and expanded. It has grown from a small start into a well-rounded program that offers students exceptional learning and an enhanced educational experience. In the initial years, the School of Business was not a standalone faculty. At that time, the Department of Business Administration was within the Faculty of Arts and consisted of five faculty members serving a total enrollment of 200 students. The desire to establish a separate school of business started to mount throughout the seventies as enrollments for the Bachelor of Business Administration degree grew quickly to roughly 500-600 students. In response to this growth, the Department of Business Administration moved into a building separate from the Faculty of Arts. This physical divide only added impetus to the desire within the department to manage its own academic and administrative responsibilities. Many argued that having a School of Business Administration was not consistent with UPEI’s image as a primarily liberal arts institution, but in 1982 after many years of healthy debate, the University Senate Committee ratified the creation of a School of Business at UPEI. The Board agreed to establish the School effective July 1, 1983.
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Since that time both the School of Business and UPEI have prospered and grown to serve more students and provide more services in support of faculty and students. In 2008, Don and Marion McDougall Hall was built to house the School of Business. The new building, which is prominently situated on University Avenue, is a beautiful addition to an already magnificent campus. Enrolment in the School of Business is approaching 800 students who are served by a dedicated full-time faculty and highly qualified sessional instructors. The growth in number of course offerings and improvements to programs and services for students over the last 45 years has been considerable. The Bachelor of Business Administration (BBA) degree, which continues to attract students locally and around the world, boasts specializations in areas such as accounting, marketing, finance, organizational management, entrepreneurship, international business, and tourism and hospitality.
ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
Since 2008, the School of Business has also offered an Executive Master of Business Administration (EMBA), which has greatly resonated with students. The 2011 introduction of the Case Competition program has increased UPEI’s reputation and offered students an opportunity to engage in experiential learning. In addition, the very successful business co-operative education program recently became the model for expanding co-op education across all faculties at UPEI. The School of Business recognizes its strong traditions as the solid foundation from which an opportunity-rich future can be built. An increasing proportion of international students, online delivery of business courses, and the demand for graduate level courses are just a few examples of prospects for the School of Business. The practice of monitoring and responding to the ever-evolving needs of students and their future employers is a commitment, which the School will continue to honour in order to serve Canadian and international students, as well as the Island community.
NEW SPECIALIZATIONS IN THE
BUSINESS CURRICULUM Author: Don Wagner
The School of Business at UPEI is continuously improving the curriculum offered to its students, but this year the School introduced the most significant changes in over a decade. We offer four new specializations—in marketing, finance, organizational management, and tourism and hospitality. The specializations are designed to emulate the highly successful accounting specialization that the School has been so proud of for many years. In addition to the 23 courses needed for the Bachelor of Business Administration (BBA) degree, students will be able to take an additional nine courses specifically supporting their chosen specialization, and are
required to maintain a 70% mark threshold on those courses. The core requirements of the BBA degree have also been improved by adding courses in Developing Management Skills and Evidence-based Decision Making. The School has based these changes on research, which identified gaps between typical university curricula and the skills that managers actually need most to be successful in their job. The feedback from students with respect to these changes has been overwhelmingly positive.
Summer | Fall 2015
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A GLOBAL CAMPUS Author: Melissa MacEachern
More and more students choose the University of Prince Edward Island when they decide to pursue an international education. Excitingly, the majority of these students are selecting the School of Business for their studies. This year alone, 42% of international students at UPEI are enrolled in the School of Business. Students from China, Korea, Japan, the United Kingdom, and over 59 other countries are working alongside Island and Canadian students, taking advantage of case competitions, industry-related projects, co-op placements, and various student clubs and initiatives. Students in the School of Business are enhancing their experience through intercultural learning; discussions on global issues and perspectives; and team building across cultures.
She also comments that what truly sets UPEI apart from other universities is not the smaller size, but the personal connections made within UPEI. “From the moment an international student begins to choose a place to study, right until they graduate, no one can offer the personal touch that we offer at UPEI.” Campbell clarifies that international students receive one-on-one support not only for their studies, but with the everyday adjustments of living in a new place. “The level of support we provide is second to none,” Dr. Campbell added. To find out more visit www.upei.ca/iro
Dr. Barbara Campbell, Director of International Relations at UPEI, noted that when she and her team are recruiting students from around the globe, they have found that international students recognize the calibre of UPEI’s Business program. “Students are seeking a world-class education. We’ve seen the interest and enthusiasm for UPEI and our Business program increase each and every year,” says Dr. Campbell.
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ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
UPEI SCHOOL OF BUSINESS
TEACHING AT A GERMAN BUSINESS SCHOOL Author: Adam Fenech
The University of Prince Edward Island partners with many universities across the world to facilitate networking for international research projects, to allow for relationships between faculty members from partner institutions, and to promote partner institutions as possible “semester abroad” locations for UPEI students. One of these partners, Hochschule Furtwangen University in VillingenSchwenningen, Germany, recently invited Dr. Adam Fenech, Associate Professor in the UPEI School of Business, as guest lecturer of an intensive international business course titled “Business in the Era of Climate Change”.
This course was part of the Hochschule Furtwangen University’s Art of International Management week (International Week). Furtwangen University’s International Week is an effort to bring “real-world” practitioners in from industry from around the world including China, Chile, France, and the US to take part in an exciting exchange preparing students to cope in this global world of business.
Dr. Fenech also participated in an international panel of experts discussing the role of interest rates in economic development for the European Union, by providing unique perspectives on the Canadian economy and on protecting the environment through sustainability measures.
Summer | Fall 2015
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DEAN’S HONOURS CEREMONY THE NEW TRADITION Author: Mary Whitrow
Each fall brings a variety of opportunities and events that help celebrate the success of our UPEI students who have academically excelled by accomplishing an average of 80 per cent and above in the past academic year. These students are honoured on the UPEI Dean’s Honours List and the achievement is included on their transcript. For the third year now, the School of Business has the privilege of being invited by the Lieutenant Governor, the Honourable H. Frank Lewis and Her Honour Dorothy Lewis, to hold the awards celebration at Government House. It is an inspiring event, where students are presented with their award certificates by the Lieutenant Governor and Dean of the School of Business, Dr. Juergen Krause. Following the award ceremony, the hosts provide refreshments and socialize with the students. The 2014 ceremony was attended by 98 business students who received honours distinction and a number of outstanding students who received awards, presented by the Lieutenant Governor. The School of Business is very thankful to its hosts, their Honours, for their generous hospitality, and offers congratulations to the students for their past achievements and best wishes for continued success!
Dean’s Honours - Juergen Krause, Jessica Smith, Melanie McKenna, Ling Chen, Malary Schurman, Amber James, Luke Gaudet, Charles Bello, Colin Beck, Christiana Tweedy, Ryan Cassidy, Trevor White, Ryan McCarvill, Honourable H. Frank Lewis.
The following highlights some of the successes achieved by our students during the past academic year: • The Dale Mattock Scholarship for Women in Business for a female student entering the third or fourth year of the Business Administration program at UPEI on the recommendation of the School of Business; awarded to Melanie McKenna. • The Henry Tam Award for a returning Business Administration student who completed his/her third year with the highest academic standing and the UPEI Faculty Association Silver Medal & Prize for a student with the highest standing in third year in a faculty other than that of the Gold Medal winner; awarded to Ryan Cassidy. • The Royal Bank Centennial Award for a full-time Business student entering second, third, or fourth year, who, in the opinion of the faculty of the School of Business, best demonstrates strong academic performance, leadership, and commitment; awarded to Trevor White. • The David W. Rodd Scholarship in Tourism & Hospitality for a student entering the UPEI Bachelor of Business in Tourism and Hospitality program and who has performed well academically in the two years of the program at Holland College and shows combined qualities of leadership, contribution to the community, and demonstrates a desire to enhance the tourism and hospitality industry; awarded to Kyle Gillis. • The Jean (MacLeod) Paquette Scholarship in Business for a full-time student in the School of Business with a record as a participant and leader in community service and/or sport; awarded to Colin Beck. • The UPEI Finance and Facilities Award in Business Administration for a returning Business student who does well academically, demonstrates leadership ability, has completed at least one work placement with high work-term journal evaluations, and is actively pursuing the co-op designation; awarded to Ling Chen. • The Yousef Hashmi Award of Excellence in Business Administration for a student with the highest aggregate in the last 20 courses and is continuing in the third year of the Business Administration program; awarded to Christiana Tweedy.
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ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
EMBA
Author: Don Wagner
AT UPEI
It was only six years ago that the Executive Masters in Business Administration (EMBA) program was launched at UPEI. Since then, the program has admitted over 180 students and our graduates already number 117. Our students and alumni now occupy management and leadership positions in a high proportion of Prince Edward Island’s organizations. This influence also extends beyond PEI’s shores. The program has graduates and future graduates who live in Nova Scotia, New Brunswick, Ontario, Alberta, British Columbia, on both coasts of the United States, China, India, and Nigeria. Our current classes also include students from Afghanistan, Bangladesh, and Uganda. Our students and graduates are now helping their organizations in a
broad spectrum of industry sectors – spanning government, large business, nonprofit organizations and entrepreneurial ventures – to address content with increased critical thinking and to use relevant evidence more effectively in decision-making.
Juergen Krause, Kim Gill, Rebecca Gill, Don Wagner
Juergen Krause, Sherrill Palmer, Don Wagner
Juergen Krause, Anthony Migiro, Andrew Carrothers
We are extremely proud of our Executive MBA program and our students’ accomplishments. We look forward to celebrating their continued successes and the impact that they will have on the Island’s future and beyond!
Summer | Fall 2015
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ENACTUS UPEI Authors: Anna McCarvill and Rebecca Dawson
One current Enactus project is Treeternity, which focuses on providing environmental education with handson experience to elementary school students across Prince Edward Island. Enactus UPEI is part of a growing movement of over 66,000 students in 36 countries seeking to make a difference. Where most people only see challenges in their community, Enactus members see opportunities. Building on the foundation of environmental, social, and economic impact, Enactus students at UPEI are developing and implementing diverse projects that encompass everything from improving financial literacy, to reforestation, to entrepreneurial recycling. With membership numbers doubling since last year, the momentum of Enactus UPEI is only mounting. Team initiatives evolve every day, and students pursue opportunities to work with new community partners and business leaders as they expand their portfolio.
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At the Regional Exposition for Atlantic Canada that took place in Halifax in late February 2015, UPEI received 2nd place when they presented their Treeternity project in the Scotiabank EcoLiving Green Challenge. Then, at the National Exposition, which was held in Toronto in early May, UPEI built upon their previous momentum and placed runner-up against seven teams from across Canada. To learn more about Enactus, their project Treeternity, or how to get involved, find them on Facebook at Enactus PEI.
ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
Top row from left: Sam Rodriguez, Josh Mohan, Ronnie McPhee, Bradon Coffin, Brandon Higginbotham Bottom row from left: Rebecca Dawson, Amber James, Jeff Zh
En-Act-Us Entrepreneurial — having the perspective to see an opportunity and the talent to create value from that opportunity;
Action — the willingness to do something and the commitment to see it through even when the outcome is not guaranteed;
Us — a group of people who see themselves connected in some important way; individuals that are part of a greater whole.
Summer | Fall 2015
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THE CASE COMPETITION PROGRAM: PRACTICAL LEARNING, OPPORTUNITIES AND SUCCESS Author: Mary Whitrow
The UPEI School of Business consistently strives to find new ways to enhance student experience and learning. UPEI’s Case Competition class is one of the ways it is succeeding in doing so. What is the Case Competition class? The following is an in-depth look at the case competition format and how UPEI’s students are successfully competing against teams from some of the world’s top business schools.
Concept A business case is a written, in-depth description of a real-life company and its actual situation including strategic and market challenges and opportunities. Case-based learning is the process of reading a written business case, critically analyzing available but often incomplete information, and crafting a strategic solution that is evidenced-based. It is an effective tool for applying theoretical knowledge in many fundamental areas such as strategy, accounting, ethics, finance, marketing, and human resources. Through studying cases, students learn how to think critically and creatively and implement their strategies. This experiential learning method is the crux of the case competition concept. In a case competition, case teams (typically four students) have to complete these aforementioned tasks within a specified period of time; usually three hours. They then have to present and defend their recommendations to a judging panel of academic and industry professionals. Students are challenged with dynamic problems that require creative solutions with the added pressure of a very limited time period. It gives them the chance to compete in an academic setting that simulates the real business world.
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History and Origins Case competitions first started in the United States and have spread throughout the world. They are now prevalent across North America, Europe and Asia. Over 34 internationally recognized competitions have been established, many of which take place in Canada, attracting the best and brightest student teams from around the globe. These events give students the opportunity to compete against world-class competitors, as well as to travel and gain significant recruitment opportunities from competition judges and sponsors. The UPEI Case Competition class trains students for these rigorous competitions and has proven to produce extremely competitive teams since its inception. Professor Edward Gamble initiated the class at UPEI in 2011 while teaching Strategic Management. He engaged his students in case-based learning and saw so much potential in his top students that he formed a case team to compete at regional and national competitions.
The case program was developed to focus on the practical implementation of current business theory, team work, building presentation and writing skills, and competing. UPEI’s leadership and the School of Business faculty are very supportive of the program, and in 2013 the decision was made to have a fulltime coach at the helm. An alumna and successful former Case Competition class student, Mary Whitrow, is now the fulltime coach.
Current Course Structure UPEI’s unique competition class has progressed and is well known throughout business schools in Canada. Students apply for acceptance into the intensive, selective course where they receive regular one-on-one attention, feedback, and specialized training from their coach. Support and mentorship from peers, faculty, and industry professionals are additional features of the class. It requires a significant time commitment from students and it motivates them to be high achievers. As all students usually carry a full course load, the members of the case competition teams also learn to become skilled time managers. These students prepare diligently for competitions and represent UPEI with pride, while improving both academically and personally from taking the course. They graduate as critical thinkers, talented presenters and efficient workers.
Jeremy MacAulay, Shanice Sproule, Kaitlyn Lord, Luke Gaudet, and Mary Whitrow (Coach) at the Network of International Business Schools Case Competition.
ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
Results The commitment to this program has allowed UPEI’s students to achieve excellent results in case competitions throughout its tenure. The 2014-15 season was incredibly successful, with UPEI for the first time being able to compete in five of the top competitions in Canada. These included the: • Scotiabank Ethics in Action Case Competition at Dalhousie University, • Inter-Collegiate Business Competition (I.C.B.C.) at Queens University, • Network of International Business Schools Undergraduate Case Competition (NIBS), • John Molson Undergraduate Case Competition (JMUCC) at Concordia University, and • Royal Roads University International Undergraduate Case Competition (RRUIUCC). During these events, the UPEI teams competed with Canadian schools such as Dalhousie University, Saint Mary’s University, Concordia University, Queens University, Guelph University, University of Calgary, University of Alberta, and international schools such as Universidad del Istmo (Guatemala), Colegio de Estudios Superiores de Administración (CESA) (Colombia), Dublin Institute of Technology (Ireland), London South Bank University (England), Hong Kong University (China), Chulalongkorn University (Thailand), and University of New South Wales (Australia). Through these and previous successes, UPEI has proven to be dominant regionally and highly competitive nationally and internationally. The program expands and augments the reputation of the UPEI School of Business and attracts top students, all while showcasing UPEI and producing students who have proven their excellence time and time again.
Top row - Mary Whitrow (Coach), Trevor White, Luke Gaudet, Alex Khan, Jeremy MacAulay, and Cody Dawson. Bottom Row - Kaitlyn Lord, Shanice Sproule, Malary Schurman, Erin Devine, and Cait Wright.
Our successes! 2015 • Saint Mary’s University Case Competition in Halifax, N.S. (3rd place) • Network of International Business Schools (NIBS) Case Competition at Carleton University in Ottawa, Ont. (2nd place) • Inter-Collegiate Business Competition (ICBC) Business Policy Event at Queens University in Kingston, Ont. (3rd place)
2014 • Scotiabank Ethics in Action Case Competition at Dalhousie University in Halifax, N.S. (1st place) • Atlantic Schools Business Case Competition at Dalhousie University in Halifax, N.S. (3rd place) • Crandall University Case Competition in Moncton, N.B. (1st place)
2013 • Scotiabank Ethics in Action Case Competition at Dalhousie University in Halifax, N.S. (1st place) • Network of International Business Schools (NIBS) Case Competition at the University of Leuven in Leuven, Belgium (tied for 3rd place) • Inter-Collegiate Business Competition (ICBC) Ethics Event at Queens University in Kingston, Ont. (1st place)
2012 • Inter-Collegiate Business Competition (ICBC) Ethics Event at Queens University in Kingston, Ont. (2nd place) • Atlantic Schools Business Case Competition at Dalhousie University in Halifax, N.S. (1st place & 3rd place) • Atlantic Throwdown Case Competition at Dalhousie University in Halifax, N.S. (1st & 3rd place) • Royal Roads University International Undergraduate Case Competition (RRUIUCC) in Victoria, B.C. (2nd place) • Crandall University Case Competition in Moncton, N.B. (2nd place)
2011 • International Institute for Business Development Case Competition (IIBD) in Kowloon Tong, Hong Kong (1st place) • Royal Roads University International Undergraduate Case Competition (RRUIUCC) in Victoria, B.C. (finalist)
Summer | Fall 2015
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CO-OP EDUCATION
A SYMBIOTIC RELATIONSHIP Author: Amy MacFarlane
The Business Co-operative Education program, in its 19th year at UPEI, continues to offer students an excellent opportunity to integrate their academic knowledge with relevant and paid work experience with approved employers.
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The benefits of co-operative education are well documented. Co-op work terms offer students the opportunity to gain professional work experience, expand their network, develop transferable career skills, explore potential career avenues and earn academic credits towards their business degree while doing so.
Amy MacFarlane is the Academic Director of the Business Co-op program. “I strongly believe in its effectiveness as an educational model. In my experience, students return to university better prepared and more focused on their studies and academic success. I typically see a spike in both students’ motivation and self-confidence.”
In the 2013-2014 academic year, 92 students were enrolled in Business Co-op with 25 students earning their Business Co-operative education credential at the 2014 UPEI Convocation exercises. During the last year, 81 work terms translated into total salaries earned by Business Co-op students in excess of $550,000. This results in lower amounts of student loans and increased employment opportunities for Co-op students after graduation.
Satisfying the needs of both students and employers is key to the success of the Co-op program. “It really is a symbiotic relationship” states MacFarlane. “Challenging and engaging work terms attract high-calibre students to the program. Similarly, creative and enthusiastic students infuse workplaces with new ideas and energy. We are always interested in building and developing our employer network.”
ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
CO-OP STUDENT SUCCESSES Jenna Shin There is no shortage of success stories in the Business Co-op program. Jenna Shinn is one such example. She completed her first work term in the tourism and hospitality sector quickly demonstrating her abilities by moving into a managerial role. “Managing a team of 22 people on my first work term presented endless opportunities and obstacles to overcome,” reflects Shinn. “It made me realize that I love managing and to have that opportunity at such a young age was incredible. “Shinn went on to complete a second work term with the same employer but in an entirely different role—an accounting position that exposed her to the back office side of the business. She realized that this was not what she wanted to do in the future.
“Part of the point of the Co-op program is finding out what you are meant to do and finding out what you are not meant to do,” chuckles Shinn. Shinn believes the reputation she built during her first two Co-op work terms was what led to three offers of employment to consider for her third work term. Ultimately, Shinn accepted a general manager position for a new start up restaurant, Dave’s Lobster, located on the waterfront of Charlottetown. “I was involved in all aspects of the business—the hiring, sourcing of suppliers, costing decisions, training and supervising staff. My employer was encouraging and supportive. In our first season, we are the #1 restaurant in Charlottetown on TripAdvisor,” Shinn proudly shares.
“To have this type of experience under my belt at such an early stage in my career is huge. Many students graduate with no relevant work experience,” she remarks. When asked what she gained from her Co-op experience, without hesitation Shinn replied, “Confidence. If I want something, I know how to ask for it properly. I have confidence to make decisions.” After a moment’s thought, Shinn adds leadership, the importance of delegation and time management to her list. “Co-op taught me that if you set goals, you are more likely to hit them. Without experience you are not going to be where you want to be.”
Ling Chen The Business Co-op program attracts students to UPEI. In recent years, there has been an increase in interest in Business Co-op amongst international students. One such student is Ling Chen, the 2013-14 Business Co-op Student of the Year. Access to job opportunities initially attracted Chen to the Business Co-op program. “As an international student it can be difficult to get a good job, which will benefit your future. Language is often our barrier. Working in the real world allowed me to practice speaking. My English has improved, which has been really beneficial,” remarks Chen. “Through Co-op, I have discovered that I am really driven, self-motivated, and enthusiastic. I have gained confidence”, Chen adds. When asked what she is most proud of during her Co-op experience, Chen responded quickly, “feeling like I can make a difference and that my effort and decisions will affect the future of that organization. I can actually help people.”
Ling Chen and Juergen Krause.
Summer | Fall 2015
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BUSINESS SOCIETY AT UPEI
Author: Ryan McCarvill
Business Society Events in the 2014-15 Year:
The Business Society organizes many activities and initiatives during the academic year providing members with great opportunities to develop lasting relationships with fellow students, faculty members, and local business leaders. For almost 40 years, the Society has been, and continues to be, run by students for students. The executive team includes representatives from all four years including a new International Rep to ensure that everyone can be part of the action. The mandate is simple: to give Business students the chance to meet new people, excel in the classroom, explore career options, and most importantly have fun. “Every year, we work together to push the envelope in creating opportunities for both success and fun for students in the School of Business.
Business Society Thursdays at Ise’s Bar
PEI Brewing Company Beach Volleyball Tournament 5th Annual Golf Tournament, sponsored by Invesco From our golf tournament, to our annual food drive, to the exciting Business Society Luncheon we host each spring, there are many ways for everyone to get involved and enhance their university experience. We thank everyone for their continued support and welcome all UPEI students, staff, faculty, and the Island community to join us for a great year ahead.” - UPEI Business Society Executive 2014/2015
This year’s recipient of the Business Society Scholarship, valued at $500, was Connor Duffy. He was selected by his peers and a faculty committee for his academic excellence and exceptional commitment to Business Society events and fundraisers. Connor graduated with his BBA in May 2015.
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ENGAGE | UPEI SCHOOL OF BUSINESS MAGAZINE
Annual Food Drive (all donations to the Upper Room Soup Kitchen)
Frozen Four Intramural Hockey Tournament (in partnership with UPEI Student Union)
Curling Tournament at Charlottetown Curling Club
Multi-establishment Field Trips 38th Annual Business Society Luncheon (took place March 1st at the Delta Hotel with keynote speaker Anne Merklinger, CEO of Own The Podium)
TEACHING, LEARNING, AND HIGHER EDUCATION IN THE UPEI SCHOOL OF BUSINESS
Authors: R. Blake Jelley, Susan Graham, Melissa James-MacEachern, and Amy MacFarlane
The central role that students occupy in the UPEI School of Business is emphasized by the fact that our faculty develop, research, and disseminate ideas on teaching, learning, student experiences, and related topics. Various faculty members think carefully about these issues and contribute to local, national, and international discussions about business education and higher education. In this article, we note some of these projects. Professor Melissa James-MacEachern is collaborating with UPEI’s International Relations Office and the Recruitment and First-year Advisement team. In a series of studies, she and her colleagues are studying various influences on university recruitment and participation of both domestic and international students. Specific influences being examined include the use of social media and government financial incentives. These research projects will be used to evaluate programs and policy and will help to better understand the myriad choices and complex decision-making students experience when deciding to pursue post-secondary education. Professor Dr. Susan Graham and Professor Amy MacFarlane are also working on several projects. They have surveyed recent graduates and alumni of the UPEI School of Business to better understand their experiences as students in our programs. The results from this study will support the School of Business in meeting the needs of students and the labour market. Another project examines relationships involving the reading comprehension skills of first-year students entering Holland College and the University of Prince Edward Island. Results of this project will
inform professors’ teaching practices based on an improved understanding of existing literacy levels and the types of services needed to support students with literacy challenges. An additional planned project will examine students’ perceptions about working in teams with their peers. This is an important area of research since many courses in the business curriculum incorporate team-based projects to help students develop the skillset needed to work collaboratively as effective team leaders and members. Lastly, Drs. Graham and MacFarlane are partnering with a local business organization to pursue funding to support a project exploring the role that gender plays in the experience of business students in the region. Professor Dr. Blake Jelley partnered recently with an accomplished case-competition coach to propose establishing an evidence-based management (EBMgt) case competition approach. The resulting article (Gamble & Jelley, 2014) has been published in the prestigious Academy of Management Learning and Education. It was informed by UPEI business students’ successes in traditional business case competitions, ideas for how to improve those competitions, and insights from our experiences at UPEI teaching EBMgt.
teaching evidence-informed practice locally, nationally, and internationally. Previously, he has examined other topics related to teaching and learning, such as predictors of performance in medical school and longitudinal trends in student ratings of instruction.
The importance of students and business education to our faculty members can be seen in our classrooms, extracurricular activities, and scholarly work on teaching, learning, and higher education. Opportunities also exist for students to participate in substantive business research while at UPEI in areas such as marketing, finance, management, biotechnology and health management, entrepreneurship, corporate governance, climate change, and more!
Dr. Jelley was also the lead author of a chapter published in the Oxford Handbook of Evidence-Based Management about teaching and learning from an evidence-based perspective (Jelley, Carroll & Rousseau, 2012). He has co-authored other publications and delivered presentations about Summer | Fall 2015
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CONDUCTING A COST ANALYSIS OF ATLANTIC COASTAL INFRASTRUCTURE OPTIONS IN RESPONSE TO CLIMATE CHANGE Author: Adam Fenech
The Centre for Climate Research (CCR) at UPEI is helping local communities assess their climate change risk and vulnerability to coastal threats (coastal erosion, sea level rise, flooding, and storm surges) whose impacts continue to threaten public and private infrastructure and property with potentially a great economic cost. One current project, with a budget of over $1 million, is to conduct a costbenefit analysis of coastal infrastructure adaptation options. This research is used as a means for communities in Atlantic Canada to prioritize available options to respond to coastal impacts from climate change. The research focuses on finding the cost-to-benefit ratios of moving an
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infrastructure away from the coast versus armouring the infrastructure. The research goes further and answers questions like, if it is more beneficial to armour an infrastructure, should a stone wall or natural vegetation be used as a means of protection? This type of cost-benefit analysis is being conducted at six case studies across Atlantic Canada including the Tracadie Harbour and Kildare areas of Prince Edward Island. The project aims to create economic knowledge and tools that will help decision makers in both the private and public sector. They have the opportunities to use portfolios, which are collections of adaptation measures, to guide their thinking. These portfolios incorporate various
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climate change impacts and types of economic drivers in the variety of locales under study. This helps decision-makers craft better adaptation investment choices and policy decisions. Funded primarily by Natural Resources Canada, the project is a joint partnership among the four Atlantic provinces, three universities, three private companies and thirteen government agencies at the federal, provincial and municipal levels. The lessons learned from the project can be used by other communities across Atlantic Canada facing similar circumstances due to climate change threats.
FRIENDS OR FOES? ACTIVIST HEDGE FUNDS AND OTHER INSTITUTIONAL INVESTORS Author: Andrew Carrothers
In September 2011, the share price of
Canadian Pacific Railway (CPR) dropped to less than $43—in October, hedge fund Pershing Square Capital Management announced an ownership position in CPR and the share price immediately jumped to $62.50. The fun had just begun. In the ensuing months, Bill Ackman, founder and CEO of Pershing Square, pursued a shareholder activism campaign that included direct communication with CPR directors and executives, an extensive media campaign, and a successful proxy battle that elected seven Pershing Square nominees to the CPR board of directors, ousted CPR CEO Fred Green, and installed Hunter Harrison, legendary in railroad circles, as the new CEO responsible for driving operational efficiency improvements. In April 2013, CPR announced the best quarterly results in its 132-year history and the share price soon exceeded $142. Pershing Square had built up an ownership stake of 24 million shares (14.2% of the outstanding CPR shares worth $3.4 billion). Institutional investors (e.g., pension funds, insurance companies, mutual funds, banks, investment advisors, and hedge funds) are organizations that pool and invest large sums of money on behalf of their stakeholders. The motive for activism is to increase shareholder value by addressing agency conflicts (i.e., the tendency of managers to take self-enhancing actions that are not in the best interest of shareholders). In the 1980s, pension funds emerged as the most common shareholder activists. Today, hedge funds are the most prevalent in the investor activism space. Hedge funds are very different than other institutional investors – they begin monitoring targets before acquiring an ownership position and become agents of change with specific goals that depend on the target’s unique situation.
Typical hedge fund activism includes challenging bad strategies, removing poorly performing executives, and ensuring that mergers and other management activities make sense for the shareholders.
Hedge funds are more effective in implementing change at target companies because hedge fund managers have the means and incentive to focus on longer term value enhancing activities. Support for hedge fund activism is not universal. While proponents argue that activist hedge funds are beneficial, critics hold that the benefits of activism do not accrue to stakeholders equally and deny that activism creates long-term value—any shareholder benefit is short term in nature and based on financial manipulation rather than true value creation. To successfully implement activist agendas, hedge funds require support from other shareholders because they typically acquire minority ownership positions in target firms. Given that institutional ownership at publically traded firms was more than 60% in 2005, it is clear that institutional investors collectively control sufficient power to affect the effectiveness of hedge funds. The observation that the level of institutional ownership has a significant impact on the probability of being targeted suggests that hedge fund activism creates value—hedge funds prefer high levels of institutional ownership because they expect support for value creating activism. The market responds positively to hedge fund activism—the average abnormal return at target firms in the +/- 20 days surrounding the disclosure of activist intentions is 7.1% and the average
abnormal return in the 20 months after the disclosure is 23.0%. The trading behavior of other institutional investors indicates that they have a favorable view of hedge fund activism. By supporting activist hedge fund agendas, other institutional investors play an important role in improving governance, performance and shareholder value at target firms.
Overall, the results of my research suggest that activist hedge funds and other institutional investors have compatible goals—they are friends not foes. While hedge fund activism began in U.S. markets, it has become increasingly widespread in Canada and will have significant ramifications for typical Canadians. Another high profile campaign occurred when hedge fund Scout Capital announced a 5.5% ownership share in Tim Hortons, calling for sweeping changes. There are few things more closely linked to the collective Canadian psyche than coffee, donuts, and railroads. Activist hedge funds are here to stay and play, which may well be a good thing for all of us. When shareholder activism is successful, the benefits accrue to all shareholders, not just to the activist. This fact is very important to many of us because activist hedge funds target firms with high levels of institutional ownership—institutions such as mutual funds, insurance companies, and pension funds. The financial well being of typical Canadians depends on the investing success of these institutions. Summer | Fall 2015
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MICROFINANCE RESEARCH:
HOW DO UGANDAN WOMEN EXPERIENCE THEIR MICRO LOANS? Author: Don Wagner
My research is on microfinance, a promising form of economic development. Microfinance involves making small loans (often as little as $100-300) to extremely poor entrepreneurs—usually women. The loans are very small by Western standards, but they often make a big difference in the opportunities available to these borrowers. Microfinance organizations exist throughout the world, and there are now approximately 100 million microfinance clients worldwide.
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The current research takes place in Uganda, where I work with the Salama SHIELD Foundation, an organization that is remarkably helpful in conducting research. The research focuses on how to make microfinance as effective as possible. I recently completed a project (with two co-researchers), which was based on interviews with clients about their experiences throughout the loan process.
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For example, the clients were asked about their experiences of receiving an invitation to participate, of deciding how to profitably use the funds, and of repaying their loans. They were also asked how the loan process affected their relationships with their husbands and within their villages. Using an ethnographic approach (common in the field of anthropology), we analyzed the transcripts to gain an understanding of the borrowers’ perspectives of the micro-loans which they received.
The borrowers discussed the opportunities that they saw, the fears that they faced, the process by which they worked with one another, the efforts they undertook to successfully repay the loans, and the strategies they used to ensure that everyone in their village repaid. In this project, two very different forms of analysis were combined to understand the borrowers’ perspectives. The analysis of strategic action involves rational economic thinking, but the interpretation of how the loan fits into borrowers’ lives is an anthropological pursuit.
We found that establishing trust is crucial in multiple ways.
Obviously, the microfinance organization needs to trust that the borrowers will repay, but we found that borrowers must also trust that the organization will treat them fairly and that the organization is good for the community. The evidence suggests that this trust is critical to clients’ extraordinary commitment to repaying their loans. In addition, borrowers from the same village cross-guarantee (i.e. co-sign) one another’s loans, so the borrowers must trust one another. In rural Uganda, the villagers know one another extremely well; nevertheless, we observed that the women need to reformulate their trust with one another because the loans add a new dimension in which the women are responsible to one another.
The risk that some villagers will not be able to pay some of their instalments on time is very real, because adverse events such as livestock dying, crops failing, or children falling sick, can and often do happen. We observed that groups of borrowers devise a variety of astute strategies to cope with this risk. Examples include joint projects, self-insurance schemes, and investing in assets that can readily be liquidated. This research has helped lenders understand how borrowers experience their loans and work through the loan process. This summer I hope to partner with colleagues on other projects that aim to further illuminate how borrowers make their loans work to improve the quality of life for themselves and their families.
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GATHERING EVIDENCE:
Centre for Health & Biotech Management Research
THE BASIS OF CHANGE Authors: Adelee McNevin and Jennifer Tasker
Most people acknowledge that change is needed in both our health care system and economy. But what needs to change? And how does one change it? These are complex questions that do not have easy answers. To contribute answers to these questions, the Centre for Health and Biotechnology Management Research (CHBMR) was founded in 2009 by Dr. Juergen Krause. The CHBMR works closely with government, industry, and other experts in the field to engage in extracting and analyzing data. It is important to start with facts in order to understand what is happening, what is working well, and if not, hypothesize and provide evidence why. Then decision-makers will have a more robust information base, using additional objective evidence to formulate their trajectory and policies.
P.E.I. will be the portal to Canada for the use of this treatment in health centres, with the first trials recently started in the Lennox Island and Abegweit First Nation communities. With financial support from the P.E.I. Department of Health and Wellness, other government agencies, and philanthropists, the CHBMR hopes to bring the program to Charlottetown later this year. Another leading-edge project is the Canadian Institutes of Health Research (CIHR) Strategy for Patient Oriented Research (SPOR). The CHBMR is part of this innovative Maritime research collaboration through the Maritime SPOR SUPPORT Unit, or MSSU, which is responsible for connecting research and practice within the health care delivery fields, focusing on the patient’s journey.
Take, for example, the newest initiative of the CHBMR to improve mental health and addictions treatment on P.E.I. Last year, the Centre connected with Dr. Kathleen Carroll at the Yale School of Medicine to bring her newly developed Computer-Based Training for Cognitive Behavioural Therapy (CBT4CBT) program to the Island. This exciting program is an add-on treatment to traditional therapies for drug and alcohol abuse. It has shown tremendous success in clinical trials in the United States, is cost-effective, and improves access to and consistency of treatment.
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MSSU on P.E.I. is working on several research projects to understand and improve health outcomes for hip and knee replacement surgeries, as well as breast cancer.
These projects work synergistically to form a bridge between health authorities in the P.E.I. government and the CHBMR to build part of a Secure Island Data Repository (SIDR) at UPEI, which is essential for protecting and sharing health data to enable researchers to better support evidencebased decision making.
In addition to health, the CHBMR also supports research in the bioscience sector, one of the priority sectors for economic development on PEI. The Centre has collaborated with researchers from the Keck Graduate Institute of Applied Life Sciences in California and the Georgia Institute of Technology to study the creation and growth of the bioscience sector on P.E.I., providing answers to questions about sustainability and human resource needs. The CHBMR partners with the PEI BioAlliance and other organizations to contribute to workshops, academic educational strategies, and networking events.
The Centre has members from different faculties across UPEI, collaborates with a number of external institutions, and is constantly looking for new opportunities and possibilities to forward its mandate in healthcare and bioscience research. For more information visit www.CHBMR.ca
The CHBMR strives to contribute to education and research while creating opportunities for those dedicated to advancing health and bioscience. In fact, many employees in these sectors are graduates from the University of Prince Edward Island, and the Centre regularly employs student researchers.
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SHANNON MACDONALD JOURNEY TO THE TOP Authors: Alex Whalen and Anthony Gill
The story of Shannon MacDonald (BBA ‘90) is one of a successful journey to the top of the accounting profession, but that also includes elements of international business, healthcare, and championing diversity. She has served in a variety of senior management positions for Deloitte, one of Canada’s largest accounting firms. Presently, she leads the firm’s Ontario Government Practice in addition to her role as Chief Inclusion Officer and Vice Chair of Deloitte’s Global Board of Directors. MacDonald, who is married with three children, is a shining example of the depth of opportunity that awaits UPEI graduates. She has twice been listed among Canada’s top 100 women in business, as well as Atlantic Canada’s top 50 CEOs during her time with Deloitte in Halifax. Spending her entire career at Deloitte, she has been able to take advantage of multiple opportunities, involving herself in her firm’s governance, specializing in government and healthcare practices, as well as being on the leading edge of diversity in the workplace.
In an ever-changing business environment, what is most important for today’s group of business students? “A variety of traditional academics and a better appreciation for diversity are key,” says MacDonald. “Academic standing matters. Being able to work with people of diverse backgrounds is important. There is also a great need for people to be able to understand multiple disciplines, so exploring different minors and/or degrees can be helpful.” Her rise to the top of her profession shows UPEI’s ability to develop top-calibre talent in a small-school environment. “I loved the serenity of the library, campus in the fall, and being a part of the student union.” She also encourages students to be involved in their campus in more formal ways. As someone who went on to serve in major governance and management positions through her career, she adds “being on the board of governors as a student rep was a great practical experience.”
Shannon MacDonald UPEI BBA alumna
Her engagement soon led to other opportunities. “My accounting professor, Ab Ferris, invited me to a reception at (then) Touche Ross in Halifax. I became very comfortable with the professionals there and knew they were the people I wanted to work with. Upon graduation, I was hired by Deloitte & Touche”. Some 25 years later, promoted to partner, she has gained experience in both the Halifax and Toronto offices. Her work was recognized in 2014 as the Chartered Accountants of Nova Scotia awarded her the prestigious FCA designation. Shannon MacDonald is just one of many examples of UPEI School of Business accounting program success. She credits the academic staff as a reason for her achievements. “I have to say that the professors were really amazing and left me with the feeling that I could do anything.” Within the field of accounting and across the business landscape, she has proven that to be true.
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Summer | Fall 2015
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