By jetting off to different continents this spring, two groups of SBA graduate students gained a new understanding of diverse cultures, along with the challenges and opportunities of doing business outside the United States.
Though both groups focused on the economic, political, geographical, cultural and social idiosyncrasies, one did so studying emerging markets in South America and the other by examining the ongoing transition to the euro in Europe.
Despite the differences, both groups gained an understanding of international markets, which is critical to succeeding in today's business world.
Formal study abroad opportunities have been available to SBA graduate students for more than a decade, but across the U.S., it's unusual. According to the Institute of International Education's (IIE) 2010 Open Doors report, fewer than 31,000 U.S. graduate students received credit for studying abroad in the 2008-09 academic year.
”To be a competent professional and to be competitive today, you need international experience,” says Peggy Blumenthal, senior counselor to the president at the IIE, in a March 2010 U.S. News & World Report article on the subject. She also notes study abroad programs are essential if U.S. students are to remain competitive with their global peers.
Understanding the emerging market
As part of an ongoing emerging market series of courses, Janell Townsend, global marketing expert and associate professor of marketing and international business, led the South America trip where students explored the business practices of Brazil -- a fast growing country with a population of nearly 200 million --- the cities of Sao Paolo and Rio de Janeiro, in particular.
Students visited businesses in a variety of industrial sectors including technology, agricultural and meat packing, automotive suppliers, cosmetics, banking and finance, energy, non-profits and a cachaça (alcohol made from sugar cane) distillery.
”The growth rate of Brazil is phenomenal, to the point of potentially overheating by growing too fast. It has a competitive automotive market, and for the most part it was closed,” says Townsend. ”With an emerging market, you have to understand how to do business there, because it may not be the way that business is conducted in more developed areas of the world.”
Students gained real insight into the business and culture of the country.
”Even with rigorous classroom preparation for the trip, I don’t think any of us anticipated the real knowledge we gained; not only of business practices, but also of the cultural factors that define a market," Sheri Profant, business development, General Dynamics Land Systems and M.B.A. student, says.
”Until you experience a trip like this, you don't understand it,” adds Townsend. ”I call it cultural “aha” moments -- little things, like the power of pantomime. You don't have to speak a language to be understood; you can find ways of communicating with people and getting things done.”
The laid-back attitude about schedules and punctuality of Brazilians came as a surprise.
”Our schedule (from the travel agency) changed daily,” explains Sara Johnson, regional director, financial aid, Dorsey Schools, and M.B.A. student. ”We learned that much of this is simply the way Brazilians do business. Business is very casual. In the U.S., we are used to prompt appointments and management of meetings.”
A major world trading power
Across the Atlantic, Frank Cardimen, special lecturer, marketing and management, led a group of graduate students studying the European Union (EU) in the Czech Republic, Germany, France and the U.K.
”With both the EU and euro under strain, we set out to understand the effect the difficulties are having on the U.S. dollar and business,” explains Cardimen.
During the trip, students discussed strategic business issues with local corporate executives, economists, academicians, politicians and U.S. Embassy personnel, and toured manufacturing plants.
In one meeting, Mark Scher, Economics/Finance/Accounting '90, wealth manager and financial planner for London-based MASECO Private Wealth, offered perspective on finance and investing in the U.K.
”Mark's in the money business, working with Americans in Europe, so his presentation was fantastic,” Cardimen says. ”We learned about the funding industry and the niche business he is in."
In a visit with Czech National Bank (CNB) leaders, students learned about the politics and process of transitioning from the local currency to the euro. The CNB is the centralized banking institution for the Czech Republic – similar to the Federal Reserve in the U.S.
Embracing cultural differences
The combination of international business, culture, history and visiting landmarks proved invaluable.
”In each country, we focused on some local lore and history,” says Cardimen. ”The culture and history was of vital importance and all part of the learning process.”
Johnson remarked on the energy in Rio. ”This city brought together such an incredible blend of history, culture, health, business and fun,” she says. ”The streets were buzzing with traffic and people. There is beautiful architecture all over the city, and the lively nightlife shuts down the streets.”
Globally connected
Townsend is a strong believer in the importance of international study and stresses this with her students.
”With global competition, while firms search for efficiencies and effectiveness, students should have, at minimum, a general knowledge of the global business environment,” she says. ”We live in a global marketplace, yet they must absolutely understand the local landscape. Most will never progress beyond mid-level management without this understanding. To move into a higher level or executive position, their global experience is extremely important.”
By Dawn Pauli, CAS '88
By jetting off to different continents this spring, two groups of SBA graduate students gained a new understanding of diverse cultures, along with the challenges and opportunities of doing business outside the United States.
Though both groups focused on the economic, political, geographical, cultural and social idiosyncrasies, one did so studying emerging markets in South America and the other by examining the ongoing transition to the euro in Europe.
Despite the differences, both groups gained an understanding of international markets, which is critical to succeeding in today's business world.