Thunderbird Magazine, Volume 49, Number 3 1995

              Graduate
International
Volume 49,
1995
Eric Schroder '79 on Thailand P. 7 • China Joint Ventures P. 12 • Asia/Europe Reunions! P.39
THUNDERBIRD
8 12
2
China's Golden
Goose
Will 1997 bring tragedy or
comedy to Hong Kong?
39
Malaysian Joint Ventures T'bird
Customs in China Reunions!
SaI\iyot Dunung '87 Practical guidelines for Photos from the 1995
offers cultural business success from Professor Asian and European
advice. Min Chen. reunions.
7 Alumni Viewpoint
16
20
44
Eric Schroder '79 previews Thailand's future.
News
New VP oversees academic departments, Dresdner Bank CEO
speaks, Olympic medalist Tanya Hughes willS bronze, and more.
Network & Updates
T'bird news from around the world.
Alumni Focus: Japan, Vietnam MBA, Pandas, Latin America
Letter from Elsewhere
Buddhist Monks and Thailand, from Brian M. Kelly '83.
Thunderbird Directory
Alumni Relations
e-mail
Admissions:
Alumni Relations:
Career Services:
Communication:
(602) 978-7135 (phone)
(602) 978-6814 (fax)
johnsor\i@t-bird.edu
combes@t-bird.edu
casej@t-bird.edu
crowelln@t-bird.edu
mcmillat@t-bird.edu
Thunderbird Magazine
Volume 49, Issue 3
1995
A publication of the
AluItUli Relations Office of
The American Graduate
School of International
Management, 15249 N. 59th
Avenue, Glendale, AZ
85306-6006
(602) 978-7135,
FAX (602) 978-6814
Assistant Vice President for
Communication and Editor:
Nelda S. Crowell
Managing Editor:
Thomas McMillan
Contributing Editor:
Pam Selthul1
Contributing Writers:
Min Chen
Sat\iyot Dunung '87
Brian M. Kelly '83
Nancy K Napier '75
Allison Underhill '86
Communication Secretary:
Gwen Swanson
Editorial and Production
Assistants:
Reid Belu'endt
Avid Navidi '91
Jay Oglesby
JeffUnze
Design:
Pat Kenny Graphic Design
Assistant Vice President
of Alumni Relations
and Giving:
Susan Combe
Assi!'ltant Director of
Alumni Relations:
Michelle Olson
Alunmi Relations Staff:
Advertising Director:
Janet M. Mueller
Receptionist/Secretary:
Cindy Hepburn
Receptionist/Clerk:
Chris Mosakowski
Submissions may be
sent electronically to
Nelda S. Crowell
througl1 the Internet:
crowelln@t-bird.eduor
througl1 the CompuServe
Thunderbird FOlUm
72662,3422.
ON THE COVER:
Chinesejunk overlooking
Hong Kong, murtesy Hong
Kong TOltrist Association
Thunderbird Alumni
Association 1994-1995
Board of Directors and
Officers:
Chatm1an ofthe Board:
Stephen K Orr '79
President:
H. Gene Wick '60
Vice Presidents:
Michael Dillon '78
Maarten Flem'ke '79
Thomas D. Hobson '79
LindaJ. Magoon'84
Acting Secretary:
Michelle Olson
Ex Officio Members:
Roy A. Herberger, Jr.
JOM E. Berndt
John C. Cook '79
President, Associated
Students Legislative Council
Board Members:
George T. DeBakey'73
Michael T. Dillon '78
Webb F. Elkins '63
Thomas L. Guetzke '86
ChristopherP.JoID1son'86
Larry K. Mellinger'68
McDiamud R. Messenger '72
Carolyn Polson O'Malley '70
Joseph A. O'Neill '80
Richard E. Ragsdale '67
Mike A. Santellanes, Sr. '60
Martha S. Van Gelder
Gypton '88
Honorary Board Members:
Joseph M. Klein '47
The Alunmi Relations Office
has implemented a new data­base
software to better main­tain
and enhance the Thunder­bird
network. Alumni data
continues to be released to
the Thunderbird conununity
only for noncommercial pur­poses.
Please contact Alumni
Relations if you do not want
your name and preferred con­tact
infoffi1ation given to your
peers upon request.
Thm1derbird, The Ametican
Graduate School oflnter­national
Management, is com­mitted
to non-discliminatory
practices in employment,
admissiOns, and educational
programs and activities. Thun­derbird
is an equal opportuni­ty,
affinnative action employ­er
that complies with applica­ble
federal, state and local
laws, statutes, orders and reg­ulations
prohibiting discrimi­nation
on the basis of race,
color, religion, national origin,
gender, age, disability and vet­eran
status.
being booked.
Alwnni responses to the travel survey in
the last magazine indicated specific inter­ests
in "unique travel" destinations, "cultur­ally
enriching" experiences, and trips that
meet "diverse interests."
As a result, the alwnni travel program is
developing custom T'bird excursions to a
broad selection of global destinations.
What Kinds of Trips?
The travel program's goal is to provide
unique trips that offer alwnni experiences
unmatched by typical travel companies.
These trips will include:
• "Off the beaten path" journeys
designed for small groups of friends who
prefer unique encounters, such as interac­tion
with the vanishing cultures of the
Amazon rainforests in Venezuela
• Culturally enriching experiences in
regions such as India, where you stay in for­mer
palaces of Maharajas, take jeep tours
to tiny agrarian villages unspoiled by
tourists, and interact with villagers working
in the fields.
• Enlightenment tours that focus on
building international relationships and
cross-cultural understanding by exploring
undiscovered areas in countries like China
or Vietnam-and which also include the
special involvement of local Tbird alumni.
• Active excursion packages, such as a
fishing trip to the remote King Salmon,
Alaska, a trek through New Zealand's
Milford Sound, or photographic safaris of
Africa.
• Group trips with a common theme but
multiple activity options designed to meet
individual interests, such as a one-week trip
to Costa Rica offering white-water rafting,
hiking a volcano, or a refresher Spanish
class.
In addition to providing opportunities for
alumni to reunite in exciting locations, the
new travel program will also benefit Thun­derbird.
A portion of proceeds from the
program will help support important
School initiatives like the Thunderbird
scholarship program.
Thanks to all the alumni who filled out the
travel survey. Your ideas and preferences
will help us better
tugetThundeibirds
travel program to
your needs. Special
congratulations to
Irene Selwa '90,
who won the $500
credit in our survey
drawing towards
any travel program
trip.
In addition to the "Journey
for Discovery: India" trip
(see below), several fun
post-homecoming trips
are already being booked,
including travel to Mexico
City, the Grand Canyon,
Acapulco, Las Vegas, and a
hot-air balloon trip in New
Mexico. For a complete list
of options and prices, call
Four Winds Travel at
(800) 875-3363
ext. 12, or fax
(770) 698-0460.
THE GOLDEN GOOSE: The Hong Kong skyline at twilight. peaceful for the moment.
When the clock strikes mid­night
on June 30, 1997,
control of Hong Kong,
arguably the most indepen­dent
financial and commercial business
center in Asia, will revert to China, pos­sibly
the world's most controlling gov­ernment.
What will change? The answer
to that question, say many experts, is
like China itself-difficult to guess, and
almost impossible to know for sure.
To understand how Hong Kong's
reversion to China is being talked
about, Thunderbird spoke with several
alumni and professors who
have spent time on the front
lines of Asian business. Some
T'birds are pessimistic about
Hong Kong's chances. They
point out the Middle King­dom's
history of strictly con­trolling
internal affairs as an
indication of how Hong Kong
will be run. "Hong Kong is an
exciting place, where anything
is likely to happen," says one
alumnus. "But you will have to
have the stomach for it."
Others are cautiously opti­mistic.
They believe that
change is inevitable given
China's national pride, but that
THUNDERBIRD 49 131 1995
Hong Kong is basically too important to
China's economic future for Beijing to
radically alter the status quo. "Hong
Kong is still the gateway to the main­land,"
notes another alumnus. "Busi­ness
activities will continue here and
individuals will make their fortunes. No
one knows for sure what the final out­come
will be, but I do not think 1997
will mean the end for Hong Kong."
Still others see the change from
China's viewpoint. "With patience, and
with understanding, the integration of
China into the world economy will her-ald
the beginning of a new era of global
economic vibrancy," The Honorable Dr.
David K.P. Li, deputy chairman and
chief executive officer of The Bank of
East Asia, Ltd., and Thunderbird
trustee, told the audience at the
School's recent Asian reunion in Hong
Kong, where over 125 alumni and sup­porters
from all over Asia discussed
current business issues (see p.39 for
coverage and plwtos).
Despite these differing opinions, per­haps
the most telling fact about the
impending takeover is the underlying
reluctance among many
T'birds to speak openly about
what is happening today, and
what might happen in the
future. Staring into that future,
some Tbirds, like most busi­ness
people in Hong Kong and
China, understand the value of
keeping a low public profIle
when dealing with China. No
matter which way 1997 goes,
one thing is for certain: Beijing
does not like to be backed into
a corner.
DOUBLE DECKERS:
<1: The vestiges of British rule will
~ always remain in Hong Kong.
THE GOLDEN GOOSE
George O'Keeffe '77, vice president
and managing principal, worldwide
information services, at Unisys (Asia)
Ltd. in Hong Kong, is one of the opti­mistic
ones. "I think Hong Kong will
remain business as usual for the most
part after 1997," says O'Keeffe, who is
also a member of Thunderbird's Global
Advisory Council. "The Chinese are a
very pragmatic people. They will try to
ensure they don't kill the goose that lays
the golden egg."
O'Keeffe says the reason China will
not extend too heavy a hand over Hong
Kong is for practical reasons. "If they
do, foreign businesses will bail out and
capital will flee. That's the last thing
China needs in terms of continued eco­nomic
growth for all of China. Hong
Kong is extremely important to China,
and will remain so for 20 to 30 years. "
Yet while O'Keeffe is generally opti­mistic
about Hong Kong's future, he is
also an experienced Asia watcher. He
says that he has worked in Asia too long
to think that there won't be some mea­sure
of serious uneasiness when China
takes control of the British colony.
"While China has a very good history
of sticking by its agreements, it's still
too early to say what will eventually
happen. 1 believe you will see a lot more
posturing from the Chinese but without
significant change in the status quo."
O'Keeffe believes the most natural out­come
in 1997 is that Hong Kong will
continue to be run by the local govern­ment
and business establishments, but
"with more influences from Beijing. "
The one area O'Keeffe strongly
asserts China cannot afford to change is
Hong Kong's 'rule of law' [the legal
framework upon which business, poli­tics,
and freedom is
based]. "The rule of law is
the single most important
element of Hong Kong's
success," states O'Keeffe.
"It is the thing of most
concern to both foreign
businesses and the local
populace. If the rule of
law changes, it will
destroy confidence in the
system, and Hong Kong is
built on confidence."
MIDDLE-CLASS FEAR:
Will freedom be curtailed?
Don't miss
A Prisoner of Its Own Success?
the 1996 Asian
Reunion, Sept. 6-8
in Singapore! (call
602.978.7135) Professor John Frankenstein, a
senior lecturer at Ow University of
Hcmg Kcmg Business ScIwol and senior
research associate at Thu7Ulerbinl, Iu;u;
observed d.eveInpments between Hcmg
Kcmg and Chinafor over 40 years.
This past April at Ow Asian reunion
he 1II.Oderated a business panel on Ow
lessons learned in Ow China market by
multinational companies. On a recent
trip to Thu7Ulerbinl, he spoke on what
might Iulppen in
1997.
China's political culture. But
there have been many surprises
over the last 15 years. Who knows?
• What about the competition
between Hong Kong and
Singapore?
Many inside and outside of China
believe that Shanghai is a much more
viable threat, and will reemerge as the
most important financial center. The
city is being trans­fonned.
Before w. w.n,
Hong Kong was a
• How did the sleepy town and
reversion of Hong Shanghai had all of the
Kong to China action. The thinking is
arise in the first that Hong Kong will
place? remain to service
I believe it came about Guangdong. Most of
when Margaret the economic activity
Thatcher, filled with there is financed from
the flush of victory Hong Kong already.
over the Argentines in Shanghai lies near the
the Falkland's war, . Yangtze river and is in
came to Deng Xiao- FRANKENSTEIN: 40 years expenence the heartland of
ping in the early 1980s wishing to renew Chinese industry and technology. It is
the lease. No one in China wanted to Chinese driven, whereas Hong Kong is
deal with this issue. Chairman Mao is on more foreign-interest driven. Remem-record
sa,ying, "Let Hong Kong be Hong ber, the post-1992 boom in China
Kong." But once the issue was raised, started in Shanghai.
there could be no other answer than to
say that China would be taking Hong
Kong back. During the early 198Os, ris­ing
nationalism resulting from the
inability to reunify Taiwan almost man­dated
that Deng Xiaoping make this
stand. Essentially, in 1997 the landlord
is calling in the lease.
• What will the Chinese do in 199n
The Chinese theory of what will happen
in 1997 is that Hong Kong will become
the central a.dminis­trative
center of
China. Likewise there
will be a basic law
that under the rubric
of one country-two
systems, Hong Kong
would be allowed to
have unchecked
development for the
next 50 years with
the current legal sys­tem
unchanged.
Many who have stud-
~ ied China are skepti.­:
I: cal about this, given
• What do people in Hong Kong
fear about 199n
Some in Hong Kong are concerned that
things will become a little less struc­tured
and corrupt, as China doesn't
understand Hong Kong fully. There are
some minor crime problems, but Hong
Kong has a wonderful public transport
system, a communications system, and
is culturally vibrant. Many fear that
China will inadvertently mess things up.
The middle class in Hong Kong leads a
comfortable and free lifestyle today.
They fear that the control will shift from
the economy to their lives.
• What control will Beijing assert?
The older generation of China sees the
issue of regaining Hong Kong not in
economic terms, but in terms of finally
ending the Opium War and regaining
controL Hong Kong will be very depen­dent
upon the whims of Beijing. The
dependency relationship has been
reversed. Yet many feel that China
would never kill the golden goose. In
reality, Hong Kong is a prisoner of its
own success.
THUNDERBIRD 49 131 1995
HONG KONG STREET OPERA: Will 1997 bring tragedy or comedy to the British colony?
PRAalCAL PEOPLE
According to Min Chen, assistant
professor of international studies, the
question of what will happen to rule of
law in Hong Kong is the million dollar
question come 1997.
"The Chinese are practical people,"
explains Chen, who is an expert on the
Asian region, particularly China and
Hong Kong. "I think rule of law must
remain in Hong Kong." Yet Chen is also
practical himself, and knows that the
most important thing to Beijing is the
ability to control its own affairs. "I
wouldn't rule out the possibility of
China interfering in legal matters that
have political implications."
Chen also believes that China's real
concerns are not necessarily what the
popular media portrays them to be.
"What China really feels bitter about is
the timing of Britain's move to greater
direct representation in the legislative
council," notes Chen. He says China is
understandably angry that Great Britain
suddenly shifted from a representa­tional
election system that allowed gov­ernment
appointees, to one based on
popular elections by the people.
"All China wanted was the same thing
Great Britain had until they changed the
rules-the ability to appoint people
sympathetic to the ruling government."
However, in the recent Hong Kong elec-
4 THUNDERBIRD 49 131 1995
tions, the pro-democratic party trounced
the Beijing-backed candidates. This,
says Chen, is a change that does not sit
well with Beijing. "What China really
wants is a pro-Beijing government, and
to keep Hong Kong the financial and
trade center it is now. With the new sys­tem
of direct elections, it is hard for
Beijing to have the control it desires. "
Like many others, Chen believes that
China's treatment of Hong Kong is in
direct proportion to the colony's eco­nomic
importance to the mainland.
"China has a great stake, both politically
and economically, to make Hong Kong
successful," notes Chen. "I do not think
China will take any dramatic steps to
affect Hong Kong's stability. "
Chen says he ultimately sees Hong
Kong remaining a free business center,
but with what he calls 'limited political
freedoms.' "What I mean by limited
political freedoms is that people will be
able to talk about Hong Kong, but not
about China Anything that might cause
anxiety to Beijing will be restricted. "
In many ways, Chen believes China is
not so much worried about allowing
freedom to Hong Kong, as it is about
Hong Kong's potential impact on main­land
China "That is the lesson the gov­ernment
learned from Tiananmen
Square. Hong Kong will be restricted in
terms of anything that is sensitive to
China"
Asian Cuniculum
Below if a 8G'IIIIJ'lle of 7Jautuler6inl
couna and f11'OfI"tJ'1M ". .,...,..
cally pnIJJCIN""""'ftw ~ in
.Asia:
Coursas
• REGIOItAL IUSlNlSS EJMRON.. MENf. ~. 0Mn CON:<.Iateci
f'oeus on po1UieaI8IId aodal factolB u.t
shape the IeIIltIes ofbusine81 in ~
addreaIes the Je8lon's hist.cJrJ, ..,..
pity, poJitlcs, culture, economlc!a, JaWs,
and CUI'ftIIIt buaIness ....
• MODlIN OIINA: Pro9kIeIIIiIMuced undeist&hdlug ott:he QdQeae IDIIbt
(PRe, TaiwaD, 1lOIII Konc) 8Dd fIB ~
of doing busIIua, includIbi culture, tra­dition,
NItgIob, ideolOlY. poIIdta, aDd
economics.
• ASEAN: FaploneImportaDt ......
issues reIatAId to ASEAN COUl\tJies,
including I18&ioDdsm, I1liAJn I ...,
regional economie and bUIiDeas dMl­opment,
.... fNIIIQ. al1d~.
• COMPI1I1MMISSANO ..... GE
MENT IN ASIA: Eumiiles tbeidueDce
of.Asian eultural tIIdtaioBs onlJuelnees
compares regiotIal flade ~ .'
addresses the practical upedB ofa.
West joint ventures and t'OJIIUW"'daJ
negoUadons.
0tMr1fUl,jqr oot.neS: ModemJapan and
Korea; int.eIIsive Qdnese and Japueee
language PNlPalns; Intemattoaal
Political Economy (lPE).
Winterim Progt_ns
• WA4iEiW TOKYO: SD ...
explore fIrsI;haDd the pl'OCBI."wbIdl
foreign COlpoliidions enter the Japaoese
market; includes Involvement of c0rpo­rations,
executlves, and Japmeee p­emment
agencies.
• ASIAIPAOfIC _ MMACaIENT:
Studenm encounter cbal1en8es of
statlIng, joint-venture management, tech­nology
transfer, etbics, and distribution
in Korea, Japan, India, VieIDam, China,
Siberia, and other Asian nations.
OVerseas Programs
• CHINA: Ten-week language, culture,
poHUcs, and business practices seminar
split between the Sbangbai Univenlity of
Finance and Economics and the
University of International Busine8s and
Economics in Beijing; students visit
Chinese companies andjojnt ventures,
travel throughout China.
• JAPAN: 1'hundeIbh'd Japan Center, a
~-round educational faciIIt¥ maln­tained
in metropolitan ToQo.
• KOREA: Semester exchange program
with the Graduate School of
International StudIes at Yonset
University in Korea.
USING HONG KONG
Craig S. Heinz '81, managing direc­tor
of STIR International Holding BV,
represents Asian companies moving
into the European markets as well as
foreign companies moving into Asian
markets. One of Heinz's clients is a
direct sales company, similar to Avon or
Amway, that is currently making
inroads into the heart of China. Heinz
contracts with Chinese distributors
who act as entrepreneurs for his client.
From this mainland "grassroots" level,
he sees the China-Hong Kong drama
slightly differently.
"I believe Hong Kong is going to capi­talize
China, rather than China commu­nizing
Hong Kong," asserts Heinz. "My
experience is that the Chinese are slowly
feeling their way toward capitalism. The
Chinese people want to buy things. This
is especially true in the southern
provinces and the coastal areas. What I
mean to say is the concept of capitalism
is the thing that will overtake China, not
Hong Kong itself."
In fact, Heinz envisions blending
occurring in both directions-Hong
Kong will become more like China, and
China will become more like Hong Kong.
"People used to go into Hong Kong to
followed ~y economic seminars in
'Kuala L1l!l1pur, Singapore and ,
Hong Kong.
A 12 Day exotic adventure 'in Borneo and
Langkawi followed by six days of Pacific
Riqt Economic Seminars •
LEGISLATIVE BUILDING: Any threat to rule of law
could destroy confidence in Hong Kong.
connect with China traders. Now they go
straight into mainland China to do busi­ness.
I personally see China becoming
more of a central trading hub itself, and
I see Hong Kong becoming just another
big mainland city."
In the short term, Heinz says there
will be some economic cleansing and a
period where China lets Hong Kong
know who is boss. "I think a low profile
will suit Hong Kong well in the short
term, since once China takes control
Hong Kong won't have any weight to
push around. In the long term, however,
I see them both absorbing each other.
The two will simply learn to get along."
PlAY 0NIx. Dec:em6er 21.at • Your Adventure Begins
• Snorkel on Sapi Island • Golf the rainforest of lush Langkawi Island
~ • Ride white wat~r rapids on the ~adas River • Relax by the pool
As someone who has more allegiance
to China than to Hong Kong, Heinz also
sees some of Hong Kong's stature as a
financial center shifting to mainland
China "I see Shanghai growing in leaps
and bounds," says Heinz. "It's a city peo­ple
like to like. Many insurance compa­nies
and banks are now basing their
headquarters in Shanghai."
Whether a lot or a little of Hong
Kong's power shifts to China, Heinz
thinks that the colony will play a very
important role in China's present and
future growth as an economic super­power:
"China will definitely use Hong
Kong to continue to learn," he says.
PESSIMISM
Not all T'birds are optimistic about
1997. One Hong Kong alum, who
requested anonymity in exchange for
candidness, says that Hong Kong's future
is not as bright as some might think.
Thunderbird: What is your overall
view on what will happen when Hong
Kong reverts to Chinese rule?
Executive: I believe Hong Kong will
continue to function on the surface very
much the same as before. However, we
will be affected by a change in the
press, Hong Kong's openness towards
• ~arch for the 'elusive orangutans in the Borneo Rainforest • Cruise
the Sukau River in search of the Proboscis Monkey
• Christmas will be.spent a~the Shangri-La's Tanjung Aru Resort Contact: 800.9.ASLAN.9
complete with a special dinner. .
WORK Om~ January 1·7· Economic Opportunities Available
Sponsored by the-Economic Co~ssions' of Malaysia, Sjngapore,
Hong Kong and the Peoples Republic of China.
OR Do BorH!
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~ ~'l11'\\.f 20440 Saplual Drive, Santa'Clarita, CA 91350
TEL.80S.297.9100 / FAX.80S.297.4044
e-mail: inte~et:02170.3602@1compu~erve.com
the West, and a sharp
decline in its opposition
of Beijing.
Individual freedom of
expression will be tried
to the limit. The Chinese
will only tolerate so
much speech against the
Party, and they will prob­ably
invoke some sort of
state emergency if a true
demonstration against
the government occurred
here. The Chinese will
not change their doctrine
for Hong Kong. They will
bend the rules of the 50-
there is a government to
look after them and tell
them what to do, they
will not be too affected if
they lead simple lives
and obey the authority.
They know Hong Kong
will remain affluent.
Companies are still
considering what a Hong
<I: Kong-based regional
~ headquarters means.
"China is still the Middle Kingdom, Some companies are
reluctant to pull out all
together for fear the
verse."- The Hon. Dr. David K.P. Li, Chinese will take this as
the land at the centre of the uni-
CEO Bank of East Asia, Ltd. a slap in the face. Many
Executive: No way will there be a
free press under the Chinese. Many
pressures will be put upon publishers to
appease Beijing.
Thunderbird: Who will run Hong
Kong after 1997?
Executive: Beijing, and Beijing's
appointed people, including Hong Kong
business people.
Thunderbird: What future do you see
for T'birds in Hong Kong and China?
Executive: Fairly good if you have the
skills, although anti-Western sentiment
is growing. Unemployment is also grow­ing,
which means Hong Kong's not the
Mecca it used to be for job seekers.
year agreement to fit their version of the
story.
are consolidating their Pan-China [Hong
Kong, China and Taiwan] businesses in
Hong Kong and moving other Asian
business headquarters to Singapore or
Kuala Lumpur.
Thunderbird: How important is Hong
Kong to China's future prosperity?
Executive: Extremely important.
Thunderbird: What changes do you
see occurring already in Hong Kong,
both in business matters and in people?
Executive: I see a great deal of denial
on the part of the people who do not
have foreign passports. Also it hit me
strongly how Confucianism is really part
of Chinese history and how people
seemed resigned to their fate. Authority
plays a large role in the Chinese upbring­ing.
I think some people feel as long as
Thunderbird: Do you think Hong
Kong will retain its role as the financial
and commercial hub of Asia?
China wants to keep it profitable, but
controlled. Will that value keep it safe
from Beijing's political hands? On the
surface only. •
if you would like to express your opin­ion
about the Hong Kong-China situa­tion,
or about any comments made in
this story, please send your replies to:
Ex ecutive: Yes. No other cities are
becoming more like Hong Kong, except
perhaps Singapore. Nelda Crowell, Office of Communica­tion,
Thunderbird, 15249 N 59th Ave.,
85306.
Thunderbird: What about the issue
of a free press?
REUNION INSIGHTS "Help shape the destiny of China"
The Hon. Dr. David K.P. Li, deputy chairman and chUif
executive of Hong Kong-based Ba:llk of East Asia, Ltd., and
Thuru1erbird trustee, was the featured speaker at Thunderbird's
1995 Asian alumni reunion held in Hong Kong. BeWw are
insights into China he offered to alumni.
• On China's desires for capitalism: One of China's greatest
puzzles is the dichotomy between what exists and what is
desired. While people may live in the most humble of dwellings,
they aspire to the luxury that they perceive exists in Hong
Kong .... With every new product launch, Chinese consumers
become more sophisticated and discerning. Televisions, VCRs,
and refrigerators are already hot sell­ers
in China and consumers are
already brand conscious.
• On distrust of the west:
[The Chinese have] a traditional dis­trust
of foreigners, a natural unease
about how colleagues and bureau­crats
will react, the fear of losing self­reliance,
and the concern that
Western capitalism is a corrupting
force .... you should not be offended
by any of these sentiments. For many
Chinese, China is still the Middle
Kingdom, the land at the centre of
the universe. They believe that China
Dr. David K.P. Li deserves special treatment, a convic-
6 THUNDERBIRD 49 131 1995
tion often reinforced by investors' eagerness to enter the market
• On China's complexity: John Novosad, Avon Product's
Executive Vice President .. describes China as "Rubik's cubes
within a Rubik's cube." China is not one market but many, and
sometimes they don't seem to fit together .
• On the legacy of Communism: Beyond China's cultural
heritage, the legacy of central planning also presents chal­lenges
.... Under a command economy, your Chinese colleagues
would have had no need to analyze or anticipate trends, to
respond to change, or to understand profit and loss.
• On opportunities in China: Don't believe everything you
read about China. China will "boom" and China will "bust" But
China will continue its upward momentum. Whatever you may
read, investors are acting for the long term because they see
opportunity. That is why you all have come to Hong Kong.
Because if you have the skills to help a company grow, and the
ability to grow with a company, the opportunities in China are
nothing short of phenomenal.
• On shaping China's destiny: The world's business and
management frontier offers you the chance to help shape the
destiny of China into the 21st century, and probably mould the
destiny of world business, because you will be helping to inte­grate
China with the global economy .... Integration requires the
building of genuine understanding-on both sides. With patience,
and with understanding, the integration of China into the world
economy will herald the begirming of a new era of global
economic vibrancy.
EYES AROUND THE WORLD
A Country Manager's View of Thailand
Eric D. Schroder '79, Johnson & Higgins PB Co., Ltd., Bangkok
Eric D. Schroder '7~,
country manager tn
Thailand for insurance
giant Johnson & Higgins
since 1989, has spent the last
13 years working in Saudi
Arabia, Indonesia, the U.S.,
and Thailand. Schroder
returned recently to Thun­derbird
after a 16-year
absence, where he guest lec­tured
in the Regional Busi­ness
Environment/Asia class.
Here he shares his views on
Thailand:S future.
•
Q: What niche is Thailand
carving out in the highly
competitive Asian market?
A: Thailand is setting itself
up as a regional financial ser­vices
hub for Southeast Asia
It wants to be the source of Schroder teaching RBE/Asia class
technology and financial services. The
problem is they can't do that if they con­tinue
to have regulations that are fairly
restrictive and that don't give compa­nies
based in Thailand a free hand. I
think the country realizes it can't con­tinue
to be protectionist and at the
same time expect to be a hub for the
rest of the region.
Q: Shouldforeign investors be ner­vous
about Thailand:S new govern­ment?
A: No, I don't think the new govern­ment
will significantly change the busi­ness
environment. If anything, there is
concern the government might be too
pro-business and allow the economy to
overheat. But they would not try to put
the genie back in the bottle and slow
things down. Business in Thailand
seems to go on without much interrup­tion,
regardless of the changes in the
government.
Q: What wiU be the next big busi­ness
development in Thailand?
A: The next big thing will be liberal­ization
of flnancial services, banking,
and insurance industries. Currently
there are a number of regulations in
Thailand that make entry into these
areas difficult, like restrictions on for­eign
ownership and labor laws that pro­hibit
foreigners in certain occupations.
Right now a major U.S. insurance group
is waging a battle with the Thai admini.s­tration
regarding licensing of their fully
owned Thai subsidiary. It claims its sub­sidiary
is a Thai company because it
was incorporated before present laws
were on the book, and therefore should
be allowed to have branch offices. The
government disagrees.
Q: What role do you see Thailand
playing in the China-Hong Kong
drama?
A: The country is positioning itself as
one of the safe havens in the region for
business people concerned about what
will happen when Hong Kong
reverts to Chinese rule. Thai­land
has openly sought
Chinese investment from
Hong Kong, believing that
many investors want to diver­sify
their holdings in advance
of 1997. I'd say it has been
moderately successful in
attracting Chinese investors to
send their plants and capital to
Thailand.
Q: What are the rules of
engagement for joint ven­tures
in Thailand?
A: Most investors in Thai­land
will have to come in as a
minority joint-venture partner.
The investment laws are such
that foreigners can own no
more than 49 percent of any
Thai company. A treaty of
amity between the U.S. and
Thailand allows U.S. nationals
and U.S. corporations to own
100 percent of a Thai company, but that
treaty is subject to being overruled by
various ministries. For example, in my
industry [insurance] the treaty is not
applicable because the ministry of com­merce
has more specific rules regarding
foreign investment in insurance compa­nies.
Q: Any growth predictions for
Thailand?
A: Thailand would be one of my high­est
investment priorities. The economy
is booming, with annual growth around
8 1f2 percent. Thai labor is perhaps more
expensive than Vietnam, China or
Indonesia, but it is also more skilled.
The country is looking for more high­tech
investments and fewer invest­ments
that rely on inexpensive,
unskilled labor. The government will
need to address infrastructure issues
such as roads, ports, and telecommuni­cations.
I believe Thailand will remain
one of the most interesting places for an
expatriate to work. •
"If anything, there is concern the government might be too pro-business."
THUNDERBIRD 49 131 1995
CULTURE & BUSINESS
Doing Business in Malaysia
Adapted from Doing Busi­ness
in Asia: The Complete
Guide, by Sanjyot P.
Dunung © 1995 Sanjyot P.
Dunung. Reprinted by per­mission
of Lexington Books,
an imprint of Simon &
Schuster, Inc.
8 THUNDERBIRD 49 131 1995
Sanjyot P. Dunung '87 offers practical advice on the
cultural aspects of conducting business in Malaysia
As president of a global firm specializ­ing
in providing information about
other countries, I often encounter
business people interested in a country sim­ply
because it is the new "hot" economy. Yet
they know nothing about its people or how
matters are handled in business and social
contexts. At Thunderbird, we were taught to
always know about people and culture.
Here's a practical review of the cultural
basics of doing business in Malaysia, one of
Asia's rising economic stars.
Making Contacts
As anyone conducting business in the
Asian region knows, initial contacts set the
stage in most countries, and Malaysia is no
exception. While introductions are not
"required" in Malaysia as they are in China, a
strong introduction will certainly speed the
initial process. Introductions may also
prompt your local Malay counterpart to dis­close
more information than normal about
his or her company, products, and objectives.
Where do the most useful introductions origi­nate?
Seek out former government officials,
law and consulting firms, bank and corporate
board members, trade organizations and fel­low
T'birds to introduce you.
On a more general level, your business
relationships with the people of Malaysia will
depend on their education level and expo­sure
to the world outside their country. The
population of Malaysia is approximately 19
million and consists of three main ethnic
groups: Malays (60 percent), Chinese (30 per-
cent), and Indian (9 percent). Since eth­nic
differences are an underlying factor
that permeates all types of business
issues, you should learn about the back­ground
of your specific local counter­part
before your first visit, or early in
the first meeting. Even in the private
sector, ethnic differences affect hiring
decisions, including the selection of
outside consultants, lawyers, accoun­tants,
and bankers.
In fact, in certain situations it may
prove more helpful to have a local
Malay partner rather than a Chinese or
Indian partner. For example, firms inter­ested
in bidding on government con­tracts
must have local Malaysian
partners, as Bumiputra agents (indige­nous
Malays) get preferential
treatment in government
dealings.
trial Development authority (MIDA) ,
which acts as a one-stop resource
agency to assist foreigners in establish­ing
businesses. (See p.lO Important
Contact Information.)
Meeting People
While the specifics of body language
may differ across the various Asian cul­tures,
in general it is a very important
aspect of conducting business. Malay­sians
greet one another with a hand­shake
and a warm smile. Since 53
percent are Muslims, they often bring
their hands back to their chest to sym­bolize
that the greeting comes from the
heart. Indian Malays may greet you in the
more traditional style many T'birds are
ECONOMIC OPPORTUNlnES
Bright Forecast ...
Malaysian culture-­and
business-is
strongly influenced by
the Muslim religion,
which arrived in the
early 15th century A.D.
Shown here (opposite
page) is the Sultan
Abdul Salah uddin
aware of, called the
namaste, which in­volves
placing both
palms together at
chest level and slight­ly
bowing the head.
When interacting
with a Malaysian
woman, wait until a
hand is offered before
Mosque, in Selangor. you shake. Due to the
Kuala Lumpur (left) is conservative nature
Malaysia's capital of the culture, a slight
city-and site of a new bow of the head is
$3.5 billion interna­tional
airport opening
in 1998.
often more appropri­ate
when meeting a
woman. Since there
are a number of fe­male
professionals in Malaysia, it is best
not to make any assumptions about a
woman's position until you learn her
title.
Like the Thais and many other cul­tures,
Malays consider it very rude to
cross your legs. Why? Showing the sole
of your foot or your shoes is considered
disrespectful, as feet are considered
unclean. Avoid offending by keeping
both of your feet flat on the floor.
A few other important body-language
rules are worth keeping in mind. Like the
Indonesians, Malays consider the head
the spiritual part of the body, so never
touch a Malaysian's head. When pointing
at inanimate objects, don't use just a fin­ger,
but rather use the whole hand with
the thumb over the fist Likewise, beck­oning
should be done using the entire
right hand, palm facing down and the fin­gers
pointing away from you, but moving
toward you in a sort of scratching
motion. Finally, avoid the often uncon­scious
Western habit of standing with
your hands on your hips-to
Malaysians it implies anger,
an emotion not necessarily
conducive to partnerships.
Title and protocol in
While it is possible to
arrange meetings once you
are in Malaysia, pre-arranged
meetings are by far the best
option. Do not schedule your
day too tightly. Malaysian
meetings sometimes run long
by Western standards, and
you will likely need to sched­ule
additional meetings. For
better coordination of your
efforts, consider contacting
The Coordination Center
for Investment (CCI), an
arm of the Malaysian Indus-
• Annual growth rates in Malaysia average over 8 percent. Malaysia are very important
and can be confusing. You
should address men with
titles as Datuk (also spelled
Dato), followed by their first
names. For their wives, use
• Free trade zones encourage manufacturing enterprises.
• Export-oriented industries receive special concessions.
• Infrastructure is relatively well-developed for the region.
... and Hot Prospects
1995 best-industry prospects include: electronic components,
telecommunications equipment. electric power systems,
oil/gas field machinery, industrial chemicals, computers and
peripherals, defense equipment. computer software.
(Source: U.S. Dept. of Commerce)
Datin. Common in Indone­sia
as well, these titles indi­cate
respect. All members of
Parliament are called by the
honorific Yang Berhormat.
In normal business encoun­ters,
address Malaysians by
THUNDERBIRD 49 13 I 1995
their first names, using Encik in place of
"Mr." (as in Encik Ahmad) and Cik in
place of "Miss" (or Puan in place of
"Mrs. "). Chinese names usually start
with the family name ("Lee Chee"
should be called "Mr. Lee"). As part of
the Muslim culture, Malaysian names
use bin, meaning "son of," and binti,
meaning "daughter of." lfyou are unsure
how to address someone, politely ask
them or their associate.
Negotiation
Negotiations are never easy in Asian
cultures. While Malaysians are not usu­ally
as difficult to negotiate with as the
Chinese, do not expect to receive quick
decisions or to finalize transactions on
your first trip to Malaysia. You should
anticipate at least two to three visits
before business considerations will
become serious. Large, well-established
international companies will have an
easier time establishing credibility.
WInning trust, however, will take longer
for companies without name recogni­tion.
Many Malaysian business people
develop informal relationships and initi­ate
business dealings on the golf course.
What type of negotiating style do
Malays have? In general, the Confucian
ethic and the Muslim religion affect
many aspects of Malaysian decision­making.
In most situations, companies
are hierarchical, with only a few deci­sion-
makers at the top. Malaysians tend
to be detail-oriented and use a lot of
research in their analysis, with deci­sions
formulated in a calculated man­ner.
Overall, Malaysians tend to be
risk-averse. They can be cautious, even
reluctant, to make difficult decisions,
depending on their exposure to interna­tional
business. As in India, many
Malaysians are fatalistic and believe
that if a deal is meant to happen, then it
will happen.
During actual negotiations, always
remain polite and courteous. Unlike
Western negotiations, do not raise your
voice or embarrass your Malaysian
counterpart, since maintaining face is a
critical part of relationship building. On
the other hand, Malaysians are not
likely to say "No" directly, so you may
need to ask questions indirectly, albeit
in a non-accusatory way.
Finally, as you come to closure on
your negotiations, keep in mind that
Malaysians view contracts as a flexible
tool in a business relationship. Since
trust and honor are integral to building a
strong foundation, they may be offended
by detailed contracts since it implies a
lack of trust between parties (as a prac­tical
matter, smaller Malaysian busi­nesses
are likely to suggest detailed
contracts because they may be con­cerned
about their ability to control
events).
As T'birds, we are all highly aware of
how important it is to show proper
respect for culture when doing business
in Asia, or anywhere for that matter.
This special ability to understand the
nuances is a big part of what allows us
to succeed in so many different environ­ments.
Hopefully this look at Malaysia
has added a little more to that under-standing.
•
Important Contact Information
• Malaysian Industrial
Development Authority (MIDA)
Tingkat, WIsma Damansara, 6th Floor
Jalan Semantan
P.O. Box 10618
50720 Kuala Lumpur
Tel: (3) 255-3633
[New York office: (212) 687-2491]
• Malaysian International
Chamber of Commerce and
Industry
WlSma Damansara, 10th Floor
Jalan Semantan
P.O. Box 10192
50706 Kuala Lumpur
Tel: (3) 254-1690/2677
10 THUNDERBIRD 49 131 1995
• Ministry of International Trade
and Industry
Block 10, Kompleks Pejabatpejabat
Kerajaan
JalanDuta
50622 Kuala Lumpur
Tel: (3) 254-0033
• American Chamber of
Commerce in Malaysia
Amoda 22, 15th Floor
Room 1501
Jalan Imbi
Kuala Lumpur 55100
Tel: (3) 248-2407/2540
Sanjyot P. Dunung 'S7, a native of India, is presi­dent
of New York-based D & S Enterprises,lnc.,
a global business development firm. She works
around the world with Fortune 100 companies
as well as with small and midsize international
companies. Her recent book, Doing Business in
Asia: The Complete Guide, offers essential
cultural and business information for 20 Asian
countries.
Facts about Malaysia
Geography
Malaysia consists of two parts:
Peninsular ~ extending
south below the tip of Thailand,
and East Malaysia, located on the
island of Borneo. The capital is
Kuala Lumpur.
Offidal Language
Bahasa Melayu; second language
is English.
Population
19 million (60% Malays,
30% Chinese, 9% Indians)
State Religion
Islam (53%); others include
Hinduism, Christianity, Buddhism
and Taoism.
Major Political Party
United Malays National
Organization (UMNO)
Prime Minister
Dato Seri Dr. Mahathir Mohamad
(since 1981)
Per capita GOP
US$3,570
SEND OLD PHOTOS!
Thunderbird is collecting
old photos, news clippings,
Thunderbird magazines,
and other memorabilia for
its 50th anniversary.
Please send items to:
Nelda Crowell,
Office of Communication,
Thunderbird,
15249 N. 59th Avenue,
Glendale, AZ 85306.
50 YEARS AGO
• FROM THE THUNDERBIRD ARCHIVES
Language Program Reflects a
Changing World
This scene, taken during the early years of Thunderbird, shows students in the
"high tech" Thunderbird language lab, then considered one of the most advanced
language learning facilities in the country. The first language offerings were
Spanish and Portuguese, reflecting the School's early emphasis on Latin American
business. It wasn't long before French was added (1951) followed by German in 1968.
Today the School teaches ten languages that reflect the changing complexion of global
business, including Arabic and Chinese (1976), Japanese (1971), Russian (1989),
English as a Second Language (1972) and Italian (1992). The old language lab has been
replaced by a multimedia center and portable tape recorders. Students now learn lan­guage
from taped dialogues, videos, CD-ROMs, and television programs beamed by
satellite from other countries.
Shown here: The original Thunderbird language lab. If you or someone you know is in
this photo, please let us hear (rom you and tell us your experiences.
THUNDERBIRD 49 131 1995 1 1
FACULTY IDEAS
Joint Ventures
•
ill
are the Rules?
Professor Min Chen offers practical guidelines
for establishing joint ventures in China
Since China was opened to foreign investment in 1979, it has attracted over $26 bil­lion
worth of direct foreign investment. That is a lot of money being poured into
what was once a country wrapped in a veil of secrecy. In spite of the cultural and
economic difficulties investors encounter in China, many joint ventures are proving
successful. Such success often hinges on two elements: understanding the fundamental
requirements of creating a joint venture in China and knowing how to avoid common
hindrances to success.
RULE 1: FIND A GOOD PARTNER
The first step to success in China sounds simple: find a good partner. Unfortunately,
Min Chen is assistant
professor of Inter­national
Studies at
Thunderbird. He is
author of Asian
Management
Systems: Chinese,
Japanese and Korean
Styles of Business
(1995), and co-author
of Understanding the
Process of Doing
Business in China,
Taiwan and Hong
Kong (1993).
12 THUNDERBIRD 49 /3 / 1995
that is not an easy task. Establishing a good network in China
is probably the most critical yet daunting task to fill, espe­cially
for Western companies. To begin, one needs good con­nections,
or guanxi, to be introduced to the right partner. The
Chinese concept of guanxi can be best translated as "friend­ship
with implications of a continual exchange offavors." The
trick with guanxi is that it requires a great deal of time and
patience to cultivate, but that time and patience will payoff.
As the Chinese say, without guanxi one "gets half the result
with twice the effort."
Once you are introduced to a potential associate, keep in
mind that not all Chinese partners are created equal. Thus,
getting reliable information about your potential Chinese
partner is afundamental principal of success. You must
inquire about all aspects of your potential partner's back­ground,
not just business and financial status, but also rela­tionship
and contact status. For example, does the Chinese
partner receive strong backing from its overseeing govern­mental
institution? How much authority does the partner
have in obtaining essential supplies and raw materials?
Asking these and many other questions (see box page 14) are
essential steps to establishing a successful joint venture.
While the background checklist may be long, it should not be
avoided.
Although there are many pitfalls to avoid when locating a
suitable Chinese partner, two major ones are worth noting.
One of the most common is choosing a
Chinese partner that may be in serious
financial trouble. While this warning
may seem obvious, don't take it for
granted. From the Chinese perspective,
to join forces with a foreign partner is
an attractive way to rejuvenate a dying
organization. From your perspective,
joining forces may drag you down with
them. As William Mallet of TIanjin Otis
Elevator advises, "foreign investors
shouldn't try to resurrect worthless
organizations." Gather hard proof that
your potential partner is in good finan­cial
health.
The second pitfall results from differ­ences
in priorities. In general, foreign
partners are interested in market
access, cheap labor, and lax rules on
pollution control. On the other hand,
the Chinese side is interested in capital
and technology as well as promoting
their exports. Often these priorities are
at odds, a situation the Chinese aptly
describe as "sleeping in the same bed
and having different dreams."
Beijing Jeep is a good example of a
clash over priorities. A few years ago,
AMC suggested postponement of joint
work when they found that exhaust sys­tems,
noise and speed controls failed to
meet international standards. The
Chinese, more interested in absorbing
technology than international quality
standards, retorted by accusing AMC of
reneging on the terms of the contract.
While the potential for conflict over pri­orities
is substantial, there are also
many success stories in finding suitable
Chinese partners, such as the Johnson
& Johnson venture in Shanghai or the
McDonnell Douglas cooperative ven­ture.
The lesson here is to be aware of
potential differences in priorities up
front, and address ways to make both
sides happy.
RULE 2: PREPARE FOR DIFFICULT
NEGOTIATIONS
The first step for securing official
approval for a joint venture is for the
Chinese partner to present a "proposal"
to the foreign investment commission of
the local government (or to MOFTEC if
the investment involves more than $30
million). This is followed by a detailed
feasibility study, including all proposed
impacts, estimates and assessments of
the joint venture. Ironically, this is a
stage where problems often arise. One
common complaint from foreign part-
ners is that zealous Chinese partners
tend to be excessively optimistic in
order to impress, often changing a
straightforward study of feasibility into
a study of the "imagination." Plan to stay
involved in the feasibility study in order
to rein in your Chinese partner's poten­tial
overzealousness.
Once your proposal receives approval
by the appropriate authorities, both
sides can begin to draft the contract for
the joint venture. The contract (as
opposed to the proposal) is the key doc­ument
of the venture, and must be in
both Chinese and the language of the for­eign
partner. Be forewarned that con­tract
negotiations in China can be
long-winded and complicated, with a
tendency to negotiate in a style
described by one veteran China trader as
"a blend of the Byzantine and evangeli­cal."
Chinese negotiators have a real
knack for frustrating Western business
people unused to their tactics. But with a
little foresight, Chinese tactics often can
be predicted (see box p.15). Before start­ing
any negotiations, develop a sophisti­cated
strategy that takes into account
the Chinese penchant for delay and con­trol.
In addition to tactics, there are other
cornmon problems a foreign investor
may run into at the negotiating table.
One is that foreign suppliers often find
themselves in a dilemma when the
Chinese demand technology that is
"state-of-the-art." Chinese negotiators
routinely request the "most advanced"
Are Inland Locations
Good Investments?
Coastal areas like Shanghai and
Shenzhen are home to China's most
profitable joint ventures. What
about inland locations?
ADVANTAGES
• Growing gaps between coastal
and inland zones has led Beijing to
create incentive policies for estab­lishing
inland joint ventures.
• Provincial and local officials are
eager to support joint ventures as
cures for employment woes and
for increasing standards of living.
• Fewer rival ventures mean less
competition.
DISADVANTAGES
• Weak Infrastructure, poor trans­portation
networks, and uncertain
supplies cause problems.
Completing a joint­venture
deal in China
takes time and
patience. Contract
negotiations can
be complicated,
especially given the
Chinese tendency to
negotiate in a style
described by one
veteran trader as
"a blend of the
Byzantine and
evangelical."
technology from foreign suppliers dur­ing
initial negotiations, even though they
may lack sufficient foreign exchange or
adequate infrastructure to utilize com­plex
technology and trained personnel.
A McDonnell Douglas executive once
told me that, after he explained how eas­ily
a new-model MD helicopter could be
maintained, his Chinese friend became
annoyed and privately advised him to
"describe the maintenance as a compli­cated
process in order to show the qual­ity
of the technology."
One last bit of advice on negotiating:
The Chinese often insist that the foreign
partner pay a large sum of cash to the
venture, while they offer to contribute
non-cash items such as land use, exist­ing
buildings, and construction materi­als.
Such non-cash items are, of course,
easy for the Chinese to overvalue due to
the difficulty in assessing prices accu­rately.
These complications may be
avoided by arranging for "neutral"
assessments by professional consulting
companies.
RULE 3: MOLD A COHESIVE
LEADERSHIP
Creating a strong joint leadership is
important to the success of any venture
in China Laws stipulate that the board
THUNDERBIRD 49 /3 / 1995 13
Getting reliable information about
a potential Chinese business part­ner
is fundamental to success. Here
are some important questions to
ask:
SOLID FINANCES What is your
potential partner's true financial
situation? Foreign investors
shouldn't try to resurrect founder­ing
organizations.
OWNERSHIP What ownership sta­tus
does your potential partner
have-public, collective, or private?
There are serious differences
among the three.
TECHNOLOGY Can your potential
partner assimilate transferred tech­nology?
Chinese often demand
"state-of-the-art, n but may lack
adequate foreign exchange or
infrastructure to utilize it.
GOVERNMENT BACKING Does
your potential partner receive
strong backing from overseeing
governmental institutions? Very lit­tle
occurs in China without official
approval-whether national,
provincial, or local.
SUPPLIES How much authority
does your potential partner have in
obtaining supplies and raw materi­als?
This is an especially important
consideration for inland locations.
MARKET ACCESS What kind of
access does your potential partner
have to China's domestic market?
The Middle Kingdom's 1.2 billion
people represent a huge, untapped
market.
CLOUT Does your potential part­ner
have the political and economic
clout to keep a dominant position
in their field? As competition
increases, your partner must be
able to wield both political power
and market influence.
14 THUNDERBIRD 49 /3 / 1995
of directors is the highest authority, with
members nominated by each side in pro­portion
to ownership. Leadership is
exercised by a team consisting of the
general manager and the deputy man­ager
(one person from each side, taking
equal turns as general manager), who
make joint decisions on all aspects of
operations. The cooperation between
the general manager and the deputy gen­eral
manager has proven to be
extremely important to the success of a
joint venture. It is thus critical that expa­triate
management study Chinese cul­ture,
and refrain from showing cultural
ignorance with their counterparts.
One persistent leadership problem is
that the office of the general manager is
constantly subject to the influence of
the political party branch. Theoretically,
the Communist party is not supposed to
have a branch in joint ventures, but
such organizations exist anyway in
most (though not all) ventures. If the
Chinese general manager or deputy
manager is the head of the party branch
(called wearing "two hats" in Chinese
political jargon), there will be no prob­lem.
If he is not party head, then his
authority may be seriously questioned.
Unfortunately there is little the foreign
partner can do in this situation.
I offer one note of caution regarding
the exercise of leadership. Staff mem­bers
in the upper levels of management
come normally from both the Chinese
and foreign sides, while middle and
lower levels of managers are mainly
Chinese. However, many American and
European joint venture managers have
"One
cannot
know the
true face
of Lu
Mountain
simply
because
one is
inside it."
found that it is difficult to get Chinese
managers actively involved in the deci­sion-
making process, or to take personal
responsibility for their decisions. The
solution to this problem is not clear.
Because of the large power distances in
Chinese culture, Chinese managers tend
to be reluctant to make decisions and
take responsibility, a habit not easily
shaken off by Western expectations.
RULE 4: MANAGE YOUR WORKFORCE
According to the general manager of
one manufacturing joint venture in
China, three factors are key to success
in China: "people, people, and people."
One major incentive for foreign compa­nies
to invest in China is its relatively
low labor cost. If a venture can manage
its workforce well, it can take advan­tage
of the low cost and have a better
chance for success. Thus, to better
attract foreign investment, the Chinese
government has authorized a series of
prerogatives for joint ventures in hiring,
supervising, and firing employees, as
well as determining compensation.
Most important of these prerogatives
is China's Labor Laws and Regulations
requiring a labor contract between joint
venture management and the union.
Like their Western counterparts,
Chinese trade unions are supposed to
protect the welfare of the employees. A
joint venture is required by law to pay
monthly contributions to the union
reserve fund, equivalent to two percent
of the total wages of the employees who
are members of the union. Contrary to
Western labor unions, the unions in
Supplies, market
access, and clout are
three indispensible
resources in devel­oping
joint ventures
in China. The middle
kingdom's 1.2 billion
people represent a
huge, untapped
market for foreign
China have a dis­tinct
responsibility
to urge employees
to comply with the
rules of the joint
venture and to
enhance their effi­ciency.
One inter­esting
phenomenon
is that, like unions
in the Chinese state-companies.
owned enterprises,
the joint-venture
trade unions usually place the interests
of the political party above the interest
of the workers.
Most recently the Chinese govern­ment
instructed the labor unions to
increase the protection given to
employees of joint ventures, and to
strengthen the protectionist functions
of the trade union. This tightening of the
union function is in response to reports
of worker "abuse" by foreign compa­nies,
and could pose significant chal­lenges
for current and future joint
ventures.
While cooperating with Chinese labor
laws and methods is vital, it is equally
important that you create a corporate
culture that contains some aspects of
Western management. Providing
detailed job descriptions and integrat­ing
training with daily operations may
help reduce the influence of guanxi and
the Chinese reluctance to shoulder
responsibility. In addition, identifying a
local confidant among your managers
who is experienced in dealing with
bureaucracy, as well as resisting pres-sures
by Chinese authorities to over­hire,
will aid in establishing a more effi­cient
corporate culture. Overall,
prevention may be your best medicine:
encourage close and mutually respect­ful
contact between expatriates and
Chinese teams from the very start.
RULE 5: BALANCE YOUR FOREIGN
EXCHANGE
Last, but perhaps most important, the
balance of foreign exchange is crucial
to the success of a joint venture. Not
only does Joint Venture Law state that
foreign exchange inflows and outflows
should at least balance out over the life
of the project, Chinese authorities (the
people who approve or disapprove of
your venture) are very sensitive to the
projected foreign exchange balance of a
joint venture. As a rule, pro forma finan­cial
statements that project early for­eign
exchange surpluses tend to
facilitate negotiations and operations.
Perhaps the best strategy to maintain a
balance of foreign exchange is to
ensure an international market for at
least 50 percent of the products from
the very beginning.
China is a very large and potentially
lucrative market, one often seen by for­eign
investors as a great pearl to be
plucked. But success in China will not
necessarily come on the foreigner's
terms. There is much to know and learn
about doing business in China before
going in. As ancient Chinese philosophy
states, "One cannot know the true face
of Lu Mountain simply because one is
inside it." _
Adapted from the
book Asian Manage­ment
Systems:
Chinese, Japanese and
Korean Styles of
Business, by Min Chen
© 1995 Min Chen.
THUNDERBIRD 49 131 1995 15
CAMPUS NEWS
Noted International Educator
to Lead Academic Departments
Former Dean in Japan, Rector in Costa Rica
Dr. Melvyn R. Copen, a
highly respected scholar and
administrative professional with
over 36 years of international
experience, has been appointed
senior vice president for acade­mic
affairs at Thunderbird. He
will oversee the School's three
academic departments, as well
as the information technology
and student affairs areas.
"I hope my own experience
living and working in many dif­ferent
cultures will allow me to
contribute to Thunderbird's aca­demic
growth, and strengthen
international business prac­tices,"
says Dr. Copen.
Dr. Copen's international
experience includes working,
living, or consulting in Japan,
the Middle East, China, Africa,
Europe, India, Afghanistan,
Malta, Greece, Egypt, Mexico,
Central America, and Brazil. He
is former dean of the Inter­national
University of Japan
(IUJ), as well as former rector
of the Instituto Centroameri­cano
de Administracion de
Empresas (The Central Ameri­can
Institute of Business
Administration) in Costa Rica
Dr. Copen says that two of his
immediate objectives as vice
16 THUNDERBIRD 49 / 3 / 1995
president are to implement
strategic plans for further
strengthening the School's
unique three-part curriculum,
and to build better student and
alumni ties to the institution.
"I strongly believe in the tri­partite
education of language,
business, and international rela­tions
that has made Thunder­bird
a leader for many years.
Trying to find even better ways
to integrate them further is a
major objective," notes Copen.
"A second objective is to find
ways to make students and
alumni feel an integral part of
the institution. Interestingly,
T'birds seem to have stronger
ties to each other than to the
institution. I want to better rec­ognize
the growing needs the
Thunderbird network has for
continuing business develop­ment,
and find ways in which
the School can effec­tively
meet those
learning needs."
Dr. Copen holds a
D.B.A in international
business from Harvard
and an S.M. in indus­trial
management from
MIT. He is also a for­mer
director of strate­gic
planning and
economic analysis for
the Westinghouse Electric
Corporation, and has worked
with many international relief
agencies, including USAID, the
Peace Corps, and UNESCO.
"I honestly know of no other
institution better prepared to
make such a significant contri­bution
toward building a global
economy," says Dr. Copen.
In announcing Dr. Copen's
appointment, President Herber­ger
stressed that "this move
should give us a concentration
of effort in our vital academic
mission."
It seems the Candia family has created their own
Thunderbird network. This sununer when Carlos Candia
'95 (center) graduated from Thunderbird, he became the
fifth member of his family-three brothers, two sisters-to
earn the M.I.M. degree, a record at Thunderbird! The Candia
tradition began with brother Jose '7 4 (represented by his
son at far left), currently a consultant with Deloitte, Touche,
and Tomatsu in Bolivia; next came sister Jennifer '84
(fourth from left), a broker at Lehman Brothers Inc., in New
York City; then brother Eduardo '91 (second from left),
operations head at FMC in Mexico; and sister Elizabeth '93
(far right), international operations manager at Natura
Cosmeticos do Brasil. Wow! Family get-togethers must seem
like a First Tuesday ....
"In many quarters in Asia there is a
lingering suspicion, that underneath
whatever arguments North America
and Europe use in trade negotiation
lies the unspoken reluctance to
acknowledge the end of Western
supremacy and to share economic
power."
Fugelsang
-DR. SUBROTO, former secretary general
of OPEC, speaking on the emergence of
Asia as an economic superpower to the
spring graduating dass. Dr. Subroto is a vis­"
You will make mistakes, but
don't let them get you down.
One of my mentors was
Walter Wriston, who was
chairman of Citicorp much of
the time I was there. Walt
was fond of saying that 'good
judgment comes from experi­ence,
and experience comes
from bad judgment.' "
-GEORGE FUGELSANG '63, chief
executive, North America of
Dresdner Bank AG, sharing some
of his 32 years of experience in
international banking with gradu­ates
at summer commencement
Fugelsang directs all Dresdner
Bank Group's activities in Canada,
Mexico, and the U.S.
iting professor of economics at
Thunderbird and noted expert in
international trade.
Dr. Subroto
CAMPUS NEWS
Letters from Readers
Chechnya Conflict
The May issue of Thunderbird mentioned my February 22
campus discussion of the war in Chechnya. It incorrectly
states I said the Chechnya conflict is undermining foreign
investor confidence in Russian political stability. In fact, my
findings were exactly the opposite.
From the perspective of a businessperson or prospective
investor, the Chechnya situation is a limited conflict with few
adverse implications, especially over the long term.
I might have let the error pass, were it not for the two long­distance
calls from T'birds I received! Ironically, your misre­porting
has reaffirmed the need for such discussions that
question "conventional wisdom." Any astute businessperson
must be aware that she or he may be making risk assessments
based largely on news reports aimed at the person on the
street or at political decision-makers, not at business decision-makers.
As I have taught students in my IS course, Russia in the New
World Order, "Analyze, don't just ingest"
Lirula Wetzel
Former Visiting Professor,
CIA Officer-in-Residence
Solution for Excess Inventory?
Excess inventory consumes valuable storage space and
often must be disposed of at a loss. T'bird Stephen Brock '86,
a director at World Vision Relief and Development, oversees a
program that offers an attractive solution for U.S. companies.
Non-profit Brother to Brother International (BBI), a sub­sidiary
of World Vision, accepts donations of excess inventory
and redistributes them to selected charities around the world.
In exchange, businesses receive a valuable tax break and save
on warehousing and disposal costs.
mM, for example, donated nine tractor-trailer loads of obso­lete
packaging materials to BBl. Instead of ending up in costly
landfills, the surplus boxes were used to ship clothing, food,
seeds, and vitamins around the world.
"BBI lets companies avoid the usual costs involved with
excess inventory without compromising their need to make a
profit," says Brock, director of World Vision's Innovative Pro­grams
Division. In some cases, corpo­rations
get tax credit for as much as
twice the cost of the donated goods.
During the recent Ebola virus break­out
in Zaire, Baxter Healthcare donated
excess medical supplies to BBI, includ­ing
gowns, masks and gloves to protect
doctors from transmitting the deadly
virus.
Earlier this year Asgrow Seed
Company, a division of Mexico-based
Stephen Brock '86 Empresas La Moderna, donated 1,500
tons of seeds for distribution to Haiti, Russia, Mrica, and
Armenia-possibly the largest seed donation in U.S. history.
(For information, contact Brock at 206-815-2059 or BBI at
800-642-1616.)
Tanya Hughes
Student Wins
Olympic Medal
While prospecting for pre­cious
medals this summer,
Thunderbird student Tanya
Hughes came up with bronze in
the women's high jump at the
Olympic Festival in Colorado
Springs, Colorado. Last year the
three-time NCAA champion at
the University of Arizona and
1992 high-jump finalist at
Barcelona was named NCAA
Woman of the Year. In recogni­tion
of her academic, athletic,
and community service achieve­ments,
Hughes was also
awarded an NCAA scholarship
to Thunderbird. For 1996 her
sights are fixed on pulling down
a medal at the Olympics in
Atlanta-and an M.I.M. from
Thunderbird.
Balloon Classic
Moves
The Thunderbird Balloon
Classic, one of the largest
and oldest ballooning
events in the West, is mov­ing
a little to the east to a
new home in Scottsdale's
320-acre WestWorld event
facility.
The decision to move
the 21-year-old festival,
which attracts more than
125 hot-air balloons and
over 30,000 people annu­ally,
came after Thunder­bird's
request to the City
of Glendale for funding to
defray increased costs was
denied.
The event has been held at
the Glendale airport for the past
five years, and (as many alumni
remember) on Thunderbird's
campus for 15 years prior.
Since its inception, more than
500 Thunderbird students have
benefited from the scholarship
endowment raised by the event.
This year's race will be held
November 4-5, 1995.
Executive
Education Grows
Continued success in
Executive Education has led to
the recent addition of three
directors. Kathleen L. Friedel,
former director of education for
the National Association of
Mutual Insurance Companies,
was named director of opera­tions.
Roger J. Larson, former
vice president of sales adminis­tration
for Fujitsu Business
Communication Systems, was
named director of telecommuni­cations
programs. Elliott
Nelson '91, former resort mar­keting
strategist for Hilton
Hotels, was named program
director.
Other School additions:
James Grant, Jr., former
senior administrative analyst and
magazine editor at the University
of California, San Francisco and
U.C. Los Angeles, was appointed
assistant vice president for pub­lic
affairs. Grant replaces Carol
Crockett, who headed public
affairs for five years.
THUNDERBIRD 49 13 I 1995 17
NewFaculty
Includes Experts on
Middle East, Global
Finance
INTERNATIONAL STUDIES
David B. Dlouhy, deputy
chief of mission at the U.S.
Embassy in La Paz, Bolivia, has
been appointed diplomat-in-resi­dence
in International Studies.
Dlouhy, a 20-year veteran with
the U.S. Foreign Service, is for­mer
deputy director for Central
American and Panamanian
Affairs, and deputy chief of mis­sion
for EI Salvador. He also
served in Guinea, Chile, South
Africa, and Luxembourg. Dlouhy
holds an MA from Johns Hop­kins
University.
Dr. Alfonso Sapia-Bosch
has been appointed adjunct
assistant professor of interna­tional
studies. Dr. Sapia-Bosch
served first as analyst and divi­sion
chief in the CIA's Intelli­gence
Directorate, and then as
field operations manager and
station chief in the Operations
Directorate. He is also former
senior staff member at the
National Security Council,
where he formulated policy
toward Latin America. Dr.
Sapia-Bosch holds a Ph.D. in
Latin American history from
Georgetown University.
Dr. Yahia H. Zoubir, an
expert on the Middle East and
Africa, has been appointed asso­ciate
professor of international
studies. Dr. Zoubir holds a Ph.D.
in international relations from
the American University in
Washington, D.C., and a Licence
in political science from the
University of Algiers. Dr. Zoubir
is a former faculty member at
American University in Wash­ington,
D.C., and the American
Graduate School of Business in
Switzerland.
CAMPUS NEWS
WORLD BUSINESS
Dr. Lena Chua of the Uni­versity
of Hawaii at Manoa will
serve as visiting assistant pro­fessor
of finance in the World
Business Department. Dr. Chua,
an associate of the Center for
Pacific Basin Monetary Eco­nomic
Studies at the Federal
Reserve Bank of San Francisco,
holds a Ph.D. in finance from
Arizona State University. She
also holds an M.BA in manage­ment
information systems from
Northern Arizona University,
and a B.BA from the National
University of Singapore.
Dr. Robert A. Howell, for­mer
CFO of Schick, Inc. and
vice president of General
Housewares Corp., has been
appointed clinical professor of
management accounting in the
World Business Department. Dr.
Howell, an authority on the new
manufacturing environment,
was most recently professor of
management and accounting at
New York University and assis­tant
professor at Harvard Busi­ness
School. Dr. Howell is
co-author of Management
Accounting in the New Manu­facturing
Environment. He
holds a D.B.A. from Harvard
and an M.BA from Wharton.
Dr. M.V. Krishna Kumar
has been appointed director of
corporate consulting and pro­fessor
of world business, and
will be responsible for Thun­derbird's
marketing workshops.
Dr. Kumar is a consultant to
Caltex Petroleum and former
executive director for market­ing
at Duncan Brothers in India.
He holds a Ph.D. in manage­ment
from the University of
Bombay, and MA's in physics
and mathematics from the
University of Madras and
Cambridge University. He has
taught at SMU, University of
Texas at Dallas, New York
University, Bombay University,
the Indian Institutes of Manage-ment
at Ahmedabad and Cal­cutta,
and the Swedish Institute
of Management.
Dr. Claude P. Lanfranconi,
former director of the executive
program at the Western Busi­ness
School of the University of
Western Ontario, has been
appointed clinical professor of
accounting. Dr. Lanfranconi has
extensive experience develop­ing
and directing executive edu­cation
programs, and is a former
accountant with Coopers and
Lybrand. He holds a Ph.D. in
accounting from the University
of Western Ontario and an
M.B.A. from McMaster Univer­sity,
Canada.
Dr. Graeme Rankine, a for­mer
assistant professor at Rice
University and the University of
Arizona, has been appointed
associate professor of account­ing.
Dr. Rankine was awarded
or nominated for numerous
honors for teaching excellence
at Rice, including the Amoco
Teaching Award and the Phi
Beta Kappa Teaching Prize. He
holds a Ph.D. from the Univer­sity
of Washington.
APPOINTMENTS
M. Edgar Barrett, vice pres­ident
for executive education
and distinguished professor of
policy and control, has been
named senior vice president.
Dr. C. Roe Goddard, associate
professor of international stud­ies,
has been appointed chair­man
of the International Studies
Department. Dr. Llewellyn
Howell, former chairman of the
IS Department, was appointed
associate vice president of over­seas
programs.
RETIREMENTS
Joaquim Duarte, Jr., from
the Department of International
Studies (Duarte will continue as
director of the Dom Pedro III
International Studies Research
Center); Dr. William Voris,
••••••••••••••••••••••••••••
president emeritus, from the
Department of International
Studies; Antoinette Lerond,
after 22 years, and Elza White,
after 33 years, teaching French
in the Department of Modern
Languages; and Dr. Hugh
Pring, from the Department of
World Business.
Chua Howell
Kumar lanfranconi
Rankine
"PC users think that things should never have flaws."
CRAIG BARRETT, CEO of Intel, speaking at Thunderbird about the valuahle lessons he learned from last year's Pentium chip fiasco.
Intel first offered replacements on a case-by-case basis, but after 40,000 calls a day the company offered all customers new chips.
18 THUNDERBIRD 49 13 I 1995
CAMPUS NEWS
100 Alums Joining T'bird
Forum Each Month
Answers to frequently asked questions
about CompuServe
The Thunderbird Forum on
CompuServe has been a tremen­dous
success. Currently, 1,700
T'birds across the U.S. and in 39
other countries communicate
online. With nearly 100 individu­als
joining the Forum every
month, the numbers should
reach the 2,000 mark before 1996.
Frequently Asked
Questions
• Is there a way to get travel
access numbers easily?
If you use CompuServe when·
traveling, get a list of access
numbers (GO PHONES) before
leaving town. When you reach
your destination, simply change
the "Phone" number in the
"Session Settings" window.
• How do Ifind other T'birds
on the Forum?
Find Forum members by
searching with their names,
User ID numbers, or special
interests. Select "Search Mem­bership"
from the "Special"
menu and type in the appropri­ate
field. For a list of Forum
members, click on "Search,"
leaving the User Name, User ill,
and Interests fields blank. To
view a member's profile, simply
click on hislher name. A list of
members and their user IDs is
also available in the "Library"
under " Alumni Activities. "
User Hint: Help others find
you. Fill-in the "Change Member
Interest" box (see "Special"
menu) with your class year,
interests, location, and business
information.
• What are some interna­tional
business-related
services on CompuServe?
The following services (from
GO INDEX) are of particular
interest to international busi­ness
people: Business Database
Plus (BUSDB), Dataquest Online
(DATAQUEST), Disclosure SEC
(DISCLOSURE), Entrepreneur's
Forum (SMALLBIZ), European
Company Research Center
(EUROLIB), European Forum
(EURFORUM), Financial Fore­casts
(EARNINGS), Hoover
Company Database (HOOVER),
International Trade Forum
(TRADE).
• How will the new Compu­Serve
pricing affect me?
In a move to simplify its pric­ing
system, CompuServe will no
longer charge Thunderbird
alumni the $3 monthly fee for
the Thunderbird Forum. In­stead,
the membership fee of
$9.95 per month now includes
five free lwurs for almost all of
CompuServe services, including
the Thunderbird Forum. In addi­tion,
Internet, E-mail, and
thousands of databases
and forums are now
included in the member­ship
fee (no more hourly
charges for what were for­merly
called "Extended
Services"). Additional
hours beyond the five free
hours per month are
charged at $2.95 each (this
includes the Thunderbird
Forum). Heavy users can
join the "Super Value Club" (20
hours of access for $24.95 per
month).
User Hint: To save charges
read mail (select "Mail," "Get
New Mail," "Get All") and com­pose
your messages off-line.
After downloading E-mail ("In
Basket") select "Disconnect"
but don't "Exit." Reply and
place your messages in the "Out
Basket" to mail later.
---:tJy Avid Navidi
---------------------------
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explore job opportunities, even
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• Traveling to another city or
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updated on alumni events
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• Seeking new business ven­tures
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can post your resume, down­load
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the "Alumni Opportunities" and
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• Want to locate a lost class­mate?
The Forum provides
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Joining the Thunderbird
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THUNDERBIRD 49 /3 / 1995 19
INTERNATIONAL
Argentina
Buenos Aires
(See photo) For information
about gatherings in Buenos
Aires, contact Christian
Schweizer at 51-1-415-096.
Canada
Toronto
The Toronto Area Alumni
Committee hosted a brunch
where 25 alumni and prospec­tive
students heard Brian Bates,
vice president for admissions
and student affairs, speak on the
progress of the School. For
information about meetings,
contact Susan MacGregor at
416-656-6261.
China
Beijing
T'bird Tuesdays in Beijing
have been changed from Frank's
Place to Berena's Bistro
(next door to Frank's Place!),
located at East Sports Stadium
Road No.6. Traveling T'birds
are welcome. Call Curtis
Kovack at 861-505-1665 for
information.
Germany
Hamburg
(See photo) Call Christian
Meyer at 49-40-851-3437 for
information about gatherings.
Mainz
Nearly 400 T'birds gath­ered
in Mainz for the 1995
Thunderbird European
Reunion. The four-day event
(June 15-18) featured busi­ness
discussions on "Global
Trends Affecting European
Business." Social events were
highlighted by a Rhine River
boat cruise and a pub crawl in
Mainz (seefuU story and photos
on p. 39). Special thanks to the
following Thunderbird organiz­ers
in Europe: John Cook, Scott
Denley, Mark Fenstermann, Rob
Gehl, Jeff Hochman, Michelle de
Joy, Ralph Krueger, Brendan
McInerny, Corinne Pfund, Anja
Plowright, Paul Prengel, George
Redlbacher, and Katrin Waples.
20 THUNDERBIRD 49 13 I 1995
NETWORK
Network News
.... CHICAGO
Ann F. Rosen '82 (I) is
pictured with the chairman
of Motorola's Executive
Committee, Robert M. Galvin.
Galvin, son of Motorola's
founder, spoke to the
Chicago chapter about
Motorola's business success
overseas.
Hong Kong
The Hong Kong chapter
played host to this year's
Thunderbird Asian Reunion,
which was a huge success
(see juU story and photos on p.
39)! The three-day event (April
28-30) was highlighted by a spe­cial
business forum exploring
the media, investment issues,
and careers in Asia, and a ses­sion
on the risks and opportuni­ties
of the China market. A
special note of appreciation
goes out to the following alumni
(as well all others who helped
with this special milestone in
Thunderbird's history): Craig
Adams, Gert Bergmann, Webb
Elkins, Clauss Erdman, Martha
Van Gelder-Gypton, Amparito
Lee, and Adam Pearce.
Japan
Tokyo
First Fridays in Japan are
very active and well attended.
For information about events in
the Tokyo area contact Lome
Fetzek ( chapter president)
at 03-3668-0731, Art Morgan
" IKS-;'Sbn.II-!-I·/!-Ib, or David Ross at
)3-3769-6931.
Jsaka
The Osaka chapter welcomes
visiting T'birds. For information
about events, contact Scott
Williams at 06-366-0558 at work,
or Andy Levine at 06-341-6124.
The Osaka chapter meets at
the Narrow Water Bar (06-377-
0760), close to Umeda Hankyu
Station in the Chiroru
Chayamachi building, on the
8th floor.
Sailing in Stockholm
are (I to r): Robert
Kuller '84, Henrik
Ekstrand '8S, Astrid
Boer '93, Lee Beksill '90,
Lawrence Masle '94,
Erik Bergdorf '82,
Jacques Tapiero '82,
Oystein Lind '87, and
Raana Lind '87.
Malaysia
Kuala Lumpur
T'birds in Kuala Lumpur met
with Lew Howell, Thunderbird
associate vice-president of over­seas
programs, in May.
Sweden
Stocklwlm
(See photo) Stockholm
alumni met for a sailing tour of
the Stockholm Archipelago. For
information about gatherings,
contact Astrid Boer at
(468) 720-3927.
UNITED STATES
Arizona
Plwenix
(See photo) GOING TO
HOMECOMING? The Phoenix
chapter will be hosting a
"Welcome Home" BBQ party at
the Pub as part of homecoming
weekend, on Friday November 3
at 7:30 p.m. The food is south­western
style, and live music is
planned. Tickets are $8 in
advance, $10 at the door. For
details, call the Alumni
Relations Office at
NETWORK
I
are drawing between 65 to 70
people each month. A group trip
(with California alumni) to
Catalina Island off California is
planned for the end of Septem­ber.
First Tuesdays start at
5:30 p.m. at The Plaza Club.
Call Karen Culver (602) 504-
1722 for details.
Tucson
(See photo) Since last fall
Tucson T'birds have taken turns
hosting First Tuesday dinners in
their homes. This spring the
group completed a clothing
drive for an orphanage in
Nogales, Mexico, and sold
posters and programs at the
Tucson International Mariachi
Conference in support of La
Frontera, the largest mental
health and substance abuse
recovery organization in south­ern
Arizona Call J. William Peck
at (520) 792-2260 for event infor­mation.
California
San Diego
San Diego T'birds are plan­ning
a Catalina Trip (with the
Phoenix chapter and other
California chapters) in late
San Francisco
Bay Area alumni and visitors
have three T'bird gatherings to
choose from each month: San
Francisco First Tuesdays at
Cafe Latte in the Embarcadero
Center 4 (for information, call
Diane Spence at 415-506-2490);
East Bay Second Tuesdays at El
Torito's at 67 Jack London
Square in Oakland (for
information, call Mollie Harris at
510444-5858); or Silicon Valley
Third Tuesdays at Fogg's
International Tavern in
Mountain View (for information,
call Chris Casselman at 408-338-
4229). The Bay area's new T'bird
hotline number, (415) 323-BIRD
[323-2473], offers fax back and
messaging services for local
events.
Colorado
Denver
Audrey Penk, chapter presi­dent,
is planning an alumni data­base
for the 500-plus T'birds in
Colorado. The database will be
used for business contacts and
social occasions. Contact
Audrey at (303) 366-3757 for
information. First Tuesday
meetings are held at Wynkoop
Brewing Company at 6 p.m.
District of Columbia
The D.C. chapter's Summer
Picnic is scheduled for
September. For more informa­tion
call Marie Kissel at (202)
326-5532. First Tuesdays rotate
between area establishments.
Illinois
Chicago
The chairman of Motorola's
Executive Committee (and
founder's son), Robert M.
Galvin, spoke to the Chicago
chapter about Motorola's busi­ness
success overseas. In order
to accommodate T'birds who
live in the Chicago suburbs,
every third Thursday has been
designated as "T'burb Thurs­day."
Meetings are at Rooster's
Barn & Grill in Bloomingdale,
from 6-9 p.m. CTAA board meet­ings
are held on the fourth
Wednesday of every month to
plan events. For information,
call (312) 409-3987.
(602) 978-7135.
The Phoenix chapter held a
"Past Presidents' Night," where
eight out of ten past chapter
presidents attended (one even
flew in from Chicago). Meetings
TSeupetsedmaybse ra.r Fe iarts t6 p.m. r~~~~• ••••" • •••• 1Il
at Shooters Lounge in
the Radisson La Jolla
~ VENEZUELA
T'birds made up over 10
percent of the participants
in a recent Merrill Lynch
conference in Venezuela.
Pictured (I to r) are: Ricardo
Morean '90 (Caracas),
Hotel.
• GERMANY
Representing the Hamburg
chapter are (I to r): Hans Strobel
'92, Una Strobel, Sharon
Strahan Bowman '91, Rose
Lehmann '91, John Snyder '90,
Jens Ole Boelsen '93, and
Christian Meyer '91.
~ ARGENTINA
Alumni in Buenos Aires
held a special lunch for
Thunderbird's assistant
director of internships
Tim Weaver '89 (front,
third from left).
Ted Finkel '72 (New York),
John Cooper '61 (Miami),
Michele Landa-Brooker '86
(New York), Robert
McBride '85 (Caracas), and
Paolo Facti '85 (Caracas).
Darcie Burk '80 (Miami) also
THUNDERBIRD 49 131 1995 21
Indiana
Indianapolis
Indy is now on the T'bird
Tuesday map with fall gather­ings
at The Comer Wine Bar at 6
p.m. For information call Alison
Stem at (317) 595-1094.
Michigan
Detroit
Michigan T'birds are continu­ing
with Third Thursdays at
Roosevelts, and are offering
international dinners (next is
October 5) and bonus outings
such as Detroit Tiger Baseball in
September. Summer activities
included a lakeside barbecue at
Dr. Tansel Avci's in Bloomfield
in July. For information, call
Tansel at (313) 360-0382.
Minnesota
Minneapolis
Big coming attraction:
Octoberfest, at the Gasthaus
Bavarian Hunter in Stillwater.
Other Tbird Tuesdays are
scheduled for Sweeney's Saloon
& Cafe in November, and at
Brit's Pub in December.
Nevada
Las Vegas
Thunderbird professor Dr.
Francisco Carrada-Bravo was at
the February First Tuesday
T TUCSON
Tucson T'birds collected clothing
for an orphanage in Nogales,
Mexico. Pictured are (I to r): Corine
Milton 'Sl, Bill Durfey, Jeff Prileson
'79, Gary Curran '89, Shiraz Peera
'71, Bob Bean '48, William Peck '92,
Hal Carpenter '47, Alice Bean and
Laura Peterson '92.
22 THUNDERBIRD 49 13 I 1995
NETWORK
where he discussed the Mexican
Peso situation and NAFTA The
April First Tuesday was held at
Port Tack Richard Applebaum,
a retired international tax attor­ney
with experience in exporting
films, spoke. For information
contact Don Szymanski at (702)
566-1896.
New England
New England T'birds, in coop­eration
with The Boston
Company, offered a Career
Development Workshop to
sharpen job-search skills. Bryan
Manning, past president of the
chapter, led the April workshop.
First Tuesdays are held at
Boston's oldest restaurant,
Union Oyster Bar. Coming up:
October 22-the T'bird banner
will be flying on the Cambridge
side of the river at the Head of
the Charles Day Festival;
December 5--the annual
holiday party. For information,
call Gregory Grande at (401)
751-3314.
New York
New York City
Over 250 T'birds attended the
August boat party (a sunset
cruise around Manhattan). The
chapter reports, "when the boat
docked, no one wanted to
leave!" The event also raises
T PHOENIX
Past presidents of the Phoenix
chapter (I-r): Charles Mannel '82,
Ken Nelson '54, Erik Myhrberg '89,
Jerry Rupp '66, Deborah Haas '79,
Paul Fitch '86, Teresa Smith-DeHesus
'90, Hein Schoustra '83, and Karen
Culver '87 (current president).
funds for Tbird scholarships.
Other activities included a golf
scramble, and presentation by
member Fred Gleeck on
"Turning Contacts into Clients."
The NYC hotline is (212) 713-
5744.
Pennsylvania
Philadelphia
The Philadelphia Area T'bird
chapter is starting up again,
with First Tuesdays circulating
around the Philadelphia metro
area Chapter resuscitator
Kristine Golubovis would like
suggestions for events and activ­ities.
Call her at (215) 992-4776.
Pittsburgh
The first meeting of the
newest alumni chapter was held
on June 6, at the Allegheny
Brewery and Pub. For more
information call chapter presi­dent
Marcia Kruth at (412) 928-
1483.
Ohio
Cincinnati
Cincinnati area T'birds held
their annual Reds game outing
at Riverfront Stadium, where
alumni and guests were treated
to a private skybox. First
Tuesday meetings are held at
Barleycorns on the River in
Newport, Kentucky. Contact
Matt Hurt at (513) 528-1781.
T WASHINGTON STATE
T'birds rafted the challenging Skykomish
river in June. Pictured are Page Perey '92,
Laurie Smith '92, Cyndy Hazard '92, Paul
Brookshire '93, Kate Pellicer '92, Mark
Fedou '91 and Lynn Campbell '92.
Oregon
Portland
The chapter had an ethnic
food outing at the Greek Cuisina
in March, coinciding with Greek
Independence Day. The second
annual Beer and Bratwurst
Party was also a success. New
location alert-First Tuesdays
are now being held at the
Bridgeport Brew Pub. For infor­mation
contact Robert Jones at
(503) 624-8036.
Texas
Austin
The Austin and other Texas
chapters held the annual T'bird
Tubing Trip on the Guadalupe
River in New Braunfels in July.
Austin T'birds will continue
First Tuesday Pub Nights
through December at The
Cooper Tank. For activity
details, contact John Poth, Jr. at
(512) 327-3868.
DallaslFort Worth
The DFW T'birds rotate First
Tuesdays among area restau­rants.
Call the DFW hotline at
(214) 913-0515 for dates and
locations. Functions begin at 5
p.m. with the first 30 minutes set
aside for networking.
Houston
Houston T'birds have devel­oped
a speakers forum for First
Tuesday gatherings to attract
more of the over 400 area
alumni. Forum meetings occur
at The Omni Hotel with gather­ings
at the hotel's Black Swan
Pub before and after. For infor­mation
contact Dan Morris at
(713) 521-4421.
Washington State
Seattle
(See photo) In June, 16
T'birds rafted the challenging
Skykomish River. Over 30
alumni attended the Summer
PiCnic, despite the heaviest rain
of the season. First Tuesdays
are held at Duke's Yacht Club
on Lake Union. Also scheduled:
a holiday party on December 10.
For information call Lynn
Campbell at (206) 546-7344.
Mail-in proxy
card located
opposite
page 38.
NETWORK
TAA Notice of Annual Meeting, November 6, 1995
NOTICE IS HEREBY GIVEN
that the Annual Meeting of mem­bers
of the Thunderbird Alurrmi
Association (TAA) will be held
at the Wyndham Garden Hotel,
Phoenix, AZ, on Monday,
November 6, 1995, at 8:30 a.m.,
Mountain Standard Time, to
approve the minutes from the
last Annual Meeting October 1,
1994; and to elect five directors
for three-year terms.
Election of Directors
In March 1986, the board of
directors approved the motion
that the board would consist of
18 voting members, consisting
of 17 elected directors plus the
student body (ASLC) president;
two additional ex-officio, non­voting
positions on the board
are filled by the School's presi­dent
and the chamnan of the
board of trustees.
General guidelines concerning
the election are:
1. Any member present, either in
person or by proxy, may place
names in nomination.
2. If, after the close of nomina­tions,
the number of nominees is
not more than the number of
directors to be elected, the
directors may, without further
action, declare that those nomi­nated
and qualified have been
elected.
3. If, however, the number of
nominees is greater than the
number of directors to be
elected:
a. nominees will be provided an
opportunity to make a brief
statement, a maximum of one
minute in length;
b. votes will be cast via secret
ballot; and
c. candidates receiving the high­est
number of votes, either in
person or by proxy, shall be
elected as directors.
Information about each nominee
follows.
Miscellaneous
Additional Annual Meeting
agenda items must be received
in writing by the president of the
Thunderbird Alurrmi
Association, in care of the
Alurrmi Relations Office, by
October 13, 1995.
By the Order oj the Board oj
Directors
Michelle S. Olson
Acting Secretary
Glendale, AZ 85306
August 1995
CANDIDATES
Vickie Austin '93
Vice President. Medical Group
Edelman Public Relations
Worldwide
Chicago
Vickie pn:r
vides public
relations and
marketing!
communica­tions
counsel
and services to
medical and
healthcare
clients, including Eli Lilly,
Searle and Blue Cross Blue
Shield Association. Prior to
this, she worked for McMurry
Publishing, Inc., and was direc­tor
of marketing for the market
operations office of Humana
Inc. and for Humana Hospital­Phoenix.
Beatrice Cueto '87
Vice President
Bankers Trust Company
Miami
Beatrice has
been with the
Private Bank
at Bankers
Trust Com­pany
for over
two years. She
was hired as a
relationship managerMce pres­ident
for the Chile Team and
has recently been promoted to
her current post as team
leaderlbusiness driver for the
Southern Cone Region
(Argentina, Chile, paraguay
and Uruguay). Her main
responsibilities include manag­ing
and enhancing high net
worth client relationships, as
well as supervising a team of
officers covering this region.
Prior to Bankers Trust Com­pany,
Beatrice spent over five
years at Chase Manhattan Bank
and Banco Santander (both in
New York) serving as a private
banker and team leader.
Beatrice recruits regularly at
Thunderbird for Bankers Trust.
Stephen Doyle '82
President
Integrity
International
Corp.
New York
Steve heads
Integrity inter­national,
a
subSidiary of
Integrity Coal Sales, Inc. a
small U.S. company formed in
1990 currently trading about
1.2 million tons per year world­wide.
He exports steam and
coking coal from the U.S.,
Colombia, and Venezuela to
various destinations world­wide.
Steve began Integrity
International after 11 years
with Ruhrkohle Trading
Corporation as vice president/
general manager, exporting
steam and coking coal world­wide.
Steve has served as New
York alumni chapter president
since 1993.
Marcos Garay '79
Managing Director,
International ...------
Bancomer, S.A.
Mexico City
Marcos is man­aging
director of
International
Specialized
Banking of
Bancomer, S.A.
and the Casa de Bolsa Ban­comer,
the group's brokerage
finn. Prior to this he was vice
president, International of
Acciones Bursatiles. From
1983 to 1990 he was country
manager of Halcyon Capital
Corp. He began his career as
vice president for Doubleday &
Co. Marcos was instrumental
in the original formation of the
Mexico alumni chapter in 1979.
John Schuldt '85
Marketing Manager
Ford Motor Co. r-----~
Detroit
John joined Ford
Motor Company
in 1985 and has
served in
Houston, New
York, Washing­ton,
Atlanta and
Detroit. His has served as Zone
Sales Manager, Market Repre­sentation
Manager, Administra­tion
Manager, Distribution
Manager, Lincoln Marketing
Manager, Division Training
Coordinator and Retail
Development Coordinator.
John represents Thunderbird in
many ways, including college
fairs, serving as chapter presi­dent,
leading an area alumni
phonathon, and addressing stu­dents
on campus. He is also
Ford Motor Company liaison
for School fundraising efforts.
THUNDERBIRD 49 131 1995 23
Class Updates
Robert Koprowski '67
Steve Van Luven 73
Elizabeth Toomey 75
'47·'59
Oscar W. Langston '47 has retired from
World Emergency Relief. Fred Koppl '52
recently travelled to China and met with
many T'birds. He lives in Munich, Germany.
Richard K. Enochson '53 is retired and liv­ing
with his wife, Mary, near Boise, ID.
Charles S. White '53 is president of Micro
AeroDynamics, a modifier of light aircraft. He
and his wife, Jan, live in
Anacortes, W A Roger C.
Wilson '55 is retired and
living in Dunwoody, GA
David A. Lurie '57 is
retired and living in
Elmhurst, NY. Charles W.
Maggio '57 directs interna­tional
finance at Aetna We and Casualty Co.
He resides with his wife, Helen, in Weston,
CT. James A. Marsee '58 is retired and liv­ing
with his wife, Victoria, in Williamsburg,
KY. Eric Beerman '59 is a historian of
Hispanic heritage in the Americas. He holds a
Ph.D. from the University of Madrid and lives
and works in Spain as an independent scholar
in the Spanish archives. He has written 140
publications including four books dealing
with 18th-century Spanish borderlands. He is
known among historians for his detailed
knowledge and sophisticated appreciation of
Spanish archive collections. Kenton E.
Draigh '59 announces his retirement from
his position as financial manager at the State
University of New York in Port Jefferson, NY.
'60·'69
David Holmes '61 is general manager of
Fundacion Zumaque, a foundation that sup­ports
health and development
services for the inhabitants
of the rain forests of
Venezuela. His wife,
Becky, heads the develop­ment
organization. They
live in Caracas, Venezuela.
Ronald P. Burkard '63 is
country director at CARE. He and his wife,
Stephanie, live in Arlington, VA Donald
William Carr '64 owns The Best of Mexico,
an importer of goods from Mexico. He lives
with his wife, Susan, in Fresno, CA William
J. Guyon '65 is vice-president of sales and
marketing at Valley Packaging Industries, Inc.
He lives with his wife, AnIouise, in Appleton,
WI. Paul Watson '65 is financial executive
for institutional securities at Baraban
Securities in Walnut Creek, CA. C. Michael
Bennis '66 is consulting director of market­ing
at ALEX, a producer of art products. He
lives in Englewood, NJ. Vincent D. Cater
'66 is president and CEO of AmTrade
International Bank. Prior to joining AmTrade
in 1993, he was executive vice-president of
First American Bank of Georgia, Atlanta, for
ten years. He and his wife reside with their
seven children in Atlanta, GA Keith Kaneico
'66 is executive vice-president at Daiwa Bank
Trust He resides with his wife, Juliane, in
Greenwich, CT. Christian A. Larsen, Jr. '66
is senior vice-president of Trone AdvertiSing,
Inc. in Greensboro, NC. Perry S. Melton '66
is operations vice-president of Sunbeam
Oster. He resides with his wife, Patricia, in
Green Valley, AZ. Richard W. Brotzman '67
is president and general manager at Hallmark
24 THUNDERBIRD 49 13 I 1995
de Mexico, S.A. de C.V. He and his wife, Rosa,
live in Cuernavaca, Mexico. Jeffrey L.
Dickinson '67 directs operations at
Industrializadora de Maiz, SA de CV in
Guadalajara, Mexico. Robert L. Koprowski
'67 is vice-president of worldwide marketing
and sales at Sea Sweep, Inc., a manufacturer
of products for chemical and oil cleanup in
Denver, CO. Richard J. Matchette '67 is
vice-president of Rana International, an
import-export firm in Miami, FL. David
McCracken '67 is general manager at Purina
Nar\iing Feedrnill Co., Ltd. in Nar\iing, China
John Lockwood, Jr. '68 is area sales manag­er
at Aseptic Group in South Plainfield, NJ.
George F. Marshall, Jr. '68 is retired and
living in Social Circle, GA Patrick T.
McLaughlin '68 is self-employed and living
in Corvallis, OR. Montrovi1le B. Walker, III
'68 manages export sales at Kodak-Pathe in
Paris, France. James Judge '69 is president
of Suffolk International, Ltd., a liquor and
wine retail and export firm in Lake
Ronkonkoma, NY. Robert "Bon J. Kearns,
III '69 is chief financial officer of Leasing
Solutions, Inc., an information processing and
communications equipment leasing company
in San Jose, CA Jack Murray '69 directs life
and disability sales at Anco We & Benefits in
Houston, TX.
CORRECTIONS 81 CLARIFICATIONS
In the last issue of Thunderbird, we
mistakenly noted that Michael
O'Shaughnessy '71 "helped orga­nize
... the Book Fair in Guadalajara,
Mexico." In fact, he and his wife
organized the representation of
their home state, New Mexico, at
the fair, which is the largest in
Latin America. O'Shaughnessy
writes in: "I know that Thunderbird
has a relationship with the Uni­versity
of Guadalajara. I would not
want my friends at the University
to get the impression that we orga­nized
the entire fair, which in fact
they do, and very well."
'70·'73
Steven R. Chapman '70 is business and
cooperatives program director at The U.S.
Department of Agriculture in Hilo, HI. Larry
E. McCarver '70 directs marketing and sales
at Climatemaster. He lives in
Arcadia, OK. Edward L.
Rice '70 directs finance
and administration at
Gibson de Mexico, S.A de
C.V. He resides in Mexico
City with his wife, Gail
Dickson Rice. Michael H.
Summers '70 is deputy general manager for
production at Nestle Dairy Farm Tiar\iin, Ltd.
He lives with his wife, Suellen, in Tiar\iin,
China Houston W. Briggs, II '71 is property
manager and realtor at All Star Properties of
Central Florida in Kissimmee, FL. Robert G.
Fehlman '71 is retired and living with his
wife, DeAnn, in Oakley, ID. J. Mike Hohan
'71 is internal auditor at Defense Finance and
Accounting Service in Columbus, OH. Philip
W. Laney '71 is country director of China for
the American Soybean Association in Beijing,
China Jorge Martinez '71 is Latin American
sales and marketing representative at
Peerless Industries, Inc. in Chicago. Timothy
J. Palmer '71 writes that he "tried bungy
jumping in New Zealand and el\ioyed it." He is
CEO of Shamrock Industrial in Sierra Madre,
CA Jesse B. Silva '71 is general manager of
the international division at Reckitte &
Coleman, Inc. in Wayne, NJ. Kris W.
Anderson '72 is export sales manager at S&L
Brokerage, Inc., a candy broker. He and his
wife, Silvia, live in Vancouver, W A. Jonathon
J. Erb '72 is managing director at Bottom
Line Management Group in Montara, CA
William M. Hayes '72 is president and CEO
of Placer Dome Latin America, Ltd., a mining
company. He lives with his wife, Mariana, in
Santiago, Chile. Paul M. Hirsh '72 is director
at Agritechnics International in Pullman, WA
Forest Meade '72 owns Meade Associates, a
consulting and executive recruiting firm in
New York City. Rosemary R. Miller Berry
'72 and her husband, Robert, announce the
birth of a child, Henry Jackson, on December
15, 1994. She is a full-time mother of two in
Miami, FL. Jerome Petin '72 is self­employed,
producing and distributing cultural
CD-Roms. He lives with his wife, Claude, in
Orgeval, France. Dimitri Andonov '73 is
general manager at Sasha's, lnc., an interna­tional
trading company. He lives with his
wife, Sharon, in Milwaukee, WI. Robert M.
Dix, Jr. '73 is senior vice-president at UMBC
in London, England. William D. Gambrel
'73 is president of Banco de Boston­Colombia.
He lives with his wife, Dilcia, in
Bogota, Colombia. Christopher W. Hansen
'73 was promoted to corporate vice­president
of Boeing Co.'s Washington D.C.
office. He lives in Reston, VA. Richard Levy
'73 is owner of Gentry Marketing, Ltd. in New
York City. Juan Tapia '73 is vice-president
at Standard Chartered Bank, Ltd. in Key
Biscayne, FL. Steve Van Luven '73 is a rep­resentative
in the Washington State House of
Representatives in Olympia, W A. He chairs
the trade and economic development commit­tee.
John R. Wickersham '73 is president of
Compulink Marketing, Inc. in Greenville, SC.
'74·'75
Gary A. Drimmer '74 directs industrial oper­ations
at Continental Grain Co. in Mexico
City. Michael Haun '74 is first vice-president
of Smith Barney in San Carlos, CA. Adolph
A. Hoehling '74 is credit specialist at the
FDIC in Irvine, CA Apostolo D. Merguzhus
'74 owns his own mergers and acquisitions
company and recently closed the multimillion
dollar sale of Berrios Enterprises, the
Caribbean's largest appliance and electronics
retail chain, to a U.S. firm. He and his wife
live close to the beach in San Juan, Puerto
Rico. Drew M. Merkel '74 heads internation­al
sales and marketing at Baby Trend, Inc., a
manufacturer and distributor of juvenile prod­ucts
and toys in Chino, CA. Ronald Percival
'74 is managing director at I. N. G. Securities,
Corp. in New York City. Maribeth S. Rahe
ALUMNI FOCUS
A Link Between East and West
Thunderbird's
Influence
Masaaki Nakamoto '68 is president of three firms­and
quite happy about it
What role has Thunderbird
played in Masaaki Nakamoto's
success? "1 would have had great
difficulty had I not gone to
Thunderbird," says the '68 grad­uate.
When Masaaki Nakamoto '68 says he is
"international," he means 110 percent
international. "I am a link between the East
and the West," explains the 52-year-old native
of Kobe, Japan.
Nakamoto is currently president of three
finns: Vesuvius Japan (a subsidiary of the
Vesuvius group based in Belgium), with
whom he spends about half his time;
Kawasaki-Vesuvius Advanced Refractory
Technology (a joint venture between
Vesuvius and a Kawasaki Steel subsidiary);
and his own consulting company, Nakamoto
Research and Consulting (NRC).
Nakamoto says he is proud to work for a
global company like Vesuvius, which manu­factures
and markets heat-resistant materials
called "advanced refractories" for steel and
glass industries all over the world. "Vesuvius
is not just a multinational corporation, but a
transnational corporation," he says.
In fact, at a senior executive meeting in
Brussels Nakamoto is surrounded (in true
Thunderbird style) by an Italian CEO, a
Belgium vice president of finance, an
American human resource director, a
Scottish vice president of manufacturing, and
a Korean research director.
Nakamoto first engaged parent company
own business," says Nakamoto with pride.
"This is very rare. "
Being president of three firms is not easy.
Nakamoto finds he no longer has as much
time as he would like for his own consulting
business and other activities. But still, he
says, he is happy: "1 wanted to be indepen­dent.
My dream has come true."
An important part of that dream is the busi­ness
he created himself, Nakamoto Research
and Consulting. NRC functions as a part-time
"branch office" for foreign finns unable
Nakamoto was originally lured
to Arizona in 1967, swayed by
his drive to learn more about
culture and business, as well as
by the School's placement
services.
At graduation, Nakamoto and
three classmates accepted posi­to
afford Japan's high costs by them­selves.
The consulting firm helps for­eign
companies conduct research, find
contacts, and develop business.
"You must
think and
develop
your own
strateg ies."
One of the most difficult facets of his
cross-cultural consulting business is
creating trust between the foreign head
office and himself. "It takes time for the
foreign office to trust the consultant to be a
partial representative of the company," notes
Nakamoto.
tions with
Koehring Co., a
manufacturer of
construction
machinery based
in the U.S. When
he started in
1968, there were
20 other T'birds
At the same time, Nakamoto must position
himself to make business decisions for the
firm, despite being far away from the home
office and not having all the information. "You
must think and develop your own strategies,"
he says. "That's the part I like most."
working at Koehring! After only
a year and a half, Nakamoto was
transferred to Koehring's office
in Japan (also headed by a
T'bird, Yoshio Ueda '66). By
1973, he had been appointed
Koehring's Far East representa­tive.
Vesuvius International in .--------------, And what does a presi­dent
of three companies do
in his off-time?
According to Nakamoto, his
biggest East-West success came
with his second employer, Korf
KG. There he organized special
two-week tours of Japanese
steel mills for Korf executives
interested in acquiring the skills
of Japanese companies. The pro­gram
was so successful that
Nakamoto was asked to orga­nize
similar tours for American,
German and French companies.
Belgium as a consulting
client in 1987. Within a year,
the Belgium headquarters
requested that he establish
and head a 100 percent
Vesuvius subsidiary in
Japan. "They were
extremely flexible, allowing
me to still carry on with my
Masaaki Nakamoto '68
• BORN
1943
• EDUCATION
MBA 1976, Sophia University, Tokyo;
BAF 1968, Thunderbird; BBA 1966,
Kwansei Gakuin University, Japan
• BUSINESS EXPERIENCE
President, NRC, Vesuvius Japan,
Kawasaki Vesuvius, 1983 to present;
Manager, Tokyo Office,
The Korf Group (steel), 1975-1983;
Representative, Koehring Co.
(machinery), 1968-1975
Nakamoto says he is not
a typical Japanese business­man.
He eats a quick break­fast
of milk and bread in the
morning, takes his poodle
for walks three times a day,
and plays eight hours of ten­nis
on weekends. He says
he does not play golf, how­ever:
"I'm very good at run­ning
around on the tennis
court," laughs Nakamoto.
Golf, he explains, is too expensive and would
keep him away from his wife, Tomoko.
Nakamoto is proud that his children are
already following in his international foot­steps.
His son, Masao (21), is taking French
classes at Keio University. Masao's experi­ence
abroad begins next year in France.
Nakamoto's daughter, Mayumi (24), studies at
Concordia University in Irvine, California
Like her father, she too is considering gradu­ate
school-maybe at Thunderbird?
-Donak M. Bergler '95
Nakamoto estimates that over
the course of five years, 250
people-from top executives to
front-line workers-visited
Japan to learn how to improve
their companies' steel-making
capabilities.
"Success is the effort of many
people who are involved. I was
part of a big success with Korf,n
explains Nakamoto-emphasiz­ing
the word "part" in true
Japanese fashion.
THUNDERBIRD 49 131 1995 25
Jeffrey B. Morris '77
Jose Luis Zepeda '79
(I) and Walter S.
Maeda '79 (r) in
Arusha, Tanzania.
Maeda runs the
famous Kilimanjaro
Bus Company, and
Zepeda is a banker in
NYC with First
National Bank of
Chicago.
'74 is senior vice-president for personal and
commercial financial services at Harris Bank.
She is one of the highest ranking females in
U.S. banking and was recent-ly
elected to The
Committee of 200, a pro­fessional
organization of
preeminent business­women
who personify
entrepreneurship and
business leadership. J.
Baxter Urist '74 is senior vice­president
of product licensing and interna­tional
product development at Children's
Television Workshop, the producers of
Sesame Street and other educational pro­grams
in New York City. Eli J. Belendez '75
is vice-president of Banco Santander Puerto
Rico in San Juan, Puerto Rico. Tom W.
Glaser '75 is social studies chairman at the
School for Advanced Students at Miami-Dade
Community College in Miami, FL. Kenneth
R. McPherson '75 is vice-president of opera­tions
at Raytheon Co. He resides in Nashua,
NH. Steven J. Oakey '75 manages business
development at Advanced Technology Labs in
Bothell, W A. Carlos A. Roncal '75 directs
marketing at Scala USA, Inc. in Winter Park,
FL Thomas F. Schields '75 directs market­ing
at Reynolds and Reynolds Healthcare
Systems. He lives with his wife, Jackie, in
Spring Valley, OH. Ted R. Strickler '75 is
principal and owner of The Morgan Miren
Group, a human resources consulting firm. He
and his wife, Patti, live in Thornton, CO.
Christine Thompson Doron '75 is treasurer
of Resort Condominiums International, Inc.
She and her husband, William, reside in
Carmel, IN. Elizabeth Toomey '75 owns
Consolidated Business Services, a bookkeep­ing,
consulting and tax service firm in
Huntington Beach, CA.
'76-'77
John R. Austin '76 is senior investment con­sultant
at Citicorp Investment Services in
Washington, D.C. Jeannot R. Barr '76
works in his family's wine business and oper­ates
a print and drawing company
in Bordeaux, France. He writes,
"his best job is being a dad to his
nine-year-<>ld daughter, Danielle."
Kathryn D. Barrios '76 is man­aging
director at Americas
Consulting Group in Stamford,
CT. Clipton Flenniken, III '76
is assistant treasurer at AEGON
U.S.A., an insurance holding
company. Richard E. Frank
'76 directs marketing at
Ferromatik Milackon in
Malterdingen, Germany. John
D. Stevenson '76 is director of
sourcing and production at
Initiatives, Inc., a trading com­pany.
He lives with his wife,
Annick Kerrest, in San
Antonio, TX. Vahe Asadourian '77 is presi­dent
ofVatco Properties, Inc. and Olympia
Management Co., a real-estate investment
firm. He resides with his wife, Thelma, and
their two children in Houston, TX.
Christopher C. Bergin '77 is treasurer of
Waters Corp., a manufacturer and distributor
of chromatography instruments. He resides
with his wife, Carole, in Wellesley, MA.
Frederick C. Bromberg '77 is vice-presi­dent
for banks and brokers at J.P. Morgan. He
and his wife, Lauren, live in New York City.
Elizabeth L. Clagett Beck '77 works as for­eign
markets specialist at Fidelity
Investments in Boston. Gerald W. Hallett
'77 is sales and marketing manager at MCI in
Carmel, IN. Sally Ingalls Rudd '77 directs
26 THUNDERBIRD 49 /3/ 1995
UPDATES
marketing at Todd & Associates, Inc., an
architecture services firm in Phoenix. James
S. Jehovics '77 works in marketing at
Occidental Petroleum Corp. He resides with
his wife, Linda, in Sugarland, TX. Frank R.
Jent '77 is in charge of private banking for
nothern Europe at DG (Schweiz) Bank A.G.
He lives with his wife and two-year-<>ld son in
Ote1finge, Switzerland. William K. King '77
works as district sales manager at Mann
Roland, a printing press manufacturer. He
resides with his wife, Suzan Wanandar-King
'78, and their seven-year-<>ld son, Brian, in La
Crescenta, CA. Craig O. Klopfieisch '77 is
mayor of Celina, Ohio. He is also involved in
retail sales and services, real estate develop­ment
and management. He and his wife,
Nancy, have two children, Thomas and Julie.
Jeffrey B. Morris '77 is a government bank­ing
officer in cash management sales at U.S.
Bank in Portland, OR. Scott Nation '77 man­ages
sales at Awning Doctors in Tucson, A'l.
Vicki L. Warren '77 is a consultant at
Omega Performance Corp. in Richmond, VA.
CORREaJONS & CLARIFICATIONS
In the last issue, Thunderbird mis­takenly
reported that Ibrahim
Fahoum '78 had recently relocated
to Australia as managing director
of Arab Bank. In fact, he has been
the managing director of Arab
Bank Australia, Ltd. for the last six
years. Fahoum writes that last year,
Arab Bank Pic. became the first for­eign
bank to receive approval from
the Australian Government to carry
on banking business in Australia as
a locally incorporated bank.
'78
George A. AbreU is president of AEI Falcon
Project Forwarding in Houston, TX. C.
Joseph Atteridge is president and chief
operating officer of Anasazi, Inc., a reserva­tion
systems and services supplier in Phoenix.
Byron W. Battles is telecom consultant at
Booz-Allen & Hamilton, Inc. in McLean, VA.
Denise Burka Iskow is administrative assis­tant
at Temple Shalom. She and her husband,
Sheldon, live in Rockville, MD. Lawrence
Camp is senior privatization advisor for
Central & Eastern Europe at USAID. He lives
in Bethesda, MD. Stephen B. Gasser is
founder and president of Japan-America
Consulting ServiCes, a firm that advises and
trains executives to build their busin.ess with
the Japanese. He lives in Redmond, W A.
Barbara Lanning Hutson manages interna­tional
sales and marketing at Chatsworth
Products, Inc., a manufacturer of datacom
framework systems in Miami, FL. Gerald
Mathews is president of Mathews Furniture
Co. in Fruitport, MI. Frances McCutchon is
administrative assistant at the University of
California in Santa Barbara, CA. Charles L.
Nunu works for Bliesener & Cie S.A., an agri­cultural
commodities trading company in
Prangins, Switzerland. JoAnn Seager directs
programs and events at Zenith Data Systems,
a computer manufacturer in Bufffalo Grove,
1L. Judi A. Shane is chief procurement offi­cer
for the U.N. Mission for the Verification of
Human Rights in Guatemala She lives in New
York City. Suzan Wanadar-King is vice-pres­ident
of Citibank, N.A. She lives with her hus-band,
William King '77, and their seven­year-<>
ld son, Brian, in La Crescenta, CA.
Sinda L_ White is controller of Eliason &
Knuth Companies, Inc. in Omaha, NE.
'79
Jill E. Apple Amirpashaie Jjves with her
husband, Siavash Amirpashaie, in
Woodbridge, Virginia She teaches sixth
grade; he is chief financial officer at Bee & H.
Electric Co. They have two girls, twelve-year­old,
Kathryn, and ten-year-<>ld, Carolyn. Ali
Mohammed Bahaj is treasurer/controller at
Caterpillar, Inc. in Soo Paulo, Brazil. Brian
Ballard is editor of The Wichitan at
Midwestern State University in Wichita Falls,
Texas. Kathryn A. Banks is vice-president at
NationsBank of North Carolina in Charlotte,
NC. John W. Blair is vice-president ofIKS
American Corp., a manufacturing firm in
Gardena, CA. Jay Brandon directs business
development at Tektronix, Inc. in Wilsonville,
OR. John C. Cook is managing director at
Institutional Investors Consulting Co. He, his
wife, Tania and their two-year-<>ld daughter,
Shelley, live in Zurich, Switzerland. Craig F.
Dawson is prinCipal at Catalyst Partners, Inc.,
a consulting service in Colorado Springs, CO.
Donna M. DiBiasio and her husband, Brian,
announce the birth of their daughter, Dena
Samara Goldblatt on February 27, 1995.
Maarten Fleurke is president at ACO
Polymer Products, Inc., a manufacturer and
marketer of trench drainage systems, in
Chardon, OH. Gary Grafel is owner of
Melaleuca, Inc. a producer of personal
hygiene and home cleaning products. He lives
with his wife, Melinda, in Santa Rosa, CA.
David E. Hanas is vice-president and finan­cial
consultant at Merrill Lynch in Evansville,
ID. David D. Johnson is president of
Komatsu Howmet, Ltd., a supplier of invest­ment
casting for gas turbine engines. He and
his wife, Cynthia Johnson, live in Ishikawa,
Japan. Thomas C. Lawson is public finance
vice-president of Sumitomo Bank in Atlanta,
GA. C. Henry Longmire is development offi­cer
and account manager at the
Massachusetts Executive Office of
Communities and Development in Boston.
Christopher H. Lundh is vice-president for
Europe at GlotsalInternational in Concord,
CA. Walter Maeda operates the Kilimar\iaro
Bus Company and is an entrepreneur in the
tourism and farming industries in Tanzania
Peter J . Martin sells commercial insurance
for Sentry Insurance Co. He and his wife,
Nancy Fuhrman, live in Stone Mountain, GA.
Rajeev Merchant is managing director of
strategic planning and business development
for South Asia at AT&T. He lives in New
Delhi, India with his wife and their three chil­dren.
Suzanne O'Hanlon Markle is a self­employed
attorney in Research Triangle Park,
NC. Taco Proper is public relations vice­president
at IMP AC, a communications com­pany
in Hong Kong. Kimberly A. Schulman
Tieman is producer and announcer at
Peachstate Public Radio. She lives with her
husband, John Tieman, in Newman, GA
Carl E. Sjoquist works as a software consul­tant
at Yankee Object Software. He lives with
his wife, Dagmar, in Marshfield, MA. Mark L.
Walher works as market manager at
ShepardsIMcGraw-Hill, Inc. in Colorado
Springs, CO. Marianne Wallach has five
daughters aged seven months to ten years.
She lives in Milwaukee, WI. Jose Lnis
Zepeda recently clin1bed Mt. Kilimar\iaro,
Africa's highest peak. He is a banker with The
First National Bank of Chicago in New York
City.
ALUMNI FOCUS
First MBA Program in Vietnam
Nancy Napier '75 and Anthony Olbrich '75
helped create the first graduate business
program in Vietnam
For T'birds Nancy K. Napier
'75 andAnthony W. Olbrich
'75, normalization of relations
between the u.s. and Vietnam
lwlds special signiju:ance.
The Thunderbird pair recenUy
traveled to Hanoi as instructors
to help create the first u.s.­accredited
graduate business
program in Vietnam.
''Vietnam is a country that few
Americans consider witlwut
emotion, " says Napier, wlw is
professor of international busi­ness
at Boise State University in
Idalw, as weU as director of the
Institute of Global Competitive­ness.
"Tony and I have had the
chance to become part of some­thing
that we hope wiU queU
some of tlwse emotions. "
The landmark education pro­gram,
funded by the Swedish
International Development
Autlwrity and managed by the
University of Hong Kong, aimed
to train hand-picked instructors
from the National Economics
University of Hanoi to become
Vietnam's first MBA faculty.
In August, Napier and Olbrich
(a vice president of corporate
banking at West One Bank in
Idalw) helped graduate the pro­gram'sfirst
29 students, wlw wiU
be instrumental in developing a
model business education pro­gram
for their entire country.
FoUowing is a personal
account of their experience in
Vietnam.
In spite of its current challenges, the future
bodes well for Vietnam-particularly if many
of its people are like the ones we have met
during the MBA program.
The 29 participants, eager to learn, ques­tioned
us on everything from how businesses
grow in the U.S. to how many children the U.S.
government "allows" families to have. Thrilled
to have access to what they called a "real
banker" (my husband), the participants over­whelmed
Tony with their requests for detailed
explanations of a wide range of banking
issues. Although in many cases they were deal­ing
with concepts about which they had little
first-hand experience (such as the profit
motive or the benefits of competition), their
questions were articulate and precise.
Compared to many Asians, the Vietnamese
are more open and direct. Their warm wel­come
of their first American instructor helped
answer the question we all held in our minds:
What would the Vietnamese reaction to
Americans be? When asked what they thought
of the Vietnam War, the Vietnamese consis­tently
say, "That is the past, we are concerned
about the future. "
The participants captured our hearts for
many reasons. They bravely wrestled with
learning to understand American accents and
idioms. They made each of the more than 20
instructors feel like the most important and
valued teacher they have ever known.
Moreover, they did so under conditions that
would make many of us fizzle. They grapple
with frequent power outages, coupled with
typhoons in summer. Temperatures hover in
the 90s and 100s from April to October, with
hwnidity to match, making chalk crumble and
overhead projectors steam up. By day, they
work on computers loaded with the latest soft­ware
available (courtesy of the grant). By
night, they return to small apartments, shared
Nancy K. Napier '75 and
Anthony W. Olbrich '75
have helped create the
first U.S.-accredited grad·
uate business program in
Vietnam. Here (left, and
above right) they stand
with some of the pro·
gram's first graduates.
who will be instru