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Center for International Business Education and Research C I B E R N E W S |
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Center for International Business Education and Research C I B E R N E W S |
April, 1997 Volume 7, Number 7
| MSU CIBER thanks the following new Advisory Board members for attending |
Advisory Board meets, plans new initiatives
On Friday, April 18, the CIBER Advisory Board met to discuss CIBER’s progress over the year and plan its future directions. Presentations included a recap of last year’s activities and an overview of faculty and graduate student projects associated with the Center. Don Riegle, Board member and former Senator, then led a roundtable discussion of how business leaders and educators could introduce change in the process of international business education. In general, the Board agreed that the primary obstacle to doing business overseas was risk. Finding competent international managers that can help mitigate these risks is always a key concern. Thus, CIBER’s efforts should focus on creating an environment that encourages the development of such managers. However, the specifics on how this can be done became more problematic. According to the Board’s business leaders, students must diversify their skills. Firms have been unable to locate an adequate number of qualified candidates who have both strong business skills and the necessary international experience to be useful abroad. The Board suggested that CIBER continue encouraging international perspectives to be inserted into business course work, as well as help develop classes covering doing business in specific geographic areas. Overwhelmingly, the Board agreed that international business knowledge was something that spilled across a variety of curriculas. A good international manager had to combine strong traditional business skills with broad knowledge in international-based political, cultural and economic studies. Another concern of the meeting involved developing stronger linkages between business and academia. Greater participation among the business community would help increase the transfer of knowledge between the parties, as well as facilitate CIBER’s ability to sponsor more activities. Encouraging more student internships in the international arena, for example, was cited as worthy and mutually beneficial cause. International work experience prior to entering the work force would be extremely beneficial for both students and firms. Firms would like to cultivate internationalism in their human resources at an earlier stage, and students need more practical experience in business operations. The problem, however, is that few firms are willing or able to commit the necessary resources toward sponsoring such internships, and the initiative to pursue internships as a method of developing international capabilities has not yet been present. In the future, MSU CIBER plans to explore how it might create and encourage this awareness. Over the next year or so, the Board recommended that CIBER should continue building its connections with businesses and community. Although outreach efforts have been increasing steadily over the years, many people remain unaware of CIBER’s activities. More outreach will help open up new possibilities. As MSU CIBER continues to consider and plan its future initiative, the meeting generated many new prospects and ideas. MSU CIBER plans to incorporate many of the perspectives presented at the meeting into its agenda, and will aggressively pursue expanding its outreach and scope in future months. As one Board member noted, MSU CIBER is one of the business world’s "best kept secrets." |
MSU CIBER was please to host Geoffrey Bloom, Chairman and CEO of Wolverine World Wide, Inc., as a speaker on March 27, 1997. Addressing MBA students, Bloom documented the success of his company as a global leader in the manufacturing and marketing of footwear.
In 1996, Wolverine World Wide posted net sales of over half a billion dollars, a 23 percent increase over the previous year. This was the fifth consecutive year of over 20 percent increases. USA Today also ranked Wolverine World Wide among the 25 stocks that have risen the most since the bull market began on October 12, 1990. Wolverine was the only apparel or footwear stock included on the list.
Based in Rockford, MI, Wolverine World Wide is perhaps best known for its Hush Puppy brand of casual shoes, although it is also a leading manufacturer of outdoor and work-related footwear. Beginning as a small company, Wolverine World Wide now distributes its brands in 167 countries and manufactures its products in 29.
"We literally created the casual shoe market," says Bloom proudly. According to corporate legend, Hush Puppies were born as an idea in the 1950s to apply a Wolverine tanning technology to the consumer market. The name comes from the Southern dish "hush puppies" - fried balls of cornmeal-sometimes thrown to a noisy or begging dog. AT the time, feet were also called "dogs," and aching feet were often called "barking dogs." Thus, Wolverine built its reputation on making the world’s most comfortable shoes-Hush Puppies.
Like most success stories, Wolverine’s history includes an exciting turn around. While Hush Puppies were enormously popular during the 1960s and 1970s, the brand was faltering when Bloom first came to the company in 1987. Bloom admits that Wolverine was best known for creating "old people" shoes. Additionally, Wolverine’s corporate structure had become cumbersome and ineffective. However, under Bloom’s guidance, Wolverine launched a strategic plan to divest underperforming assets, re-focus on its core competencies and assert the company’s growth initiatives.
In 1992, when Bloom was elected CEO, Wolverine had 18 different profit centers, some of which were underperforming. Bloom restructured the company around its five major brand groups and streamlined its overall organization. Under the new structure, Wolverine’s footwear sales grew from approximately 18 million pairs in 1992 to 30 million pairs in 1995. Stock price, adjusted for three 3-for-2 splits, soared from $3.25 to $27.00.
Strong branding and product repositioning has also led to Wolverine’s re-emergence as a powerhouse. By reasserting itself with the youth market, Hush Puppies have once again become overwhelmingly popular - making appearances at high-fashion events such as the Academy Awards, on television stars and even on Forest Gump. A two minute segment on the Entertainment Tonight television show highlighted the trend, and Business Week magazine voted Hush Puppies Classics as one of the "Best New Products of 1996."
Global expansion was also a key part of Wolverine’s new strategy. According to Bloom, diversifying Wolverine’s customer base was a crucial part of its expansion. "The United States has more retail square footage than anywhere else in the world - the market is saturated" said Bloom. But tapping new markets and asserting Wolverine’s brands abroad has helped bolster growth. "Global brands are becoming more prevalent and desired by consumers in all parts of the world."
While Bloom admits managing a global business is tough work, he is quick to acknowledge the importance competent and motivated employees. "The team with the best players win," said Bloom. "Nothing else changes."
Fred Erbisch, Director of the MSU Office of Intellectual Property, addressed this month’s meeting of the Greater Lansing International Business Forum. Erbisch explained how the University is seeking to protect and eventually license various patented technologies and "intellectual inventions" to a variety of countries around the globe. These technologies range from new strains of agricultural crops that may help alleviate hunger to proprietary trademarks used in apparel branding.
According to Erbisch, the protection and dissemination of intellectual property is of particular concern to the developing concern to the developing world because it allows them access to valuable applications of technologies developed by more advanced nations. By licensing these properties, developing countries can spur development and start new industries. Often, this has allowed many countries to make technological "jumps" by leapfrogging off research done in the developed world.
One problem with licensing technologies to the developing world, said Erbisch, is that these countries often have a poor or non-existing understanding of patent and trademark law. Much of his efforts involve not only protecting MSU’s property rights, but also educating the licensees about how the protection works. A strong system of protection not only protects the inventors, but also facilitates an environment where knowledge can be shared with the developing world.
Erbisch believes that licensing intellectual property rights open many doors for both developing nations and the University. "These developing countries do want to work with the big boys and they are willing to work with us toward an agreement," said Erbisch. In addition, Erbisch also encourages local businesses to contact his office to see what technologies the University can offer them. "The more things we get out locally, the better it is," said Erbisch.
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The Eli Broad Graduate School of Management International Business CenterMichigan State University Eppley Center 645 N. Shaw Ln Rm 7 East Lansing, MI 48824-1121 USA Exec Director's Office N356 North Business Complex Tel (517) 432-4320 FAX (517) 432-4222 IBC Office Eppley Center 645 N. Shaw Ln Rm 7 East Lansing, MI 48824-1121 Tel (517) 353-4336 FAX (517) 423-1009 http://ciber.bus.msu.edu |
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