Tag Archives: W.P. Carey School of Business

home.prices

Phoenix’s median home price continues to rise

A new report by real state researchers at Arizona State University says the median home price in metro Phoenix during October increased by 34 percent when compared to the same period a year before.

The report by the university’s W.P. Carey School of Business says the median home price stood at $157,000 in October.

The median home price for October 2011 was $116,000.

The researchers also said the supply of homes and condos in metro Phoenix increased 31 percent over the past three months.

housing.prices

Phoenix-area Home Prices Rising Again

After several months of hovering in the same tight range, Phoenix-area home prices are on the rise again. A new report from the W. P. Carey School of Business at Arizona State University reveals the numbers for Maricopa and Pinal counties, as of October:

After staying between $149,000 and $150,000 for four months in a row, the median single-family home price finally bounced up to $157,000 in October.
The short supply of homes available for sale on the market has gone up 31 percent over the last three months, but will likely level off for the winter.
New-home sales are skyrocketing – up 85 percent from the same time last year.

The median single-family home price reached $157,000 in October, up more than 34 percent from the same time last year. That’s when it was at just $116,800. Realtors will note the average price per square foot has also gone up almost 26 percent since last October. Prices have been rising sharply since September 2011, with the exception of one recent pause.

“After four months of limited movement in the median single-family home price, the Phoenix area is again seeing an upward trend,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “The summer lull ended, and we had an influx of snowbirds and other buyers. We’re seeing about 5 percent more sales activity this October than last October.”

Some of the increased activity is thanks to more homes becoming available on the market. As prices go up, more existing homeowners are willing to sell. The overall supply of homes and condos available on the Phoenix-area market went up 31 percent over the past three months. However, Orr suspects the supply peaked in November and will start declining again as winter begins. Even now, it’s a relatively tight supply, especially at the lower-priced end of the market.

“The overall number of active single-family home listings without an existing contract as of Nov. 1 was fewer than 12,500 in the greater Phoenix area,” says Orr. “Also, 76 percent of that supply is priced above $150,000, so ordinary buyers in the lower range still face rough competition from multiple bidders, including investors and others making preferred all-cash offers.”

Almost half of the homes bought for less than $150,000 in October were the result of all-cash deals. Though investor presence is declining somewhat in the Phoenix area, investors were still involved in almost 30 percent of the housing-market transactions.

Fewer cheap properties are flooding onto the market as foreclosure rates go down. Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – were down 41 percent this October from last October. Completed foreclosures were down 15 percent.

The market is starting to shift toward a much greater percentage of normal resales and new-home sales. Normal resales are up 100 percent from last October, and new-home sales are up an impressive 85 percent.

“New single-family home sales had a strong month in October, topping 1,000 for the first time since 2010,” says Orr. “As a result, developers are clamoring for new vacant lots on which to build. Because of competition, developers are being forced to pay higher prices than in the recent past, so we conclude new-home prices will rise substantially over the next year. That will also likely pull normal resale prices higher as long as there’s a shortage of housing inventory.”

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201211.pdf. More analysis is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

education.business

W. P. Carey School Offers New Scholarship Program

If you’ve ever thought about going back to school to try to advance your career and make more money, the W. P. Carey School of Business at Arizona State University offers some of the best values in education. In particular, its full-time MBA program has consistently been recognized as one of the best in the nation for “return on investment.” Recently, the school announced it’s adding a new scholarship program to make it even easier for some of the best students in the country to get an MBA through that program.

“We recently introduced the Wm. Polk Carey Memorial Scholarship Fund to help successful applicants for the full-time MBA program cover the costs of education,” says Robert Mittelstaedt, dean of the W. P. Carey School of Business. “Last year, Bloomberg Businessweek ranked our full-time MBA program among the Top 20 in the world and the Top 10 in the U. S. for ‘return on investment,’ indicating superb value. However, we still wanted to push even further to help more deserving students access a highly ranked MBA program.”

The Bloomberg Businessweek article pointed out that students completing the W. P. Carey School’s full-time MBA program could see an annual pay increase of about $40,000. It also indicated that it would likely take less than five years for a W. P. Carey full-time MBA student to recoup all the costs of getting an MBA, including the salary the student gives up to go back to school full-time.

The school’s full-time MBA program is known for high quality. It is currently ranked among the Top 30 “Best Graduate Schools” for business in the nation, according to U.S. News & World Report. It was one of the two least expensive programs in the entire Top 30 this year. In addition, it’s recognized for its personalized feel, with small class sizes. Students can specialize in multiple areas of emphasis, including finance and supply chain management, a field in which the W. P. Carey School consistently ranks Top 10 in the nation. This year, 89 percent of the school’s full-time MBA students were employed within 90 days of graduation.

The new scholarship fund is named after the school’s benefactor, real estate investor and acclaimed philanthropist Wm. Polk Carey, who donated $50 million to the school in 2002/2003. Carey passed away in January, but his generosity continues to be felt by students. Now, every applicant to the W. P. Carey School’s full-time MBA program will be considered for the scholarship money, which could completely cover the program’s costs for the very best students. No additional application is required.

For more information on W. P. Carey MBA programs, visit www.wpcarey.asu.edu/mba.

200392710-001

Why Different States Are Getting Out of the Housing Crisis Faster

America’s housing market is finally starting to really recover from the Great Recession, but some areas of the country are fighting back faster than others. New research from the W. P. Carey School of Business at Arizona State University indicates one reason: Different states have dramatically different mortgage laws, and some make it easier to push through tough times.

“The laws across states use different legal theories as the basis for mortgages, and they balance the rights of creditors and borrowers very differently,” explains Assistant Professor of Real Estate Andra Ghent of the W. P. Carey School of Business. “The variations started early in America’s history, and they’re not really based on economic reasons, but they’re still having a major influence on what’s happening now with the housing market.”

Ghent runs through a few main issues playing a role in whether a state has already gotten through the worst of the housing crisis or whether it’s still plodding along:

Some states require judicial involvement in foreclosures, while others don’t.
Some states require a massive amount of paperwork, including the original promissory note, in order for a lender to foreclose.
Some states require a longer “redemption period” of time, during which the borrower can be behind on payments, before a foreclosure can happen.

Ghent says, in general, many of the states that don’t require judicial involvement or tons of paperwork have already run through the bulk of their foreclosures and are finally seeing rising property values. That’s because the flood of cheap, foreclosed properties onto the market has stopped.

Arizona is one of the states in which the damage happened relatively quickly, and there’s no longer a big backlog of foreclosures to go through the process. Phoenix-area home prices have been rising dramatically since last fall.

“The key is quick resolution of the situation,” says Ghent. “For example, if a state requires a longer period before foreclosures can happen, then that generally means the homes deteriorate more as the borrowers realize they’re going to have to leave and stop taking care of the property. This is bad for the neighbors and the property values.”

Ghent adds she doesn’t see much renegotiation during the times leading up to the foreclosures. The rules just allow for drawing out the situation.

“New York and Florida, for example, have very slow foreclosure processes,” Ghent says. “Properties can sit around without any maintenance for two to four years while they work their way through the maze, before they finally get a new owner.”

Ghent also doesn’t think that making more foreclosures go through the judicial process will help prevent problems like robo-signing. That’s where some lenders didn’t properly review all the individual details of the cases or follow all of the required procedures.

“In most of those cases, the borrowers were really behind on their payments and would eventually have lost the homes, anyway,” Ghent says. “Fraud is unacceptable, but it was also a case of sheer volume. If those particular states had required less paperwork, that’s what might actually have helped prevent more robo-signing.”

Ghent emphasizes that getting rid of the patchwork of different state laws would ultimately benefit the housing market as a whole.

“Can you imagine how much money, time and resources we could save, if we didn’t have 50 different sets of laws, paperwork and legal-expertise requirements?” she asks. “Again, there appears to be no real economic reason for the differences. Many of these laws date all the way back to the 1800s, and some were changed just after the Great Depression.”

Overall, Ghent has one big message for those who can influence the process in the future.

“Nobody pays attention to mortgage laws for 50 to 60 years at a time,” she says. “They only examine these laws after a major event, so the time to change is now.”

Ghent’s research on the history of America’s mortgage laws can be found online at
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2166656.

customer.service

Help to ease Holiday Shopping Customer-Service Worries

As we approach holiday shopping time, many of us start thinking about long lines, frayed nerves and dealing with frazzled customer-service representatives. However, some companies are now taking the time to turn customer-service interactions into a strong point of competitive difference that makes consumers want to come back for more, especially when price and other considerations are basically equal.

A new program from the Center for Services Leadership at the W. P. Carey School of Business at Arizona State University is designed to help make your service experiences better. It’s also meant to help improve relationships between participating companies and the firms they work with, such as suppliers, distributors and retailers.

“We worked with Honeywell to create a groundbreaking, totally online program aimed at making every single customer-service representative and field service representative completely focused on excellent service,” says Associate Professor Nancy Stephens of the W. P. Carey School of Business, faculty director of the program. “Honeywell Aerospace is the first company to decide to send every one of its customer-oriented representatives – 1,400 people — through the program. They want to make a very visible commitment to customer service, and other companies are looking at the program, too.”

“The partnership that’s come together between the W. P. Carey School’s Center for Services Leadership at ASU and Honeywell has really allowed us to put together a fantastic program that develops the customer-service skills for Honeywell Aerospace employees,” says Adrian Paull, Honeywell vice president for customer and product support.

Honeywell’s first class just graduated from the academy in late October, but the program can be customized by other firms. Some units are already being taken online by employees at other big-name companies.

“All companies have business-to-business relationships they want to nurture,” says W. P. Carey School of Business Dean Robert Mittelstaedt. “This new program creates an opportunity for them to really polish their customer-service skills, not only for the general public, but also for those B2B customers.”

The Center for Services Leadership helps well-known firms respond to the challenges faced as services have become a driving force in economies around the world, with less growth happening in products and manufacturing. The center’s member companies include household names like Boeing, FedEx, Honeywell Aerospace, IBM Global Services, Mayo Clinic, PetSmart, Siemens Industries, Southwest Airlines and State Farm Insurance Company.

“The companies looking at this program understand that it offers expertise from the center, including faculty instructors from the Top 30-ranked W. P. Carey School of Business,” says Professor Mary Jo Bitner, executive director of the center. “At the same time, the program is also extremely flexible, since it’s offered online. It allows for standardized training across all of a company’s worldwide locations and the chance for employees anywhere from Dallas to Shanghai to Berlin, to get out of their everyday mindsets and interact with each other and make things better for their customers.”

“Wherever we are in the world, we need to operate within the cultural boundaries of that area and provide customer service that is needed and expected by the people in that area,” says Eileen Barry, a customer support project manager at Honeywell. “The major change that the W. P. Carey School training has provided to me personally and at work each day is to always think of things through the customer’s eyes.”

Some courses in the program include “Listening to the Voice of the Customer,” “Designing Customer-Focused Service Processes,” and “Recovering from Service Failures.” The idea is to make customers happy and to address any customer disappointments with great recovery. Those who complete the program receive a certificate and are eligible for Continuing Education Units (CEUs) from Arizona State University. These units are widely used as a measure of participation in non-credit, professional development courses.

For more information about the Center for Services Leadership or the new program, go to www.wpcarey.asu.edu/csl or call (480) 965-6201.

economy

2013 Economic Forecasts for U.S. & Arizona

Arizona’s economy improved somewhat this year, but what can we expect in 2013? Top experts on the U.S. and Arizona economies will deliver their forecasts for the state, nation, stock market and housing market at the Valley’s largest and most trusted economic-forecasting event on Dec. 5.

The 49th Annual Economic Forecast Luncheon is co-sponsored by the Department of Economics at Arizona State University’s W. P. Carey School of Business and JPMorgan Chase. About 1,000 people are expected to attend the event at the Phoenix Convention Center.

“Arizona’s economic forecasters are patting themselves on the back, since their projections made a year ago appear to be accurate for 2012; the state seems certain to record about 2-percent job growth, and we are seeing the beginning of a housing comeback,” says Research Professor Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business. “However, 2013 is a different story. A huge cloud of uncertainty is caused, not only by questions about what the next Congress will do, but also about how the overall U.S. economy will react to recession in Europe and slower growth in China. Though the national economy always has some impact on Arizona, until housing and population growth really pick up, the state seems destined to closely follow the national business cycle. If the U.S. economy contracts, then Arizona’s economy will, too. That’s the major risk we’re watching.”

Presentations will include forecasts on:

* Arizona and the regional economy from McPheters, who is also editor of the prestigious Arizona and Western Blue Chip Economic Forecast publications.
* The U.S. economy from Beth Ann Bovino, deputy chief economist at Standard & Poor’s, a widely quoted media expert with two decades of financial experience, including a position at the Federal Reserve.
* The financial sector from Anthony Chan, chief economist for private wealth management at JPMorgan Chase & Co., who served as an economist at the Federal Reserve Bank of New York, appears monthly on CNBC and is a member of the Reuters, Bloomberg and Dow Jones weekly economic indicator panels.
* Real estate and construction from Elliott D. Pollack, chief executive officer of Elliott D. Pollack and Company, a highly regarded Scottsdale-based economic and real estate consulting firm.

The 49th Annual Economic Forecast Luncheon will be held in the Phoenix Convention Center’s West Ballroom on Wednesday, Dec. 5 from 11:15 a.m. to 1:30 p.m. Admission is $90 per person. Proceeds are used to support student scholarships, faculty research, and other academic and professional activities in the Department of Economics at the W. P. Carey School of Business.

For more information, including registration details, go to www.wpcarey.asu.edu/efl or call (480) 965-3531.

Small Business Leadership Academy

Small Business Leadership Academy: Blueprinting

In the final session of the 2012 Small Business Leadership Academy, attendees took an in-depth look at brainstorming. For a company with a limited number of employees, it’s more important than ever to get the best from each of them. Many small business owners see that they have high-potential individuals who can become leaders, but they don’t bring their ideas out.

“What the cybernetic effect of communication tells us is that if people commit to an idea too soon, they’ll be stuck on that idea,” said Ruth Barratt, clinical assistant professor of management at the W. P. Carey School of Business. It’s important when you’re facing the prospect of asking your employees how you can innovate, that it be presented in an open way. They should take time to think by themselves in a quiet space. Then once the group re-convenes, write all the ideas down on a board, as quickly as possible.

Then work through the ideas. Don’t allow the extroverts in the group, or the negative people in the group, to interfere with the idea creation process. So while you’re putting all the ideas on paper, there should be no criticism of ideas. This allows for ideas that might seem silly or ill-conceived at first glance to get their proper consideration. It also gives those people who worry about offering the “perfect” idea a safe space to be more open and creative.

Changing the way you share ideas can have a large impact on your business as your high-potential employees feel increasingly comfortable with these aspects of idea-generation and leadership.


Listen to the Podcast


The Small Business Leadership Academy (SBLA) is an intensive executive education program designed to strengthen the business acumen of small business leaders in Arizona. The program was jointly developed by the W. P. Carey School of Business and the Salt River Project (SRP), the program’s founding sponsor. Other seat sponsors this year include: Arizona Lottery, Blue Cross Blue Shield of Arizona, Hahnco and U.S. Bank. Each week we will bring you a few salient points from each class as well as comments from the professors themselves and the impact the information has had on the students.

For more information about the Small Business Leadership Academy, please visit SBLA’s website.

deal

ASU program helps leaders of small businesses

The fifth annual Small Business Leadership Academy at the W. P. Carey School of Business at ASU helps small business owners and executives learn how to improve efficiency, streamline operations and raise profits.

“Classes are held just one night per week, so they fit right into busy executives’ schedules,” said Dawn Feldman, executive director of the W. P. Carey School of Business Center for Executive and Professional Development, which hosts the program. “Participants not only take away great business knowledge, but also a new support network of peers that will exist long after the program is over.”

Salt River Project (SRP), the program’s founding co-sponsor, offers a number of scholarships to its current suppliers and small business customers.

“The academy offers an outstanding opportunity for small business owners to gain knowledge from highly acclaimed professors and establish lasting relationships with other community small business owners,” said Carrie Young, senior director, corporate operations services for SRP. “The partnership we have with ASU, coupled with the sponsorship and scholarships we offer to the academy, is a natural fit for SRP in supporting economic development within our own community.”

As part of a larger partnership with ASU focused on small business support, JPMorgan Chase is also a top sponsor, providing 15 scholarships to the academy.

“As Arizona’s number one SBA lender, we know how important small businesses are to our economy,” said Joe Stewart, chairman and CEO of JPMorgan Chase in Arizona.

Participants must come from companies that have been in business for at least three years; have annual revenues between $1 million and $10 million; and have fewer than 100 employees.

For more information, call (480) 965-7579, e-mail wpcarey.execed@asu.edu or visit wpcarey.asu.edu/sbla.

speakers

Hear from Top Business Leaders in the New ECP Season

Top leaders from Sam’s Club, Intel, the United Services Automobile Association (USAA), and the Arizona Diamondbacks are among those taking the stage during the current season of the Economic Club of Phoenix speaker series. Every year, Phoenix-area audiences are invited to attend the club’s luncheons and hear from some of the biggest names in the business world.

“We want Valley businesspeople to be able to hear from the heads of major local companies and top executives from international firms,” says W. P. Carey School of Business Dean Robert Mittelstaedt. “This series brings leaders from a variety of industries to talk about what’s happening in their own companies, as well as in the business arena as a whole.”

The Economic Club of Phoenix (ECP) was founded by a group of prominent business executives called the Dean’s Council of 100, in conjunction with the W. P. Carey School of Business at Arizona State University. The club is now the preeminent Arizona forum for the exchange of ideas about business and the economy. Its monthly luncheons and other activities offer business leaders and others opportunities to network and engage.

This season’s speaker lineup (subject to change) is:

Thursday, Nov. 8 – William Toler, chief executive officer, AdvancePierre Foods; Matt Wilson, managing director, Oaktree Capital Management
Wednesday, Jan. 23 – Derrick Hall, president and chief executive officer, Arizona Diamondbacks
Tuesday, Feb. 12, 2013 – Charles Redfield, executive vice president of merchandising, Sam’s Club
Tuesday, March 19 – Doug Davis, vice president and general manager, Arizona fab/sort manufacturing site, Intel Corporation
Thursday, April 25 – Maj. Gen. Josue Robles Jr., president and chief executive officer, United Services Automobile Association (USAA), Dean’s Council of 100 Executive of the Year
Thursday, May 16 – Annual Economic Outlook Luncheon

All luncheons run from 11:30 a.m. to 1:30 p.m. The November event will take place at JW Marriott’s Camelback Inn in Scottsdale, with the rest of the locations still to be announced.

Non-members are welcome for a $75 luncheon fee. Funds in excess of the cost of lunch are used to support scholarships and faculty research at the W. P. Carey School of Business.

For more information about the club or to reserve seats, call (480) 727-0596, e-mail wpcarey.ecp@asu.edu or go to www.econclubphx.org.

education.business

Executives look to broaden knowledge base

The economic downturn created new levels of pressure that businesses never experienced.
Costs had to be contained. Operations had to be streamlined. The workforce had to be as lean and as efficient as possible.

It created pressure and questions for employees, too, as they questioned whether or not they had the skill sets necessary to survive and thrive during any economic crisis.

“We have seen a number of people enter our Ken Blanchard Executive MBA and MBA program as a response to the most recent (economic) downturn,” says Kevin Barksdale, dean of the Ken Blanchard College of Business at Grand Canyon University. “Some have done so because they had become unexpectedly unemployed.  Others as a hedge against that possibility.”

One thing educators say you can bank on, though, is that in the wake of the recession, fewer firms are paying for school.

“The current economic conditions have created more of a ‘hirers’ market and firms are looking for more educated people for their talent pool,” says Bill Berry, dean of the University of Phoenix School of Business. “These firms are paying less for education, but still want a well-educated workforce.”

As a result, Valley educators who cater to executives who aspire to prepare themselves for new levels of leadership have had to learn to become more nimble and adaptable with their curriculum and methods.

“The environment has been so unstable and change has become so constant,” Barksdale says, “that we have had to be willing to move quickly to support our executive students.”

One new program that is catering to the changing demands of the workforce and need for immediacy in the business community is the Master’s in Management (MiM) program at Arizona State University’s W. P. Carey School of Business. The program launches this semester.

(MiM) degrees are shortened programs that cost less, don’t require years of work experience, and provide recent graduates with the business fundamentals they will need to launch themselves into the workforce faster than MBA programs. A survey by the Graduate Management Admission Council (GMAC) reports a 69 percent spike in applications for MiM programs in the United States.

“GMAT takers and MBA applicants are getting younger and have less experience, signaling an increased demand for graduate business training without the work experience typically associated with an MBA,” says Dawn Feldman, executive director of the Center for Executive and Professional Development at the W. P. Carey School of Business. “In addition, employers have been indicating they need employees with strong problem-solving skills and fundamental business knowledge. Our MiM program is just nine months long and helps new grads to complement their existing knowledge from other fields with a basic business foundation. MiM programs already have a long record of success with students and employers in other areas of the world, such as Europe. We’re enthusiastic about the diversity of our incoming class.”

ASU’s MiM program is designed to take aspiring entrepreneurs and students from non-business backgrounds and teach them real-world skills that can immediately be translated and applied to a professional work environment and give them an edge in the competitive job market.

The University of Phoenix also offers its own Master of Management degree.
“Because University of Phoenix adapts our course curriculum based on changing industry trends and skills employers are looking for in their workforce,” Berry says, “the Master of Management degree is best fitting with the stated needs of today’s employers focusing on the skills required to work in a highly collaborative and culturally diverse organization.”

While those entering the workplace are looking for an edge on the competition, developing talent already working in the trenches was something that was a luxury during the economic downturn.

But as the economy transitions from recession to recovery mode, businesses are starting to focus on positioning themselves for future growth and developing internal talent.

“In the last six months we’ve seen a real increase in the number of organizations inquiring about leadership development opportunities for their employees,” Feldman says. “They know that their internal efforts alone aren’t enough. They’re seeking opportunities to develop people by exposing them to the business perspectives and practical knowledge that faculty at the W. P. Carey School of Business are uniquely positioned to share.”

With that in mind, the Center for Executive and Professional Development created the Leadership Development Workshops, a series of five standalone courses on topics that range from driving employee engagement to leading effective team processes. The workshops are designed for managers, project or team leaders, and those looking to advance into management roles. They can also provide a strong foundation for seasoned professionals who have little formal management education.

“W. P. Carey faculty are recognized worldwide for their research and thought leadership,” according to Gerry Keim, chairman of the department of management. “Yet it’s their skill at bringing new trends and best practice discussions into the classroom, focusing on the practical application of concepts in the current business environment, that makes the W. P. Carey School an incredible resource for managers and executives.”

The 2012 workshop topics include Driving Employee Engagement, Effective Negotiations, Inspiration and Motivation as Leadership Tools, Harvesting Knowledge From Frontline Employees, Leading Effective Team Processes. Topics for the 2013 workshops are being developed.

“Whether individuals attend all five or just one workshop, they will come away with new skills and approaches to business practices that will ultimately positively affect their employees and their organization’s bottom line,” Feldman says.

Regardless of what route business executives take to get there — whether it’s a workshop or going back to school to get and MBA — educators say the current focus of executive education is on the practical application of knowledge.

“Executives want learning opportunities that build capabilities and immediately allow participants to do their jobs better,” Feldman says. “Second, technology has given us the opportunity to build engaging learning experiences that connect people regardless of location, so online programs mirror the way work is done in today’s global business environment.”

The availability on online education has made it easier than ever for executives to expand their knowledge base.

“Our eMBA is an accelerated and blended model with face-to-face interaction during three distinct residencies and online learning in between,” Barksdale says. “Our MBA programs are offered face to face — traditional style — and online.”

In addition to the online options available, Barksdale says he has observed another change in executive education.

“I think the biggest shift has been the increased desire on the part of the student to learn more about themselves, their personal styles, and subsequently their leadership skills,” Barksdale acknowledges. “We have found executive learners to be more open than ever to receiving critical feedback with respect to how they lead and what might need to change.”
While executives may see furthering their education as a solo endeavor, educators urge them to seek out the guidance of others before embarking on their journey.

“Seek advice from your personal board of directors,” Barksdale says. “Discuss the reasons you want to go back to school. What would you do with the new knowledge?  Talk to students in the programs you are considering. Ask them questions around the curriculum, the learning environment, and the learning culture. Consider whether the programs you are looking at devote significant time to leadership development or not. This to me is critical in the life of an executive.  Finally, some people might suggest to choose a program that fits your lifestyle.  While this is not bad advice, I might add that if you are looking for the MBA or graduate degree to be a transformational journey, perhaps you might consider a program that intentionally alters your lifestyle. The disruption can be a good thing if you use it to re-focus and re-center your career and life trajectory.”

The W. P. Carey School of Business contributed to this story. To learn more, visit knowwpcarey.com.

LAWLOGIX GROUP LLC

Spirit of Enterprise winner: LawLogix Group

LawLogix Group earned the Gary L. Trujillo Minority Enterprise Award sponsored by Blue Cross Blue Shield of Arizona this year at the W. P. Carey School of Business at Arizona State University’s prestigious Spirit of Enterprise Awards.

In 2000, LawLogix co-founder Brian Taylor was sitting at a Burger King near the consulate in Nogales, Mexico, waiting for a new U.S. visa to be approved. His own immigration experience was time consuming and frustrating, and he knew there had to be a better way for immigrants to share their case information with attorneys.

So LawLogix – a software company focused on creating the easiest-to-use and most secure immigration case management and I-9 compliance software available – was born. Brian and his co-founder Dan Siciliano, a law professor at Stanford, set out to develop a service that would automate what is otherwise a time-, labor-, and paper-intensive hiring and visa application process.

Today, LawLogix software and services are used by more than 155,000 organizations and 4.2 million foreign nationals worldwide. The company’s success  is based on five core principles:

  1. Empower the client. When developing their first product, LawLogix bucked the trend of client-hosted software, giving clients more freedom with a Software as a Service (SaaS) business model.
  2. Innovate by listening. LawLogix listens to customers to better understand their needs, and then develops software to solve their pain points.
  3. Listen to the marketplace. When the new I-9 and E-Verify laws were introduced, LawLogix developed an entirely new SaaS product to make I-9 compliance easy for companies.
  4. Invest in employees’ career growth. LawLogix provides specialized ongoing education and training for its employees and promotes from within.
  5. Lead the way. Through webinars and speaking engagements, LawLogix offers its lessons learned and expertise to the immigration services community.

Name of business: LawLogix Group, LLC

Nature of business: I-9, E-Verify, and immigration case management software

Address: 3111 N. Central Ave. Phoenix, Arizona 85012

Web: LawLogix.com

Founded: 2000

Number of employees: 52

DAPHENE'S HEAD COVERS

Spirit of Enterprise winner: Daphne’s Headcovers

Daphne’s Headcovers earned the The Spirit of Enterprise Overcoming Adversity Award this year at the W. P. Carey School of Business at Arizona State University’s prestigious Spirit of Enterprise Awards.

When Jane Spicer was 10 years old she told her mother that she wanted a sailboat. Her mother told her she had to earn the money for it. Jane did: she sewed a bagful of stuffed toys to sell to friends and neighbors. At the Park & Swap she made $200, and has been hooked on entrepreneurship ever since.

“When I was 16, a customer suggested that I make animal golf club covers. It was really hard to break into that market, but my mom, Daphne, told me: Be tenacious.” Jane taught herself how to get past the attendants and assistants at golf resorts to get to the buyers. It worked: sales grew 400 percent in one quarter, her animal headcovers becoming the best selling item in golf after Tiger Woods started using one.

Not that it was always easy: When the recession hit in early 2008, Jane said that she was paralyzed with fear. “I stopped taking a salary. I sold everything at home that wasn’t nailed down. But I never missed payroll and I didn’t lay off a single key employee. By 2011 we were profitable again.”

Jane and her company do a lot to give back to the community that, as Jane put it, built Daphne’s Headcovers. The company sells a special Weimaraner headcover and donates a portion of the proceeds to Gabriel’s Angels, which provides pet therapy to abused and at-risk kids. They also partner with charities globally to help make a difference and now Jane allows budding entrepreneurs to use her facility and equipment.

Through all of the ups and downs, Jane has lived out the directive her mother gave her, to be tenacious, and Daphne’s core value as well: to do good while doing well.

Name of business: Daphne’s Headcovers

Nature of business: Manufacturer of animal/novelty golf club covers

Address: 337 W. Melinda Lane Phoenix, Arizona 85027

Web: DaphnesHeadcovers.com

Founded: 1978

Number of employees: 19

Small Business Leadership Academy

Small Business Leadership Academy: The Importance Of Team Dynamics

One rarely-recognized aspect of a small business that has a huge impact on the success of that business is team building. Knowing more about how teams function and what can be done to strengthen the team was the topic in this week’s Small Business Leadership Academy, led by Ruth Barratt, clinical assistant professor of management at the W. P. Carey School of Business.

“One of the elements of building a high-performance team is spending the time outside of work on another project or social activity,” comments Barratt. While budgets have been cut for many company-funded outside activities, there are ways to get creative and still accomplish this important task. One of this year’s attendees spoke about how her and her co-workers volunteer at a food bank. “It didn’t really cost the company any money, but the employees are already very excited to do it again,” Barratt says.

Any team, regardless of its size, goes through the same five stages: forming, storming, norming, performing, and adjourning. With each stage, there are certain emotions that team members will feel while they “find their place.”

  • Forming: Excitement, anticipation, anxiety, optimism
  • Storming: Reality sets in, frustration, dissatisfaction, adjustment anxiety
  • Norming: Shared goals, team cohesion, coping, acceptance
  • Performing: Teamwork, cohesiveness, leadership, performance
  • Adjourning: Separation anxiety, crisis, dissatisfaction, negativity

“Once you reach the performing stage, there is still a requirement to keep nurturing the idea of goals and keep everyone on the same path,” Barratt says. “When something goes well, celebrate that fact. When something goes wrong, have confidence in the team to sit down and follow up on it.”

Nurturing the team as a whole will result in a more productive and ultimately more successful team. Next week, attendees will discuss brainstorming and how to help employees to reach their full potential.


Listen to the Podcast:
The Importance of Team Dynamics


The Small Business Leadership Academy (SBLA) is an intensive executive education program designed to strengthen the business acumen of small business leaders in Arizona. The program was jointly developed by the W. P. Carey School of Business and the Salt River Project (SRP), the program’s founding sponsor. Other seat sponsors this year include: Arizona Lottery, Blue Cross Blue Shield of Arizona, Hahnco and U.S. Bank. Each week we will bring you a few salient points from each class as well as comments from the professors themselves and the impact the information has had on the students.

For more information about the Small Business Leadership Academy, please visit SBLA’s website.

 

GLOBALMED

Spirit of Enterprise winner: GlobalMed

GlobalMed earned the U.S. Bank Emerging Entrepreneur Award this year at the W. P. Carey School of Business at Arizona State University’s prestigious Spirit of Enterprise Awards.

In 2002, when Joel Barthelemy started the business that would become GlobalMed, he made imaging equipment for quality assurance in the semiconductor industry. “We did about $1 million a year in sales,” Joel recounted. “Just enough to keep the doors open.”

The company’s very fortuitous move into telemedicine came at the suggestion of a Tulane University pathologist. Joel took his advice and in April, 2005, GlobalMed delivered its first system: cameras and software for the first remote pathology consult, at Tulane.

Today, GlobalMed continues to develop the software and manufacture the equipment that makes telemedicine possible. “To date, we have installed well over 2,000 telemedicine systems in 55 countries,” Joel explained. “We provide patients with access to healthcare wherever there’s an internet connection.” He added, “We’re changing the healthcare system in the U.S. and globally.”

A story illustrates that fact quite poignantly: a woman in Minnesota was fishing with her kids and grandkids when she had a stroke. They rushed her to the community hospital, but it didn’t have the resources to meet her needs. So she was taken via air ambulance to the nearest stroke specialist, but by then she already had permanent paralysis and dementia.

In contrast, when the mayor of rural Copper Queen, Arizona had a stroke and was similarly rushed to the community hospital (which also didn’t have an in-house stroke specialist, but did have a GlobalMed system) he was seen within minutes by a specialist at the Mayo Clinic in Scottsdale. The mayor has fully recovered.

Name of business: GlobalMed

Nature of business: Develops and manufactures healthcare IT systems

Address: 15020 N. 74th Street Scottsdale, Arizona 85260

Web: GlobalMed.com

Founded: 2002

Number of employees: 107

TOTAL TRANSIT

Spirit of Enterprise winner: Total Transit

Total Transit earned the The Spirit of Enterprise Innovation in Entrepreneurship Award this year at the W. P. Carey School of Business at Arizona State University’s prestigious Spirit of Enterprise Awards.

When Total Transit CEO Craig Hughes bought a small airport cab company in 1984, he had only ridden in a cab twice, never in Phoenix. Needless to say, he had to learn on his feet, and learn quickly.

He did, and today Total Transit is a cab company unlike any other. For starters, the company manages both public and private transportation services, including Discount Cab, express route and paratransit service for Valley Metro, and service for many of the largest Medicaid and Medicare providers in the region. It’s a model Total Transit hopes to see spread. “We are truly committed to integrating and managing public and private transportation services in a new way. Our goal is to create the most efficient, cost-effective, and environmentally responsible transportation network possible.”

One of Total Transit’s competitive differentiators is its transportation management system. “We have seven IT developers writing the software that keeps us competitive.” In the public arena, where governments are trying to do more with less, “efficient design, effective integration, and responsible management” are critical to maximizing taxpayers’ investments.

In an environment in which many transportation services companies are struggling, Total Transit has flourished, growing 25-35 percent annually over the last few years and set to grow more than 40 percent this year. That growth comes in part from the company’s commitment to its strategic plans, and in part from its stand-out customer service. “Phoenix is a unique market because customers choose who to call. People call us specifically because they know our high standards.”

Name of business: Total Transit, Inc.

Nature of business: Transportation services

Address: 4600 W. Camelback Rd. Glendale, AZ 85301

Web: TotalTransit.com

Founded: 1984

Number of employees: 300

 

180 DEGREES AUOTOMOTIVE

Spirit of Enterprise winner: 180 Degrees Automotive

180 Degrees Automotive earned the Hahnco Companies Special Achievement in Entrepreneurship Award this year at the W. P. Carey School of Business at Arizona State University’s prestigious Spirit of Enterprise Awards.

When Sarah “Bogi” Lateiner decided to open her own auto repair shop, she “had no business plan, no money.” What Bogi did have was a passion and a talent for fixing cars and taking care of people.

With a focus on women and minorities – customers who have traditionally been neglected or exploited by the auto repair industry and feel particularly intimidated by it – 180 Degrees Automotive grew rapidly, doubling each year after the first. “I was booked out two weeks in advance, but I knew that growth was not sustainable, that I was succeeding despite myself,” Bogi explained.

So she decided to learn how to be a business owner. “You name it, I did it – business books, training conferences, success coaches – but I didn’t like what I was learning. It was all about focusing on financials, structure, systems. I was scared that it would take away my passion and creativity.”

Despite her fears, Bogi stuck with it and has discovered that focusing on the numbers and the systems behind her business actually allows her more time to do the things she’s really passionate about. That includes moving 180 Degrees Automotive into a new building, which she owns, teaching car care classes, and co-hosting a national all-women car repair TV show.

The lasting success of 180 Degrees Automotive doesn’t come from the fact that the company focuses on serving women, or the fact that most of its mechanics and service advisors are women. “Being women in this industry may help to bring people in the door, but that’s not what keeps them here,” Bogi explained. “We still have to provide excellent service and go above and beyond to earn, and keep, the trust of our customers.”

Name of business: 180 Degrees Automotive, Inc.

Nature of business: Automotive repair

Address: 545 W. Mariposa St. Phoenix, AZ 85013

Web: 180auto.com

Founded: 2006

Number of employees: 6

education.business

Penley Appointed President of Thunderbird

The Board of Trustees announced that Larry E. Penley, Ph.D., has been elected president and chief academic officer of Thunderbird School of Global Management effective Thursday, November 1, 2012. The appointment  follows a search that attracted top-tier candidates from both business and academic organizations.

Dr. Penley’s record of results over a distinguished 35-year career makes him a great leader for Thunderbird. As president of Colorado State University, he reversed declining enrollment and oversaw the doubling of fundraising. As dean of the W. P. Carey School of Business at Arizona State University, Dr. Penley led the creation of a strategic plan that produced a top 25 ranking among public MBA programs.

Dr. Penley also applied his learnings for diplomacy and management skills as chairman of The Association to Advance Collegiate Schools of Business (AACSB), a world leader in accreditation services. INROADS Arizona and the Greater Phoenix Economic Council have honored Dr. Penley for his service.

As a leader, Dr. Penley’s extensive overseas experience gives him great passion for Thunderbird’s global mission. He has lectured on four continents, speaks Spanish, and has held faculty and administrative roles in Mexico and Venezuela. While at ASU, he also oversaw the launch of successful MBA programs in Chinaand Mexico.

“Thunderbird is very fortunate to have Dr. Penley at the helm,” said Ann Iverson, Chair of Thunderbird’s Board of Trustees. “He is a lifelong learner who embraces innovation, fosters collaboration, and welcomes diverse viewpoints.”

photo

Top Arizona Businesses Win Spirit of Enterprise Awards

As Americans talk about how to improve our economy, we keep hearing how small businesses and entrepreneurs have to lead the way in the recovery. Today, the W. P. Carey School of Business at Arizona State University honored five of the state’s best businesses for creating jobs, contributing to charities and introducing innovation. They’re this year’s winners of the prestigious Spirit of Enterprise Awards.

“What is striking about this year’s group of finalists and winners is that these entrepreneurs have chosen incredibly difficult industries and excelled where others have failed,” says Gary Naumann, director of the Spirit of Enterprise Center at the W. P. Carey School of Business. “They are recognized today because of their hard work, dedication to the community, and great entrepreneurial stories.”

Hundreds of Valley business and community leaders attended today’s awards luncheon at the JW Marriott Desert Ridge Resort & Spa in Phoenix, where the winners were announced. The finalists’ impressive and often emotional stories were shown on video, as the firms were recognized for ethics, energy and excellence in entrepreneurship.

The 16th annual Spirit of Enterprise Award winners are:

180 Degrees Automotive – The Hahnco Companies Special Achievement in Entrepreneurship Award. This woman-owned, full-service auto repair center caters especially to women and minorities. The company has moved to bigger locations four times in six years, provides free car classes to women, hosts an art exhibit, gives free rides home, and leaves a gift in each car with each visit. It also makes a notable commitment to “green” business practices and community causes.

Daphne’s Headcovers – The Spirit of Enterprise Overcoming Adversity Award. This novelty golf-club cover business was started when the owner was just 16 years old, and it had to address major growth issues when business shot up 400 percent in just one quarter. Daphne’s now serves fine resorts and golf shops in 75 countries, despite the recession that’s hit the golf industry hard. The company has covers in the bags of more than 200 touring pro golfers and offers customers a lifetime guarantee to repair or replace its products for free.

GlobalMed – U.S. Bank Emerging Entrepreneur Award. This booming company offers telemedicine solutions like innovative cameras, medical devices and software, so health practitioners can provide care to remote patients via telecommunications or satellite. GlobalMed made Inc. Magazine’s 2012 list of the nation’s 500 fastest-growing private companies. It also made large donations to charity, including the Marine Corps Toys for Tots Program, the Strike Out Child Abuse Walk and the Migrant Clinicians Network.

LawLogix Group – Gary L. Trujillo Minority Enterprise Award sponsored by Blue Cross Blue Shield of Arizona. This fast-growing provider of immigration, I-9 and E-Verify software boasts a 96.9-percent client-retention rate, low 3-percent employee turnover, and more than 155,000 organizations as customers, including Fortune 500 companies. The minority-owned business also has a nonprofit practice that offers tools to hundreds of nonprofit and community-based organizations, so they can provide some of the same information as expensive immigration law firms.

Total Transit – The Spirit of Enterprise Innovation in Entrepreneurship Award. This comprehensive mobility management company runs the Discount Cab brand throughout Arizona. Total Transit has the largest fleet of environmentally friendly Prius cabs in North America and also provides innovative Dial-a-Ride services for Valley Metro and many large Medicaid and Medicare providers. It also introduced a Free Ride Back program to keep drunk drivers off our roads, by offering paying customers a free ride back to their car the next day. The company donates to the community through its charitable Total Transit Foundation.

The other Spirit of Enterprise Award finalists this year were CyberMark International, Hard Dollar, NJOY Electronic Cigarettes, Optimal Performance Training and Real Property Management East Valley.

These awards are just one focus of the Spirit of Enterprise Center, which helps hundreds of businesses each year. The center offers companies the chance to recruit and meet with top student talent, while also allowing students to get hands-on business experience. One key program, Student Teams for Entrepreneurship Projects (STEP), matches teams of W. P. Carey School of Business students with Valley companies to help tackle real-world challenges and opportunities. Companies can also use the center to access other ASU business resources.

The center is self-funded and utilizes community sponsorships and volunteers to sustain its activities. For more information, visit www.spiritofenterprise.org.

housing.prices

Phoenix-area Home Prices Stable

Phoenix-area home prices stabilized from August to September, but we’re now seeing some other types of movement in the market. A new report from the W. P. Carey School of Business at Arizona State University shows the following numbers for Maricopa and Pinal counties, as of September:

The median single-family home price stayed at $150,000 from August to September, but prices are expected to start rising again this fall.
The overall supply of houses for sale in the market is finally going up – already 24 percent over just the past three months.
Big investors are showing less interest in the market, as the bargains here become tougher to find and some other cities’ housing markets become more attractive.

Though the median single-family home price in the Phoenix area remained at $150,000 from August to September, it is still up more than 27 percent from last year. The median last September was at a low of just $118,000, but it has risen sharply since then. Realtors will note the average price per square foot went up 23.3 percent just from last September to this September, and the report’s author, Mike Orr, expects the upward price movement to continue this fall.

“Prices are firming here as we enter the season when snowbirds return to the Valley,” says Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “Now that cooler weather has returned and the normal summer lull is over, prices are resuming their advance with greater speed, though on weaker sales volumes.”

The amount of sales activity has been down, with many homeowners reluctant to sell at low prices. Specifically, single-family home sales were down more than 12 percent this September from last September. However, the situation may change as prices rise, attracting more sellers. Over the last three months, housing supply has already gone up 24 percent.

“Though supply was still down 15 percent from last September, it increased 9 percent just from this August to this September,” explains Orr. “We’re now in a strong growing trend. For example, the number of homes for sale under $150,000 with no existing contract is up to 35 days’ worth, from just 15 days’ worth in May.”

In spite of this, the lower price range remains very unbalanced, with more buyers than sellers. Ordinary home buyers who need financing face tough competition in the form of both multiple bids and investors’ all-cash offers, which are typically more attractive to sellers. At the lower end of the spectrum — homes priced under $150,000 – 50 percent of the transactions are still all-cash. However, the frenzy of investors in the market is beginning to slow, moving on a downward trend.

“The percentage of homes acquired by investors rose significantly between 2011 and 2012, but declined from August to September of this year,” says Orr. “Investor purchases are down from the peak in July and August and will probably decline further.”

Orr also has some news for those who worry about another bursting bubble in the market.

“This market is relatively well behaved,” he says. “Investors are risking their own money, rather than borrowed funds, so risk is being more carefully managed than in the previous boom. Also, ordinary homebuyers drawn into the market now are less likely to regret their actions than those who did so in 2005 and 2006.”

Meantime, foreclosures continue their downward trend in the Phoenix market. Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – went down 18 percent from August to September. Completed foreclosures dropped 31 percent at the same time. Short sales are also becoming less common.

“Lenders are aware of how much prices have increased for the post-foreclosure homes they have sold recently, so they have been requiring higher prices for short sales before they will agree to them,” says Orr.

The most expensive types of transactions — new-home sales and normal resales – are on the rise. In fact, the number of normal single-family home resales jumped 76 percent from last September to this September. At the same time, the number of investor flips, short sales, and sales of bank- and government-owned homes are all falling, and bargains become tougher to find. Orr says the gap between the pricing of “distressed” and “non-distressed” properties has been closing.

Most areas of the Valley are showing double-digit percentage increases in price year over year. However, those with mostly expensive homes or active adult communities are showing only relatively modest annual gains.

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/FullReport201210.pdf. More analysis is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.

Small Business Leadership Academy

Small Business Leadership Academy: Match Your Negotiating Style To Your Objective

“Playing hardball” is a phrase often used to describe negotiations. The point is the deal — there’s a winner and a loser — and the toughest side prevails.

Hardball is a good game plan under some circumstances — if it’s a one-time opportunity, for example. But what if the client or customer with whom you are negotiating has potential to bring you business long-term? In that situation, driving hard might not be your best approach.

Alan Goldman, a management professor of practice at the W. P. Carey School of Business, is teaching the negotiations classes in the 2012 Small Business Leadership Academy (SBLA) presented by W. P. Carey’s Center for Executive and Professional Development. Drawing lessons from the Harvard Negotiation Project, Goldman is helping students realize a more sophisticated approach to negotiating that goes beyond winner-take-all.

Key to the Harvard system is the theory that there are two broad approaches to negotiating: Theory X and Theory Y.

Theory X negotiators are the hardball players. The process is adversarial and focused on the deal and the bottom line. A Theory X negotiator dominates by wielding power, exploiting weakness and elevating the rational over emotions.

Theory Y negotiators seek to build fruitful relationships. For them, the objective is agreement, so they work on establishing trust. They open with small talk. They’re empathetic, flexible and willing to yield for mutual benefit.

Each style has its place, says Goldman. If the objective is a one-time transaction, then driving Theory X-style for the best deal obtainable, no matter how hard-nosed you have to be, may be the best approach.

But sometimes the greater advantage — and profit — accrues across numbers of transactions. In that case you’d be doing yourself a favor to employ the tactics of a Theory Y negotiator.

Assigned reading in Goldman’s class is one of the classics of negotiating training, the bestselling “Getting to Yes: Negotiating Agreement Without Giving In.” Its lessons are valuable in your personal life as well as business.


Listen to the Podcast:
Match Your Negotiating Style To Your Objective


The Small Business Leadership Academy (SBLA) is an intensive executive education program designed to strengthen the business acumen of small business leaders in Arizona. The program was jointly developed by the W. P. Carey School of Business and the Salt River Project (SRP), the program’s founding sponsor. Other seat sponsors this year include: Arizona Lottery, Blue Cross Blue Shield of Arizona, Hahnco and U.S. Bank. Each week we will bring you a few salient points from each class as well as comments from the professors themselves and the impact the information has had on the students.

For more information about the Small Business Leadership Academy, please visit SBLA’s website.

Small Business Leadership Academy

Strategic Procurement: Developing Supply Strategy

“Knowledge is power,” says Joseph Carter, the Avnet Professor of Supply Chain Management at the W. P. Carey School of Business, and leader of the Strategic Procurement section of the 2012 Small Business Leadership Academy.

For a small company looking to bring on a large company as a client, or keep a large company as a client, cost can be the main component of the relationship. “Price is only one part of the total cost,” Carter remarks. “The four general types of supply costs include purchase price, transaction costs, administrative costs and production costs. “

The large company will first define its category, putting information together, including the strategy for that category. Strategy can include searching out the lowest cost, the quickest response time or the least amount of risk, which relates to the external market complexity. This information should be available at the drop of a hat for the company.

One place the large company will try to squeeze their suppliers is by negotiating a lower purchase price. The purchase price is always important, but it isn’t as simple as just one number. The purchase price includes four distinct factors: profit, semi-variable costs, variable costs and fixed costs.

The large company knows that a very small percentage of its suppliers garner the majority of the purchase dollars. Purchases should be grouped into imperative categories with the understanding that 80 percent of dollars spent will be on 20 percent of the categories.

What does this all mean to the small business owner? Once they understand where they stand as a supplier, they can better understand the bidding processes that they must go through, as well as the pressures they will face. For the small business owner, knowledge is power.


Listen to the podcast.


The Small Business Leadership Academy (SBLA) is an intensive executive education program designed to strengthen the business acumen of small business leaders in Arizona. The program was jointly developed by the W. P. Carey School of Business and the Salt River Project (SRP), the program’s founding sponsor. Other seat sponsors this year include: Arizona Lottery, Blue Cross Blue Shield of Arizona, Hahnco and U.S. Bank. Each week we will bring you a few salient points from each class as well as comments from the professors themselves and the impact the information has had on the students.

For more information about strategic procurement and/or the Small Business Leadership Academy, please visit SBLA’s website.

87693507

W. P. Carey School Honors Top Business Leaders

Three top business leaders will be honored for their contributions to our economy, when they are inducted into the W. P. Carey School of Business Homecoming Hall of Fame this month. The honorees are accomplished executives in the fields of wireless technologies, cruises and nonprofits.

On Oct. 25, the new inductees will join previous honorees from such diverse organizations as the American Red Cross, Motorola, the U.S. Air Force, Wells Fargo Bank, XM Satellite Radio and the Arizona Diamondbacks. This will be the 35th annual event to honor top business alumni from Arizona State University.

“All of these inductees have risen to the top of their industries, demonstrating leadership and achievement in their professions, the community and the business school,” says Robert Mittelstaedt, dean of the W. P. Carey School of Business. “They serve as a clear example to our students that you can reach your goals in any field with a high-quality education, commitment and hard work.”

This year’s honorees are:

William Keitel, executive vice president and chief financial officer of Qualcomm Incorporated – Keitel joined Qualcomm; a leader in cutting-edge wireless technologies, products and services; in 1996. The multibillion-dollar company’s portfolio includes thousands of patents and operations in more than 30 countries. Prior to Qualcomm, Keitel was an executive at telecomm-equipment manufacturer Nortel and PepsiCo. He has won numerous industry awards, including the title of Best CFO in his field from Institutional Investor magazine. He earned his bachelor’s degree in business administration at the University of Wisconsin and his MBA at ASU.

Joseph Watters, founding chairman, Oceania Cruises – Watters has been a key player in the cruise industry for more than 30 years, including his creation of premium cruise line Oceania in 2002. He previously served as president of Crystal Cruises, Royal Viking Line and Princess Cruises, during which time the line’s relationship with the television show “The Love Boat” began. Watters also helped create the China Cruise Center to promote China as a worldwide cruise destination. He has been involved with a number of charities, including the Special Olympics, and is currently on the board of MarineMax, a New York Stock Exchange-listed company. He received his bachelor’s degree in advertising from ASU.

Diana Yazzie-Devine, president and chief executive officer of Native American Connections – Yazzie-Devine has headed up the nonprofit Native American Connections for more than 30 years. The 501(c)3 corporation provides behavioral health services, affordable housing and community-based economic development opportunities to Native Americans in the Phoenix area and tribal communities. It operates 18 service sites, including a one-stop community services center, and serves more than 5,000 individuals and families each year. Yazzie-Devine has won several business awards from organizations, including Valley Leadership and the YWCA. She earned her bachelor’s degree in human relations from Ottawa University and her MBA from ASU.

More than 200 alumni, business leaders and students are expected to attend the Homecoming Hall of Fame event on Thursday, Oct. 25 at the JW Marriott Desert Ridge Resort & Spa in Phoenix. A reception starts at 5:30 p.m., followed by the awards ceremony.

Space is limited, and advanced registration is required. For more information on tickets or sponsorship, go to www.wpcarey.asu.edu/homecoming or call (480) 727-0596.

Small Business Leadership Academy

Small Business Leadership Academy: Understanding Strategic Procurement Practices

Strategic Procurement is a comprehensive, systematic business process to assure that an organization acquires the correct goods and services at the lowest total cost over the long-term of the business operation.

Small- and medium-sized companies can benefit from understanding how large companies approach their suppliers. Those smaller companies need to understand and be able to succinctly describe their value proposition in order to keep the business they have and win new business. In light of the continual push for the large company to lower their own costs, smaller companies may need to get creative to find ways to stay competitive.

“Today, the creation of value often requires careful coordination of activities across the boundaries between functions, business units and firms,” says Joseph Carter, the Avnet Professor of Supply Chain Management at the W. P. Carey School of Business, and leader of the Strategic Procurement section of the 2012 Small Business Leadership Academy.

Suppliers can get stuck concentrating on the day-to-day operations of their companies, ignoring or avoiding the important work of optimizing their existing relationships. It’s while nurturing those relationships that suppliers can discover ways to increase their value to the customer.

This means that just having the lowest price doesn’t always guarantee a contract. A lower price combined with a longer repayment period, plus a quicker fulfillment schedule, could push one company ahead of another. Determining what their value proposition is can be one of the most challenging parts of an RFP process for a small business owner.

Conversely, the large company has decisions to make as well. How many suppliers should they have for any one part? “Rationalize, rationalize, rationalize,” says Carter. “Rationalization doesn’t necessarily mean ‘fewer’; it just means being able to explain why you have the number of suppliers that you have, whether that ends up being more or less than what you have now.”

The supplier/client relationship is ever-evolving. Both parties are looking to lower costs and maximize profits while maintaining a strong and synergistic business relationship.


Listen to the podcast.


The Small Business Leadership Academy (SBLA) is an intensive executive education program designed to strengthen the business acumen of small business leaders in Arizona. The program was jointly developed by the W. P. Carey School of Business and the Salt River Project (SRP), the program’s founding sponsor. Other seat sponsors this year include: Arizona Lottery, Blue Cross Blue Shield of Arizona, Hahnco and U.S. Bank. Each week we will bring you a few salient points from each class as well as comments from the professors themselves and the impact the information has had on the students.

For more information about the Small Business Leadership Academy, please visit SBLA’s website.

95770266

Phoenix-area Home Prices, Supply Slowly Inching Up

Both Phoenix-area home prices and the number of homes available for sale are slowly inching up. A new report from the W. P. Carey School of Business at Arizona State University reveals the numbers for Maricopa and Pinal Counties, as of August:

> The median single-family home price went up from $149,000 in July to $150,000 in August — about 1 percent.
> The median price is up by more than one-third (about 34 percent) from last August.
Supply of available homes for sale finally went slightly up in most areas of the Valley, but overall, low supply continues to limit market activity.

“Overall prices reached a low point in September 2011 and have risen sharply since then,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “We’re experiencing a normal summer slowdown, and I expect prices to continue their advance as we move into cooler months.”

The median single-family home price in the Phoenix area went up about 0.7 percent, from $149,000 in July to $150,000 in August. The current median is 33.7 percent higher than last August, when it was $112,205. Realtors will also note the average price per square foot is up 24.6 percent from last August.

Sales activity has been relatively slow, due to the traditional summer lull in the market and the limited number of homes for sale in the area. Still, there was a small bump up in available supply.

“Supply increased 3 percent from July to August, but the inventory of homes for sale remains well below the average for the last 10 years,” says Orr. “The number of active single-family homes without an existing contract was just over 10,000 for the greater Phoenix area as of Sept. 1, and 77 percent of those homes were priced above $150,000. That inventory should last only about 27 days. At least it’s up from the low of just 15 days of inventory in May.”

Average buyers have to compete for relatively few homes priced under $250,000. They face multiple bids, including those from investors who can offer all cash and no appraisal required. The situation is moderately improving, though. Orr says, as prices go up, more people are becoming willing to sell their homes. He believes supply recently moved higher in about 80 percent of the Valley, especially the outlying areas.

“August home sales were up 3.6 percent from July,” says Orr. “However, activity was still down 9.2 percent from August of last year. The reduction is primarily due to a huge decline in distressed sales: short sales and sales of homes that recently went through a foreclosure. Also, the number of bank-owned homes sold in August was down a huge 78 percent from last August.”

Foreclosure starts – homeowners receiving notice their lenders may foreclose in 90 days – went down 2.5 percent from July to August. Foreclosure starts are down almost 38 percent from last August. Still, Orr says this number is about 2.3 times normal for a typical month in the Valley. The number of completed foreclosures in August was down 22 percent from last August.

Investors continue to play a key role in the Phoenix area housing market. Almost 36 percent of the homes sold in Maricopa County in August went to investors. That’s up from 28 percent last August. More than half of the homes sold this August for $150,000 or less went to all-cash buyers.

“Some large investment companies have been buying homes in bulk from other investment companies,” explains Orr. “They are clearly frustrated by the difficulty of acquiring large numbers of homes through normal channels. Most of the properties are being used as rentals for tenants who have lost their former homes to foreclosure or through a short sale. In greater Phoenix, we have never seen so many single-family homes used as rental accommodation, and it will be interesting to see how elastic the demand is over the coming year.”

Many average buyers are turning to new-home sales, given the difficulty of getting a bargain resale. New-home sales went up 55 percent from August to August, and some developers are starting to cap sales to conserve lots. The number of active subdivisions is down 18 percent since the beginning of the year, and about 63 percent of those currently active are expected to sell out within 12 months.

Orr’s full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed at http://wpcarey.asu.edu/finance/real-estate/upload/FullReport201209.pdf. More analysis is also available from knowWPCarey, the business school’s online resource and newsletter, at http://knowwpcarey.com/index.cfm?cid=13.