Haas NewsWire

Haas NewsWire, October 11, 2004

Real Estate & Economics Symposium Explores the Opportunities in Any Market-Slumping or Soaring

Ken Rosen

Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics

As the Bay Area single-family housing market soars and commercial real estate slumps, the 27th annual Real Estate & Economics Symposium will focus on opportunities in the Bay Area and beyond in its review of current trends and critical issues in real estate. The conference will take place on Monday, November 22 from 8:00 a.m. to 5:00 p.m. at San Francisco's Marriott Hotel.

The conference is sponsored by the Fisher Center for Real Estate & Urban Economics in cooperation with the Haas School of Business and Berkeley Real Estate Associates.

Three distinguished speakers will be featured this year: Kenneth Rosen, chairman of the Fisher Center for Real Estate & Urban Economics and California State Professor of Real Estate, who returns to the symposium to provide his outlook on the economy and the US real estate markets; Tony Downs, senior fellow at the Brookings Institution, who will share humorous insights as the self-proclaimed "World's Greatest Authority"; and San Francisco Mayor Gavin Newsom, who will update participants on his vision for San Francisco's economic growth.

The conference will provide an overview of real estate and financial markets with more than a dozen leading business and public-sector decision-makers, including Laurence Baer, executive vice president and COO of the San Francisco Giants, Bruce Karatz, chairman and CEO of KB Home, and Gale C. Scott, managing director of Standard & Poors Structured Finance Ratings. Time will be included for speakers to respond to questions from the audience, allowing for candid exchange with these prominent industry authorities.

The Real Estate & Economics Symposium consistently attracts large audiences, so early registration is recommended. For more information, or to register, contact Zee Zeleski at zeleski@haas.berkeley.edu or at 510-643-6109 or visit http://www.haas.berkeley.edu/realestate.

Clausen Center Presents First Microfinance Conference, November 19

The Haas School's Clausen Center for International Business & Policy will hold its first-ever microfinance conference, Friday, November 19, in the Lipman Room in Barrows Hall at UC Berkeley.

Keynote speakers for the Clausen Center conference are: Muhammad Yunus, founder and managing director of the Grameen Bank, which 30 years ago began providing small loans, not available from traditional banks, to people in Bangladesh; and John Hatch, pioneer of the "Village Banking" methodology and founder of the Foundation for International Community Assistance, with programs in 23 countries and nearly one million low-income families assisted since its inception in 1984.

"Previously the province of government grants and philanthropists, small loans are increasingly being financed by banks that see the value in helping poor people create sustainable revenue sources," says conference organizer Sebastian Teunissen, executive director of the Clausen Center. "Microfinance is gaining prominence because a lot of exciting things are happening in this area, including the securitization of loans. The aim of our conference is to make people aware of the effectiveness of microfinance and, in particular to encourage financial institutions to look at microfinance as a source of profitable investment." The conference coincides with the November 18 launch of "The International Year of Microcredit" declared by the UN General Assembly.

The conference will also feature opening remarks from Dean Tom Campbell. Panelists tentatively include Janet McKinley, chair of Oxfam America, Jonathan C. Lewis, chair and CEO of MicroCredit Enterprises, Inc., and Asad Mahmood, director of Community Development Group and general manager of the Deutsche Bank Microcredit Fund.

"Very, very poor people historically have had no access to capital, and so they couldn't start a business," Teunissen says. "By receiving loans in small amounts, they are able to improve their standard of living, pay back the loan, qualify for greater loans, and continue to improve their circumstances." Teunissen notes that all proceeds above conference costs will go to microfinancing institutions.

For more information on the microfinance conference, or to register, visit http://www.haas.berkeley.edu/HaasGlobal/microfinance04.html.

Three Industry Leaders Join the Haas School's Advisory Board

Three prominent business leaders have been appointed to the Haas School Advisory Board over the summer, according to Dean Tom Campbell.

The new members are Sandy Alderson, executive vice president of Baseball Operations for Major League Baseball; Jenny Ming, president of the Old Navy Division at Gap, Inc.; and Tom Siebel, founder, chairman, and president of Siebel Systems, Inc.

Haas School Advisory Board members advise and support the dean in his efforts to attain the highest level of quality in research, education, and outreach at the Haas School. The current chair of the Advisory Board is W. Howard Lester, chairman of Williams-Sonoma, Inc. The full membership roster of the Advisory Board is available at: http://haas.berkeley.edu/news/advisoryboard.htm


New Assistant Professor Studies How Feelings Affect Buying Behavior

The role emotions play in consumers' buying decisions may be complex, but Assistant Professor Eduardo Andrade is using the Haas School's new XLab (Experimental Social Sciences Laboratory) to conduct experiments to discover the precise combinations of mood and motivation that will get people to spend money.

According to Andrade, an assistant professor new to the Haas Marketing Group, people may turn to spending and consumption to alleviate negative feelings, a phenomenon known as mood regulation. But bad feelings can make people feel negative about going shopping, too, an effect known as mood coloring. "My question is what can we predict about consumer choices when we evaluate these two mechanisms together?" says Andrade.

In his experiments, Andrade exposed subjects to conditions that briefly provoked either sad, happy, or neutral reactions. He then asked them to rate their interest in trying a product in a supermarket promotion. When the product was billed as "mood lifting," sad people were more willing to try it than neutral people due to the mood regulation effect. When the product was presented without this spin, however, sad people were less likely to try it due to mood coloring.

Positive emotions can also result in differing consumption patterns. Andrade has observed, for example, that people in a happy mood tend to eat more chocolate than those in a neutral mood -- mainly because they're so up that they're not thinking about the negative consequences. But when they are reminded of chocolate's high fat content, the effect reverses. "People in a good mood have more to lose," he says. "As a result, the prospect of getting into a bad mood about their eating overrides any positive evaluation of the product. In other words, the 'regulation' mechanism prevails over the 'coloring' mechanism."

Andrade's studies imply that ad campaigns designed to manipulate consumers' feelings can sometimes lead to unexpected outcomes - something marketers need to keep in mind when planning promotions, says Andrade. Fundraising advertisements to alleviate world hunger, for example, play on people's guilt with graphic portrayals of poverty to spur them to do what will make them feel better: give money. But the mood-lifting benefits of spending can be neutralized if people's negative filters kick in, Andrade warns. "People may start thinking about problems associated with making donations, such as the possibility of other organizations soliciting them for money," he says. He adds, marketers must recognize that the interplay of feelings and buying behavior is more complicated than it may first appear.

Andrade holds a Ph.D. in marketing from the University of Florida, an M.Sc. in marketing from the École des HEC - University of Montreal, and an undergraduate business degree from the Universidade Federal de Santa Catarina in Brazil.

Full-time MBA Program Ranked 17th by Business Week

The Haas School's Full-time MBA Program was rated as the 17th best in the country by Business Week in its 2004 ranking of business school MBA programs, which was released on October 7. Haas dropped from 13th place in 2002. Haas was #18 in 2000.

Business Week bases its ranking on a graduate survey and a recruiter survey, each of which accounts for 45% of the total score, and on a ranking of faculty research, which accounts for 10%.

"We take the Business Week MBA program rankings seriously, and we plan on learning as much as we can about the survey results to see what they can tell us," said Dean Tom Campbell. "Whatever we learn will be added to our ongoing effort to strengthen all aspects of the Berkeley MBA Program, including hiring more faculty, expanding options in the curriculum, enhancing facilities, and offering more career and general services. This effort has seen considerable progress over the past few years, with much more to come.

"At the same time, we already know that on key indicators, such as the high quality of our students and faculty, that our Berkeley MBA Program is among the best anywhere," he continued. "Other leading surveys already reflect these facts. Still, we won't be satisfied until Haas places among the very best schools in all the relevant rankings."

Corporate recruiters rated Haas 19th (compared with 16th in 2002, and 22nd in 2000) in the survey. A poll of 2004 full-time Berkeley MBA graduates brought Haas a #13 ranking, compared with #10 in 2002 and #14 in 2000.

The Haas School ranked 23rd in intellectual capital (down from #3 in 2002; # 38 in 2000). For the "intellectual capital" ranking, Business Week tallied academic journal entries from 18 scholarly publications. Faculty whose books were reviewed in the New York Times, the Wall Street Journal and Business Week received extra points. The intellectual capital weighting was adjusted for school size.

Business Week distributed a 45-question survey to recent MBA graduates at 94 business schools in North America, Europe, Latin America, and Asia, receiving a total 10,074 responses - a 56% response rate. Of the 456 MBA recruiters surveyed, 223 responded.

More information is available at http://www.businessweek.com/bschools/index.html.

Economist Intelligence Unit Ranks Full-Time MBA Program

The Full-time Berkeley MBA program was ranked 19th best in the world in the third annual ranking of MBA programs by the Economist Intelligence Unit (EIU), which released its report on October 6. The school ranked 16th best last year, and 20th the year before.

Among US programs, the Berkeley MBA program ranked #16 this year, compared to #14 in last year's ranking.

The ranking is based largely on career and salary data covering students and recent alumni of the full-time Berkeley MBA Program -- 55% of the survey. About a third of the survey is focused on "personal development and educational experience," includes student opinions about their academic experience, as well as metrics covering GMAT, student diversity, ratio of faculty to students, the number of overseas exchange programs, the number of languages offered in the curriculum, as well as similar categories.

Data from alumni and students, who are polled in the spring, account for 20% of the total survey. The remaining 80% is based on the data provided by the schools themselves.

The EIU is the business and information arm of The Economist Group, which also includes the Economist magazine. Last year, the magazine did not print the results of this survey.

To view the EIU ranking, visit www.which-mba.com.

Homecoming Update: Haas Events Shift as TBS Broadcast Moves Kick-off to 4:00

With Cal ranked #8, Turner Broadcasting Systems' TBS "Superstation" has taken notice - and will be televising a national broadcast of the October 16 homecoming face-off between the Bears and the UCLA Bruins. This has moved the kick-off time to 4:00 p.m. and shifted the timing of other Haas Homecoming events as follows:

10:30 a.m. to 11:30 a.m. Faculty lecture by Dean Campbell, "Recent Economic and Political Developments"

11:30 a.m. to 1:00 p.m. Student-led tours of Haas School of Business

1:00 p.m. to 3:00 p.m. Mexican fiesta and mariachi music

4:00 p.m. Cal football game against UCLA

For more information on this event, visithttp://www.haas.berkeley.edu/alumni/homecoming/index.html.

Haas Gear for Sale in the Courtyard During the Homecoming Festivities

The Haas Gear store is setting up in the Haas courtyard from 1:00 p.m. to 3:00 p.m. during Homecoming, Saturday, October 16, to give all attendees a chance to stock up on Haas t-shirts, sweatshirts, and more while visiting the campus.

A selection of Haas t-shirts, polos, and sweatshirts bearing the school's previous logo, are 50% off and range from $6 for t-shirts to $24 for sweatshirts.

Haas Gear is always available at http://store.yahoo.com/haas-store/shirts.html. You may also visit the Haas Gear store in the Student Services Building room 545A Monday through Friday from 10:00 a.m. to 4:00 p.m.

Haas in the News

Henry Chesbrough, executive director of the Center for Open Innovation, was quoted in an October 11 Business Week article titled "Building an Idea Factory." Chesbrough commented on the opening up of corporate innovation processes. For full text: http://www.businessweek.com/magazine/content/04_41/b3903462.htm

Peter Sealey, adjunct professor in the Marketing Group, commented on the too-thin spread of Richard Branson's brands in an article in the October issue of Fast Company titled "The Gonzo Way of Branding." For full text: http://pf.fastcompany.com/magazine/87/branson.html

As oil prices hit a record-breaking $50 a barrel, Severin Borenstein, the E.T. Grether Professor of Public Policy and Business Administration, commented on prices in an October 4 North County Times article titled "North County Gas Prices Shoot Up 12 Cents." For full text: http://www.nctimes.com/articles/2004/10/05/business/news/20_36_3110_4_04.txt

Dean Tom Campbell commented on the changes to curriculum in business and law as a result of the growing activism of shareholders. Campbell's quotes ran in the Financial Times on October 4 in an article titled "Activists Infiltrate the Classroom: Corporate Governance."

Dean Tom Campbell was interviewed for a segment on the talk show "Business & People," which aired on KTSF 26 TV on October 3.

David Teece, director of the Institute of Management, Innovation, and Organization and the Mitsubishi Bank Professor of International Business and Finance was cited in a story on intellectual property rights in the October 1 issue of the Financial Times. The article was titled "A Safe Haven for Ideas and Inventions."

Hal Varian, professor in the Operations and Information Technology Management Group, was quoted in the October issue of CIO magazine in an article titled "Why You Should Go Back to School." Varian commented on the importance of financial skills to chief information officers. For full text: http://www.cio.com/archive/100104/tl_education.html

Borenstein was also quoted regarding oil prices in a September 30 Sacramento Bee article titled "Oil Problems Cast Wide Net." For full text: http://www.sacbee.com/content/business/story/10923444p-11840885c.html

Cynthia Kroll, researcher for the Fisher Center for Real Estate and Urban Economics, was quoted in a September 30 Daily Californian article titled "Small Businesses Revitalize Fourth Street and, Perhaps, West Berkeley." Kroll commented on the challenge of balancing big industry with smaller retail in redevelopment. For full text: http://www.dailycal.org/article.php?id=16314

Peter Sealey, adjunct professor in the Marketing Group, was quoted in a September 29 SF Weekly article titled "Under the Gun." Sealey commented on the US Army's strategy to reach 18-24-year old males through sponsorship of the Professional Bull Riders association. For full text: http://www.sfweekly.com/issues/2004-09-29/news/feature.html

Jennifer Chatman, Paul J. Cortese Distinguished Professor of Management, commented on the entertainment value and relevance to teaching of TV's "The Apprentice" in the September 27 issue of Handelsblatt, a German daily.

Robert Gleeson, executive director of the Berkeley-Columbia Executive MBA Program, commented on UC Davis's entry into the East Bay executive MBA market in the September 24 issue of Silicon Valley Biz Ink in an article titled "Demand Prompts More Executive MBA Programs."

Happening at Haas

"Global Manufacturing" by Michael Marks, CEO, Flextronics
Wednesday, October 13
4:00 p.m. to 6:00 p.m.
Wells Fargo Room, C420
Having seized the opportunities of global supply chain management and optimized manufacturing, Michael Marks discusses how he grew Flextronics' revenue from $70 million to $12 billion, and previews the road ahead.
For more information, contact Susan Reneau at sreneau@haas.berkeley.edu.

"Philip Morris Companies to Altria Group: Has Anything Really Changed Beyond the Name?" with David Greenberg, senior vice president and chief compliance officer, Altria Group, Inc. (Altria is the parent company of Philip Morris and Kraft Foods.)
Executive Education Learning Classroom, S480
Wednesday, October 13
5:30 p.m.
For more information, contact Joanna Trammell at joannat@haas.berkeley.edu.

Jennifer Chatman, Paul J. Cortese Distinguished Professor of Management at the Haas School, and Anita L. Tucker, assistant professor at the Wharton School of Business
Thursday, October 14
4:00 p.m.
Wells Fargo Room
The presentation will be followed by a wine and hors d'oeuvres reception. For more information, contact Gundars Strads at strads@haas.berkeley.edu.

Saturday, October 16
10:30 a.m. to 4:00 p.m.
Former students of the Haas School will reunite for a festive day back on campus. The annual Haas School homecoming kicks off with a special lecture by Dean Tom Campbell on his insights and perspectives on the current economic and political landscape. This session will be followed by student-led tours of Haas, and a Mexican fiesta luncheon in the courtyard with live music and special activities for kids. Then it is off to Memorial Stadium to watch the Golden Bears play football against UCLA.
Register online: http://www.haas.berkeley.edu/alumni/homecoming/

The Internet: Still the Land of Opportunity
Thursday, October 21, 2004
6:30 p.m. to 8:30 p.m.
Arthur Andersen Auditorium
For more information and to register: http://entrepreneurship.berkeley.edu/forum.asp

Friday, November 5
8:30 a.m. to 5:00 p.m.
Hyatt Regency San Francisco Airport Hotel in Burlingame
For a complete program schedule and to register online, visit: http://groups.haas.berkeley.edu/accounting/cfrm/conferences/15annual/index.html or call 510-642-6334.


"Patenting Activity Among University Scientists"
Waverly Ding, Haas School of Business, UC Berkeley
Wednesday, October 13
4:00 p.m. to 5:30 p.m.
Room C220
For more information, contact Deborah Houy at houy@haas.berkeley.edu.

Oliver Williamson, Haas School of Business, UC Berkeley
Thursday, October 14
4:00 p.m. to 6:00 p.m.
Room C325
For more information, contact Anita Stephens at stephens@haas.berkeley.edu.

"Financial Slack and Tests of the Pecking Order's Financing Hierarchy" by Michael Roberts, University of Pennsylvania
Thursday, October 14
4:10 p.m. to 5:40 p.m.
Room C210
For more information, contact June Wong at june@haas.berkeley.edu.

"Empirical Tests of Prospect Theory" by George Wu, University of Chicago
Friday, October 15
4:00 p.m. to 5:30 p.m.
Room C250
For more information, contact Laura Gardner at Lgardner@haas.berkeley.edu.

"It Could Have Been Better: The Effects of Communicating Counterfactual Thoughts on Impression Formation"
Elaine Wong, University of California, Berkeley
Wednesday, October 20
4:00 p.m. to 5:30 p.m.
Room C220
For more information, contact Deborah Houy at houy@haas.berkeley.edu.

Raquel Fernandez, New York University and London School of Economics
Thursday, October 21
4:00 p.m. to 6:00 p.m.
Room C325
For more information, contact Anita Stephens at stephens@haas.berkeley.edu.

"Was There a NASDAQ Bubble in the Late 1990s?" by Lubos Pastor, University of Chicago
Thursday, October 21
4:10 p.m. to 5:40 p.m.
Room C210
For more information, contact June Wong at june@haas.berkeley.edu.

Leif Nelson, New York University
Friday, October 22
4:00 p.m. to 5:30 p.m.
Room C250
For more information, contact Laura Gardner at Lgardner@haas.berkeley.edu.

"Has SARS Infected the Property Market? Evidence from Hong Kong" by Grace Wong, Princeton University
Monday, October 25
12:30 p.m. to 2:00 p.m.
Room C135
For more information, contact Thomas Randle at randle@haas.berkeley.edu.

Alumni Events

Homecoming Celebration
Saturday, October 16
10:30 a.m. to 4:00 p.m.
Former students of the Haas School will reunite for a festive day back on campus. The annual Haas School homecoming kicks off with a special lecture by Dean Tom Campbell on his insights and perspectives on the current economic and political landscape. This session will be followed by student-led tours of Haas and a Mexican fiesta luncheon in the courtyard with live music and special activities for kids. Then it is off to Memorial Stadium to watch the Golden Bears play football against UCLA. For more information, visit www.haas.berkeley.edu/alumni/homecoming.

Improving Your Opportunities for Career Success
Monday, October 11
6:00 p.m. to 8:30 p.m.
Wells Fargo Room at the Haas School of Business
This session will give you the tools to collect information and secure important contacts, identify unmet needs that surface in a conversation, and foster life-long career management relationships. Event limited to the first 50 people to register. For more information or to register, visit http://www.acteva.com/booking.cfm?binid=1&bevaID=75114.

Teresa Kuehn, Executive Associate Athletic Director/Olympic Sports at Berkeley
Thursday, October 14
6:30 p.m. to 8:30 p.m.
Mudd's Restaurant, 10 Boardwalk, San Ramon
Two days before the homecoming game, hear Teresa Kuehn discuss the football program, Coach Tedford, the Memorial Stadium project, and more.
For more information, visit http://www.acteva.com/go/eb-alumni.

Professional Development Program: Monetary Policy and Economic Outlook presented by Janet Yellen, president and CEO of the Federal Reserve Bank of San Francisco and the Eugene E. and Catherine M. Trefethen Professor of Business Administration.
Thursday, October 21
3:00 p.m. to 5:00 p.m.
Sheraton Palace Hotel, 2 New Montgomery St., San Francisco
For more information, visit http://www.sasf.org/cfmfiles/cal/eventlist2.cfm?id=358&t=g&d=Z.

"The High Cost of Cheap Gasoline and The Implications of Relying on Oil From Unstable Regions," presented by Severin Borenstein, the E.T. Grether Professor in Public Policy and Business Administration
Thursday, October 21
6:30 p.m. to 9:00 p.m.
Palo Alto Sheraton, 625 El Camino Real
For more information, visit http://www.acteva.com/booking.cfm?bevaid=75468 or contact David Hansen at 510-498-8264.

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