AGSM Defeats MBS. Google Insider. Joseph Stiglitz on Why Australia Should Not Imitate USA

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1 AGSM Defeats MBS Google Insider Joseph Stiglitz on Why Australia Should Not Imitate USA Made for STATESMANSHIP Bob Carr AGSM MBA STUDENT MAGAZINE ISSUE 5 AUGUST 2014

2 CONTENTS From the Editor s Lab 3 From the Editor s Lab FEATURE Made for Statesmanship - 4 Evening with Bob Carr IN FOCUS AGSM defeats MBS 6 15th annual MBA cup We are not sold on marketing 8 Google insider 10 Sydney street art - Hidden in 12 plain sight With the tragedy of MH17 happening just a few months after the disappearance of MH370, political leaders continue to bicker on who is to blame. The top managers of Malaysia Airlines, on the other hand, now face a higher wall to climb in regaining the public s trust. When a crisis like this occurs, what does it take for a good leader to help the company weather the storm and not further into chaos? Share your views with STARmag via Editor-in-Chief Ace Yu Leng Choo Joseph Stiglitz - Why Australia 14 should not imitate USA? Editor-in-Chief Ace Choo Layout designer Ace Choo Copy-editors Rajesh Palaniswamy Sam Lowe Chandra Sekhar Konakanchi Creative Contributor Kirsten Brito Photographer Christopher Chong AGSM STAR Magazine (STARmag) is produced by MBA students from the Australian Graduate School of Management (AGSM). This magazine is not for sale. All published works are of the opinions of the individual authors and do not represent the view of AGSM or UNSW. Originally from Kuala Lumpur, Malaysia, Ace Choo moved to Perth, Australia about 10 years ago to pursue a Bachelor of Science (Biomedical) and subsequently a Master of Infectious Diseases from the University of Western Australia (UWA). After 5 years as a medical researcher and laboratory manager in UWA, she aims to achieve a triple threat status with an AGSM MBA: a medical scientist who dabbles in the arts and skilled in business management. The STAR Magazine logo is put together by Ace Choo using Sommet fonts designed by Jeremy Dooley and Cash Currency fonts designed by Jayde Garrow. The blue and white AGSM logo remained the property of UNSW and any unauthorized use are strictly prohibited. All rights reserved. Website Corresponding Cover photo Former NSW Premier and Australia Foreign Minister, Bob Carr Photo credits Christopher Chong Picture page 2-3 Inside QVB Sydney Photo credits Ace 2 AGSM STAR 3

3 Roll the dice high! A couple of months ago I was celebrating my Bucks Party when I spied former NSW Premier and Foreign Minister, Bob Carr in the corridors of a Chinatown restaurant. Fuelled with a little liquid courage, I took a chance and managed to get a hold of Bob s business card on the basis that he might want to visit AGSM to meet with the MBAs. On the 3rd of July, Bob Carr kept his promise as he joined our MBA class, Alumni and Faculty to kick off the Master of Business Speaker Series for From all reports, the night was a huge success. After my nervous introduction, Bob seized control of the room to share some lessons from his time in public life and to answer questions on a range of policy issues, domestic and foreign. With plenty of theatre and some poignant insights, Bob was a captivating speaker. We heard about the importance of engaging with people on a personal level regardless of the situation, and to that end, Bob spoke of his encounter with Christopher Reeve. We also learnt about sticking to your beliefs, as an animated Bob held onto the imaginary stick of a B-52 bomber showered in enemy fi re and recounted his fi rst years as leader of the NSW Labour Party. Finally, Bob discussed the merits of taking a risk and rolling the dice as a leader, especially when holding on to your convictions. The conversation then moved to Australia s role on the world stage when guests raised a number of interesting questions about foreign affairs. Once again we received some entertainment in the form of Bob s fantasy of a G20 Conga Line with Obama, Putin and other dignitaries. And there was plenty of education on offer as well through a more serious discussion of Australia s seat on the UN Security Council, the balancing act required between the US, China and Japan and Bob s Former NSW Premier and Australia Foreign Minister, Bob Carr (left) with MBA student Chris Jordan Photo credits Minh Le MADE FOR STATESMANSHIP by Chris Jordan (MBA Student Class 2015) CHRIS JORDAN is an Alumni of UNSW Law School, and is currently studying his MBA at AGSM whilst on leave from corporate law fi rm, Minter Ellison. Chris is also organising the Master of Business Speaker Series for the MBA Class of views on our foreign aid budget in the context of the extremely high child labour mortality rates in Cambodia. The night ended with a few quiet drinks at the ASB Lounge and some friendly banter between guests. Bob was right at home: speaking German with Bjoern Werner and co, and discussing the surfi ng scene at Punta del Este with our resident Uruguayan, Enrique Munoz Revello. It was a lot of fun and we are very grateful for Bob s time and effort at the event. After the success of our fi rst Master of Business event, we re now looking forward to the next episode on 29 July when we catch up with former head of McKinsey and AGSM, Rob McLean. 4 AGSM Bob Carr fl anked by MBA students (from left) Frederik Mayeres, Davydd Kelly, Bjoern Werner, Bob Carr, Chris Brunton, Michael Kelso, and Rajesh Palaniswamy Photo credits Christopher Chong STAR 5

4 AGSM MBA students (in white) Ka Ling Ng (left) and Grace Loh going against MBS students in foosball Photo credits MBS AGSM DEFEATS MBS 15th Annual MBA Cup by Matthias Erdrich (MBA Student Class 2015) The 2014 MBA Cup recently took place in Melbourne, and comprised competitions in debating, table tennis, football and foosball between MBS and AGSM. As per every year, the disciplines were chosen by the host university perhaps MBS should have chosen better Even though the competition offi cially started on the Friday, many of the cohort and their partners took the opportunity to visit Melbourne, arriving earlier to enjoy the sights. The AGSM cohort enjoyed a range of social activities thanks to a city tour from our Melbourne-local classmate Chris Chong, who introduced us to unique cafes, bars and restaurants. The participation this year was tremendous, with about 45 people (including partners) travelling to Melbourne for this unforgettable experience. On Friday night, everything started with a casual get-together at MBS facilities, followed by the fi rst competition debating. At 7pm we were guided to the Aula, a place that was rapidly overcrowded due to the overwhelming attendance of very vocal AGSM supporters. Our debating team was represented by Virgina Kane, Sankshep Vashisht, Nigel Hawtin and Tulika Bairoliya. The topic was, That the standardization of internal systems, processes and management leave marketing as the most important function of business read about all the actions in the next article by Nigel Hawtin on page 8-9. At the end of the debate, the proud winners were announced as AGSM. Straight after that was the Football match, featuring Giampaolo Bonaldi as our coach! The game was played in an 11-a-side format over 90 minutes. Both teams seemed to be at a similar skills level but unfortunately AGSM lost 1 3 to our competitors with Enrique Kike Munoz Revello scoring the only goal for AGSM. After this hard day of competition, MBS invited AGSM to Charlie s Bar in the centre of Melbourne. Here, we celebrated winning the cup and connecting with the MBS cohort. On Sunday, the last day of the event, the foosball competition took place. Ka Ling Ng and Grace Loh represented the women s team, Francesco Ruggiero and Douglas Niggley the men s team, and lastly Francesco and Ka Ling made up the mixed team. As with table tennis, 3 out of 5 games had to be won. AGSM took the competition home 9 0. After all the blood, sweat and tears poured into practice time, AGSM is proud to bring both cups home; the MBA-Cup and the MBA Sports Cup. At the end of the day, two crucial elements were at the core of AGSM s victory: Firstly, the incredible participation from both debaters, athletes and supporters, which showed the strong team spirit of the cohort and secondly, our competitive attitude we went there to have fun and to win! You can watch highlights of the event in a video produced by Raj Agnihotri, holqj_drd2k MATTHIAS ERDRICH has over eight years of experience in sales and logistics operations in several major international retail players. He enjoys sports and any outdoor activities. On the second day, the sports events kicked off with table tennis. The tournament consisted of women s singles represented by Elizaveta Turovskaya, men s singles represented by Matthias Erdrich, women s doubles (Elizaveta and Praveena Airani) and fi nally men s doubles (Matthias and Bhuvan Bushan). The rules were clear: 3 sets out of 5 had to be won. AGSM won all the games with 3 0 without any major challenges. AGSM soccer team (most in white top) with MBS team (most in maroon top) Photo credits MBS 6 AGSM STAR 7

5 of a well-polished AGSM team against a team no amount of polish could make shine. MBS were arguing the affi rmative, AGSM the negative. MBS began by failing to defi ne the topic, which could have clinched the debate in the first minute. Instead, their fi rst speaker delivered a speech right back to the A4 printout she was reading from. Virginia then began what turned out to be the best speech of the evening. As bemused as the rest of us as to what MBS had said, Virginia defi ned the topic in a way that left MBS with so few options that their second speaker could only deliver a spirited rant about luxury goods, which turned out to be a poor choice of subject to broach. Our resident Bullet Ant, Sankshep, then delivered a series of stings which belittled their speeches and argument, and further enlightened the Melbournians about their second rate school. Had the inaudible warning knock not cut him off, he undoubtedly would continued to tell them how their very beings were not worth standardising, let alone marketing. The affirmative side of the debate was rounded off by the least effective German to leave Bavaria, in Melbourne s third speaker. He unfortunately devalued what could have been his single and only good point by using the clichéd Apple as an example, which is fast becoming a taboo in the debating world. We are not SOLD on Marketing by Nigel Hawtin (MBA Student Class 2015) That the standardisation of internal systems, processes and management leaves marketing as the most important function in business. Not only was this a resounding victory for AGSM, but MBS helped prove the negative s point that however well-marketed a product, without strategy and innovation, all that remains is foibled words. From the moment the envelope opened to reveal the most long-winded topic in the history of debating, to the ice cold hand shake of MBS second speaker who was graceless in defeat, the 2014 debate was a ruthless display Having spent 10 years in fi nancial services, NIGEL HAWTIN is looking to broaden his horizons. Aside for debating he enjoys competitive sailing and is a partner in an online wine business. Pictures AGSM Debaters (from left) Tulika Barioliya, Sankshep Vashisht, Virginia Kane, Nigel Hawtin Photo supplied by MBS Finally, Nigel entered centre stage, and waited patiently for the audience to refocus their attention before ensuring there was no doubt that the Cup would return to Sydney, and that AGSM-MBS relations would need some patching up during the Adjudicators and Debating Team dinner that followed. Nigel neatly packed up all of the reasons marketing alone was not suffi cient, succinctly enough to fi t into a Gucci (or whatever brand we discussed ) handbag - and tossed the affi rmative s arguments away in its empty box. In the end, the adjudicators like the AGSM Debate Team were not sold on marketing. 8 AGSM STAR 9

6 Insider by Maria Jose DeLa Calle (MBA Student Class 2015) Hello readers! My name is Maria, I am originally from Mexico but have been in Sydney for the past year studying a fulltime MBA at AGSM. Before coming to Australia, I was working at Google as an Account Strategist. I am sure you have all heard of the extensive list of benefi ts you get when working at this famous company: the great food, a spa in the offi ce, awesome installations, among so many others! Well, let me tell you something. These are all true and it s amazing to work in a place that has all these things! However, the benefi ts do come with very hard work and huge learning. For me, being a Googler has been one of the most enriching experiences in my life. Moving to Google was a huge change for me after working at Coca Cola. Google is not a normal company, there is no hierarchy and you have room for creativity. Work is actually a lot of fun. But as with everything in life, something is expected back from you. They provide you with cool things, so you must provide them with top notch quality work. The following aspects are what I enjoyed most whilst working at Google, and those that I think other companies in general should pay more attention to: 1 Having a sense of belonging The day you arrive, they welcome you as if you are already part of the family, and from that day onward they ll do everything they can to keep you happy and comfy. When I arrived I had my desk assigned with new offi ce supplies, chocolates, my welcome package and even some slippers! Friends Your own peers decide if you join the team or not. This creates a special connection among team mates, increases loyalty and eases day to day work. People in general are very nice, and being googly between each other is a must. Being able to build your career When you work for Google you have the choice of working on a role you really like and keep it for as long as you want (as long as you re good of course!) You have the freedom to build your career however you like without having to trade growth with passion. Learning something new every day Training and development is really important in your day to day work. You can get training on a range of subjects, from Google s products all the way to how to be healthy, no matter your role or position. Having the freedom to work on your passion Apart from your core job, you have the option to develop a project you are passionate about. A lot of people focus on engineering projects, others on sales, but for me it was health. Apart from being an engineer, I m also a health coach. While at Google, I had the opportunity to implement a health program at the office, which allowed me to share with other Googlers something I m passionate about. Working for Google had its good and bad points like everything in life. Nevertheless, it made me realize how important it is for companies to pay attention and care for its employees. The author (left) with fellow Googler, Adriana Thomsen, preparing smoothies for a detox program implemented by Maria in the Google offi ce Photo supplied by author Google and the Google logo are registered trademarks of Google Inc. Google defi nes Googliness as a mashup of passion and drive that s hard to defi ne but easy to spot. ( articles/missions-that-matter.html) 10 AGSM STAR 11

7 Sydney Street Art HIDDEN in Plain Sight by Douglas Niggley (MBA Student Class 2015) Sydney Street Art Photos supplied by author A walkabout, taking the 2-10, the heeltoe parade, urban hiking, or just walking whatever you want to call it, as a gas guzzling American, it was not something I did a lot of. That is, until I sold my car and moved to Sydney, where, interestingly enough, if I had kept my car, I would have had to sell it just to pay for the monthly parking. While my convenience coeffi cient sans automobile defi nitely decreased, I like to think that my reduced fossil fuel consumption and increased exercise actually resulted in a net positive (according to Bupa, I ve walked the equivalent of Glasgow to London since being here). And then there is one more aspect of walking everywhere that I truly fi nd amazing getting to explore and discover things in the city that I would have never seen from the cockpit of my beamer. One such thing is Mr. Will Coles, or his artwork to be more exact. The sculptor, street artist, and selfproclaimed freelance European, has been dotting the Sydney landscape with concrete works since Most pieces refl ect the artist s critical views of our culture and consumerism, and consist of a cast item such as gloves, masks, guns, remote controls or phones and one thought-provoking word. The placement and realness of the items often leads pedestrians to pass by without grasping the context of what they ve seen. In honor of Will Coles and all of the Sydney street art I ve yet to discover, I ve created my take on a classic prohibition-era mixed drink for this month s featured cocktail: Between the Streets In a shaker, muddle an orange wedge with ½ a teaspoon of sugar Fill the shaker with ice Add 30 ml of bourbon whiskey (feel free to substitute cognac or brandy) Add 30 ml of light rum (I recommend Havana Club) Add 15 ml of fresh lemon juice Shake vigorously for 10 seconds Strain into a cocktail glass and garnish with a twist of lemon My fi rst encounter with Will Coles took four months before I finally realized that something I walked past every day was actually a sculpture, and not just a pair of abandoned work gloves near a construction site on the corner of Bathurst and Castlereagh. Since then, I have found myself looking less at my phone and more at my surroundings as I attempt to discover one of the many pieces located throughout the city and surrounding suburbs, and I would really encourage you to do the same. You don t have to agree with the message or the ideals, but in the era of Banksy, I hope you at least appreciate this unique side of Sydney. DOUGLAS NIGGLEY Nationality United States of America Likes Exploring, exotic fruits, creative cocktails, the many beaches of Sydney Dislikes Sultanas and sunburn 12 AGSM STAR 13

8 Joseph Stiglitz: Why Australia should not IMITATE USA? by Manvi Goyal (MBA Student Class 2015) Professor Joseph Stiglitz addressing the audience in UNSW Photo credits Enrique Kike Munoz Revello MANVI GOYAL has a major in Psychology with Post Graduate Diploma in special education. She has experience ranging from teaching kids with multiple disability to working as a Business Consultant for global brands such as Holcim, and Toyota. With more than 5 years of consulting experience coupled with post graduate diploma in Marketing, Manvi is passionate about creating solution with social impact. The US economy is considered to be the model to imitate and Prof. Stiglitz has challenged this. Japan tested that position in 1980 s. The 1990 s saw the Japanese Malaise, characterized by an asset price bubble and domestic policies intent on wringing speculative excesses from the stock and real estate markets. Today, Australia faces the same dilemma. Prof. Stiglitz s engaging talk was primarily focused on supporting this argument with interesting facts and statistics. The most thought-provoking fact mentioned by professor was that even though Apple has the highest market capitalization in US, (higher than General Motors at its peak), Apple hires only 49,000 employees of which 30,000 are the lowest paying retail jobs. According to Prof. Stiglitz, the median income in USA has declined over the last quarter century, while in Australia; the median income has grown by 3%. He goes on to explain that the SME sector which is responsible for creating the most jobs is not doing well because the banking system is not lending it money with lending to SME at 20% lower than pre recession era. Similarly Prof. Stiglitz, outlined the discrepancy in lending for higher education. One may go to a bankruptcy court and discharge the loan for a yacht but the same is not possible for a higher education debt. He went on to chuckle that although Australia has a far better education system, it still aspires to imitate the US model. Referring to the global fi nancial crisis as North Atlantic Financial Crisis, he said that Australia had one of the best, designed stimulus packages. He alleged that the fundamental diagnosis of recession was wrong, assuming that the US economy was healthy in It was a bubble that led to booming consumption, where the bottom 80% of Americans was consuming 110% of their income, which was not sustainable. Thus, the predominant problem facing the global economy today is a lack of aggregate demand. When you move money from the bottom to the top, aggregate demand diminishes, which in the wake of the crisis has led to even worse inequality. Productivity has grown faster than aggregate demand meaning employment in manufacturing is going down. A similar problem was faced at the time of industrialization but active government policies, especially free education, led to America becoming a strong manufacturing economy. Today in a similar situation politics in Europe & America is a hindrance to the much-needed fi scal stimulus. In short the two major entities to blame for this crisis are fi nancial sector and the regulation authorities. The deregulation of fi nancial sector was due to heavy lobbying based on the standard wisdom that markets are inherently effi cient and don t create bubbles, even though there is a clear history of them. So an interesting view on the global economy with new set of statistics ensured an enthralled audience. In all, a talk with a sense of humor was refreshing coming from a Nobel laureate. 14 AGSM STAR 15

9 AGSM full time MBA students standing proudly with their trophies Photo credits MBS STUDENT SOCIETY (STUSOC) COMMITTEE MEMBERS President Virginia Kane Vice President Frederik Mayeres Finance Manager Arun Pandiyan fi Communications Manager Ace Choo Alumni Relations Manager Bhuvan Bhushan Events Manager Davydd Kelly Technology Manager Sumit Yadav Business Manager Chris Jordan STUSOC CLUBS CONTACTS President Consulting Club Ankit Kothari President Entertainment, Sports, & Events Management (ESPM) Club Sanjit Kewalramani President Finance Club Dan Wong President Innovation, Commercialization & Entrepreneurship (ICE) Club Enrique Kike Munoz Revello President Marketing Rony Kristianto President Public Speaking and Debate Club Sankshep Vashisht Liaison Social Impact Club Christopher Chong President Women in Leadership Club Kirsten Brito