May 2007

Daily Bruin

Business Ventures Take Flight Through Campus Competition
On May 24th, UCLA Anderson School of Management hosted the Knapp Venture Competition, an annual event giving student entrepreneurs the opportunity to showcase their ideas for cash prizes and future development.  This year's top winners included an ethnic food web portal, a new surgical technique for glaucoma patients and an experiential retail concept for kids.  "This competition is a great way to build ties between entrepreneurs and students," says Joann Lofgren, a second-year Anderson student and co-founder of grand prize winner Tastination.  This article appeared on May 31.

New York Times
New Yorkers Slip Behind Spenders in 2 Other Cities, Survey Indicates
According to a federal Bureau of Labor Statistics survey, New Yorkers no longer spend more than residents of Chicago and Los Angeles, except on housing - but even that gap is narrowing.  (L.A. residents spend about $13 a month less on housing costs than New Yorkers.) This is no surprise to Edward Leamer, director of the UCLA Anderson Forecast, because Los Angeles home prices have "doubled in the last four years."  This article appeared on May 31.

Los Angeles Daily Journal
Toward Teamwork
Contributing to the Daily Journal's "New Lawyer Edition", UCLA Anderson School of Management Professor Emeritus Fred Massarik penned a piece on the importance of good communication skills.  "... we need to remember that there are different kinds of knowledge.  Knowing more about some things may mean knowing less about others.  We compliment abilities.  We move toward teamwork ..."  This opinion piece appeared on May 30.

Los Angeles Business Journal
Not only is there a growing gap between the ultra rich and the merely wealthy in Los Angeles, but the traditional income gap between the rich and everyone else is also growing at a rate unequal to the rest of the U.S.  "... the hollowing out of the middle class in the 90s has very definite implications for policy and planning in Los Angeles in the coming years," says Jerry Nickelsburg, an economist with the UCLA Anderson Forecast.  This article appeared on May 28.
B-Schoolers Catch Up On Reading
Summer reading suggestions from UCLA Anderson School of Management students and faculty include: The World Is Flat by Thomas Friedman and The Hero With a Thousand Faces by Joseph Campbell (Pradeep Inamati, MBA '07); Irrational Exuberance by Robert J. Shiller and Bringing Down the House by Ben Mezrich (Danny Seo, MBA '07); Einstein by Walter Isaacson and The Road by Cormac McCarthy (Ely Dahan, assistant professor of marketing).  This article appeared on May 28.

The San Diego Union-Tribune
Mayor Gives Up Bid to Take Over Schools in L.A.
After 18 months of waging political warfare, Los Angeles Mayor Villarigosa has abandoned his goal of taking over the city's public school system, slowing the momentum in California for mayoral control of schools.  "I think it will be very discouraging for other mayors," says William Ouchi, professor, UCLA Anderson School of Management and author of Making Schools Work.  This article appeared on May 27.

The Economic Times (India)
Nerds Rush Out to Learn Boardroom Tricks
IT professionals in India are increasingly pursuing MBAs abroad, due to advantages like global exposure and top-notch faculty.  "IT professionals form the biggest pool among our applicants," says Allison Holmes, director of media relations, UCLA Anderson School of Management.  This article appeared on May 25.

Wall Street Journal
Journal Page-One Editor to Receive Minard Award
Dan Kelly, a page-one news editor at the Wall Street Journal will receive the 2007 Lawrence Minard Editor Award from the UCLA Anderson School of Management as part of the 2007 Gerald Loeb Awards for Distinguished Business and Financial Journalism.  The award, for excellence in business, financial and economic journalism, is given to an editor whose work does not receive a byline.  The Loeb Awards will be held June 25, 2007 in New York City.  This article appeared on May 23.

The Christian Science Monitor
A Market Edge for Muslims
Some say the extra-high moral standards imposed on Islamic funds provide them with a leg up in the investment world, but others suggest the quest for moral purity can come at a price.  "I believe that avoiding stocks that indulge in usury is a desirable thing," says Avanidhar Subrahmanyam, professor of finance at UCLA Anderson School of Management.  "... [But] constrained investing, in the long run, might be a less-than-desirable way to invest."  This article appeared on May 21.

Daily Bruin
Two Professors Take Divergent ‘Green’ Paths
Interested in how the adoption of sustainable practices can affect a businesses' bottom line, Charles Corbett, professor at UCLA Anderson School of Management, has spearheaded an effort to create the graduate student emphasis "leaders in sustainability."  "We have students specifically entering the MBA program because they want to do this emphasis," says Professor Corbett.  This article appeared on May 18.

The Providence Journal
Housing Crisis Could Bring Recession
One reason that the nation's current housing market crash may lead to a recession is the fact that a consumer's perceived wealth and therefore their spending habits are based largely on the value of their largest asset, their home.  While the National Association of Realtors predicts that the median price for U.S. homes will decline by 1 percent in 2007, a more pessimistic Edward Leamer, director of the UCLA Anderson Forecast, predicts an annual national housing-price decline of 2-3 percent in 2007.  This opinion piece, written by Donald Riegle and Bartly Dzivi appeared on May 17.

CNBC - National
Fast Money
Katie Partridge, UCLA Anderson MBA 2007, appeared on the Fast Money segment "Face 2 Face" in which guest viewers from across the country present questions to the show's trader hosts for their response.   Katie inquired about the long-term value of Downey Financial stock.  This show aired on May 17.

Los Angeles Daily News
Valley Growth Called Slow, Steady
According to a report released by the Economic Research Center at California State University, Northridge, the economic engine of the San Fernando Valley is growing at a steady rate.  The most recent UCLA Anderson Forecast was referenced as a source for the report.  This article appeared on May 17.

The San Diego Union-Tribune
Prices Gain 1.7 % for Resale Homes
Even with a slight gain in the median price for resale single-family homes, San Diego's housing market continues to cool with the median price for all homes down 3 percent from a year ago and the lowest sales total for any April since 1997.  "The market isn't healthy, but it isn't completely falling apart either," says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on May 16.

CNN - National
American Morning
UCLA Anderson student Danny Seo, MBA 2007, appeared in the segment "Corporate Challenges" on this CNN special series focusing on the Asian American community.  With show host Yul Kown, Danny and four other UCLA students discussed the challenges they may face as Asian Americans entering the corporate world.  This show aired on May 15.

The San Diego Union-Tribune
Foreclosure Frenzy
Reflecting the recent national surge in home loan defaults, San Diego held its largest auction of foreclosed homes since the housing recession of the mid-1990s, and the bidding was fast and furious.  Edward Leamer, director of the UCLA Anderson Forecast, said foreclosure auctions tend to pressure prices downward.  This article appeared on May 13.

Associated Press
California Web Site Outsources Reporting
The editor and publisher of a website that covers Pasadena news has hired reporters based in India to report on the city's local happenings and city council meetings.  According to Uday Karmarkar, professor, UCLA Anderson School of Management, this practice is a shaky business proposition and it's most likely that the editor will spend more time editing than the labor savings are worth.  This article appeared on May 11 and was reprinted in the Press-Enterprise and the San Jose Mercury News.

Public Companies Feel Urge to Merge
Emboldened by a rising stock market plus surging levels of cash, public companies are seeking mergers & acquisitions like never before, and squeezing out private-equity firms in the process.  "The high rates of mergers will continue as long as the stock market is strong," says Fred Weston, professor of finance, UCLA Anderson School of Management.  This article appeared on May 8.

The Washington Post
Circuit City's Job Cuts Backfiring, Analysts Say
After firing over 3,000 of its highest-paid and most experienced store employees in March, Circuit City's April sales have slumped.  With their prices and return policies similar to the competition, the difference must be in sales experience.  "There is nothing more important than relationships in commerce," says Samuel Culbert, professor, UCLA Anderson School of Management.  This article appeared on May 2.

UCLA Anderson Forecast - May 1, 2007
"San Diego Economic Outlook for 2007-08"
According to a report by the UCLA Anderson Forecast, San Diego County's soft housing market, which has been a drag on the local economy for much of the past two years, will continue to deteriorate through 2008.  Articles about the report appeared in the following publications:  The San Diego Union-Tribune, San Diego Daily Transcript, San Diego Business Journal, North County Times, Voice of San Diego, and Builder Online and received radio and television coverage on the following stations: KNSD-TV (NBC) San Diego, XETV-TV (FOX) San Diego, KGTV-TV (ABC) San Diego, KFMB-TV (CBS) San Diego, KUSI-TV (IND) San Diego, and KPBS-FM (NPR) San Diego.

Media Relations