Tag: Critical Thinking



Arnold W. Donald

Arnold W. Donald is the CEO of Carnival Corporation and had previously worked his way up within Monsanto to president of nutrition and consumer sector. Donald spoke for our Olin Business School’s Defining Moments series in which CEOs share the moments that shaped their career.

However Donald wasn’t always a powerful force in the corporate world. He started in New Orleans, where he attended an all-black high school. It was not easy growing up in segregated New Orleans.

“I was told and told again to prepare myself, that I could do anything—all at a time when I couldn’t drink from this water fountain or eat at that lunch counter,” Donald said. He put all of his belief and energy into the value of education: “Education is a portal to prosperity.”

Even as a teen, Donald was career-focused: by high school he had decided he was going to be a general manager at a Fortune 50 science-based global company. With a very narrow vision, he set out to achieve that goal. He worked hard to get into Carleton College, but didn’t stop there. Donald plowed his way through a Washington University bachelor of science degree in mechanical engineering and later received his MBA from the University of Chicago.

His goal began to materialize as he scored a position at Monsanto right after graduating from Washington University. This position led to his Defining Moment. Donald, then just a rookie, was assigned an account no one wanted.

Arnold Donald, Carnival Cruise

Arnold Donald, Carnival Corporation

When his boss offered him the losing account, he referred to him as “Nick,” using the name of the only other African American employee. Donald reiterates, “Marketing didn’t want the account because they were judged on sales. Logistics didn’t want it because they were judged on efficiency. My boss didn’t want it because it was an embarrassment.”

Donald, as a rookie and as one of two black employees, was driven to make a profit from this account.

Donald ended up sharing a presentation with his client that saved them a significant amount of money. The client then turned to Donald’s boss and explained how he had just completely saved the account. The boss replied, “I know that’s why we put Arnold on it.” This was the first time the boss had called him by the correct name.

This instance of hard work on Donald’s part—countered by his boss’s ignorance—had defined the start of his career. There will be bumps in the road, but he knew he could count on himself.

From this defining moment, Donald outlined his key takeaways: “Know your heart, find your passion; chart your course, develop a plan; prepare yourself.” These takeaways led him to his current position as CEO of Carnival Corp., a nearly $50 billion corporation.

 




Jennifer Labit

Jennifer Labit had many forces working against her—an unfinished high school diploma, the tech crash of 2000 and a new baby on the way—but she had a vision and was determined to see it through.

For this week’s Defining Moments series, an MBA and undergraduate class taught by Stuart Bunderson, Jennifer Labit shared how her company, Cotton Babies, was born.

As she explained, “I started a company by accident.” Labit’s company, Cotton Babies, grew out of all of the things working against her. A self-taught coder found herself as one of the only women in a company full of men. This job didn’t last long, as it was washed away with the 2000 tech crash.

Around the same time, she moved back to St. Louis. As she was just figuring out how to make ends meet with her husband working at minimum wage, Labit got pregnant with her first child.

She asked the class, “How much do you think a box of diapers costs?” The class filled with undergraduate and MBA students, many of whom didn’t have children, guessed around $10. When Labit responded that a box of diapers cost $25, the class immediately got behind her vision of reusable diapers.

The idea was born through struggle: Labit and her husband only had $30 after paying the bills for both groceries and diapers. They had to start using cloth diapers because they had to eat. Even still, Labit found a solution to her problem at home, but didn’t see a possibility for a business.

It wasn’t until she’d walk down the street carrying her baby in a homemade sling, having mothers stop her constantly asking where they could buy it, that she knew she had something.

Labit had $100 in her bank account and sold the sling to friends for just $5 above wholesale. She would strategically put a business card in each sling and tell her friends that if people asked about the sling to have them call her. Her phone began ringing off the hook. Every dollar of earnings she put back into her bank account.

Cotton Babies grew so quickly that Labit was forced to move into a retail space for insurance purposes and before she knew it, the company had 600 individual retail accounts.

“I’m an inventor; that’s what I’m good at,” Labit explained. “I’m an idea person.” Labit’s creativity and passion for her company truly radiated through the room as she lectured.

Labit explained that offering a diaper solution to parents struggling economically has a much broader impact than you’d imagine: “I equate a diaper solution to adding a well to a village doesn’t have clean water. It’s just as important but we never talk about it.”

Having too few diapers leads parents down a slippery slope. It leads to using a diaper for too long, which can lead to diaper rash, which then causes increased stress in the home because the baby cries often. Labit shared that not having enough money for diapers creates this cycle of embarrassment and guilt for the parents. Even more extreme: it’s linked to an increased likelihood of childhood abuse.

It’s not only Labit’s passion that landed her a successful business, but also her grit. Labit got emotional as she shared that a Chinese manufacturer knocked off her diapers and sold them on Amazon. The counterfeit product remained on Amazon as Labit begged them continuously to take it down.

She realized direct communication wasn’t going to work while Amazon turned the other way. She needed their attention, so she turned to the power of the Internet. Labit wrote a powerful blog pouring her emotions into words. Amazon responded immediately. The support she received only confirmed the power of having an incredible reputation with high quality products.

Feeling strength within herself, Labit turned the tables to take on China. She recognized their main advantage was their reasonable prices so she went to the drawing board to create high quality products at a competitively low price. Her line Elemental Joy was born, which will be sold at Walmart in just a few weeks. “And that’s how you disrupt China,” Labit triumphantly concludes.




Zandy Schorsch, MBA ’19, contributed this blog post on behalf of Olin’s Center for Experiential Learning.

Oscar Wilde once said that rugby is a good occasion for keeping 30 bullies far from the center of a city. This semester, students from the undergraduate and graduate levels of Washington University Olin Business School have been working with the Center for Experiential Learning to perform the opposite—assess the viability of bringing a professional rugby team to the city of St. Louis.

Rugby is one of the fastest growing sports in the United States, and Major League Rugby was founded last year to provide fans with professional-level rugby competition here in the states. The league kicked off its inaugural season with seven original teams. With nationally televised games on CBS and sold out tickets in many of the cities, there is a growing sense of optimism as MLR prepares for its second season.

The league has aggressive plans for expansion, with teams in New York and Toronto joining for the 2019 season and Atlanta, D.C., and Boston joining in 2020. St. Louis has emerged as one of the potential cities for an MLR expansion team, and the CEL was hired by a local entrepreneur to determine whether such a venture is feasible.

The CEL’s client, a husband and wife duo with a lifelong passion for rugby, believe the loss of the city’s football franchise has created an opening for rugby. Through dozens of interviews with rugby players, coaches, executives, and MLR league officials, the CEL team developed a strong understanding of how a rugby team in St. Louis would operate and the number of fans it would be able to attract.

Although St. Louis has always been a baseball town, there are hundreds of registered rugby players in the local area across all levels of the sport, as well as several nationally recognized rugby programs.

While the CEL team was able to develop a demand forecast for rugby in St. Louis, only so much can be learned about stadium financing and team operations from phone interviews and emails. As a result, the client decided to bring the CEL team to Glendale, Colorado, to meet with the Raptors, the MLR regular season champions, to learn more about the business side of rugby operations.

Learning about rugby operations from the Raptors.

During a full-day of meetings with the Raptors, the CEL team learned about stadium financing, team and stadium operating costs, revenue drivers, marketing and sales strategies, and unexpected expenses associated with managing a professional sports team.

The CEL team also got to learn the fundamentals of rugby from some of the professional players, such as tackling techniques and field goal mechanics.

While the CEL team requires more practice if they hope to play professionally, the data the team was able to collect from the Raptors proved invaluable for their analysis. The client capped off the trip with dinner at a local pub, a great opportunity for the student team to connect with their client informally.

Upon returning to St. Louis, the CEL team took the lessons learned from the Raptors to develop a financial model the client could use to make an informed decision about bringing professional rugby to St. Louis. The team developed an intuitive financial model that accounted for attendance numbers, concession sales, merchandise sales, stadium costs, advertising, and a host of other variables posed several challenges.

Effectively communicating the outputs from the financial model, as well as highlighting the key assumptions and inputs that produce those outputs, was also critically important.

By building a strong relationship with the client throughout the semester, and leveraging the abundant resources of the CEL and Washington University, the CEL team was able to provide a final deliverable that gave the client a holistic view of everything that goes into managing a professional sports team and stadium.

The financial analysis demonstrated that a team in St. Louis is feasible, so be on the lookout for a local MLR team in near future.

Overall, the CEL is a unique opportunity for students to work on real-world projects that have a direct impact on their community. Bringing a professional sports team to St. Louis is the type of project that major consulting firms and investment banks would be envious of, and for the clients who hire the CEL, they get to receive professional-level services from the very students who, upon graduation, will be joining those types of companies.


John Mozeliak, CEO and president of the St. Louis Cardinals, starts his Defining Moments talk by reflecting on the baseball industry’s incredible growth: “When I began in baseball, it was less than a $1 billion industry. Today it is $10 billion.”

Mozeliak had to find ways to keep up with this 10x growth. Through advocating for change, keeping to his business philosophy, and redefining the team’s competitive advantages, Mozeliak kept the Cardinals winning.

Change

If you’re in the baseball industry, you know it’s often resistant to change. Mozeliak explained many small changes that he’s pushing for that could increase the baseball market as a whole and bring in more revenue.

For example, he revealed a current debate within the industry over increasing the size of each base by 1 or 2 inches. This small change would allow for more steals, translating to a more interesting game for viewers. However, something that sounds so simple is met with a lot of opposition.

Baseball is a game of tradition and the bases have never been changed. With Mozeliak’s supervision, the Cardinals will have a day this year to test out the larger bases. Mozeliak attributes small changes such as these to remaining competitive.

Philosophy

Mozeliak sticks to two main philosophies to keep business in line. The first is a metaphor: “Baseball is like a table, if any of the legs is un-sturdy, the table is un-sturdy.” Mozeliak focuses on four “legs:” international scouting, amateur scouting, player development and the analytical department. This table model allows Mozeliak to keep a holistic view of the business, making sure each department remains in check.

The second philosophy is Mozeliak’s management philosophy focusing on teamwork. The management philosophy works to break down silos, and above all else emphasizes the process. Mozeliak stresses that once you find a process that works, you have to stick to it: “If you remain disciplined and true to your process, you tend to make fewer mistakes.”

Competitive Advantage

Lastly, Mozeliak focuses on the team’s competitive advantage. Mozeliak explains, “It’s easy to be short-sighted, focusing on your day-to-day job, but you have to think about the competitive environment that you’re in.” For the Cardinals, data is a huge part of their competitive edge. The team used data to scout players before others were in amateur scouting. This advantage led them to Matt Adams, an incredible player who was scouted with relatively low cost.

In short, with his emphasis on change, his business philosophies and maintaining a competitive advantage, Mozeliak strictly follows the Cardinal Way. The Cardinal Way is having an appreciation for your past, understanding where you are today and having an eye on tomorrow.




Mimi Wang, MBA ’19, contributed this post on behalf of Olin’s Center for Experiential Learning. Lexi Bainnson, BSBA ’21, edited and formatted this CEL blog post.

In October, a student team representing the Center for Experiential Learning visited Quito, Ecuador. Quito is a city built on mountains and in the valleys with breathtaking views in all directions, no matter your location.

The angel of Quito is a famous statue located on top of one of the tallest mountains and is visible from everywhere in the city.

Left: The angel of Quito sits atop a hill and is visible anywhere in the city. Right: The view from the angel’s vantage point.

There is so much to do in Quito that our sightseeing day was jam-packed. The center of the world, located at latitude 0º0’0”, features a variety of exciting sites. We visited two main attractions during our time in Quito.

Team members Stephanie Feit, MBA ’19),
Brant Tagalo, BSBA ’20, and Mimi Wang, MBA ’19,
line up for a demonstration of some of the
increased gravity effects at the center of the earth.

The first site was built around what was originally considered the center of the world, and includes a large park with museums, restaurants, and monuments. The second was built at the true center of the earth, calculated using a modern, military-grade GPS. At this site, our team took a tour and learned about ancient indigenous cultures and some of the natural phenomena that happen along the equator line.

After a day of sightseeing, we stopped at a chocolate shop and cafe, where we had some tea and coffee. Cacao beans are grown in and around Ecuador, so it has the best chocolate and some of the best coffee in the world.

The view from the coffee shop
is quaint, and the drinks are delicious.

We also dined at Quitu, a restaurant that puts modern experimental cooking twists on classic Ecuadorian food. Quitu is unique in that it sources all of its food locally and organically. Interesting menu items include broccoli rabe cooked in cucumber and rabbit soup, fresh fish in zucchini sauce, deep fried guinea pig (called cuye), and pork tongue in a soy-like sauce. All of the dishes were served on distinctive plates made of driftwood, cross-sections of tree stumps, or rocks. Our meal there was a lively occasion appreciating authentic Ecuadorian cuisine.

We loved having the opportunity to explore and experience Ecuadorian culture outside of our time spent with our client in October. Now that we are home again, we look forward to composing our final deliverables and helping our client going forward.