BBR Volume 2 Issue 10

8/14/2019 BBR Volume 2 Issue 10

1/11

VOLUME II

ISSUE X

WHATS INSID

BRUINFINANCE

HECK IT OUTpage 9.

ANDERSONs 20

ENTREPRENEURCONFEREN

Get the inside scoSee p

HAPPENINGSCURRENT

WHA

GENERAL MOTO

DOING TO AVO

BANKRUPTCY

See p


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ABOUT US

2008-2009 BBR STAFF

QUESTIONS, COMMENTS, CONCERNS?E-mail: [email protected]

Mailing address:

Bruin Business Review

118 Kerckhoff Hall

308 Westwood Plaza

Los Angeles, CA 90024-1641

Shannon Kung

President

Benjamin Lo

Editor-in-Chief

Maya Lucaci-Vashee

Assistant Editor

Cristina Carillo

Copy Editor

Sunny Wong

VP of Operations

Christine Liu

VP of Marketing

Julie Chen

VP of Finance

Erika Solanki

VP of Creative Development

Eric Park

Marketing Department

Stefanie Ju

Marketing Department

Jaeman Kim

Finance Department

Grace Chan

Finance Department

Dmitry Shuster

Staff Writer

Bruin Business Reviewis a student-run online publication established in 2007

for the purpose of providing the UCLA student body with a convenient source

of business news and career information. We publish every two weeks on the

Internet and by subscription, allowing our content to be accessible to every-

one. Our goal is to enrich our readers knowledge of the business world and

the career options within it by presenting a wide range of business-related

topics in a non-technical style. Our broad range of topics encompasses cur-

rent business news, resume tips, employer and MBA program profiles, indus-

try insight, and others. For more information about BBR, visit

www.bruinbusinessreview.com.


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M

ay2009

May 1

Bruin Consulting and iFLY Indoor

Skydiving Marketing Plan Competition

Location: Applications at www.Cal-

Student-Fliers.com

Description: Submit an innovative market-

ing plan to win a $5,000 scholarship.

Grant Thornton LLP: Footsteps Program

Applications Due

Location: Apply through Bruin View

Description: FootSteps is a two and a half

day program designed to give sophomores

the opportunity to learn more about their

future profession, experiences from Grant

Thornton professionals, and participate in

activities to introduce you to public ac-

counting.

Undergraduate Business Society Execu-

tive Board Applications Due

Location: 8283 Bunche Hall, Departmentof Economics

Description: Interested in becoming a part

of the executive board for the Under-

graduate Business Society? Go to

www.ubsbruins.com to download an ap-

plication.

May 2

Bruin Consulting Mentorship Program

Applications DueL o c a t i o n : A p p l i c a t i o n s a t

www.bruinco.com

Description: The Bruin Consulting Board is

offering one-on-one training to first and

second years. The four week program will

include resume construction, mock inter-

views, and networking opportunities.

May 5

Bruin Finance Investment Banking Panel

Night

Time: 7:00 9:00 pm

Location: Royce 190

Description: Network with a panel of in-

vestment banking professionals represent-

ing JPMorgan, Barclays Capital, Credit

Suisse, and Houlihan Lokey. Also, get ad-vice for successful recruitment as well as

resume critiques from real bankers. To get

more information or join the list serve,

visit www.bruinfinance.com.

May 6

Career Fair Career Roundup

Time: 11:00am 3:00pm

Location: Ackerman Grand Ballroom

Description: Gather information and

internship/job opportunities with com-

panies, including Disney Consumer Prod-

ucts, Northwestern Mutual, and Ray-

theon Company.

May 12

Job Search Jump Start: Marketing

Time: 4:00-7:00 pm

Location: UCLA Career Center, 3rd Floor

Description: Learn the skills necessary to

be competitive in a career in marketing.

Learn how products are marketed, what

career opportunities are available, how

professionals got into this field, and

what you can do to market yourself for

the profession.Register at career.ucla.edu/JumpStart

May 15

Bruin Finance Executive Board

Application Due

Time: By 11:59pm

Description: Interested in becoming a

part of the executive board for UCLAs

premier finance organization, Bruin Fi-

nance? Go to www.bruinfinance.com

and download an application.

May 19

Student Accounting Societys 27th

Annual Spring Awards Banquet

Time: 6:30-9:30 pm

Location: Covel Grand Horizon Ballroom

Description: The Student Accounting

Society a banquet to acknowledge the

100+ firm professionals in attendance

(Ernst & Young, PWC, Deloitte, KPMG,etc.) as well as UCLA's own accounting

professors. You will have the chance to

sit and network with firm professionals

throughout the night.
http://www.cal-student-fliers.com/http://www.cal-student-fliers.com/http://www.bruinco.com/http://www.bruinfinance.com/http://www.bruinfinance.com/http://www.bruinco.com/http://www.cal-student-fliers.com/http://www.cal-student-fliers.com/


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TABLE OF

CONTENTS5 News of the Week: General MotorsTries to Avoid Bankruptcy6 News Briefs9 Profile: Bruin Finance10 Profile: Anderson Conference


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By Shannon Kung

Senior Staff Writer

General Motors announced last Monday that it is planning to cut

as many as 23,000 U.S. jobs by 2011 in addition to slashing 40

percent of dealer networks and dropping the Pontiac brand. GM

hopes that this new proposal will help it avoid the looming

threat of bankruptcy, brought on by the failing U.S. automobile

industry and the current economic state. Its efforts to reduce

costs stem from problems that have bothered the company

since 2005. By the end of all the cuts, GM expects to have only

38,000 union workers and 34 factories left in the United States,

a far cry from the 395,000 workers and more than 150 plants

General Motors had at its peak employment in 1970.

The new restructuring plan would entail the Treasury accepting

General Motors stock in place of cash for the repayment of Gen-

eral Motors $10 billion government loan. This would leave the

Treasury, and thus American taxpayers, with a significant stake

in GM. The United Auto Workers union holds a large stake in

GM and, if bondholders agree to the proposal, 89 percent of GM would be owned by the union and the Treasury. This

would leave bondholders with a less than 10 percent stake in GM.

General Motors CEO, Fritz Henderson announced that if bondholders do not agree to the swap, bankruptcy may be in

GMs near future. GM needs at least 90 percent of the bondholders to agree to the terms by June 1; otherwise, the

auto company may have to file for Chapter 11 bankruptcy. If the company does file for Chapter 11 bankruptcy, GeneralMotors would still be in control of its business operations as a debtor in possession and would be given the chance to

reorganize.

Furthermore, General Motors is completely

eliminating the Pontiac brand. Pontiac, an

iconic brand dating back to the late 1950s, is

credited with creating the first muscle car.

Although it is difficult to fathom now, Pontiac

was once marketed as GMs excitement divi-

sion with cars such as the GTO. Now, how-

ever, the Pontiac is set to be shut down by the

end of next year. General Motors claimedthat Pontiac was given the axe not because of

sales, but because of profitability. Instead,

GM will focus more on four core brands: Chev-

rolet, Buick, GMC, and Cadillac. This leaves

three other troubled lines: Saturn, Saab, and

Hummer all up for deliberation by General

Motors.

STRUGGLING GENERAL MOTORS

TRIES TO AVOID BANKRUPTCY


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By Benjamin Lo and Julie Chen

Senior & Staff Writer

NEWSBRIEFSBITTER BANK OF AMERICA SHAREHOLDERS REMOVE KENNETH LEWIS AS CHAIRMA

After working for Bank of America for 40 years, Kenneth D. Lewis, its current chief

executive, was voted out of his chairman position last Wednesday after an annual

general meeting for the nations largest bank. While Lewis was voted out of his

position as chairman, he will retain his position as chief executive officer. A chair-

man is selected by a corporation to lead its board of directors, while the chief ex-

ecutive officer serves to handle total management of the company. After a 50.34

percent shareholder vote, or 25 million votes, to oust Lewis, Walter E. Massey,

the president emeritus of Morehouse College in Atlanta, will take on the position

as chairman of Bank of America. A third had voted to remove him from the board

altogether. Investors made this decision largely in part to hold him accountable

for what they view as management mistakes that led to two government bailouts.

Even after receiving billions of taxpayer dollars in government loans, the bank may still need to raise more capital.

THE U.S. BENEFITS AS CHINA TRIES TO SPUR ITS ON ECONOMY

U.S. industrial-equipment makers, which work closely with Chinas infrastructural development, are seeing increased

activity in Chinas markets as Chinas $585 billion stimulus package increases demand for steel and labor. Many peopleinvolved with the industrial sector, including James W. Owens, chief executive of industrial-equipment maker Caterpil-

lar Inc., , said China is boosting its economy much more quickly than the United States has to date. "It's something like

nine months [in the U.S.] versus nine weeks" in China, he says in regards to the amount of time needed to start civil

works projects such as the construction of a $930 million bridge and expressway project called Xiangshan Island Bridge.

As a result, Wall Street Journal analysts believe China may be the first major economy to recover. China's investment in

infrastructure projects has soared, rising 102 percent in the first quarter from a year earlier, the National Bureau of

Statistics says. In contrast, Washington has distributed $69 billion of its $787 billion in stimulus funds to states and lo-

calities, which have spent $14 billion.

PROFIT JUMPS AT DREAMWORKS ANIMATIONFirst quarter net income more than doubled to $62.3 million for DreamWorks

Animation, due in large part to strong box-office and DVD sales from

Madagascar: Escape 2 Africa. Jumping from $26.1 million a year ago, the re-

sults far exceeded Wall Street predictions and tops the charts for Hollywood

companies. The Madagascar sequel generated $595 million in worldwide ticket

sales and increased DreamWorks sales from last year by 68 percent. The stu-

dios latest film, Monsters vs. Aliens, has grossed about $320 million in ticket

sales since its March 27th release. DreamWorks Animation chief executive Jeffrey

Katzenberg announced at a conference that this has been their strongest first

quarter ever.


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LONDONS FINANCIAL SECTOR CONTINUES TO FEEL EFFECTS OF THE ECONOMY

STARBUCKS REPORTS DECLINE IN REVENUE

Starbucks has recently reported its fall quarterly profits have tumbled 77

percent. With this announcement, the company also reported a net

profit of $25 million compared to $108.7 million in profits during the

same quarter last year an $83.7 million decrease. Total revenue fell 7.6

percent. The company has also closed 123 U.S. stores in the quarter in

efforts to reduce its costs during this economic downtown. Starbucks

has previously announced plans to close 960 stores globally during this

recession. Since July, the company has shut down 507 locations in the

U.S. and 64 locations in other countries. Despite these reports, executive

vice president of Starbucks Troy Alstead said in an interview with BBCNews, "We are building a healthier and more sustainable business model

to support the company into the future and deliver value to our share-

holders."

The financial services industry has been a major source of revenue in London for the past ten years and now analysts

are predicting major declines in the city as the current economic crisis continues to affect Britains capital. By 2010,

the U.K. will have the largest budget deficit in the developed world, Rich-

ard Snook, a senior economist at the Center for Economic and Business

Research in London, said in an interview with the New York Times. The

problem is that the financial services industry has been a huge cash cow

for the British government for the last 10 years and now it is going intoreverse. The countrys budget deficit has increased in the past year to 12

percent of gross domestic product and its current public debt burden

could soon reach 80 percent of its annual economic output. Analysts ex-

pect over 70,000 jobs in the worlds financial industry to disappear in the

next two to three years. In the meantime, the British government is trying

to prevent further declines in its financial industry, as it has pumped hun-

dreds of billions of pounds into preventing several of its largest banks

from filing for bankruptcy.

RECESSION HITS MAJOR INTERNATIONAL AUTO INDUSTRIES

In past years, many international automakers, such as Toyota, have prospered

when U.S. auto companies have seen declines. Now, the economic crisis has

halted the good times for Japans Motor City, Toyota City. Toyota has idled fac-

tories and decreased production during its first annual net loss in 59 years. This

has pushed Toyota City into its worst slump in memory, as jobs and tax reve-nues have declined. The only places [in Toyota City] that are still busy are

those producing for the Prius, said Masahiro Tanaka, who was recently fired

from Toyota, referring to Toyotas fuel-efficient hybrid sedan. Everywhere

else, jobs are just gone. Completely gone. He and others said jobs began dis-

appearing after last summer, as collapsing global auto sales led Toyota Motors

to lay off 6,000 employees and slow production at its seven factories in Toyota

City, where the majority of the its 72,000 Japan-based employees work. Toyota

said it expected a $3.5 billion net loss in the last fiscal year, its first loss since

1950.


8/11

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SWINE FLU HITS THE AMERICAN ECONOMY

HOME PRICES ARE DECLINING LESS

Prices of single-family homes in 20 U.S. metropolitan areas in February were down 18.6 percent from last year. The

slowing rate of decline brings hope for the housing market. The National Association of Realtors said that home prices

rose more than normal from February to March, indicating

that the market may be stabilizing. Despite this, price drops

remain brutal, especially in areas where they rose fast. Ac-

cording to the Case-Shiller index, San Francisco, Las Vegas,

and Phoenix were among the hardest-hit cities. The Obama

administration recently announced a plan that may reduce

payments for up to 1.5 million at-risk homeowners, who

continue to struggle financially. Under the plan, the govern-ment would tap a $50 billion housing fund to encourage

mortgage suppliers to modify second mortgages and cut

monthly payments for borrowers.

An outbreak of swine flu in Mexico has raised concerns

worldwide that the disease could turn into a global pan-

demic. So far, 168 people are suspected to have died

from the strain of swine flu in Mexico. American officials

declared a public health emergency on April 26, 2009,

after 20 cases of swine flu were confirmed in the United

States. Since then, the number has more than doubled,leading countries around the world, including Israel, Bul-

garia, and Japan, to tighten their border and immigra-

tion controls. The pork industry is beginning to feel the

repercussions as people become continually more hesi-

tant of eating pork. Although medical authorities say

there is no evidence that people will contract the swine

flu by eating cooked pork, Wall Street analysts predict a sharp decline of pork sales in grocery stores. Ten countries,

including China, have already banned pork products from the United States.

CZECH REPUBLIC PAYS IMMIGRANTS TO GO HOME

During its manufacturing boom earlier this decade, the Czech Republic enticed immigrants with plentiful jobs and com-

paratively higher wages. Now, the Czech government is paying them about $990 American dollars to go back home,

due to a fall in demand for exports and an unemployment rate that has soared to 7.7 percent. The Czech Republic plans

to disintegrate the global work force, consisting of 40 percent foreigners that helped the nation grow into a manufac-

turing hub, in order to open up jobs for the increasing num-ber of jobless Czechs that must now apply for the low-wage

work traditionally left for foreigner laborers. The Czech econ-

omy is set to contract by 2 percent this yeara major decline

from its 7 percent peak in 2006. The Czech Republic contin-

ues to increase the budget for its multimillion-dollar program

to pay newly jobless migrants to go home. The pay-to-go pro-

gram is only open to citizens of countries that are not in the

European Union. Japan has also begun a similar program.


9/11

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Founded this spring quarter by several undergraduate students, Bruin Finance

is the first undergraduate business organization on campus that solely focuses

on the financial sector. The organization aims to fill the void of a business

major, or more specifically, a finance major, at UCLA. Daniel Kim, one of the

co-founders of Bruin Finance, states that USC students have an advantage in

the sense that they have finance course offerings, which can be very attractive

to area banks. Bruin Finance plans to set up various events, speaker panels,

and workshops to aid students going through the recruiting process, the firstof which will be on Tuesday, May 5th. Kim said he hopes that UCLA students

interested in finance will become better prepared for winter recruitment

through being a part of Bruin Finances events during the year, which will

allow students the chance to receive networking opportunities and resume

critiques from investment bankers, to name a few.

Although areas like investment banking and corporate finance appear to be the

main focus of this organization, the club also plans to explore other fields within

the realm of finance, including private wealth management and investment

management. We want to also cover topics such as microfinance that pertain

not only to economic students, said Eric Im, another one of the organizations

cofounders. Im said he believes that tackling areas of finance other than just

investment banking will provide the general student body with a better

rounded perspective on the financial sector.

INVESTMENT BANKING PANEL NIGHTBruin Finance kicks off its first major event with the Investment Banking Panel Night, slated for May 5th from 7-9 PM in

Royce 190. Several investment banking professionals from banks such as a Credit Suisse, Houlihan Lokey, JP Morgan,

and Barclays Capital will be attending and discussing their profession, as well as providing insight and analysis about

the current economic crisis. For sophomores and juniors interested in investment banking, the event should also be a

good opportunity to network with the panel speakers, drop of resumes, and receive resume critiques from real

bankers. The event will also provide opportunities for students to learn more about Bruin Finance and pick upexecutive board applications if interested, which are due on May 15th.

OTHER EVENTSBesides the investment banking panel night, Bruin Finance will host

UCLAs first undergraduate Finance Case Competition in the near

future. EdgeCorp, a West Coast Wall Street prep company, will be

presenting about the financial case process as well as providing a

financial modeling workshop. There will also be opportunities to win

free prep classes from Edgecorp, valued at $950.

We want to provide a

niche for students in

finance. - Eric Im, Co-Founder

www.bruinfinance.com

[email protected]

By Sunny WongSenior Staff Writer
http://www.bruinfinance.com/http://www.bruinfinance.com/


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2009 ENTREPRENEURS CONFERENCE

By Eric Park

Staff Writer

I took the one less traveled by, and that has made all the difference. Those are the concluding words of Robert

Frosts The Road not Taken, which will be the theme for this years Entrepreneurs Conference hosted by the Ander-

son School of Management, titled The Entrepreneurial Road Less Traveled. This is an annual, all day event to be held

on May 8, 2009. The conferences focus will be on entrepreneurial opportunities during the current downtrodden

economy.

The conferences audience ranges from current and future MBA students, alumni, faculty, entrepreneurs and profes-

sionals from a variety of career fields. Prominent individuals scheduled for this event include: Isaac Larian of MGA En-

tertainment; Claude Ruibal, CEO of Universal Sports; Mary Leslie, president of the Los Angeles Business Council, andmany others. This event is designed to promote development

in entrepreneurship, business prowess, and opportunities in

todays market.

REASONS FOR SUCCESS

The Anderson Entrepreneurs Conference is now in its 24th year

and boasted over 400 attendees for its 2008 conference. Phil-

ippe Lavertu and Carlo Soracco are two of Andersons students

who are heavily involved with the planning of this event.

Soraccos MBA focus is in Entrepreneurship and TechnologyManagement, while Lavertus is in Entrepreneurship and Fi-

nance.

When the two graduate students were asked about what has

made the event so successful and lasting, Lavertu and Soracco

stated, Attendees come to this event religiously, and the rea-

sons range from the different and great keynote speakers, re-

peat attendance and support from alumni, and even good

food.

Anderson School of Managements


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Another large part of the events annual success is its

excellent management, which the two men credit

that to the handoff of transfer. This is important to

maintaining the success and atmosphere of past

events as event managers pass on their experience

to intern managers who will manage future events.

EVENT SPEAKERS

Keynote speakers are critical to the event and this

years speakers are Richard Rosenblatt, CEO of De-

mand Media, and Greg Waldorf, CEO of eHarmony.

These men possess several vital entrepreneur skills

such as innovation, intelligence, and business acu-

men. Greg Waldorf was chosen because he created

an innovative way to bring people together and he brought his own scientific method to his business application, said

Lavertu and Soracco. Waldorf has been with the company since its inception in 2000 and also had previous experience

working with high growth companies in many different aspects ranging from investor to executive. Richard Rosenblatt

was the CEO of Intermix as well and started demand media, which has been the aggregator of social media such as

MySpace, Facebook, and Twitter. He helped sell this idea to Myspace, and engineered its sale to Newscorp, said

Lavertu and Soracco. Rosenblatt is deemed by many as an Internet entrepreneur and visionary as he has built, oper-

ated, and sold several Internet and media

companies. The combined value of these

companies exceeds the $1.3 billion thresh-

old. These two men have been incredibly

successful in brand development while

using the experiences and skills they have

learned from the field of business.

REASONS FOR UNDERGRADUATE ATTENDANCE

While this event may seem like it is focused on MBA students and individuals with professional experience, this is an

excellent opportunity for undergraduate students as well. When asked why undergraduate students unsure of their

career plans should attend this event, Lavertu and Soracco gave several intriguing reasons. This event has profession-

als from many different fields and gives students instant access to the company they want to work for, exposure to

various career fields, mentorship, creation of synergies with attendees from different schools, and even chances to net-

work, responded Lavertu and Soracco. With the current state of todays economy and job market, Lavertu and

Soracco state that the time immediately after graduation is the best time to pursue entrepreneurship. The two also go

on to say, It forces individuals into their passions, and allows them to brainstorm innovative and new methods to cre-

ate revenue during these difficult economic times. They conclude by saying the current economy still has many op-portunities available to aspiring entrepreneurs as many goods have experienced price reductions, and if entrepreneurs

can stay afloat during the recession, they will be able to ride the wave of success in the future. Many undergraduate

students pursue careers in various fields upon graduation but entrepreneurship is an interesting and different alternate

route. The 2009 Anderson School of Business Entrepreneurs Conference provides insight into and encourages the de-

velopment of business expertiseand skills necessary to take the road less traveled.

BBR Volume 2 Issue 10

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