The modern global economy has created tremendous opportunities for many companies to expand their customer base and reduce costs through international trade. The UTC College of Business is responding by creating a program that will equip local students and businesses with the training to engage in international trade.
Peter Poggi, vice president of strategic sourcing for Burner Systems International, brings his many years of experience into the classroom with the class “Exporting and International Trade,” which was offered for the first time in 2009 as a component of the college’s undergraduate and MBA programs. Peter holds an MBA from Cornell University; his career includes 20 years of international experience with electric utility products and, most recently, with gas components representing his company BSI in France.
“After returning to Chattanooga, I wanted to plug into the community and thought of an international trade and exporting class at UTC,” Poggi says. “Every year, communication technologies get cheaper and the world becomes a bit smaller. Globalization is a trend that continues to intensify, bringing with it both winners and losers. Exporting has many benefits; it not only increases sales, but also helps a company globalize and compete better in the international marketplace. Despite this, the U.S. Department of Commerce finds that only one out of every three companies in the U.S. who could export actually does. UTC’s College of Business students are helping local companies make this transition. With the current economic challenges and environment, there is no better time than now.”
The university’s first class, which was offered in the spring, generated impressive results. Eight students participated in four projects with companies in the region. The students were able to save $430,000 in export logistics for one project, increase sales by 7 percent in another project, and start an import business with expected revenues of $600,000.
Student Whitney Medlen initiated the importing of pottery from a Filipino company, and the company has contracted with Home Depot and other retailers to create long-term, repeat business. Dustin David and Mandy Mormino developed a website and Internet sales program for Unified Technologies, a metal fabrication company in Chattanooga, and an increase in overseas sales is expected.
Andy Burnett, Chareonsilp Preeprem and Cody Moseley researched opportunities in the Brazilian skin care market for Chattem and recommended strategies and local partners to facilitate that market entry. Scott Hensley and Chaninath (Tui) Junmayca reviewed harmonized codes for exporting and investigated various ocean freight companies for Cubic Transportation Systems of Tullahoma, Tennessee.
“The class really wasn’t like anything I had taken before,” says Burnett, a senior finance major. “You are essentially on your own with your company, and the entire grade is based on what value you can bring to that company. You figure out what is going to work and make the best thing happen. There was a point where it came down to being kicked out of the nest and flying or falling.”
Hensley, who is pursuing his MBA, adds, “This class was not academic like most college classes. It was very hands-on with the companies. We had a lot of free rein to choose a company and a project with that company. It was nice to not have something that was already set in stone for us to do. It was a unique experience to ‘go fishing’ for local companies to work with and then communicate internally among different employees to accomplish specific goals.”
Taking the educational experience beyond the walls of the classroom provides not only a rewarding opportunity for the students, but also a tangible benefit for the business community.
According to Michael Owens, assistant dean of graduate programs for the College of Business, such interaction between the academic and the business community creates a very valuable learning experience for the students and a unique benefit to the participating businesses – a true win/win.
“Peter had a really good idea with a three-pronged approach,” says Owens. “This includes the traditional classroom lecture on exports, then going into research mode to look at local businesses that would be candidates for exporting but aren’t doing it today, and then going to these companies to help them develop and implement a plan. When you put things into action, it really makes the experience come alive for the students.”
In addition to the academic and project aspects of the 2009 class, local business owners were invited to speak to students about their experiences. Chet Tschetter, a member of the Service Corps of Retired Executives (SCORE), shared his experiences from 15 years as the owner of an import/export business in Hong Kong. Celeste Longwith, a member of the Chattanooga Manufacturers Association, assisted in contacting area companies.
The 2009 results have impressed Poggi, who looks forward to offering
“Exporting and International Trade” courses in the future. Chattanooga business owners interested in participating in the 2010 program can email Peter Poggi at Peter-Poggi@UTC.edu.