Wine is a product that exudes elegance, class and strict regulations. For many wine producers, centuries-old regulations continue to guide their production and marketing. The rise in New World wine industries like the U.S., Chile, Australia and others—which are subject to far fewer rules— is threatening the success of Old World wine industries in Europe.
Kevin Fandl, associate professor of Legal Studies in Business at the Fox School of Business, delved into this topic to uncover how regulation affects the wine market. His research was supported by Temple University’s Center for International Business Education and Research (CIBER).
“The idea was to look at both sides of the regulatory coin. That is, what impact do regulations have, positive or negative, on innovation in the wine sector,” says Fandl. “On the other end, how do regulations affect what consumers have access to when they select their wines and how do those preferences drive demand?”
To answer these questions, Fandl reviewed decades of winemaking legislation.
So how do Old World wines and New World wines differ? According to Fandl, “The difference is the history. The New World hasn’t been making wine [for centuries]. So, it hasn’t needed to regulate it except in the last fifty years. The Old World is fighting against centuries of legislation meant to protect the quality of their wines—regulations that are now constraining their ability to effectively market their products.”
This history that European wine companies are battling comes in the form of hundreds of years of inhibiting policies. From specific labeling guidelines to mandatory classifications of grapes, the European Union (EU) enforces strict protocols for its wine manufacturers.
“The regulations are meant to maintain high prices and high quality,” Fandl says. “That protectionist view is limiting European producers to older generations of wine drinkers. It’s ignoring their ability to innovate and sell to millennials.”
As Fandl wrote in his paper, “Regulatory Policy and Innovation in the Current Wine Market,” published in the American University International Law Review journal, millennials are the largest generation to consume wine since the baby boomers. “They are consuming, on average, 3.1 glasses of wine per sitting.”
To better understand what these average consumers of wine are looking for, Fandl conducted an online survey of 500 American wine-drinkers.
“Millennials seem more interested in the story behind the wine. They also like innovation; for example, screw caps, interesting labels and descriptions, or new marketing techniques.”
New World wine industries like the U.S. and Chile are implementing these techniques, while Old World wine companies are locked into traditional production and marketing techniques, either due to
strict regulations or an unwillingness to adapt. From his research, Fandl determined that “innovation is something that consumers demand” and the regulations in the European wine sector are preventing that innovation.
So, what impact do these findings have on the wine market?
“I hope it speaks to governments to help them appreciate the flexibility that a loose regulatory structure gives to their wine sectors and how important those wine sectors are to their economic development,” Fandl explains.“I also hope it speaks to vineyards to show that you really need to innovate if you want to stay alive in the current wine market.”
This isn’t the end of Fandl’s research, either. He will be continuing this analysis by bringing in other countries and identifying the specific policies they should focus on changing.
If there’s any hope for this regulation reform, Fandl says Old World wine companies need to “push for change. They need to advocate for regulatory change through their government, to allow them more flexibility.”
From Fandl’s findings, it’s evident that the Old World wine industry needs some flexibility if they want to stay competitive. If consumer demand is changing, it’s crucial for the product to change with it.
“Let consumers make the decision on what they believe is quality,” says Fandl.
Learn more about Fox School Research.
Temple University’s Center for International Business Education and Research (CIBER), housed within the Fox School of Business, has secured an additional four years of federal funding. This represents the fifth such grant for CIBER, a fixture at Temple since its inception in 2002.
Temple is one of only 15 such centers in the country to receive this prestigious U.S. Department of Education grant. Out of the field of other highly regarded internationally-focused business schools, Temple was the only university in the northeast region to receive funding.
“With five CIBER grants so far, this cements the position of the Fox School and Temple University at the apex of International Business programs in the world,” says Dr. Ram Mudambi, principal researcher of Temple CIBER. “Our program continues to excel in all realms of International Business, from innovative programs to cutting-edge research focusing on both the world and our Philadelphia backyard, working with a global network of researchers as well as with U.S. government and our local Mayor’s office.”
Executive Director and Principal Investigator Dr. Kevin Fandl worked to ensure that the grant benefits recipients across the university and throughout the region. “We coordinated with several schools outside of Fox to identify opportunities to create synergies around international business and language access. Thanks to this grant, both students and faculty will have broader access to the many international programs available at Temple, including global immersions, faculty development in international business seminars, online language training, and a new podcast series meant to generate new interest in international business issues.”
The grant allows for continued external partnerships between Temple CIBER and the Philadelphia U.S. Export Assistance Center, the World Affairs Council of Philadelphia and the World Trade Center of Greater Philadelphia, among others, and with local community colleges.
“Our partnerships are integral in being able to afford our faculty and students the opportunity to learn from a valuable international community and to share our knowledge with them, both at home and abroad,” says Ronald Anderson, interim dean of the Fox School of Business and School of Sport, Tourism and Hospitality Management.
About the Program
The Centers for International Business Education and Research (CIBERs) were created by Congress under the Omnibus Trade and Competitiveness Act of 1988 to increase and promote the nation’s capacity for international understanding and competitiveness. Administered by the U.S. Department of Education under Title VI, Part B of the Higher Education Act of 1965, the CIBER network links the manpower and technological needs of the U.S. business community with the international education, language training, and research capacities of universities across the country. The 15 CIBERs serve as regional and national resources to business people, students, and teachers at all levels. This grant program adheres to the Education Department General Administrative Regulations (EDGAR) Title 34, Code of Federal Regulations (CFR), Parts 74-86 and 97-99.
About the Fox School of Business at Temple University
Established in 1918 and celebrating its centennial, the Fox School of Business at Temple University is the largest, most comprehensive business school in the Philadelphia region and among the largest in the world, with more than 9,000 students, more than 220 full-time faculty and more than 60,000 alumni around the globe.
The Fox School has a proud tradition of delivering innovative, entrepreneurial programs for the past 100 years. With facilities that provide access to market-leading technologies, the school fosters a collaborative and creative learning environment. Coupled with its leading student services, the Fox School ensures that its graduates are fully prepared to enter the real-world job market.
The U.S. Economic Development Administration (EDA) of the U.S. Department of Commerce has awarded The World Trade Center of Greater Philadelphia (WTCGP) a $1M, three-year matching grant to implement key strategies of the Greater Philadelphia Export Plan. As part of the nationwide Global Cities Initiative (GCI), supported by the Brookings Institution and JPMorgan Chase, the plan aims to increase the number of exporting companies and accelerate regional job and revenue growth through economic exports. Specifically, the plan will build capacity among the region’s small and medium-sized enterprises (SME’s), and bolster export growth in the Greater Philadelphia region’s health and professional services, architecture, design, engineering, and construction management companies.
Academic partnerships are key to the success of the GCI. Partners, such as Temple University’s Fox School of Business, help supply research to uncover data, trends, and analysis that directly impacts the professional and academic international business community. The end goal for such partnerships are to fuel economic growth, help companies’ increase their sales, and attract more investors in key industries for the region.
A recent study from Team Philadelphia, with Temple University leading the research and data analysis, sought to support GCI and uncover the global network analysis of the region. According to Brookings, Philadelphia ranks fifth among U.S. cities in terms of pharmaceutical exports. The region’s strengths in R&D and the innovation is needed for biotechnology, according to Dr. Ram Mudambi, professor at the Fox School, and his team. Philadelphia is higher up on the value chain, focusing in innovation rather than manufacturing. It remains a challenge for cities to learn how to balance this expertise at innovation with the desire for job creation at all levels, which would historically have been supported by manufacturing. In addition, Dr. Bertrand Guillotin, professor and academic director at the Fox School, contributed to the data collection efforts, which were crucial for the GCI’s first annual Philadelphia report.
For Pennsylvania, promoting exports from Philadelphia is a key economic development tool. It leads to job creation, higher wages, more stable companies, and a diverse market base for firms. Imports play an important role too. The United Kingdom, Switzerland, Germany, and Ireland are key trading partners both in terms of exporting and importing, which demonstrates that Pennsylvania is part of the pharmaceutical global value chain, interacting actively with these key country partners.
Temple University’s Center for International Business Education and Research (CIBER) is currently implementing more than 70 events to improve U.S. competitiveness in the world marketplace and to produce globally competent students, faculty, and staff. Temple CIBER at the Fox School has received a grant from the Department of Education since its inception in 2002 and is one of 17 such centers in the country. The CIBER grant supports academic research for the international business community, including helping produce research that meets the needs of global business objectives.
The program recognizes these figures in its efforts to help U.S. companies connect to global markets:
- 95% of the world’s consumers live outside the U.S.
- <1% of America’s 30 million companies export
- 58% of U.S. companies that export do so to only one country
Learn more about the Fox School’s programs in International Business.
Temple University’s Fox School of Business has partnered with the Philadelphia United States Export Assistance Center, U.S. Commercial Service, to offer a series of courses on American exporting.
This spring, Temple’s Center for International Business, Education, and Research (CIBER) will host Export University, a series of half-day exporting courses designed to help U.S. companies begin or expand an export initiative, and to gain increasing skills to promote international exportation.
The course scheduled for May 10 is ideal for companies new to exporting that need tools to begin and avoid costly mistakes, as well as companies currently exporting that need guidance on developing or refining their export plans to further expand sales to foreign countries.
“Assessing export readiness, evaluating export potential, and implementing export strategies are essential elements of international business within today’s global marketplace,” said Dr. Arvind Parkhe, Chair of the Strategic Management department at Temple’s Fox School of Business. “Export University addresses these areas, and so much more, which makes these sessions, made possible through the Fox School’s partnership with Philadelphia United States Export Assistance Center, U.S. Commercial Service, so unique.”
More on Export University:
- The May 10 session, “Export 301: Developing Strategic Direction,” will be geared toward product adaptation, website optimization, and advanced topics.
Before attending Export University, executives with CAD Import Inc., a Delaware-based company that also has a private label manufacturing arm called Pharmadel, had drafted and presented an export plan in order to begin their sales outside of the United States.
“Export University helped us realize all of the different aspects and requirements that must be met before your company can even think about exporting,” said Ana Sofia De Leon, operations director of CAD Import Inc. “Temple’s Export University made all of the resources available, which – for a small company like CAD/Pharmadel – is critical.”
Each session has a $45 registration fee for each session. Information regarding a reduced fee is available upon request. For more information, and to register, contact the Philadelphia U.S. Export Assistance Center at (215) 597-6101 or Office.Philadelphia@trade.gov, or visit Export University’s website.
Roughly 800,000 people flooded Philadelphia in late September for a visit from Pope Francis and the World Meeting of Families, a global gathering of Catholics.
So… now what?
An event jointly sponsored by Temple University’s School of Tourism and Hospitality Management (STHM) and Temple’s Center for International Business Education and Research (CIBER) considered that very question.
Gathering Philadelphia’s leading minds in tourism, international business, and government at its event, titled, “The World Meeting of Families is Gone: Now What?”, STHM and CIBER aimed to address how Philadelphia could leverage the international exposure and media focus it received from the World Meeting of Families in order to further its status as an elite host for future global events.
“This was our finest hour and it can be again,” said Pat Ciarrocchi, the event’s keynote speaker and a longtime Philadelphia news anchor who covered the World Meeting of Families.
“The World Meeting of Families brought Pope Francis to Philadelphia and, along with him, more than 15,000 reporters representing media outlets from around the world,” said Dr. Elizabeth H. Barber, STHM Associate Dean. “This event generated an unparalleled level of visibility to viewing audiences that wouldn’t have otherwise been exposed to what Philadelphia has to offer. In order to best capitalize on the tourism opportunity created by the World Meeting of Families, we as a city will need to maintain the open dialogue we’re initiating today through this event.”
In examining the future of a post-Pope Francis Philadelphia, Philadelphia Convention & Visitors Bureau (PHLCVB) CEO and President Jack Ferguson nodded to the efforts by Desiree Peterkin Bell, director of communications for the Office of Philadelphia Mayor Michael Nutter, the Mayor’s Office, and Visit Philadelphia in building upon the city’s strengths.
“We can dissect this forever, but what we will learn is what works,” Ferguson said.
In the days and weeks following the WMOF, Ferguson said he observed how the event boosted the reputation of the city’s businesses, for how well they worked with a large influx of tourist traffic. This positive interaction, Ferguson said, won over consumers.
To do that, Meryl Levitz said she designed a faith-based marketing strategy that invited those looking for love and family with the pope to experience it in Center City, too.
“We watched, we listened, and we helped tell Philadelphia’s story,” said Levitz, CEO and President of Visit Philadelphia of the campaign that featured local catholic organizations, bible studies and family-friendly events.
For Brian Said, executive director of the Tourism Division of PHLCVB, Bell’s efforts to remove the walls between the pope and those wishing to see him resonated with Philadelphia’s foreign visitors. Accessibility to Pope Francis, according to Said, was what put Philadelphia on the map as a global city that is welcoming to all.
“We cannot arm-wrestle New York, and we cannot arm wrestle D.C.,” he said. “We have to work together to show Philadelphia is both safe and fun.”
Zabeth Teelucksingh, executive director for Global Philadelphia, looks forward to that “next great event,” as Ferguson called it. Global Philadelphia works to show foreign travelers the city’s significance as a birthplace of democracy and innovation. Philadelphia has the potential to be the next World Heritage City, which Teelucksingh said is a highly marketable title in countries looking to experience a quintessentially America city. Should Philadelphia become the next World Heritage City, it will enjoy increased property value, stature and economic gains, Teelucksingh said.
All of the event’s panelists agreed that the city’s next steps must be geared toward reminding the world that Philadelphia has successfully managed a world-class event once, and is capable of doing so yet again.
“No one else could have been at the helm of this event,” Bell said. “We’ve done big events and we do big events well. We’re on the map.”
Local R&D Won’t Help You Go Global
For the second time this calendar year, Frank S. Speakman Professor of Strategic Management Dr. Ram Mudambi has been published in HBR. He and PhD candidate TJ Hannigan published, “Local R&D won’t help you go global,” one of the recent outputs of the iBEGIN research program that Mudambi is spearheading.
Innovation isn’t suffering in the Motor City
Despite Detroit’s downtrodden manufacturing reputation, the city is a leader in American innovation, in regard to patent output, according to the research findings of Dr. Ram Mudambi, Professor of Strategic Management at Fox. Mudambi covered this topic and more in a recent radio interview with the Michigan Business Network’s globalEDGE Business Beat show.
Business meetings in Colombia seldom begin promptly, said Dr. Kevin Fandl.
How does he know this? An Assistant Professor of Legal Studies at Temple University’s Fox School of Business, Fandl has studied in Colombia. He traveled there in 2006 as a Fulbright Scholar, taught there, investigated its informal economy, and even wrote his PhD dissertation on his experiences there.
“You never walk into a business meeting (in Colombia) and start on time,” Fandl said to a gathering of Global MBA students. “Small talk can go on for 90 percent of the meeting and, in the last 10 minutes, you need to make your points and sign your deal.
A host of distinguished guests spoke to Fox’s second-year Global MBA students Feb. 12-13 at Alter Hall, sharing wisdom and tips in a panel-discussion format during a two-day workshop in preparation for the students’ upcoming Global Immersion trips.
Divided equally into two groups, the 42 Global MBA students will spend two weeks in either the South American nations Colombia and Chile, or in Turkey and Morocco, of the Middle East/North African (MENA) region. While there, the students will meet representatives of local companies and firms, participate in case studies and learn the entrepreneurial ecosystems of what Fox’s Dr. MB Sarkar called “transitional economies.” Last year, this very cohort made Global Immersion trips to India and China, two of the most promising BRIC nations.
“Among the competencies that are relevant in today’s market, developing contextual intelligence is being rated as one of the most critical for MBAs,” said Fox School Dean Dr. M. Moshe Porat. “We at Fox believe that, in order to develop the next generation of global leaders, we need to learn from the innovative business models that are being seeded in these emerging markets.”
Sarkar, Fox’s Global Immersion Academic Director, and Rebecca Geffner, Fox School’s Director of International and Executive Program, assembled dynamic panels with marquee guests related to both the Latin America and MENA regions.
- Ahmet Kindap, of Turkey’s Ministry of Development
- Marwan Kreidie, Founder and Executive Director of the Philadelphia Arab American Development Corporation
- Z. Joe Kulenovic, an international economist
- Christian Rodriguez, Consul-General of Colombia
- Laura Ebert, International Trade Specialist with the United States Department of Commerce and International Trade Administration
- Ali Solyu, of Cameron University in Oklahoma, and Ipek University, in Ankara
Sarkar and Geffner kicked off the two-day event with opening remarks, discussing the importance of immersing oneself into the culture and business practices of the countries they’ll visit, while offering insights into what the Global MBA students might expect during their travels.
Fandl served as moderator on a guest-speaker panel into the history, culture and politics of Latin America, of which Rodriguez and Kulenovic were guests. The panel informed students about the business climates and entrepreneurial ecosystems of Colombia and Chile. Fandl and Rodriguez offered the graduate students advice on conduct and decorum in a business atmosphere, while introducing themselves to professionals.
“In Chile and Colombia, know about their food, wine, culture, weather and definitely know your (soccer) teams,” Fandl said.
“Chileans and Colombians know when you are telling the truth about yourselves,” said Rodriguez. “Know your story and be comfortable. That will help you out 70 percent.”
Other guests on the panel included: Mitchell Mandell, attorney at White & Williams LLP, and Laura Ebert, International Trade Specialist with the United States Department of Commerce and International Trade Administration.
Later on Day 1, Global MBA Academic Director Dr. TL Hill presided over a panel discussion into the business climate and entrepreneurial ecosystems in the MENA region. The panel featured: Kreidie; Jean Abinader, COO of the Moroccan American Center and National Association of Arab Americans; Kindap from the Turkish Government and Joe Kulenovic, a consultant with the World Bank who is researching how cities in emerging countries become globally competitive.
The speakers conveyed to Global MBA students a pervasive gender inequality issue, mentioning the infrequency with which women are integrated into the workforce. Guests on the panel also suggested that international trade has significant growth potential in both Turkey and Morocco, which are natural bridge countries due to their geographic positions.
Porat and Deputy Dean Dr. Rajan Chandran provided keynote addresses. Additionally, Chandran will join Global MBA students, Sarkar and Geffner in Morocco for a one-day entrepreneurship conference being organized in partnership with Al Akhawayn University in Casablanca, as part of the Global Immersion experience.
“Our sincere hope is that this conference will become a seed for Fox’s intellectual engagement in the region, and our contribution to helping the local economies grow,” Chandran said.
Global MBA student Emily Fox, who majored in Spanish as an undergraduate, chose the Global Immersion trip through Colombia and Chile for obvious reasons.
“In the future, I see myself conducting business in a Spanish-speaking country, so I wanted to be exposed to how negotiations are handled in those countries,” said Fox, who is slated to graduate in May.
During the information sessions, students were asked to “prep now,” so they could immediately take advantage of the experience once their flights had landed.
“You have to get to know the people, figure out your target and set an idea of what you wish to accomplish,” Rodriguez said.
For Global MBA student Andy Oakes, learning about contrasting business practices and emerging global markets are the benefits of gaining international field experience.
“Long-term I’d like to work outside the United States in technology consulting,” Oakes said. “It’s important in the globalized economy that exists today to become immersed in multiple cultures.”
“Global Immersions are an extension on the program,” said Neeharka Damea, another Global MBA student. “The opportunity to experience multicultural backgrounds was the reason why I chose the Fox Global MBA program.”