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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (April 9, 1980)
Former Harvard Dean to address MBA banquet A former dean of the Harvard Business School who is also a for mer Aggie is coming back to Texas A&M to address the MBA Associa tion of the College of Business Administration. Dr. Lawrence E. Fouraker, '47, will be the featured speaker at the Second Annual Invitational Case Competition Awards Banquet April 12. Fouraker, who also received his MS degree from A&M in 1948, will address graduate business stu dents and faculty members on the use of the case method. The ban quet begins at 7 pm in the Ramada Inn Ballroom. (See related story page 1.) Fouraker received his Ph.D. Dr. Lawrence E. Fouraker from the University of Colorado in 1951 and holds an honorary mas ter's degree from Harvard Univer sity. In addition to his various teaching and administrative duties, Fouraker is on the Board of Directors of nine organizations in cluding Citicorp and Citibank, N.A., and The Gillette Company. Study predicts corporate failure By TED TREAT Business researchers Drs. Gary Giroux and Peter Rose of Texas A&M University are developing a computer model that could predict corporate failure as much as seven years before the failure occurs. Previous studies have only been successful in making these predic tions one to three years in adv ance. The ability to predict corporate failure, however, has the implica tion of eventually guaranteeing the company's bankruptcy. Although Giroux acknowledged that the study could be a "kiss of death," he said that the company survey would be mostly beneficial because it would help determine the type of "corrective action" that is needed to save the enterprise. Giroux and Rose have achieved a 80 to 97 percent success rate in predicting corporate failures but so far their study has been entirely post mortum. Rose, a professor of finance, ex plained that part of their success is because of their access to COM- PUSTAT Industrial Files to pre pare their data bank. COMPUS- TAT computer tapes contain the basic financial records of a select group of major U.S. corporations. The 18 variables used in the study included evaluations of pro fits, liquidity, inventory, the mix of sources of funds for the company and the rates of return on invested capital. Woman exec to hold presentation Marie Tarvin Garland, president of Sun City Delivery in El Paso will visit the College of Business Admi nistration April 15 & 16 as part of the College's BUSINESS WEEK activities. Garland started her business, a multi-faceted delivery service, in 1969. Since that time, it has not experienced a growth less than 30 percent each year. Garland will conduct a presenta tion entitled "Starting a Small Business: Career Development for Entrepreneurs" at 9 am April 16 in Room 137 of the MSC. All interested persons are en couraged to attend. Prof backs oil companies By KYLE KNOX Recent research in the area of oil company profits has brought out facts that are contrary to current popular belief, according to Dr. Gerry Keim, associate professor in the Department of Management at Texas A&M Univer- s ity. . . , Keim's research articles have appeared in regional newspapers and his brief on oil company profits was read into the Congressional Record — Senate. A public policy expert, Keim has charged the media with slanted cover age of the oil industry "Contrary to popular belief, oil company profits are not excessive," he said. "In many ways, the oil companies don't do any better than the average Fortune 500 com panies, and a lot worse than some." Keim found that an individual investing in the broad casting industry in 1978 would have an average of 33.3 percent return on investment, as compared with a return of 11.77 percent in petroleum refining. "If oil company profits are excessive, then broadcasting profits must be obscene," he said. Using the two common ways of measuring profitabil ity, return on sales and return on stockholders equity. Continued page 4. Companies to Participate in April 16 and 17 "Career Fair" Recruiting interests by college majors J. B. Goodwin Realtors, Austin Business majors, Real Estate majors, and anyone interested in Real Estate as a career. Cafeterias, Inc. All business majors and agriculture majors. H. E. Butt Grocery Co. Marketing majors, Management ma jors, general business majors. Dow Chemical U.S.A. All disciplines interested in Marketing careers. i Getty Oil Company Accounting majors, Finance majors, and Business majors with a minimum of 12 hours in Accounting. Main Hurdman & Cranstoun BBA's, MBA's and MPA's in Accounting and Tax. IBM Corp. Most Business, Engineering, Science, and Liberal Arts majors. Marathon Oil Company Accounting majors and Finance ma jors with a minimum of 15 hours in Accounting, for the Houston Division. Cullen Center Bank Finance and Accounting majors. Continental Pipeline Co. Finance, Management and Economics majors. Ford Motor Credit Company All Business majors. Touche Ross Accounting majors Arthur Young Accounting majors International Harvester Marketing and Management majors, BBAs. City of Houston, Civil Service Div. All Business majors, Accounting ma jors, Computer Operators, En gineering majors and Chemistry majors. Exxon Company U.S.A. Accounting majors and Finance ma jors with 20 or more hours in Accounting. ! Burroughs Corp. Business majors, Computer Science majors and Math majors. Bank of the Southwest Finance and Accounting majors. Van Waters & Rogers, a division of Univar Accounting majors, Management ma jors, Marketing majors arid Economics majors. Lone Star Gas Co. Business majors Tenneco Oil Exploration & Pro duction Accounting majors United Energy Resources, Inc. Accounting majors, Finance majors, Computer Science majors and Engineering — Civil, Mechanical, Electrical and Tecnology — majors. Safeway Stores, Inc. All business majors, any college de gree, students interested in a retail career with Safeway. Penn Mutual Life Insurance — Leroy D. Gordon & Assoc. Business majors, Psychology majors and Sociology majors. Gulf Oil Corp. Accounting majors. Finance majors, Management majors and General Business majors with 9 or more hours of Accounting. Houston Lighting and Power Co. Marketing majors, Management ma jors with strong technical back grounds, Finance majors, Accounting majors, Computer Science majors with business and engineering back grounds. Peat, Marwick, Mitchell & Co. Accounting majors. Arthur Andersen Accounting majors, Finance and Mar keting majors with Accounting courses and Computer-oriented majors. Brown & Root Business majors Price Waterhouse & Co. BBAs and MBAs in Accounting. Seidman & Seidman BBAs with major in Accounting Ernst & Whinney Accounting majors Coopers & Lybrand Accounting Majors Payless Cashways — Furrow's Bldg. Supplies Marketing majors, Management ma jors, general business majors, indust rial business, Finance majors. Procter & Gamble Marketing majors Companies to interview co-op students The Cooperative Education Office of Texas A&M University will hold special co-op interview days on April 17 and 18. A number of co-op employers will be on campus during that time to conduct interviews with pros pective co-op students for both summer and fall 1980 work terms, said C. Wayne Terrell, co-op coor dinator for business adminstra- tion. Business students who wish to interview during this time must first complete the proper paper work and undergo screening by Terrell. Interview sign-ups begin Tues day, April 8, Terrell said, stressing that the students must first obtain a Co-op Interview Authorization Card from him prior to registering for interviews at the Placement Center. Among the firms scheduled to participate are: Comptroller of the Currency (U.S. Department of Treasury), Dresser Industries, Marathon Oil Company, Brookhaven Country Club (Dal las), Dillards, Sakowitz, and the U.S. Fish and Wildlife Service. Interested students should con tact Terrell for further information (845-4711). Insurance exec to address banquet Oscar L. Newton, Jr., vice presi dent of the American General Life Insurance Company, will address the Undergraduate Awards Ban quet April 16 as part of the College of Business Administration's BUSINESS WEEK activities. The banquet begins at 7 pm at the Brazos Center. Guests include the company representatives attending the "Career Fair," facul ty and staff of the College of Busi ness, and several hundred under graduate business students. (See related story page 1.) Newton has had 30 years of in surance experience with nearly 19 at American General. In his pre sent capacity as vice president, he works with the president on spe- Mr. Oscar L. Newton, Jr. rial projects and serves as a fre quent spokesman for American General, for the life insurance in dustry and for private enterprise. Newton has addressed state and national conventions, trade asso ciations, civic groups and cham bers of commerce in more than 30 states and in seven foreign coun- , tries. JOHNSON SUPPLY Offering service in: ★ Air conditioning ★ ★ Refrigeration ★ ★ Heating ★ 713-781-1100 Houston, Texas The Business Page 3