All posts by Tait Sorenson

Overview of the SPC Study Abroad program in Costa Rica by Tait Sorenson

This Study Abroad trip exceeded my wildest expectations! The program was extremely well hand-crafted to provide a spectacular perspective into the international way of doing business in Costa Rica.  If I had to change anything, it would be nothing.  From the special group of students, to the incredible professor, and to the carefully designed itinerary, every aspect was a mind-altering experience.  I could not help but be overwhelmed by two constant themes which are “Pura Vida” and sustainability.  “Pura Vida” translates into pure life, however; it is more of a mentality that is not limited to any one culture.  “Pura Vida” is an expression that seems to be the Costa Rican motto and is reiterated at every hello and goodbye.  It is a means to remind one another that life is great and no matter what happens we can all be happy and make the most out of our lives.

Lastly, sustainability is definitely the most important central theme the Costa Ricans hold dear.  Unlike large countries, Costa Rica does not have natural resources like oil, coal, and gold, therefore; Costa Rica must conserve and recycle everything and anything they can.  Every single Tico and Tica, from large businesses to small convenient stores, truly live by this with every breath he/she takes.  This defines Costa Rica has the greenest country on the planet and explains how a country with no natural resource enjoys 92% of their energy from renewable sources. As a Gringo, heading back to the USA, I cannot help but to ask, ”How can I change the world?” To myself, the Costa Rican view on sustainability is contagious and is energizing as I attempt to spread “Pura Vida” to my friends, colleagues, and family.

Our visit to the Intel Assembly Plant by Tait Sorenson

On our last day of the program, we visited the Intel Assembly Plant.  Once again, I am not the brightest crayon in the box in terms of understanding the internal components of computers.  Nevertheless, I jumped in with both feet as the IT Service Ops Manager, Marco, enlightened our group on the why Intel chose Costa Rica, and moreover illustrated how Intel contributes to the local economy.

Initially, Intel had all their eggs in the Southeast Asia market and needed a new assembly and test facility to maintain its leadership position.  Intel began a comprehensive search for the right location to expand its international manufacturing capabilities.  In 1996, Intel decided to build their new plant in Costa Rica due to a few key reasons including that the government offered investment incentives in the Free Trade Zone, the education in Costa Rica was/is strong, and the roads from the plant to the international airport were in excellent condition. In terms of foreign investment, Intel was a pioneer in Costa Rica and is recognized as a catalyst of new foreign companies investing in this beautiful country.  Although the numbers vary, Intel is directly responsible for up to 10% of Costa Rica’s total GDP and accounts for 20% of the total exports.

Furthermore, Intel recognizes the importance of giving back to the local economy.  Intel has invested over $800 million which is seven times the initial commitment and has purchased $120 million in local goods in the last 3 years.  Also, Intel has purchased over 10,000 books for kids in 2011 alone and has built after school clubhouses for 3,000 kids in Alajuela. Another way that the Intel employees give back is that 60% of the workforce averages 30 hours of community service.  According to surveys, 92% of the Costa Rica population considers that Intel supports the local economy.  In a nut shell, Intel decision to build their new plant was absolutely vital as Costa Rica continues to attract even more foreign investments.

Dos Pinos by Tait Sorenson

Now it is Wednesday, I can’t believe how fast the days have flown by!  This morning we toured the Dos Pinos operation factory.  It was fascinating to discover how this 65 year old company started with only 20 employees to 5000 employees and distributes 554 different products.  It is now recognized as the number one dairy company in Latin America and is beginning to enter the markets in North America.

To begin with, Dos Pinos has a distinct connection its employees/suppliers as well as its community.   Dos Pinos is a private company and only allows suppliers to become shareholders.  These suppliers must hold an extreme high regard to quality and meet or exceed a quota.  At Dos Pinos, a strong relationship with the suppliers is everything.  Dos Pinos provides any type of support the suppliers need to meet the quota while maintaining quality.  These suppliers are able to repay Dos Pinos for the support they receive with the very milk that their cows produce.  On a side note, it is comical that some suppliers will play music for their cows.  Supposedly, the music makes the cows happy and they produce more milk.

Dos Pinos is also an active leader in sustainability.  Dos Pinos has a large recycling program that encourages schools to recycle their products, and in return Dos Pinos provides the schools with supplies like tables, paper and toys.  In addition, while we toured the facility many of us felt very warm and were quick to complain.  After a short while, our hostess explained that it is not necessary to cool large hallways with high ceilings because the employees only spend a fraction of their day in the hallways most of their workday in their cooler offices.  Wow, I think a lightning bolt struck all of us at the same moment.  No wonder much of the USA is in the midst of an energy crisis.  Would we be if we only cooled the smaller room that we spend 98% of our day, instead of cooling the largest rooms that we only spend 2% of our day? She continued to explain that the Dos Pinos building is specifically designed to allow a nice air flow throughout the large hallways without wasting precious energy.  The more time I spend in this mind-blowing country, I realize how much energy I waste and it is truly the small/large luxuries that I need to eliminate out of my vocabulary.

The Rainforest! by Tait Sorenson

La Paz Waterfall Garden

On Tuesday, we headed up the mountain to explore the Poas Volcano and the La Paz Waterfall Garden.  Unfortunately, we were not able to visit the volcano due zero visibility.  Evidentially, it is very rare for the weather to allow for a glimpse of the volcano.  I did read that if a person visited the volcano on a clear day, one could see both the Pacific Ocean and the Caribbean.  Anyway, so off we went up the mountain and deep into rainforest.  The further we drove out of the city and higher in elevation we rose, the greener every plant seemed to be as we entered the rainforest.  As a former resident of Montana, I felt more and more at home. Finally, we arrived at the La Paz Waterfall Garden.  The air was fresh although slightly thin.  We made our way through a small gift shop and out the back of the store.  This is where the rainforest truly began for me.  A small paved trail rolled downhill and lead to all the exotic birds and animals’ exhibits that claim the Costa Rican rainforest home.  The first on list were the brightly colored toucans that were very accustomed to eating fresh fruit out of humans’ hands, which made for an unforgettable experience and photo opportunities!  We then made our way through another tropical bird exhibits and onto the monkeys.  My favorite monkey was the Cappuccino monkey, or white-faced monkeys.  These monkeys were very cute and entertaining as they were not shy.  They seemed to put on a show for us as they chased each other around their cage with spectacular speed and agility.  Next, we walked through hummingbirds and butterfly sections.  I cannot believe how fast the hummingbirds were as they raced throughout the air with blazing speed and inches past our heads.  Also, we viewed the jungle cats that were all fast asleep inside hollowed out trees.  And finally we had some very tasty cheese and hot tea before we prepared for a steep challenging descent to the waterfalls.

After a short ways down, we realized why it is called a rainforest as Mother Nature opened the floodgates and we enjoyed a fresh tropical rainfall.  Many people wore ponchos or had umbrellas, but a few of us this was the experience that we were hoping for.  It would have been disappointing to not be drenched in rain in the rainforest.  Once we finally reached the waterfalls, smiles spread like a powerful firestorm.  Everybody took turns taking pictures and some of us could not help but drink the water!  For me, this was the highlight of the trip, being deep one of the most remote parts of the world and surrounded by the best aspects that our planet as provided.  It is this experience that defines Costa Rica, as a country with an incredible commitment and dedication to protecting the environment.

Growing and Exporting Coffee by Tait Sorenson

On Monday, we ventured out to the Britt Coffee Farm to learn the history and business of coffee in Costa Rica.  As in the case of the butterfly farm I wasn’t too sure of what we would learn but I was eager to find out.  There were two presenters that were absolutely hilarious, as they interactively took turns explaining the history of coffee in both Spanish and English.  Coffee originated in Ethiopia and then traveled to Saudi Arabia, Italy, France, Brazil and finally arrived in Costa Rica in 1750.  However, it wasn’t until 1821 that the coffee industry really exploded as the Costa Rican government gave free land and free coffee plants to anyone to wanted to grow coffee for exportation!  As a result, coffee became Costa Rica’s main export.  By the end of the 19th century coffee exportation helped build the railroad system and in the early 20th century it provided the means to develop roads and other key parts of the country’s infrastructure.  Today, coffee remains one of Costa Rica’s key exports and coffee plants can be seen almost in every direction.  The Britt Company main role in this trade is mainly a roaster as they receive coffee beans from over 2000 suppliers.  It is important to note that the suppliers do not use any chemicals as it would pollute the soil and helps Costa Rica remain a leader in sustainability.

In the afternoon, we toured the Sr. y Sra. Ese Souvenir Company.  This company specializes in hand-crafted jewelry and souvenirs from the wood from the tree to the finished product.  In particular, the company uses wood from 16 different trees and each one has a unique beautiful characteristic.  My favorite was the “purple heart” wood.  I did not know that purple wood existed in its natural color.  During our visit in Costa Rica it was common to see this company’s products in many of the gift shops that we visited.  It was very interesting to see the quality of their work at all stages of production.  It was a perfect example of Costa Rica’s dedication to tourism, which accounts for 52% of their GDP.

Costa Rica – The Business of the Butterfly by Tait Sorenson

Butterfly Farm

Today we visited the largest exporter of butterflies in Costa Rica, which has been in business for 20 years.  At first thought, I had no idea how or why butterflies could make a successful business but after our visit it became clear.  It is truly amazing how complex a butterflies life cycle is and how they can provide a wonderful reminder of the value of life, as many of us tend to forget the importance of our surroundings.

Morpho Helenor Butterfly Eggs

To begin with, a butterflies main purpose is to help its own particular species thrive.  At the Butterfly Farm there were 35 different species.  Each species feeds on different plants, so the butterfly sanctuary has an extremely wide variety of bright colorful plants, as butterflies only see in three colors, which are red, yellow, and green.  In addition, butterflies use ultraviolet vision and smell to help find mates up to 2 kilometers away!

The males must impress the females because the females choose their mate, which is to ensure strong offspring. The females will lay approximately 100 eggs with only about 2 eggs surviving and becoming adults.  As a means of defense, the females lay their eggs in groups of 20-30. The eggs are placed on “host plants” that are carefully picked out by each species.

A pupa before it is exported

The “host plants” provide protection and nutrition as the eggs transform into incredibly small caterpillars into just a few days.  The caterpillars devour large plants, as they build up strength for the pupa stage.  A caterpillar will eat, or recycle, its’ own skin to produce silk which is wrapped around itself as it  becomes a pupa, which is similar to a cocoon.  It is at this pupa stage, also called crystalis stage, that it is exported to various countries, such as the USA, Canada, South Africa, Europe, Singapore and Australia.  Each pupa is carefully packaged and sent the same day and is individually sold for around $2.25 per pupa (before the shipping and handling).  The importing countries will take the pupas to different zoos, museums, and butterfly exhibits and the pupa hatches into a beautiful butterfly as it completes the cycle of life.

In summary, the reason butterflies are valued so high is to simply celebrate life and our surroundings.  Our hostess for the day further explained the relationship of life and our ecosystem by referencing a Shaman, or a medicine man, in the rain forest.  She explained that as humans further become obsessed with technology and industry, we neglect the value of our natural resources until there are no more.  In her example, a lot of plants have natural healing abilities yet humans are too quick to deplete/destroy the very resources that can cure certain illnesses. It is the wisdom of the Shaman that explains why butterflies are so valuable, and are a perfect symbol that life is extremely fragile and should be celebrated.

Visiting a Fortune 200 Company by Tait Sorenson

Tech Data

On Friday, we visited the Fortune 200 company, Tech Data. Tech Data is a wholesale distributor of technology products and enjoyed over $24 billion in net sales for 2011.  Coincidentally, Tech Data is headquartered in Clearwater, Florida.  At the Tech Data facility in San Jose, Costa Rica, we learned about the Costa Rican culture and more do’s  and do not’s, as well as, some interesting managerial concepts from our presenter Greg, the General Manager of this operations center.

Costa Rica’s culture offers many unique aspects that make it a breathtaking country to visit and carry out business with.  Greg provided a variety of fast facts of the culture.  For instance, due to the population explosion over the recent few decades, residents cannot drive their car for one day a week, which helps reduce congestion and pollution.  Secondly, Costa Rica has a high regard for the right of employees as it is illegal to fire employees who begin to date each other (it is all about the love).  In addition, a person who is from the USA should not refer to oneself as American because if they are America then who is a person from Peru, Belize, or Canada.  It is wise for a person from the USA to refer to themselves as a “Gringo/Gringa.” One last do not, is to do not bring calla lilies to a meeting or a greeting as they represent funerals.  In Costa Rican culture, there are many, many more do’s and do not’s.  All of these are equally important to a person who is not aware and help oneself become more respectful and respected, which is everything in the international business environment.

Greg also shared some of his managerial philosophies that he has put in place to help motivate his team.  The first concept is actually the borrowed catch-phrase from Lou Holtz, former Norte Dame football coach, ”Play like a champion today.” This is a sign that Notre Dame football players were to touch before taking the field. Lou Holtz used this sign as a reminder that every player (or TechData employee) is where they are because someone supported each individual to allow them to become the person they are now and has the responsibility to give every ounce of effort and “play like a champion.” Greg has placed this same sign up next to the time-clock, which helps every employee work with determination, focus, and effort.  As we toured the facility, we got the goose bumps as we observed all the employees walking by, touching the sign.  Another amazing philosophy was Greg’s idea of 212 degrees.  He explained that the difference of one degree or one percentage of effort can be the difference of success and failure.  In more depth, water does not boil at 211 degrees, it boils at 212.  At 212 degrees, water turns into steam, and it is steam that powered trains as countries, like the USA, entered the industrial age and became a world economic power. These two concepts can move mountains and helps companies like Tech Data continue to grow on a global stage.

Understanding Other Cultures by Tait Sorenson

Cultural Dimension Seminars

            Today we stayed in the hotel as Professor Fernandez conducted a morning seminar on Cultural Dimensions and an afternoon seminar on Intercultural Relations.  Both seminars presented an extremely useful insight into how other countries conduct business and how it relates to the difference of countries society structures.

The morning seminar focused on the research of Dr. Hofstedes and IBM.  IBM placed Hofstedes in charge of introducing IBM into foreign markets in the 1970’s.  However, before IBM could thrive in foreign markets they wanted to better understand different countries cultural dimensions.  Dr. Hofstedes’s study spanned over a decade on broke into the five following categories; power distance, individualism, masculinity, uncertainty avoidance ad long-term orientation.  He also assigned a ranking of all the countries on a scale of  0-100.  One such example is the Power Distance (PD).  A country with a higher PD index, Guatemala 95, has centralized companies and strong hierarchies.  A country with a low PD index, Israel 13, views managers and employees more as equals and involves many people in decision making.  This system is highly regarded in the international business world today and provides a road map of each countries society, in which, an individual/entity can approach a prospective business deal without disrespect and therefore a much higher chance of success.

In the afternoon, Professor Fernandez taught us Intercultural Relations in Business.  We watched several short videos on proper verbal and non-verbal language in international business.  This included many do’s and do not’s of different countries.  For instance, in Brazil, never give the thumbs up as it is same as flicking someone off in the USA and understand that Brazil’s language is Portuguese, not Spanish.  In another example, China, business cards are to be carefully presented and received, slowly, with both hands and then placed, vertically, on the table with the most qualified business card on the top of the table.  Also, China values trust over contracts, which is similar to a “western marriage.”  To the Chinese, the future is in the hands of the Gods and all contracts are subject to unseen variables.  So it is important to respect business with a sense of the long-term and not set over a period of contract terms.

First couple days in Costa Rica by Tait Sorenson

Costa Rica Chamber of Commerce  

Hello everybody and greeting from Costa Rica.  First and foremost, I would like to thank all the wonderful people that have worked their tail off to make this special opportunity available to all the Study Abroad groups.  Personally, I would like to extend my appreciation to the Study Abroad office, Cary and Anna, as well as the SPC Honors College.

The first couple of days have been truly unbelievable.  The first day, we woke up early and had a nice healthy fruit breakfast and then we set sail for the heart of San Jose to do a little souvenir shopping before we visited the Costa Rican Chamber of Commerce.  At the Chamber of Commerce, we learned the nuts and bolts of the Costa Rican history and economy, which broke into the several main topics beginning with innovation and protecting the environment and finished with the presenters explaining how in 1949 the government kicked out the military which was brilliant because now Costa Rica enjoys political stability and frees up government funds to invest in education and infrastructure.  F.Y.I. Costa Rica blows the doors off most other countries with a 98% literacy rate and 92% of their energy derives from renewable sources!!!

On Day 2, our group again had a very healthy breakfast and jumped in the van to tour INCAE.  INCAE was the first Business School to offer MBAs in Latin America in 1964 thanks to JFK urging Harvard to collaborate with the Central American Presidents to establish the school.  Since its inception and still today, INCAE remains as a First Class Business School and is recognized in the Top 10 in the world.  The Director of Admissions gave a mind-blowing passionate presentation that physically gave most of us butterflies because of the opportunities that INCAE provides.  The learning atmosphere is designed to embrace other culture/languages in a practical manner and not just theory.

Well, that pretty much hits the highlights for the first two days.  It is absolutely incredible how much our perspective has increased and we still have 8 days left!!

INCAE Business School – The Harvard of Latin America by Tait Sorenson

On Day 3, our group again had a very healthy breakfast and jumped in the van to tour INCAE.  INCAE was the first Business School to offer MBAs in Latin America in 1964, thanks to JFK urging Harvard to collaborate with the Central American Presidents to establish the school.  Since its inception and still today, INCAE remains as a First Class Business School and is recognized among top MBA schools in the world, as 95% of the professors received their doctorates from the most elite universities in the world, such as; Harvard, Yale, Cornell, etc.

At INCAE, all students are required to live and study on campus.  Most people view this as a negative.  However, this is one of the largest benefits for the students and gives INCAE a superior dynamic that separates them from all other MBA schools.  Typically, 4-6 students, from different countries share a living quarter for the duration of the program.  As a result of this living situation, each group becomes a family and every student becomes multinational as they learn the language and values of the others in their living quarters.  This learning atmosphere is designed to embrace other cultures/languages in a practical manner and not just theory.

The Director of Admissions gave a mind-blowing passionate presentation that physically gave most of us butterflies in our stomachs because of the opportunities that INCAE provides.  The Director, Ryan, went on to explain a few of his philosophies which really opened my view on how business should be conducted.  One such example is to simply ask yourself, “How can I change the world?” This question is the main source that Ryan looks at when approving students for admission, but it also goes way beyond an application for INCAE.  Anybody can ask themselves this question for any aspect of his/her life.  It is this mentality that is the catalyst for radical change and innovation on a business and personal level.  Another thought-provoking concept that Ryan offered is a M.V.P. (Minimum Viable Product).  Basically, a M.V.P. is a product that isn’t perfect yet delivers sales. Sometimes a company will spend too much time and money in Research and Development, meanwhile a different company will release their lesser quality product and then tweak it after the company receives revenue from sales. Ryan elaborated from personal experience that a MVP can be the difference between a successful company and a company that never gets off its feet. He used the difference of Bill Gates and Steve Jobs. Bill Gates will hold a press conference to talk about future perfect products and Steve Jobs will hold a press conference and release the MVP that same day.  Although many of Bill Gates ideas are incredible, the problem is by the time they are for sale they are outdated and irrelevant. So, which company has more sales, Apple or Microsoft?