Business Plan Proposals for Inner-City Neighborhoods: A Strategic Management Assignment for MBA Students at Loyola University

Chicago Author(s): Jill W. Graham Source: Journal of Business Ethics, Vol. 15, No. 1 (Jan., 1996), pp. 87-94 Published by: Springer Stable URL: . Accessed: 28/03/2011 16:27
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at . JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at . . Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact

Springer is collaborating with JSTOR to digitize, preserve and extend access to Journal of Business Ethics.

and behavior from Northwestern University at the University British Columbia taught before of joining the Loyola faculty in 1986. . of of justice the and charity" 1988. including principled dissent. . purposes (Hassel. is an If increases alternatives. Printed in the Netherlands. researched and prepared an original business plan proposal to provide a needed opportunities. leaders that for others. Graham received her Ph. University in Chicago. strategic informed choices their of and energies the educational to devote part important 1996. students Beginning course enrolled in a capstone Strategic Management at Loyola University have. is commensurate with the scope of the however.D. business. Introduction for of the skills of using business for good education experience to carry over to post-gradu ends is more likely at ation life than a pre-professional experience practical application and technical knowledge are a vital in the classroom the beginning of the degree program. good are encour of such institutions Graduates 1993). and what the outcomes have been to date. and value-driven strategic manage ment. how it works. The nobility of the effort. as well way as meeting minimal economic requirements. This dimension the Jesuit educational educational excellence for and inspiring students to Context and rationale for the assignment Jill W. ? 1996 Kluwer Academic Publishers. organizational servant leadership. Journal of Business Ethics 15: 87-94. MBA ABSTRACT. in organization in 1983. only the challenge. doing that serves noneconomic social goals. citizenship behavior. . aged to be "persons move to be the concrete embod would society iment of the virtues p.wide range of business knowledge capstone socially typically beneficial occurs Because the course purposes. virtue in organizational a successful in a competitive business Running so in a environment is always hard work. activist loyalty. ideals that motivate it. serve is arguably pedagogical model in or near any area programs be it urban or underdeveloped. aswell as employment to residents in one of Chicago's inner underserved This paper describes the genesis city neighborhoods. The for MBA appropriate that is economically rural. (Harvanek. Graham at Professor ofManagement where she teaches the Loyola University Chicago. process. of the project.Plan Proposals for Inner-City A Strategic Neighborhoods: for MBA Assignment Management Students at Loyola University Chicago Business Jill W. This article an assignment describes in a capstone employed course the MBA of Strategic Management curriculum Jesuit at Loyola institution. as their major Chicago course assignment. Exposing value-driven can make how business more students to a wide range of so that they of where and talents. . Graham in 1992. capstone strategy course to both undergraduates and MBA students. a Opportunities theoretical acquired at many education professional can have a social action orientation at universities that share of pursuing philosophy the purpose of enabling part of institutions. the just before graduation. integrative in strategic management is an to try out time and place appropriate especially and skills for a. good or service. Her research concerns various forms of is Associate life. Service. For students course 11). 1983.

that those statistical students provide and cases. outlining structure. overviewing it is designed community the day-to-day of the business. executive should summary an overview and of the business concept provide its rationale. to apply knowl areas. presentation a written evaluation. of which students is also submitted for to are encouraged their business choices. since 1992 has been the develop of a detailed business to potential that might backers of be presented An their proposal. IBM. discussed early case material mental collected to practice strategic The material techniques. business background inner city and as in a course is studied on which analysis from on also form small groups Students may gested. Graham instructors readings mization enterprise. ment. the To date. others in the community. environ has been with the business beginning . nearly all students have done in groups of two to four members. resource the community who person(s) helped to know of students get the needs and resources the chosen neighborhood. assignment reading and packet. following Early to background information session devoted inner-city specific business business. they leave the university. and of its finances the first during its ownership sources of for three years of operation. implementation. by identifying and describing location for the business. as well of students are advised to think plan. That also sense) risks narrowing the range of alterna are likely to consider rather than widening that most for their own and enlight not all) of the (if to have had prior students course is likely to have been useful to expose them possibilities and just before cases assigned includes as a six weeks. it as a document entrepreneurial course project ment and both Jerry's inner-city examples In addition. The final two period of approximately are devoted to the class sessions of the quarter and discussion of each business plan. pursue version Finally. outside in terms of membership library and field they conduct of class over a approach tives students life to assume encouraged are not only normal (in a examples but normative. to provide The is designed assignment project students with a edge so toward purpose. must To be help is in the ten-week quarter. The a should demonstrate of the business body plan the feasibility of the proposal proposal plan to serve and provide oppor employment tunities for a Chicago inner-city neighborhood.88 Jill W. liminary a collaborative effort between students is sug get gathered the readings included in the plan in a library. and to do strategic real-world to serve. possible of the relevant characteristics learned the opportunity in all core business significant. pro operations estimates of the capital needed defensible viding to get the enterprise started. Description project Overview and of the inner-city business timetable timetable for the assignment a class about select a a Resources for The useful Some the project assignment needed a to design various. If any of these pre concept statements of intent resembles another. a set of in the are started. which to be the sole students are only with assume purpose traditional profit maxi of business Once the are groups and initial research defined intent. And ening MBA given coursework taking the capstone it is especially "normal". a joint preliminary state and submit their own. as well for what is included of "new age" management sampling case studies of General Electric and as Ben & and literature1. potential identifying a and providing start-up capital. press. the major businesses. students to serve tentatively and/or information and feasible are accessible first-hand students about term sources business specific neighborhood to develop. to some unconventional of pro implementation or by providing them to either personally posals. it. The selection of readings in my Strategic Management traditional classics of the Business As proposal instructions in the of business course field.

staffing and control).e. comments of return. business running it keep or before (at for the first in the (as a result of contacts made course of assorted involvement community or by a Loyola who served activities). needed to plan (e. is designed they need research with on-site investiga library petition ? A detailed proposed the community to serve (e. distribution. either by the identified ? ? of physical facilities. and various other potential capital businesses and technical in assis of inner-city on business described ? plan proposals in more detail fledgling and some neighborhoods. materials procurement. organization A marketing promotion). to one another. to defend footnotes assump explanatory tions about ? ? expenses.. examples familiarize that students the neighborhood their business to to serve. from officers Also The Wall that followed Plan Proposals for Inner-City discern Neighborhoods 89 the riots police Chicago's charged is a series included Shore Street Journal prompted the initial acquittal of with Rodney beating of articles about what about emerges (if any) consensus the desirability and feasibility of each of the plans. is based the are These of what South Employment sources for tance to Project.. Evaluation Two forms criteria and procedures of evaluation Project Student outcomes are employed to assess one involving the business peer plan proposals. is provided a map are given the 77 latter. Proposed ownership tial sources of initial Realistic timetable capital. overview business of the operations location (e. class presentation of each a rating form is circulated plans. Before the business students. and gratitude. Students personal know) are also experiences encouraged (and/or to draw on their they in that of people year three Pro-forma three of operations). needs. i. methods structure. etc. start-up the Women's Self Bank. students showing areas in Chicago. A it is essential with recent Documented characteristics business graphics. a list of individual community and civic and community Chicago organizations. demo is designed com resources. for implementation. of delight that expressions noting are glad finally to encounter information they to use about and encouragement their new knowledge and beyond merely react equal number skills for a purpose About money. Written These forms are reviewed by the instructor to (excluding of a assignment.g. existing and other environmental factors). making challenging that an a few business goes by the assign . the and other evaluation the review. of allocating and poten living/working/studying/volunteering inner-city Chicago's neighborhoods.. of the and description the of "urban economics of compilation sources" available at the Loyola University library to assist with For the the former.g.. Each student is asked to rank the his or her own) from the per the reactions course the major react with students of to When project they first learn about plans venture spective socially responsible capi an investor in promoting interested talist.). colleague as the University's liaison to community groups. work flow.g. capabilities and training.Business a series by King. such business ventures.2 Because themselves proposal combine tion. as well as earning rates social justice respectable are also solicited. to serve activists willing of community as resource persons to Loyola students who wish a to a part of the Chicago introduction personal the names with community individuals These instructor which were they are unfamiliar. by instructor. relative The instructor's components the personal listed should below: of the relevant evaluation earlier contain. statements income a of operations years (including schedule of wage/salary and costs. Mathematically including: An itemized get the until verifiable estimate it breaks financial of funds started even and analysis. growth. pricing.

to try to inspire a commitment ? highlight of the course. It's rather late in the grad to do good. inner-city proposal. The business plan was a good personal and group experience. doing students' theoretical and understanding skill at applying strategic conditions. The 2. a business neighbor venture for some during pleted to date. neighborhoods (e. luxury of an inner-city Most neighborhood. lives. I do not think it should be constrained idea. depressed area was to helping is communities.g. . . the assignment exemplifies call to be "persons for others. projects 5. comment. con creation efforts employment (e. The final project to an to the . a good or in students' tool. The project school was curriculum. p. laundromat. The research project project was an in an economically excellent experience. and casual contract labor struction. The project was done well opened eyes to other elements of society which and services.90 Jill W.g. comments (see Table if those of evaluation several about I). 3. without that the pre end made business In their written of the specific project school course term. and the north recent immigrants side where from Asia relatively and Latin America of businesses of retail tend proposed services currently to congregate. any a better alternative 6. . is a very good business venture in any area should be permitted. 2. However.." Ignatian applying a preferential with for the knowledge "option 1988. have included The specific in Chicago: have They in one of technical novel university. defining accept the presumably course requirements of academic a new "Gold instead students. pallet a bindery. 3. learning 1993: 1. The business plan should not be restricted Not everyone inner-city interested in this segment of the world. or have focused on and take-out pizza shop). however. of balance. I enjoyed the project and learned a lot of practical business ideas. primary the predominantly African-American south and west sides of the city. Definitely for other sections of the course. I think "book" course. the project the majority assignment. ? as well need products 4. they can't propose asking why to serve residents business of Chicago's Coast" lakefront condominiums. poor" especially an inner-city in the absent from a grocery store. courses than Most concern small business large Business A total plan proposals of the 18 business two plans have been prepared com iterations of the course been three proposed for areas enterprises. The business plan project was a very interesting undertaking. providing temporary services to other organiza types a variety the target TABLE I Student comments Excerpts from those course evaluation forms where students chose to comment on the inner-city business plan project: 1992: the business proposal project was a good idea. Graham ment. to those who The response provided initially the assignment goes beyond challenge asserting in several ways. The first professorial prerogatives argument cases studied well-known hood an is in terms in MBA firms rather designing neighborhood A balance. 11). locations inner-city much-needed concerns analytical tests both their under skills provides second argument the value of using strategic management so in ??familiar settings.. I learned much more than from a 1. While comments all students express the forms students at the have inner-city there is no are who repre have assignment on the premise is within of knowing way sentative of the views taken for the class. (Harvanek. environmental context of a Jesuit business concepts Finally. appreciation rogative authority.

Table complete is provided of a com If students munity borhood. on the children's Inc. Provision Fun. Humboldt rehabilitation "WHALL Corp. resource a assistance in researching the neigh person business of the completed copy of a version of it revised in response (or proposal to that to instructor may be provided comments) resource course aged intend this is not an explicit Although students are strongly encour requirement. as Austin facility to serve the west-side community. as well as resume writing on and job search skills. and with the help through prayer and reflection. Park neighborhood "Stateway Gardens "Stephen's well as to trained community in the Rogers bakery next Bakery" Neighborhood and entertainment Club" Restaurant Supper provide catering services. I have found that the Jesuit community at TABLE II Business plan proposais. neighborhood and binding printed material on the west side. folding. and of the near west recycling of waste side. I which as using one's gifts and graces to serve as well as one can discern God's purposes them. to residents "Eco-Cycle." Housing in in the Humboldt Park neighborhood . "Triumph Bindery" Park (west side). 1992 and 1993 to be located in a church in the Hispanic Logan facility Self-supporting "Apple Blossom Day Care Center" on the near northwest side. community "Pallet Manufacturing Corp." Manufacture the near west side. utilized the list of projects Plan Proposals for in Inner-City Personal As who one was Neighborhoods satisfaction of 91 rions). to share their business they plans unless person. Corp. entertainment including the Robert public Trade and rehabilitation. of a range of security systems to low-to-middle facilities class apartment near buildings Taylor on the "Good Clean housing project "Grantron Development School. Where resource have been shared with community plans to the instructor has been feedback persons. the (in)famous "aging baby boomers" a student in the sixties. Park/Edgewater cutting.Business A II. (north side). Law office (sole proprietorship) Legal services to low income residents of the west-side "Matt's Pizza" Take-out pizza near the Robert Taylor public housing project on the crafts neighborhood. training in the Humboldt residents Park on (west side). of community." Housing west side. the near Inc. construction skill training at Washburne stalls selling Austin near a courtyard of SRO housing for new immigrants "Hacienda House" surrounding foodstuffs from the native lands of the residents. are highly of business socially responsible Personally. "Stuff It" Contract labor and fulfillment Low-to-medium house skilled in the Rogers employment. is an activist idealist." west Collection side. on the north side. side. *n Copy" access and copying equipment. to a public housing project on the near south side." Laundromat with on the near southwest side. and repair of wooden (custom-made by newly and employing residents) "Rose Petal" Store selling women's clothing on the north side. on and do research organizations understand I teach various in a business forms school of virtue in to implement them themselves. materials from commercial and multi-unit properties "Ellis Security" south side. on the resource list uniformly positive. but who the organizational also has learned born to of inveterate appreciate efficiency the underlying values and goals market discipline. to stay there when the course is offered as a form of lay ministry. near southwest "Mid-Town Finance" Financial institution for small business and real estate development pallets. Square neighborhood "Biggs "Compute Limited" Full-service Service grocery providing store on the to south computer shore. appealing. All those have volunteered again.

much less instructor required once And. Strategic Management business inner-city project. New materials have been who the very students arguably most to a wider from exposure career options. Although the capstone in strategic is required of all MBA students management are part-time. the project inner-city project. twelve course on class that basis typical Those wishing are hostile to business might range hand. Having history is a great help.92 Jill W Graham Loyola ministry. this conceptual frame Using in the next course. to 40 is apparent to avoid the course because they the idea of socially responsible 1993?94 the year. & President for Government academic after two than does a computer game. are benefit those size of 35 no shift in the (although so far). community As time to whom work iteration of the MBA strategy should additional moreover. goes to share with be helpful each repeated. 1994). instructors It is different conceivable that some students. as far as I know. the encour Loyola has and assistance my project assignment agement received University have come more than from from the within community larger the costs of collecting The informational start-up and estab materials business about inner-city are not inconsider contacts lishing community a personal of community able. the of Helpful also provided the by both and librarian for business. When of with who the business for lay I first I time and energy required to in launch the an earlier experiential Management ized business than that colleague and economics. ? was as great or greater the bolstering was proposal confidence my new in a course manner project. theologian has a strong interest in business His enthusiastic support for in extremely helpful to experiment with that I had taught in for six years. that (Graham. with none been the greatest is coping challenge Perhaps the disappointment that. a Jesuit a at Loyola. of the inner-city business plans has (yet) either by its authors or by implemented. going concerns Another student self-selec challenge course tion. new class of students that some of their prede business have into cessors' been put plans it would operation. provide in support of the inner-city business legitimacy to those students the who question project strategic tunities of pursuing plausibility in the inner city. Unless former invitation students to keep me to my respond about business there voluntarily informed others was the proposal course is and the Potential comment obstacles and concluding however. gies intellectual understanding management This of evolution what in my strategic to is directly includes traceable a community service project with experimenting in the classroom. in what I teach about revisions strategic man about agement. simply some university not be Finally. no to know is no way for certain whether or whether I have been plans implemented. I found the . business oppor on. specifically enterprise ? concerns which the purposes both economic ? and noneconomic for an organization's very teaching include strategy alter enterprise developed more natives varieties of traditional alongside strate and functional level business. leave to as a Loyola value-driven course I was a sabbatical Fellow University study strategic That research led to significant management. Even involvement so. plan implementation. might (85% of whom of 27). And even at Loyola. heard of having in my version the project of assignment required select or avoid the Strategic Management. and keep effort to monitor something a conventional technical University's the Associate Community During iterations with granted Ethics the support was reference Vice Affairs. in the given. haven't been informed of it. existence. of personal the other On choosing course because of its my from support for benefit may project assignment to serve the commu their personal inclinations nity with their business skills. component course simulation for Strategic a computer specifically. conceived consulted is a very supportive environment even that of non-Catholics. corporate. strategy. an average age with a year sections taught by three are available at Loyola. settings may as supportive as of community service projects has been. business inner-city the latter requires launched.

. finding yet hope. C4.): 1992. . Allan L. teaching not make ways with concerned a within business any difference. Fuechtmann. of provocative essays for the "new age" readings. Notes 1 In the past. Jill W.. San Francisco). change a more leaders who will help to produce agents. 'Inner City Market DeCourcy The New York Times (May 14). Conversations eventually persuaded to the University importance service such as the projects that I plan to continue proposal class. 1993. the "pre (not to mention ethically) strategically can be faulted for above vailing view" described imprudently disregarding tive (within advantage offered by marketplace) the potential the business competi school And there is reason for that is the Jesuit ethos at producing aimed "action-oriented. Robert F. Michael. society" era of industry overcapacity the current among universities in general. A17. Companies with a Conscience (Citadel Press. interest in my use conventional will classes. . Return The New York Supermarkets Times Gaiter. J. Kenneth 1993. Hinds. encour and Susan H. 16?17. Working Management. inner-city assigning Articles on inner-city businesses Acknowledgements While described project in this paper is the author s. S. Mary and Rothman.: 1983. 1992. Post (June 24). New Traditions in Business: and Leadership in the 21st Century (Berrett Spirit Koehler. in Service. of Theology.: Strategic of paper. 14).: 1994. A8. on Jesuit Higher Education 3. John (Ed. in the event of an industry the key to survival who shakeout. Chicago). New York). and business in schools distinctive offer strategic competencies particular. Chicago. University Renesch. Susan: 'As Suburbs Diesenhouse. University community. Blossoms'.Business School of Business. Community Cl. 'Stepchildren of Urban Are Agents of Inner-City The Policy Change'. invaluable assistance and advice were received from other members of the idea for the course Michael: Abramowitz. Copeland. the individual the prevailing demonstrating spirits seems more business included Jesuit university rather than with does. J. Department Management'. strategic munity business in my Howard: Scott. to show how Viewed References it 'Value-Driven 1994. San Francisco). Dorothy J. Bl. J. Loyola University Chicago. Schmidt. S. Success Banking: Is a Combination of Business Discipline and Social . The Jesuit Vision of a University'. Harvanek. 'Professional Education Business from the Jesuit Perspective'. In (Harvanek. The Wall Street Journal (January 19). 9). Inner-City 2 Neighborhoods for are 93 case material in the I am aware in the business Citations press the taken reference from section. Ronald: 1991. R17. John Haughey. including S. Leadership in a New Era: Visionary Approaches to the Biggest Crisis of our Time (New Leaders Press. I have used Renesch's 1992 collection (June 27). 'Profits with Honor: More Create the Loyola Thomas G. For the next course offering. 'Inner-City Capitalists Push to Start a Bank for Their Community'. J. Washington H. Renesch. University Graham. City of Wisdom: A Christian Vision of the American University (Loyola Press. kindred view that does While Plan Proposals for of several school. The Wall Street Journal (October 16). 1994.. Renesch's 1994 collection and/or Scott & Rothman's of (1994) compilation "companies tion. on Monica: Dwells 1992. David Hassel. . Department Loyola of Chicago. human 1988. F5. with a conscience" are under considera Community-Development Organizations Business to Serve the Urban Poor'. Slow. Their help and agement are gratefully acknowledged. 'Englewood Future: Effort May Spark Home-Building The Chicago Tribune (May Renewal'.): 1994.: 1992. 'The New Old-Fashioned For Chicago's South Shore Bank.: Bacon. p.: 1993. John (Ed. to Cities'. Grzywinski. teach strategic colleagues Perhaps who course so far have project teaching methods be while expressed polite to continuing in their own of of the com management.: 1988. Al.

'Community-Loan U'dayan: The Wall Street Inner-City Capital Gap'.: 1993. Al. IL 60611. Michael Idealism'. Funds 1993. The Wall Street Journal Risks" (June 23). Email: Lev. Chicago. Department ofManagement.94 Jill W Graham Commitment'. L. Cl. Harvard Business Review (May-June). The 'Kneading Tribune (September 8). . City'. City. The Wall Street Journal (January 22). in the Inner Businesses. 4A25-26. 'A Bank Shows It Can Profit Quint.luc. Al. The Wall Street Surprising Journal (June 8). Al. 'Making Entrepreneurs O'Brien. 1994. Chicago Dana: Well: Finast 1992. Timothy of the Poor May Lift Some off Federal Aid'.S. 82-90. Loyola University Chicago. A4. 1. Gupta. A. Due? Small Paulette: 1992. (May 24). 'New Hopes Fortune (September 6). Michael: The New York Times and Follow a Social Agenda'. Al. U. Labich. Two Unusual 1992. David: to Turn "Bad Lenders Show How Inner-City into Good Business'. for the Inner Kenneth: 1993. 'Doing Discovers and Chain Supermarket Challenges Profits in the Inner City'. 'Jump-Starting Capitalism'. Michael: The New York Times (August 7). 1992. C2. 'Small Victories: Wessel. Cited as Key to Recovery The Wall Street Are Starved for Capital'. A12.A. A4. A16. Bridge Journal (January 13). 87-98. Journal (June 11). Milbank. 'Credit Where Thomas. B2.: 1992.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer: Get 4 months of Scribd and The New York Times for just $1.87 per week!

Master Your Semester with a Special Offer from Scribd & The New York Times