New York Gov. Eliot Spitzer says he’s sorry for whatever he’s done, which from the look of things amounted to romps with pricey prostitutes from an outfit called Emperors Club VIP. For students of business, the Spitzer scandal opens a new window into the workings of an illegal industry.

As it turns out, prostitution has business principles, human-resources challenges and marketing difficulties just like every other line of work.

Take, for example, the transaction that no doubt will be Spitzer’s last with Emperors, whose four principals were arrested last week. It was outlined in an affidavit by FBI Special Agent Kenneth Hosey on March 5.

Spitzer, identified by the New York Times as “Client 9” in Hosey’s statement, was looking to purchase the services of Emperors’ “Kristen” for an evening just before Valentine’s Day. Management at Emperors had strict rules about payment—major credit cards, authorized bank cashier’s checks and “most foreign currencies” in advance. Add a 20 percent surcharge if you needed Emperors to exchange your currency, according to Emperor’s Web page, which recently was shut down.

The New York governor tried to book his appointment with only a $400 credit on his Emperors account, but Emperors wasn’t buying it. Sticking to its guiding principle (no money, no action) Emperors kept the evening with Kristen on hold until Spitzer’s payment arrived Feb. 13.

Not wanting to encounter payment issues next time around, Spitzer gave Kristen an extra $1,700 as a deposit toward a future transaction. (Her services that night went for $3,100). Emperors, a class outfit, had no tolerance for delinquent payments.

Keep ‘em honest

Along with a knack for keeping customers honest, Emperors was a marketing whiz with a talent for knowing its customer. A Web page for Emperors Publishing Media Group, which advertised Emperors Club, boasted that 92 percent of Emperors Club VIP International Members were “CEO/Owner/Partners of a large” company. Annual income of its tony clientele ranged from $1 million to $30 million a year, the Web page said.

And Emperors wasn’t so foolish as to ignore the graying of America: Its Web page said that 9.3 percent of members were retired chief executive officers. Think of all the disposable income from those stock options.

With such a monied clientele, it would be smart to push for a little synergy. Seventy-seven percent of Emperors customers owned or collected art, according to its Web page, so it was a no-brainer to set up a division to buy and sell original art for clients it described as “millionaires and billionaires.”

Supply and demand

Even good marketers can’t control everything in the marketplace, though, and Emperors did face its challenges. Among conversations the FBI captured from phone calls, e-mail and text messages was one which two principals concluded that there was no point in advertising in Miami because of a tight supply of prostitutes.

In a different conversation, the two bemoaned that the Los Angeles market was sluggish because of too many girls, not enough demand. It was Economics 101, right out of Adam Smith.

To keep customers happy, the company offered lots of options. Customers who paid cash got a discount, much as you might when you fill up the car at certain gas stations.

Two prostitutes for four hours came with a price tag of $3,600 for cash, but $4,140 on the American Express card.

Taking a page from the auto industry, Emperors even offered a “buy or lease” option. A customer who tried a prostitute and liked her could pay a fee to buy her out, thereafter doing business with her directly and avoiding the middleman.

More : dailyreportonline.com

Bethel University of St. Paul will bring its growing Master of Business Administration program to Rochester in January.

Bethels unique MBA Program, with its strong emphasis on values-driven leadership and ethics, is resonating in the business community, said Mary Whitman, D.B.A., program director.

Students can choose to work on a general MBA or on one of the following five emphases that they integrate into all courses: Nonprofit Management, Quantitative Management, Robert E. Peterson Entrepreneurial Management, Social Impact Management, and Technology Application Management.

More : news.postbulletin.com

The institute will get a grant for non-recurring expenditure of Rs 120 crore over a period of five years.

The seventh Indian Institute of Management (IIM) proposed at Shillong, Meghalaya, will become operational from the academic year 2008-09. The HRD ministry has sent out proposals looking for the director and the chairperson for the IIM.

The new institute will be called the Rajiv Gandhi Indian Institute of Management (RGIIM), Shillong and will get a grant for non-recurring expenditure of Rs 120 crore over a period of five years and Rs 45 crore for recurring expenditure over a period of six years. The government of Meghalaya has provided 120 acre of land free of cost for setting up the institute.

More : business-standard.com

The University of Arizona’s Eller College of Management is expanding further into the Phoenix area.

The college is introducing its 18-month master’s degree at its 9,000-square-foot campus in Scottsdale for those with at least three years of experience The campus opens next month.

Applications for the spring semester are due by Nov. 1. Priority will be given to those who apply by Oct. 1.

More : tucsoncitizen.com

Six students of MBA first semester and three students of MBA third semester of Guru Nanak Institute of Management and Technology, Gujarkhan campus, have bagged merit positions in Punjab Technical University examinations.

As per the merit list released by PTU, these exams were held in December 2006. Megha Jain of MBA first semester has topped the university with 90.25 % marks. Jaspreet Kaur bagged the second position with 89.12 %, and Chanpreet Kaur bagged the third position with 88.87 % marks.

Swati Mehta bagged the fifth position with 87.5% marks, Preeti Kalsi bagged the seventh position with 87.25 % marks, and Sumisha bagged the ninth position with 86.62 % marks.

More : cities.expressindia.com

May 31 is the deadline for entries in the Carl Marks Student Paper Competition, administered by the Turnaround Management Association (TMA) to recognize outstanding student achievement in the field of corporate renewal. Funds for a $3,000 first place prize and $1,500 second place prize in two categories are provided by Carl Marks Advisory Group LLC in New York. Travel expenses are also provided for one author of each winning paper to accept the awards at the TMA Annual Convention in Boston, October 16-19, 2007.

Papers by individuals or teams must be written between May 30, 2006, and May 30, 2007. Students enrolled in an MBA program or equivalent business-related Masters program at the time the paper was written are eligible. First and second place prizes are awarded in two categories: turnaround case studies and papers that are based on theoretical or conceptual turnaround issues. Entries will be judged on relevance to issues pertinent to corporate distress, financial restructuring and reorganization and quality of writing and analysis.

The Turnaround Management Association is the only international non-profit association dedicated to corporate renewal and turnaround management. With international headquarters in Chicago, TMA has 7,800 members in 40 regional chapters who comprise a professional community of turnaround practitioners, attorneys, accountants, investors, lenders, venture capitalists, accountants, appraisers, liquidators, executive recruiters and consultants. Its Certified Turnaround Professional (CTP) program recognizes professional excellence and provides an objective measure of expertise related to workouts, restructurings and corporate renewal.

Source : sev.prnewswire.com

A Course in MBA in Energy Management might start at the Energy Research Centre, Panjab University, from next year. At present the feasibility of the course is being worked out.

Honorary Director of the centre Dr V K Rattan says that there are a number of other projects in the pipeline as well. The centre in collaboration with KTH, Sweden, and IIT have submitted a project to produce fuel cells. This involves the process of hydrogenation (separating hydrogen and oxygen using solar energy). The hydrogen obtained would be used as fuel. Dr Rattan says that this could be helpful in the production of power in rural areas. Another project that might start at the centre is that of producing bio-diesel. Dr Rattan says the large scale use of non-conventional sources of energy can reduce the impact of energy crisis being faced by the country.The centre observed International Sun Day today. An exhibition on Solar Energy at Work was held. Instruments like solar water heaters, solar cookers, solar lights, radio, dryer and distillation system were put on display. PU Vice-Chancellor Prof R C Sobti highlighted the need to use alternative sources of energy.

Source : cities.expressindia.com

Manhattan GMAT, the worlds largest GMAT-exclusive prep provider will hold a b-school admissions panel for future MBAs, on Wednesday, April 25, with representatives from Harvard Business School, Sloan School of Management, Columbia Business School, and the Kellogg School of Management.

Boston, MA (PRWEB) April 24, 2007 — Future business leaders in the Boston area will get the chance to meet admissions representatives from four of the highest-ranked MBA programs, on Wednesday April 25th. The event will be held at the Back Bay Center of Manhattan GMAT, the worlds largest GMAT-exclusive test prep provider.

Representatives from Harvard Business School (www.hbs.edu), Sloan School of Management, Columbia Business School and the Kellogg School of Management will engage in a panel discussion, designed to help future business school applicants garner valuable admissions advice. The panel will be hosted by Eric Caballero, Manhattan GMAT Boston instructor and Sloan graduate.

More : emediawire.com

Foster Farms Fox, CalPERS Read bring executive know-how to UC Davis MBAs

Robert Fox, who has led Foster Farms and other major corporations for decades, has donated $350,000 to the University of California, Davis, to help the Graduate School of Management bring the know-how of other seasoned executives — like Russell Read of CalPERS — to its MBA programs.

The gift for the Robert A. Fox Executive-in-Residence Program was announced and Read, the chief investment officer at CalPERS, was introduced today (April 19) as this years executive at a management school event at the downtown Sacramento headquarters of the California Public Employees Retirement System.

Fox, a member of the management schools Deans Advisory Council, told the gathering that he wanted to give something back after he, as executive-in-residence in 2001, taught a course on corporate strategy from the perspective of the chief executive.

More : news.ucdavis.edu

UC Davis MBA program listed as one of nations best

The University of California Davis Graduate School of Management has been named one of the top 50 business schools in the nation by U.S. News & World Report magazine, the 12th-consecutive year the local university has made the closely watched list.

The UC Davis program is ranked No. 20 among public schools and No. 46 overall, according to U.S. News 2008 edition of Americas Best Graduate Schools. The overall ranking remained the same as last year.

The local program is the smallest business school on the list, with 116 full-time students, according to UC Davis.

More : phoenix.bizjournals.com