History and Logic of Business Studies

• Prof. Dr. Ove Jensen created the "History and Logic of Business Studies" for an Introduction to Business Administration, Session 01 at WHU on Management.
• The presentation covers the brief history of WHU, the origins of the school and student culture, the history of the university and business schools, a comparison of Betriebswirtschaftslehre vs. Business Administration, and key perspectives of business administration.
• The presentation aims to answer what "WHU" means.

WHU Over The Years

• In the 1980s, the focus was on "Unternehmensfuhrung" (leadership.
• In the 1990s, the focus shifted to "Unternehmensberatung" (consulting).
• Since 2000, the focus has been on "Unternehmensgründung" (entrepreneurship).
• Werner von Siemens (1816-1892) dreamed of founding a global enterprise to give power and reputation to his descendants, viewing the business as an empire.
• A contrasting view criticizes focusing on "exits" and financial wins as the ultimate success metric for entrepreneurs, potentially stalling true innovation.

WHU History

• Renowned professors from the Koblenz Chamber of Commerce supported the founding of a private business school; in 1984, it started with 30 students and one full-time professor.
• In 1988, the mayor of Vallendar offered the renovated "Marienburg," a former boarding school for household studies, as WHU's new location.
• The diploma program (1984-2008) was unique on the German market for its international and internship content; the 22nd cohort was the first BSc class (BSc 2008).
• Designer Kurt Weidemann created the WHU logo and taught communication classes in the general studies program..
• Otto Beisheim, a trade pioneer, secured the school's financing, leading to WHU being named after him in 1993.

Student Life

• From the beginning, sports events were annual highlights of student life.
• HSSV e.V. (Hochschulsportverein) was the third student initiative, after AEGEE and RCDS.
• Older students performed songs with WHU lyrics in welcome shows using popular melodies.
• Working hard was central to student narratives.
• "Walking the extra mile" was key to the students' self-identity.
• Cultural element led to the "commitment" part of the brand identity.

The Medieval University

• "Universitas" was a social structure, had its own jurisdiction, endowment, and tax privileges.
• The privilege of the first universities was guaranteed by the pope, and most of the students were clergy.
• Early universities (around 1000) included Bologna and Paris (Sorbonne).
• Oxford (1180), Cambrige (1209), and Prag (1348) followed.
• Instruction until the 19th century comprised four faculties (facultates, Fakultaten).
• Artes liberales (7 free arts of the antics) was foundational, divided into Trivium (Grammatik, Logik & Dialektik, Rhetorik) and Quadrivium (Geometrie, Arithmetik, Musik, Astronomi).
• Higher studies led to a Degree, and the doctorate was in medicine, law, and theology.
• The languages used for teaching and instruction were Latin, and method included "lections" and "disputationes".
• Scholastic method dominant and used deductive reasoning; the objective was higher education for the social elite.

The Modern German University

• In 1809, the Humboldt University was founded in Berlin based on Humboldt's ideal university model.
• Wilhelm von Humboldt headed the Prussian section for Religion and Education.
• Research became a focus, with a unity of research and teaching.
• Seminars fostered co-creation of knowledge between students and teachers.
• Humboldt emphasized general education (allgemeine Menschenbildung) initially, with later specialization.

Business Administration

• Business administration evolved from a practice to an academic discipline by connecting with economics.
• Its roots extend from antiquity, with commercial wisdom emerging in the age of mercantilism (1600-1800).
• By the turn of the twentieth century, it shifted to importance at academic institutions (1900-2008)
• Key figures include Giovanni Domenico Peri, Jacques Savary, Paul Jacob Marperger, Carl G. Ludovici, and Johann Michael Leuchs.
• Important business schools emerged in France, Germany, and the USA at the turn of the 20th century.
• Volkswirtschaftslehre/Economics (previously: Nationalökonomie) is split into Mikroökonomie / microeconomics and Makroökonomie / macroeconomics.
• Betriebswirtschaftslehre/Business Administration (previously: Handelsbetriebslehre, Handelswissenschaft) covers general and specific business administration (Industry, Banking, Trade, etc.)
• The term Betriebswirtschaftslehre only became dominant after WW2; previously, terms like commercial science (Handelswirtschaft, Handelsbetriebslehre) were used.
• The university degree in business was "Diplom-Kaufmann" and "Diplom-Kauffrau" until recently.
• The curriculum Handelshochschule Leipzig in 1898 focused on economics, business administration (25%), law, mathematics, foreign languages, and techniques like stenography and typewriting.
• Curriculum of the first chair of business administration in 1914 includes commercial knowledge in the broadest sense (retail management, general business administration, global trade)

Differences in Business School Concepts

• Fritz Redlich (1957) contrasts the concepts of early American and German business schools. In America, business schools promoted ethical conduct and public service. In contrast, German business schools emphasized technical matters.
• He noted that Wharton School insisted on accuracy of accounts, fidelity, and trustworthiness.
• Redlich stated institutions like the Harvard had a moralizing aspect, promoting decent business conduct.
• In Berlin, business administration focused on the practical application of a purpose at hand, like at an institue of technology
• Khurana says that a spirit of betterment has vanished from business schools today - would it be good to rediscover those roots?

Summary of Business Adminstration

• There are methods that foster instrumental reason and evidence as a framework for action, with key concepts like truth and causality.
• Morals provide a values-based directive, which offers alternative key concepts like justice and humanism.
• Empirical data and testing drive these perspectives for analysis.
• The field of marketing applies this base to foster exchange.
• Money fosters efficency.
• Management fosters engagement.