MBA student Jimmy Thai tackled a work-related issue for his final project at California State University, San Marcos. Thai, who was a systems engineer at Spawar (Space and Naval Warfare Systems), analyzed the cost effectiveness of military use of satellite telephones. Thai was allowed to spend up to 25 percent of work time on the project. In addition to looking into technical aspects, Thai met with Wall Street analysts. Using low earth orbital satellites, the phones provided users with connections anywhere on the planet. But each phone cost $1,000 each, and calls ranged from $2 to $5 per minute.

In an MBA capstone report, Thai concluded that the system “wasn’t practical” for the military. He also predicted that the company would be out of business by summer. It was.

Thai’s MBA report attracted attention off-campus, and he presented it at an international conference in France last April. The Pentagon still is interested in satellite communications, but Thai won’t be taking his findings to Washington: he was promoted.

In Torrance, O’Leary Logan’s early morning search for his car keys inspired a final graduate project and a new business. Logan was enrolled in the master of information systems management program at Keller Graduate School of Management in Long Beach. Logan wanted to accelerate getting the degree, so he attended the final class known as a capstone course in Atlanta.

He had a 6 a.m. flight at Los Angeles International Airport. As Logan searched for his keys, he wished he could open his laptop and refer to a 3-D spatial location program to find them. Instead he retrieved his keys the old-fashioned way. But he decided to research the use of electronic tags and the Global Positioning System to track items inside a building.

“I presented it to the class and several people asked if it was available,” says Logan. He earned his degree last September and received the Gateway Information Systems Management Capstone Award for his project. In addition, Logan elaborated on his research and started Ping2Find, a “hands off” inventory tracking system.

Capstone Courses — which often involve a “real world” research project — generally are taken near the end of the master’s program. Students in San Diego State University’s executive MBA program frequently work on job-related projects, says Candace Williams, director of executive management programs. Final projects have included business plans, new systems and development of new products. Turning to the job for a capstone project also acknowledges employers who provide tuition assistance. “It’s a way to give back something tangible,” says Williams.

Completing a work-related project is logical for students enrolled in some of SDSU’s off-site programs at workplaces like Qualcomm. For full-time MBA programs, an individual or team works on a final project for a local company, says Williams.

A capstone project could be the springboard for a new business. At National University, one e-commerce capstone project sought a Web site designer for the business where team member Carol Fagan worked.

The team wanted to take its project outside the classroom, says Albert Renteria, one of the leaders. The team matched up Pan Pacific Retail Properties with Alta Global, a Web site design business. Although Pan Pacific hasn’t yet committed to the new designer, a Pan Pacific representative praised the project. “What was good about the project was the attention to detail,” says Carol Merriman, Pan Pacific director of investor relations and marketing.

National team members are now doing business as Independent Network Consultants — just in time. This summer, the company signed its first contract with pointivity.com, says Renteria.

At the University of San Diego the “Strategy Simulations” capstone course culminates in an intra-school competition involving computer-simulated businesses. Students are divided into teams that develop business plans and work on business concerns like salaries, stocks and an annual report. This year, Firat Ozkan served on a seven-member team that created U/Light Serpentine Design, a lighting design firm. In April, teams from USD and 33 other campuses participated in the 37th annual International Collegiate Business Strategy Competition at the Doubletree Hotel in Mission Valley.

“We learned about the aspects of doing business (such as) if you don’t increase the salaries of marketing people, they quit,” says Ozkan.

The makeup of his team also provided a lesson in international business. Ozkan is from Turkey. Also on the team were a Japanese student, one from China, another from Thailand, a Canadian and two Americans. “Everyone has their own culture and background. We discussed and expressed ideas. If the ideas didn’t match, sometimes we voted,” says Ozkan.

U/Light Serpentine Design took third place in the competition. Ozkan earned his MBA degree and expects to finish USD’s master of e-commerce program this December.

Competition also is part of the capstone at Alliant International University, formerly known as United States International University. Competing in business strategy comprises half of the capstone course that students take toward the end of the graduate program, says adjunct professor Jon Kingsbury. Kingsbury shares instructional duties for the 11-week course with associate professor Louise Kelly. Kingsbury is known as the “game god” because he administers the computer-simulated game.

Each week of the course represents a year in the life of global footwear businesses formed by student teams of about four members each. As students do business, Kingsbury adds challenges like a drop in the demand for products. Students spend at least 10 to 15 hours each week on the project, which may be divided among team members.

This is the ninth year that the game has served as the university’s capstone. Winners’ names are on a plaque in the business department office, a tribute that alumni consider prestigious.

At the University of Phoenix, the type of capstone project depends on when a student enrolled. A mini-thesis business plan is required for students who began classes last year or earlier. This January, the university revised its MBA program, and students graduating from the new program will address a problem and propose a solution, says Michael Reilly, business department chair.

“Every time they come to class, they would be faced with a problem they have to solve. Then they choose a problem. It could be from work, a hypothetical problem or one from another organization,” says Reilly. “They build a business case, write a significant paper and propose a solution.”

Bruce Williams, vice president and director of San Diego UOP campuses, says the new program enables students to further develop their problem-solving skills by directly applying knowledge acquired in the classroom to their current jobs.

At Chapman University, Carlin Beal has taken on several projects while studying for her master of organizational leadership. Beal, accounts payable manager at GenProbe, assessed procurement cards for a research course. While Beal found her employer was on track with the use of business credit cards, she found ways the use could be improved.

Research led to ideas such as designating one card for a piece of equipment such as a copier. That way, the total cost could be assessed, says Beal. For another project, she turned to TV and focused on the program “Survivor” as a reflection of corporate America. “Parallel things happen on the show,” she says. As people were voted off the show, some were devastated. The same is true in the work world. “If you are your job, the layoff is worst,” says Beal. And for those still on the scene, survivors wonder, “Am I next?”

The University of California Irvine Graduate School of Management doesn’t have a capstone requirement. However, projects are required in some courses. This year, teams of first-year MBA student spent a day at the beach trying to build sand castles while facing challenges such as layoffs of team members.

In the marketing principles course, Diana Lai served on a six-member team that studied fast food in terms of In-N-Out Burger and Burger King. Team members developed a survey, posted it on the Internet and then analyzed the results from 200 respondents. In terms of customer satisfaction, “In-N-Out was more successful, people like the fresh ingredients,” says Lai.

UCI courses for fully employed MBAs include Lisa Barron’s negotiation course. Students write a negotiation plan, do the negotiation and write an assessment. Like many educators, Barron strives for project assignments that provide relevance outside the classroom.

For graduate students, business projects can provide experience in strategic management. The capstones can be the foundation of a new business.