Decoding Business Performance: The Top Line, The Line, and The Bottom Line

Posted on June 3, 2023 by Isaac ALLIALI

Decoding Business Performance: The Top Line, The Line, and The Bottom Line

Isaac ALLIALI

In this article, Isaac ALLIALI (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023) decodes the business performance by analyzing the top line, the line, and the bottom line.

Introduction

In the realm of finance and business, terms like “top line,” “the line,” and “bottom line” often dominate discussions. But what do they really mean, and why are they so important in evaluating a company’s financial health? This article aims to elucidate these key financial terms and their relevance to business performance assessment.

The Top Line

The “top line” refers to a company’s gross revenue or sales, so named because it appears at the top of a company’s income statement. It reflects the total revenue earned from the sale of goods or services before deducting any costs or expenses. This figure is crucial as it indicates the company’s ability to sell its products or services, which is fundamental to its business operations.

The strategies for increasing the top line generally focus on enhancing sales through marketing efforts, pricing strategies, product development, or expanding into new markets. While it may seem that a growing top line (revenue) is indicative of profitability, it is important to recognize that this metric alone does not consider the expenses associated with generating that revenue. In other words, the increase in revenue does not guarantee increased profitability. It is crucial for investors to understand that a company’s top line growth does not always align with its profitability.

For instance, if the cost of producing goods or services is rising faster than sales, profits might be shrinking despite increased revenues.

The Line

While “the line” is a less commonly used term in comparison to the “top line” and “bottom line”, it is often used to refer to the “break-even line.” The break-even line represents a point where total costs (including both fixed and variable costs) are equal to total revenue.

At this juncture, the company isn’t making a profit, but it isn’t incurring a loss either. Understanding the break-even point is essential for businesses because it provides a clear target to cover costs and start making profits.

Knowing when a company will hit its break-even point can help investors understand when it might start turning a profit. In addition, a company with a lower break-even point can withstand market fluctuations better, representing a potentially less risky investment.

The Bottom Line

The “bottom line” is arguably the most significant figure on an income statement, representing the company’s net income. It’s the residue left after deducting all expenses, including cost of goods sold (COGS), operating expenses, interest payments, and taxes from the top line. This term gets its name because net income is listed at the bottom of the income statement.

The bottom line demonstrates a company’s profitability, and strategies to improve it usually focus on enhancing gross revenue or reducing costs. Shareholders closely monitor the bottom line because it directly affects earnings per share and dividends. However, solely focusing on improving the bottom line can sometimes lead to unsustainable strategies like excessive cost-cutting.

However, investors should also be aware that an increasing bottom line can sometimes be achieved through aggressive cost-cutting, which may not be sustainable in the long run. It’s important to scrutinize the sources of bottom-line growth: Is it due to increased sales, improved operational efficiency, or simply cost-cutting?

Conclusion

Understanding the terms “top line,” “the line,” and “bottom line” is crucial for interpreting a company’s financial performance. While the top line provides insight into sales performance and the bottom line into profitability, it’s the intricate story that unfolds between these two lines that often holds the most valuable insights for sustainable growth and profitability. As such, a holistic view of a company’s financial health should consider all these aspects.

By focusing on each line in tandem, companies can better navigate their path to profitability, creating strategies that stimulate sales growth (top line), manage costs effectively (the line), and ultimately drive profit (bottom line). However, these metrics should not be used in isolation. Investors should use them in conjunction with other financial ratios and indicators to make informed decisions.

By aligning their strategies to promote sales growth (top line) and efficient cost management practices (the line), companies can navigate their path to profitability. The aim is to strike a balance between revenue generation and cost control to drive profitability (bottom line). However, it’s important to note that these metrics should not be evaluated in isolation. Investors should consider utilizing other financial ratios and indicators to gain a comprehensive understanding of a company’s financial health. These may include profitability ratios (such as gross profit margin, operating margin, and net profit margin), liquidity ratios (like current ratio and quick ratio), debt ratios (such as debt-to-equity ratio and interest coverage ratio), and efficiency ratios (like inventory turnover and receivables turnover). Evaluating these indicators collectively provides a more comprehensive assessment of a company’s performance and prospects, empowering investors to make informed investment decisions. Each line tells a different part of the company’s financial story, and understanding the interplay between them is crucial for investment decision-making.

Illustration

Income statement of Ford.
The Top Line, The Line, and The Bottom Line
Source: the company.

Why should I be interested in this post?

These concepts form the foundation of financial analysis and provide valuable insights into a company’s financial performance. Understanding the top line, which represents revenue or sales, is crucial as it demonstrates a company’s ability to generate income and sustain growth. The bottom line, which reflects the net income or profit after deducting expenses, taxes, and interest, provides a measure of overall profitability. By delving into the line, which encompasses various expenses impacting profitability, finance students can gain a comprehensive understanding of financial statements and develop the analytical skills necessary to evaluate a company’s financial health, make informed investment decisions, and contribute to effective financial strategies. This knowledge is highly applicable in various finance-related roles and is instrumental in navigating the complexities of the business world.

About the author

The article was written in June 2023 by Isaac ALLIALI (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023).

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Understanding the Gordon-Shapiro Dividend Discount Model: A Key Tool in Valuation

Posted on June 2, 2023 by Isaac ALLIALI

Understanding the Gordon-Shapiro Dividend Discount Model: A Key Tool in Valuation

Isaac ALLIALI

In this article, Isaac ALLIALI (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023) explains about the Gordon-Shapiro Dividend Discount Model, which is a key tool in valuation.

Introduction

The Gordon-Shapiro Dividend Discount Model, also known as the Gordon-Shapiro formula and the Gordon Growth Model, is a central tenet in finance. It provides investors and financial analysts a simple tool to value a company based on its future dividends that are expected to remain at a constant growth rate. This model was named after economists Myron J. Gordon and Eli Shapiro, who developed it.

The Gordon-Shapiro formula

The Gordon-Shapiro formula is articulated through a relatively simple equation:

Gordon Shapiro formula

where:

V stands for the value of the stock.
D represents the expected dividend in the next period.
k is the investor’s required rate of return.
g is the constant growth rate of dividends.

This formula is premised on the idea that a company’s stock is worth the present value of all its future dividends.

Proof of the Gordon-Shapiro formula

To understand the derivation of the formula, let us consider a perpetuity model for valuing stocks. In a perpetuity model, the value of an asset is determined by the discounted value of its future cash flows. In the case of stocks, dividends represent the cash flows received by investors (shareholders or stockholders).

Assuming that the company pays a constant dividend indefinitely, the present value of the future dividends can be expressed as follows:

Gordon Shapiro formula

where DIV1, DIV2, DIV3 and so on, represent the expected dividends in subsequent periods.

To simplify the formula, we assume that the dividend grows at a constant rate (g). This means that each subsequent dividend can be expressed as a multiple of the previous dividend:

Gordon Shapiro formula

Substituting these dividend expressions into the perpetuity formula, we have:

Gordon Shapiro formula

Inside the parentheses, we recognize an infinite geometric series with a ratio q equal to (1+g)/(1+k) for the geometric sequence.

Gordon Shapiro formula

The sum of an infinite geometric series denoted by S with a ratio q is equal to 1/(1-q). Applied to the case above, we obtain:

Gordon Shapiro formula

This leads to the Gordon Shapiro formula:

Gordon Shapiro formula

Simplifying further:

Gordon Shapiro formula

Therefore, the Gordon-Shapiro formula for estimating the intrinsic value of a stock is derived.

Assumptions of the Gordon Growth Model

The Gordon-Shapiro Dividend Discount Model is based on several key assumptions:

Constant Growth Rate: the model assumes that dividends grow at a constant rate indefinitely.

Required Rate of Return: the required rate of return exceeds the dividend growth rate. This condition is necessary for the formula to work.

Dividends: the company is expected to distribute dividends.

While these assumptions may not hold in all cases, they offer a starting point for the valuation process.

Applicability of the Gordon Growth Model

The Gordon Growth Model is especially useful in certain scenarios. For example, it is an excellent tool when assessing companies with stable growth rates, such as utility companies or large, mature firms.

However, the model has limitations when used for companies that don’t pay dividends or those with a dividend growth rate that is not consistent. High-growth companies, for instance, reinvest their profits for expansion rather than paying dividends. Similarly, companies facing fluctuating growth rates may present challenges for the model’s assumptions.

Example

After researching Pfizer’s data, we assume that this company pays an annual dividend per share (DPS) of $0.40. The required rate of return (k) for the company’s stock 9,16% was computed with the CAPM Model under the following assumptions: (Risk free rate of return= 4,73%; Beta of Pfizer stock is 0,62 and Market rate of return =11,88%), and the expected growth rate of dividends (g) is 6,40%.

Using the Gordon Shapiro formula:

Gordon Shapiro formula

In this example, based on the given assumptions, the Gordon Shapiro model estimates the intrinsic value (V0) of Pfizer’s stock to be $14.48 per share. The current market price of Pfizer’s stock ($37,60) is significantly higher than the estimated intrinsic value, it could suggest that the stock is potentially overvalued. This may indicate a cautionary signal for investors, as it implies that the stock’s market price may not be justified by the projected dividends and required rate of return. It’s important to note that the Gordon Shapiro model is a simplified valuation tool and relies on various assumptions. The actual value of a stock is influenced by numerous factors, including market conditions, company performance, industry trends, and investor sentiment. Investors should conduct further research, analyze additional factors, and seek professional advice before making investment decisions based solely on the findings of the Gordon Shapiro model or any other valuation model.

Conclusion

Despite its limitations, the Gordon-Shapiro Dividend Discount Model remains a valuable tool in financial analysis and investment decision-making. Its simplicity and focus on dividends make it an attractive model for investors, especially when applied appropriately and in the right context. Investors and financial analysts alike should understand this model as part of their toolkit for assessing a company’s inherent value.

Useful resources

Gordon, Myron J., and Eli Shapiro (1956) “Capital Equipment Analysis: The Required Rate of Profit.” Management Science, 3(1): 102-110.

About the author

The article was written in June 2023 by Isaac ALLIALI (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023).

Posted in Contributors, Financial techniques | Tagged , | Leave a comment

My experience as an EMEA Regional Treasurer intern at Sanofi

Posted on June 2, 2023 by Isaac ALLIALI

My experience as an EMEA Regional Treasurer intern

Isaac ALLIALI

In this article, Isaac ALLIALI (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023) shares his professional experience an EMEA Regional Treasurer intern at Sanofi.

Sanofi

During my internship at Sanofi, a leading global pharmaceutical company headquartered in Paris, I had the privilege of working in the Treasury Department. Sanofi is renowned for its extensive research, development, manufacturing, and marketing of pharmaceutical products across various therapeutic areas. With a steadfast commitment to improving global health, Sanofi’s portfolio includes treatments for diabetes, cardiovascular diseases, vaccines, and rare diseases. As a key player in the pharmaceutical industry, Sanofi holds a significant share of the prescription market.

Logo of Sanofi.
Logo of
Source: the company.

Financial accounts

Income statement of Sanofi.
Logo of
Source: the company.

Strategy

Strategy of Sanofi.
Logo of
Source: the company.

My internship

As a Europe Middle East and Africa (EMEA) Regional Treasurer intern at Sanofi, my internship involved two main aspects. Firstly, I was responsible for reporting on the performance of the company’s subsidiaries on a monthly basis, focusing on key financial metrics such as Days Sales Outstanding (DSO), Days Payable Outstanding (DPO), Days Inventory Outstanding (DIO), and cash flows. This required analyzing financial data, preparing comprehensive reports, and providing insights into the subsidiaries’ financial health. I developed a deep understanding of financial ratios and gained proficiency in financial analysis and reporting.

Additionally, on a day-to-day basis, I played a vital role in implementing alternative banking channels to ensure the sustainability of cash receipts from high-risk countries. This involved close collaboration with banks and local teams to establish robust procedures and systems. To ensure accurate cash receipts matching with product sales, I diligently contacted banks and the local teams on a daily basis. This rigorous process involved verifying and validating each transaction, ensuring the precise quantity of products sold aligned with the corresponding justifying claims. By maintaining meticulous attention to detail, I ensured that every transaction was accurately registered and properly accounted for.

This aspect of my internship demanded strong communication skills, attention to detail, and the ability to manage complex transactions efficiently. It provided firsthand exposure to the challenges and intricacies of international banking operations, risk management, and compliance in high-risk countries.

During my internship as an EMEA Regional Treasurer at Sanofi, I had the additional responsibility of consolidating the representative offices’ register, which included all the bank accounts and power of attorneys (legal documents allowing appointed employees to make decisions on behalf of Sanofi).

This task required me to meticulously reconcile and align the information from various regions before the audit control. To ensure accuracy and completeness, I actively communicated with every regional treasurer, collaborating closely to verify the documentation and address any discrepancies. This process of effective communication and coordination with the regional treasurers was crucial in achieving a thorough and successful consolidation. By ensuring that everything was in order, I contributed to the smooth audit control process and maintained the integrity of the company’s financial records.

My missions

My internship involved two main aspects. Firstly, I was responsible for reporting on the performance of the company’s subsidiaries on a monthly basis, focusing on key financial metrics such as Days Sales Outstanding (DSO), Days Payable Outstanding (DPO), Days Inventory Outstanding (DIO), and cash flows. This required analyzing financial data, preparing comprehensive reports, and providing insights into the subsidiaries’ financial health. I developed a deep understanding of financial ratios and gained proficiency in financial analysis and reporting.

Additionally, on a day-to-day basis, I played a vital role in implementing alternative banking channels to ensure the sustainability of cash receipts from high-risk countries. This involved close collaboration with banks and local teams to establish robust procedures and systems. To ensure accurate cash receipts matching with product sales, I diligently contacted banks and the local teams on a daily basis. This rigorous process involved verifying and validating each transaction, ensuring the precise quantity of products sold aligned with the corresponding justifying claims. By maintaining meticulous attention to detail, I ensured that every transaction was accurately registered and properly accounted for.

This aspect of my internship demanded strong communication skills, attention to detail, and the ability to manage complex transactions efficiently. It provided firsthand exposure to the challenges and intricacies of international banking operations, risk management, and compliance in high-risk countries.

During my internship,I had the additional responsibility of consolidating the representative offices’ register, which included all the bank accounts and power of attorneys (legal documents allowing appointed employees to make decisions on behalf of Sanofi).

This task required me to meticulously reconcile and align the information from various regions before the audit control. To ensure accuracy and completeness, I actively communicated with every regional treasurer, collaborating closely to verify the documentation and address any discrepancies. This process of effective communication and coordination with the regional treasurers was crucial in achieving a thorough and successful consolidation. By ensuring that everything was in order, I contributed to the smooth audit control process and maintained the integrity of the company’s financial records.

Required skills and knowledge

The EMEA Regional Treasurer role at Sanofi requires a combination of knowledge and skills. Here are key areas of expertise and proficiencies relevant to the position:

Financial Analysis: A strong foundation in financial analysis is essential for evaluating subsidiary performance, assessing financial health, and providing meaningful insights. Proficiency in financial ratios, financial modeling, and data analysis enables you to make informed decisions and recommendations.

Treasury Operations: Familiarity with treasury operations, including cash flow management, liquidity management, risk management, and financial reporting, is crucial. Understanding financial instruments, banking relationships, and compliance procedures ensures effective treasury operations and supports decision-making.

Communication and Collaboration: Effective communication skills are vital to engage and collaborate with internal stakeholders, such as regional financial management and local teams. Clear and concise communication fosters productive relationships and ensures the smooth execution of financial processes.

Attention to Detail and Compliance: Meticulous attention to detail is necessary when reporting on subsidiary performances and implementing alternative banking channels. Compliance with internal control procedures, risk mitigation protocols, and financial regulations ensures accuracy, transparency, and integrity in financial operations.

Analytical Thinking: Strong analytical skills are critical for analyzing financial data, identifying trends, and making data-driven decisions. The ability to evaluate risks, identify opportunities, and propose solutions contributes to effective financial management.

Adaptability and Problem-Solving: The dynamic nature of the role requires adaptability, as well as the ability to think critically and solve problems in a fast-paced environment. Resilience, flexibility, and a proactive approach enable you to navigate challenges and drive continuous improvement.

Financial concepts related my internship

Days Sales Outstanding (DSO)

DSO is a financial metric that measures the average number of days it takes for a company to collect payment after a sale is made. Monitoring DSO is crucial for assessing a company’s liquidity position and efficiency in collecting accounts receivable. During my internship, I actively analyzed and reported on DSO, gaining a practical understanding of its significance in cash flow management.

Days Payable Outstanding (DPO)

DPO is a financial metric that measures the average number of days it takes for a company to pay its suppliers after receiving an invoice. Managing DPO effectively is essential for optimizing working capital and maintaining strong supplier relationships. In my reporting responsibilities, I monitored and analyzed DPO, contributing to a comprehensive assessment of the company’s financial performance.

Cash Receipts and Compliance

Ensuring the accurate and timely recording of cash receipts is vital for financial integrity. Implementing alternative banking channels and verifying transactions from high-risk countries required a keen eye for detail and compliance with internal control procedures. This experience emphasized the importance of maintaining rigorous standards to mitigate risk and ensure accurate financial reporting.

Why should I be interested in this post?

The role of EMEA Regional Treasurer at Sanofi offers a compelling opportunity for individuals interested in finance, treasury operations, or the pharmaceutical industry. Here are a few reasons why you should be interested in this post:

Industry Leadership: Sanofi is a global leader in the pharmaceutical industry, renowned for its innovative research and development. Joining the Treasury Department of such a prominent company provides exposure to the complexities of finance within a multinational pharmaceutical corporation, offering a unique and valuable experience.

Financial Responsibility: As an EMEA Regional Treasurer, you would have a significant role in managing the financial assets of Sanofi across the EMEA region. This level of responsibility allows you to make strategic financial decisions, analyze financial performance, and contribute to the company’s financial health.

International Exposure: Working within the EMEA region exposes you to diverse markets, cultures, and business practices. It presents an opportunity to develop a global mindset, adaptability, and cross-cultural communication skills, which are increasingly valuable in today’s interconnected business world.

Learning Opportunities: The Treasury Department at Sanofi offers a dynamic and challenging environment where you can continually enhance your financial knowledge and skills. You will gain exposure to various aspects of treasury operations, financial risk management, liquidity management, and financial reporting.

Impactful Contributions: By actively participating in the implementation of alternative banking channels, you will contribute to ensuring the sustainability of cash receipts from high-risk countries. This responsibility allows you to make a tangible impact on the company’s financial operations and play a vital role in managing financial risks.

Useful resources

Sanofi

Careers at Sanofi

About the author

The article was written in June 2023 by Isaac ALLIALI (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023).

Posted in Contributors, Professional experiences | Tagged , | Leave a comment

The Psychology of Trading

Posted on May 29, 2023 by Theo SCHWERTLE

The Psychology of Trading

Theo SCHWERTLE

In this article, Theo SCHWERTLE (Maastricht University, School of Business and Economics, Bachelor in International Business, 2023) explains how behavioral biases can influence trading of market aprticiapnts.

Behavioral biases of investors

In complex decision environments, people use basic judgements and preferences to simplify the scenario rather than adhere to a strictly rational approach. This use of mental shortcuts is called heuristics, which are quick and instinctively appealing but may result in poor outcomes (Tversky and Kahneman, 1974). The traditional financial theory (based on expected utility theory) assumes that people are rational agents. In contrast to traditional financial theory, behavioral theories argue that people are generally risk-averse with a skewed view of probability (Kahneman and Tversky, 1979). Some common behavioral biases that have been identified in the literature on investment decisions include overconfidence, the disposition effect and herding behavior.

Prospect Theory

We start with the two main drivers of irrationality: value perception and probability perception.

Value perception. The value function proposed by Kahneman and Tversky (1979) is characterized by the following features. First, it is determined based on departures from a reference point. Second, it typically has a downward, concave slope for gains and an upward, convex slope for losses. This suggests that individuals perceive losses as more painful gains as shown in Figure 1.

Figure 1. Perceived value function.
Perceived value function
Source: Kahneman and Tversky (1979).

Probability perception. Individuals tend to assign a lower probability value to outcomes that are more likely to occur and, a higher probability value to outcomes that are less likely to occur as shown in Figure 2.

Figure 2. Perceived probability.
Perceived probability
Source: Kahneman and Tversky (1979).

Overconfidence

Overconfidence manifests as an inclination to have an irrationally excessive level of trust in one’s own abilities and opinions and has been thoroughly investigated across many fields (Fischhoff et al., 1977).

Gervais and Odean (2001) explore how overconfidence develops as a result of a dynamic change in beliefs about one’s ability after observing successes and failures. Successful traders tend to be overconfident due to attributing too much credit to their own ability. They showed that overconfidence is highest among inexperienced traders, as proper self-assessment only develops over time. This leads to suboptimal behavior, such as increased trading volume and volatility, lower expected profits, and poor information utilization (Statman et al., 2006).

Ekholm and Pasternack (2007) investigate the link between overconfidence and investor size.
They show that larger investors are less overconfident than small investors. They also show that larger investors, on average, react more positively to good news and more negatively to bad news than smaller investors. Evidence suggests that smaller, more overconfident investors have worse performance following negative news (Ekholm and Pasternack, 2007).

Grinblatt and Keloharju (2009) argue that sensations seekers (people receiving more speeding tickets) and those who showed more overconfidence as measured by a psychological assessment traded more than the average, even after controlling for other factors that might explain trading activity like age, income and gender. Similarly, individual investors tend to buy stocks that have recently caught their attention, like stocks with high trading volume, extreme one-day returns, or those in the news, whereas institutional investors, especially those who follow a value strategy, do not (Barber and Odean, 2007). These results are confirmed by Barber et al. (2022) as Robinhood users, which are, as evidence suggests, less experienced traders, trade substantially more high-attention stocks.

Additionally, men are more prone to overconfidence than women, particularly in male-dominated industries like finance. Thus, men trade more than women and perform worse in terms of returns. Male investors not only engage in more frequent trading but, compared to female investors, also hold larger and less diversified portfolios (Barber & Odean, 2001; Lepone et al., 2022).

Why should I be interested in this post?

This post explores heuristics and behavioral biases in decision-making, particularly in the context of investment decisions. Overconfidence can lead to poor outcomes. Additionally, it touches on gender differences, with men being more prone to overconfidence and engaging in more frequent trading. By understanding these biases, readers can gain insights into human behavior, make more informed investment decisions, and explore the impact of gender on financial outcomes. Overall, this post offers valuable insights into decision-making processes and their implications.

Related posts on the SimTrade blog

   ▶ Jayati WALIA Trend Analysis and Trading Signals

   ▶ Shruti CHAND Technical Analysis

Useful resources

Barber, B.M. and Odean, T. (2007) All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors Review of Financial Studies 21(2):785–818.

Barber, B.M. and Odean, T. (2001) Boys will be Boys: Gender, Overconfidence, and Common Stock Investment The Quarterly Journal of Economics 116(1):261–292.

Ekholm, A. and Pasternack, D. (2007) Overconfidence and Investor Size European Financial Management.

Fischhoff, B., Slovic, P. and Lichtenstein, S. (1977) Knowing with certainty: The appropriateness of extreme confidence. Journal of Experimental Psychology: Human Perception and Performance 3(4):552–564.

Gervais, S. and Odean, T. (2001) Learning to Be Overconfident Review of Financial Studies 14(1):1–27.

Grinblatt, M. and Keloharju, M. (2009) Sensation Seeking, Overconfidence, and Trading Activity The Journal of Finance 64(2):549–578.

Kahneman, D. and Tversky, A. (1979) Prospect Theory: An Analysis of Decision under Risk Econometrica 47(2): 263.

Lepone, G., Westerholm, J. and Wright, D. (2022) Speculative trading preferences of retail investor birth cohorts Accounting & Finance.

Statman, M., Thorley, S. and Vorkink, K. (2006) Investor Overconfidence and Trading Volume Review of Financial Studies 19(4):1531–1565.

Tversky, A. and Kahneman, D. (1974) Judgment under Uncertainty: Heuristics and Biases Science 185(4157):1124–1131.

About the author

The article was written in May 2023 by Theo SCHWERTLE (Maastricht University, School of Business and Economics, Bachelor in International Business, 2018-2023).

Posted in Contributors, Financial techniques | Leave a comment

My professional experience as B2B Project assistant manager at Dance

Posted on May 29, 2023 by Theo SCHWERTLE

My professional experience as B2B Project assistant manager at Dance

Theo SCHWERTLE

In this article, Theo SCHWERTLE (Maastricht University, School of Business and Economics, Bachelor in International Business, 2023) shares his experience as a B2B Project assistant manager at Dance which is a start-up in urban mobility.

About the company

Dance is a progressive company that is reshaping urban mobility by providing an electric mobility subscription service. The company offers members the freedom to explore their city with an electric bike or moped, with maintenance and repairs included in the membership. Founded by the creators of SoundCloud and Jimdo, Dance is currently operating in Berlin, Hamburg, Munich, Vienna, and Paris, with a focus on making urban commuting more connected, convenient, and environmentally friendly.

Logo of the company.
Logo of Dance
Source: Dance.

My internship

As part of the Dance for Business department, I was privileged to contribute to various crucial aspects of the business, including the development and standardization of Business-to-Business (B2B) playbooks for client outreach, engagement, and account management. I also had the opportunity to manage the company pipeline using our Customer Relationship Management (CRM) tool, conduct competitive market research, and collaborate with cross-functional teams to execute lead generation strategies and client retention initiatives.

My missions

My mission at Dance was multifaceted, encompassing both client relationship management and sales strategy. I was responsible for creating and developing B2B pitch decks, preparing and supporting pitch meetings with new clients, and building long-term relationships with our clients to provide the best service possible. Serve as the first point of contact for all B2B clients, but also to find new strategies to acquire more customers. Furthermore, we were making Partnership deals with other service providers to spread the word about the mobility solution that Dance offers.

Required skills and knowledge

This role required strong interpersonal skills for building and maintaining client relationships, as well as proficiency in using CRM tools to manage the company pipeline. It also called for a solid understanding of sales strategies and market research methodologies. Since we were only a small team, communication and constant prioritization of tasks was paramount. Interpersonal skills have strongly increased during that time since I was constantly pitching to the management of firms like AboutYou or Inditex while also taking care of our current clients.

What I learned

Project Management: In preparing B2B pitch decks and supporting pitch meetings, you would have honed your project management and organization skills.

Communication: Being the first point of contact for all B2B clients and building long-term relationships with them would have strengthened your communication and interpersonal skills.

Strategic Thinking: Conducting competitive market research and collaborating on lead generation strategies likely helped develop your strategic thinking and market analysis abilities.

Problem Solving: Proposing solutions in line with business objectives and incorporating new initiatives shows your problem-solving capabilities.

Financial concepts related my internship

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) refers to the total expenses a company incurs to convince a potential customer to purchase its product or service. It includes costs related to marketing and sales efforts and is a key metric for determining the return on investment for acquisition strategies.

Contribution Margin

Contribution Margin is a financial metric that calculates the profitability for individual items sold by a company. It is determined by subtracting the variable costs (costs that change with the amount of goods or services produced) associated with a product from the revenue generated by that product.

Customer Lifetime Value

Customer Lifetime Value (LTV) is a projection of the total net profit a company expects to earn from a customer throughout the business relationship. It takes into account the revenue a customer would generate, the costs of acquiring and serving the customer, and the duration of the relationship with the customer.

Why should I be interested in this post?

If you’re looking to gain insights into the world of business operations or contemplating a career in a similar industry, this post should be of high interest to you. The financial concepts discussed here form the backbone of many successful businesses. Understanding these concepts can help you view business operations from a new perspective, providing you with a solid base for making informed decisions.

Furthermore, sharing my experience at Dance provides an insider’s perspective into how the start-up operates and how different roles contribute to its success.

My experience at Dance was nothing short of enriching. With the right blend of motivation, attention to detail, and focus on business objectives, I was able to contribute effectively to the company’s success. I hope my insights will inspire and guide those looking to embark on a similar professional journey.

Related posts on the SimTrade blog

   ▶ All posts about Professional experiences

   ▶ Jayna MELWANI My professional experience as a Global Development and Learning Intern at Danone

Useful resources

Dance

About the author

The article was written in May 2023 by Theo SCHWERTLE (Maastricht University, School of Business and Economics, Bachelor in International Business, 2018-2023).

Posted in Contributors, Professional experiences | Tagged , | Leave a comment

The Collapse of Silicon Valley Bank (2023)

Posted on May 19, 2023 by Mirabelle DING

The Collapse of Silicon Valley Bank (2023)

Mirabelle DING

In this article, Mirabelle DING (Telfer School of Management, Bachelor in Finance, 2015-2019) analyzes the collapse of Silicon Valley Bank (SVB).

On March 10th 2023, Silicon Valley Bank, the primary financial institution for the US technology sector, was shut down by California and Federal regulators due to illiquidity and insolvency concerns after depositors withdrew $42 billion within a single day, marking the second largest bank failure in the United States history.

Background of SVB

Silicon Valley Bank (SVB) was founded in 1983 in the Bay Area with its mission to provide banking services to venture capital-backed startups that would have been considered high risk by traditional banks. As a result of its pioneering vision, SVB had established a notable reputation among the tech community, and was providing financing services to nearly half of the venture-backed technology and life science companies in the United States. SVB was ranked the 16th largest bank in the United States with total assets of $209 billion and was recognized as one of America’s Best Banks by Forbes for five consecutive years before its defunction.

Logo of Silicon Valley Bank.
Logo of Silicon Valley Bank
Source: Silicon Valley Bank.

The Solvency-Liquidity Problem

In 2020, the Federal Reserve cut the Federal Funds rate down to a range of 0% to 0.25% and implemented an unlimited quantitative easing policy in response to the impact of the Covid-19 pandemic, which led to a substantial increase in the financial market’s liquidity and the price of financial assets. The deposit base of SVB also experienced a skyrocket from $60 billion to an impressive $190 billion by the end of 2021. With little demand for loans from its clients, SVB allocated almost three quarters of the incremental deposits in long-maturity US Treasury bonds and mortgage-back securities purchases in order to gain capitalize on the interest rate spread. As a result, SVB exposed itself to greater interest rate and market risks.

Starting from March 2022, the Federal Reserve started to raise the Funds rate to counter inflation. The benchmark rate hiked to 4.5%-4.75% within 12 months, causing a plunge in the financial market liquidity and a severe inverted yield curve of long-term bonds and securities.
As interest rates rose, SVB started suffering deep unrealized losses on much of its securities portfolio, amounting to more than $2 billion by the end of 2022.

Furthermore, due to the declining inflow of venture capital funding, many tech start-ups resorted to withdrawing from SVB to support their daily operations. From March to December, the deposits of SVB shrank rapidly from $200 billion to $175 billion. Since SVB did not protect their liabilities with short term investments for quick liquidations, they had to start selling their bonds at a significant loss and relied heavily on short term loans from Federal Home Loan Banks to accommodate these large withdrawals, totaling $15 billion by the end of 2022.

“The Social Media Bank Run”

On March 8th 2023, SVB announced a $1.8 billion loss on its investment portfolio, alongside a plan to raise $2.25 billion. Consequently, Moody’s downgraded the bank’s credit rating, and the stock price of SVB’s parent company, SVB Financial Group, crashed at the next market opening. Prominent entrepreneurs raised concerns about SVB’s financial situation on social media, which went viral and amplified the panic among the bank’s clients. Depositors rushed to withdraw from their SVB account, culminating a total amount of $42 billion in attempted withdraws within 24 hours. SVB was on the verge of collapse as they could not generate enough cash to meet the escalating need for withdrawals.

On March 10th 2023, the Federal Deposit Insurance Corporation, which protects the stability of the financial system, took over Silicon Valley Bank in an effort to protect depositors. Unlike personal banking, most clients held more the $250,000 FDIC insured limit in their accounts, putting them at the risk of losing a portion or all of their deposits that exceeded the threshold. To restrain the fear of financial contagion, the Federal Reserve later implemented emergency measures, ensuring that all deposits at SVB will be guaranteed, even for the amount above the $250,000 limit.

Later, the Federal government announced an emergency lending programing to allow distressed banks to borrow from the Federal Reserve as a contingency liquidity plan to cover their withdrawal needs and to restore public confidence in the financial system.

Conclusion

The collapse of SVB reflected an inadequacy in its risk management and strategy, which could have been avoided through regular review and valuation of their investment portfolio, avoidance of concentrating assets in long-term maturities, possession of sufficient liquid assets, and hedging strategies against rising interest rate. This demonstrates the importance for businesses and organizations to properly and promptly manage their financial risk to prevent or mitigate situations that may lead to financial distress.

Related posts on the SimTrade blog

   ▶ Youssef LOURAOUI Systematic Risk

   ▶ Akshit GUPTA The bankruptcy of Lehman Brothers (2008)

   ▶ Akshit GUPTA The bankruptcy of Barings Bank (1996)

Useful resources

Apricitas Economics The Death of Silicon Valley Bank

The Federal Reserve Re: Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank

About the author

The article was written in May 2023 by Mirabelle DING (Telfer School of Management, Bachelor in Finance, 2015-2019).

Posted in Contributors, Financial news | Leave a comment

My experience as City Manager at HungryPanda

Posted on May 19, 2023 by Mirabelle DING

My experience as City Manager at HungryPanda

Mirabelle DING

In this article, Mirabelle DING (Telfer School of Management, Bachelor in Finance, 2015-2019) shares her professional experience as City Manager at HungryPanda Tech.

About the company

HungryPanda Tech is a global platform focused on overseas Asian community, covering food delivery, online grocery, retail, and lifestyle services. Founded in 2017 in Nottingham, the United Kingdom (UK), HungryPanda has expanded its operations to more than 80 cities in 10 countries, with 3.5 million registered users and over 60,000 merchant partners.

Logo of HungryPanda.
Logo of HungryPanda
Source: HungryPanda.

The operation team is typically composed of three segments: business development, marketing, and delivery operations. The business development team manages accounts for our existing merchant partnerships and reaches out to new business opportunities. The marketing team is responsible for the promotion of the platform and customer acquisition, as well as negotiating sponsorship with local events. The delivery team ensures the efficiency of the delivery dispatch, quality of service, and recruitment of new carriers. The city manager oversees the workflow and coordinates the three departments to ensure seamless teamwork and achievement of the company’s goal.

My job

I worked as City Manager at HungryPanda for the Toronto Area, which is equivalent to Business Manager.

My missions

As City Manager at HungryPanda, my primary mission was to expand market share and enhance profitability.

Asian food delivery is a niche but competitive market in Toronto. To reinforce the competitive advantage of the company, my team and I had to regularly conduct market research, including industry trends, consumer behaviour analysis, and competitor analysis, to develop strategies and stay on top of the game. For example, we initiated a virtual kitchen program with selective partner merchants, where we researched and identified marketable dishes that were popular in areas with a similar demographic as our customer base. We collaborated with the merchants to design the menu and build exclusive virtual brands that were innovative and appealing to the consumers, which helped the merchants boost their revenue while mitigating the risk of modification on their original menus.

Another important duty of the city manager is to analyze the operational and financial data. The financial analysis includes breaking down the contribution margin of each of our merchant partners and evaluating the return on investment (ROI) of each project and market campaign, which is crucial in understanding our financial performance. The operational data analysis, on the other hand, entails app traffic flow, conversion rate, customer retention rate, redemption rate of discount coupons, etc., which facilitates identifying areas of improvement and optimizing the allocation of online resources. For example, if we launch a promotional discount on selective merchants alongside in-app advertising and text message marketing, analyzing the contribution margin and the customer retention rate of each merchant can help us determine the merchants that will continue to generate growth even after the discount period ends. This approach allowed us to maximize the return on our budget spending and ensure efficient utilization of marketing resources.

Knowledge and skills

During my time at HungryPanda, I have come to recognize several important skills that are essential for business operations:

  • Effective communication and coordination among different departments
  • Financial analysis and forecasting to support sustainable growth
  • Strategic planning to identify opportunities and challenges
  • Adaptability to react and adjust strategies in a dynamic business environment

Financial concepts related my job

I describe below the following financial concepts related my job: contribution margin, Gross merchandise volume, and the lifetime value (LTV) to customer acquisition cost (CAC) ratio.

Contribution margin

The contribution margin is calculated by sales revenue less the variable costs, and it represents the available revenue to cover the fixed costs (rent, salaries, market spending, etc.). I used contribution margin analysis to identify the profitability of each project and market campaign, and thereby determined which project or market campaign to continue and to invest in.

Gross merchandise volume

Gross merchandise volume (GMV) is the total money value of transactions on the platform. We used GMV as a key performance indicator to assess the scale and growth of our business and to track the overall performance of our long-term operational strategies.

LTV to CAC ratio

The lifetime value (LTV) to customer acquisition cost (CAC) ratio is the expected revenue from new customers relative to the cost of acquiring them. To encourage potential customers to try out the products and services offered on our platform, we frequently launched campaigns targeted at new registers, including offline promotional giveaways, new user discounts, referral rewards, etc. It is essential to analyze the customer acquisition cost and Lifetime value to evaluate the effectiveness and sustainability of each acquisition channel.

Why should I be interested in this post?

The experience at HungryPanda has instilled in me the importance of financial analysis and forecasting in making informed decisions for business operations. I hope this post shares some perspectives on how the application of financial concepts is used in driving business growth and improving profitability.

Related posts on the SimTrade blog

   ▶ All posts about Professional experiences

Useful resources

HungryPanda

About the author

The article was written in May 2023 by Mirabelle DING (Telfer School of Management, Bachelor in Finance, 2015-2019).
 

Posted in Contributors, Professional experiences | Leave a comment

Key participants in the Private Equity ecosystem

Posted on May 18, 2023 by Matisse FOY

Key participants in the Private Equity ecosystem

Matisse FOY

In this article, Matisse FOY (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023) explains who the key participants in Private Equity (PE) are, and what are their role in the PE ecosystem.

Private Equity is an increasingly important model of financing for companies at different scales. Whether you’re simply interested in the subject or want to find a professional experience, here is a list of the main participants in the PE ecosystem and their function.

Key participants in the Private Equity ecosystem
Key participants in the Private Equity ecosystem
Source: production by the author

A glossary of the participants

Private Equity funds

PE funds are the central actors in the private equity ecosystem, pooling capital from various sources (mainly from Limited Partners and Investment Banks) and invest this money in private companies, meaning companies whose shares cannot be freely bought and sold on the stock market.

The employees of PE funds are responsible for sourcing, evaluating, and managing investments in “Portfolio Companies”.

Their objective is to enhance the performance of those Portfolio Companies. By doing so, they aim to sell these firms later and generate profit. This profit is primarily derived from the investment capital provided by their investors, from which they take a percentage as their fee.

General Partners (GPs)

These are the managers of the PE fund who make the investment decisions. They have a fiduciary duty to act in the best interest of the LPs.

GPs are typically compensated through a management fee, which is a fixed annual fee for the fund’s operation, and a performance fee (also known as “carry”), which is a percentage of the profits of the fund.

Limited Partners (LP)

Limited Partners are the investors in a PE fund. They include institutional investors like pension funds, university endowments (like Harvard University endowment), insurance companies (e.g., AXA, Allianz), and sovereign wealth funds, as well as high net worth individuals.

Limited Partners provide the capital that the PE funds invest and expect a return on their investment.

Portfolio Companies

Portfolio Companies are the companies in which PE funds invest. They are often in need of capital for growth, restructuring, or as part of a strategy to transition the company from public to private.

The goal of PE funds is to take a share in these companies, improve their performance and sell them for a profit.

Investment Banks

Investment Banks often play a crucial role in the PE ecosystem, especially with regards to the acquisition and sale of portfolio companies by PE funds. They can help PE funds identify potential investment opportunities, facilitate transactions, and provide financing by leveraging Limited Partners’ equity. Moreover, they can help portfolio companies go public when they are sold.

Law Firms and Consultants

These professional service providers support PE funds throughout the investment process:

  • Law firms help with legal aspects of transactions, including drafting and reviewing contracts, to ensure compliance with relevant laws and regulations, and advising on the structure of deals to minimize legal risks and tax liabilities.
  • Consultants, on the other hand, assist with due diligence and the development of strategies for improving the performance of portfolio companies. They might also be delegated the sourcing and contact with portfolio companies by PE funds.

Regulators

Regulators oversee and govern the operations of PE funds. They aim to protect the interests of investors and the integrity of the financial markets, in order for the local environment to be as attractive to invest in as possible.

Why should I be interested in this post?

Private Equity is a wide ecosystem. Knowing about its different participants is very important when deciding to work in one of them, in order to understand their importance (who knows, maybe you will be asked questions about these actors will be asked to you in your next interview).

Related posts on the SimTrade blog

   ▶ Louis DETALLE A quick review of the Venture Capitalist’s job…

   ▶ Louis DETALLE A quick presentation of the Private Equity field…

   ▶ Anna BARBERO Career in Finance

Useful resources

The Financial Times Private Equity

Wall Street Journal Private Equity

Coursera’s MOOC Private Equity and Venture Capital

About the author

The article was written in May 2023 by Matisse FOY (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023).

Posted in Contributors, Financial techniques | Tagged | Leave a comment

My professional experience as an Assistant to the CFO at Association Science Ouverte

Posted on May 18, 2023 by Matisse FOY

My professional experience as an Assistant to the CFO at Association Science Ouverte

Matisse FOY

In this article, Matisse FOY (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023) shares his professional experience as an Assistant to the CFO at Association Science Ouverte.

About the structure

The missions of the Science Ouverte Association are “to open young people to science and science to young people, to fight against a feeling of powerlessness and confinement often too present”. It aims to create a visible and effective structure in Seine-Saint-Denis, capable of arousing scientific vocations and helping young people who are committed to this path.

It offers various activities, especially to high school students: tutoring, science and technology courses, various workshops on 3D graphics, programming, etc.

Logo of Science Ouverte Association
Logo of Association Science Ouverte
Source: Association Science Ouverte

I was a part of the Finance Department, a critical unit within the organization that was responsible for managing the association’s financial resources. As a district association, our department was made of only two people: the CFO and me.

The Finance Department oversees a wide range of functions, including budgeting, accounting, and financial reporting. It also plays a strategic role in decision-making processes by providing financial analysis to guide the association’s decisions.

Furthermore, the Department works with external stakeholders, such as auditors, as well as private and public funders.

My internship

My missions

Throughout my internship, I was tasked with various missions to operate and enhance the accounting and financial tools of the Association. Those missions had both short-term, operational objectives, and long-term objectives. Here is what they mainly consisted in:

  • Preparation of files for the audit of the accounts
  • Improving timesheet maintenance (e.g., adding indicators and summary tables for them to be as ergonomic and easy to use as possible)
  • Verification and updating of financial statements, individual funds and association budgets.

Required skills and knowledge

To work in a corporate finance position and be efficient at your job, you will need to acquire many skills:

  • Knowledge of financial concepts: During my internship, I was accompanied by the CFO in my learning of specific financial notions related to an association. My previous knowledge of finance and accounting helped understand and assimilate those notions faster.
  • Basic knowledge of a spreadsheet like Excel: In most structures, Excel will play a key role in your everyday job. Don’t forget to learn basic Excel skills and shortcuts to save time and make your tasks easier.
  • An understanding of the organization’s industry: Each structure has its financial specificities in terms of business model, objectives and regulatory environment. Learning about them as soon as possible will help shape your decision to be most effective.

What I learned

This experience brought me key valuable lessons about professional environment and work ethic. Here are three of them:

  • Attention to details: my time in the Finance department taught me how every piece of documentation, and every penny is important. The margin for error is low, and it allowed me to become meticulous is my work.
  • Effective communication: clear, concise, and timely communication was vital when communicating with my colleagues and superior to accomplished task I was assigned to. When confronted with a new problem, I did not hesitate to contact relevant persons if I couldn’t find the solution myself.
  • Proactivity: I tried to show initiative, anticipate needs, and propose solutions to existing problems that weren’t directly asked by my manager. This helps to create a positive impression and demonstrate your commitment.

Financial concepts related my internship

Financial forecasting

Financial forecasting refers to the process of estimating the future financial performance of an organization. These forecasts played a crucial role in strategic planning, helping the organization know what they could be able to invest in or not in the months and years to come.

Budgeting

Budgeting allows to estimate revenues and expenditures over a future period. During my internship, I saw how a well-structured budget serves as a roadmap, guiding the association’s financial decisions, and keeping the organization on track financially.

Financial Reporting

Financial reporting involves the process of producing statements that disclose an organization’s financial status to funders and the government. As part of my role, I helped in the preparation of the 2021 and had to work on financial reports. These reports were critical in understanding the financial health of the association, making informed decisions, and ensuring regulatory compliance.

Why should I be interested in this post?

An experience in the financial department of an association helps apply your theoretical knowledge about finance while taking a step back about its role: concretize the most impactful project by allocating resources, reporting, and optimizing them, to get the most of every euro you inject in the structure’s activities.

As I was working next to the association’s activity rooms, it was really gratifying to see that my work has a concrete influence on the young people the association is helping.

Related posts on the SimTrade blog

   ▶ All posts about Professional experiences

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   ▶ Martin VAN DER BORGHT My experience as an intern in the Corporate Finance department at Maison Chanel

Useful resources

Association Science Ouverte

About the author

The article was written in May 2023 by Matisse FOY (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023).

 

Posted in Contributors, Professional experiences | Tagged | Leave a comment

My professional experience as a Strategy and Innovation Consultant at Planet Impact Advisory

Posted on May 18, 2023 by Matisse FOY

My professional experience as a Strategy and Innovation Consultant at Planet Impact Advisory

Matisse FOY

In this article, Matisse FOY (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023) shares his professional experience as a Strategy and Innovation Consultant at the firm Planet Impact Advisory.

About the company

Planet Impact Advisory is a consulting firm located in Paris and providing strategy consulting services for corporates and venture funds.

The firm uses methodologies mixing strategy consulting, design thinking, and a strong entrepreneurial approach to solve challenges and build impactful projects.

Its missions range from accompanying a mid-size company in the establishment of an investment strategy in the health sector, to the construction of a European program and two innovative platforms to solve the talent crunch in the health sector.

Logo of Planet Impact.
Logo of Planet Impact
Source: Planet Impact.

My internship experience

My missions

My assignments within the firm were extremely diverse. I was assigned in the mobility, human resources (HR) and even healthcare sectors. These missions mainly consisted in:

  • Sourcing, production of one-pagers, presentation, and matchmaking with startups for a Swiss-German CVC (Corporate Venture Capital Fund)
  • Construction of the strategic documentation and support for a fundraising for a startup in the HR Tech / Future of Work.
  • Conceptualization and competitive analysis of two innovative platforms for an organization in the health sector
  • Participation in the construction of a database of 2,500 startups in the mobility sector.

Required skills and knowledge

Many soft skills are required to perform in the consulting world:

  • Strong analytical skills: much the work involves interpreting complex data through dense literature and translating it into actionable strategies.
  • Communication: whether when facing your superiors or clients, you need to be able to communicate idea in a concise and effective way.
  • Business fundamentals: you don’t need to be an expert with 10 years of experience in each and every business sector you will be working in, but you should at least know about the core aspects of marketing, finance, and project management.

What I learned

This experience brought me key valuable lessons about professional environment and work ethic. Here are three of them:

  • Be honest about what you can do and not to do in a timely manner. Being a people pleaser is not a good thing if you get buried under the workload that you will have accepted.
  • Learn to accept criticisms: there is always room for improvement, especially when starting an experience: don’t take criticism from your superiors personally, and show that you apply it.
  • Keep an eye for the details: the work you’re sending to the clients must be of excellent quality. One of the witnesses of this quality is the documentation that will be sent to them: check and double-check your work to avoid grammar or spelling errors.

Financial concepts related my internship

Return on Investment (ROI)

The ROI helps determine the profitability of an investment or compare the efficiency of different investments by measuring the gain or loss made on an investment relative to the amount of money invested. In consulting, you need to help clients make informed decisions about where they should be investing their money to get the most out of it.

Financial leverage

Financial leverage refers to the borrowed money used to finance the purchase of assets. In consulting, understanding a client’s industry and risk aversion with regards to how much financial leverage it is willing to take is crucial before taking any financial decision.

Profit margin

Profit margin is a profitability ratio calculated as net income divided by revenue, or net profits by sales. It measures how much percentage of sales a company keeps in earnings. Using profit margin analysis helps understand a company’s pricing strategy and cost structure, providing insights into the company’s operational efficiency.

Why should I be interested in this post?

Sometimes, thinking narrowly about your dream career can cut you off from excellent professional opportunities.

During my search for an internship, I was primarily interested in finance, but my position at the firm was not exclusively dedicated to this area. However, this opportunity broadened my horizons and allowed me to approach financial topics in a different context than finance-oriented position. This experience was thus unique compared to most people who wish to pursue a career in finance.

So, the next time you are looking for a professional experience, don’t hesitate to think broader about what you want to learn.

Related posts on the SimTrade blog

   ▶ All posts about Professional experiences

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   ▶ Anant JAIN My Internship Experience at Deloitte

Useful resources

Planet Impact

About the author

The article was written in May 2023 by Matisse FOY (ESSEC Business School, Bachelor in Business Administration (BBA), 2019-2023).
 

Posted in Contributors, Professional experiences | Tagged | Leave a comment