Knowledge is power

Knowledge is power!

Jayna MELWANI

In this article, Jayna MELWANI (ESSEC Business School, Global BBA, 2019-2023) comments on a quote by Benjamin Franklin about the power of knowledge in finance.

“An investment in knowledge pays the best interest.” – Benjamin Franklin

Analysis of the quote

The quote suggests that investing in knowledge and education can be one of the most profitable investments a person can make. This is because knowledge and skills are assets that can appreciate over time, leading to greater personal and professional success. When people invest in themselves through education and self-improvement, they can develop skills and knowledge that can lead to better job opportunities, higher salaries, and more fulfilling careers. Additionally, by staying informed and up-to-date on trends and developments in their field, they can position themselves to be more successful over the long term.

In the context of personal finance, the quote implies that investing in one’s own education and skills can be more valuable than simply focusing on accumulating wealth through savings or investments. While it is important to save and invest wisely, the returns on those investments may be limited without the skills and knowledge needed to identify opportunities and make informed decisions.

About the author of the quote

Benjamin Franklin is one of the founding fathers of the United States and a prominent inventor, writer, and statesman.

Financial concepts related to the quote

The financial concepts related to this quote include the following:

Return on investment (ROI)

ROI refers to the amount of profit or benefit earned on an investment relative to the cost of the investment. In the context of the quote, the ROI on investing in knowledge is believed to be high, as the benefits of knowledge can be long-lasting and contribute to personal and professional success over time.

Time Value of Money

The time value of money refers to the idea that money received in the future is worth less than money received today due to the effects of inflation and the opportunity cost of not being able to invest that money today. Investing in knowledge can provide a long-term return on investment that can increase in value over time, potentially providing a higher return than other types of investments.

Risk and Return

The concept of risk and return refers to the idea that higher risk investments typically offer higher potential returns, while lower risk investments typically offer lower potential returns. Investing in knowledge can be considered a low-risk investment with potentially high returns, as knowledge gained can help individuals make better financial decisions, potentially leading to higher financial rewards in the long term.

Human Capital

Human capital refers to the skills, knowledge, and abilities that individuals possess that can increase their value in the job market and contribute to their earning potential. Investing in knowledge can increase an individual’s human capital, leading to higher income and financial stability in the long term.

Opportunity cost

Opportunity cost refers to the cost of choosing one option over another, including the potential benefits of the option that was not chosen. Investing in knowledge may require a time and financial investment, but the potential benefits of increased knowledge and skills can outweigh the opportunity cost of not investing in oneself.

Compound interest

Compound interest refers to the interest earned on both the principal and the accumulated interest from previous periods. Investing in knowledge can provide a similar effect, as the knowledge gained can be applied over time to further increase one’s earning potential and financial success.

Overall, the financial concepts related to the quote emphasize the value of investing in oneself through education and self-improvement. Just as investing in financial assets can yield returns, investing in knowledge can yield returns in the form of personal and professional growth, which can lead to increased financial stability and success.

My opinion about this quote

In my opinion, this quote highlights the importance of continuous learning and self-improvement as a means to achieve greater success and financial security. I believe that anyone can take your money from you, but no one can take your education away from you.

Why should I be interested in this post?

Business students and students in general are advised to make the most of their education and in fact, continue to educate themselves as having a good education can provide a solid foundation for future success.

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Useful resources

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About the author

The article was written in April 2023 by Jayna MELWANI (ESSEC Business School, Global BBA, 2019-2023).

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

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

Jayna MELWANI

In this article, Jayna MELWANI (ESSEC Business School, Global BBA, 2019-2023) shares her professional experience as a Global Development and Learning Intern at Danone, the world’s leading food company.

About Danone

Danone is a multinational food and beverage corporation that is headquartered in Paris, France. The company produces a wide range of dairy products, water and plant-based food and beverages. Some of the most popular brands owned by Danone include Activia, Evian, Actimel and Danette.

Danone operates in over 120 countries and has more than 100,000 employees worldwide. The company’s mission is to provide health-focused food and beverage products that contribute to the well-being of individuals and the environment.

In addition to its commercial activities, Danone is also committed to promoting sustainable practices and social responsibility. The company has made significant investments in sustainability initiatives such as reducing greenhouse gas emissions, improving water usage efficiency and investing in regenerative agriculture.

Danone is a leading food and beverage company with a strong commitment to health and sustainability. Its portfolio of popular brands and global reach make it a major player in the industry.

Logo of Danone.
Logo of Danone
Source: the company.

The Global Learning Team at Danone

I was part of the Global Learning team at Danone in its headquarters in Paris. It is a team of approximately 15 people who are responsible for launching and maximizing the global learning agenda for the various functions such as Sales & Marketing, Research & Innovation, IT & Data, etc. I was in charge of supporting the global learning agenda for General Secretary, IT & Data and Sustainability.

The global learning and development team at Danone is responsible for creating and implementing programs to support the professional development of employees throughout the company. The team’s mission is to provide employees with the knowledge and skills they need to excel in their roles, grow within the organization and contribute to the company’s overall success.

Some of the key responsibilities of the learning and development team at Danone include:

  • Developing training programs: The team designs training programs that are tailored to the specific needs of different departments and job functions. They can be on-the-job training, e-learning modules, and workshops. For example, I worked closely with the General Secretary team to develop Compliance e-learning modules to be done by all employees worldwide.
  • Managing learning technologies: The team is responsible for managing the learning management system (LMS) used by the company. This includes maintaining the system, monitoring its effectiveness and ensuring that employees have access to the resources they need.

My Experience at Danone

During my internship at Danone, my missions were to support the global learning agenda for the following functions: IT & Data, and General Secretary & Sustainability. My main responsibilities were supporting the implementation of the learning portfolio, liaising with local learning teams to ensure the proper local deployment of the learning activities, measuring and reporting worldwide completion, managing suppliers, and contracts with external learning providers.

It was a 6-month internship that went by very quickly. My day-to-day responsibilities were mainly dealing with the LMS and building reports and dashboards for stakeholders. Though, I was also leading a number of global projects at the same time. One notable project I led was the Compliance campaign. Danone trains its employees worldwide every year on compliance as part of its compliance obligations with external auditors. I led the communications, reporting and stakeholder engagement for this project.

I was also responsible for negotiating deals with external learning providers for upcoming projects. Because of this, I was able to negotiate prices, measuring costs and opportunity costs of learning initiatives.

What I learned during my internship

The main things I learned during my internship at Danone are:

  • I learned how to create powerful AI dashboards to analyze raw reporting data and quickly turn them into insightful analysis.
  • I gained many soft skills such as stakeholder management, interpersonal communication, and negotiation skills.
  • I discovered my passion for health and sustainability and my love for the food and beverage industry.
  • I learned about HR digitalization through innovative technology such as digital onboarding and people analytics.

Financial concepts related my internship

Return on investment (ROI)

ROI is a financial metric that measures the profitability of an investment. In the context of my internship, ROI was used to evaluate the effectiveness of training programs and other development initiatives.

Opportunity Cost

Opportunity cost is the cost of forgoing one option in favor of another. In the context of my internship, the learning team must consider the opportunity cost of investing in employee development vs other potential investments.

Cost-benefit analysis

Cost-benefit analysis is a financial tool that compares the costs and benefits of different options. In the context of learning and development, the learning team can use cost-benefit analysis to evaluate the potential return on investment of different training and development programs. By comparing the costs, the team can make informed decisions about which initiatives to prioritize.

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Useful resources

Danone

About the author

The article was written in April 2023 by Jayna MELWANI (ESSEC Business School, Global BBA, 2019-2023).

The impact of market orders on market liquidity

The impact of market orders on market liquidity

Jayna MELWANI

In this article, Jayna MELWANI (ESSEC Business School, Global BBA, 2019-2023) explains about the financial concept of market liquidity and specifically the impact of market orders on market liquidity.

What is a market order?

A market order is a type of order used in trading that instructs the broker to buy or sell a security immediately at the prevailing market price. Market orders are used when the trader wants to execute the trade quickly and does not want to wait for a specific price.

What is market liquidity and how do market orders affect it?

The impact of a market order on market liquidity can be significant. Market liquidity refers to the ability of traders to buy and sell securities quickly and easily without causing significant changes in the price. When a large number of market orders are executed, it can impact the liquidity of the market by causing sharp changes in the supply and demand for the securities being traded.

For example, if a large number of market orders are executed to sell a particular stock, it can result an increase in supply of the stock in the market, which can cause the price to drop significantly. Similarly, if a large number of market orders are executed to buy a particular stock, it can result in an increase in demand for the stock, which can cause the price to rise sharply.

In addition to impacting the price of the security being traded, market orders can also impact the liquidity of the market as a whole. When market orders are executed, it can cause sudden changes in the supply and demand for securities, which can impact the ability of other traders to buy or sell securities at favorable prices. This can make it more difficult for traders to execute their trades quickly and efficiently, which can reduce overall market liquidity.

Overall, the impact of a market order on market liquidity depends on several factors, including the size of the order, the liquidity of the security being traded, and the overall market conditions. Traders who use market orders should be aware of the potential impact on market liquidity and consider using other types of orders, such as limit orders or stop orders, to minimize the impact of their trades on the market. By doing so, traders can help to ensure that the market remains liquid and efficient, which benefits all market participants.

Why should I be interested in this post?

Understanding market liquidity is important for making informed investment decisions. As business school students, understanding market liquidity can help to make more informed decisions as assets with high liquidity are generally easier to buy and sell quickly and at a fair price.

By understanding market liquidity, students can gain insight into how financial markets work and how liquidity affects asset prices. This knowledge can help students better analyze market trends, predict market movements and make informed investment decisions.

Furthermore, for students pursuing a career in finance, understanding market liquidity can be a valuable asset. Financial institutions and investment firms value employees who possess a deep understanding of market dynamics, including market liquidity.

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Useful resources

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About the author

The article was written in April 2023 by Jayna MELWANI (ESSEC Business School, Global BBA, 2019-2023).