The Gold Standard

December 30, 2024November 19, 2024 by Nithisha CHALLA

The Gold Standard

In this article, Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management (MiM), 2021-2024) explores the origins, implementation, and eventual decline of the gold standard, leading to the establishment of the Bretton Woods system, which redefined global financial stability in the post-World War II era.

Introduction

The concept of using gold as a basis for currency emerged in the early 19th century, aiming to provide a universally accepted standard of value for trade and to reduce inflation. Countries agreed that their paper currency could be exchanged for a fixed amount of gold, which limited the amount of money governments could issue, thus preventing inflation.

The United Kingdom was one of the earliest adopters, establishing the gold standard formally in 1821. The system allowed Britain to stabilize its currency and promote global trade, reinforcing its position as a leading global economic power. This model inspired other countries to adopt similar standards. By the late 19^th century, several countries, including the United States (1900), Germany (1873), and France (1873), adopted the gold standard. The U.S. had been on a de facto gold standard since 1879 and later officially adopted the gold standard in 1900 with the Gold Standard Act, and the practice became increasingly popular as global trade expanded.

The Gold Standard’s Role in Economic Stability

Some key features of the classical gold standard are exchange rates, price stability, and discipline in monetary policy.

Stabilizing Exchange Rates

One of the primary benefits of the gold standard was stable exchange rates, which encouraged international trade and investment. By fixing the value of their currencies to a certain amount of gold, countries reduced currency fluctuation, making trade more predictable.

Preventing Inflation

Price stability (low inflation) was demanded since governments could only print as much currency as their gold reserves permitted. The gold standard limited excessive money printing and helped prevent inflation.

International Trust and Trade

The gold standard fostered trust among trading nations because gold-backed currencies reduced the risk of devaluation. Trade partners knew they were dealing in stable, reliable currencies.

Countries that Opted Out of the Gold Standard

According to an article published by Cooper, R Dornbusch and Hall (1982), until the late 19^th century most countries were on a bimetallic standard, interspersed with occasional periods of inconvertible paper (as in the United States in the 1780s and the 1862-78 period, or Britain from 1797 to 1821). Some countries, such as China and Mexico, were only based on silver until the twentieth century. Holland and Belgium even switched from bimetallism to silver alone in 1850 on the grounds (following the California gold discoveries in 1848) that gold was too unstable to provide the basis for the currency. The United States adopted a de facto gold standard with the resumption of specie payment on the Civil War greenbacks in 1879 (some would say it was formal since the standard silver dollar was dropped from the coinage in the “crime of 1873”); it moved formally with the Gold Standard Act of 1900.

Though several countries opted for the classical gold standard, there were still many countries who chose to opt out because of economic challenges:

Economic Challenges and Opt-Outs: Some countries struggled to adopt the gold standard, especially those with weaker economies or limited gold reserves. For example, several Latin American countries and parts of Eastern Europe either delayed adopting the standard or abandoned it after a short period due to limited gold resources.
Flexibility vs. Stability Debate: Countries facing frequent economic crises found the gold standard too restrictive. By adhering to a strict gold-based system, governments had less flexibility to respond to economic downturns, which later became a crucial issue in the Great Depression.

The Great Depression and the Decline of the Gold Standard

During the Great Depression (1929–1939), many countries faced extreme economic challenges. The rigid nature of the gold standard prevented governments from increasing the money supply to stimulate growth, worsening the economic crisis.

In response, several major economies, including the United Kingdom (1931) and the United States (1933 under President Franklin D. Roosevelt), abandoned the gold standard to regain control over their monetary policies. This allowed them to inject liquidity into the economy, stimulating growth and reducing unemployment. The gold standard was briefly reinstated in a modified form, known as the “gold exchange standard,” but it was ultimately unsustainable in the post-Depression global economy.

Transition from the Gold Standard to the Bretton Woods System

After World War II, the world needed a new financial system to prevent the economic instability that had contributed to the Great Depression. The gold standard was no longer viable, but there was still a need for a stable international currency framework.

In 1944, delegates from 44 nations gathered in Bretton Woods, New Hampshire, to establish a new global monetary system. The Bretton Woods system introduced a modified form of the gold standard where the U.S. dollar became the central reserve currency, convertible to gold at a fixed rate of $35 per ounce.

Some key features of the Bretton Woods system were:

U.S. Dollar as the Global Reserve: Countries agreed to peg their currencies to the U.S. dollar, and in turn, the dollar was backed by gold. This established the U.S. as the central player in global finance.
International Monetary Fund (IMF) and World Bank: The Bretton Woods conference also established the IMF and the World Bank to oversee exchange rates, provide financial assistance, and promote economic development.

The figure below shows the dollar conversion price to gold bullion for the period 1914-2024.

Dollar conversion price to gold bullion for the period 1914-2024

Source: Wikipedia

By the 1960s, the U.S. began running significant trade deficits, and its gold reserves dwindled as foreign governments exchanged dollars for gold. The U.S. could no longer sustain the gold-dollar convertibility at the set rate of $35 per ounce. In 1971, President Richard Nixon announced the end of dollar convertibility to gold, effectively ending the Bretton Woods system. This decision led to a floating exchange rate system, where currencies were no longer tied to gold but fluctuated based on market forces.

Conclusion

The gold standard played a vital role in creating a stable economic environment and promoting international trade in the 19^th and early 20^th centuries. However, its rigidity limited countries’ ability to respond to economic crises, eventually leading to its abandonment during the Great Depression. The Bretton Woods system provided a middle ground, establishing a dollar-based standard that aimed to maintain stability while allowing more flexibility. However, as global economies evolved, even this system proved unsustainable, paving the way for today’s floating exchange rate regime.

Why should I be interested in this post?

Gold has been a key financial asset for centuries, acting as a store of value, a hedge against inflation, and a safe-haven asset during economic crises. Understanding its investment options helps students grasp fundamental market dynamics and investor behavior, especially during periods of economic uncertainty.

Useful resources

Academic research

Cooper RN, R Dornbusch, RE Hall (1982) The Gold Standard: Historical Facts and Future Prospects, Brookings Papers on Economic Activity, 1982(1): 1-56.

Business

World gold council The Bretton Woods System

Federal Reserve History Creation of the Bretton Woods System

Other

Wikipedia Gold

Wikipedia Bretton Woods system

About the author

The article was written in November 2024 by Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management (MiM), 2021-2024).

My experience as an Accounting Assistant at Dafinity

April 3, 2025October 18, 2024 by Samia DARMELLAH

My experience as an Accounting Assistant at Dafinity

In this article, Samia DARMELLAH (ESSEC Business School, Global BBA, 2020-2024) shares her professional experience as an Accounting Assistant at Dafinity.

About Dafinity

Dafinity is a well-established accounting firm in France, dedicated to providing tailored financial services to its clients.

They offer three main services: Part-Time CFO Services, Transaction Advisory Services (TAS), and Digital Transformation Consulting (TD).

Part-Time CFO Services

This means they provide expert financial leadership to companies that may not need a full-time Chief Financial Officer. They help guide these businesses through financial challenges and support their growth.

Transaction Advisory Services (TAS)

This service helps businesses with important financial transactions, like mergers or acquisitions, ensuring everything goes smoothly.

Digital Transformation Consulting (TD)

Dafinity assists companies in automating and optimizing their financial processes, making their operations more efficient.

The firm has worked with several notable clients, including BPI France, Deepki, and Djoko. Its dedication to quality service has made it a trusted partner for many businesses.

During my three-month internship at Dafinity (Spring 2021), I had the chance to work as an Accounting Assistant. In this role, my primary responsibilities included entering accounting entries, preparing tax returns, and assisting in the monthly review of accounts. This experience allowed me to gain valuable insights into the financial processes of a leading accounting firm and sharpen my analytical skills as I learned to assess the financial health of various clients.

Logo of Dafinity.

Source: Dafinity.

My missions

During my three-month internship as an accounting assistant at Dafinity, I had the opportunity to dive into a variety of tasks that significantly contributed to my professional growth. Each responsibility offered a unique learning experience that enhanced my understanding of the accounting field.

One of my key tasks was entering accounting data into the firm’s systems. This role was crucial because it emphasized the importance of accuracy and attention to detail in financial reporting. I quickly learned that even the smallest error could lead to larger discrepancies down the line.

I also participated in the review of monthly accounts, where I checked financial statements for accuracy. This process provided me with valuable insights into how businesses manage their finances and maintain their financial health. It was fascinating to see firsthand the level of scrutiny that goes into ensuring financial statements are precise and reflective of reality.

Additionally, I contributed to preparing tax returns, including VAT (Value Added Tax) and other corporate taxes. This task introduced me to the complexities of tax regulations and the necessity of compliance, revealing just how critical it is for businesses to stay on top of their tax obligations.

Interacting with clients was another significant aspect of my role. I managed document requests and provided guidance, which greatly improved my communication skills. These interactions taught me the importance of understanding clients’ needs and being able to offer solutions that align with their goals.

Finally, I assisted in the preparation of documents for annual audits. This experience underscored the significance of transparency and accuracy in financial reporting. I realized that thorough preparation is key to a successful audit, reinforcing the importance of diligence in all aspects of accounting.

Required skills and knowledge

During my internship, I learned that several important skills and knowledge areas are essential for success in accounting. First, being comfortable with accounting software, particularly Excel, was crucial for tasks like entering data and analyzing financial information. Understanding basic accounting principles and tax regulations was also necessary to prepare accurate tax returns and ensure compliance with laws.

Additionally, effective communication was important because I frequently interacted with clients. Being able to explain information clearly helped build trust and ensured that clients felt supported. Attention to detail was vital, as even small errors in accounting can lead to significant issues. Finally, being able to think critically and solve problems was important when faced with challenges, like discrepancies in financial records.

Overall, these experiences helped me grow and prepared me for future opportunities in finance.

What This Experience Brought Me

My time at Dafinity has been incredibly rewarding for several reasons:

Skill Development

I gained hands-on experience in accounting and finance, which complements what I’ve learned in school. This practical knowledge will be invaluable as I continue my career.

Understanding the Firm’s Environment

Working at Dafinity gave me a clear picture of how an accounting firm operates. I learned about the services they offer, like part-time CFO support and transaction advisory services, and how these help businesses succeed.

Interpersonal Skills

Working with clients improved my communication skills and taught me how important it is to build good relationships in a professional setting. Understanding client needs and providing solutions is key to success.

Financial concepts related my internship

Cash-flow

Cash flow refers to the movement of money in and out of a business, indicating its liquidity and financial health. It is essential for maintaining operations and meeting obligations. During my internship at Dafinity, I gained insights into how businesses manage their cash flow by monitoring receivables and payables. Understanding cash flow was crucial for helping clients develop strategies to optimize their financial resources, ensuring they have enough liquidity to support their operations and growth initiatives.

Depreciation

Depreciation is the method used to allocate the cost of a tangible asset over its useful life, reflecting the asset’s reduction in value over time. This accounting concept is vital for accurate financial reporting and tax calculations. In my role as an accounting assistant, I was involved in preparing financial statements where I learned how depreciation impacts a company’s profit margins and tax liabilities. Properly accounting for depreciation helps businesses provide a clearer picture of their financial position and comply with accounting standards.

Fixed Assets

Fixed assets refer to the long-term tangible assets that a company owns and uses in its operations, such as buildings, machinery, and equipment. These assets are critical for generating revenue and sustaining operations. During my internship, I analyzed the fixed assets of clients to assess their asset utilization and long-term financial planning. Understanding the implications of fixed assets helped me recognize how investments in these assets can drive growth and efficiency, emphasizing the importance of strategic asset management in financial decision-making

Useful resources

Dafinity

About the author

The article was written in October 2024 by Samia DARMELLAH Samia DARMELLAH (ESSEC Business School, Global BBA, 2020-2024).

My Experience as a Credit Risk Portfolio Analyst at Société Générale Private Banking

April 3, 2025October 18, 2024 by Samia DARMELLAH

My Experience as a Credit Risk Portfolio Analyst at Société Générale Private Banking

In this article, Samia DARMELLAH (ESSEC Business School, Global BBA, 2020-2024) shares her professional experience as a Credit Risk Portfolio Analyst apprentice within Société Générale Private Banking.

Société Générale

Société Générale is a major player in French banking, established in 1864. According to an Xerfi study (2024), it’s the third-largest bank in France, behind BNP Paribas and Crédit Agricole (in terms of net banking income (NBI)), and plays a crucial role in the financial landscape. It also ranks as the sixth-largest bank in Europe and the twenty-first largest worldwide.

I have the opportunity to work as a Credit Risk Portfolio Analyst apprentice within Société Générale Private Banking for two and a half years (2022-2024). In this role, my primary responsibility was to assess and monitor the risks associated with the loans provided by the private bank.

Logo of Société Générale.
Logo of Société Générale - Credit Risk Portfolio Analyst
Source: Société Générale.

What is a Credit Risk Portfolio Analyst?

A Credit Risk Portfolio Analyst, also called “Credit Risk Analyst,” has the principal task of monitoring the bank’s credit portfolios to ensure that counterparties (borrowers) can repay their debts. In other words, we continuously evaluate the financial health of borrowers, whether companies or individuals, to prevent potential losses for the bank.

In the private banking sector at Société Générale, clients are often wealthy individuals or companies with significant assets. This sometimes complicates risk assessment, as we need to analyze various types of assets used as collateral, such as stocks, bonds, or mutual funds.

My missions

1. Credit Portfolio Monitoring

One of my responsibilities is closely monitoring the bank’s credit portfolio, particularly those of private clients. This involves daily analysis of ongoing loans and assessing potential risks associated with changes in the economic and financial situation of borrowers.

I am also responsible for producing credit risk reports, where I analyze indicators such as Exposure At Default (EAD), Expected Credit Loss (ECL), and Risk-Weighted Assets (RWA). These data points help us identify where the risks lie and how best to respond to them.

2. Credit Provisioning

Another essential part of my job involves credit provisioning. In collaboration with financial and commercial teams, I help identify weakened counterparties—borrowers who may struggle to repay their debts. My role is to determine the necessary level of provisions to cover the risks, a delicate exercise that requires both caution and anticipation.

3. Stress Tests on Financial Assets

Another important mission involves stress tests. These tests simulate adverse economic scenarios to assess how the credit portfolio would react under such conditions. For example, we simulate a sharp drop in financial markets or an economic crisis and analyze the impact on collateralized assets such as stocks, bonds, and mutual funds. These simulations help us prepare for unforeseen events and ensure better risk management.

4. Regulatory Projects

The banking sector is highly regulated, and I am involved in implementing new regulatory projects. This includes, for example, adapting to new European and international standards, such as those set by the Basel Committee, which dictate rules on credit risk management. This work involves a lot of coordination between teams and requires an understanding of the technical implications of these regulations.

Required skills and knowledge

Throughout my apprenticeship, I develop a strong set of skills. Firstly, mastering financial tools specifically, I improve my Excel skills, essential for analyzing and manipulating complex financial data. I also work with specific banking risk management tools to assess credit risk and produce the required reports.

Additionally, risk assessment requires a keen eye for numbers, great rigor, and critical analytical skills. It is crucial to quickly identify warning signs while managing large volumes of data.

Finally, my role involves many interactions with commercial, financial, and regulatory teams. I learn to communicate my analyses clearly and collaborate closely with different stakeholders, which is essential for successfully managing risk projects.

What This Experience Brought Me

Working within the Risk Management department at Société Générale Private Banking has been a particularly enriching experience. I have the opportunity to work on complex topics and gradually gain autonomy. This position allows me to understand all aspects of credit risk management and the strategic implications for a major private bank.

I also have the chance to evolve in an environment that values continuous learning. I was able to train continuously, whether through exchanges with bank experts or internal training sessions. This experience has truly been a steppingstone for my future career, opening up numerous opportunities in the field of risk management and finance.

In conclusion, this apprenticeship as a Credit Risk Portfolio Analyst has been one of the most formative human and professional experiences. It allows me to acquire solid technical and analytical skills while immersing myself in the core issues of risk management for a major banking institution.

Financial concepts related my internship

Probability of Default (PD)

Probability of Default (PD) is a measure of how likely it is that a borrower will fail to repay a loan. It’s essentially an estimate of the probability that a company or individual won’t meet their financial obligations. Banks use this to assess how risky a loan might be before lending money.

Loss Given Default (LGD)

LGD measures the percentage of a loan that a lender expects to lose in case of default, after accounting for recoveries from collateral. It’s a key component in determining credit risk exposure. LGD is often combined with PD to calculate potential credit losses.

Stress Test

A stress test simulates adverse economic conditions to evaluate how a financial institution or portfolio would react to crises. It’s used to identify vulnerabilities and assess the resilience of assets under extreme scenarios. Stress tests are essential for risk management and regulatory compliance.

Why should I be interested in this post?

If you’re interested in the world of finance, the position of Credit Risk Portfolio Analyst offers a valuable opportunity. This role involves assessing and managing credit risk for high-net-worth individuals and large corporations, providing exposure to various areas of finance. You will be responsible for monitoring loan portfolios, conducting financial analysis, and preparing detailed reports, all of which require strong analytical skills and attention to detail.

I highly recommend pursuing this position, especially within a banking institution. Working at a bank allows you to gain essential experience in risk management with less complex credit situations. Once you have a solid foundation, you can consider advancing to roles in investment funds, where the stakes and responsibilities are significantly higher.

Useful resources

Presentation of Société Générale

Le risque de crédit – Cairn.info

L’univers des risques en finance – Cairn.info

About the author

The article was written in October 2024 by Samia DARMELLAH Samia DARMELLAH (ESSEC Business School, Global BBA, 2020-2024).

Weiji Zhang: The Entrepreneur Behind Buddyp2p – Innovating Peer-to-Peer Parking and EV Charging

August 28, 2024August 28, 2024 by Weiji ZHANG

Weiji Zhang: The Entrepreneur Behind Buddyp2p – Innovating Peer-to-Peer Parking and EV Charging

In this article, Weiji ZHANG shares his journey as the founder of Buddyp2p, a platform dedicated to peer-to-peer parking and electric vehicles (EV) charging. Originally from China and raised in Spain, Weiji brings an international perspective to his entrepreneurial endeavors, which focus on creating impactful, sustainable solutions.

About the Company

Buddyp2p

Buddyp2p was launched at the end of 2022 with a mission to create a sustainable impact by helping people reuse their resources. Initially conceived as a peer-to-peer car-sharing platform, Buddyp2p pivoted to focus on parking and EV charging sharing due to external factors. The platform differentiates itself by offering both services in one app, providing users with a convenient solution for managing parking and charging needs.

Logo of Buddyp2p.

Weiji’s Entrepreneurial Journey

Inspiration and Motivation

Weiji and his flatmate were inspired to start Buddyp2p by a desire to create a positive impact on society. Their motivation led them to develop a platform that encourages the efficient use of resources, aligning with broader sustainability goals. This focus on impact over profit is a core value that drives the company.

Challenges and Solutions

One of the biggest challenges Weiji faced was balancing his studies, social life, and entrepreneurial responsibilities. This required making sacrifices and prioritizing his business over other commitments. Additionally, Weiji encountered the risk of burnout, which he only realized later in his journey. Despite these challenges, his determination and ability to stay calm under pressure helped him navigate these obstacles successfully.

Milestones and Success Stories

Building a Strong Team

One of Buddyp2p’s significant milestones has been the development of a solid internal team, including experienced professionals in marketing, finance, and legal roles. This team has been crucial in driving the business forward and increasing its traction in the market.

Skills and Knowledge for Success

Weiji believes that determination, openness to feedback, and the ability to make sound judgments in challenging situations have been critical to his success. He also emphasizes the importance of maintaining an open mind and being receptive to criticism, which has allowed him to continuously improve and adapt.

Future Vision and Impact

Weiji envisions Buddyp2p having a significant impact on the industry and community in the coming years. By helping people monetize their unused parking spaces and encouraging the adoption of electric vehicles, Buddyp2p aims to contribute to a more sustainable future. The platform also plans to incentivize the use of solar energy, further aligning with environmental goals.

Advice for Aspiring Entrepreneurs

Weiji advises aspiring entrepreneurs to never give up, be self-critical, and network whenever possible. He also highlights the importance of being smart about giving up shares and not being greedy. Finally, he encourages young entrepreneurs to take risks and not be afraid of making mistakes, as these experiences are invaluable for growth.

Useful Resources

Buddyp2p

About the Author

The article was written in August 2024 by Weiji ZHANG, the founder of Buddyp2p.

Johan Sjöö: The Visionary Behind Hale – A Holistic Wellness Platform

August 28, 2024August 28, 2024 by Johan Sjöö

Johan Sjöö: The Visionary Behind Hale – A Holistic Wellness Platform

In this article, Johan SJOO shares his vision and journey as the founder of Hale, a company dedicated to mental health, self-improvement, and overall wellness. Although still in the conceptual phase, Johan’s commitment to creating a platform that empowers individuals to achieve their best selves is evident in his innovative approach.

About the Company

Hale

Hale is an upcoming platform focused on providing accessible mental health and self-improvement resources. The core offering will be a free-to-download app that integrates tools such as guided meditations, workout routines, breathwork sessions, and mental health tracking. Johan envisions Hale as a holistic platform that also includes physical recovery tools like ice baths and saunas, creating a comprehensive wellness ecosystem. The use of AI to provide personalized wellness plans is a key differentiator that sets Hale apart from other platforms in the industry.

Logo of Hale.

Johan’s Entrepreneurial Journey

Inspiration and Vision

The inspiration for Hale stemmed from Johan’s personal experiences and his observation of the growing mental health challenges faced by individuals globally. He is driven by a passion for helping people improve their mental and physical well-being, and he aims to make these resources widely accessible through Hale.

Challenges and Strategic Solutions

One of the anticipated challenges Johan faces is securing funding to bring Hale to life. To overcome this, he plans to network with potential investors, develop a detailed business plan, and create a prototype of the app. This approach will help him demonstrate the potential impact of Hale and attract the necessary resources to move forward.

Milestones and Success Stories

Developing the Hale App

A significant milestone Johan envisions is the completion of the Hale app’s initial prototype, followed by positive feedback from a focus group. This will validate the concept and provide valuable insights for further development, marking a critical step toward turning Hale into a reality.

Skills and Knowledge for Success

Johan believes that a deep understanding of mental health and wellness, proficiency in app development, and strong business acumen are crucial for success. Knowledge in user experience design and digital marketing will also be essential as he continues to develop and refine Hale. Continuous learning and staying updated with the latest trends in wellness technology will be key to the platform’s progress.

Future Vision and Impact

Johan hopes that Hale will revolutionize the wellness industry by providing accessible mental health and self-improvement tools. His goal is to positively impact communities by promoting mental well-being and empowering individuals to achieve their best selves. The incorporation of recovery tools like ice baths and saunas will contribute to a holistic approach to health.

Advice for Aspiring Entrepreneurs

Johan advises aspiring entrepreneurs to stay committed to their vision while remaining adaptable to changes. He emphasizes the importance of solving real problems and prioritizing user needs. Building a network of mentors and peers can provide invaluable support, and ensuring that your business model includes sustainability and accessibility will maximize your impact.

Useful Resources

Hale

About the Author

The article was written in August 2024 by Johan SJOO, the founder of Hale.

Álvaro Jiménez: The Creative Force Behind Watchderful and OurWater

August 28, 2024August 28, 2024 by Álvaro JIMENEZ

Álvaro Jiménez: The Creative Force Behind Watchderful and OurWater

In this article, Álvaro JIMENEZ shares his journey as an entrepreneur, his insights into creating two distinct businesses—Watchderful and OurWater—and the lessons he’s learned along the way.

About the Companies

Watchderful

Watchderful, founded nearly four years ago, is a brand born from Álvaro’s passion for watches. The company specializes in creating custom, hand-painted timepieces that are not just luxurious, but also unique. Unlike competitors who mass-produce “limited edition” watches, Watchderful focuses on exclusivity, offering one-of-a-kind pieces that embody a strong motivational message for the wearer.

Logo of Watchderful.

OurWater

OurWater is a pioneering company in Europe that provides water for free, with a unique business model that relies on sponsorships and advertisements placed on the bottles. Inspired by a similar concept in the United States, Álvaro and his team have positioned OurWater as a brand that not only offers a necessary resource but also challenges the status quo in the beverage industry.

Logo of OurWater.

Álvaro’s Entrepreneurial Journey

Early Beginnings

Álvaro’s entrepreneurial spirit ignited at the age of 15 when he launched his first business, Emperor_Logos, on Instagram. This venture, which involved creating logos and editing videos, was the stepping stone to his later success. His passion for watches began when he purchased his first quality timepiece, a Hamilton Pan-Europ, which ultimately led to the founding of Watchderful.

Challenges and Overcoming Them

One of the significant challenges Álvaro faced was navigating the legal landscape in Spain, particularly the complexities of tax obligations. A specific incident with OurWater highlighted the financial risks of missing a payment, which spiraled into a substantial debt. However, Álvaro managed to overcome this setback, and the experience taught him the importance of keeping a close watch on finances and legal responsibilities.

Milestones and Success Stories

Watchderful’s “ONE OF TEN” Collection

The “ONE OF TEN” collection represents a major milestone for Watchderful. This exclusive line features watches adorned with precious stones and high-quality Swiss movements, each custom-designed to meet the desires of elite clients. Selling these watches at $5000 each, Álvaro has already secured buyers for several pieces, further solidifying Watchderful’s position in the luxury market.

Skills and Knowledge for Success

Álvaro attributes his success to a blend of patience, consistency, creativity, negotiation skills, and watchmaking expertise. He emphasizes that patience is key, as building a business takes time, and consistency in effort is crucial. Creativity sets his brand apart, while strong negotiation skills help him navigate the competitive landscape. His deep understanding of watchmaking also gives him a significant edge in a field that requires precision and attention to detail.

Future Vision and Impact

Álvaro envisions Watchderful becoming a legacy brand, similar to Rolex, but with a more profound message. He is determined to make Watchderful a name that endures for generations. For OurWater, Álvaro aims to disrupt the market further by challenging large corporations and ensuring that access to clean water becomes a universal right.

Advice for Aspiring Entrepreneurs

Álvaro’s advice to aspiring entrepreneurs is simple: take action. He believes that hands-on experience is the best teacher. He encourages others to follow their passions, stay consistent, and never lose sight of their goals, no matter how challenging the journey may be.

Useful Resources

Watchderful

OurWater

About the Author

The article was written in August 2024 by Álvaro JIMENEZ, the founder of Watchderful and OurWater.

My Internship Experience as a Strategy Consultant at Devlhon Consulting

December 27, 2024August 5, 2024 by Mickael RUFFIN

My Internship Experience as a Strategy Consultant at Devlhon Consulting

In this article, Mickael RUFFIN (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2023-2024) shares his professional experience as a Strategy Intern Consultant at Devlhon Consulting.

My Internship

My six-month internship in 2021 at Devlhon Consulting as a Strategy Consultant was a period filled with learning opportunities and stimulating challenges. From the onset, I was involved in high-value projects, for example, the reorganization of an north Africa ban’s branch network, allowing me to apply my strategic analysis skills and enhance company performance.

Logo of Devlhon Consulting.

Source: the company.

The Department

Devlhon Consulting’s Strategy Department focuses on providing strategic advisory services to improve client profitability and operational efficiency. The department handles a diverse range of projects, including market analysis, business restructuring, and financial performance improvement for various industries (for example, AXA, BNPP, Attijariwafa Bank,Dioul

My Missions

One of the most significant projects I undertook was conducting a strategic due diligence to enhance the profitability of a North African bank. This project allowed me to understand the nuances of African financial markets and develop actionable recommendations for improving the bank’s financial performance. Another key assignment was analyzing a Net-Zero banking tool for a French bank as part of its long-term strategic planning, which involved sustainability and green finance considerations. The tool was a software to be tested, allowing the bank to evaluate the carbon impact of the projects it was financing, with the aim of finding a balance between pollution and depollution.

Required Skills and Knowledge

The internship required a blend of technical and interpersonal skills. Technical skills included strategic analysis, financial modeling, and proficiency in data analysis tools (Power BI or Power Pivot and Dax). Interpersonal skills involved effective communication, teamwork, and the ability to present complex information clearly to clients and stakeholders.

What I Learned

I also contributed to the overhaul of a Cameroonian fintech’s business plan, similar to Lydia. By proposing practical adaptations, I helped the company strengthen its business model to better meet local market needs. These experiences enriched my professional journey, providing me with a global and strategic view of banking and financial operations, while developing essential skills in analysis and project management.

Financial Concepts Related to My Internship

Three financial concepts that were closely related to my internship at Devlhon Consulting include strategic due diligence, business model analysis, and sustainability in finance.

Strategic Due Diligence

Strategic due diligence was crucial for assessing the financial health and growth potential of the North African bank. This involved evaluating financial statements, market conditions, and competitive positioning to make informed recommendations. My role required meticulous analysis and strategic thinking to identify opportunities for profitability improvement.

Business Model Analysis

Analyzing the business model of the Cameroonian fintech required a deep understanding of financial structures, revenue streams, and market dynamics. I developed a comprehensive business plan that included financial projections and strategic initiatives to enhance the company’s competitive edge and market responsiveness.

Sustainability in Finance

The analysis of the Net-Zero banking tool involved integrating sustainability principles into financial planning. This concept focused on aligning banking practices with environmental goals, such as reducing carbon footprints and promoting green investments. My work contributed to developing strategies that balanced financial performance with sustainability objectives.

Why should I be interested in this post?

This position provides an overview of the various professions and actors in the finance sector, especially in FIG (Financial Institutions Group). It is a good first internship to discover a wide range of careers.

Useful resources

Company Website

Recruitment Platform

About the author

The article was written in August 2024 by Mickael RUFFIN (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2023-2024) .

My Internship Experience as a Structured Finance Analyst at Société Générale

December 4, 2024August 5, 2024 by Mickael RUFFIN

My Internship Experience as a Structured Finance Analyst at Société Générale

My Internship

During my one-year apprenticeship at Société Générale CIB, I had the opportunity to work as a Structured Finance Analyst within the S&E (Sanction & Embargo) team. This experience was a crucial step in my career, providing me with an in-depth understanding of the complex dynamics of finance within the context of international sanctions and economic embargoes.

Logo of Société Générale CIB.

Source: the company.

The Department

The S&E team at Société Générale is responsible for managing the bank’s activities in regions affected (Sanction Country.png) by international sanctions and embargoes. This includes ensuring compliance with legal and regulatory requirements, assessing the risks associated with operating in these areas, and structuring financial solutions that adhere to these constraints.

Sanction Country.

Source: GAO.

My Missions

My primary role involved assisting with the financial structuring for French firms operating in sanctioned and embargoed regions. I quickly grasped the importance of meticulous risk assessment and financial modeling to ensure the success of projects in these restrictive environments. One of my significant achievements was modeling joint-venture finance in the oil and gas sector, a project that required a precise understanding of investment risks and international sanction regulations.

Required Skills and Knowledge

This internship required a combination of soft and hard skills. On the technical side, I needed strong financial modeling capabilities, an understanding of international sanctions law, and proficiency in data analysis tools. Soft skills included effective communication, especially when presenting complex financial models to the executive committee, and strong problem-solving abilities to navigate the challenges posed by operating in high-risk regions.

What I Learned

One of the most rewarding aspects of this internship was leading comprehensive due diligence processes for significant capital investments. For example, I conducted a thorough due diligence for a $300 million capital expenditure acquisition for a defense entity operating in an embargoed region. This project enhanced my data analysis skills and regulatory compliance knowledge. Presenting these models and projects to the executive committee for strategic review enriched my ability to communicate complex financial information clearly and persuasively.

Financial Concepts Related to My Internship

Three financial concepts were particularly relevant during my internship: risk assessment, financial structuring, and due diligence.

Risk Assessment

Risk assessment was crucial in evaluating the feasibility of financial projects in sanctioned regions. This involved analyzing political and economic conditions, understanding legal constraints, and forecasting potential financial impacts. My role required me to develop comprehensive risk assessment models that informed strategic decision-making.

Financial Structuring

Financial structuring involved designing financial solutions that complied with international sanctions while meeting the needs of our clients. This required a deep understanding of financial instruments and regulatory frameworks. I was responsible for creating financial models that balanced risk and return, ensuring compliance and profitability.

Due Diligence

Due diligence was a critical part of my responsibilities, involving thorough investigations into potential investments to ensure they met all regulatory and financial criteria. This process included financial analysis, risk evaluation, and legal compliance checks. My experience in conducting due diligence for large-scale acquisitions honed my analytical skills and attention to detail.

Why should I be interested in this post?

This experience can be very interesting if you want to work either in investment banking or at the Ministry of Finance or Economy. This position combines financial technicality and the importance of understanding geopolitical issues related to the strategies of major French companies.

Useful resources

SG CIB Website

About the author

The article was written in August 2024 by Mickael RUFFIN (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2023-2024) .

Guide de survie d’un stagiaire en finance de marché : Faut-il croire ChatGPT ?

July 27, 2024 by Esten CHAUVIN

Guide de survie d’un stagiaire en finance de marché : Faut-il croire ChatGPT ?

Dans cet article, Esten CHAUVIN (ESSEC Business School, Grande Ecole – Master in Management, 2023-2026) partage son expérience et ses conseils pour survivre et réussir en tant que stagiaire en finance de marché. Cet article est destiné aux étudiants qui s’apprêtent à commencer leur premier stage dans ce domaine exigeant mais passionnant.

Introduction

Un stage en finance de marché peut être intimidant, mais avec les bons outils et les bonnes astuces, vous pouvez non seulement survivre mais aussi prospérer. Voici un guide pratique pour vous aider à naviguer dans cet environnement dynamique et souvent stressant, en comparant les conseils généraux avec mon expérience réelle chez Oddo BHF.

1. Soyez ponctuel et organisé

Conseil général : La ponctualité est essentielle en finance de marché. Arrivez tôt, préparez votre journée et soyez prêt avant l’ouverture des marchés. Utilisez des outils comme des listes de tâches et des agendas pour rester organisé et gérer efficacement votre temps.

Mon expérience : Ce conseil est crucial. Arriver entre 7h30 et 8h me permettait de bien préparer ma journée avant l’ouverture des marchés à 9h. Utiliser des listes de tâches et des agendas électroniques m’a aidé à suivre les nombreuses responsabilités et à respecter les délais serrés. Mais attention, une liste de tâches interminable ne doit pas vous transformer en robot de la finance. Prenez le temps de respirer, un café à la main, tout en admirant la vue matinale sur l’A86 qui bouchonne sous la pluie.

Conseils supplémentaires :

Utilisez un carnet ou une application pour noter vos tâches quotidiennes.
Prévoyez un temps chaque matin pour organiser votre journée.
Anticipez les délais et planifiez à l’avance pour éviter les surprises de dernière minute.

2. Posez des questions et soyez curieux

Conseil général : Ne vous inquiétez pas si vous ne comprenez pas tout au début. La finance de marché est complexe et il est normal d’avoir des questions. Montrez votre intérêt et votre volonté d’apprendre en posant des questions pertinentes.

Mon expérience : Poser des questions est indispensable, mais il faut le faire de manière stratégique. J’ai appris à poser des questions après avoir fait mes propres recherches, ce qui montrait que j’étais proactif et désireux de comprendre en profondeur. Une recherche Google de 15 secondes peut souvent résoudre plus de problèmes qu’on ne le pense.

Conseils supplémentaires :

N’ayez pas peur de demander des clarifications à vos collègues ou supérieurs.
Faites des recherches supplémentaires pour approfondir votre compréhension.
Participez activement aux réunions et discussions.

3. Soyez proactif et prenez des initiatives

Conseil général : Ne vous contentez pas d’attendre que l’on vous donne des tâches. Proposez votre aide et cherchez des moyens d’apporter de la valeur à votre équipe. Votre initiative sera remarquée et appréciée.

Mon expérience : Être proactif est effectivement très apprécié. Proposer d’aider sur des projets ou d’améliorer certains processus m’a permis de me démarquer et de gagner la confiance de mon équipe. Attention cependant à ne pas vouloir tout révolutionner dès la première semaine. Commencez par de petites améliorations et gagnez petit à petit la confiance de vos collègues. Souvenez-vous, Rome ne s’est pas faite en un jour, et votre crédibilité non plus.

Conseils supplémentaires :

Identifiez les domaines où vous pouvez contribuer et proposez des solutions.
Saisissez les opportunités d’assumer de nouvelles responsabilités.
Montrez que vous êtes un membre actif et engagé de l’équipe.

4. Développez vos compétences techniques

Conseil général : En finance de marché, des compétences techniques solides sont indispensables. Familiarisez-vous avec les outils et logiciels utilisés dans votre entreprise et cherchez à améliorer continuellement vos compétences.

Mon expérience : Ce conseil est essentiel. Maîtriser Excel et d’autres outils analytiques m’a permis de gérer efficacement les tâches complexes. J’ai également appris à utiliser des plateformes de trading et des systèmes de gestion des risques spécifiques à mon entreprise. Maîtriser Excel en profondeur permet vraiment de gagner un temps fou et réussir à utiliser Excel sans toucher à votre souris vous permettra de gagner à coup sûr le respect de tous l’open space.

Conseils supplémentaires :

Maîtrisez Excel et d’autres outils analytiques couramment utilisés.
Apprenez à utiliser les plateformes de trading et les systèmes de gestion des risques.
Participez à des formations ou des webinaires pour rester à jour.

5. Soyez flexible et adaptable

Conseil général : Les marchés financiers sont imprévisibles et les priorités peuvent changer rapidement. Soyez prêt à vous adapter et à changer de cap lorsque nécessaire.

Mon expérience : La flexibilité est cruciale en finance de marché. Les situations peuvent évoluer rapidement, et il est important de rester calme et adaptable. Par exemple, lors de l’annonce de nouvelles économiques importantes, nous devions réagir rapidement pour ajuster nos stratégies. Rappelez-vous que l’imprévu fait partie du jeu et que chaque crise est aussi une opportunité de montrer votre capacité à gérer le stress avec grâce… ou du moins sans paniquer ouvertement.

Conseils supplémentaires :

Restez calme et professionnel, même en période de stress.
Adaptez-vous aux nouvelles situations et soyez prêt à apprendre de nouvelles compétences.
Maintenez une attitude positive et proactive.

6. Prenez soin de vous

Conseil général : Il est facile de se laisser submerger par le travail, mais il est important de prendre soin de votre santé physique et mentale. Faites des pauses régulières, mangez équilibré et assurez-vous de bien dormir.

Mon expérience : Ce conseil ne peut pas être sous-estimé. Travailler de longues heures peut être épuisant. J’ai trouvé qu’il était essentiel de prendre des pauses, de faire de l’exercice régulièrement et de maintenir une alimentation saine pour rester performant et éviter le burn-out. N’oubliez pas que le café et les 3 cigarettes du matin ne remplacent pas un bon petit déjeuner, et qu’une bonne nuit de sommeil vaut mieux que tous les compléments et produits énergisants possibles et imaginables.

Conseils supplémentaires :

Faites de l’exercice régulièrement pour réduire le stress.
Adoptez une alimentation saine et équilibrée.
Assurez-vous de dormir suffisamment chaque nuit.

Conclusion

Un stage en finance de marché est une expérience exigeante mais extrêmement enrichissante. En suivant ces conseils et en adoptant une attitude proactive et positive, vous maximiserez vos chances de succès et tirerez le meilleur parti de cette opportunité. Les conseils généraux peuvent vous donner une bonne base, mais adapter ces conseils à votre propre expérience et contexte est crucial pour réussir. Bonne chance !

Ressources utiles

How to Get an Internship in Finance par Handshake (2023)

HBR Guide to Finance Basics for Managers par Harvard Business Review (2012)

À propos de l’auteur

Cet article a été écrit en juillet 2024 par Esten Chauvin, étudiant en Master de Management à l’ESSEC Business School, ancien stagiaire OTC Derivatives, Stock Loans, Repo Loans chez Oddo BHF.

My experience as a junior consultant in a communications agency

July 10, 2024July 9, 2024 by Margaux DEVERGNE

My experience as a junior consultant in a communications agency

In this article, Margaux DEVERGNE (ESSEC Business School, Global BBA, 2020-2024) shares her professional experience as a trainee in Angie, a communications agency in Paris (May-August 2021).

About the company

Angie is a distinguished French communications and influence agency based in Paris, recognized for its comprehensive and innovative approach to brand communications.

Founded in 1988, Angie initially started as a press relations agency. Over the years, it has expanded its scope to provide a broad range of communications strategies and support for brands across various industries. This evolution reflects Angie’s commitment to adapting to the changing landscape of communications and influence.

Angie positions itself as a “co-influence and engagement” agency, offering an extensive array of services. These services encompass media relations, crisis management, public affairs, social media, influencer marketing, and data intelligence. Additionally, Angie excels in editorial services, including content creation, storytelling, website content, and reporting. The agency also specializes in internal communications, conducting audits, managing transformations, and producing internal magazines and newsletters. Furthermore, Angie offers expertise in corporate social responsibility (CSR) communications and business to business (B-to-B) marketing, providing content marketing, thought leadership, loyalty programs, and social selling. Their capabilities in user experience (UX) and technology, including search engine optimization (SEO) and website/app development, further enhance their service offerings.

With a team of around 60 employees (in 2020), Angie adopts an integrated approach that covers strategy, creative services, production, and execution across multiple channels (LinkedIn, Twitter, Instagram, newsletters, etc.). Angie adopts an integrated approach that covers strategy, creative services, production, and execution across multiple channels to ensure a coherent and effective campaign. This holistic methodology ensures that clients receive tailored and effective communication solutions.

Angie boasts a diverse portfolio of clients from various sectors. Well-known clients include La Poste, the French postal service, and Pôle Emploi, the French employment agency. This diverse clientele underscores Angie’s ability to cater to different industries and their unique communication needs.

As an independent communications group headquartered in Paris, Angie has expanded its capabilities by establishing subsidiaries such as Angie Edition, Angie Interactive, and 35 Mai Productions. These subsidiaries enable Angie to offer in-house content creation and production services, further solidifying its position in the market.

Although specific financial figures are not publicly available, Angie’s reputation in the French communications industry speaks volumes. The company is known for its innovative and integrated approach to brand communications and influence, establishing itself as a reputable player in the industry.

Logo of the company.
Logo of Angie
Source: Angie.

My internship

As a junior consultant trainee at Angie, I have been fully immersed in a dynamic and creative environment at the core of multidisciplinary teams. Each day, I collaborate with strategists, creatives, digital experts, and press relations officers to develop innovative 360° communication strategies for high-profile clients. My responsibilities include content curation, social media posting, weekly monitoring, newsletter writing, and performance analysis (a systematic approach used to evaluate the effectiveness and efficiency of various processes, projects, or systems within an organization). I conduct in-depth market research, analyzing online trends and conversations to uncover relevant marketing insights. Additionally, I actively contribute to the design of impactful marketing campaigns by proposing creative concepts and producing compelling editorial c (for instance newsletters, monitoring, etc…).

This internship provided me with the opportunity to develop cutting-edge expertise in the fields of influence, digital marketing, and public relations. I am gaining insights into the latest crisis management and brand communication techniques (brand messaging, visual identity, social media engagement, public relations…). Most importantly, I benefit from the personalized support of experienced consultants who generously share their expertise. Their sound advice and considerate mentoring guide me through my training at this prestigious agency. Each day presents a new opportunity to learn, grow professionally, and prepare for future challenges in this exciting sector.

My missions

As a junior consultant intern at Angie, my mission involves engaging with major business to business (B-to-B) and business to consumer (B-to-C) accounts in the luxury, lifestyle, care, and travel sectors. My responsibilities include curating high-quality content and writing tweets and LinkedIn posts for prominent companies. I am also learning to navigate and utilize the Sprinklr platform (a comprehensive customer experience management (CXM) platform designed to help businesses manage their social media presence, marketing, advertising, research, and customer service across various digital channels) effectively. Additionally, I am strengthening my skills in using X (Twitter), LinkedIn, and Canva to enhance digital communication strategies for our clients. This role allows me to contribute to the development of impactful social media content while gaining valuable experience in digital marketing and client engagement.

Required skills and knowledge

In my dynamic role as a Junior Consultant at Angie, I quickly realized the extensive range of responsibilities and the continuously evolving skill set required. Central to my role was mastering the art of communication, both written and oral. Whether crafting newsletters, coordinating with media personnel, or pitching new ideas, my goal was always to achieve clarity and resonance with the audience. It was crucial to adapt my tone and style to fit the specific audience and occasion. For example, my main clients were Orpea (a nursing home organisation) and Accor (the hotel group). Their presence on social networks is not at all the same, and neither is the target audience. For Orpea, I had to speak in such a way that families potentially interested in the services offered by Orpea could understand and appreciate the messages transmitted through the posts. On the other hand, the Accord group gave us a lot more flexibility when it came to the visual identity of the posts on social networks, because the target audience is generally young, dynamic and travel-loving.

Effective communication was not just about creating the message; it also involved measuring its impact. Here, data analytics became an invaluable tool. Metrics such as engagement rates and conversion rates provided insights into the effectiveness of our campaigns and identified areas for improvement. As the digital landscape expanded, I deepened my proficiency with tools like Sprinklr to enhance the companies’ visibility in the vast online environment.

A critical aspect of my role was crisis management. While not every day presented challenges, being prepared for them was essential. Specialized workshops in crisis communication equipped me with the knowledge and strategies to handle issues effectively, ensuring the companies’ reputations remained intact. Crisis communication is a critical aspect of public relations and organizational management that involves the strategies and practices used to manage the dissemination of information during a crisis. Effective crisis communication aims to protect and maintain an organization’s reputation, mitigate the impact of the crisis, and ensure transparent and accurate information flow to stakeholders. Key elements of crisis communication include preparedness, rapid response, consistent messaging, and empathy. By having a well-defined crisis communication plan, organizations can navigate crises more effectively, minimizing potential damage and maintaining public trust.

Understanding the essence of the concerned brands enabled me to create cohesive narratives across all communication platforms, fostering consistency and a deeper connection with the audience. The communications field is vast, with each project having its own timelines and nuances. Efficiently organizing, prioritizing, and monitoring tasks became second nature, facilitated by tools and platforms that ensured timely delivery and kept stakeholders informed.

Visual storytelling, a key component of modern communication, often involved close collaboration with graphic designers. A foundational understanding of design tools ensured that our visual campaigns aligned seamlessly with our narratives. Regular participation in industry events kept me connected and informed about the latest trends.

This journey was more than just a job; it was a continuous learning experience, keeping me up to date with best practices and evolving trends in corporate communication.

What I learned

As a junior consultant intern at Angie, a leading French communications agency, I gained invaluable hands-on experience and insights into the dynamic world of integrated marketing communications.

Strategic Planning and Execution:

I had the opportunity to participate in developing comprehensive communication strategies for high-profile clients across various industries. This involved conducting market research, analyzing consumer trends and online conversations, and translating insights into actionable plans. I learned how to craft compelling narratives, position brands effectively, and execute multi-channel campaigns seamlessly.

Content Creation and Storytelling:

Content is at the heart of modern marketing, and at Angie, I honed my skills in creating engaging content tailored for different platforms and audiences. From crafting compelling social media posts and website copy to developing thought leadership articles and multimedia assets, I learned the art of storytelling and how to captivate audiences through creative and informative content.

Digital Marketing and Analytics:

Angie’s expertise in digital marketing allowed me to gain hands-on experience with various tools and techniques. I learned about search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, and influencer collaborations. Additionally, I developed skills in data analysis, interpreting metrics, and using insights to optimize campaigns for better performance.

Media Relations and Crisis Management:

As an integrated communications agency, Angie handles media relations and crisis management for its clients. I had the chance to observe and assist in developing press releases, organizing media events, and managing crisis situations. This experience taught me the importance of effective communication, reputation management, and maintaining a positive brand image.

Collaboration and Teamwork:

Working alongside experienced strategists, creatives, digital experts, and public relations professionals, I witnessed the power of collaboration and teamwork. I learned how to contribute effectively in a cross-functional environment, communicate ideas clearly, and leverage the diverse expertise of team members to deliver exceptional results for clients.

Overall, my internship at Angie provided me with a comprehensive understanding of the communications industry, from strategy development to execution across multiple channels. The practical experience, mentorship, and exposure to real-world projects have equipped me with valuable skills and a solid foundation for a successful career in this dynamic field.

Financial concepts related my internship

Budgeting and Cost Management

One of the critical aspects of executing successful marketing campaigns is effective budgeting and cost management. During my internship, I learned how to develop comprehensive campaign budgets, allocating resources across different channels and activities, such as content creation, media placements, influencer collaborations, and event management.

I worked closely with project managers and account executives to ensure that campaigns were delivered within the allocated budgets, while maximizing the return on investment (ROI) for clients. This involved analyzing cost estimates, negotiating with vendors, and identifying opportunities for cost optimization without compromising the campaign’s effectiveness.

Return on Marketing Investment (ROMI)

In the world of marketing and communications, it is essential to measure the effectiveness of campaigns and demonstrate their impact on business objectives. At Angie, I gained exposure to various metrics and analytical tools used to calculate the return on marketing investment (ROMI).

This concept involves evaluating the revenue generated or other business outcomes achieved because of a marketing campaign and comparing it to the total investment made in that campaign. By analyzing ROMI, clients can assess the profitability and overall success of their marketing efforts, enabling data-driven decision-making for future campaigns. During my internship, I assisted in collecting and analyzing data related to campaign performance, such as website traffic, lead generation, sales conversions, and brand awareness metrics. This data was then used to calculate ROMI and provide insights to clients on the effectiveness of their marketing strategies.

Client Profitability Analysis

As a consulting agency, Angie’s success is closely tied to the profitability of its client engagements. During my internship, I learned about the importance of client profitability analysis, which involves evaluating the revenue generated from each client against the costs associated with servicing that client.

This analysis considers various factors, such as billable hours, resource allocation, project complexity, and overhead costs. By understanding the profitability of each client relationship, the agency can make informed decisions about pricing strategies, resource allocation, and client portfolio management.

I had the opportunity to assist in compiling data and conducting profitability analyses for various client accounts. This involved tracking project expenses, monitoring resource utilization, and identifying areas for efficiency improvements or potential scope creep that could impact profitability.

By understanding these financial concepts and their application in the communications industry, I gained valuable insights into the business aspects of marketing and communications campaigns. This knowledge will be invaluable as I continue to pursue a career in this dynamic field, enabling me to contribute to the financial success of future client engagements and agency operations.

Why should I be interested in this post?

If the world of communication within the largest French companies interests you, this post is for you! Through this experience, I realized that a significant amount of work is outsourced to specialists in the field. Combining communication, marketing, and finance primarily revolves around budget allocation and return on investment (ROI). Marketing teams must justify their expenditures by demonstrating the financial impact of their campaigns on sales, market share, or brand valuation. Calculating marketing ROI allows for assessing the profitability of investments and optimizing budget allocation.

Useful resources

Angie website

Berlo, D. K. (1960). The Process of Communication: An Introduction to Theory and Practice. New York: Holt, Rinehart and Winston.

Entreprise et medias (l’Association des Directeurs et Directrices de la Communication).

Coombs, W. T. (2015). Ongoing Crisis Communication: Planning, Managing, and Responding (4th ed.). Thousand Oaks, CA: SAGE Publications.

About the author

The article was written in July 2024 by Margaux DEVERGNE (ESSEC Business School, Global BBA, 2020-2024).

My experience as an apprentice student in internal audit at Atos SE, during the split of the company

July 9, 2024 by Margaux DEVERGNE

My experience as an apprentice student in internal audit at Atos SE, during the split of the company

In this article, Margaux DEVERGNE (ESSEC Business School, Global BBA, 2020-2024) shares her professional experience as a part-time student in internal audit at Atos SE, from September 2022 to December 2024.

About the company

Atos SE is a global leader in digital transformation with a rich history dating back to its founding in 1997. The company emerged from a series of mergers and acquisitions, including the merger of Axime and Sligos, which formed Atos Origin. Over the years, Atos has continued to expand its footprint through strategic acquisitions, such as the purchase of Siemens IT Solutions and Services in 2011 and the more recent acquisition of Syntel in 2018. These moves have positioned Atos as a key player in the IT services and consulting market.

Atos offers a diverse portfolio of products and services, including cloud computing, cybersecurity, high-performance computing, and digital workplace solutions. The company is also known for its contributions to the fields of big data and artificial intelligence. Atos serves a wide range of industries, including healthcare, financial services, manufacturing, and public sector organizations, providing tailored solutions to meet the specific needs of its clients.

In terms of financial performance, Atos has demonstrated steady growth. For the fiscal year 2023, Atos reported revenues of approximately €11 billion. The company’s digital, cloud, and cybersecurity services have been key drivers of this revenue. Despite facing challenges in some segments, Atos has continued to invest in innovation and expand its service offerings to capture new market opportunities.

Atos’ share price has experienced fluctuations over the years, reflecting broader market trends and company-specific developments. As of mid-2024, the share price is under pressure due to restructuring efforts and market conditions, trading around €6 per share. The company is actively working on strategic initiatives to streamline operations and enhance profitability, which could positively impact its stock performance in the future.

After a long battle with Czech billionaire Daniel Kretinsky, David Layani, founder of IT company OnePoint, has finally won the battle to take over Atos SE. The Atos Board of Directors chose Layani’s offer, supported by some of the creditors, which provides for €2.9 billion of existing Atos debt to be converted into equity, making the creditors the main shareholders with around 79% of the capital. Onepoint, Butler and Econocom will inject €175 million to take a 21% stake, while €1.5 billion of new debt will be made available to relaunch Atos’ activities. This major financial restructuring will enable Atos to get back on track after months of difficulties.

Overall, Atos SE stands out as a significant player in the global IT services market, with a strong focus on digital transformation, cloud, and cybersecurity solutions. The company’s commitment to innovation and strategic growth positions it well for future opportunities, despite current challenges.

Logo of the company.
Logo of Atos SE
Source: The company.

My Apprenticeship

Internal Audit at Atos SE plays a crucial role in continuous process improvement and risk management. This independent and objective service aims to assess and improve the effectiveness of the company’s operations, internal controls and governance. Internal auditors examine financial, operational and IT systems to ensure compliance with applicable standards and regulations. By identifying weaknesses and proposing constructive recommendations, internal audit helps to strengthen the company’s overall performance and ensure the reliability and transparency of financial reporting.

My missions

Within the Internal Audit Group, in an international and evolving context, the missions of the student in Internal Audit are based on 3 axes under the supervision of the Group’s internal control manager:

Participate in activities to strengthen internal control for all the Group’s support functions and operations, i.e.
Participate in the strategic risk management process of the company
Preparation (risk mapping) and participation in risk assessment workshops within the management committee of the geographical units.
Consolidation of results.
Assist in the deployment and strengthening of the internal control system, through initiatives such as:
Maintenance and improvement of the control framework
Participation in the Control Testing campaign to assess the maturity of internal control throughout the Group.

Required skills and knowledge

I work in a very international team, whose members were based in France, Portugal, Sweden and India. In terms of soft skills, the interpersonal aspect is crucial, because in auditing we must work with a huge number of departments to obtain the information we’re looking for. In addition, as part of a very international team, the working language is English, not French, which also requires an open mind due to the mix of different cultures. Good communication skills are essential, as is attention to detail and adaptability.

In terms of hard skills, you need to have a good command of Excel, the principles of Environmental, Social, Governance (ESG), the fundamentals of internal control, risk management and audit tools, which are specific to each company.

During my apprenticeship, I started to learn how PowerBI works (it’s a suite of data analysis and visualization tools developed by Microsoft. It enables users to connect, transform, visualize and share data interactively), which is also one of the most widely used tools for analyzing the progress of audits in real time.

What I learned

Internal audit has given me an in-depth understanding of organizational dynamics and internal control mechanisms. By systematically assessing operational processes, I have developed my knowledge of how to identify inefficiencies and risks inherent in the company’s activities. I have also strengthened my communication skills, learning to clearly articulate the conclusions and recommendations of audits to stakeholders. Exposure to various audit techniques, such as data analysis and tests of control, has enabled me to acquire analytical rigor and problem-solving skills. This experience has also improved my adaptability, enabling me to adjust effectively to the specific requirements of each assignment. Finally, an in-depth knowledge of professional standards and regulations has been essential in ensuring operational compliance and promoting a culture of continuous improvement within the organization.

Financial concepts related to my apprenticeship

Internal Controls

Internal controls are the policies, procedures, and mechanisms put in place by an organization to ensure the integrity of financial reporting, operational effectiveness, and compliance with applicable laws and regulations. As an internal audit intern at Atos SE, one of my primary responsibilities is to evaluate the design and operational effectiveness of the company’s internal control framework across various business processes and functions.

By assessing internal controls, I would help identify potential weaknesses or deficiencies that could expose the company to risks such as financial misstatements, fraud, or operational inefficiencies. This evaluation would involve testing key controls, reviewing documentation, and conducting interviews with process owners to understand the control environment.

Risk Assessment

Risk assessment is a critical component of internal auditing, as it helps identify and prioritize the areas that pose the greatest risks to the organization. At Atos SE, I’m involved in the risk assessment process, which typically involves:

Understanding the company’s risk universe and the potential impact of various risks on its operations and financial performance.
Analyzing risk factors such as changes in the regulatory environment, technological advancements, cybersecurity threats, and market conditions.
Evaluating the adequacy of existing risk management strategies and controls.
Providing recommendations for enhancing risk management practices and mitigating identified risks.

By conducting risk assessments, it contributes to the development of an effective risk-based internal audit plan, ensuring that audit resources are allocated to the areas of highest risk.

Compliance

Compliance with applicable laws, regulations, and internal policies is a crucial aspect of corporate governance and risk management. In the internal audit team, we are responsible for assessing the company’s compliance with various regulatory requirements, such as data privacy laws (e.g., GDPR), anti-corruption laws, and industry-specific regulations.

This involves reviewing the company’s compliance policies and procedures, testing the effectiveness of compliance controls, and identifying potential areas of non-compliance. Auditors are also expected to provide recommendations for strengthening the compliance program and addressing any identified deficiencies.

By ensuring compliance, the audit team help Atos SE mitigate legal and reputational risks, avoid potential fines and penalties, and maintain a strong ethical culture within the organization.

Why should I be interested in this post?

If you are currently employed at one of the Big Four accounting firms and are considering a transition to internal audit, a concise summary of my experience as a work-study student at a company specializing in cybersecurity may offer you a valuable perspective.

The primary objective of this post is to provide a clearer understanding of internal auditing from the standpoint of a work-study student who began with no prior knowledge of the field.

For those with an interest in finance, engaging in this sector through internal audit can serve as an excellent introduction. It can also pave the way for future opportunities in consultancy firms or act as a steppingstone towards roles that demand a higher level of precision, whether in internal or external audit.

Useful resources

Atos SE website

Atos SE career website

The Institue of Internal Auditors

Institut Français de l’Audit et du Contrôle Interne

Certified Internal Auditor certification

About the author

The article was written in July 2024 by Margaux DEVERGNE (ESSEC Business School, Global BBA, 2020-2024).

My Intern Experience in Tencent Strategy Department

June 22, 2024 by Liner SHI

My Intern Experience in Tencent Strategy Department

In this article, Liner SHI (ESSEC Business School, Global Bachelor of Business Administration (GBBA) – Exchange Student, 2024-2025) shares her professional experience as an intern in Tencent Strategy Department.

About the company

Tencent is a leading technology company founded in 1998 with its headquarters located in Shenzhen, China. Tencent Group engages in a wide range of activities, offering both B2C and B2B services.

B2C: Tencent has released numerous globally popular video games and other high-quality digital content, providing rich interactive entertainment experiences for over 1 billion users worldwide by 2023.Here are specific B2C services that Tencent offers : famous games like Honor of Kings and Arena of Valor, popular social media apps like Wechat and QQ, other apps like QQ Music . Tencent has a wide user base in Asia, North America, and Europe.
B2B: Tencent offers a range of enterprise services including cloud computing, advertising, and financial technology, supporting partners in achieving digital transformation and facilitating business development.

Tencent has been listed on the Stock Exchange of Hong Kong since 2004. Tencent’s revenue in 2023 was $83.97 billion, representing a 10% increase compared to the previous year.

Logo of Tencent.

Source: Tencent.

Introduction to WeCom Business

WeCom, also known as WeChat Work, is an enterprise communication and office collaboration tool developed by Tencent. Tencent created WeCom to provide businesses with a platform that integrates seamlessly with WeChat, allowing for efficient internal communication, project management, and customer engagement.

Logo of WeCom.

Source: KRDS.

Currently, WeCom primarily features are:

Support for various communication methods between enterprises and customers, such as messaging, group chat, announcements, and short videos.
Collaboration tools and lightweight internal management solutions including online documents, enterprise cloud storage, calendar management, and attendance approval.
Lightweight customer management and upstream/downstream collaboration tools including personal profiles, mass messaging, customer moments, lead tracking, upstream/downstream contact lists, and application sharing.

My internship

I collaborated with my mentor on the 2023 China SaaS (Software as a Service) Dynamics Report. This report covered policy interpretations, listings and financing updates, AI(Artificial Intelligence) integration, and overseas expansion.Initially, I wasn’t clear about the relationship between WeCom and other domestic SaaS companies, which led to a lack of focus in my first report. After discussing with my mentor, I realized our research had two main goals: to provide market insights for WeCom’s development and to find suitable ecosystem partners. With this clarity, my analysis improved significantly. This taught me the importance of aligning business objectives with strategic research. Also in the process, I collected data from various platforms like Easy Disclosure and Wind Consulting and realized the significance of comparing information across channels.

Also, I participated in interviews and summarized customer retention issues WeCom faced after commercialization.In 2023, WeCom began charging customers for using its platform for the first time. Some customers may churn or reduce their demand for Wecom due to charges. Therefore, it is crucial to collect the attitudes of key customers towards the pricing model of WeCom. My responsibility was to organize and analyze the interview results, identify the most valued commercial needs and pain points of customers.

I summarized the research on major comparable companies (such as Lark and DingTalk) My mentor focused on their strategies regarding revenue, organizational dynamics, target markets, and business expansion. This experience honed my skills in concise summarization and provided valuable insights.

Financial concepts related my internship

There are three key concepts related to my work in WeCom. Since WeCom is a collaborative office and customer management application, there are key metrics of SaaS companies that we should pay attention to. These metrics include Net Promoter Score (NPS), Annual Recurring Revenue (ARR), and Automatic Delivery Rate (ADR).

Net Promoter Score (NPS)

NPS measures customer satisfaction and loyalty by asking about the likelihood of recommending a product or service. In SaaS companies, NPS is crucial because they often operate on a subscription model. A high NPS indicates that customers are likely to continue using and renewing services. NPS reflects the appeal of SaaS products for sustained customer use. We also track customer retention rate and contract renewal rate.

Annual Recurring Revenue (ARR)

ARR is the total revenue generated from subscription services within a year. It is a key metric for SaaS companies to measure subscription income, calculated by summing up subscription fees from each customer.

Automatic Delivery Rate (ADR)

The automatic delivery rate reflects the level of automation in services or products provided by SaaS companies. High automatic delivery rates enable SaaS companies to offer more convenient, efficient, and stable services, reducing customer using costs and risks. It’s an important metric for measuring operational efficiency and service quality in SaaS companies.

Why should I be interested in this post?

This article offers an opportunity to delve deeper into the intricacies of Tencent’s WeCom business and analogous SaaS products, providing a comprehensive understanding of their operational frameworks. Plus, I hope that by sharing my own experience, you’ll get a better feel for what it’s like to work as a strategic intern and what you should focus on in the role.

Useful resources

Tencent 2023 Annual Report

Tencent 2023 fourth quarter and annual results presentation

About the author

The article was written in June 2024 by Liner SHI (ESSEC Business School, Global Bachelor of Business Administration (GBBA) – Exchange Student, 2024-2025).

My experience as a Quantitative Investment Intern in Fortune Sg Fund Management

December 22, 2024May 29, 2024 by Ziqian ZONG

My experience as a Quantitative Investment Intern in Fortune Sg Fund Management

In this article, Ziqian ZONG (ESSEC Business School, Global BBA exchange, 2024) shares her professional experience as a Quantitative Investment Intern in Fortune Sg Fund Management.

About the company

Fortune Sg Fund Management is a leading mutual fund management company with over 300 billion RMB in assets under management as of 2023. The company was founded in 2003 as a joint venture between Baosteel Group and Société Générale and has since grown to become a significant player in the Chinese market.

Fortune Sg leverages the capital markets to provide comprehensive asset management solutions for a wide range of domestic and international investors through professional operations. The company upholds the principle of prioritizing client interests, striving to be a responsible and trustworthy firm worthy of long-term commitment from all parties involved.

Logo of Fortune Sg

Source: Fortune Sg.

My internship

I joined the Quantitative Investment Department as an intern. This department primarily employs a multi-factor approach to select high-quality stocks in the Chinese stock market. The main products offered by this department are fundamental quantitative fund and quantitative hedging fund.

My missions

During my internship, I assisted the team with various programming and data analysis tasks. Furthermore, I undertook independent research project, including tracking the latest global trends in active quantitative funds and factor models, as well as developing a factor rotation-based index enhancement strategy.

Required skills and knowledge

The role requires advanced programming skills, primarily using Python and SQL. Proficiency in these languages is essential for improving work efficiency. Additionally, due to the rapid development of quantitative finance, it is necessary to read the literature to stay updated on the latest trends and investment methods. Sometimes, programming and searching for effective alpha (the excess return on an investment relative to the return of a benchmark index) can be tedious tasks that require persistent patience and confidence.

What I learned

During my internship, I gained extensive knowledge about factor investing and practical investment strategies. The integration of fundamental analysis with quantitative investment methods significantly enhanced the efficiency of traditional research. My research on factor timing allowed me to combine macroeconomic factors with market style shifts, using data to generate insights.

Financial concepts related my internship

Factor Investing

Factor investing is an investment strategy that utilizes certain quantifiable characteristics or attributes, known as “factors,” to explain and predict the risk and return performance of assets. These factors help investors better understand the behavior of the market and individual assets, leading to the construction of more effective investment portfolios.

The basic principle of factor investing is that certain factors have historically demonstrated a strong ability to explain and predict asset returns. By identifying and exploiting these factors, investors can achieve excess returns (known as “alpha”).

Common factors include:

Value Factor: Selecting stocks with low valuations, such as low price-to-earnings (P/E) or price-to-book (P/B) ratios.
Momentum Factor: Selecting stocks that have recently exhibited strong performance, under the assumption that this performance will continue.
Size Factor : Selecting small-cap stocks, which historically have outperformed large-cap stocks.
Quality Factor: Selecting stocks with strong financial health and high profitability.
Minimum Volatility Factor: Selecting stocks with lower volatility, which tend to perform better during periods of market uncertainty.
Growth Factor: Selecting stocks with high growth potential, such as companies with rapidly growing revenues and earnings.

Factor timing

Factor timing is an investment strategy that involves adjusting the exposure to different factors in a portfolio based on changing market conditions and macroeconomic cycles. The idea is to dynamically allocate capital to factors that are expected to perform well in the current or upcoming economic environment while reducing exposure to factors that are likely to underperform.

Here is how I do factor timing:

Economic and Market Analysis: Investors analyze macroeconomic indicators, market trends, and other relevant data to understand the current and projected state of the economy. This analysis helps in identifying which factors are likely to perform well in different economic conditions.
Factor Selection and Weighting: Based on the economic and market analysis, select which factors to emphasize in their portfolio. During Economic Expansion: Momentum and growth factors perform well because companies with strong recent performance and high growth potential are likely to continue thriving. During Economic Contraction: Quality and low volatility factors may be favored because companies with strong financial health and stable earnings are more resilient in downturns.
Dynamic Adjustment: Continually monitor economic indicators and market conditions to adjust the portfolio’s factor exposures.

Why should I be interested in this post?

With the advancement of computer technology and the increase in alternative data, quantitative finance is occupying an increasingly larger share in investments. Understanding related content can provide valuable advantages and aid in making informed decisions when purchasing quantitative-related products.

Useful resources

Fortune SG fund management

The most classic factor model: Fama French factor model

About the author

The article was written in May 2024 by Ziqian ZONG (ESSEC Business School, Global BBA exchange, 2024).

My Professional Experience as a Quantitative Analyst Intern at Findoc Financial Services

December 4, 2024May 24, 2024 by Praduman Agrawal

My Professional Experience as a Quantitative Analyst Intern at Findoc Financial Services

In this article, Praduman AGRAWAL (ESSEC Business School, Visiting Scholar, Summer 2024) shares his professional experience as a Quantitative Analyst Intern at Findoc Financial Services.

About the Company

Findoc Group offers both institutional and retail clients quality products and services that cover equity trading, derivative trading, commodity trading, currency trading, IPOs, and mutual fund investments. Findoc Group also offers depository services through NSDL to create a seamless transaction platform. Trades executed through the Findoc Group companies are settled through the Findoc Group Depository Participant. Findoc Group is also involved in business through Findoc Finvest Private Limited (NBFC) for activities such as loan against shares, loan against property, and loan against gold, among other loan services.

Findoc team focuses on providing long-term value addition to its clients while maintaining the highest standards of excellence and professionalism. With a vision to earn a name that represents trust, growth, and passion, Findoc Group practices transparent business operations and prioritizes client satisfaction. Their professional approach emphasizes long-term relationships with clients, constantly generating value-added features without passing the cost burden to the clients.

Logo of the company.
Logo of Findoc Financial Services
Source: Findoc Financial Services

About the Department

At Findoc Financial Services, I was part of the Quantitative Analysis department, specifically within the quantitative desk. Our team was dedicated to developing and implementing trading strategies focused on the Forex pair. My role involved designing a portfolio of trading strategies for USDINR aimed at reducing unsystematic risk through diversification. Using Easy Language on TradeStation, I coded these strategies incorporating a range of indicators such as Bollinger Bands, MACD, VWAP, and RSI, which I customized to fit our specific needs. In addition to the technical aspects, my work also delved into economic analysis and trading psychology, ensuring a comprehensive approach to strategy development. Utilizing 20 years of historical data, I meticulously conducted backtesting and forward testing, rigorously evaluating the effectiveness of our strategies and refining them for optimal performance.

My Internship

During my internship at Findoc Financial Services, I was entrusted with the development and implementation of trading strategies for the Forex market, specifically focusing on the USDINR currency pair. My primary responsibilities included coding trading strategies using Easy Language on TradeStation, backtesting these strategies using historical data, and performing forward testing to validate their effectiveness in real-time market conditions.

My Missions

My main mission was to develop a diversified portfolio of trading strategies aimed at reducing non-systematic risk. This involved extensive coding, data analysis, and testing to ensure the strategies were robust and effective. I also conducted economic analysis and considered trading psychology to enhance the strategies further.

Required Skills and Knowledge

During my internship, I honed a blend of soft and hard skills essential for success in quantitative analysis and trading strategy development. Effective communication was crucial for collaboration and presenting findings to stakeholders. Critical thinking and problem-solving skills were indispensable when encountering challenges in data analysis or strategy development. Adaptability was key as market conditions and requirements often changed, requiring flexibility in approach and strategy. Attention to detail was essential for ensuring accuracy in data analysis and coding of trading algorithms.

On the hard skills front, proficiency in programming languages such as Easy Language for TradeStation was fundamental for coding and testing trading strategies. A strong understanding of statistical methods and financial mathematics was necessary for designing robust strategies and interpreting results accurately. Expertise in data analysis tools and techniques facilitated thorough backtesting and forward testing of strategies. Additionally, a deep understanding of financial markets, including factors influencing currency movements, was essential for developing effective trading strategies.

What I Learned

Throughout my internship, I gained a deeper understanding of trading strategies and the technical and economic factors influencing currency markets. I learned the importance of rigorous testing and validation of strategies to ensure their effectiveness in real-time trading. Additionally, I developed valuable skills in programming, data analysis, and financial market analysis, which are crucial for a career in quantitative finance.

Financial Concepts Related to My Internship

Diversification

Diversification is the practice of spreading investments across different assets to reduce risk. In my role, I developed a portfolio of trading strategies for the USDINR currency pair. Each strategy had its unique approach and risk profile. By employing multiple strategies simultaneously, we aimed to diversify the risk associated with any single strategy. This concept directly links to my job as I focused on building a diversified portfolio of trading strategies to mitigate unsystematic risk.

Technical Indicators

Technical indicators are mathematical calculations based on historical price, volume, or open interest data. These indicators are used by traders to predict future price movements. In my role, I utilized various technical indicators such as Bollinger Bands, MACD, VWAP, and RSI to develop trading strategies for the USDINR pair. These indicators provided insights into market trends, momentum, volatility, and overbought/oversold conditions, which informed our trading decisions. Understanding and effectively using these indicators was crucial for building successful trading strategies.

Backtesting and Forward Testing

Backtesting involves testing a trading strategy using historical data to assess its performance. Forward testing, on the other hand, involves testing the strategy in real-time with live market data. In my role, I conducted both backtesting and forward testing of the trading strategies I developed. By analyzing past market data spanning 20 years, I assessed how well the strategies would have performed historically. Forward testing then allowed me to validate the strategies in real-time market conditions before implementation. The ability to conduct rigorous backtesting and forward testing was essential for evaluating the viability and effectiveness of our trading strategies.

Why Should I Be Interested in This Post?

If you love mathematics and finance, then a role as a Quantitative Analyst is a great fit for you. It broadens your horizon by offering different perspectives on financial markets. You will learn how small events can lead to significant changes in stock prices and how gap-up and gap-down movements can impact trading strategies. You will also gain skills in coding strategies (Algo-trading) that can be applied in various areas.

Useful Resources

Findoc Group

AlgoTrading with Kavin Davey

About the Author

The article was written in May 2024 by Praduman AGRAWAL (ESSEC Business School, Visiting Scholar, Summer 2024).

My professional experience as an Institutional Sales Assistant with Lazard Frères Gestion

May 11, 2024 by David-Alexandre BLUM

My professional experience as an Institutional Sales Assistant with Lazard Frères Gestion

In this article, David-Alexandre BLUM (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2019-2023) shares his professional experience as an Institutional Sales Assistant with Lazard Frères Gestion.

About the company

In 1848, Alexandre, Lazare and Simon Lazard, three French brothers from the Alsace region, founded Lazard Frères & Co in New Orleans as a dry goods merchant, having emigrated to the United States in the early 1840s.

Today, Lazard serves investors worldwide with a broad range of global investment solutions and asset management services. Lazard Asset Management operates in 19 countries across North America, Europe and Asia, as well as in Australia. The group focuses on strategies based on rigorous and detailed analysis and dynamic asset management.

Lazard Frères Gestion combines the power of a large global organization with the flexibility of a small entrepreneurial firm and focuses on asset management and advisory services for individual and institutional clients.

With offices in Paris, Lyon, Bordeaux, Nantes, Brussels and Luxembourg, Lazard Frères Gestion manages €30 billion of assets on behalf of institutional and retail clients.

Lazard Frères Gestion Logo
Logo of Lazard Frères Gestion
Source: Lazard Frères Gestion

The department I joined at Lazard Frères Gestion is the Distribution France sales department. The team handles customer relations and organizes meetings to sell and inform about the company’s funds. The department works closely with the management and marketing teams. Financial analysis and company knowledge are at the heart of Lazard Frères Gestion’s management processes. The model is characterized by an “analyst-manager” approach: the entire team is involved in investment decisions, and each analyst-manager can contribute his or her own valuation and market expertise. In addition, all institutional management is based on the same macroeconomic scenario. Lazard Frères Gestion’s investment philosophy is based on both business cycle analysis and company valuation.

My internship

As an institutional sales assistant, I worked as part of the Distribution France sales team and was in constant contact with customers. Therefore, I took part in all our management committees, videoconferences and events. I worked with management, client servicing, reporting, risk control, legal and middle office.

My missions

Follow the sales activity of the Distribution team (multi-managers, private banks, insurance networks and independent asset managers)
Participate in specific responses to client requests
Help prepare client meetings
Prepare quarterly (or more frequent) management reports on flagship funds for clients
Summarize videoconferences organized on flagship funds and equity, fixed income, convertible and diversified fund management committees
Follow the performance of flagship funds and defined peer groups
Send specific documents from our tools (performance attribution, inventories, allocations, specific performance comments and fund positioning).

Required skills and knowledge

Firstly, the position I held required a broad knowledge of all asset classes. Lazard Frères Gestion offers a wide range of investment solutions: equities, bonds, mutual funds, structured products… It is therefore essential to know all the relevant vocabulary and the specific features of all the asset classes. I needed to know the different financial indicators and ratios in order to understand the different financial analyses carried out by the analyst teams.

Thoroughness and efficiency were the qualities that my superiors expected most of me. There was no room for error, even in an emergency, and in a sales department the unexpected was commonplace. When writing memos on funds intended for clients, it was essential to transpose the managers’ analysis correctly. It was also my responsibility to respond to clients as quickly and accurately as possible.

During this internship, I required to master some essential skills in order to be successful such as rigor, adaptability or efficiency. Adaptability was key as my role was cross-functional. I was in contact with most of the departments at Lazard Frères Gestion. I worked on projects with marketing in conjunction with the management teams, or I had to provide answers thanks to the reporting departments, which sent me the data I needed to make my calculations in response to clients.

What I learned

This experience was a real springboard for learning about the finance profession. I had the opportunity to apply the theoretical aspects to real projects and to work on various subjects under the guidance of experienced professionals. I also had the opportunity to perfect my knowledge of the financial market environment through daily contact with the Management, Reporting, Risk, Legal and Marketing teams. In particular, I improved my knowledge of asset management, understanding of macroeconomics and financial analysis.

In particular, I was able to learn a lot about the different asset classes, thanks to the discussions I had with professionals and the various presentations I attended. Additionally, I was able to follow a number of fund sales and look after a variety of clients. I worked on various client presentations and financial documents such as reports and prospectuses.

Financial concepts related to my internship

Sale of financial products

I learnt a lot about commercial sales techniques. It is important to know what elements to emphasize when prospecting or selling financial products, especially when dealing with professional and highly technical clients.

I was able to familiarize myself with macro-economic and financial indicators that helped me understand certain economic scenarios and management decisions.

I therefore carefully analyzed the financial markets and improved my understanding of the different types of financial markets, such as the stock, bond, foreign exchange (Forex) and derivatives markets.

Through various client meetings, I was able to familiarize and educate myself on the different financial products. I dealt with a variety of financial products, such as equities, bonds, currencies, derivatives (options, futures, swaps) and mutual funds.

Fixed income management

Before this internship, I was much more comfortable with equities than bonds. However, the various committees, training sessions and discussions I’ve had have taught me a lot about bond management. In particular, I was able to follow how the management teams manipulated the funds’ modified duration to take advantage of unprecedented market conditions following the crises at the US regional banks and Crédit Suisse.

I was also able to follow the launch of a bond fund and understand the entire portfolio construction process by following the strategy implemented by the management teams.

Macro-economics

During my internship I was able to acquire knowledge in macroeconomics by studying economic indicators, monetary and fiscal policies, international trade, business cycles, exchange rates, the relationship between financial markets and the economy, and sovereign debt. These skills enable me to better understand the global economic environment, assess investment opportunities and risks, and contribute to investment decision-making. At Lazard, a team of macro-economists gives analyses and predicts a scenario for the coming months, which are taken into account by all the managers in different proportions in order to respect the management process and the objective of their funds. It is therefore essential for the distribution team to know and master this scenario in order to explain the performance and strategies implemented.

Why should I be interested in this post?

If you are looking for a formative experience in finance with responsibilities and challenges combining financial expertise and sales, this internship is for you. You will be working on a wide range of assets and investment universes. Lazard Frères Gestion will require you to be rigorous and hard-working, but you’ll learn a lot about asset management.

Useful resources

Lazard Frères Gestion

Lazard Frères Gestion Les métiers de la gestion d’actifs (webinaire)

Lazard Frères Gestion Qu’est-ce que la gestion d’actifs ?

Lazard Frères Gestion Quelle allocation d’actifs pour un portefeuille diversifié ?

Hull J. and P. Roger (2017) Options futures et autres actifs dérivés Pearson Education.

About the author

The article was written in May 2024 by David-Alexandre BLUM (ESSEC Business School, Global Bachelor in Business Administration, 2019-2023).

My Experience as an Investment Intern at Eurazeo

April 6, 2024 by Dante MARRAMIERO

My Experience as an Investment Intern at Eurazeo

In this article, Dante MARRAMIERO (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2020-2023) presents its professional experience in Euazeo, a European leading Private Equity based in Paris.

About Eurazeo

Eurazeo stands as a prominent European firm within the world of alternative investments, boasting a diversified portfolio within various investment strategies, including private debt, real Estate, venture, growth, small-mid buyout, and mid-large buyouts. Eurazeo was initially the family office of the Lazard Freres family, but in 2018 decided to merge with Idinvest in order to start fundraising capital from third parties. Following 2018, Eurazeo’s strategy has always been to reduce the balance sheet investments and to increase the third-party capital investments.

Logo of the company.
Logo of Eurazeo
Source: the company.

Internship Overview

During my time as an Investment Intern at Eurazeo from January 2023 to June 2023, I had the privilege to immerse myself in the intricacies of private equity and alternative investments. My internship included a range of responsibilities aimed at supporting Eurazeo’s investment initiatives. My department was “Direct Transactions” and during my internship, I participated actively in three different activities:

Syndication of Co-Investment Opportunities

I actively participated in the syndication process of four co-investment opportunities across various investment strategies including private debt, growth, and mid-large buyout. This involved conducting comprehensive due diligence, financial analysis, and market research to assess the viability and potential returns of each opportunity. Together, these co-investment opportunities accounted for approximately €750 million in total investment value, underscoring Eurazeo’s commitment to strategic partnerships and collaborative investment initiatives. Co-investments, theoretically speaking can be cataloged under direct transactions as SPV (Special Purpose Vehicle) are created specifically for one single transaction and you are not making the investment for the limited partners but you are making it with the LPs (Limited Partners).

Strategic SPV Structures Analysis

I was tasked with examining strategic Special Purpose Vehicle (SPV) structures solutions for potential investment opportunities. This entailed analyzing, comparing, and developing alternative fundraising structures such as Collateral Fund Obligation and Rated Feeder Fund, focusing on optimizing capital deployment and mitigating risk. The main reason why we were evaluating new financial structures was to attract a category investor that, at the time, was not willing to invest in our funds: American insurance companies. 2023 has been generically speaking a rough year for fundraising capital and for this reason, we decided to implement this kind of solution. A collateral fund obligation is a structure composed by certified debt and equity; this structure will invest in different funds (all managed by Eurazeo) and will have the advantage of using the leverage raised as certified debt to enhance the return on the investment and the Cash on Cash. Therefore, by evaluating various SPV structures, we aimed to enhance our flexibility in structuring investments and optimizing returns for our investors, by using the right amount of leverage.

Evaluation of Secondary Transactions Advisors

I had the opportunity to participate in two competitive selection processes for secondary transaction advisors, tasked with choosing the financial advisor to support us in executing a single asset continuation vehicle. The evaluation process included analyzing and comparing proposed solutions, assessing current market conditions, and evaluating alignment with Eurazeo’s investment strategy and objectives.

Furthermore, this project included evaluation and due diligence, intending to identify strategic partners capable of delivering value-added solutions and maximizing returns for our investors. Single asset continuation vehicles are specialized structures tailored for investments held within the portfolio of a current fund of the firm. These investments require divestment as limited partners seek liquidity. However, recognizing the potential upside, the firm decides to establish these vehicles.

What did I learn during this experience?

My internship at Eurazeo provided invaluable opportunities for skills and knowledge development across various areas:

Financial Analysis: I honed my skills in financial modeling, valuation techniques, and investment analysis through hands-on experience with real-world investment opportunities.
Due Diligence: I gained practical insights into the due diligence process, including a thorough examination of financial statements, market trends, and competitive landscapes.
Strategic Thinking: I developed a strategic mindset by evaluating investment opportunities within the broader context of Eurazeo’s investment thesis and long-term objectives.
Communication and Collaboration: I enhanced my communication and collaboration skills through interaction with cross-functional teams and external stakeholders, fostering effective teamwork and decision-making.

This internship therefore offered a unique opportunity to gain firsthand experience in the dynamic and fast-paced world of private equity and alternative investments. As an aspiring finance professional, this experience has equipped me with the skills, knowledge, and insights necessary to thrive in the competitive landscape of the investment industry. Moreover, it has reaffirmed my passion for finance and deepened my understanding of the critical role played by alternative investment firms in driving economic growth and value creation.

As a newcomer to the finance industry, I had not anticipated the level of intricacy and competition inherent within the environment of Eurazeo. The depth of analysis, the meticulous attention to detail, and the relentless pursuit of excellence underscored the caliber of professionals operating within the firm. Despite the initial surprise, I found myself invigorated by the intellectual rigor and spirited competition that permeated every facet of Eurazeo’s operations.

Central to my experience at Eurazeo was the discovery of a challenging yet remarkably cohesive team—a team that demanded nothing short of excellence yet fostered an environment of camaraderie and mutual support. The intensity of our collaborative efforts forged bonds that transcended professional boundaries, culminating in a shared sense of purpose and accomplishment. Indeed, within the crucible of challenging assignments and tight deadlines, I discovered that the true measure of an internship lies not merely in the tasks accomplished but, in the relationships, forged and the personal growth attained.

Long But Fulfilling Working Hours

While the demands of the internship necessitated long hours and unwavering dedication, I found solace in the gratifying pursuit of knowledge and skill refinement. On average, my workday extended until around 10:30 in the evening, with occasional instances requiring weekend office visits. Despite the rigors of the schedule, the sense of fulfilment derived from contributing to meaningful projects and engaging with industry experts mitigated the challenges posed by extended working hours.

A game-changing internship

My internship at Eurazeo stands as a transformative chapter in my professional journey, characterized by unexpected challenges, profound growth, and enduring camaraderie. Through immersion in the fast-paced realm of private equity, I have gained invaluable insights, honed essential skills, and cultivated enduring relationships that will undoubtedly shape my future endeavours. As I reflect on my time at Eurazeo, I am reminded that true growth emerges from embracing adversity, fostering meaningful connections, and steadfastly pursuing excellence—lessons that will continue to guide me on the path toward personal and professional fulfillment.

Why should I be interested in this post?

I aspire that this experience might aid other students intrigued by Private Equity in gaining deeper insights into the internal dynamics and the range of exposure one can encounter within a private equity firm. Often, when students hear about private equity, their minds jump straight to financial analysis and modeling, overlooking the broader scope. My aim is for this article to spark curiosity among students about this sector, encouraging them to explore the private equity market further.

Useful resources

Eurazeo

Bain Bain private Equity Report 2023

About the author

The article was written in April 2024 by Dante MARRAMIERO (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2020-2023)

My experience as Revenue Analyst at Olympique de Marseille

April 1, 2024 by Quentin CHUZET

My experience as Revenue Analyst at Olympique de Marseille

In this article, Quentin CHUZET (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2019-2023) shares his professional experience as Revenue Analyst at Olympique de Marseille.

About the company

Olympique de Marseille is a French football club founded in 1899. It is one of the most emblematic clubs in French and European football history, with an emblematic international reputation. Through decades of performance and media exposure, it has become an emblem of French sport, inscribing itself as a culture and tradition for millions of supporters around the world.

Logo of the Olympique de Marseille
Logo of Olympique de Marseille
Source: Olympique de Marseille.

Its takeover by the Mc Court Group in 2016 initiated a radical change in management and in the harmonization of processes, to continue to broaden its scope and enable grows bigger. Therefore, the club generates more than 200m € for the seasons 2021-2022 and 2022-2023 with 270m € of revenues expected for the season 2023-2024 It bases its growth on the sporting aspect but also on innovative sport business strategies. With a stadium capacity surpassing any of other Ligue 1 club (67.000 seats) and a meticulous ticketing strategy, the club is part of the Top 10 of the most attractive stadiums in Europe and continues to capitalize on its national and European reach.

OM Revenues vs other clubs.
OM Revenues vs others – Deloitte Report
Source: Deloitte Football Benchmark.

My apprenticeship

Joining Olympique de Marseille allowed me to discover and evolve within the soccer ecosystem, but also to take a practical approach to issues relating to football clubs revenues optimization and maximization.

The diversity of revenue sources at a club like Olympique de Marseille opens the door to a wide range of missions and tasks. As I was directly involved in all strategic aspects of revenue management : I was notably involved in defining the pricing of Ticketing & Hospitality (VIP) revenue streams, drawing up business plans for club projects, managing budgets and revenue targets set at the start of the season, analyzing financial opportunities represented by the entry of sponsors or investors, etc.

I therefore occupied a strategic role, acting as a pivot between the sales and finance teams, defining budgets alongside management control and that could be reachable for the commercial team, and while supporting the sales teams in achieving the latter by analyzing revenue opportunities and proposing strategic recommendations.

1/4 French Cup, season 2022-2023 : OM-Annecy. Historical record of attendance for a ¼ in the club’s and competition’s history.
Velodrome OM Annecy
Source: Olympique de Marseille.

My missions

Strategic recommendations and pricing

The main task assigned to a Revenue Analyst at Olympique de Marseille is to play an active role in defining pricing for the general public and VIPs at each match. To do this, I had to identify the exogenous variables of each match and quantify their impact in order to measure inbound demand as a function of a certain price level. Using historical data from similar matches and cross-referencing it with the maximization opportunities available at any given moment, I was responsible for drawing up the pricing and sales strategy (choosing best commercialization timing, best offer to address etc.) calculating forecast revenue trends and presenting my recommendations to management on several occasions. Thanks to our strategy the club reached the total of 1.550.000 attenders for a unique season and broke other records as the highest attendance ever known for one game (65.984 attendees vs PSG), the highest average attendance for one season (62.065 attendees), the highest number of sold-out games (23 over the season) and the highest attendance ever known for a French Cup game (63.929 attendees). Finally, the strategies leaded by the Revenue Management department leaded to a 4.8M € maximization of the total club revenues.

Participation in club project profitability studies

More generally, as a Revenue Analyst, I was involved in every aspect of the club’s revenue development.

Conducting pricing analysis and manage commercial strategy was part of the Ticketing & Hospitality revenue stream. However, my missions also involved providing my vision on certain high-stakes projects involving additional revenue generation. From the arrival of potential sponsors and investors to the launch of the new “Peuple Bleu&Blanc” loyalty program, I was responsible for measuring the profitability of these projects by calculating the potential income they could generate, while defining and steering a strategy for maximizing it.

Intermediary role between sales and finance teams

The role was multi-functional in terms of strategy, finance, and sales. We had to define ambitious, realistic budgets alongside management control, while supporting the sales teams in achieving them. To do this, we analyzed revenue opportunities and proposed appropriate strategic recommendations for the Ticketing, Hospitality, Retail, Membership and other revenue streams.

Development of steering tools and reporting dashboards

As the analysis are based almost entirely on the measurement of KPIs (Key Performance Indicators), the development of management tools represented a major challenge. So, it was up to me to play an active part, working with the IT (Information Technology) and back-office teams.

Required skills and knowledge

In my role at Olympique de Marseille, it is crucial to understand the financial and commercial issues facing the club and its teams. It’s also important to develop a strategic way of thinking in which everything can be optimized.

As a Revenue Analyst, every recommendation needs to be backed up by data, and every opportunity must be quantified to support each recommendations. That’s why you need to have an excellent mind for analyzing and interpreting data.

Furthermore, the numerous presentations and reports to management require solid written and oral communication skills (PowerPoint presentations, e-mail reports, etc.), as well as adaptability to the person you’re talking to, in order to make the right points and get your recommendations accepted.

In addition, mastery of Excel and the budgeting/revenue forecasting process is key to this position. As each decision has a significant impact on the season’s revenues, numerous budget forecasts are required, particularly around Best/Mid/Worst scenarios. It is also necessary to master the Power BI tool (Business Intelligence by Microsoft) to be able to develop and interpretate every KPI.

Finally, it is essential to be humble and questioning in order to identify areas for improvement in each strategy, and to meet management’s requirements on an ongoing basis and know how to identify the best practices of these recommendations.

OM revenues details for the 2022/2023 season.
OM Revenues - Deloitte Report
Source : Deloitte Report

Financial concepts related to my apprenticeship

Budget Management

Budget management is a key concept in this position, influencing the decisions of sales teams and having a major impact on every strategy implemented. Budget management represents a guideline for costs and revenues, and in particular the preparation of a forecast budget which serves as a basis for input management.

Revenue Management

Revenue Management is a key concept which consists of defining variables considered to have an impact on maximizing revenues in periods of growth and limiting losses in periods of decline. For a club such as Olympique de Marseille, this means capitalizing on positive trends (good sporting dynamics, special matches, etc.) and protecting revenues when the sportive situation is non-favorable : succession of bad games, bad weather on matchday, non-attractive game due to opponent.

Business Plans and Financial modeling

Studying the profitability of projects and simulating the impact of commercial strategies involves drawing up business plans and financial models in order to calculate forecast revenues. To do this, we need to establish different scenarios adapted to different contexts and KPIS and then take into account the action and development plans for these projects, as well as the business models used.

Why should I be interested in this post?

If you’re interested in the field of Finance and Strategy, particularly within a soccer club, then this article will give you a clearer picture of the tasks and skills required, as well as the importance of Revenue Management within a sporting institution. Through this empowering experience, I was able to develop both the hard skills that will serve me well in my future career in Finance, and the soft skills that will enable me to perform in a demanding, high-pressure environment.

If you have any questions about the position or the sector, please don’t hesitate to contact me on my personal Linkedin page, I’ll be delighted to answer them.

Useful resources

Official OM website

Deloitte reporting : Football Money League 2024 edition

Official French Football League website : All DNCG report until 2021-2022 season

Example of a Football club balance sheet : SC Bastia (French 1st division) during the 2015-2016 season

About the author

The article was written in March 2024 by Quentin CHUZET (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2019-2023).

My professional experience as a financial and accounting assistant at Professional Services

March 27, 2024 by Alessandro MARRAS

My professional experience as a financial and accounting assistant at Professional Services

In this article, Alessandro MARRAS (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange Semester, September 2023-December 2023) shares his professional experience as a financial and accounting assistant at Professional Services.

About the company

Professional Services was founded in 1986 by a team of professionals (lawyers, chartered accountants, and labor consultants), with the aim of providing services to businesses in the accounting, labor, administrative, tax, and corporate sectors. The mission is to offer entrepreneurs an integrated package of services capable of stimulating organizational transformations and facilitating the achievement of adequate levels of competitiveness. The target audience addressed by the Group primarily consists of Italian and foreign companies operating in the service sector and tertiary industries in general, as well as industrial, commercial, transportation, etc. With over thirty years of experience in the sector and an average annual group turnover of approximately €2,000,000, Professional Services can guarantee their clients the highest level of professionalism.

Logo of Professional Services.

Source: Professional Services.

As an assistant, I was part of the financial and accounting advisory department of Professional Services. In this department we were entrusted with critical responsibilities spanning the processing of accounting data and the provision of essential accounting and administrative services. The department served as the backbone of the organization, providing essential support across a spectrum of financial activities. We were responsible for maintaining accurate and up-to-date accounting records, ensuring the integrity of financial information. Moreover, we undertook the crucial task of preparing and analyzing financial statements, offering insights vital for informed decision-making. Additionally, the team managed various accounting and administrative services, including the maintenance of corporate books, providing corporate assistance, and overseeing the intricate landscape of taxation, encompassing value-added tax (VAT), personal income tax, corporate income tax, and regional tax on productive activities.

My internship

I had a 3-month internship at Professional Services as a financial and accounting assistant in 2023.

My missions

Over the course of these three months, my mission was to prepare and analyze the financial statements for our clients. I ensured that these statements were accurate and complied with relevant accounting standards, providing reliable insights for decision-making. This involved meticulously reviewing balance sheets, income statements, and cash flow statements for the given clients and reporting how these statements were in comparison to industry benchmarks. Moreover, I contributed to the maintenance of clients’ accounting records, assisting in the establishment of a comprehensive and organized financial record-keeping system. I did this through a software called Profis which helped by facilitating the compilation of balance sheets and declarations and performing tax simulations. Additionally, I handled various tasks related to invoicing, ensuring accurate processing and organization to facilitate smooth financial transactions for our clients. By fulfilling these responsibilities diligently, I aimed to support our clients in maintaining financial integrity, facilitating informed business decisions, and providing excellent service overall.

Required skills and knowledge

During this internship, I sharpened a combination of soft and hard skills that were indispensable for my position. Soft skills, such as effective communication, were essential. The ability to convey complex financial information clearly and succinctly to colleagues was crucial. Additionally, strong interpersonal skills facilitated collaboration within the team and ensured smooth workflow.

Attention to detail emerged as a critical soft skill, particularly when working with financial data and reports. The ability to meticulously analyze information and identify discrepancies was crucial for maintaining accuracy and reliability. Furthermore, time management skills were invaluable, as I often juggled various tasks and deadlines while prioritizing workload effectively.

On the hard skills front, proficiency in accounting principles and practices was fundamental. This included a thorough understanding of IFRS accounting regulations and principles, coupled with experience in financial statement preparation and analysis. Additionally, familiarity in applications such as a spreadsheet like Excel and an accounting software like Profis was essential. Mastery of Excel allowed me to manipulate and analyze financial data efficiently, while knowhow in Profis facilitated specific accounting operations and analyses required for the firm’s services.

Adaptability was also key, given the dynamic nature of the internship environment. The ability to quickly learn and adapt to new software and procedures ensured that I could contribute effectively to the team’s objectives. Overall, the combination of soft and hard skills enabled me to excel in my internship at Professional Services, providing me with invaluable experience and preparing me for future challenges in the field of finance and accounting.

What I learned

In terms of knowledge, I learned a multitude of valuable lessons that have significantly contributed to my professional growth and development. Firstly, I gained hands-on experience in financial statement preparation and analysis, improving my skills in interpreting financial data and drawing meaningful insights to support decision-making processes. Through my work. An integral part of this experience was learning to meticulously review and reconcile accounts to ensure accuracy in financial reporting. By identifying and correcting discrepancies between the general ledger and subsidiary accounts, I helped maintain the integrity of financial statements. Additionally, I deepened my understanding of IFRS (International Financial Reporting Standards) accounting principles and regulations, which are crucial for ensuring transparency, accountability, and comparability of financial statements. By familiarizing myself with these principles, I was able to assist in preparing financial statements that met regulatory requirements, enhancing the credibility and reliability of our clients’ financial information.

Moreover, working with software applications such as Excel and Profis expanded my technical proficiency, allowing me to efficiently manipulate and analyze financial data. This experience has enhanced my ability to leverage technology to streamline processes and improve productivity in the workplace.

On a broader level, my internship at Professional Services provided me with invaluable exposure to the dynamics of the finance and accounting industry, in the sense that I gained insight into the day-to-day operations of a consultancy firm, including client interactions, and the importance of maintaining accuracy and integrity in financial reporting.

Furthermore, collaborating with colleagues from diverse backgrounds, such as with different experiences, educational backgrounds and different areas of expertise, has improved my communication and teamwork skills, fostering an appreciation for the importance of effective collaboration in achieving organizational goals.

Overall, my internship experience at Professional Services has equipped me with a comprehensive skill set, valuable insights, and a deeper understanding of the finance and accounting profession, laying a strong foundation for my future career aspirations.

Financial concepts related my internship

Financial Statement Analysis

Financial statement analysis involves evaluating a company’s financial performance and position by examining its income statement, balance sheet, and cash flow statement. In my role, I actively participated in the preparation and analysis of financial statements for clients, ensuring accuracy and compliance with accounting standards.

Financial Reporting Standards

Financial reporting standards refer to a set of guidelines and rules established by regulatory bodies or standard-setting organizations to govern the preparation and presentation of financial statements. These standards aim to ensure consistency, transparency, and comparability in financial reporting across different organizations and industries. In my role, I applied financial reporting standards to prepare and review clients’ financial statements and records, ensuring accuracy and transparency in reporting.

Taxation

Taxation includes corporate income tax, applied to business profits, and value-added tax (VAT), imposed on goods and services at each stage of production. Corporate income tax understanding involves knowledge of tax laws, deductions, and applicable rates. Similarly, understanding VAT requires knowledge of registration, taxable transactions, and applicable rates. Even though I was not directly involved, the team was responsible in accounting for VAT and corporate income tax for clients, ensuring compliance with relevant regulations.

Why should I be interested in this post?

An ESSEC student aspiring to pursue a career in finance would find my experience at Professional Services particularly compelling. By sharing my experience as a financial and accounting assistant, I aim to offer fellow ESSEC students a glimpse into the practical application of finance concepts in a professional setting, inspiring and informing their own career aspirations in the field.

Useful resources

Professional Services

About the author

The article was written in March 2024 by Alessandro MARRAS (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange Semester, September 2023-December 2023).

My experience as a Data analyst in CEMEX

March 5, 2024March 5, 2024 by Jorge KARAM DIB

My experience as a Data analyst in CEMEX

In this article, Jorge KARAM DIB (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2024-2025) shares his professional experience as a Data Analyst and Data Management in CEMEX.

About the company

CEMEX is one of the leaders in building materials in the world. Their main products are cement, concrete, and aggregates (building materials in general). Based in Mexico, CEMEX reported a $15bn USD revenue in 2022, representing a 12% increase from the previous year. The company’s sales distribution, with cement, leading at 42%, followed by concrete at 33%, aggregates at 14%, and urban development at 11%, illustrates a balanced yet strategic emphasis on its core products and services.

Geographically, CEMEX’s influence spans major regions, with a substantial presence in Mexico, the USA, Europe, Asia, the Middle East, South America, and the Caribbean. Its operational footprint includes 64 cement plants, 1348 ready-mix concrete facilities, 246 quarries, 269 distribution centers, and 68 marine terminals, showcasing its capacity to serve a global clientele effectively.

At their beginnings, the company started with a single plant in Hidalgo, Mexico, called “Planta Hidalgo” under the direction of Mr. Lorenzo Zambrano, founder and CEO. Ever since then, the company adopted a philosophy of growing by acquisition. Great financial ratios, high volume of sales related to a big percentage of market share in Mexico, allowed CEMEX to do key strategic acquisitions throughout the next years that catapulted CEMEX into the international markets. Even with the financial crisis in 2008, they have been resilient and survived a big economic turmoil thanks to their high-quality products, service and cutting-edge advancements in digitalization, supply chain and data management.

Logo of the company
Logo of CEMEX
Source: CEMEX.

At the beginning of my career in the company, I started inside a program called “Digital Professionals in Development” (DPiD) which aimed to train and prepare 100 recently graduates to help the company boost the digital transformation in a period where CEMEX was going through a major digital transition of the commercial customer experience. Inside the program, I started as a Data Scientist inside the Global Data Analytics department, which allowed me to understand the different schemes of work, the hierarchical processes, capabilities and scope of the company and the institutional tools.

After working for the Global Data Analytics, another area that I’ve had experience, and where I’ve spent most of my time with, is the Commercial Development Area. Here, the intention is to keep the company at the state of the art in the commercial practices and keeping up with the technological trends of the world. My main duties have been regarding Data Management, on the development and management of advanced data analytics projects and master data quality, everything under the commercial umbrella.

My expertise at Data Management

Advanced Analytics

The way Advanced Analytics topics are managed is in a scheme by projects and in a cross-functional mode with other areas of the company like data architecture, supply chain, and more. According to the needs, or trends that anyone in the company points out, we assess the feasibility and benefit of approaching a new idea.

Some of the topics that we’ve been approaching have to do with increasing sales, enhance customer experience, increase Net Promoter Score (NPS), and improve the digital experience. One of the main projects that we’ve been developing is aligned with the retention of customers by predicting with service variables, historic volume trends, and machine learning the probability of a customer leaving the company. This effort requires to align with sales people of the different regions to set thresholds for the service variables and come to an agreement, consume information from the correct architecture source, and do the development of the machine learning model. As a final product, we’ve got the model embedded in a dashboard that the sales people can consult at any time, joined by monthly alerts sent to their email and their Customer Relationship Management (CRM) account.

Data Quality

Within the area, we’re managing the quality of the commercial information by managing and implementing actions to improve their completeness and accuracy. We acknowledge the importance of a high-quality level of information. Understanding that high data quality is the base of a successful forecast, project improvements, and in general for a company to become data driven.

As expected with a company that has presence in many regions of the world, the amount of information and different types of it can be overwhelming, a prioritization and starting point had to be put in place in order to overcome the overwhelming amount of information. Naturally, the first step was to define the attributes, and fields to be measured. After doing so, we had a clear picture of pain points throughout the regions and we prioritize the remediation of them. Lastly, as we don’t want to be continuously doing the cleaning effort, we want to maintain as much as possible the incoming information clean, in order to do so, it is necessary to put entry point validations to only allow clean information to come into the systems.

Required skills and knowledge

It is necessary to have the “hard skills” to work with the institutional tools, in CEMEX’s case, it is needed to know SQL, Power Bi, and Python (and/or R). Apart from the “hard skills” just mentioned, it is also necessary for “soft skills” to be known and/or developed, which would be to coordinate different areas and teams to work together, frequent results report, presentations to stakeholders, agile methodology to follow the progress of the project, and more.

What I learned

My main takeaways that I’ve had working at these projects is the importance of coordination with other areas, the help and expertise that you can get from relying with people with more experience would be as a shortcut for a lot of problems that may arise. Always ask for help whenever you feel that you might be stuck with an issue and be open to receive new ideas.

Financial concepts related my internship

EBITDA/Debt ratio

As mentioned earlier, part of the company’s philosophy is to grow by acquisition, hence the EBITDA/Debt ratio is crucial in order to get debt with lower interest rates, as the ratio is part of the key financials that banks and rating entities take into account when analyzing a company.

Return on Assets (ROA)

This financial indicator measures a company’s efficiency in generating profits from its assets. It is calculated by dividing the company’s net income by its average total assets. In other words, ROA indicates how effectively a company is utilizing its assets to generate earnings.

Why should I be interested in this post?

This post is with the intention that any student or alumni can have a glimpse of the structure of my professional experience in a company that is based in a different continent and would probably help them compare and see the main differences and similitudes between what is being done in Europe against what is being done in Mexico.

Useful resources

CEMEX Official webpage in France (ICD)

About the author

The article was written in March 2024 by Jorge KARAM DIB (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2024-2025).

My experience as an Asset Management Sales Assistant for Amplegest

June 4, 2024February 12, 2024 by Chloé ANIFRANI

My experience as an Asset Management Sales Assistant for Amplegest

In this article, Chloé ANIFRANI (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2019-2024) shares her professional experience as Asset Management Development Assistant for Amplegest.

About the company

Amplegest was established in 2007 and operates across three main business segments: Private Wealth Management, Family Office, and Asset Management.

Private Wealth Management

Wealth Engineering: A team of wealth engineers provides personalized advice to clients, addressing evolving issues related to wealth, taxation, and family matters over time.

Discretionary Portfolio Management: The firm offers the market expertise of its fund managers, developed through extensive experience in banks or asset management firms. Amplegest actively seeks new investment opportunities across all asset classes and geographical regions, employing a short and collaborative decision-making process for responsiveness.

Profiled Portfolio Management: The firm offers specific profiled portfolios to retail investors, who manage their own clients’ portfolios.

Family Office

Amplegest serves high-net-worth individuals in France and internationally through a dedicated department, Canopée FO, offering fully customized services.

Asset Management

Amplegest’s Asset Management division offers three expertise:

Equity: with 5 funds, the firm covers many thematics (such as technological innovation, pricing power), capitalizations (large, mid and small caps) and regions (global, US and Eurozone),
Diversified portfolios: with its Latitude range, the firm offers diversified funds with precise return objectives and risk allocation, with an offer for each profile of investor,
Fixed Income: the firm distributes Octo AM’s funds, a company specialized in bonds funds, with a Value management style.

Key Facts and Figures

Assets under Management (AuM): 3bn€
A large product range of more than 13 funds
Diverse clientele: institutional, retail, funds selectors…
All activities of Amplegest are approved by the AMF (Autorité des Marchés Financiers).

Logo of the company.
Logo of Amplegest
Source: Amplegest.

My internship

My internship was in the sales department of Amplegest Asset Management. With a team of five sellers, I learned about the different distribution channels of funds in a B2B model (the team I was in did not work with final clients). The focus of the team is on institutional and retail clients. In 2023, we mainly worked on distributing Octo AM’s bonds funds, which have met a great success following the interest rates’ raises. The firm’s fixed income’s AuM went from €350m in 2022 to €800m in 2023.

My missions

Over the course of six months, I supported the team with customer relationship management and enhancing our understanding of the firm’s competitive landscape.

One of my primary responsibilities involved diligently preparing for client appointments. This entailed creating comprehensive briefs on Amplegest funds and conducting in-depth analyses of their competitive environments. Whether addressing global competition or specific funds selected by clients, my aim was to highlight the differentiating aspects of our offerings.

In addition to client-focused tasks, I took charge of producing documents containing technical information about the funds, ensuring compliance with our customers’ regulatory requirements such as “étude de transparisation”, KYC, and Due Diligence. Monthly, I managed the dispatching of these documents, tailoring the frequency to the individual needs of each client.

Collaborating closely with both the Asset Management and Marketing teams, I actively contributed to the planning and execution of numerous B2B events. This encompassed the coordination of trade fairs such as Patrimonia, organizing large-scale professional lunches and presentations, facilitating webinars, and orchestrating engaging professional afterwork events.

Furthermore, I dedicated efforts to augment the firm’s understanding of its funds’ positions in the market. Collaborating with dedicated tools designed to gather real-time information on competitors’ performance and track records, I systematically compared these metrics against our own. This included the creation of specific peer groups tailored to each fund, providing valuable insights into their relative standing within the market.

Required skills and knowledge

In Asset Management firms, the role of Sales Assistants requires a multifaceted skill set that encompasses technical expertise and strong interpersonal skills. B2B clients expect sales professionals to possess an in-depth understanding of the market and its dynamics, coupled with the ability to articulate a fund’s management process, recent market movements, and current values with the same proficiency as a portfolio manager.

Upon assuming the role, I prioritized enhancing my knowledge of current events, particularly those related to the stock market and global financial trends. Each day commenced with a thorough review of newsletters, and I highly recommend daily publications by Bloomberg for comprehensive insights. This proactive approach allowed me to respond swiftly when clients sought information about the prevailing market conditions and how they correlated with Amplegest’s product offerings.

A good knowledge of the regulatory environment of Asset Management firms is also essential. The rules that govern this profession are numerous and constantly updated. This means that a great interest for current events (suits and convictions in other firms, general recommendations…) will be beneficial, as well as a good understanding of the guidelines provided by the Compliance department.

A proficiency in Excel is paramount, serving as a vital tool for data analysis, reporting, and decision-making within the asset management landscape. Additionally, financial analysis skills are crucial for interpreting complex financial data and providing comprehensive insights to clients.

In terms of soft skills, effective communication is fundamental—both verbal and written—enabling the clear and concise articulation of complex financial concepts. Strong client relationship management skills are essential for building and maintaining long-term partnerships, understanding client needs, and providing excellent customer service.

Adaptability is key in navigating evolving market conditions, client preferences, and organizational changes. Problem-solving skills come into play in identifying challenges and proposing effective solutions to address client inquiries and concerns.

Negotiation skills are valuable in securing mutually beneficial agreements with clients, while team collaboration is essential for working effectively with colleagues across different departments, fostering a cooperative and supportive work environment. Effective organization and multitasking are necessary for managing multiple tasks and projects simultaneously, while analytical thinking is crucial for making data-driven decisions and providing valuable insights to clients.

Furthermore, networking skills contribute to building a professional network within the industry, attending relevant events, and staying informed about industry trends. Finally, strong time management ensures efficient task prioritization, meeting deadlines, and delivering results in a fast-paced environment. Together, these skills collectively contribute to the effectiveness of an Asset Management Sales Assistant in navigating the complexities of the financial industry and delivering value to clients and the organization.

What I learned

In terms of knowledge, I learned a lot about the organization of an Asset Management firm, and its funds. In this internship, I gained practical knowledge of the regulatory landscape governing the financial sector. I also learned about fund organization and shares, exploring the nuances of fund structures, issuance of shares, and compliance with legal frameworks. Moreover, I developed a perspective on the distinctions between the back, middle, and front office specific functions within an asset management firm. This exposure allowed me to appreciate the integral roles each department plays in the overall operational efficiency and success of the organization.

In this role, I was also able to use skills developed in previous internships. Time management was one of them, which, as explained earlier, revealed itself to be a crucial component to a good experience in this field. Indeed, some requests from clients and coworkers needed to be tended to in a matter of minutes or may make the firm lose millions (a bit extreme, but sometimes realistic). Therefore, my other missions needed to be done as soon as possible, to allow time for the more pressing ones. I learned to organize my work to optimize my efficiency on this matter.

In terms of technical skills, I learned funds analysis, with the ability to evaluate their performance, risk profiles and underlying strategies thanks it their allocation and communications. This involved a systematic examination of the firm’s competitive market and its key players and trends.

Thanks to this in-depth benchmark, a sales team is able to prepare clients’ briefs, but also to offer new strategies and product offerings to their managers, identifying market opportunities and specific needs for the clients.

This experience has not only enhanced my analytical capabilities but also deepened my understanding of the intricate dynamics within the financial markets.

As a Sales Assistant, I also developed my VBA skills, and learned the power of this tool, especially used in finance firms. Excel VBA helped me to automate and streamline numerous tasks related to data analysis, reporting, and client communication, thereby significantly enhancing my efficiency and productivity. By developing proficiency in Excel VBA, I could create customized macros and scripts tailored to the specific needs of our team, automating repetitive processes and allowing me to focus more on strategic aspects of sales and client relationship management.

Overall, this experience not only broadened my knowledge and skills base but also equipped me with practical insights crucial for navigating the complex and highly regulated landscape of asset management.

Financial concepts related my internship

Fixed income

As explained earlier, 2023 was the year of fixed income. Because of this, understanding the inner workings of a bond funds was essential, as those funds are more complex than equity funds.

In order to give the clients the information they required and work adequately with the provided documents, this knowledge was a real necessity.

Diversified Asset Allocation

In preparing briefings for clients and partners, I often had to summarize the recent movements made on the firm’s diversified funds. Those funds invest in ETFs, bonds, monetary funds structured products in order achieve their expected annual return and respect their risk budget. Therefore, this type of product is, once again, more complex than equity funds, and require a deep understanding of active asset allocation and market movements.

Return on Investment

In order to have more insight on Amplegest’s clients’ satisfaction, I had to compute their total RoI, taking into account every movement they made over the course of their investment in the firm (subscription/redemption), in different funds at different times and with different net asset value of the shares they bought. This required a good understanding of Return on Investment.

Why should I be interested in this post?

As ESSEC students, we often think of working in Asset Management firms as working as a portfolio manager. However, there are many other functions in this field, and sales is one of them. If you are looking to expend your knowledge on the field and your potential future job inquiries, this post will teach you more about a very exciting position!

Useful resources

Asset management markets in Europe size & share analysis – growth trends & forecast

Amplegest

About the author

The article was written in February 2024 by Chloé ANIFRANI (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2019-2024).

The Gold Standard

Introduction

The Gold Standard’s Role in Economic Stability

Stabilizing Exchange Rates

Preventing Inflation

International Trust and Trade

Countries that Opted Out of the Gold Standard

The Great Depression and the Decline of the Gold Standard

Transition from the Gold Standard to the Bretton Woods System

Conclusion

Why should I be interested in this post?

Related posts on the SimTrade blog

Useful resources

Academic research

Business

Other

About the author

My experience as an Accounting Assistant at Dafinity

About Dafinity

Part-Time CFO Services

Transaction Advisory Services (TAS)

Digital Transformation Consulting (TD)

My missions

Required skills and knowledge

What This Experience Brought Me

Skill Development

Understanding the Firm’s Environment

Interpersonal Skills

Financial concepts related my internship

Cash-flow

Depreciation

Fixed Assets

Related posts on the SimTrade blog

Useful resources

About the author

My Experience as a Credit Risk Portfolio Analyst at Société Générale Private Banking

Société Générale

What is a Credit Risk Portfolio Analyst?

My missions

1. Credit Portfolio Monitoring

2. Credit Provisioning

3. Stress Tests on Financial Assets

4. Regulatory Projects

Required skills and knowledge

What This Experience Brought Me

Financial concepts related my internship

Probability of Default (PD)

Loss Given Default (LGD)

Stress Test

Why should I be interested in this post?

Related posts on the SimTrade blog

Useful resources

About the author

Weiji Zhang: The Entrepreneur Behind Buddyp2p – Innovating Peer-to-Peer Parking and EV Charging

About the Company

Buddyp2p

Weiji’s Entrepreneurial Journey

Inspiration and Motivation

Challenges and Solutions

Milestones and Success Stories

Building a Strong Team

Skills and Knowledge for Success

Future Vision and Impact

Advice for Aspiring Entrepreneurs

Related Posts on the SimTrade Blog

Useful Resources

About the Author

Johan Sjöö: The Visionary Behind Hale – A Holistic Wellness Platform

About the Company

Hale

Johan’s Entrepreneurial Journey

Inspiration and Vision

Challenges and Strategic Solutions

Milestones and Success Stories

Developing the Hale App

Skills and Knowledge for Success

Future Vision and Impact

Advice for Aspiring Entrepreneurs

Related Posts on the SimTrade Blog

Useful Resources