JOHN McCLAIN

China

In my last blog I gave a brief introduction into the background for how the class “Doing Business in China” came to fruition. I was very exited to see a country I had heard so much about and over time have formed some strong opinions about China’s economy. I had heard the pollution in Beijing was bad and I wasn’t disappointed. The smog there is like nothing I have ever experienced. I literally could not see all of Tian’men square because of it. The first day was quite a shock. The weather was probably 60 degrees colder and I was tired from another long day of traveling. Three of my classmates and I wandered through downtown Beijing and found the most famous Peking duck restaurant and sampled the cuisine. It was fantastic, our duck was even numbered and we were presented with a certificate with its information.

The week was jammed packed with events. We attended lectures at Beijing University and CKGSB about Strategy and M&A. We also visited several companies including Lenovo and Zero2ipo, saw the Forbidden Palace and the Summer Palace and connected with several alumni at an alumni dinner. The highlight of the course in Beijing was listening to Dr. Wei-Guo Zhang, the Chief Accountant of the China Securities Regulatory Commission, think SEC. His lecture focused broadly on Chinese financial markets and was very insightful. It was time to depart Beijing but before we did that our class went to the Great Wall. Everyone had an absolute blast climbing up and down the ancient steps. Standing high atop a mountain on the Great Wall was one of the most breathtaking visions I have ever seen and it was great to share the moment with so many friends. We departed the Great Wall and hoped on an overnight sleeper car to Shanghai.

Shanghai and Beijing are like night and day. I’d equate the feel of Shanghai to that of New York City, much more business oriented, and Beijing to more of a Washington, D.C. feel, more politically oriented. The city was quite impressive with over 4000 thousand buildings 30 stories or higher the skyline was heavily populated. The Shanghai schedule was even more hectic with events lasting 12 hours plus almost every day. Monday morning I was able to see the Shanghai stock exchange up close in personal. The exchange has grown from 8 listed companies to almost 900 listed companies in 16 years. That was followed up by touring a manufacturing plant and speaking with Deloitte. Tuesday was probably the most interesting day for me. We started the day by attending a lecture on Marketing at CEIBS. The comparison between Chinese and American consumers was especially interesting. After that it was off to Eaton Electrical’s M&A group. The small group touched on the complexities of M&A in Asia and discussed a recent acquisition. Hearing about trends in how deals were structured was extremely informative and interesting.

The next few days brought trips to Microsoft, Ingersoll Rand, and GE as well as an alumni dinner. I think many of us including myself really enjoyed another aspect of the trip, haggling. Negotiations class came in very handy as we haggled over everything from clothes, to golf clubs, to a shop owners cat (no we didn’t purchase it) but it was very interesting to be immersed in this type of culture. All in the entire trip was amazing and a great time to catch up with some classmates. Now I am back in the states switching gears getting ready for classes.

Thailand

So it has been a long time since my last post on the website and things have been crazy. Finals came and went but for the first time in my 6 mini’s I did not have a final exam. All of my classes required final projects and presentations which led to a hectic week before finals but also provided me with some much needed additional rest. Then there was Christmas and right after that celebration I was off to Thailand and China.

Several ambitious students at the school have been working diligently on strengthening the ties between our school and its alumni in the Far East. This year’s trip was the first widely promoted excursion and was highlighted by 33 students heading off to learn about “Doing Business in China”. Essentially, the course was a 2 week immersion into every aspect of Chinese society. Luckily, a few of the students going on the trip as well as our professor are excellent Mandarin speakers or I would certainly be lost as we speak.

Before I get to that I must talk a little bit about Thailand. One of my classmates was gracious enough to host 4 other classmates and myself and essentially she showed us the time of our lives. We arrived in Bangkok after a grueling 24 hours of traveling that included leaving and entering China’s customs in under 2 hours. That was an absolute spectacle as 2 of my classmates and I where barreling down corridors with massive amounts of luggage falling behind. Let me say that thankfully, at least for us that day, security outside the U.S. is much more lax. We arrived in Bangkok where we stayed at the Narai hotel, a very affordable and luxurious hotel, which I highly recommend. We saw the Royal Palace which was amazing and zipped through canals on some small boats. Quite possibly the most interesting experience was being transported from destination to destination in small 3 wheeled vehicles called tuk tuk’s. Driving rules in Bangkok don’t exist. One lane can easily occupy 2 or more vehicles and trust me weaving in and out of traffic in an open air vehicle is quite eye opening.

We left Bangkok and hoped down to Phuket were the trip turned from great to once in a lifetime. The weather there was spectacular and we stayed in the nicest hotel I have ever been in. The Rising Sun Residence in Phuket is the type of place I could envision going on a honeymoon or retiring to someday. We stayed in a 3 bedroom villa with a private pool that was located on top of the island and overlooked the water. Spending New Year’s Eve feeding monkeys, snorkeling, island hoping and seeing where the movie the Beach was filmed was pretty amazing. New Year’s Day was spent riding Water Buffalo and Elephants! To say that I was sad to leave Thailand might be the understatement of the year but I was definitely looking forward to 10 days with classmates in China.

More info on the Narai hotel

http://www.gothailand.com/hotels/bangkok/frameme.php?page=/narai-hotel/

More info on the Rising Sun Residence

http://www.rising-sun-residence.com/

Intellectual Capital

Forget oil, gas, and steel; intellectual capital is the hottest commodity around.  With an ever more global economy, the only way to differentiate yourself to employers and justify a generous salary is to prove that you have the skills to generate revenue for a company. 

The MBA degree is currently in high demand.  Basic economics shows that supply will adjust to meet demand and the MBA degree is no different.  Thousands of students domestically graduate each year with an MBA degree, not to mention the growing presences of MBA programs globally.  I am currently in China studying and have attended lectures at CEIBS and Beijing University (more on that in a few later blogs).  So the question boils down to this; how does Tepper... and more importantly how do we as Tepper students differentiate ourselves?  The answer is through analytical thinking and decision making. 

Math; it might as well be another one of those four letter words that shouldn’t be used at the dinner table.  Plain and simple, many business people are scared of it.  I see this as a golden opportunity to make myself invaluable to an employer and Tepper preaches analytical decision making.  Today’s business environment is like nothing seen before.  Companies now have a plethora of information that is ripe for mining.  Thanks to classes like Data Mining, Optimization Methods in Finance, and Sequencing and Scheduling Tepper students have the know how to collect data, structure problems and interpret results.  Who needs these skills?  Look at companies like Harrah’s, Google, Microsoft, Amazon, Wal-Mart, any bank, etc. they monitor your spending and searching habits and tailor their services to extract the maximum dollar value out of each of their customers.

Combining the more quantitative classes with Strategy, Organizational Behavior, and Communications courses mold students into well rounded individuals who are able to communicate at the C-level and not be afraid to get their hands dirty.  Numbers are not to be feared; they should be embraced.  In so many different industries rules of thumb are used.  To me rules of thumb basically mean I either A. don’t want to put in the time and effort to treat the problem as unique or B. I don’t know how to approach the problem so I’ll use a generalization.  Needless to say, not having the tools necessary to analyze complex and dynamic problems can lead to big mistakes.  Being able to bring an analytical approach to decision making can quickly catapult you on the fast track within a company.  I have heard countless accounts of this happening with my classmates and alums and have also seen this first hand.  Not many people have this ability, with it I feel like I don’t have to rely on anyone and will be able to tackle problems in a different manner than many of my colleagues.  I know that the Intellectual Capital I have acquired while at Tepper is well worth the time, money, and effort I have put into.  Well, I have to be up in 6 hours for a lecture at CEIBS and visits to Eaton and Microsoft so I will sign off.

Friday's

Friday’s are a time for catching up at Tepper.  We do not have classes and so one would think that every weekend would be an extended vacation but that isn’t the case.  Many people use the day as a time to attend recitations or go on recruiting trips / job interviews.  This Friday I had the opportunity to be part of a Community Outreach event that placed Tepper students with local high school students from City High.  City High is a 21st century school located in downtown Pittsburgh that provides a technology-oriented learning environment for students and teachers. This charter school focuses on training students for careers in high-tech fields and provides a year-round calendar. 

25 Tepper students led a case competition that involved the City High students coming up with a new video game concept.  After developing the idea the students then had to come up with marketing projections and a financial plan.  They finally presented their ideas to a Board of Directors and their classmates.  The event was a great opportunity to interact with the Pittsburgh community and I was amazed by the intelligence and creativity of the students. 

Teenagers certainly can wear down the most energetic MBA and luckily I had 2 hours to relax before the Wine Club held a tasting event.  The event focused on the French wine industry and was led by a prominent wine scholar.  We sampled six wines from six different regions and being somewhat of a wine novice I learned a lot.  I’ll share one takeaway; Muscadet is an excellent complimentary wine with fish.  After my day off I am ready for the weekend.

More information about City High can be found at www.cityhigh.org

Community Part 2

This is definitely going to be a short entry as the holiday break gave us an extended break.  Well I hope everyone had a great Thanksgiving.  For me this week was about three things; family, food, and football.  This month I wanted to touch on community both within the school and outside of it.  Again I can’t say enough about how great everyone within Tepper has been.  However, it’s great to have an external support group of friends and family to sit down with and talk about the important decisions I have to make.

Whether you are a seasoned business man or woman or have absolutely no experience in the business world you are bound to learn about many different disciplines and industries while at Tepper.  Coming into business school, you may think you know exactly where and what you want to be doing 5-10 years down the road.  There is a strong chance that after being exposed to a wide variety of different classes, classmates, and a summer internship your goals will change.  Business school for me has been 2 years of gaining additional tools and skills necessary to be successful but more importantly it’s been 2 years of figuring out exactly what my priorities in life are.  I have 30, 40, maybe even 50 years of work ahead of me and know that because of the total MBA experience I’ve had my decision about where to begin my post MBA journey will be an excellent one.  As an aside, best of luck to all to the round 1 applicants; I know waiting for a decision can be absolutely nerve racking. 

Community

Going to Business School is a major decision.  You are committing two years of your life.  For most that means forfeiting a comfortable salary to return to the life of a poor college student and of course taking out more student loans.  Didn’t I just pay of those undergrad loans?  I must say that when making the decision of where you are going to be spending those next two years of your life evaluating the community and culture of a school should be at the top of the priority list.  Over the past 15 or so months I have had the opportunity to interact with students at almost every top domestic and international B-school and have to say that every school differs greatly in terms of overall community.

One of Tepper’s greatest strengths is its small class size.  I think of it as a flat organization, you’re not just a number.  Many schools talk about leadership; we practice it everyday.  Tepper’s class size provides students many opportunities to hone their leadership abilities through leading clubs, student government, and organizing other events. 

That’s what’s so great about the atmosphere here, it’s a utilitarian environment.  Students see a way to improve the overall experience and have the resources at their disposal to satisfy that need.  The Investment Club created a student run fund that provides first and second years the opportunity to pitch stocks.  The first meeting was a huge success as 9 students pitched a wide variety of companies to a packed house.  Student government led an initiative called the Tepper Prepper which was designed to pass along second year knowledge about behavioral and case interview preparation as well as networking tips.  The final two sessions where last week and were also big successes.  Students provide the ideas and lead the charge but ideas couldn’t always come to fruition without the help of administration and staff.  That’s really where the flat organization comes into play.  Our dedicated Student Services staff is always available and more than ready to help student initiatives.  The faculty is also constantly examining student feedback and adjusting curriculum to best prepare us for making an immediate impact once we leave.  Essentially, everyone is on the same page.

On a more social level, the school has a Midwest feel.  Everyone knows each other by the end of the first week and it’s great to walk down the hallways and see people smile back at you.  You’re bound to leave the school with a number of lifelong friends.  People are down to earth and hardworking, which is quite contagious.  It’s a great environment to intellectually challenge yourself in the classroom and also learn from 300+ amazing individuals.  I could go on about this for awhile but really need to read about the Quest for Value.

24

Most of the information on the website is at a macro level talking about everything you learn and experience while at Tepper.  I wanted to drill down in one of my posts and talk on a more micro level about some of the day to day activities that occur.  So what is a typical day for a Tepper student?  Well, the short answer is there isn’t one but this is my schedule for the upcoming Monday.  As you can see, time management skills are very important as we all try to create additional hours each day.

7:30 – 9:           Wake up, scan the WSJ headlines for any relevant information on several of the companies I am following (for any number of reasons) and get to school.

9:30 – 10:         Meeting with a classmate who interned at a company that I am speaking to soon.  I am trying to get a better understanding of the job description / expectations and the corporate culture. 

10:30 – 12:30:  Business Acting.  The first class of the week is quite enjoyable especially because there is no homework due.

12:30 – 1:30:    Quick lunch followed by some last minute interview preparation.

1:30 – 2:30:      Valuation.  I have to leave class early to make my 2:45 interview.

2:45 – 3:15:      First round interview with a Financial Services company.

3:30 – 4:00:      Weekly meeting with the Director of Facilities for the school.  In my role as GBA Vice President I sit down every week with the school’s Director of Facilities to discuss student needs / concerns.

4:00 – 4:30:      Speak with an Executive at another company about potential job openings, essentially an informational session.

4:30 – 5:30:      More in-depth reading of the WSJ, catch up on the day’s market activities.  Finalize my stock pitch for later that night.

5:30 – 6:30:      Dinner and some quick reading for any homework assignments coming up.

6:30 – 9:00:      The Investment Club is holding their first stock pitch.  I am an analyst for the Tepper Opportunity Fund covering the Financial Services sector this semester.  I will be pitching PNC Financial Services.  Based on my research they are a strong buy going forward. 

9:00 – 10:00:    Quick workout, head home.

10:00 – 12:00:  Homework.

1 down 3 to go

Is there anything as enjoyable as sitting in an airport waiting for a delayed flight?  Well mini 1 is over and I am officially 62.5% done with the program… time absolutely fly’s here.  After taking one of the most difficult tests of my life I felt like it was time to take a break and see my family before I embark on a heavy travel schedule over the next 6 months.  Kentucky was great but now its back to school for mini 2. 

In sporting news, the Tepper IM racquetball team is undefeated and looking for another win on Tuesday.  Unfortunately one of our teammates, Evan Keyser, broke his ankle on the court yesterday.  We’ve dedicated the championship to Evan.  CMU’s football team is also undefeated at 6-0 and I saw my first professional hockey game last week.  I must say that I am not a fan of the sport but seeing it life and in color was amazing, even though the Penguins lost 5-1.  I also read a great quote last week “The gambling known as business looks with great disfavor on the business known as gambling." -Ambrose Bierce.  Well it's time for day 1 all over again.

Quality vs. Quantity

Since the website was talking about style vs. substance I thought I’d talk about another important issue.  The decision between quality and quantity comes up frequently in day to day activities and I have been thinking about it with respect to Tepper and its class size recently.  This weekend is our Alumni Weekend and I am looking forward to meeting many of them and listening in on several panels including one on Hedge Funds and Private Equity.  I am a firm believer in quality over quantity and feel strongly that Tepper has made that choice and that it is the correct one. 

As I have been going through my job search this year, I have been extremely impressed with the quality of our alumni network.  I feel that this is due impart to the smaller class sizes.  Tepper students are genuinely friendly and caring before they get to school, probably a reason why admissions accepts them, during school, probably why my time here has been so rewarding, and as alumni, probably why I have such a sense of pride when speaking about Tepper.  Any successful job search involves contacting individuals in the company you are interested in and networking with them to figure if you really want to work for that company.  The same can be said for B-school applications as well, contact current students and alumni to help figure out if this is the school for you.   

Alumni are the first contact I try to make in an organization that I am interested in.  The alumni I have had the pleasure in speaking too have been responsive and unimaginably helpful.  Today I was able to speak with an alum for almost an hour during the work day!  The fact that busy individuals will spare time in their day simply to point me in the right direction is great.  These experiences create a type of virtuous circle that I will be sure to carry on with the next generations of Tepper students.  I could ramble on about a plethora of similar situations but I have my final Game board meeting tonight so I need to run.

Confidence

After speaking with a few of my first year classmates about how they should conduct their internship search, a few common themes kept occurring.  The first was that the people actively involved within the Tepper community ended up with some of the most interesting internships.  Going along with that theme, the people actively involved were able to strengthen their leadership skills. 

I made a concerted effort to take on several leadership positions within the school and have gained a great deal of confidence in my abilities over the past year plus as a result.  Prior to B-school I hadn’t had the opportunity to present in front of large groups of people and like many people, I didn’t particular want to.  I overcame that issue very quickly and have had numerous opportunities to present in front of crowds ranging from 50-200 plus people.  Practice definitely makes perfect and being able to practice in a controlled environment takes away a lot of the anxiety. 

Having participated in several inter-MBA events and collaborating with MBA’s from all across the world, I’ve also come to appreciate just how valuable the coursework and learning environment in general is at Tepper.  Whether I am presenting in class or to a C-level executive I am confident that the analysis I have done is top notch and I can back up any conclusion I’ve reached.  This is extremely important when challenging conventional wisdom.  Tepper students are confident but not cocky and that distinction really helps the view of our program from a recruitment prospective.  When I go into new situations I don’t look to provide canned answers.  I look to the people who know the situation first and then apply the tools I have to help add value.  I look back to myself 14 months ago and realize that I have progressed immensely because of the program and because of my commitment to challenge myself and I encourage everyone who attends B-school too really push themselves because “walking is easy when the road is flat”.