develop your commerical awareness - marc pinter-krainer

Commercial AwarenessCommercial AwarenessDemonstrate Your Understanding of the Business WorldDemonstrate Your Understanding of the Business World

Marc Pinter-Krainer BSc PhDSussex Alumnus (MAPS 1990-1993)

Organised by the Careers and Employability CentreUniversity of Sussex

3 February 2011

Commercial AwarenessCommercial Awareness3 February 20113 February 2011

Marc Pinter-KrainerMarc Pinter-Krainer Slide Slide 22

Why Commercial Awareness?Why Commercial Awareness?

This skill will significantly boost your This skill will significantly boost your chances for a successful job interviewchances for a successful job interview

Impress recruitersImpress recruiters

Differentiate yourself from other Differentiate yourself from other candidatescandidates



What is Commercial Awareness?What is Commercial Awareness?

View situations from a commercial or View situations from a commercial or business perspectivebusiness perspective

Thought or consideration for the Thought or consideration for the business environmentbusiness environment

Understanding business issuesUnderstanding business issues– What makes a business successful?What makes a business successful?– How does it fit into its market place?How does it fit into its market place?– Who are the customers / suppliers?Who are the customers / suppliers?– How does it make money?How does it make money?– <…><…>



Why is Commercial Awareness a Why is Commercial Awareness a sought-after quality?sought-after quality?

Understand key functions & structure Understand key functions & structure of an organisation more readilyof an organisation more readily

Add value to a business by Add value to a business by recognising, utilising and creating recognising, utilising and creating opportunitiesopportunities

Quickly become a valuable asset to a Quickly become a valuable asset to a business by taking initiatives which business by taking initiatives which are relevant to it and its successare relevant to it and its success



How does Commercial Awareness help How does Commercial Awareness help in the job interview process?in the job interview process?

Seen as key skill which is desirableSeen as key skill which is desirable(but relatively scarce amongst graduates)(but relatively scarce amongst graduates)

Positive differentiation from other candidatesPositive differentiation from other candidates

Demonstrates potential value you can add to Demonstrates potential value you can add to the business more readilythe business more readily

Improves discussion opportunities in an Improves discussion opportunities in an interviewinterview

Displays your interest in, and understanding Displays your interest in, and understanding of, the businessof, the business



Ways to improve Commercial Ways to improve Commercial AwarenessAwareness

Read the press / news / business Read the press / news / business sectionssections

Understand financial information and Understand financial information and news about a business news about a business – E.g. Marks & Spencer issue profit warningE.g. Marks & Spencer issue profit warning– What does that mean?What does that mean?– What does the CEO statement imply?What does the CEO statement imply?

Look at company websitesLook at company websites– What is the nature of the business?What is the nature of the business?– How would you describe the business in How would you describe the business in

your own words?your own words?



Ways to improve Commercial Ways to improve Commercial Awareness (contd.)Awareness (contd.)

Play the “Investor” gamePlay the “Investor” game– Imagine you were to consider investing Imagine you were to consider investing

money in a businessmoney in a business

– What is the main reason for this being a What is the main reason for this being a potentially good investment?potentially good investment?

Profits?Profits?

Growth?Growth?

<…><…>

– What are the risks and potential What are the risks and potential downside?downside?



Exercise: The Investor GameExercise: The Investor Game

You have the opportunity to invest in You have the opportunity to invest in a company you knowa company you know

Which one would you choose?Which one would you choose?

Describe its business in one brief Describe its business in one brief sentence sentence

What are the top three reasons for What are the top three reasons for your choice?your choice?

Identify risks for your investmentIdentify risks for your investment



Take note:Take note:

To play the investor game, you ask questions To play the investor game, you ask questions about the businessabout the business

You gain Commercial AwarenessYou gain Commercial Awareness

Play the investor game as part of your Play the investor game as part of your preparation for a job interviewpreparation for a job interview

You will consider a significant investment – You will consider a significant investment – your time!your time!

Note down your findingsNote down your findings

Take note of any questions about the Take note of any questions about the businessbusiness




SWOT Analysis of a businessSWOT Analysis of a business

Strengths Weaknesses

ThreatsOpportunities



Exercise: SWOT AnalysisExercise: SWOT Analysis

For the business nominated for your For the business nominated for your investment earlier, carry out a SWOT analysisinvestment earlier, carry out a SWOT analysis

Identify Identify internalinternal factors: factors:– StrengthsStrengths– WeaknessesWeaknesses

Identify Identify externalexternal factors: factors:– OpportunitiesOpportunities– ThreatsThreats

In each case, what actions can the business In each case, what actions can the business take?take?




Understand business financialsUnderstand business financials– Published as part of annual reportPublished as part of annual report– Available for download from PLC websitesAvailable for download from PLC websites

Top line revenues (sales)Top line revenues (sales)

Fixed and variable costsFixed and variable costs

Profit and lossProfit and loss

Balance sheetBalance sheet

DividendsDividends

Ask “Why?”Ask “Why?”



Exercise: Business FinancialsExercise: Business Financials

Example: Annual Results,Example: Annual Results,Marks & SpencerMarks & Spencer– Group sales of £9bn, increase of 5.1%Group sales of £9bn, increase of 5.1%– Profit of £1bn, increase of 4.3%Profit of £1bn, increase of 4.3%– Strong balance sheet:Strong balance sheet:

Total assets £7bnTotal assets £7bn

Total liabilities £5bnTotal liabilities £5bn

Net assets £2bnNet assets £2bn

– Return to shareholders of £1bn in Return to shareholders of £1bn in dividendsdividends



Latest News Flash …Latest News Flash …




Understand an organisation’sUnderstand an organisation’sSupply Chain:Supply Chain:



Commercial AwarenessCommercial AwarenessSummarySummary

Commercial Awareness is a valuable Commercial Awareness is a valuable skill which will help fast-track your skill which will help fast-track your professional careerprofessional career

Commercial Awareness is about Commercial Awareness is about taking a view from the business taking a view from the business perspectiveperspective

Follow the news, play the investor Follow the news, play the investor game, carry out SWOT analysis and game, carry out SWOT analysis and consider the supply chainconsider the supply chain



Questions?Questions?

Thank you for your interest and Thank you for your interest and attendanceattendance

Commercial Awareness will help Commercial Awareness will help create an understanding of a create an understanding of a business, and boost your confidencebusiness, and boost your confidence

Enjoy your head start!Enjoy your head start!

develop your commerical awareness - marc pinter-krainer

Career

business successful

business environment

business issues

commercial awareness

business financials

business perspective

press news business

investor game