Selling IT w/Kimberly Chan

HELLO!

Johnson & Johnson is going so well! I am so grateful that I landed this internship that utilizes both Marketing and IT. I'm currently a little past my halfway mark and I finally feel like I am making a contribution to the group. My role has changed since the beginning, so I act as more of a Communication Strategist for the team. I find the best ways to showcase and market the group to other companies under the J&J umbrella. To my surprise, J&J is MUCH bigger than I thought and the services my group offers can go unheard. Thus, I have been exploring avenues of communication.

A few projects that I've been working on include writing articles for our IT portal. These news pieces keep other J&J employees up-to-date with what other departments are working on. Lots of operational companies within J&J go there to see what new technologies are out and whatnot. It's a great medium to get our name out there!

Additionally, I've been acting as a Project Liaison for the Reach brand. They have new additions in their toothbrush line and want updating to their website. My role is to communicate between the creative agency that does the artwork and global services as well as the Reach employees. So far, I've created the pricing sheet as well as the Statement of Work (Sow). An SoW basically outlines the finances, activities, and timeline of a particular project. Now I’m just waiting for that to be approved!

Last but not least, I've also been working on creating a leave behind for clients who visit our Creative Lab. The Lab has aesthetics mimicking that of a marketing or advertising agency to brand J&J's IT in a more creative way. We take clients in here to have brainstorming sessions of how our group can help theirs. Areas of the Lab also showcase potential IT and Digital capabilities we have, website development, mobile application development, e-commerce and augmented reality. So this leave behind I'm creating has to capture the 'creative' aspect of IT. My ideas include creating a recycled notebook which has a few opaque pages in the background to feature part of the portfolio. This way, the parts of our portfolio will be staying with the client at all times (assuming they use the notebook). This unobtrusive advertising concept is the main sell for my pitch. I will be presenting my idea to the Director next week! Wish me luck!

Stay tuned to my next post!

Best,

Kim

Wall Street Power Hour w/ Jay Kapoor

Hey Everyone,

Things have finally slowed down a little bit - both of the deals I was on are finished and I'm on to new things and working on an entirely new deal.

This seems like a good time to talk about how the work flows in a group such as mine and the day-to-day work environment in a bulge bracket bank. The team, like most enterprises, is a hierarchy where Analysts – recent college graduates i.e. the bottom of the food chain - are accountable to their Associates, who report to Directors or Executive Directors who work under their respective Managing Director. As one climbs through the ranks, the job becomes more client relationship oriented and in a product group such as mine - MDs and EDs tend to have 2 or 3 specific industry sub-sectors that they attend to.

An MD's job is to generate ideas for their clients in, say for example, the construction equipment sector. As we are focused on High Yield, these ideas generally come from the sector. Their compensation is also based on their P&L (profit and loss), meaning, how much did your deals net the bank and how much did they cost. The higher ther P&L the better the bonus -- in that way banking truly is a meritocracy.

An MD or ED will target a client to "pitch" an idea and will request the deal team (an MD, ED or D, Assoc & Analyst) to help prepare a presentation with highlights on an opportunity for the client. We also fill it with facts about how our bank is the best and better than all the other banks.

The ED or D quarterbacks the process, setting up meetings with the client or clients and oversees the creation of the (notorious) Pitch Book materials that he/she will use to "win" business. The associate and analyst(s) put together the materials used in the Pitch which uses the full extent of your MSOffice skill set.

If the team wins the Pitch, we get "mandated" to work on the deal, and the process starts all over again -- marching orders come from the top and the analysts serve as infantry to carry them out. Even so, the process is not as bureaucratic as I would have expected and is often pretty collaborative up and down the chain of command, i.e. your MDs actually take the time to listen to your suggestions.

The analyst work culture is definitely focused on learning and MDs, EDs and Directors are happy to explain things to you because they know it is in their best interest for you to the most efficient at their job. One caveat -- if you need to ask a question, ask it but make sure you really listen to the answer. Listening attentively is the hallmark of a good analyst and asking questions just for the sake of asking questions wastes both your time and the other person's.

Also important is to always take pen, paper and calculator with you when you go to any meeting and take extremely diligent notes. Once, my deal team was asked to recall how many times oversubscribed a debt offering was, from a phone call that was two days earlier. I was the only one who remembered to write it down -- I didn't know that it was important at the time but ended up being very useful later. Also became a good way to show attention to detail - which is absolutely key in IBanking. As my associate wisely said – “there is so such thing as an almost right number."

Lastly, for those of you with a little reading time this summer and want to get some more information about how Banking is and was - here is some stuff from my reading list

1) "Monkey Business" by John Rolfe and Peter Troob

-- Famous account of Analysts at DLJ in the 90's. A little outdated, still very informative and ridiculously funny. Might scare some away from banking but still, a really honest and good read.

2) "The Accidental Investment Banker" by Johnathan A. Knee

-- Monkey Business for the upper level exectuive. John Knee's narrative features a lot more than just his personal experiences climbing the ladder at Goldman and Morgan Stanley. It also has some good history on the golden age of banking and where it has gone. Highly Recommended.

Hope everyone is having a good summer!

Jay Kapoor

New Team Member

Hey guys! I hope your summers are all going well. We've recently added a new team member to expand the Blog's offerings. In addition to BK's Consulting, Jay's Finance, and Kim's IT experiences, we're proud to introduce to you Jackie, who will clue you in to some of her marketing experiences. Enjoy!

Hello all!

My name is Jackie Zhang, a Business Administration major (class of 2011) in Tepper tracking in General Management with a focus on Marketing and Manufacturing, Management and Consulting. This summer, I'm working in none other than Pittsburgh, PA, with USG Insurance as part of their marketing department, innovations.

As one of five interns in the program, I work on projects both marketing internally for USG, as well as for other companies in the service industry. While our work is mainly separate and on a variety of different projects that are given to us (ranging from creating advertising campaigns for our clients to redesigning internal materials), we often come together to work on larger projects, or to collaborate on parts requiring brainstorming. In the upcoming weeks, it is also an intern project to research, create and present a complete proposal to higher execs.

While working in insurance may not have been anyone's first choice in career as a kid (it certainly wasn't mine), it's actually quite interesting what you can learn from it. Since basically all industries and individuals need insurance, we learn a lot about various industries because we have to cover their basic activities. Additionally, as part of the marketing team, I have a say in every part of the new service creation process--in contrast to marketing for physical products, it's definitely more interesting and challenging to think of innovative methods of marketing the intangible.

Recently, my main projects have focused on doing thorough market research on areas of business that we plan on moving into, editing and creating proposals for the insurance and financial services software developed by our IT department, and designing marketing materials and advertising for external clients, as well as our own insurance agents. Our work environment is pretty casual (in stark contrast to the underwriting agent work area outside our office)--we play music, go out to lunches, and sit on green chairs.

The only real downfall of the internship so far is the long commute: living in the same house from the school year that neighbors the CMU campus, it's an awfully long drive to get to the Southpointe business park (especially hellish during rush hour back through the Fort Pitt tunnel!). Otherwise, living in Pittsburgh over the summer is surprisingly pleasant with more sunshine than you'd ever see during the school year (and a lot less stress in the air).

-Jackie Z

The Lay of the Internship Land

Hey readers! Welcome back for another update on the Tepper Bloggers. All three have progressed nicely in their internships and are eager to share their experiences with you. We're happy to announce that we have a fourth blogger, Jackie Zhang, who will be joining us starting with our next post. Jackie is a Marketing Intern here in Pittsburgh and should round out our team nicely along with Kim's IT, Jay's Finance, and BK's Consulting experiences. I hope you enjoy and learn from this post and you'll be hearing from us again soon.

Hello everyone!

A few weeks have passed and I'm slowly getting assimilated with the work culture at Johnson & Johnson. I must say, it's taking me awhile. I feel like I just got here and yet it's been 4 weeks already! My impressions of the company are overall positive. I love that it's a big corporation full of people from diverse backgrounds and new things to learn. Everyone here has a story of their own and SO much to offer. They are so helpful and friendly, I literally can ask anyone anything and I won't feel dumb.

Lately I've been thinking about balancing work and social life. It's a toughy during the week. It seems like I have no time for myself. I get up around 7am, get to work around 8:30am and leave around 5pm, get home at 5:45pm. Settle, cook dinner, and it's 8:30pm already! Dilly dally for a bit and it's time for bed. The whole cycle begins again. My body is slowly transforming to just fat and bones because I never exercise. It's quite sad. The most exercise I get is my walk to the bathroom at work. I need to figure work-life balance. Suggestions?

Till next time! Have a good one!

-Kim

Hi Guys,

Things have gotten a lot busier over the last few days which means the nights and weekends have started getting longer and longer. Before I get into my personal experience in the Leveraged Finance group these past few weeks, I wanted to offer a brief primer on the Investment Banking Division and my specific group if to give you some idea as to how my internship is structured.

Groups in the Investment Banking Division are classified as either industry groups or products groups and unlike most Sales & Trading Internships, which rotate you through 3 desks over the course of 9 weeks (after a week of training) we spend our entire internship in one group. Industry groups are responsible for covering a particular sector, such as Technology, Media, Power & Utilities or Real Estate, etc. They manage relations with corporate clients and get specific expertise on their industry over a wide range of deals, be that M&A. Equity/Debt Offerings or Restructuring. On the other hand, the Product groups focus on one specific deal type, such as Mergers or Leveraged Finance and your deals range over all the different sectors but you become an expert in that one product.

Leveraged Finance is a product group and focuses on High-Yield Debt financed deals. These range from leveraged bond and loan origination to refinancing a company's bank debt (which is exactly what it sounds like -- you take out a new loan with the sole purpose of paying off the old one, generally to get a better rate or for strategic reasons). We also spend a good deal of focus on Leveraged Buyout (LBO) opportunities.

Going off the principle in Finance that greater risk must show greater returns; high yield debt is corporate debt that is rated below investment grade by ratings agencies (Moody's, Fitch, S&P) and offers percentage returns that are much greater than the High-Grade AAA rated bonds of blue chip companies. A Leveraged Buyout, therefore, is where a Private Equity investor will buy up full stake in a public company in order to take it private. The investor then makes changes to the company structure/operations/assets/strategy and soon after takes it public once again to reap the financial benefits. The assets of the target company are used as collateral for the acquisition --- creating the need for high-yield debt (reflecting the higher risk of an LBO) as a vehicle for potential investors who provide financing for the deal.

After the first week of training with the entire intern class, our joint Financial Sponsors/Leveraged Finance (FS/LF) intern class of 14 had another week of in-depth high-yield debt training, led by Analysts on up to Managing Directors in the FS/LF team. We covered topics from Debt Covenants (the legal documents surrounding the bond or loans we offer) to different Bank Loan and Bond options we offer to the basics of Bond Math. Now that we are done with both training regimens we are officially part of the FS/LF team. We spend most of our time helping our Analysts/Associates on the deals we get assigned to.

These include among other things, making Debt Comps (a "Comparable Companies" analysis - focusing on debt ratios of the company like Total Debt/EBITDA), which are useful when pitching a company's characteristics against their competitors to potential investors. We've also been building "Quick & Dirty" models (starting at the Income Statement and working down to a projection of EBITDA and Free Cash Flows over the next 5 - 10 years) in preparation for building the financial projection models we use to price and justify the bank lending/originating $XYZ Million of leveraged loan/bonds to/for a company or Financial sponsor. When people say banking gives you "modeling experience" -- this is actually what they are talking about.

Phew.... that was a lot of information condensed into a very quick breakdown. It is actually amazing to think back to less than a month ago when all this felt like a foreign language - working through it day-in-day-out is starting to make this second nature. If any of this is unclear or you are interested in learning a little more, feel free to reach out to me and I'll be happy to share more.

Hope everyone had a great Fourth of July,

Jay Kapoor

Hey Everybody!

I hope everyone is having a great summer. I am certainly having a very busy one. In case you guys don't remember, I am interning at Accenture as part of the Business Process Outsourcing group. I have to admit I had no idea what my project was about and what kinds of topics that I will be dealing with. I am just starting to get an idea of what my role is and how I can fit into the group. I think this is what everybody goes through in the beginning; you just feel overwhelmed and lost. You are not sure what you are supposed to be doing and you don't know what is expected of you. But I learned the best way to deal with that is to go out and reach out to people around you and ask for help. There are plenty of people willing to help and walk you through the process and help you successfully fit into the organization. I've already met somebody besides my supervisor who is willing to mentor and guide me during and beyond the internship period. So, when you are starting your internship, make sure to reach out to people and meet people who are willing to teach and nurture you.

In terms of the project, my boss wants me to experience different steps of procurement from finding clients to finding suppliers. He sends me a lot of materials to read over and takes me to different meetings so I can be acquainted with what actually happens in the 'Procurement' world. Also, he recently gave me a semester long project for which I have to give a presentation to about 40 people upon completion. I hope all the presentation skills I learned at Tepper will pay off, haha.

In the next post, I will try to share something more specific about the project I am doing and about my daily tasks. Until then, PZ!

BK