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GLOBALIZATION
WANDERLUST 2 | Quarterly Profit | November 2014
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Contents
5 LETTER FROM THE EDITOR 6 LIVING THE DREAM: JAMES POLITESKI
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12 WORLD WIDE WORK 14 INSIGHTS ON WORKING ABROAD WITH BENSON TSANG 24 TEN THOUSAND MILE CLASSROOM 25 DEGROOTE BIZX PROGRAM 26 WANDERLUST 30 DREAM DESTINATION 33 GET LOST 35 HOW DO YOU ‘SELL’ AN ACADEMIC EXCHANGE EXPERIENCE?
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36 PART I - GRADUATES: WHERE ARE THEY NOW OLIVIA STILLE 38 PART II - GRADUATES: WHERE ARE THEY NOW CHRIS ROSARIO 40 UP CLOSE WITH PROFESSOR COSSA 46 WHAT’S HAPPENING ON THE PRICE OF OIL? 50 TAX WATCHDOGS ON THE HUNT 52 THE ALIBABA HYPE 56 THE EUROZONE CRISIS 58 LOST IN TRANSLATION: INTERNATIONAL MARKETING BLUNDERS 60 MCMASTER DECA CASE COMPETITION 62 FASHION WEEK: WHO CARES? 65 A STEP-BY-STEP GUIDE TO BEING GLOBALLY AWARE 67 GET INFORMED OUTSIDE THE CLASSROOM 68 CENTRE FOR BUSINESS CAREER DEVELOPMENT: WINTER WORKSHOPS
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Quarterly Profit
Letter from the Editor
November 2014 | Volume 2, Issue 2
Wow! I cannot believe that we’re more than halfway into the semester already! The days have gone by so quickly and it’s unfathomable to think that we will soon approach the end of the term as the dreadful days of exam preparation and last minute projects and assignments loom ahead. Since this will be our last issue for the semester, I’d like to take a moment to wish each and every one of you the best as you complete the remainder of the semester! May the odds be ever in your favor!
EDITOR-IN-CHIEF Joseph Cruz (‘16) MANAGING EDITORS Alexander Karpenko (‘15) Julia Dinh (‘16) CREATIVE DIRECTOR Sajid Ali (‘16) DESIGNERS Anduena Sertolli (‘18) Florence Pau (‘17) Sasha Srinivas (‘18) Victoria Mangialardi (‘18) Xueqin Lin (‘18) WRITERS Imran Dhalla (‘16) Krish Puri (‘17) Lauren Zylik (‘17) Rachel Mostert (‘15) Taylor Browne (‘17) Tara Khudairi (‘17) PHOTOJOURNALIST Cory Bryck (‘16) MARKETING DIRECTOR Marco Coccari (‘17) MARKETING ASSOCIATE Rebecca Snarry (‘16) DIRECTOR OF OPERATIONS Allan Chan (‘17) Contact us at: magazine@degrootecommerce.ca Visit us online: http://issuu.com/quarterlyprofit DISCLAIMER // All photos or logos used without sourcing are used in compliance with the Fair Use Law - for not-for-profit educational purposes. In no way do we assume ownership or affiliation with any images seen. If there are any questions or concerns, please contact us at: magazine@degrootecommerce.ca http://copyright.mcmaster.ca/Fair_Dealing
It has been quite a momentous past few months for the magazine. Our first issue that we released back in September was warmly welcomed by the DeGroote community garnering almost 15,000 impressions in its first week! On top of that, we’ve also welcomed new additions to the QP team, along with the growing number of freelancers who are all very eager to contribute to the magazine in more ways than one! I am a witness of the ever growing interest that this publication continues to receive from our readers, as well as the continuous support from our very own DeGroote faculty and sponsors. With this in mind, I am beyond ecstatic as we move forward to another semester and I hope that you will continue to join us in our journey as a student publication. The premise for our second issue revolves around the theme of globalization and the world of International Business. As business students in a society that is increasingly becoming more globalized and a world that is increasingly becoming smaller, having a global mindset is more important than ever. To be able to recognize the value of embracing cultural differences both on an individual and corporate level has become a vital component of the modern business world. To say that the world is in the palm of your hands is no longer an overstatement. This issue is filled with stories and articles that will give you a glimpse of what is happening around the world. As you read through the pages, I hope that you will find yourself engrossed on every article and story. And by the end, I hope that we have inspired you to become a globally competent business leader in the highly competitive global arena. We are always open for collaboration and contribution. If you are interested in becoming a part of our journey as a student publication, or would like to share your thoughts and ideas with us, please feel free to contact us at magazine@degrootecommerce.ca. We’d love to hear from you! Cheers! Joseph Cruz, Editor-in-Chief
November 2014 | Quarterly Profit | 5
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SPECIAL FEATURE
LIVING THE DREAM:
JAMES POLITESKI INTERVIEW BY LAUREN ZYLIK
As President of Samsung Electronics Canada, James Politeski is responsible for sales and marketing of the company in areas including Mobile Communications, Consumer Electronics, Information Technology, and Home Appliances. Starting in the company as Vice President of Sales and Marketing in Samsung Electronics America, James has displayed incredible progression to his current position. James also holds a double-degree in Mechanical Engineering and Management from McMaster University. With experience working for Samsung Electronics in the United States as well as Canada, James has expertise in both international and domestic approaches to the business. His leadership focus is on creating highly effective and efficient teams and continually innovating in order to propel growth and keep a competitive edge. James is also philanthropic towards causes like the Canadian Cancer Society and The Learning Partnership.
“There’s no magic to it [success]. It’s a combination of hard work, a lot of it, and then getting results... there is no substitute for your own hard work.”
How did you get started in the had a long-time relationship with field of Sales and Marketing? the company even though I didn’t directly work for them. Samsung It goes back to my first job out of came to me ten years ago with an University, which was in Engineer- opportunity that was too good to ing. There was a bit of sales and say no to. Samsung’s such a huge marketing involved, but mostly en- growth company and I found that gineering. I learned very quickly very inspiring. So I made a switch, that I was going to have more fun joined Samsung, and now here I am! being in a job that was not pure engineering. When you figure out what What are some of the highlights you’re meant to do, it sticks. You of your role as the President of know if you’ll be in sales. You’ll Samsung Electronics Canada? know if you’ll be in finance. You’ll find within a few years of doing a The parts that are most stimulating job you don’t like what you’re real- about my role is that I get to bring ly going to do. For me it was sales people together and lead them in orand marketing. I got excited about der to grow the company. Samsung sales and marketing early on. I be- is a company full of hard workers lieve this kind of thing also comes and we invest in growth. I love leadin phases because throughout my ing people and growing the busicareer I kept going back and forth ness. But as you know, leadership is between sales and marketing jobs. not for everyone, it turns out that I But in terms of what I was going to love it! Leadership is an interesting do for my career, two years out of thing. It’s making sure you surround University was when I realized that yourself with excellent people, sales and marketing was my calling. which means hiring great people, coaching and mentoring people, How did you get started with and setting strategic vision and diSamsung Electronics Canada? rection. Everyone has a thousand ideas of things they want to do but I was actually at General Electric you have to make sure you have a before I joined Samsung. When I very clear vision on where you want was at General Electric I did a lot to go and make sure everyone is in of close work with Samsung so I’ve line with those priorities. A lot of 8 | Quarterly Profit | November 2014
the role is making sure people have what they need to get the job done based on the direction and vision we’ve set for the business. I really enjoy these parts of my job. You started in Samsung America as Vice President of Sales and Marketing in 2006 and moved up to your current role as President of Samsung Electronics Canada in 2011. How were you able to successfully move up in the company in such a short time? There’s no magic to it. It’s a combination of hard work, a lot of it, and then getting results. I work long hours but on top of that I also constantly think about things and follow–up on everything. The strength of any company comes from the strength of its team. I’ve been fortunate to be able to work with great teams. I like to assemble strong teams around me, and strong teams produce great results and they make you look good. I’m very focused on people. I’ve been doing this for a long time, not just here. It accelerates your career along. At the end of the day you hire great people, and you coach them, but there is no substitute for your own hard work.
How have you been able to balance work and family life? You hear a lot of people talk about work-life balance, but I think there’s a debate between whether it’s worklife balance; as in, there’s work and then there’s your life, or if work and life are intermixed. From my point of view I like to think of it as a harmonizing of your work-life and your home-life together. How do you do that? Be efficient at work and try to get the most done out of the hours that you’re there. Likewise, when you’re at home, try to turn work off and focus on your family. There will always be times when there are work demands and you have to turn work on when you’d normally turn it off. There’s times when you can turn work off when you’d normally have it on, like when you get home early on a Friday or you take an extra day vacation. Altogether, it’s making sure that the time counts wherever you are, at work and at home. The reality is that I put a lot of hours in here, so when I go home I have to make sure that the hours at home are good hours, not just going home, eating dinner, and then falling asleep on the couch. That’s not good family time. So that’s how you do it. There’s no method or magic
to it other than recognizing stress signs and trying to deal with it. It’s about choices as well. If you find yourself in a job that you don’t love then it can be very stressful. I love what I do and so if you love what you do during your work hours, you go home happier. If you hate your job, going home is nice but it’s impossible to separate your work from your personal life. Is there a specific accomplishment that you’re most proud of? About eight years ago I went to the U.S. with Samsung, they asked me to go down there and lead their home appliance business. So I went down there as a Canadian going to the U.S. with a very small team and was given the mandate and freedom to do what I needed to do to grow the business and the team. I spent five years commuting back and forth between Canada and the U.S., which was very difficult on worklife balance, but I’m really proud of the results we achieved. We grew the business ten times in those five years! We also built an amazing team of people that had a great spirit and culture. So that experience will always be one accomplishment that I remember.
As President of Samsung Electronics Canada, where do you see Samsung Canada headed in the near future? Samsung is a very innovative and growth-focused company. It’s a very competitive market and we’re going to continue to push forward in the business and continue to innovate products like phones, televisions, and home appliances. Our Information Technology business is also a very big focus for us now, with Business-to-Business enterprise-type products so we’re going to continue to focus on that. The company is planning to get into new business areas like renewable energy, health and medical equipment. It’s a very big company and it’s expanding into a variety of different areas. We do recognize that it’s a tough and competitive market. We have to keep working hard, innovating, and changing because the only way to survive in this business is to be agile and able to change everything. Looking back to when you were a student at McMaster, what would you consider as your greatest learning experience that has stuck with you over the years? November 2014 | Quarterly Profit | 9
I have a famous story that I tell this to every student who will listen… Going to University is a liberating thing. Your parents aren’t around and no one’s there to tell you what to do, so you have a lot of freedom. In my early years at McMaster I really enjoyed that freedom…maybe a little too much. I wasn’t applying myself as much as I should have. Unfortunately there are lots of students that fall into that trap. On a fall day in my third year, the
Dean of Engineering called me into his office. I was confused and had no idea why I was going there. The Dean said to me, “Maybe you should choose to do something else.” The Dean was actually trying to throw me out of engineering. I was in the Engineering Management program, so I was doing both commerce and engineering courses. The Dean told me, “This is a serious program, and we want serious students in it. You are not a serious student.” This
QP writer Lauren Zylik (left) with James Politeski (right) at the Samsung Electronics Canada office in Mississauga 10 | Quarterly Profit | November 2014
was a huge slap in my face and I was shocked. If you can imagine someone saying that to you, that’s the moment that you realize that you’re about to have screwed up the greatest opportunity of your life of being able to go to University in a double-degree program. I watched my entire life pass before my eyes. I would not leave his office. I stayed in his office for an hour negotiating, crying, and begging but I would not move. By the end of that hour I had convinced the Dean to let me stay. He did say, “If I ever hear your name again, other than for an award, you’re out.” That day was the most eye-opening reminder that you are given opportunities but it’s up to you to seize them and work hard. From that point onward my university career had totally changed. I worked harder and I was never back in the Dean’s office again. I was focused on school and that work ethic has continued to push me right to this very day. So work hard and don’t blow it! Unfortunately a lot of people at that moment in the Dean’s office would have said, “Oh darn, I guess I’m out,” but I fought for it. The Dean had no idea I was going to negotiate and try to keep myself alive. When I left the office I felt like I had literally just dodged a bullet. I was shaking and was a mess for a day afterwards. You have to fight for what you love. It was uncomfortable and painful and humiliating, but such a valuable learning experience.
What is the best advice that you can give to a Commerce student at McMaster? Never quit and keep trying. Know where you want to go and work hard to get there. In University, a lot of students will go into programs they don’t like or they’re struggling so they change. And that’s ok. But once you’re out of school life, it’s not that easy. You’re going to have to work really hard and stick with things you don’t like. If you keep changing because you don’t like it, you won’t pick up any experience. When employers look at resumes where it changes every six months, that’s not a good sign to them. You have to stick with some things and you have to really try. When I went to school for Engineering and Commerce, I got into the program because I was good at math and science and I thought it would be cool. I actually didn’t know how amazing the program would end up being and how powerful it is to have both commerce and engineering degrees. I was just a young punk. Even though it was brutal, I still stuck with it. I had long days every day because I had to do engineering subjects and then the core commerce subjects with almost no electives. While everybody else I knew didn’t have to be in class till 10:30 and only had a few hours of class a day, I had class everyday from 8-5. It was like a full time job. And even though I only worked in engineering for two years out of university, the
most amazing thing is that I stuck with it, I owned it, and ultimately realized in the end I don’t really want to be a pure engineer. That did not change the amazing value of the education. I’ve gone on to use my engineering degree just as problem solving in other kinds of business and it’s been fantastic. I wouldn’t go back and change anything about my education, other than I would’ve worked harder earlier and avoided that whole incident with the Dean. Then again, sometimes you don’t know when you need to work harder and you need that wake up call. For me it was like an extreme personality change. Anything less harsh probably wouldn’t have worked. You don’t know what career you will be in fifteen years from now, so even if commerce isn’t for you in the end it’s still a great education and you’re learning a lot of different subjects that work in a lot of areas that are applicable to life. The paths are multiple. Stick to the program, do well, own it, learn from it, and work hard. If you lose the opportunity because you fail out or if they throw you out because you’re not working hard it would be such a disappointment. Especially if you know in your heart that you could have done better. The times you chose your social life over schoolwork all add up. So if you’re going to switch out of a program, make sure in your own heart that you’ve done your best, because there’s nothing worse than knowing that you didn’t do your best. The shock
that got me was that I knew back then that I had the brains to do it, so being asked to leave was kind of offensive. I screwed it up. So work hard and don’t let your lack of effort be the reason that you don’t get to where you want to go. Do you have a personal mantra or words to live by that you would like to share? My favorite saying for the last several years has been, “Living the dream.” People say, “Hey James. How are you?” and I always respond, “Living the dream.” It goes hand-in-hand with optimism. I’m a chronically optimistic person. Even in the toughest times and when everything seems impossible I’m always figuring a way out and trying to be positive. Always looking on the bright side. When you’re optimistic, people around you become optimistic and you can inspire people. You can’t inspire anyone if you’re not optimistic, it just doesn’t work. People ask, “What do you mean? Are you rich?” and so ‘living the dream’ is my way of saying, “No, I’m just happy.” ple. You can’t inspire anyone if you’re not optimistic, it just doesn’t work. People ask, “What do you mean? Are you rich?” and so ‘living the dream’ is my way of saying, “No, I’m just happy.”
November 2014 | Quarterly Profit | 11
WORLD WIDE WO How Canada fares among other countries at work and off from work
WORDS BY JULIA DINH One thing that is common among people, regardless of location, is the propensity to work. Whether it is to provide for a family, contribute one’s skills to support society, spend time on meaningful endeavours, or achieve financial security, working is a component of our everyday lifestyles. Of course, on the other side of the coin to work is leisure. To increase productivity, there should be a balance of work and time off, allowing workers to be reinvigorated and more efficient during the work hours. Though these seem like simple concepts, the perception of work and time off can vary greatly between countries. See how Canada fares in the global workplace among its fellow nation members of the Organisation for Economic Co-operation and Development (OECD), in the categories of Average Hours Worked, and Paid Vacation and Paid Holidays. Canada places roughly in the middle among the 34 OECD countries, with average hours worked below the
Who Works the Longest Hours?
Data source: OECD Factbook, 2014
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OECD average. The shortest working hours are found in northern European countries, notably the Netherlands, which works about 20% less hours than Canadians. A number of factors come into play in explaining the range in hours worked around the world. While Mexico, South Korea, Greece and Chile top the list of longest average hours worked, working harder does not necessarily mean working smarter. Longer working hours can be linked to lower productivity per hour as workers work longer in trying to achieve a minimum level of output or a minimum level of wages, though not in an optimally productive manner. On the other hand, nine out of the ten countries with lower average hours worked have the highest GDP per capita. This can be attributed to technological advancements in industry which increase productivity performance and reduce hours worked. In Western countries, including Canada, the decline in hours worked over the years is the result of an increasing part-time workforce that has surpassed the full-time workforce. As another factor, the
ORK Who Receives the Most Paid Time Off?
Data source: Center for Economic and Policy Research (CEPR), 2013
difference in hours worked between countries can also be dependent on a country’s allowance of paid leave for workers, which is illustrated in the next category.
cation nation”,) are not legally required to provide paid time off to workers. Almost one in four Americans has no paid vacation and no paid holidays. Looking from this aspect at least, it seems that we are on the better Among the OECD countries, Canada ranks third last in side of the border. Although some of us working Canathe amount of paid vacation time guaranteed to work- dians dream of taking a 6-month vacation twice a year, ers. Of the countries in this study, Canada and Germany we will have to settle for those two weeks paid for now. are the two which determine holidays at the regional level. In particular, Canada offers at least five days in It is good practice to become aware of the social coneach province for paid holidays and also guarantees at ditions across the globe, especially as future leaders in least two weeks paid vacation—except Saskatchewan, an increasingly globalized world. While work may seem which offers three weeks of paid vacation. Workers in to take up a large portion of our lives, through keeping France, the United Kingdom, Austria and the Scandina- productive we ensure that society functions sustainably vian countries of Norway, Denmark, Finland and Swe- as well as allow ourselves to appreciate our time off from den likely have little to complain about as these coun- work even more. tries fare quite well in this category, with workers who are entitled to, more or less, a month’s worth of paid vacation. As for the last place holder: employers in the United States (also notoriously known as the “no-vaNovember 2014 | Quarterly Profit | 13
Benson Tsang CFO and Chief Accounting Officer of ATA Inc. (Beijing, People’s Republic of China). McMaster University – DeGroote School of Business B.Com (’87) & MBA (‘88) Graduate
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ALUMNI FEATURE
INSIGHTS ON WORKING ABROAD WITH
BENSON TSANG INTERVIEW BY JULIA DINH
Benson graduated from the McMaster DeGroote B.Com program in 1987 and the MBA program in 1988, and qualified as a Canadian CA in 1991. He has over 25 years of experience in accounting, financial management and capital markets. He has held senior financial and management positions in multinational corporations and international accounting firms, and has served as a financial executive of companies listed on the New York, NASDAQ, Hong Kong, and Singapore Stock Exchanges. Some examples of these companies are Deloitte, PricewaterhouseCoopers, 3M (Imation Corp.), PCCW and Wuxi Pharmatech. He has worked in North America, Europe and Asia. In 2006, Benson served as Chief Financial Officer of Wuxi Pharmatech, a global pharmaceutical contract research company with
about 4,000 employees, and led its IPO exercise. The listing of the company stock on the New York Stock Exchange was completed in August 2007. Since then, he has been actively involved in the capital market and financial sector. Presently, Benson is the Chief Financial Officer of ATA Inc, a NASDAQ listed company. Although he spends half of his time working abroad between different countries outside of Canada, he still manages to make time for golf, family trips and catching up on TV episodes of CSI. The Quarterly Profit had the great opportunity of speaking with Benson as he reflected on his dynamic life and career as a global business professional.
Please tell us a little bit about your organization and your current role.
There are two areas. One is work-related, where there are internal communications among my colleagues, and we also have public relations companies that help proMy organization is ATA Inc. (ATAI), which is a U.S. vide us with news clippings. They will, on a daily basis, NASDAQ company. We are in the business of large- research media and newspapers, write summaries and scale computer-based testing services, and mainly fo- send them to us. cused in China at the moment. We have about 450 people – 50% at the head office in Beijing, China, and 50% When we are talking from a professional perspective, in Shanghai, China. As for my current role, my title is I do read a lot of magazines. I am a Canadian CA and CFO and I am also one of the key management mem- read the CA Magazine online. I am also a Hong Kong bers who run the company. I have been at this company CPA and read those magazines as well. For Big 4 acfor approximately 5 years. countancy firms, given the fact that I have been in the area for 27 years, I have lots of friends, they will send How did you get your start in the field of accounting/ me updates, such as trainings provided by SEC (the finance? Securities and Exchange Commission in the United States), trainings provided by the Big 4 and legal firms, I think just like every student, when you first get start- and investor relations firms. ed you really don’t know what program to take. In my case, I was a naïve, silly boy, and I picked accounting So this is the way I keep myself up-to-date in all capital because my father was working for a company as an ac- market, finance and accounting-related matters. I think countant. I noticed that he could provide for the family everybody does that, or at least they better be! and his work was pretty stable, and to me it looked like it would be simple, so I decided to give accounting a Not only do you work abroad, but your organizatry. It could be the same reason for many students. tion also operates abroad as well. ATAI has recently signed a cooperation agreement to administer University of Cambridge examinations in several countries. In addition, ATAI is publicly traded on the American NASDAQ Stock Market. How does your “If you think that you can resolve executive team generally interact and maintain relaevery single conflict you encounter, tions with clients, counterparts and shareholders in keep dreaming. If you can resolve different locations across the globe? (What are key elements in effectively coordinating operations at an the majority of the conflicts you are international level?)
facing, you are very successful, and it is doable.”
This definitely needs teamwork – it’s not possible for one person to take care of everything. As I mentioned earlier, the majority of my company’s business is in China, but the reason [why the University of CamThat’s good how you decided on a field and then bridge chose us] was about our experience in providing now you are able to find success in it and challenge examination services and also the technology we have yourself. How do you keep up to date with and pre- in developing a testing system to write examinations pare for new developments in this field? using mobile devices. Before Cambridge, Microsoft 16 | Quarterly Profit | November 2014
licenced the Dynamic Simulation Testing technology uine; we did not think too much about making a lot of ATA developed, and that was the first technology we money, we were very simple. I just wanted to give it a marketed outside of China. try; given the fact that it was an international transfer, I could come back after the 3-year term. I wanted to exSo now because of the successful roll out with Cam- plore the world and expand my horizons, and I enjoyed bridge, we are now quite aggressive going overseas. In it very much. terms of how we do it, we have a team, led by our Vice President of Business Development Overseas. We travel around the world, talk to different potential partners “If you want to go overseas and and try to close a deal and establish a relationship. We work in different locations, it’s about have a team of 4 to 5 people supporting the VP. If you are talking about shareholders and investors, it is under my umbrella. I travel around the world to see my shareholders, talk to them and maintain these relationships. Visiting international clients and partners are part of my role as well; since I travel, I may as well go to visit some of them. For local clients and partners, we do have the local team to take care of them. I cover more international relations outside of China. I enjoy the “personal touch”; I enjoy a handshake with a partner. What influenced your decision in pursuing a career abroad? I qualified as a Canadian CA in 1991, many years ago. I think just like many young professionals, once after they are qualified, they are unsure of what they want; same here. But one thing that was in my mind was—I could be wrong—I thought Canada was pretty small and not very challenging. Don’t take me wrong, I am sure that there are challenging jobs here, but I guess the opportunities were very limited. At the time, I was with a Big 4 firm (well, back then it was “Big 8”), and the good thing about multinational companies is that they are very mobile and provide international transfer opportunities.
how much you can change yourself to fit into that environment.”
How was the transition in moving your life and career to Beijing, China? It was very natural for me. In 1992, I was first transferred to Hong Kong and I continued to be with a professional firm for 5 years. After that, I continued to be in Asia and joined the multinational company 3M and was selected to be in the management training program. As a result, I got the chance to move around – I was in Amsterdam, Taipei, China and Singapore. It was wonderful; the program gave me a chance to see different departments and how they work together to generate profit.
After that, I started to build my expertise in different areas, moving on to investment-related areas. I was in the private equity area for 3 years as what we called a “company doctor”, who would be called in to help a company turnaround and restructure. It was very interesting, and strengthened my knowledge and experience. Then, I was given a chance to become the China CFO of a big corporation in Asia. Later, I moved to the pre-IPO market and helped a company complete Honestly, at that time I did not know what exactly it its IPO in the New York Stock Exchange (NYSE) in was like to work overseas. So, I figured, I was young, 2007. I retired from that company in March 2009. After why don’t I give it a try? I had no idea of what I was staying home for a year, my wife kicked me out and getting into, and students like me were a bit more gen- said “go do something, with money or no money”, so I November 2014 | Quarterly Profit | 17
“When you try to have global awareness, you need to understand that the world is flat But when you combine them and hear all the facts, you can make your own judgmen your business or not.” started working again. I joined ATAI 5 years ago, first starting as more like a consultant, but eventually, I decided to become its CFO.
when taxis purposely take a longer route to overcharge you. But, you know, that’s the way you learn.
If you think that you can resolve every single conflict So, to me, moving to different places is natural. Like you encounter, keep dreaming. If you can resolve the when I moved back to Canada—after 20 years of living majority of the conflicts you are facing, you are very abroad, my wife wanted to come back to spend more successful, and it is doable. time with her parents [in Canada]. When she wanted to come back, I said, “No problem, let’s move”. Whatev- How do you balance your work life and family life er you do, the most important thing is that the family when spending time between Toronto and Beijing? should be together. If the family members are not to- I spend about 50% of my time outside Canada. My gether, that could create a lot of problems. Wherever I wife is very happy because I used to travel 75% of the go, my wife and kids move with me. time. But when I’m away—back in the old days, when we didn’t have all these mobile devices, I had a fax Were there any challenges, such as culture or lan- machine at home. Every night I would draw a picture guage, that you had to overcome? and send it to my kids. Every night my kids would be waiting for that picture, and then they would send me Of course. If you work in different places, different back some pictures. I’m a family man. I do believe that countries, there are the cultural differences, the lan- family is very important and it gives me the motivation guage barriers, and all people-related conflicts. In dif- to work harder for them. Once technology improved, I ferent countries, there are different philosophies. You could call them, every other night at least. During the just have to get used to it, but you want to get things BlackBerry smartphone time, about 8 years ago, everydone. There are different ways of living in different one then started using email. And now there’s WeChat, parts of the world. In North America, we drink Tim WhatsApp, Facebook; you name it. So, keeping up Hortons coffee. In some parts of China, they drink with my family members is not an issue at all. At the white wine. Their beliefs may be contradicting to what end of the day, I think the most important factor is the you believe—how do you deal with this? The chal- individual; whether he or she is willing to make the eflenges are all related to people. fort to keep in contact. If you are willing, it’s easy—it’s a simple phone call, text message, or photo. Language is relatively easier to tackle. Try to find a place where you have the ability to learn its language, How does business and your work environment difas it would be a lot easier. I came to Canada when I fer between each location? was 15, and after 11 years in North America, my Cantonese got a bit rusty. When I first went to Hong Kong, One thing you have to remember is that every location it took me about 9 months to catch up on my vocabu- is different. If you want to change it to the way you lary. When I moved to China it was a bit of a challenge want it, keep dreaming. If you want to go overseas and because I didn’t speak Mandarin. My employer at that work in different locations, it’s about how much you time provided more than 50 hours of one-on-one lan- can change yourself to fit into that environment. Many guage training for me, but I still couldn’t get it. But people would say “I want to go to China or to Singait’s different when you live there on a daily basis—you pore and then I will change the way they do things”— have to eat, get to where you need to go, mingle with they would never be successful. In fact, whenever you the locals, and you might fall into a lot of scams, like go overseas, you always have to find a way to fit into 18 | Quarterly Profit | November 2014
t and that no single news source is unbiased. nt, and then consider whether it would affect
the local community. If you want to change the way they approach business-related issues the way you would like to; that is doable. But if you want to change the way they behave—for example, I’m in the northern part of China where they drink wine like water and you want to change it—it’s not going to happen, but you don’t want to behave like them too. It doesn’t matter where you go; we are all residents of the Earth, so we want to make sure that there are mutual respect. You respect I drink coffee, I respect you drink wine. At the beginning of the meeting, I would say “okay, drink, but if you drink, you are to ensure that you won’t affect the progress of the meeting; we want to get it done”. When people work overseas, you just have to try to find a way around it. One way to do this is to state all the rules and facts upfront, and tell people “it’s not because I don’t respect you”. In my case, it works about 85% of the time; in some cases it won’t work out, but sorry, I can’t change anything.
ing to come back and provide you with their insights. When you walk out of the doors here, it’s just a start. If you receive better training here, you will become a much faster learner and navigate yourself better out in the real world. I highly encourage students, if possible, that they take summer jobs, with or without pay. The reason for that is once you move out to the commercial world and move up the corporate ladder, all issues are people-related. For example, “A is not happy with B, and B is talking about back-stabbing C”—it’s all people-related. If students can try to get a sense of the real world sooner, it will help them in studying and better understanding why the textbook describes these concepts.
For MBA students, I strongly recommend them not go for their MBA right after undergraduate studies. It is best if they go out and work for a couple of years, get yelled at a few times, then try to deal with some real conflicts, and then come back to study—this way, the What were you able to apply to your career from MBA program will be a lot more meaningful and benskills that you developed during your time at DeG- eficial to them. I was the case where, after my underroote? (How has DeGroote helped you in the career graduate program, I went straight to the Master’s propath you have chosen?) gram and got it done in 8 months. The professors were very good, but personally, I didn’t think I got too much Back in about 1987 to 1988, the programs here were out of it because I didn’t have the experience to click. very different, and they have evolved since then. Back So, I highly suggest students to take a year or two to then, I was like a blank piece of paper and I was gain- work, and then go back to MBA studies. ing textbook knowledge. During my 3rd year and 4th year, I took courses which included cases, class discus- You have been a part of many international compasions and group projects. These taught me about human nies and have worked in many locations around the conflicts and how to deal with disagreements; and how world, including North America, Europe and Asia. to do presentations, convince others of your ideas and How have you increased your global awareness? convey your message—these are all valuable things that are learned. Firstly, I think the world is flat. In this day and age, everywhere is very globalized and international—thanks I feel that, today, the program is a lot stronger, and pro- to communication, technology and transportation. fessors are trying to find more people from the “real I could be in Asia within 15 hours; if I depart in the world” to come in and tell students how to bridge the morning, I could be in Europe for dinner. The way I see gap between university and the workplace. You students it is the world is actually one single economy. are very fortunate to have many alumni who are willNovember 2014 | Quarterly Profit | 19
I think, these days, it doesn’t matter what area you’re in, you just have to keep yourself very up-to-date. Many would agree that every single news channel is biased. When I watch the news, I watch CNN, BBC and CNBC Asia—I try to combine them and I make my own judgment. Any newspaper or TV station would say that they are 100% independent, but I doubt it.
plicable here, unless you can work up to a senior-level position, then it will be the leadership and management skills that will help you to come back.
It has been very beneficial to me and has made me think more globally. It has made me understand that all decisions I make are people-related because, in the end, people make things happen. With this international exposure, I have realized that I have to be sensitive to who my audience is and who I am working with—realizing the purpose of what we are working on and who it is for. Working abroad has improved my decision-making ability and helped me to become a better leader and manager.
What is a valuable lesson you have learned through your career?
So, when people go overseas, they have to make a longterm plan and think about what they exactly want. Like, if you work in a law firm that has an international transfer program—many multinational companies have this When you try to have global awareness, you need to type of program—that would work. But other than that, understand that the world is flat and that no single news if you want to work overseas on your own, you have to source is unbiased. You would take different news think it through twice before you make a decision. sources—each individually would be biased—but when you combine them and hear all the facts, you can What has been a memorable experience or accommake your own judgment, and then consider whether it plishment for you during your time abroad? would affect your business or not. I have met a lot of people and made a lot of friends. The 20 years overseas has made me a better leader and “Think about it: if you make a lot of professional; there’s no question about that. In terms of an actual achievement, it was in the capital markets money, but you don’t have family or area where I helped a company launch their IPO in the health, what’s so good about that?” New York Stock Exchange. When I finished that IPO day, it was a market cap of $1 billion USD, and today it How do you think having the experience of working is about $3.5 billion USD. It was a very successful IPO, abroad has contributed to your professional and/or and I was a key member of the project, which made me personal development? very happy. It has also made me financially secure.
If you look up “career” in the dictionary (I haven’t checked), but it would probably say “a job”—essentially, if you have a job, you have a career.
The lesson I have learned is about balancing life; it is very key. The way I look at career is that it’s only part of a bigger picture. I would see how to make myself successful or how to define success. I would define success One thing about working overseas people need to un- as balancing my life. In balancing life, I need to define derstand is it is quite easy for us to work abroad, but what the key areas are in my life. I believe every indiwhat I share with all my mentees is that it’s not quite as vidual should have a minimum of three major priorities easy for you to come back and find a decent job. To a in their life. Number one is family—if you’re single, certain extent, what you learn overseas may not be ap- you have your siblings and parents; and if you’re mar20 | Quarterly Profit | November 2014
ried, you have your spouse and your kids. The second priority would be health, and the third priority I would consider is finance or money. Career is only a part of the finance area; I don’t put career as a very major item, but you have to have that. At different stages [in one’s life], your priorities would surround these three areas. Then I would ask myself, how can I balance myself in these areas? And then, of course, within these areas, at different stages you would try to set different objectives on what you want to achieve. You need to make sure that your objectives are measurable, making them tangible and achievable. As an example, for family priorities, I would say every year we will take a minimum of three family trips—it could be for one day or for one week, but at least three trips. It’s important to have measurable objectives; people feel good when they can tick off items on their list. In the end, if you can balance these, I would consider you as successful. This is how I look at career; it’s only part of the overall picture. This is what I shared with Harvard Business School too, and they found it very interesting.
abroad in the future? Think twice before making a decision. It doesn’t matter what business school you are attending; all business schools have one objective, which is to train future business leaders. In my opinion, a genuine business leader, or any leader in general, should have a couple key attributes. First is integrity—when people look at him/ her, they know that they can trust him/ her. Secondly, this business leader should have charm and confidence that, when they talk, they are able to demonstrate this confidence and have positive influence on others.
Generally, if people want to work overseas, try to figure out what you want to achieve before you move. If a person is not on an international transfer and goes abroad on their own, be prepared; it might be a one-way trip. It may be difficult to come back to their hometown and find a decent job. If you just want to give it a try, like me when I first started, that’s fine; set a time period to work abroad and then come back. The best way is to try Think about it: if you make a lot of money, but you to get an international transfer that will give you some don’t have family or health, what’s so good about that? experience and your return will be guaranteed. In my If a person considers finance as their only priority, un- case, after 2 or 3 years, I decided to stay and changed fortunately for them, I feel that they would encounter it into a permanent placement in Asia. That’s better because you actually get a feel for the experience there some challenges. I consider having balance is key. and then make a decision on whether to stay or not; you What skills and qualities do you think are import- are still young and can start over again. I think that’s ant for one to have if he or she would like to work important to consider. abroad? Thank you very much for sharing your insight with Flexibility, be willing to learn, and interpersonal and us. You seem to have gained a lot of knowledge and communication skills—I think these are the key ones. experience during your career. Accounting and other specific technical knowledge are dependent on what area you are going into, but these No problem, I enjoy visiting the campus and talking to are more general type of skills that are transferrable to students. After 27 years in the real world, I’ve bumped into many people-related conflicts and have made many working abroad. mistakes that I have learned from. As a result, I became Do you have any advice for aspiring DeGroote busi- a more mature person. ness professionals who are thinking of working November 2014 | Quarterly Profit | 21
Go abroad with
Exchange Program
Ten Thousand Mile Classroom
Words | Taylor Browne
Rarely is there an occasion where you can contribute to a cause, and have a blast doing it. The Ten Thousand Mile Classroom, however, is exactly that. For a total of nine days, ten students who have signed on with the Ten Thousand Mile Classroom program will be selected to travel to Ecuador, as volunteers, to participate in a skills development program. Although this program will generally take up the majority of the trip, volunteers will also have the chance to explore the Quito’s Historic Centre, a UNESCO World Heritage Site, take an unforgettable journey up into the Andes Mountains of the Chimborazo Province, and engage in lively festivities with the community. In completing the journey, students will return with lifelong skills in leadership, social entrepreneurship, and global development, attain experience in environmental and development issues, and receive a three-course credit.
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BizX Exchange Program Beyond the confines of McMaster lies a world of educational opportunities, an international realm of diverse cultures, languages, and customs that can enrich the educational experience. As students, and aspiring business professionals, being able to expose ourselves to these diversities have advantages beneficial to not only the way we think, but also the way we act on the international stage. But how do we go about exposing ourselves to these diversities? The answer is BizX. The BizX exchange program is partnered with 45 schools across the globe to bring you, undergraduate commerce and MBA students, the opportunity to study abroad for one or two semesters at your selected school, while incoming students study here at McMaster. With over a 1000 students having already participated, and the vast number of positive feedback received, you can be assured that BizX is reliable by not only education standards, but also by the standards of ensuring an enjoyable experience. If you are interested in the BizX exchange program, and meet the eligibility requirements provided below, visit the DeGroote website, navigate to the BizX exchange program, and apply online. With the mandatory application is required your resume, statement of interest, and assessment of language competence (if applicable). The deadline for the application process for the 2015/2016 exchange terms is Tuesday, January 20th, 2015 at 2:30pm.
Program Eligibility Undergraduate Student
Graduate Student
• Undergraduate students in an Honours or combined Honours program and graduate students of any discipline.
• Students who have completed Year 1 with a minimum B average. Individual programs may have specific additional requirements.
• Undergraduate students are expected to participate in an exchange program during their third year of a four-year program or their fourth year of a five-year program. (Students must return to McMaster University to complete their final year.)
• Be able to fit the courses and calendar dates into their academic programs, and into their co-op stream if applicable.
• Students who have completed at least 60 units of work with a cumulative average of at least 7.0 at the end of level 2. Individual programs may have specific additional requirements.
• Graduate students must consult their respective department and the School of Graduate Studies before submitting an application. Additional requirements for specific exchanges may apply. • Students must have proficiency in the host country’s language (where applicable).
• Part-time students at McMaster ma participate; however, they must pursue studies during the exchange on a full-time basis • Students must have proficiency in the host country’s language (where applicable)
Words | Taylor Browne
November 2014 | Quarterly Profit | 25
Wa n d e r l u s t
“A very strong and irresistible impulse or desire to travel the world.� Words | Rebecca Snary
26 | Quarterly Profit | November 2014
November 2014 | Quarterly Profit | 27
Exchange Program
“As a child, I always dreamed about studying abroad. Paris was a goal, learning French was a must, and the Eiffel Tower was an obsession. Regretting the decision to not go throughout high school, I choose DeGroote knowing the opportunity to study abroad was available. I am a firm believer in the statement that the only regrets we have in life are the chances we don’t take, and a personal goal of mine has always been to study abroad. “ This past September, I began my exchange at EDHEC Business School, located on the French Riviera in Nice, France. To say it has been an incredible experience would be an understatement. Exchange has transformed me in many more ways than I could have ever have imagined, and I am extremely fortunate to be able to take part in this life changing experience. To give you some insight about my exchange experience thus far, let your mind take a trip to France.
standing of my experiences, I can officially welcome you to my life as an exchange student, where these visions have become my reality. Exchange has allowed me to discover my potential, and push my comfort zone to its limits. Exchange is scary in the sense that you are thrown into a completely new city, with a foreign language and have no idea where to go. I constantly find myself disoriented, unable to understand the language, or running to catch trains to school every day. (The struggle
“Each day offers a new opportunity to see more of the world and explore foreign places.” Envision the French Riviera, and its perfect turquoise pigment sitting to the right of you. Envision colourful aged buildings, with cast iron balconies, towering over you as you roam the streets of Europe. Envision the sunshine in your eyes and the wind in your hair on the rocky beaches of La Cote D’azur. Envision a group of international students laughing around you, as you explore a new school and gain a global education. Now that you have an under28 | Quarterly Profit | November 2014
is real. haha). Accounting assignments are now completed at the airport, studying finance is done on trains, and showing up to school with luggage is the new norm. Although exchange has been incredible, by no means has it been easy. School in France is very different than Canada and regularly challenges me. My class times are always changing, the grading system is very strange, some of my exams are in November, and all
the classes are three hours long. In addition, courses are taught with a heightened global perspective as we learn about world economies, different currencies, and study cases much more. Adjusting to this new way of learning has been challenging to say the least, but has also provided the opportunity for growth and adaptation. Aside from academics, a typical weekend of mine usually consists of several train rides, many bus excursions, and usually a couple flights. Each day offers a new opportunity to see more
of the world and explore foreign places. Although I have only been on exchange for two months now, I have already travelled to Paris, Rome, Venice, Monaco, Cannes, Bern, Geneva, Interlaken, Barcelona, Eze, and Antibes. Paragliding over the Swiss Alps, wandering the Roman Coliseum, taking a selfie with the Mona Lisa, and exploring the Venetian canals in a gondola are only some of my experiences so far. Travelling to other cities has been incredibly exciting, and has allowed me to gain independence as I explore breathtaking cities with new friends. Meeting other international students is definitely one of the biggest advantages of exchange. I now have many friends from all over the world and have learnt so much about foreign cultures and diverse ways of life. They inspire me as we all share the same passion for our studies and unite through our ambitions to travel the world. Together we learn, grow, experience, and more often
than not, get lost in some foreign city. Although it isn’t always ideal, the worst situations make the best stories and provide the greatest opportunity for growth. Exchange offers a competi-
future business leader and I have no doubt that exchange has shaped me into a better person than I was yesterday. The world has so much to offer, and I’ve quickly learnt the importance of discovering new
tive advantage in the international market by posing an abundance of global knowledge and connections onto individuals. Studying abroad transforms the world into a classroom and teaches cultural customs with exceptional ease. In this sense, exchange has definitely changed my mindset and has shaped me into a more open individual. I have developed a greater appreciation for cultures, new cities, and find myself eager to learn here. Put simply, exchange was the best decision I have ever made. I can’t stress enough the importance of gaining a global perspective as a
places and seizing the day. If there’s any advice I could offer to prospective students, it wouldn’t be that you should go on exchange, but rather, that you HAVE to go on exchange as it will change your life forever. Au revoir, ciao, auf wiedersehen, and adiós,
“As a business student, I feel it is critical to constantly build ourselves stronger and consider the BizX program an amazing way to do so. “
Rebecca Snary
November 2014 | Quarterly Profit | 29
Exchange Program
Dream Destination
Anna Pocrnick shares her story as an exchange student in England.
>> Anna Pocrnick, Honours Commerce IV 30 | Quarterly Profit | November 2014
“It’s been 4 months since I’ve been back in Canada. I’d like to
think my exchange story is a pretty prime example of making the most of an experience abroad. I got an internship, a boyfriend, a new wardrobe, and a passport full of border officerapproved memories. Let me elaborate.”
E
ngland, as cliché as this will sound, was my dream destination. Not for a vacation though. No offence intended, but England’s cuisine and gloomy weather isn’t exactly a ‘TripAdvisor’ highlight. I’ve always been into English culture, mainly the music scene. As an avid fan of older bands like Led Zeppelin and The Clash , as well as some newer groups like Kasabian and Arctic Monkeys , I always felt like England was the place to be for the vibes I get from those musicians. I also made really good English friends in 2012 when they were studying abroad at McMaster. So, with the combination of an admiration for the country and multiple friends urging me to visit, my decision didn’t require much convincing.
pretty smitten with the UK currently and I’m highly considering moving back for as long a Youth Visa will allow me. However, when I was living in Yorkshire, I managed to find a way to play on a University ice hockey team, travel to London to watch Olympic hockey at Covent Garden’s Canada-themed ‘Maple Leaf Pub’, and get giddy over the fact that there was a bar in the city centre that sold bottles of ‘Moosehead’.
I found myself on a plane to London, England in September 2013. I can’t even express how pumped I was. It did take a while to truly fall in love with Leeds once I made my way up to the North of England to start the school year. I studied at the University of Leeds within their business school. I was able to take advertising courses and enjoy my free time until my 100% exams came around at the end of each semester. This leads me to my main point of studying abroad - if you can feasibly do it for a full year, do it. Once I got used to my new city, found a job, and started meeting locals, everything fell into place. I felt entirely and happily immersed in the English culture and it was a really cool feeling. Probably the most important thing I learned in hindsight would be that the expression, ‘the grass is always greener on the other side’, holds a lot of truth.I’m November 2014 | Quarterly Profit | 31
But as you can tell by the way I refer to Leeds, I really genuinely loved living there. The knowledge that you can thrive and survive in multiple environments is both exhilarating and empowering. In terms of my future in business, I’m 100% confident that I’ll be a better leader due to my experiences in Europe. Cultural intelligence increases tenfold, and your ability to understand and appreciate that everyone comes from a different background as well as your flexibility and adaptability in all situations becomes unparalleled. Highlights (there are multiple):
1. I independently obtained a marketing intern-
ship with a digital studio called ‘calls9’ (calls9.com). I ended up working the entire year there, gaining exposure to the English market and getting a pretty comprehensive glimpse into the lifestyle of English entrepreneurs (my bosses were two awesome guys who started a company together post-‘realizing law wasn’t for them’).
2. I applied to and was accepted as a delegate for
Stockholm University’s International Business Student Week. I flew first to Copenhagen, Denmark for a day, and then continued on to Sweden for a week visiting companies including IKEA and learning about the Scandinavian business landscape with students from all over the globe. Pretty incredible.
3. I met people who I am craving to see again. Com-
ing to the realization that no matter where you end up, you’ll be dearly missing multiple people evokes powerful emotions. Studying abroad unleashes your inner Carl Fredricksen (the old man in Disney’s “Up”). You want to prove to yourself you can do something you’ve always wanted to, and then you come to the realization that you totally can. So you go do it. And you don’t regret it because you learn to stay young at heart by learning new things and understanding that there’s more out there than you can possibly fathom. You begin to comprehend your tiny size on this planet, but simultaneously just how much power you have through 32 | Quarterly Profit | November 2014
connecting with people on other continents. I can’t really conclude this because I don’t want my own story to end so I’m just going to leave this open-ended. A one-page spread can only provide a taste of what’s to come from an international experience. If you’re contemplating going on exchange and have any questions at all, you can email me (annapoc7@ gmail.com). I will gladly tell you everything I can to help your decision be a ‘yes’ to studying abroad. Words | Anna Pocrnick
Get Lost
Exchange Program
Words | Spencer Russell
I
can distinctly remember sitting in the large Gilmour Hall lecture room, completely captivated by the experiences and pictures being shared by returning exchange students. Immediately following the presentation, I found myself on the phone with my parents while I was walking home, explaining to them what an amazing opportunity I had available to me. Imagine being able to travel the world, gain international perspective and study in a different education system – while all the courses transfer right back to your degree at McMaster. Luckily you don’t need to imagine; the BizX program at McMaster allows you to do just that. It all seemed too good to be true; but it was all true, and it was just the beginning. November 2014 | Quarterly Profit | 33
As a third year Honours Bachelor of Commerce student at McMaster, I spent the fall semester studying abroad at the University of Warwick in Coventry, United Kingdom. I did not know it at the time, but this experience would change the landscape for the rest of my professional career. Going on exchange is fantastic for many obvious reasons, but I’d like to share with you the opportunities and advantages of doing a semester abroad that are not frequently shared. My exchange was a door opener for me. My exchange helped me in all aspects of developing myself professionally. Having international experience gave me a distinct advantage in recruitment, interviewing, performance at work and better exit opportunities during graduate recruitment. During the dreaded 3rd and 4th year graduate recruitment season, I like many other students, was quite nervous. I quickly found out how intrigued employers were about my international exchange. The stories and experiences I had proved to be great conversation during networking events. This was especially interesting when I would speak to employers who had international work experience. In many ways an academic exchange is similar to an international work term. In both cases you are dropped into a foreign world and required to adapt in order to succeed. Sharing these experiences with employers at recruiting events and interviews allowed me to gain an advantage over other potential candidates. It allowed me to stand out in a homogeneous stack of resumes, which all contained the same degree and similar work experience. I was able to leverage my exchange experience to land a 12 month paid internship at a ‘Big Four’ accounting firm. The fast paced nature of the professional services industry was not difficult to adjust to. I was able to adapt and perform almost immediately, something I can only attribute to the skills I learned by going on exchange. While first on exchange I found myself as the 34 | Quarterly Profit | November 2014
only Canadian on campus. I needed to network, meet new friends and use the support systems in place to adjust to the different education system. The education at
to sign a full time contract upon graduation. The benefits of going on exchange can be very obvious; you meet amazing people, experience
“Two roads diverged in a wood, and I, I took the one less travelled by, and that has made all the difference. ” --Robert Frost the University of Warwick is the best in the UK for Accounting and Finance. I found the curriculum to be much more application based, with real life experiences and projects involving real businesses. This style of education was a great change from DeGroote and further helped prepare me for my internship. Solid performance during my work term has allowed me
the cultures of the world, get to travel and live in a totally new country. The hidden benefits are the exit opportunities an exchange can open up for you. It is the most rewarding decision I have ever made in my life, and I can’t encourage students enough to participate in this amazing program. It truly is the experience of a lifetime.
Exchange Program
How Do You ‘Sell’ an Academic Exchange Experience?
Words | Michelle Reyes Manager, Centre for Business Career Development
Embarking on an academic exchange abroad is an exciting time and one that presents many opportunities to build on both your personal and professional skill set. From a career perspective, doing an academic exchange, especially in a country where the language and culture is very different from Canada, is a great way for a candidate to set themselves apart. You have the advantage of standing out both on a resume and in an interview by highlighting these unique experiences. So where do you start? Think about how you got involved while on exchange – employers want to hear about how you successfully accomplished tasks while in a new environment. What type of activities did you participate in both from a social and academic perspective? Did
you lead a tour group of fellow travelers? Did you organize a social event or volunteer with a particular student group? What about completing projects within a multi-cultural environment and working with colleagues from around the globe? Keep in mind that you want to position your time abroad in a professional manner when meeting with prospective employers. Before going into an interview, reflect on the skills you obtained while on exchange. For example: adaptability – being able to work with others from a diverse background and personality; communication skills – coping with language differences in your daily interactions; change management skills – adjusting to a new environment and managing cultural differences. One of the greatest advantages from having been ex-
posed to a different country, culture and language is the reward of having developed both your personal and interpersonal skills. Be prepared to answer the question “How was it?” or “What was your favourite experience?” By preparing for these questions in advance, you can be more articulate and leverage the ways the exchange experience makes you a better candidate for their position. Finally, remember to be genuine when sharing your stories. There is no need to exaggerate your experiences, nor are employers expecting an overly captivating story for each an swer. While it is important to show the employer that you enjoyed your time abroad, the key is to link your experiences to the job in a way that the employer can understand and relate.
About Michelle Reyes
As part of the CBCD team, Michelle Reyes works with students to provide support in all aspects of their career development. She also partners closely with employers to understand recruitment needs and facilitate CBCD’s experiential learning programs. Michelle is an avid fan of Broadway musicals and salsa dancing, and has been singing as part of a community choir for over 20 years.
Originally posted on January 16, 2013 on the CBCD website at: http://cbcd.degroote.mcmaster. ca/2013/01/16/how-do-you-sell-an-academic-exchange-experience/.
November 2014 | Quarterly Profit | 35
Recent Graduates
Where Are They Now?
Interview with Recent Graduates
Olivia Stille
1
• Pricing Strategy, Bell Residential Services • Honours Bachelor of Commerce, 2012 • BI Norwegian Business School, 2009
Q1: What are the highlights of your DeGroote Experience? I always tell people the two smartest decisions I made in undergrad were to go on exchange and to do an internship. Through those experiences I learned so much academically, professionally and personally. They were huge resume boosters and were also some of the most fun parts of my University experience. Q2: Exchange location and partner University? BI Norwegian Business School in Oslo, Norway. Q3: What was the highlight of your exchange experience? A really memorable moment for me happened about two months into my exchange. I was getting off the metro on my way home from a class and walking into the grocery store near my apartment when a realization hit me: I had picked up my Canadian life and moved to another country, and I was actually doing okay! In fact, I was thriving and I was having so much fun. I’d made new friends, visited countless new places, and tried all sorts of unfamiliar things. When I left Canada for Norway, I didn’t know if it would be possible, but in a short amount of time, I had adjusted and I had made myself a whole new, amazing life from scratch! It was such an average moment but it’s one that has really stayed with me and has given me so much confidence in my ability to adapt to new environments. Q4: How did exchange impact you as a student and as a future business leader? Things I learned while on exchange, inside and outside of the classroom, changed the way I think about the world! 36 | Quarterly Profit | November 2014
“Keep a positive attitude but push yourself. Put yourself out of your comfort zone. You will grow and you will be surprised of what you can achieve.”
At the University I attended in Oslo, there was a huge selection of elective courses I could take advantage of. I ended up taking a Public Relations course and a Scandinavian Management course. Neither of these courses were offered at McMaster so I learned topics on exchange I would never have been exposed to back home! Because I was at a business-only University there was a different culture among the students that gave me an early taste of professional life. Lots of students wore suits or business casual attire to class... definitely different from the sweatpants most McMaster undergraduate students are used to! Another difference in the University atmosphere was due to Norwegian culture, which is more socialist than ours. Norwegians are all about equality! I noticed that there was no hierarchy in the student-professor interactions and how helpful it was to students’ learning. I now try to demonstrate similar attributes in my work-life. Not only did I get to learn about Norwegian culture while on exchange, but I also learned about countless other cultures from the huge number of exchange students I met and traveled with. Having an international network has been hugely advantageous, whether I’m looking for career opportunities or friends to visit! Lastly and maybe most importantly, from my exchange experience, I’ve become more comfortable with change and with new situations which has been very advantageous since change is constant in business! Q5: What is your advice to current and incoming DeGroote students? Seize as many opportunities as you can! You get so many chances in University to try all sorts of cool stuff: you can join clubs, run clubs, do case competitions, try new sport, etc. The list could go on for days! Remember to keep a positive attitude but continue to push yourself. Put yourself out of your comfort zone. You will grow and you will be surprised of what you can achieve! November 2014 | Quarterly Profit | 37
Recent Graduates
Christopher Rosario
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• Account Executive, Maple Diversity Communications • Honours Bachelor of Commerce, 2013 • Euromed Management, 2012 Looking a few seasons back into my academic journey at DeGroote, my fondest memory was in Europe. I participated in the BizX exchange program to study abroad at Euromed Management in Marseille, France. Courses included: cosmetic marketing, luxury marketing, fashion branding and retail marketing, social media tribes and strategy, international business and level 2 beginner French. Cit-
ferences, I realize that culture is an ingrained part of our social world. By spending six months overseas, I learned so much about myself. I am blessed to have engaged with so many phenomenal cultural experiences as part of my university degree. The majority of DeGroote alumni will tell you to join comittees, conferences, and competitions. This adds to your compet-
“Various complex situations tested my true ability of adapting to a new environment.” ies visited included: Stockholm, Zürich, Vienna, Milan, Brussels, Prague and Barcelona. Through the program, I grasped the importance of cultural exploration. Various complex situations tested my true ability of adapting to a new environment. I had to transition from my life in Hamilton to la vie en Marseille for almost half a year. I learned that I am more adept to risktaking and resolving conflict. I developed an enterprising spirit to go beyond my comfort zone. With my growing appreciation for cultural dif38 | Quarterly Profit | November 2014
itive advantage upon graduation amongst your peers. There is no doubt that you will experience a rush from your accomplishments with a hunger for more. And most times, you will experience blood, sweat and tears. You will realize that the struggles during your university career are all worth it when you look back from a different phase in your life. Try to make the best memories to carry forward beyond your quarterlife crises (should you have one). Always remember to live your moments with true passion.
DeGroote is a place for personal growth and professional development. Take advantage of the resources available to you at DeGroote. Acknowledge the plethora of extracurricular and academic opportunities like the BizX program. As students, you need to be active participants in your academic journey.
“You will realize that the struggles during your university career are all worth it when you look back from a different phase in your life...Always remember to live your moments with true passion.” Being involved in the DeGroote Marketing Association, Canada’s Next Top Ad Exec, and BizX are the epitome of my DeGroote experience. I am now an Account Executive at Maple Diversity Communications, striving to highlight the importance of multicultural marketing and advertising to ethnic communities in Canada. Looking forward, I always find time to reflect on my experience and experiential learning at DeGroote for its contribution to my aspirations in life. Everything was worth it. >>Christopher Rosario
November 2014 | Quarterly Profit | 39
FEATURED FACULTY
UP CLOSE WITH PROFESSOR COSSA INTERVIEW BY TARA KHUDAIRI
Professor Rita Cossa currently teaches Business Environment & Organization to both Commerce and non-Commerce students, as well as Business Policy & Strategic Management, a capstone case-base course. Professor Cossa has also taught introduction to marketing courses in the Bachelor of Commerce, the Master of Business Administration (MBA), and the Master of Communications Management (MCM) programs. Recognition for her teaching is highlighted through multiple nominations for a McMaster Student Union Teaching Award, a nomination to TVO’s Best Lecturer Competition, and notations in the Maclean’s Guide to Canadian Universities as a Popular Professor for Marketing. In addition, she has co-authored five editions of Understanding Canadian Business, a best-selling introduction to business textbook. Prior to her teaching career, Professor Cossa held management-level positions in the financial services industry. The Quarterly Profit team had the privilege to get a one-on-one interview with Professor Cossa as she reflected on her life and career.
November 2014 | Quarterly Profit | 41
Looking back to your undergraduate years at Wilfrid Laurier University, what drew you to pursuing a degree in Business Administration?
tion. Working in Hamilton, I was aware of the reputation and esteem attached to holding a McMaster University degree. Enrollment in our MBA program would allow me the flexibility to attend part time while I continued Business administration struck me as a career that to work. It was a relief to leave my weekly night classes would provide many job and growth opportunities. with the knowledge that I had a short commute. While ‘return on investment’ was not a term that came to mind while I was considering university programs, The highlight of my student experience was meeting I was aware that graduating with this degree would al- my classmates. Given that most of my peers were partlow me to quickly start building a career. I was also time students in professional roles, they were able to appreciative of the flexibility inherent in holding a busi- bring their work experiences into our class discussions. ness degree. This was from the perspectives of job role These discussions certainly added a layer of interest choices, industry and company applicability, and geo- when connected to course theory. Working with classgraphic flexibility. While I did not intend to immigrate mates that held a variety of jobs resulted in networking to another country, as had been the case for my parents, opportunities while we shared the common experience I did want to keep my options open as to where I would of balancing work challenges and personal responsibilwork. Wilfrid Laurier University was an ideal choice ities. To this day, I value the friends that I made while in the program.
“Ask questions, be flexible, embrace opportunities for growth, and be enthusiastic. These are all qualities that will ensure a stronger and more positive overall experience.”
What drew you specifically to teach at the DeGroote School of Business fifteen years ago?
This certainly comes under the category of timing. Upon completing my studies, I explored new job opportunities. When evaluating two job offers, I sought the counsel of one of my former instructors, Professor Terry Seawright. He suggested that I explore a third option, which was a teaching opportunity at the DSB. As his former teaching assistant, he had recalled a conversation where I shared that teaching appeared to be due to the reputation of the program, the small cam- a challenging yet rewarding career. He encouraged me pus size, and the city’s proximity to a train service that to apply to teach the Introduction to Marketing course. would take me home when required. As the saying goes, the rest is history. Working with engaged students and dedicated faculty and staff, I remain What contributed to your decision to attend Mc- convinced that this was the right decision. Master University for your graduate studies? What was the highlight of your experience as an MBA stu- In recognition of your service to the McMaster Unident in the DeGroote School of Business (DSB)? versity community, you were honoured as McMaster University’s Volunteer of the Month (August 2012). My decision to attend the DSB was based on two fac- Could you please tell us more about your contributors: the program’s reputation and its geographic loca- tions to various faculty and University committees?
42 | Quarterly Profit | November 2014
My service contributions are varied. The common link in these committees is that they are student centred. Within the DSB, I serve in two capacities: the first is on the Undergraduate Recruitment, Admissions, and Student Affairs Committee, and secondly, as a Board advisor for AIESEC. There are three primary functions of the Undergraduate Recruitment, Admissions, and Student Affairs Committee. To begin, members assess and make recommendations to the Faculty on matters of undergraduate admissions policy, as well as adjudicate admission matters. We also plan, for approval of the Faculty, all recruitment activities and events within the Faculty, and at an institutional level. Third, at the end of an academic session, the grades of all students registered in undergraduate programs in the Faculty of Business are reviewed and recommendations are then made to the Faculty. With the advice of Mr. Greg Rombough, Manager of the Academic Programs Office, and his staff, the Committee works to make the best recommendations. AIESEC is the world’s largest student-run, non-profit organization that focuses on creating global leaders by sending its students overseas on volunteer and internship opportunities. I am the faculty representative on the Advisory Board for the AIESEC McMaster chapter (www.aiesec.ca/mcmaster). As advisors, we provide suggestions on how the executive team can continue to build its membership and exchange program participation. A current initiative is targeted to upper-year students who may be interested in paid teaching internships in China, Indonesia, and Colombia. I remain impressed with the dedication and effort of these student executives as they pursue their full-time studies while also developing their leadership skills within the mandate of AIESEC.
Committee. As a member of ULAC, my Council members and I hold the roles of advisors, ambassadors, and advocates. As advisors, we are tasked with developing an individual and collective awareness of various trends impacting higher education. We then consider these trends as
“Commerce students are encouraged to develop their skills in four areas: academic learning, experiential activities, community engagement, and professional development.”
they apply to McMaster University. We are encouraged to bring views and perceptions of the Library from our own faculties and from the campus at large to both the Council and the University Librarian, Ms. Vivian Lewis. As ambassadors, we serve as the initial points of contact for concerns related to the strategic direction and/or programs of the Library. We are encouraged to actively participate in Library events so we are aware of the Library’s development. When required, we then communicate Library developments to our Faculty. Lastly, as advocates, we work to ensure that the campus community is aware of the Library’s continued contributions to the University’s success.
The Faculty Accessibility Consulting Board consults with Student Accessibility Services (SAS) on matters related to SAS, the academic accommodation process, In addition to my faculty service, I participate on three and all of its related issues. The work and commitment University committees. They are the University Library of Mr. Tim Nolan, Director, and his team is noteworthy Advisory Council (ULAC), the Faculty Accessibility as they actively provide necessary supports for students Consulting Board, and the Take Our Kids to Work Day with disabilities. November 2014 | Quarterly Profit | 43
“Work hard, be committed, adapt to change, be ready to change direction if you are not being challenged, and don’t forget to have fun.”
The Take Our Kids to Work Day Committee supports the national program that targets Grade 9 students. This program illustrates the importance of education, skills development, and training while giving students the opportunity to experience the world of work and the variety of career opportunities that await them. Committee members work all year to organize a morning full of activities that include faculty booths, team-building exercises, a campus tour, a career session, and participation in a faculty-sponsored breakout session. By interacting with campus faculties and service providers, we have an opportunity to highlight some of the University’s programming strengths. While the students are in Grade 9, it is never too early to talk about the benefits of attending McMaster University! Looking back, what would you say has been the biggest challenge as a professor and how were you able overcome it?
You have co-authored five editions of Understanding Canadian Business, a textbook targeted to the university and college market in Canada. You have worked with individuals of different academic and geographical backgrounds. What has been the highlight of working with such a diverse group of people? The textbook is based on the American best-selling introduction to business textbook. Over the years, I have been fortunate to interact with three Canadian co-authors. On my first edition, I met and worked with Professor Paul D. Berman, the creator of this Canadian-based textbook. His many accomplishments included being the founder of a firm of chartered accountants, an instructor at John Abbott College and McGill University, and the author of a book on small business and entrepreneurship. On the last two editions, I have worked with Professor Bob Sproule, a faculty member in the School of Accountancy and Finance at the University of Waterloo. His interests extend to teaching and learning and he has received two international teaching awards recognizing his innovation in teaching. Recently, work has begun on the 9th edition of this textbook. Dr. Julie Stevens, a faculty member in the Department of Sports Management at Brock University, will be replacing Professor Sproule as he prepares for retirement. Like my co-authors before her, she is engaged with her students and is looking forward to contributing to the textbook.
From a career perspective, one challenge has been adapting to the political changes as they relate to career advancement. I was first hired as a sessional instructor. This then led to over ten years of multi-year contracts. Currently, I am a Teaching Professor and I am working toward permanence. Over the years there has certainly been an element of uncertainty surrounding contract renewals. I don’t think that one necessarily overcomes this challenge. Rather, one learns to accept it and adapt to it while contributing to the student experience. In reality, there are few roles where one is guaranteed a job for life so I expect that this level of uncertainty is the What I value most is working with professionals that have different perspectives and teaching experiences. case with most jobs. We usually connect in an initial author meeting. After From the beginning, my primary objective has been to this, we run ideas by each other via emails and phone teach effectively. As part of this, I explore new teaching calls as we work toward producing a textbook that is approaches and how they can be incorporated into the market ready. This is all with the support of a team of classroom. Some days are exciting, other days are chal- experienced McGraw-Hill Ryerson professionals that lenging. All in all, no two days are alike. I would not are also dedicated to producing the best book in this market. have it any other way. 44 | Quarterly Profit | November 2014
With your numerous accomplishments as a business leader, author and professor, is there a particular accomplishment, work, or recognition that you are most proud of?
Office staff, and the Undergraduate Bulletin), courses (e.g., as communicated in Course Outlines and discussions with instructors and teaching assistants), available campus services (e.g., Centre for Business and Career Development, and the Student Success Centre), Certainly any validation, whether it be an award nom- and campus clubs (e.g., the DeGroote Commerce Sociination or a head nodding in class, is appreciated. I get ety). By being informed, students can then better adapt great satisfaction when students find value in what they to different situations. are learning. Teaching can be a tricky business as sometimes I wonder if the content is understandable and if it Commerce students are encouraged to develop their resonates with the students. I am most proud when I see skills in four areas: academic learning, experiential acstudents developing as future business leaders. This can tivities, community engagement, and professional debe in the area of skills development (e.g., research and velopment. Each area has its own combination of recommunication), their passion for the study of busi- sources available. Ask questions, be flexible, embrace ness, and/or their active participation on campus clubs. opportunities for growth, get involved, and be enthusiThis could certainly not happen without the support of astic. These are all qualities that will ensure a stronger teaching assistants, faculty, and staff members both in and more positive overall experience. Incorporating the DSB and across both campuses. these experiences into one’s Learning Portfolio will encourage self-reflection as well as capture examples that As a professor in the undergraduate program at the apply to each of these areas. Upon graduation, students DeGroote School of Business, what do you hope to can then point to these milestones and fully appreciate see happen with the school in the near future? their accomplishments. I hope that the DSB will continue to work collectively to support our stakeholders. This includes students (both present and past), faculty, staff, employers, the campus community, and the community at large. We are in a phase of transition as Dean Waverman continues his efforts to facilitate the completion of a Faculty strategic plan. Under this direction, I expect that the DSB will continue to grow and prosper.
And as for our fourth and fifth years that are about to graduate and enter the ‘real world’?
For our graduating students, I wish them every success in their future endeavours. Realize that sometimes there is no perfect job but rather, a job that is perfect at that point in time. Advice for these future graduates is to continue developing along the areas noted earlier. Employers seek bright, flexible, and engaged employMany first years come into university feeling like ees. Aspire to be more than a satisfactory employee a guppy swimming in a sea of sharks. What piece as not only should you demand more of yourself, but of advice would you give them particularly to help also a competitive business environment will demand them get more accustomed to all the changes that it of you. Work hard, be committed, adapt to change, they may be facing? be ready to change direction if you are not being challenged, and don’t forget to have fun. I encourage first-year students to take the time to be receptive to the information that is communicated about our program (e.g., through the Academic Programs November 2014 | Quarterly Profit | 45
FACULTY EDITORIAL
What’s Happening with the Price of Oil?
WORDS BY PROFESSOR LINDA STOCKTON
I was asked by the Quarterly Profit to write a short article about an international event that may be affecting business around the world. I considered a few issues like the Umbrella Campaign in Hong Kong and the invasion of Russia in the Ukraine but decided that the price of oil has a more widespread impact on business. I used the popular press as a source reading articles from The Globe and Mail, the Toronto Star, The Wall Street Journal, Reuters, and The New York Times. Following is a synthesis of what I learned.
icans’ dependence on OPEC oil. Imports from OPEC have fallen 50% creating a surplus of oil there. In Canada, the Alberta oil sands have been the largest contributor to increased oil production and the break even for a well-established, steam-driven project is about $65.
Libya is also adding to the glut of oil by increasing production by 500,000 barrels per day and OPEC countries have increased production by another 400,000 barrels per day. Some analysts predict that when OPEC meets in November, Saudi Arabia will call for a reduction in The price of a barrel of oil has fallen sharply this year. quotas for 2015. It was about $116 per barrel in June of this year and is now $84. That’s a whopping 27%. In June, I thought Experts say that we consume about 90 million barrels that the price of a barrel of oil would increase because per day but are producing about one million barrels of threatened sanctions put on Russia by the U.S. and more than that. E.U. as a result of its invasion of the Ukraine and in response to the turmoil in Iraq. Russia is the third largest At the same time, growth in demand is decreasing by producer of oil after Saudi Arabia and the US. an estimated 22%. We are seeing more hybrid vehicles, commercial vehicles running on propane and electric This didn’t happen. The price is at a five year low. It’s a vehicles to name a few reasons. Furthermore, the largmatter of supply and demand. What we have right now est market for oil in the world is China and it is seeing is similar to what happened in the 80’sand 90’s when a slowdown in economic growth so its need for oil is conservation measures were successful in reducing de- lessening by about 290,000 barrels per day which is mand and hence the price of oil declined substantially about 60%. to about $13 per barrel by 1998. Japan has decreased demand for oil by switching to gas Supply is increasing partly because of the shale depos- and coal. Restarting the nuclear power plants next year its discovered in the U.S. in Texas and North Dakota. will further reduce their demand for petroleum prodThe supply from this new source is about one million ucts. barrels per day which has drastically reduced the Amer46 | Quarterly Profit | November 2014
As a result, Saudi Arabia is effectively starting a price war with oil because it needs revenues from oil to sustain government budgets rather than reducing the quotas. This has forced the OPEC nations to compete with each other for market share in Asia hence having to cut prices. Saudi Arabia has been using lower prices to maintain market share with Asia in the midst of a spending spree to improve living conditions and diversify their economy.
Lower prices mean less profitability for oil drillers in the U.S. so many plan to keep production flat for the next year to hopefully keep oil prices from falling further. It appears that even with keeping production flat, output will take a long time to slow down substantially. Drillers often have long term contracts for rig equipment and suffer large penalties if they cancel the contracts early, so existing producing wells will not be stopped. Analysts estimate that the boom in drilling oil in North Dakota and Texas is not affected as long as
U.S. Energy Administration
Costs for Producing Crude Oil and Natural Gas, 2007-2009 2009 Dollars per Barrel of Oil Equivalent
United States - Average On-shore Off-shore All Other Countries - Average Canada Africa Middle East Central & South America
Lifting Costs Finding Costs Total Upstream Costs $33.76 $21.58 $12.18 $12.73 $10.09
$18.65 $41.51
$31.38 $51.60
$9.95
$15.13
$25.08
$12.69 $10.31 $9.89 $6.21
$12.07 $35.01 $6.99 $20.43
$24.76 $45.32 $16.88 $26.64 November 2014 | Quarterly Profit | 47
“Canada’s economic fortunes are largely dependent on our neighbours to the south. Things are looking up for them and that bodes well for us.”
the price stays over $60 per barrel, the estimated break Russia, in particular Vladimir Putin, once said the sanceven. tions meted out on Russia due to its behaviour over the Ukraine were nothing more than a minor annoyance. Saudi Arabia seems to be accepting of allowing oil His bravado seems to be waning, talking spending cuts prices to fall over the next couple of years to encourage to social and other programs typically funded by the American oil drilling companies to reduce output. government. Falling prices have led to a reduction of share prices for oil drilling companies. Companies like British Pe- In mid-September, the U.S. and E.U. announced their troleum have fallen 10.8% over the past month. Exxon latest in a series of sanctions against Russia prohibitMobile is down 14.6% and Royal Dutch Shell is off by ing U.S. and E.U. companies from providing goods and 21.7% over the same period. Maybe it’s time to buy oil services to Russian deep-water, Arctic and shale projstocks! ects. The I.E.A. predicts that this will have limited impact on Russian production of oil in the short term. So you can see that even at $80 a barrel, oil extraction is still profitable. Another Russian spokesman for the state controlled oil company, Rosnet, accused Saudi Arabia of colluding Declines in oil prices are straining the budgets of ma- with the U.S. on oil prices. jor petroleum exporting countries raising a specter of spending cuts in Russia where the economy is under The Russian Central Bank believes price of oil will repressure from Western sanctions and potentially posing bound to about $100 per barrel over the next three years a major security threat for Iraq which is struggling to and has enough in reserves to weather that storm. finance its fight against ISIS. According to the U.S. Energy Information AdministraRussia’s economy is sensitive to oil prices and its bud- tion, Russia derives half of its federal budget from oil get depends on the price staying at or above $100. For extraction revenue. every dollar the price falls, the Russian budget loses about $2 billion according to the head of the Russian Falling crude prices have served as a form of stimulus Finance Ministry. Revenue from oil exports is used to for the Canadian consumers since they have to spend fuel Putin`s militaristic ambitions along its borders. less of their income on gasoline and hence may prop up The fall in the price of oil has not blunted his ambitions the retail industry in the coming months. The same can so far. be said for American consumers. Lower oil prices have 48 | Quarterly Profit | November 2014
been accompanied by the Canadian dollar depreciating against the USD. This makes our exports cheaper for Americans, the largest consumer of our goods. It`s like a giant ‘sale’ and may stimulate non-commodity segments in Canada which will translate into more jobs in central Canada. On the other hand, in the oil producing provinces of Canada, the fall in the price of oil is not so positive if the price remains low or falls further for a prolonged period of time. Approximately a quarter of all new oil projects in Canada can break even at $80 per barrel. A prolonged price decline will stall new investment and may also mean cost reductions on current projects.
above $60 or $70 per barrel and hence there will not be a decline in production. Countries like Russia, Venezuela and Iran who have sought to see less American control may have to moderate their behaviour as they come under growing financial pressure. Venezuela has called for an early meeting of OPEC to discuss the price but other members prefer to wait until their regular meeting in late November. According to the Wall Street Journal, Saudi Arabia, Kuwait and the U.A.E. will oppose any move to reduce production in OPEC countries to put upward pressure on the price of a barrel of oil.
Canada’s economic fortunes are largely dependent on our neighbours to the south. Things are looking up for Some analysts say that OPEC may cut production next them and that bodes well for us. month to try to stabilize oil prices. Others suggest that Saudi Arabia may allow even lower prices to persist to Estimates are that for every $.10 drop in the price of put pressure on its rivals like Iran and Russia, as well gasoline annual savings per household is about $120 in on oil producers in the U.S. which have higher oil prothe States. duction costs making it harder for them to compete when prices fall. Some energy experts say that long-term investment planning could be affected if the price stays low. Large As you can see, there is a lot of somewhat contradictory companies do their planning years in advance but small information out there. But what will happen to the price to medium sized companies are more sensitive to price of a barrel of oil? It’s anybody’s best guess! swings. Other experts say that production in the US has become very efficient and profitable as long as the price stays November 2014 | Quarterly Profit | 49
Tax Watchdogs On The hunt
Words | Imran Dhalla
“With the help of bank secrecy and offshore jurisdictions，some businesses are able to move their money to more favorable tax regions to avoid paying corporate taxes.” “However, a proposal of OECD has been sent to the G20 preventing business to avoid paying little or no taxes by setting up offshore subsidaries to funnel their profits taxfree.” Overview The issue of corporate taxes has been an emerging problem in the world of international business, with major multinational corporations like Apple, Google, Starbucks and Amazon coming under fire for orchestrating practices that allow them to reduce their taxes paid. And in a society where many believe that taxes are critical to maintaining economic development, the Organization of Economic Co-operation and Development (OECD) have stepped in with a proposal to crack down on tax havens. The Issue Corporations have long been 50 | Quarterly Profit | November 2014
using complex, yet legal, means to avoid paying corporate taxes, along with a number of wealthy individuals who have taken advantage of bank secrecy and offshore jurisdictions to move their money to more favorable tax regions. Offshore accounts are popular in favorable tax havens like the Bahamas, Bermuda and the Cayman Islands because of their lack of general corporate tax rates.
Notable Cases Starbucks Corp. voluntarily paid over $17 million in taxes after numerous protests and boycotts by the British people over their practices in utilizing Swiss financial instruments to avoid pay-
ing corporate taxes in the UK. Google, another enormous corporation, was successful in moving over $8 billion in untaxed profits from Europe and Asia through their subsidiaries in Bermuda, where the tax rate is zero. UK telecom provider Vodafone generated a whooping $500 million in profits last year. However, an unusual Luxembourg tax rule allowed Vodafone to pay no taxes on the profits. All these companies have been using practices to avoid paying or minimizing corporate taxes with reports suggesting that overall, U.S companies have been holding almost $2 trillion in profits offshore to avoid corporate taxes, which in the United States
ranges from between 15% to 35%. In a recent event, the $12.5 billion takeover of Tim Hortons by Miami-based BURGER KING, has sparked debates as to whether corporate tax minimization is one of the major reasons for the acquisition. In a recent study, KPMG rated Canada as the most favorable tax environment for businesses in the developed world. Not only does Canada have a low nominal corporate tax rate, it also allows foreign profits to be brought back home tax-free. These corporate acquisitions do have their share of pros and cons, as consumers, we do want to know what is going to change, and how that will impact our consumer experience as a country. The inflow of foreign investment does benefit the general economy, an increase in capital leads to a higher output, leading to higher demand for labour offsetting the supply of labour and reducing unemployment.
What’s Next? Recently the Organization of Economic Cooperation and Development (OECD) sent in a proposal to the G20 to plug in the loopholes that allow these businesses to avoid paying little or no taxes by setting up offshore subsidiaries to funnel their profits taxfree. With a possible implementation of the new Standard for Automatic Exchange of Financial Account Information in Tax Matters, countries who commit to the implementation of the standard, currently at a headcount of 51 countries will automatically exchange financial information annually with an emphasis to support less developed countries to benefit from this transparency initiative. This means countries with more favorable tax treaties would have to share information with countries where their operations of these businesses are initiated making it hard for large companies to avoid paying all their taxes. “Today’s launch moves us closer to a world in which tax cheats have nowhere left to hide.” said by OECD Secretary-General Angel Gurria. With these initiatives in place, it does raise questions on what this could mean for Canada, as
“The G20 mandated the OECD to work with G20 and OECD countries and stakeholders toward the development of an ambitious information exchange model that would help governments fight tax fraud and tax evasion.” —OECD Secretary-General Angel Gurria. well as the rest of the world. Going back to the classic “Big Pharma” debate, where their patent play gives them an incentive to continue working and investing in R&D on drugs that could benefit the rest of the world, or at least those who can afford them. And of course, when companies move their base from the United States to Canada (i.e., Burger King – Tim Hortons), it would likely benefit the country in terms of jobs, greater output etc. However, does the prospect of this new Standard in implementation risk demotivating companies to drop their standards, raise commodity prices or stop production and move their focus to other projects that are likely to benefit them? Only time will tell what these standards will lead to.
November 2014 | Quarterly Profit | 51
The Alibaba Hype Words // Allan Tai Cheong Chan and Gurkirat Vasir
52 | Quarterly Profit | November 2014
Who hasn’t heard of the name Alibaba? Many people know the tale of “Alibaba and the Forty Thieves”. However, recently this folk tale has much been overshadowed by the IPO of the Alibaba Group Holdings on September 19th, 2014 at the New York Stock Exchange. It has indeed been a historical event, hailed as the largest IPO in the world by Reuters. Debuting at $68 per share, with a market capitalization of $224.93 Billion USD, this near quarter of a trillion dol-
lar giant is indeed impressive. With social media trending wildly with the current generations, initial public offerings followed. It seemed that every internet giant wants to generate capital for growth; but what kind of growth? Many companies that are considered a ‘sexy buy’ have a high Price to Book ratio. This means that their share price is much greater than their assets owned.
November 2014 | Quarterly Profit | 53
Jack Ma, Alibaba’s co-founder, celebrated the ringing of the bell from the floor of the New York Stock Exchange (dealbook.nytimes.com).
As of October 2014, Alibaba holdings now have a P/B of 24.05, which is significantly higher than the industry P/B average of 8.38. The common argument for these types of companies would be growth potential. Alibaba boasted how they captured 80% of the e-commerce market of China and that the Chinese market has yet to be completely penetrated. However, this potential for growth may be a dangerous assumption as the technological environment is very dynamic and consumer demands change rapidly. It is a very concerning fact, considering how web platforms such as MSN Messenger and MySpace have once been hailed as social media giants yet now are obsolete. Beyond the risk aspect of Alibaba, the fact that it is a foreign asset in China makes it not a favourable investment. One of the major concerns would be the fact that people who 54 | Quarterly Profit | November 2014
purchase Alibaba stock do not actually own any portion of it. Chinese regulations on asset ownership forbid the sale of internet companies due to the sensitive nature of these types of assets. The Alibaba Holdings share that is being sold on the NYSE (New York Stock Exchange) is called a VIE (Variable Interest Entity). This VIE is a separate company that has a claim to a certain predetermined amount of profit that the actual Alibaba company makes. This allows the VIE to act as a vehicle for Alibaba to gain capital from foreign markets and bring It back to China while bypassing asst ownership laws. However, this is at the expense of the risk that NYSE stock holders will now shoulder. It is very concerning how shareholders will not actually have any control over how the company is being run, some controversialdecisions that the company has made would be how Alibaba’s Board Chairman, Jack Ma,
“...Jack Ma, bought a Chinese Soccer team for $192 million USD for a 50% stake after discussing the deal one night over drinks.” bought a Chinese Soccer team for $192 Million USD for a 50% stake after discussing the deal in one night over drinks. Although this can be considered a strategic deal, actions that are taken on behalf of the company are not being decided, or voted on by the shareholders.. The 2011 spin-off of Alipay, which was the PayPal equivalent service offered by Alibaba, is another controversy that makes buying non equity owning VIE stocks a risk. In this transaction, Jack Ma transferred the successful Alipay service from Alibaba to another company where he had significant ownership to bypass new government regulations on online payment systems. Yahoo! Inc., which had a significant stake in Alibaba at the time and still own about 24% stake, was not even consulted about
It is unquestionable that Alibaba has been an outstanding success in China and that its’ track record thus far makes it a very attractive company to invest in. However, as an internet company, it can still fall susceptible to the risk of changing consumer demands; especially in a growing market like China. This coupled with the fact that buying a stake into Alibaba Holdings doesn’t allow you to have company ownership really means that each share bought from Alibaba in New York is in essencea token of trust to Jack Ma and his executive team.
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The Eurozone Crisis Words by Krish Puri
C
ooperation among European countries dates back to the late 1940s when a war stricken continent realized it required collective economic and political stability to facilitate growth. The European Union (EU) traces it origins to six founders: Belgium, France, Germany, Italy, Luxembourg and the Netherlands, in 1951. Thereafter, economic development during the 1960s throughout Europe, the United Kingdom’s admittance into the EU in 1973, and the fall of the Berlin Wall in 1989 helped foster continuity and cohesion in Europe. On January 1999, the euro became the official currency of the Eurozone. Today, 18 of the EU’s 28 members use the Euro as their national currency. The early 2000s were pivotal for the European Union with the Union further expanding, however, most of Europe fell into an economic crisis by 2009. Today, the EU is fighting its way out of that “Eurozone crisis,” which officially began when ten central banks asked for a bailout amid deflationary pressures, staggering unemployment levels, weak growth, the low liquidity of European banks, and European countries’ large debtto-GDP ratios. Governments spend and collect money in an effort to influence the economy through their fiscal policies.
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Europe arguably fell into their economic struggles because they failed to implement a collective fiscal policy throughout all of Europe. Recognizing the severe difficulty in setting fiscal regulations across a diverse continent, it is probable that with the exertion of rough fiscal requirements/standards the severity of the Eurozone crisis could have significantly curtailed. The housing bubble in 2002-2009 – where the Spanish government assigned non-recourse loans to homeowners - is an instructive example.. These non-recourse loans were backed by collateral so that the buyer of the loan was not personally liable for the asset if it did not default on that loan. Upon default, the lender had the right to the collateral (i.e., the house itself). This ended the housing bubble in Spain and emptied Spanish houses, thus hindering economic growth and consumer spending, contributing significantly to Spain’s high current debt. The previous example brings to light Europe’s easy credit conditions prior to 2009. Then, it seemed as though it was possible for virtually anyone to get a loan. Private companies and banks alike took little account into how likely the borrower was to default on a particular loan. This fundamental problem also led to the U.S. economic crisis in 2008.
As a result, counties such as Portugal, Ireland, Italy, Greece, and “Although a bit lower than what our European economists had exSpain (PIIGS), continued to amass pected, [the ECB] continues to stress the importance of today’s resignificant debt, inducing a subsequent credit freeze. A credit freeze sult together with the operation in December. This is because these occurs when banks and institutions first two operations should be seen largely as a means for banks to stop lending money to investors. roll over their existing LTRO funding. To this end, we expect euro In short, companies that relied on area banks will draw a cumulative €250–300 billion over the first loans for daily operations began to shut down or go bankrupt one two TLTROs.” - Keng Goh, RBC Strategist by one. Consumers had to become more frugal since they had access to smaller amounts of cash. People defaulted on loans as the high amount of debt in the private sector that the a consequence and countries such as Spain and Greece euro zone suffers from. fell into severe debt. This in turn made it nearly impossible for these countries to refinance debt without inWhat is Europe going to do about it? tervention from the European Central Bank (ECB) and The European Central Bank president Mario Draghi International Monetary Fund (IMF). made a promise to expand the EU’s balance sheet by 1 trillion euros. The European Central bank recently Why is the Eurozone Crisis Persistent? bought $2.2 billion worth of French covered bonds in The relationship between deflation and unemployment an effort to simulate the economy. Covered bonds are explains Europe’s economic struggles. Deflation oc- short-term loans (for 2-10 years) that are backed by curs when the prices of goods and services decrease, cash flows stemming from public sector financing or reducing profits as well return on investment, in turn mortgage payments. In short, covered bonds are a low contributing to a contracting economy. In September risk method to stimulate the economy through a process of this year, the euro zone suffered from immense defla- called quantitative easing, or QE. The ECB has also tionary pressures, which saw an inflation rate of 0.3% launched a long term refinancing operation (TLTRO) compared the United States’ rate of 1.5%. Deflation program where it plans to provide financing to banks and unemployment have a causal relationship, which throughout Europe. The ECB just bought $106.9 bilcan be exemplified by Phillip’s curve that shows and lion in four-year bonds, although some economists fear inverse relationship between the unemployment and in- the ECB will have t resort to even more deficit spendflation rates, i.e., decreased unemployment, correlates ing in order to truly foster economic growth. with inflation rates. Countries suffering from deflation find it very difficult to deal with debt. The growth in the European Union’s debt-to-GDP ratio grew from 66% in 2007 to 93% in 2013. Greece and Portugal endured debt-toGDP ratios of 175% and 124% in 2013, respectively. Furthermore, roughly 25% of firms in Portugal experienced debt five times their earnings in 2013, starkly illustrating November 2014 | Quarterly Profit | 57
Lost in Translation: When it comes to developing brand presence on a global scale... .
..careful analysis is needed to prepare the brand for launch in a new market. Important aspects to consider in particular to the local market include the target consumers, the context in which the product will be used, cultural practices and informal social norms. In-depth research and test markets can save companies the negative impact on brand reputation, not to mention time and thousands of dollars of investment spent, that result from marketing campaigns which prove to be nothing more than an inside joke — one that local consumers, not so much the companies, will be in on. Some of the well-known multinational companies we know and love today did not always start off on the right foot. Check out ten international marketing blunders that these companies probably do not want to relive.
When Gerber’s, a Nestlé-owned purveyor of baby food, first started selling in Africa, they used the same packaging as in the USA with the cute baby on the label. Later they discovered that African companies routinely label packages with pictures of what was inside the package, since many people cannot read.
Kellogg’s had to rename its Bran Buds cereal in Sweden when it discovered that the name roughly translated to “burned farmer.”
Being new to the Chinese market in the past, Coca-Cola intended to name their product something that, when pronounced, would sound like “Coca-Cola.” However, the characters that were used meant, “bite the wax tadpole.” After learning this, the name was changed to a set of characters meaning “Happiness in the mouth.” In the 1970s, American Motors tried to market its new car, the Matador, based on the image of courage and strength. However, in Puerto Rico the name means, “killer,” and was not popular on the hazardous roads in the country.
In Italy, a campaign for Schweppes Tonic Water mistakenly translated the name into, “Schweppes Toilet Water.”
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Words by Julia Dinh
TEN
Cross-Cultural Marketing Blunders Made by Multinational Companies
In the late 1980s, KFC first opened in Beijing, China and accidently translated its slogan “Finger-lickin’ good” to the less appetizing “Eat your fingers off”. KFC seemed to have bounced back pretty well as it has been the number one quick-service restaurant in China, with more than 4,400 restaurants in over 850 cities.
When PepsiCo advertised Pepsi in Taiwan with the slogan “Come Alive with Pepsi”, they didn’t realize that it would be translated into “Pepsi brings your ancestors back from the dead”.
Another blunder that shouldn’t be brought back to life: When Ford launched an advertising campaign in Belgium, the tagline that executives thought would mean, “Every car has a high quality body,” instead turned out to read, “Every car has a high quality corpse.”
There are several examples of companies getting tangled up with bad translations of products due to the word “mist.” “Irish Mist” (an alcoholic drink), “Mist Stick” (a hair curling iron from Clairol) and “Silver Mist” (a Rolls Royce car) all fell victim to the same word, which in German is slang for “manure.” Not very appealing.
Marketing blunders have happened to companies based outside of North America too. Hoping to demonstrate its vacuum’s power, Swedish vacuum manufacturer Electrolux translated its slogan into English as, “Nothing sucks like an Electrolux,” for an American advertising campaign. Though the slogan may have been grammatically correct, it never really caught on with American consumers.
The lesson to be learned here... ...which all marketers can recite, is: know your market. Analyzing how elements of a brand are impacted by culture and then catering the brand to local consumers can, quite literally, make a world of difference. Needless to say, these companies have learned from their mistakes along the road to success and won’t be looking back! November 2014 | Quarterly Profit | 59
McMaster DECA U Case Comp WORDS BY MONICA PATRICIO
On November 1st 2014, McMaster DECA U hosted the 2014 McMaster DECA U Case Competition (MDCC). The event was held at the Ron Joyce Centre in Burlington. The Faculty and staff at the Ron Joyce Centre and the DeGroote School of Business have been a vital part in the planning and organization of this event. The growth of McMaster DECA U has allowed the organization to continue hosting MDCC as an invitational for its second year. It was pleasure to have other DECA U chapters join the competition this year which include delegates from the University of Guelph, University of Guelph-Humber, University of Waterloo, and Wilfred Laurier University.
ness Marketing, Fashion Merchandising and Marketing, Finance, Human Resource Management, International Marketing, Management Consulting, Marketing Management, Restaurant and Food Services, Sports and Entertainment Marketing, and Travel and Tourism. MDCC is structured as a traditional DECA-style case competition, wherein delegates are presented with a business case challenge and are required to create and present a viable solution to a client or a judge immediately. Either individually or with a partner, this is all done within a time limit that allow delegate(s) to think and act quickly while demonstrating their ability to pose a creative, effective and innovative solution in a matter of minutes. Over thirty business professionals McMaster DECA U members attend weekly training hailing from prestigious companies and organizations meetings with the McMaster DECA U executive team such as PricewaterhouseCoopers, Scotiabank, Loblaw who help train members according to their specific cat- Companies Limited, Deloitte Canada, BMO Financial egories which include: Accounting, Business-to-Busi- Group, RBC Royal Bank of Canada, and more were in 60 | Quarterly Profit | November 2014
petition attendance. Furthermore, this year’s MDCC could not have been a success without the generous support of the following companies and organizations: Scotiabank, Project Management Institute (Lakeshore Chapter), Beckett Lowden Read, Chippingham Financial Group, Canadian Association of Management Consultants (GTA Chapter), and Kaplan Test Prep. MDCC is more than just a competition; it’s also a learning opportunity. In addition to competing, delegates attend workshops wherein they gain insight on various business related topics. This year, in partnership with the McMaster Student Success Centre, Ms. Nadia Eghbali (@NadiaEghbali) spoke to delegates on the importance of personal branding and how to properly approach it, especially when considering professional avenues such as LinkedIn. She spoke about the importance of being able to visualize what you want, and where that lies in
both your personal and professional life. The evening concluded with Mr. Paul Nazareth (@UinvitedU) as the keynote speaker, who shared his expertise on career development. He emphasized the importance of clearly communicating your goals and integrating a networking mindset, but more importantly, his final take-away message to the delegates is that “you only live once, but life is long [and your] short term job search should be career driven.” Above all else, McMaster DECA U strives to continually find ways to help their members pursue personal and professional growth by providing a number of avenues through MDCC. McMaster DECA U would like to give a final thank you to all sponsors, judges, and delegates, whose continued support made this year’s MDCC a resounding success. McMaster DECA U hopes to see all of you again at MDCC 2015! November 2014 | Quarterly Profit | 61
Versace 2014 Milan Fashion Week
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Fashion Week: Who Cares?
WORDS BY RACHEL MOSTERT
“’This... stuff’? Oh. Okay. I see. You think this has nothing to do with you. You go to your closet and you select... I don’t know... that lumpy blue sweater, for instance because you’re trying to tell the world that you take yourself too seriously to care about what you put on your back. But what you don’t know is that that sweater is not just blue, it’s not turquoise. It’s not lapis. It’s actually cerulean. And you’re also blithely unaware of the fact that in 2002, Oscar de la Renta did a collection of cerulean gowns. And then I think it was Yves Saint Laurent... wasn’t it who showed cerulean military jackets? And then cerulean quickly showed up in the collections of eight different designers. And then it filtered down through the department stores and then trickled on down into some tragic Casual Corner where you, no doubt, fished it out of some clearance bin. However, that blue represents millions of dollars and countless jobs and it’s sort of comical how you think that you’ve made a choice that exempts you from the fashion industry when, in fact, you’re wearing the sweater that was selected for you by the people in this room from a pile of stuff.” - Miranda Priestly, The Devil Wears Prada
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Armani 2014 Paris Fashion Week If you think that Fashion Week is important only for those elitist upper class divas or those immersed and involved within the fashion industry, think again. New York Fashion Week is come and gone and I’m here to tell you why it matters. Did you know that New York Fashion Week’s value to New York City is somewhere around $865 million (Vanessa Friedman, Financial Times Fashion Editor)? Did you know that it is the second largest industry in New York City besides finance (Steven Kolb, CEO of the Council of Fashion Designers of America)? With that kind of reputation, Fashion Week must be important to a lot of people. But why is it important to you? How does Fashion Week fit in with the business lifestyle? Fashion Week has become something that is no longer only accessible to the privileged. In a world centered on the emergence of digital marketing and sharing, Fashion Week has become accessible and relevant to everyone. Some designers, such as Rachel Roy, even chose to showcase their lines digitally rather than in the traditional runway style. Inaccessibility isn’t an excuse anymore. Everyone with access to the World Wide Web can be a part of Fashion Week, and in a participation generation such as ours, this accessibility is what people have been looking for. This increased accessibility means that Fashion Week is entirely relevant to everyone. Fashion Week is exemplary in the process of creating a personal style and identity through fashion. Fashion Week and other runway shows are the only time that we, as consumers, can see the designers’ true vision for their piece. Although the outfits modeled on these runways are often over-exaggerated, overpriced, and impractical, this doesn’t mean that they aren’t relevant. Precisely the extravagant nature of runway clothing is what makes it a show. Designers do not create runway looks in the hopes that everyone in New York City will be wearing those exact pieces. Instead, these looks are created to attract attention, and that they do. 64 | Quarterly Profit | November 2014
New York Fashion Week receives some of the most dedicated coverage while it is on. Oscar Wilde once said that, “the only thing worse than being talked about is not being talked about.” Specific looks and designers are remembered for years to come for their bold and daring attempts at publicity and, following this, their revolutionary ideas in the fashion industry. This is primarily what Fashion Week is about: ideas. The fashion industry is one that combines a serious art form with the business of commerce. The designers present their ideas and their creativity in order to gain your attentions and to sell their product. Like almost everything else in predominant capitalist society, fashion operates under the umbrella of commerce and profit. Though the runway looks may be a bit too bold for real life, these looks foreshadow that which will come in the future as well as what you will wear in the future. Fashion shows exhibited through Fashion Week are to give onlookers a taste of the trends that will be present in retail in months to come. Style and colours that we choose to wear can signify what we stand for, for example the scarlet flags of communism or the purple, white, and green colours of the suffragettes. We choose to dress ourselves in a way that mutually expresses who we are as human beings and makes us happy at the same time. Fashion Week is a big part of this. All ideas about how we should dress and what makes us look professional, put together, and clean stem from origins laid out in Fashion Week. The influence of the fashion industry and Fashion Week itself are unavoidable. To think that fashion is irrelevant in your life would be naïve. Your future employers, peers, friends, and family, will inadvertently attach what you wear and how you style yourself to who you are as a person. Fashion Week keeps us informed and is really an indication of what’s going on in the world at a particular time. Fashion influences every part of our lives, from commerce to culture to music and the everyday lives of people around the world. Q
A Step-by-Step Guide to Being Globally Aware WORDS BY LAUREN ZYLIK
Cross-cultural differences influence all forms of communication; from the way we greet each other to the way we eat a meal. As the world is becoming increasingly interconnected, business people are urged to become more aware and knowledgeable of the many cultures they are dealing with. Even if a business isn’t directly stationed in another country, chances are someone in their supply chain is. It is crucial to be aware of cultural differences that may affect any part of a business and to be sensitive to that issue. Here are ways to make yourself more knowledgeable and aware of other countries and cultures you may become connected with.
Stay Informed
The easiest way to connect and relate to someone from another country is to talk and ask questions about current events. Whether it’s a tragic event, a natural disaster, or a political debate, bringing up current issues brings people together to speak their opinions. By listening and learning about currents events, you can get a sense of the culture by how the country functions. You also get a sense of what seems like a normal occurrence in a culture and what seems like a shocking event. In some places, a shooting or a robbery may be a common
occurrence and may not come as a shock to someone who’s lived there all their lives, whereas in other places it could be a huge tragedy. If you’re travelling on a business trip, you’ll also want to be aware of any issues going on that may be a threat to whatever you’re trying to accomplish or your safety.
Benefits of Multiculturalism in the Workplace: • Increased adaptability and flexibility in terms of problem solving • Wider service range from a collection of different skills and experiences • Greater variety of viewpoints Take advantage of the fact that you’re living in a time where we have limitless access to so much global information through the Internet. There is no reason for you to be unaware of what is currently going on in any particular country. All the information you need is right at your fingertips.
Educate Yourself
Learn as much as you can about a country before attempting to connect with it. Read up about the legal November 2014 | Quarterly Profit | 65
system, how the economy works, any new technological advances that have taken place and anything else you can find. Don’t get caught in a situation when your lack of research causes you to offend someone and make yourself look bad. Always be armed with information. Of course you can’t find all the information you need from the Internet, and in that case it’s alright to ask questions. Most importantly, understand that there will be many differences from Canada, and no matter how much you may disagree with how another country functions keep your opinion to yourself and accept the differences.
Challenges of Multiculturalism in the Workplace: • Communication difficulties may arise • Workplace policies may have to be altered • Resistance to change from some employees
horizons and help you develop acceptance for those who are different than you. You’ll have a new perspective on life, determining what you love about your life and what you feel you can change.
Develop a Curiosity for Different Cultures
Accept and be excited about the diverse demographic make-up of your school/workplace. If you take an interest and ask questions about a culture you don’t know much about, you may come to enjoy and have a lot more in common with a culture than you thought. Jawaharlal Nehru, the first Prime Minister of India once said, “Culture is the widening of the mind and of the spirit.” There is so much worldly intelligence to gain from other cultures, and it’s a shame that most of us stay in our own little bubbles and miss the chance to explore and discover the world. Don’t waste one more second being ignorant of all the cultures you’re surrounded by. Open your eyes and your mind to the vast diversity amongst the people you study and work with.
Experience It!
Get a taste of a culture in as many ways as you can before actually going there. One way to do this is to try out an ethnic restaurant in your town. You get a chance to try some food from that country, see how people from that place normally eat it, and you may even learn a few words through any dishes written in a different language on the menu. Food explains a lot about a country, from its landscape to it’s religious rituals. Take advantage of this tasty way of getting acquainted with another culture. Going to cultural festivals and events is another fun way to immerse yourself in a different culture. Festivals are usually based upon a country’s history or religious rituals so a lot of knowledge can come from attending one of these. Watch, listen, and learn from people at these events. They’re often your best source of information about a culture. Being taken out of your comfort zone and experiencing a different culture is a great practice. It’ll broaden your 66 | Quarterly Profit | November 2014
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Consider Learning Another Language Learning another language gives you major employment prospects and gives you a competitive edge when applying for jobs. Knowing another language opens up doors for travelling opportunities for you job, not to mention that it gives you incredible insight into a culture as well. You’ll be able to connect with a culture in ways you never have before, through TV, newspapers, and the Internet. If learning a whole new language seems like a daunting task, at least make the effort to learn a few common words or phrases, especially if you ever plan to visit a place. Apps on your smartphone like Duolingo give you the ability to learn a language from the palm of your hand!
PERSONAL DEVELOPMENT
GET INFORMED OUTSIDE THE CLASSROOM WORDS BY LAUREN ZYLIK
Giving you a cultural twist, these books and talks focus on the globalization and interconnectedness of today’s business world. Aspects including the way we eat, greet, negotiate, and communicate ideas are addressed, as all of these are vastly distinctive among cultures around the world. Business is becoming more and more international. Without being aware of cultural differences, you will not go far in this globalizing business world. Read up and inform yourself on some of these important cultural variations in business.
BOOKS
Trading Places: The Airport Economist’s Guide to International Business Tim Harcourt (2014)
Tim Harcourt takes you around the globe, talking to businesses, governments, union officials, NGOs and others in the community to understand what makes each economy tick. He reveals where the opportunities are, identifies the risks, and provides insider tips on doing business in each destination. This novel is essential reading for business travellers, students of economics or business, and anyone who wants to understand the complexities of our modern globalized world.
The World Is Flat: A Brief History of the Twenty-First Century Thomas Friedman (2005)
Friedman’s account of the great changes taking place in our time, as progressive advances in technology & Check out inspirational and educational speakers at communications put people all over the globe in touch tedtalks.com. Here are a few recommendations: like never before. With his ability to translate complex foreign policy and economic issues, he explains how the flattening of the world happened at the dawn of the 21st century and what it means to countries and companies.
The World’s Business Cultures: And How to Unlock Them
Don’t Insist on English! / Patricia Ryan
Barry Tomalin, Mike Nicks (2010)
Developed from their experiences with the business cultures of many nations, Barry and Mike provide the essentials that will enable any business traveler to come How Ideas Trump Crises / Alex Tabarrok to a full understanding of cultural differences in communication, negotiation, partnerships, socializing, incentives and rewards. The book provides a framework for understanding any culture in the world, but specifically focuses on China, India, Brazil, Russia, UK, Germany, Italy, France, Japan and the USA.
The Worldwide Web of Belief and Ritual / Wade Davis November 2014 | Quarterly Profit | 67
CENTRE FOR BUSINESS CAREER DEVELOPMENT: WINTER TERM WORKSHOPS
Keep an eye out for when these great upcoming workshops will take place! Check out the Business Events tab on OSCARplus for more details near the Winter term.
Networking 101
Ensuring Your Worth Negotiating a Job Offer
Beyond the Big 4
Cover Letter Workshop:
LinkedIn Workshop
Overview of Capital Markets
Resume Workshops
Who Am I?
Networking is an essential career development skill required to effectively participate in recruit- Negotiating a job offer can be an intimidating and ment events. If you are nervous to speak with po- nerve-wracking experience, whether it’s your first tential employers, don’t know what to say or how time, or your tenth. Learn effective tools for sucto make a positive lasting impression, we can help! cessfully negotiating an offer.
Gain an understanding of the CPA career op- Learn the critical components for creating a powtions that are available outside of the Big 4 erful cover letter that will catch an employer’s ataccounting firms. tention! Come for an informative discussion on how to make LinkedIn a central part of building your network of contacts, and ultimately using it as an effect job search tool.
Students looking for opportunities within the Capital Markets industry will benefit from this introduction to and discussion about Capital Markets recruitment.
Learn the critical components for creating a power- Play a fun and interactive self-discovery board ful resume that will catch an employer’s attention! game with your peers where you will identify your skills, abilities, interests and desires, and create a personalized career profile to help guide your caInterview Workshop reer exploration. Gain confidence and insight into how to excel in your next interview. Discover skills and tips for CBCD Ettiquete Dinner putting together well-crafted interview answers. Enjoy a delicious meal and learn proper etiquette from an expert.
Connect with CBCD!
DeGoote School of Business - DSB 112 | Monday to Friday, 8:30am - 4:30pm 905-525-9140 ext. 68Telephone: | Quarterly Profit | November 2014
24611 | Email: cbcd@mcmaster.ca | Website: cbcd.degroote.mcmaster.ca Facebook: facebook.com/degrootecbcd | Twitter: @DeGrooteCBCD
Originally posted on http://bizalumni.degroote.mcmaster.ca/your-degroote-global-network/.
Canada is home to about 90% of our alumni, with the majority in Ontario. DeGroote alumni can be found in almost 100 countries around the world and each year at convocation the DeGroote alumni community grows by 400-500 new members. [Above] you can see our numbers as of July 2013.
Your DeGroote Global Network
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