WHARTONASIA JOURNAL

Tourism EditionVolume 6 | Spring 2012

IN THIS ISSUETourist Locations in Asia

Thailand, the Philippines, Hainan, and Dubai

Spring Break in Singapore!

The Economic Situation in EuropeThe 2012 London OlympicsGreece

OCR for Dummies

BONUS MBA Bookletand

Wharton Asia Exchange

Cover image: http://simplyfabulicious.blogspot.com/2010/05/breakaway-kids-camp-in-hainan-island.html

TABLE OF CONTENTS

LETTER FROM THE EDITOR JOURNAL STAFF

2 ....... Freshmen Summer of Freedom Jessica Xu

3 ....... Tourism: More Fun in the Philippines! Paulo Bautista

4 ....... Tourism in Thailand: It’s Not Just about the Beaches and Temples Kasidis Chutima

5 ....... Dubai and Tourism: Rise or Demise Emily Jun

7 ....... The Hawaii of the East: Hainan Island Salina Lee

8 ....... Spring Trip to Singapore Robert Ou 11 ..... The 2012 London Olympics: Economic Boon or

Bust? Robert Li

13 .... The Euro Crisis: Too Long Illness Jong-Hoon Kim

15 .... OCR for Dummies Tina Sun

17 .... WAX Spotlight Asia Week Recap

18 .... MBA Booklet

26 .... Sources

1

We are proud to present to you the sixth issue of the Wharton Asia Journal. This semester was very eventful with the Spotlight Asia Week, which was one of the most successful events in WAX history ever. In this issue of the Journal, we have worked throughout the semester under one broad topic: tourism industry. While reading this issue, try to remember the delightful moments you might have spent during spring break or during your past travel experience. And after you finish reading it, you will get to better understand what tourism industry is really about and its hidden side. This can even give some tips or advice for those of you who enjoy travelling and are planning to take a trip over the summer vacation. In ad-dition, this issue will also share some very talented MBA students’ experiences and the lessons they have learned throughout their careers in the consulting and finance industries.

I would like to thank the Journal Staff, WAX Board, the interviewees and all the contributors for their time and effort. This would not have been possible without the help from each and every one of you. Please also check out our website www.whartonasia.net/journal for more information and don’t hesitate to contact me at jonghkim@sas.upenn.edu with any inquiries or suggestions.

With warmest regards,

Joon-Hoon Kim

7 13

3

8

17

Editor-in-ChiefJong-Hoon Kim

Managing EditorsSalina LeeRobert Li

Director of LayoutsJessica XuEmily Jun

Student AdvisorsYuan-Jun YuHenry Ren

Two weeks into your first semester at Penn, you know.

You know that talk of careers and jobs is what grounds Penn and gives it the ability to function, that info sessions and interviews will be on your mind for almost all of your waking hours, and that the rest of your life will be determined by your first post-college job. You know that Finance and Consulting are the best-paying, most attractive, and indeed, only existing careers to pursue. And most of all, you know that you will have to get an early start, and the best way to gain a competitive edge over your peers is to se-cure a Freshman summer internship while the rest of your class wastes their summer away.

Relax.

While having an internship during your Freshman summer may potentially give you an advantage, it is not quite as roman-tic or idyllic as it sounds. To begin, very few firms are even willing to hire Sopho-mores, let alone Freshmen who have very little experience or exposure to the skills and concepts needed for the job. Thus, even when Freshmen are hired, often times it is to do the grunt work with very little practical gain aside from a new line on their resumes.

Perhaps to some, this small benefit is worth it. But summer is freedom, and Freshman summer is the last summer for a couple of years that you will NOT have to sacrifice for internships and other career advancement programs. This, in effect, is the last summer in which you will get to choose what to do and where, without regard to how it will make you a more attractive job can-didate. Although I would not recommend spending it glued to a TV for five out of seven days a week, there are plenty of other alternatives besides business internships that you should consider. The one, in my opinion, with the most worthwhile satisfaction, is traveling: gaining new experiences before you get tied up, spend-ing quality time with family before life gets out of control, and creating new stories that are far more valuable than the ones you would have from most internship experiences as a Freshman. The

college years provide a limited opportunity to explore the globe, and the most frequent regret that graduates have is not having gone abroad. Sadly, college only gets busier from Freshman year on and chances to travel disappear behind more and more obliga-tions as the years go by, so take the time to go abroad while you still can.

Most importantly, no matter where you go, you will gain a new palette of cultural experiences, fresh insights, and delicious cui-sine. These all weave together to form intricate stories that you can carry for a lifetime and which give you a new lens through which to view the world. It is often said that, more than fancy em-

ployment descriptions, stories of learning experiences and personal growth are the most important distinguishing factors for an interview, and these are precisely the stories that you will collect while travel-ing. Twenty years later, it is the trip to Greece where you almost got pickpock-eted (true story) or the strenuous but gorgeous early morning climb up Machu Picchu that you will still be talking about, not your first corporate experience after Freshman year.

Traveling, however, is understandably difficult in terms of finan-cial and time constraints. However, the point is not just to take an extended vacation with resorts and tourist traps, but simply to explore something new. A viable and rewarding option for many students is participating in global volunteer programs such as Penn International Business Volunteers or Penn Microfinance. Summer is also an ideal time to study abroad through Penn Sum-mer Abroad or independent universities. Excellent summer op-portunities are everywhere, and all you have to do is look past the Penn internship bias.

So be it studying abroad, visiting international relatives, or tak-ing a family trip through Europe (my personal choice), be open-minded and keep the option open for the summer after Freshman year. Everyone has different traveling experiences that leave one with different effects, but whatever it is, I can guarantee that it will not be regret.

By Jessica Xu

2

Freshmen Summer of Freedom

With over seven thousand islands (mean-ing at least seven thousand beaches), the Philippines is certainly a country rich in both natural resources and historical value. From its mixed origins of Span-ish, Malay, Muslim, Chinese, and Ameri-can influences, it is quite unlike any other country in Asia. The same can be said of its tourism industry. While any country will have its regional quirks and differ-ences that allow for a variety of sights for tourists to see, the archipelagic na-ture of the Philippines means that one needs simply to sail over to another is-land to experience something totally dif-ferent. This, combined with the afore-mentioned wealth of history and natural beauty, offered the Philippines the great

opportunity to benefit from the annual 4 million tourists to the tune of 4.3 billion USD in 2011. As Black Eyed Peas and Filipino artist Apl.de.Ap croons, “Take me to the Philippines!”

There are a number of themes that be-come apparent the more one travels within the Philippines. One is the idea of centralization. Consider a tourist visiting Florida. One could certainly visit Orlan-do and its many theme parks. However, it is not the only option. Miami, Tampa, St. Augustine, Daytona, and Key West are all viable entry points for the aver-age tourist seeking to explore the state.

However, when I visited the island of Bohol (the 10th largest island in the Phil-ippines), there was only one major urban city (Tagbilaran City), with a population of less than 100,000. Since the airport is located here, all tourists enter the island via this city. This has caused the roads on the island to develop in a looped manner by which one can drive around the island on a circuit and see all the major attrac-tions along the way. This both preserves the natural beauty of the island by pre-venting the spread of urbanization and allows tourist services a convenient geo-graphic location to base their operations.

Another theme is the concept of special-ization. While the Philippines has a mul-titude of sites to see, it seems as if each island has their own specialty. When you go to Bohol, you see the Chocolate Hills and the tarsier. When you go to Tagay-tay, you see Lake Taal. When you go to Villa Escudero, you eat lunch at the wa-terfall dam restaurant. When you go to Corregidor, you take the tour of WWII memorabilia left on the island. This spe-cialization is further emphasized because different regions have different festivals (usually in honor of a local patron saint) and their own unique customs and tra-ditions. Similar to how centralization al-

lows tourist services to focus their base of operations, if tourists expect a certain experience from one location, it allows companies to focus their services to the few local attractions rather than trying to do everything. This improves services and quality.

Of course, there are still challenges to be faced by the Filipino tourist industry. Since the Philippines is a nation com-prised of islands, it has fewer travelers on average than countries such as Sin-gapore, Thailand, and Vietnam which, as contiguous countries, allow individu-als to cross their borders and essentially “share” tourists. In addition, while cen-tralization allows the base of service

providers (hotels, restaurants, conve-nience stores) to be located in one place, the infrastructure needed to reach each local attraction during the day must be improved, from the quality of the roads to the vehicles used to get there.

Overall, while the Philippines may have challenges to grow its tourist industry, it has the potential, due to the sheer vol-ume of sights to see, to be a fabulous vacation spot. As the most recent tour-ism campaign (which has gone memetic – just Google it) from the Department of Tourism states, “It’s More Fun in the Philippines!”

image here

Tourism: More Fun in the PHILIPPINES!

3

By Paulo Bautista

From left to right: the Capital City, Manila | Lake Taal | the Chocolate Hills.

Tourism plays an important part in Thai-land’s economy, accounting for about seven percent of the country’s gross do-mestic product. The country, located in the heart of Southeast Asia, hosted 15.84 million visitors in 2010, and the composi-tion of the tourism industry in Thailand is complex and unique. On top of its beauti-ful sands and majestic palaces, Thailand is a growing destination for two other reasons: those seeking vacation homes as well as those seeking medical treatment.

Recently, travelers from overseas have es-tablished vacation homes in Thailand. The country is famous for its stunning natu-ral landscape, from the mountains to the seas. Due to its moderate climate in the winter, Thailand serves as a winter holi-day retreat for many foreigners. The most popular destinations are the mountain-side Chiang Mai and Kao Yai, the coastal Hua Hin and Pattaya, and the islands of Phuket and Samui. These picturesque Thai homes are very attractive to those from colder regions who seek an escape from harsh winters. Most visitors

choose to rent a house or a con-do, ranging from $300 to $1500 per month. More wealthy and frequent visitors will buy or even build a house to accommodate their entire family.

These buildings often incorporate Thai architecture and are priced from $500,000 to $3,000,000. Thailand has managed to respond well to this trend by developing infrastructure catered to the tourists such as spas, golf courses, and bars.

Aside from being a vacation spot, Thailand has also become a popular destination for people seeking medical treatments. Over the years, hospitals in Thailand have de-veloped their technological capabilities. The structure of medical personnel in Thailand is unique and allows for more efficient treatment. The highly skilled and internationally-trained doctors take on multiple assignments rather than being on contract with one hospital. This system allows visitors to make appointments and receive advanced treatments easily and quickly in comparison to many countries. The lower cost for medical treatments in Thailand is another major factor for med-ical tourism. For instance, in 2009 a quin-tuple bypass in Louisiana costed around $100,000, but only $12,000 in Thailand.

This particular surgery was done by a Thai doctor who had practiced at the US National Institute of Health, which in-dicates that the quality of surgeries per-formed in Thailand is highly comparable to that of surgeries in the United States. This treatment, even with added accom-modation and travel expenses, would still be cheaper than the cost of treatment in the United States. This cost difference can be seen across most Western na-tions. Many visitors believe that combin-ing medical treatment with a vacation is an even better deal. Hospitals also have private rooms decorated as if they were hotel rooms, making the experience more of a retreat than a medical trip.

Other than beachside resorts and enrich-ing temples, vacation homes and hospi-tals have become vital parts of Thailand’s tourist industry. This is made possible by the country’s low labor expenses and its lower cost of living. Although many countries have the same advantage, it is the attitude of the Thais that makes a dif-

ference. Thai people strive to give

tourists the friendliest and highest quality service possible in order to encourage returning vacationers. This “service with a smile” value

drives Thailand’s longstanding reputation as a popular tourist destination.

By Kasidis Chutima

TOURISM IN THAILANDIt’s Not Just about the Beaches & Temples

4

From left to right: Long-tail boat | Wat Phimai Khmer Temple Historical Park | Bang Pa-In

Dubai. The mere mention of the bur-geoning city’s name brings to mind a number of words: wealth, tourism, para-dise, and luxury among countless others. Located in the well-known United Arab Emirates, this cutting-edge metropolitan city serves as a technological and finan-cial hub of the Middle East. In the mid-1960s the discovery of oil catapulted its economy, bringing in workers from neighboring nations. Though its fast-growing fortune attracted tourists from around the globe, there was talk towards the end of 2008 of the city’s certain downturn. Could the roaring urban cen-ter that was providing banking and trade services to firms worldwide suddenly lose all its riches? Recent statistics from GMA News show that this hot spot is still warm—at least for 2012, Dubai’s economy will increase “despite a contin-ued decline in construction.”

Since the 1990s, the appearance of ho-tel construction, encouraged mainly by Emirates Airlines, has brought about a myriad of developments in Dubai and its surrounding emirates. The world’s tallest building, the Burj Khalifa, tow-

ers over the city-state at more than 2,000 feet. Portrayed in Hollywood’s Mission: Impossible—Ghost Protocol as a sand

storm-stricken structure, it stands as the duly recognized symbol of Dubai as an up-and-coming international power. But its developer, Emaar Properties, has fall-en 2.4 percent in shares.

At the start of 2008, real estate was booming: house prices “rose by 43 per-cent in the first quarter” of the year (The Daily Beast). But behind this rapid escalation was a disconcerting reality; the area that was once a desert was not solely built by the omnipresent Sheikh Mohammed, leader and face of Dubai’s growing capital. Dubai was, and still is, the product of millions of imported workers, treated as slaves, who view their work as “the worst in the world” and the city they live in as a living “hell” (The Independent). In 2009, The Indepen-dent reported that many construction projects were left half-finished and in-complete.

Yet the past three years have allowed for some recovery as Dubai secures its place in the Persian Gulf. The nearby Abu Dhabi, the largest of seven emirates, bailed Dubai out in 2010. After this

DUBAI AND TOURISMRISE OR DEMISE?

5

The Burj Khalifa, the world’s largest building.

By Emily Jun

Top: the Dubai Mall, show-casing its indoor aquarium Middle: plan of the cancelled

Trump TowerBottom: construction of

skyscrapers.

6

episode, finances for the globetrotter seem to be steadily looking up. Current results prove that Dubai is faring quite well, and in 2011, due to more effective hotel management strategies, the num-ber of tourists expanded. Dubai’s De-partment of Tourism and Commerce Marketing, responsible for expanding efforts in the networking, travel, and tourism sectors, has done its job—and lucratively so—as shown by a ten per-cent increase in hotel guests and cruise passengers from 2010 to 2011 alone (eTurboNews.com).

The DTCM, by utilizing initiatives that endorse Dubai as a profitable business core, is slowly yet surely advancing the city-state’s reputation. According to Gulf News, “better infrastructure and lower room rates” are the main ingredi-ents for Dubai’s recipe for success, po-sitioning the emirate at a number one ranking for global hotel occupancy, beat-ing other bustling cities such as Hong Kong, Paris, and Los Angeles. Guests come from every corner of the globe, flocking from locations such as Saudi Arabia, the United Kingdom, India, and

the United States.

Though for the vacationer, Dubai is an oasis amidst the Arabian Desert, it is still faulty when one looks at consum-er spending. Despite the fact that the emirate prides itself in hosting the co-lossal Dubai Mall (biggest in the world, boasting a shark-filled aquarium), and the luxurious Armani Hotel (decorated and designed by the luxe couturier Gior-gio Armani himself), Bloomberg L.P.’s online site claims, “it’s difficult to see buyers coming into this environment.” Real estate has not been restructured since its original acme at the beginning of 2008; prices are currently only half of what they once were. Dubai’s bench-mark stock index indicates its shares are at its lowest in seven years, meaning in the near and far future, it had better be on the lookout.

Dubai is still a prosperous, heavenly ven-ue for foreigners to visit—but be wary of its unstable fluctuations in the market and dwindling real estate rates, for this dreamworld can easily bounce back into an unpleasant reality.

Opposite page, from left to right: the only seven-star hotel in the world, the Dubai Al Arab, Dubai skyline, construction of the Burj Khalifa, and the Palm Jumeirah.

China’s at it again. Real estate plans, high-end resort construc-tion, and a flurry of tourism advertising are being propelled into Hainan Island’s transformation as the perfect beach relax-ation destination in the Eastern Hemisphere. By 2020, Hainan Island hopes to rival other global tourist locations such as Ha-waii and Bali as a premier island hotspot.

Hainan Island, the size of Bel-gium, is located in the southern part of China. The is-land boasts beautiful and pristine beaches as well as excellent air quality, making it a tar-get location for tourists from around the world. Seeing such potential

for tourist revenue in Hainan, China made Hainan Province a Special Economic Zone in 1988 with the hope of promoting foreign investment and economic growth. Despite early efforts to transform Hainan’s major cities into industrial economies throughout the early 1990s, the real estate industry and construction plans burst and its economy stalled. Only in the past few years has Hainan been reestablished as an area worthy of development and economic stimulation and as another location in Chinese where business can flourish. Taking advantage of Hainan’s natural Hawaiian features of clear blue water, white sand beaches, and a jungle backdrop, China announced in 2010 renewed initiatives to market Hain-an as a tourist attraction. New infrastructure, luxury stores, and extravagant hotel resorts (including megaprojects like golf resorts and spa villas) have been dominating the Hainan scene as investments pour in to market Hainan. Tourism is booming

as international businesses look for potential investments in the fast rise of this new China project. Property sales prices of Sanya and Haikou, Hainan’s biggest cities, have skyrock-eted as affluent Easterners purchase real estate in prime lo-cations on the island. The hype surrounding Hainan has led to insecurity from local residents who watch their hometown get revamped for global competition. Housing prices are in-creasing exponentially as corporations vie for real estate. This spurt of economic growth in transforming Hainan has been

criticized as another bubble that will not be sustainable. While Hainan’s push for tourism faltered in the 1990s, this second chance could be just what it needs to reach global recognition as the vacation paradise.

Without a doubt, Hainan is in the future of continuing de-velopment in China. The question is whether or not the at-tractiveness of Hainan will stick. Can Hainan be the Hawaii of China? Or will it be a fanciful Dubai with megaprojects and grandiose expectations? Only time will tell.

HAINAN ISLAND By Salina Lee

By 2020, Hainan Island hopes to rival other global tourist

locations such as Hawaii and Bali as a premier

island hotspot.

The Hawaii of the East:

Top: The Mandarin Oriental Hotel in Sanya, HainanCenter from left to right: Sanya Jin Ling Resort, Hainan | Map of Hainan’s location |

Beach of Sanya, Hainan

7

SINGAPORE

8

By Robert Ou

SPRING TRIP to

Our excursion this year to Singa-pore, Singapore from March 3rd to 11th was a fantastic fulfillment of WAX’s mandate to organize an an-nual Spring Trip to Asia and a stun-ning glimpse of the most prosperous island on the other side of the world.

On Sunday evening, after a 24-hour journey, we stepped out of the air-port into balmy, 85-degree, and 95% humidity weather befitting of a tropical paradise. Where to even begin? Not one of us was Singapor-ean, and what little knowledge we had of this tiny strip of turf came from AP Human Geography, Wiki-pedia, and those lucky friends who actually knew the place and offered their recommendations. Like classic gawking and camera-toting Ameri-can tourists, we went sightseeing in the heart of the financial district and hit all of the landmarks including the enormous water-spouting Merlion statue, the Marina Bay Sands Hotel and Casino, and the blindingly lux-urious shopping district at Orchard Road. On Thursday, we relaxed for an entire day at the beaches of Sen-tosa, a picturesque island resort that also includes the southernmost

point of continental Asia.Touristy activities are great, but we also wanted to immerse ourselves in the Singaporean lifestyle. Having to manage our own budgets was a great way for us to allocate our time and expenditures wisely. By the end of the week, we were comfortable tak-ing buses and Mass Rapid Transit (MRT) subways that put American public transportation to shame. We learned to orient ourselves to left-sided roads and escalators, though we weren’t able to pick up much of the local language because the coun-try was a melting pot of Malays, Chinese, and Indians who all spoke some combination of their dialect and English. We caught a taste of young, hip nightlife at Clarke Quay,

where it costs a fortune to enter clubs. Perhaps most memorably of

Where is a place that seems both wildly exotic and intimately modern? One word immediately comes to mind: Singapore.

9

10

all, we took our sweet time at meals, most of which were not in restau-rants but in “hawker centers” and food courts. These giant, sprawling spaces filled with stall after stall of the finest and cheapest local cuisine were heaven. It was possible to order up to four, even five, different cours-es, drinks, and desserts at a reason-able cost, allowing us to cross off all of the different foods we planned to try – like durian, laksa, ice kachang, and chendol – quite efficiently.

Of course, another goal of the Spring Trip was to learn about busi-ness and professionalism in Asia. At Deutsche Bank, we sat down with investment bankers and cur-rency traders to chat about Singa-pore’s role in facilitating financial transactions in high-growth Asian economies and differences between Asian and Western M&A deals. The day after, we visited Temasek Hold-ings, the largest sovereign-owned asset management and private eq-uity firm in Singapore, and spoke with Jonathan, a Wharton under-graduate alum who regaled us with Temasek’s impressive historical re-turns and a variety of investments in

Asia. We also went to strategy and financial services consulting firm Oliver Wyman, where partner Wol-fram Hedrich entertained us with more personal accounts of career development in consulting and in Asia. At each of these companies, our hosts received us cordially and enthusiastically. Because several of us were freshmen or sophomores, it was very helpful to have this oppor-tunity to consider different career choices and prepare for the recruit-ing process. We took away many useful pieces of advice, such as the importance of language skills and committing early to a career in Asia.

The cherry on top of all of these ex-periences was the visit to Singapore Management University, which has a philosophy and business curricu-

lum based on a decade-long collab-orative partnership with Wharton. Our ambassador tour guides led us through study areas and GSRs, and a large group of current students

who had previously studied abroad at Penn threw us the most incred-ible reception. It was great to get to know them, learn about student life at SMU, and make new friends. A few of them even spent the entire Saturday with us, dining with us at Waterloo hawker center and the Esplanade, showing us the National Museum of Singapore, and taking us to the sky deck of the Marina Bay Sands Hotel. It was the perfect way to conclude our adventure in Singa-pore – surrounded by friendly peo-ple, good food, and fond memories in a country you know you just have to come back to for another round.

The Olympics is a global icon. It brings the world’s nations together in a historic competition of each nation’s top ama-teur athletes. But for the host city of this renowned event, is it actually economically beneficial?

Sadly, history seems to indicate that at best, the Olympics leaves the host city in the same economic state as it was prior to the event.

In order to accommodate all the sporting events of the Olym-pics, cities typically invest in an expensive and luxurious sports stadium. They also construct “villages,” housing areas for all the athletes and coaches who have traveled to com-pete. Constructing these accommodations is highly costly, and cities often run into astronomical amounts of debt from building them. For example, costs for the Olympic Stadium used in the 1976 Montreal Olympics took the city’s taxpayers thirty years to pay off, a massive economic strain on the con-stituents of the city. In addition, these stadiums are usually designed to accommodate other activities after the Olym-pics, in order to help pay off debt and to ensure that the host city is not left with an unused stadium taking up enormous amounts of space. These stadiums are ideally an investment

not just for the Olympics, but also for future benefits to the city. Cities that already have spectacular sports stadiums are spared the economic hassle of having to construct such a sta-dium. For example, after their respective years of hosting the Olympics, Los Angeles (1932, 1984) and Athens (1896, 1904, 2004) were able to profit because they did not have to pay for

the construction of new sports stadiums specifically for the Olympics as the cities already had them.

The Olympics is also synonymous with an influx of visiting observers, but what does this mean for the economy of the host city?

11

THE 2012 LONDON OLYMPICS

Top from left to right: The Olympic Stadium for the 1976 Montreal Olympics | The “Spiros Louis” Olympic Stadium in Athens | Sketch of the 2012 London Olympic Stadium | Los Angeles Memorial Coliseum , 32 & 84

Bottom: Sketch of the inside of the 2012 London Olympic Stadium

ECONOMIC BOON OR BUST?To ensure that people are able to commute within the city, the city must undertake costs to either build or revamp transportation infrastructure. This is not necessarily a “nega-tive,” however, as better transportation is always beneficial for the city itself. Fortunately for London, it already has well-run and established transportation systems.

Visitors expect a mostly pollution-free city, so London may have to curb its smog emission and air pollution. This may have a negative impact on the economy if it is forced to stop factories and production in order to reduce the amount of smoke in the skyline. During the Beijing Olympics in 2008, the forced halt of factory production two weeks prior to the event caused production to decrease and negatively impact-ed China’s economy.

At first glance, the increase in tourism might lead one to be-lieve that local stores would thrive as a result, but this is far from true. People who would regularly visit the host city for tourist attractions often avoid the city due to the enormous

crowding of the people for the Olympics. Moreover, locals tend to avoid the city and seek other places to purchase goods and services because of all the traffic caused by observers of the Olympics. As a result, the increase in Olympic tourism does little to improve local economies.

It is really hard to gauge. Studies show that while GDP is higher immediately prior to and during this event, GDP post-Olympics tends to be lower than average. While this event does improve the image of the host city and provide temporary jobs for people, it does not seem to produce long-term advantages for economies. As a result, it is hard to make a compelling argument for a substantial improvement of London’s economy due to the 2012 Summer Olympics. Nevertheless, cities still vie for the opportunity to host the Olympics—if not for an economic boost, then at least for the global attention.

So what is the verdict on the impact of the Olympics on London this coming summer?

By Robert Li

12

Sadly, history seems to indicate that at best, the Olympics

leaves the host city in the same economic state as it was prior to the

event.

They barely dare say it, but the doctors are strangely confident: after a long ill-ness, the euro may be recovering. The Fi-nance Ministers’ all-night surgery for the past months to excise a festering lump of Greek debt went better than expect-ed. “We have put in place almost all of the elements we need to make the crisis gradually go away,” says one. “We may be beyond the acute phase, and could be making the transition to normalization.” It is the optimism of despair: the patient has not died, so improvement is certain.

Greece may now stabilize. Many are still skeptical, but consider the evidence: it must meet conditions to get its money and will endure years of pain. But the risk of chaotic default and exit from the euro has receded. Private creditors have taken a big loss, yet the markets are muted. Elsewhere, the signs are good. Italy is reforming, as is Spain. Most Eu-ropean Union countries have agreed to a new fiscal compact that will strengthen budget discipline. The European Central

Bank (ECB) has averted a credit crunch by injecting liquidity into banks. And the defenses against contagion may soon be boosted. On March 1st, EU leaders de-bated calls to enlarge their rescue fund by 50 percent. This could prompt others to pay more into the IMF, which would also help.

The recession this year is now forecast-ed to be short-lived and mild. The euro zone’s temperature chart—the spread of bond yields over German bonds —is gradually narrowing. For the first time in six months, a week has passed without the ECB making emergency bond pur-chases.

So is the crisis over? Not so fast, critics say.

In several countries, fiscal and structural reforms are still at a fragile stage. Further reforms could provoke stronger opposi-tion, particularly if they are seen to be imposed by foreigners. Greek newspa-pers depict German leaders in Nazi uni-form, and German tabloids call to throw Greece out of the European Union; both show how tempers can fray. Better market sentiment may be nothing more than the aspirin from the ECB. Liquidity is more like a painkiller than a cure, and the ECB is itself worried about creating an addiction to cheap money. Creditor countries have criticized, with reason, the recklessness of those they have rescued. At the same time, they have been slow to admit their own errors. They have yet to fix the instability of a currency union built on an incompatible triad: no bail-out, no default and no exit.

The ECB’s former president, Jean-Claude Trichet, resisted all attempts to make Greece’s creditors take a hit. When he finally yielded a bit last summer, the

13

“liquiditiy ismore like a painkiller

than a cure”

The Euro Crisis: a Long Illness

by Jong-hoon kim

14

euro zone negotiated a timid 21 percent loss in the lifetime of the bonds, for fear of triggering a “credit event”. Tougher negotiations have now made creditors take a more realistic 75 percent loss. The ECB, now led by Mario Draghi, has even chipped in some money indirectly by surrendering profits it would have made on Greek bonds it had bought at a dis-count. The euro zone has also softened the terms of its loans to Greece.Time heals, maybe.

An end to quack remedies is welcome, though it may have come too late for Greece. Had today’s policies been ad-opted from the outset, the Greek crisis might have been controlled sooner, the adjustment for debtors might have been less onerous, and the cost to creditors might have been lower. That being said, mistakes were to be expected, particu-larly when the euro zone was both badly designed and ill-prepared for a crisis.Fear of catastrophe has forced EU lead-ers to think more clearly. Debtors know

they must reform, and creditors know they must help. The first hints of sta-bilization, if that is what is happen-ing, may even bring new problems. Will a reduction of market pres-sure slow weaker countries’ long and painful march to re-form? Will stronger ones ig-nore the design flaws that make the single currency needlessly unstable?A hopeful prognosis makes sense only if leaders use a mo- ment of relief to push through structural reforms, remove barriers to the single market, en-hance the firewall against contagion, and move towards greater fiscal union. One lesson of this is that, faced with market meltdown, politicians from both the debtor and creditor side will compro-mise. Otherwise, the euro crisis is still far from being permanently resolved.

“politicians from both the debtor & creditor side

will compromise”

From left to right:

the acropolis of athens

greece’s Minis-ter of finance,

Philippos Sa-chinidis

the Greek euro.

Three years later, I still can’t really answer the first two ques-tions (let me know if you can provide any insights), but thank-fully I’ve learned what OCR is, the hard way. The purpose of this article is to walk you through Spring Semester OCR step by step, so you can get a general sense of what to expect, but the best way to prepare is to take time to do your research and talk to older students who have already gone through the process.

a time when companies come to campus to find the best talent and students try to find the company where they fit best. Posi-tions offered during OCR are usually summer internships or full-time positions. Most companies who recruit are banks and consulting firms, but there are also positions open for market-ing and engineering, among other fields. During the Fall Se-mester, there is full-time recruiting on campus for Seniors, and during the Spring Semester, there is summer internship re-cruiting for Juniors (and even for Freshmen and Sophomores, although this is less common).

OCRBy Tina Sun

During my first semester at Penn, or specifically at Wharton, there were three burning questions on my mind:

1.What exactly are we supposed to be learning in MGMT 100?

2.What’s on the elusive 8th

floor of Hunts-man Hall?

3.What is this “OCR” thing that everyone keeps talking

about?

PennLink is the website hosted by Penn Career Services where you can find job listings, “drop” your resume and cover letter for positions, and later, sign up for interview slots. Just six years ago, students had to line up and submit their resumes and cover letters in person for each available position. Keep this in mind, and you will learn to appreciate, if not love, PennLink.

During Winter Break, you can log on with your Penn Key, find all the on-campus recruiting positions for summer intern-ships that you are interested in, and start applying. The first deadlines are usually January 15, so you’ll have an advantage by narrowing down positions and getting a head start. You should have a general idea of what types of positions you are interested in, whether it be investment banking, sales and trad-ing, equity research, investment management, or consulting, among many other choices, but be sure not to approach OCR in an overly narrow way. Think of it like college applications: you want to cast a wide net to make sure you get into a good school, but at the same time, you simply don’t have enough time to apply to that many places. A good rule of thumb is around 40-70 position applications.

Starting from the very first day of school in January, there will be multiple information sessions each evening. In gen-eral, a company such as JP Morgan will host one informa-tion session, and bring in employees from each division of the company, so you can spend an hour learning more about the company and the one or two specific divisions that inter-est you most. Because you don’t have enough time to attend all the info sessions, you can look back at the companies you highlighted on PennLink over Winter Break and pick only a few to go to each evening. Info sessions are great for learning more about what the company has to offer and which types of candidates they are looking for, so you can use this infor-mation in your cover letters and during your interviews. The most common questions I get about info sessions are, “Do info sessions actually help you during OCR?” and “How do I stand out?” In short, the answers are YES and FOLLOW UP.

The way I see it, there are two ways to get chosen for an in-terview: (1) your resume (GPA, professional experience, lead-ership positions) and (2) your connections. Let’s talk about

OCR stands for On-Campus Recruiting,

Step 1: PennLink Finding and Applying to Positions

Step 2: Information SessionsMeeting People and Learning More

About the Company

®

15

(2) – you can take this opportunity to make an impression on someone who could have a say in picking resumes for inter-views or to get additional contact information. Keep following up and ask them to help you prepare for your interviews with that company. You can even start going to info sessions during sophomore year to build your connections early on. But there could be hundreds of students and fewer than ten analysts to talk to, which brings me to the second question, how can you stand out?

When speaking with an analyst, you can ask him about the best part of his job, why he decided to work for that company, his perspective on the work culture at that company, or other generic questions, but the key to actually being remembered is to follow up. Ask for their business cards or at least email addresses, follow up within 24 hours, and maintain contact. If you’re a freshman or sophomore, you can continue to email every few months in order to develop a relationship. If you’re a junior looking for a summer internship, ask to schedule a call that week to talk more about the position or to prepare for that specific interview. Either way, without follow-up there is a tiny chance that the recruiter will actually remember your name when it comes to picking resumes.

At this stage when you have secured an interview, all that mat-ters is how well you do during the interview, and less so your resume or academic transcript. First round interviews are gen-erally on campus, either in the OCR Suite in the McNeil build-ing or at the Inn at Penn, and they start about two weeks into the semester. You will receive an email invitation to an inter-view, and then you can sign up on PennLink starting at a speci-fied time. If you have multiple interviews each night to sign up for, you may want to think about using multiple computers in a Huntsman lab to get the best times. In general, avoid the first and last interview slots, as well as the one right before and right after lunch break. I know this sounds trivial, but in this game of chance, you want as many odds in your favor as possible.

If you pass the first interview, you will be notified of second round, or Superday, interviews usually within a few days, and these will take place at the company’s offices in New York City or wherever they are located. Superday will consist of multiple interviews, and you may be extended an offer shortly thereaf-ter.

You should prepare for your interviews by asking older stu-dents or MBAs to conduct mock interviews for you – this is

by far the best way. There are also guides for interviews and information online, so do your research and again, ask upper-classmen for specific resources that they used. You can also contact the people you met at the info sessions to ask them what you should expect for the first round. After passing the first round, you should ask your interviewer what to expect during Superday. Make sure to start preparing for interviews early on, so you can be just as polished going into your first interview as with the rest of your interviews.

Congratulations, you’ve made it this far in the process! At this point, you can make your internship decision based on the cul-ture of the company, how much you enjoyed speaking to the people you met from the company, and which exit opportuni-ties exist. The OCR process is for companies to find talent, but as I mentioned in the beginning, it is also for you to find the company where you fit best. You can keep an eye out and ask questions during the process to, in a sense, interview the com-pany as well. You can also contact your interviewers and other people you’ve met through this process – they’ll be much more willing to speak with you after you’ve been extended an offer. Lastly, make sure to thank all the people who have helped you along the way and offer to help younger students prepare when the time comes.

Tina is a current Junior in Wharton studying Finance and Ac-counting. You can reach her at tesun@wharton.upenn.edu to talk about OCR, Penn, or anything at all.

Step 3: Interviews First round on campus,Second round on site

Step 4: Deciding and Accepting the Offer

16

Members of the MBA and business panel address the

audience about work-ing in Asia and how to get connected

WAX had the honor of hosting a week of talented & hardworking businessmen, women, & authors regarding their experiences in Asia. These informative lectures gave students an insight into how to move forward successfully in the world of business.

17

RECAP

Jane Hyun, talking about the difficulties

Asians have ascending the corporate ladder

Kate Fleming speaks of her experiences

at Google

Adam Guren, founding partner and Chief Investment Officer of Hunting Hill Global Capital, talks about Asian equities

and starting his own hedge fund.

MBA BOOKLET

18

BANKING

CONSULTING

RECAP

19 ....... Anthony de Guzman Interviewed by Giannina Sy

20 ....... Jake Hong Interviewed by Katherine Chen

21 ....... Cindy Kim Interviewed by Shaun Lee

22 ....... Alissa Heinerscheid Interviewed by Katherine Chen

23 ....... Winnie Sze Interviewed by Shaun Lee, Michelle Cheung, and Jessica Xu

25 ....... Sherman Xu Interviewed by Kenji Tulman

This semester, Corporate Committee members in collaboration with the Journal Committee compiled this series of stories from and interviews with very talented MBA students as a method of introducing WAX members to the professional business industry. This effort is the start of a series of ar-ticles for future Journals that will feature various industries and stories from different MBAs. Please stay tuned for future issues of WAJ. Also feel free to contact Way Cao or Jong Hoon Kim if you have any ideas or suggestions on MBA stories and interviews for future issues. Thanks!

Anthony De Guzman is a second-year Wharton MBA student. He is originally from the Philippines, where he attended Ateneo de Manila High School. Later, he came to the United States and earned his undergraduate degree at Georgetown University. After graduating from Georgetown with a degree in Economics, he went into investment banking with Morgan Stanley. He was stationed in New York for two years and London for one, a period in which he worked about an average of 80 hours a week for al-most seven days a week. Even with these long hours, Anthony liked investment banking because he got to take part in a lot of different experiences. Despite it being his first job out of college, he had the op-portunity to be involved with diverse types of busi-nesses. He also liked that the job entailed intellectual challenges and working under pressure. Since invest-ment banking is a sell-side job, he was able to garner a lot of client exposure. Through this, he learned to improve his communication and presentation skills. Following his three years in investment banking, An-thony was called by headhunters to interview for a private equity firm. Headhunters have the contact information of analysts on Wall Street and help companies by recruiting new employees. After being interviewed, Anthony joined ABRY Partners, a private equity firm in Boston. Private equity, being a buy-side job, involves more rigor-ous analysis. Anthony expressed the need for pre-vious knowledge concerning not only finance, but also that of strategy, marketing, and competition.

This made employment in the private equity sector much more of a detail-oriented job. What he liked the most about this occupation were the opportuni-ties to sit in on long meetings with top management executives of various companies. After making in-vestments, he saw some businesses undergo slump, while others grew and evolved. Anthony stayed with ABRY Partners for three years before deciding to pursue his MBA at the Wharton School. He decided to do so because he felt that it was the right stage in his career for attaining a mas-ter’s degree in business, allowing him to move away from strictly finance and do something more strat-egy related. Ultimately, he hopes to move back to the Philippines. From all his job experiences, Anthony emphasizes the need to hit the ground running. Anthony did not have previous experience in investment banking be-fore taking it on as a full-time profession and, as a result, had a lot of catching up to do. However, he truly believes that if one is really passionate about something, it is important to read up on the subject matter and educate oneself. Anthony also suggests that one should go into a job for the experience and not for the money. In order to enjoy one’s career at all, learning along the way and benefiting from this knowledge is key. The more involved you are, the higher the reward you will reap. According to Anthony, “being detail-oriented and working hard makes the difference between the average performer and the excellent performer.”

Anthony de Guzman

Conducted by Giannina Sy

19

BANKING

Interview with

After completing his undergraduate degree in Korea, Jake Hong worked in Debt Capital Markets (DCM) at Merrill Lynch and ING in Hong Kong for three and a half years. Jake described DCM as a middle ground between Sales and Trading and Investment Banking. Unlike equity capital markets, DCM is re-lated to debt financing on the company side. Bills, bonds, or notes (fixed income securities) are sold to individual and/or institutional investors in order to raise capital instead of using stocks. In return for lending their money, these investors have a stake in the company. In Merger and Acquisition (M&A) situations, debt financing has becoming increasingly popular in recent years.

In his job, Jake was required to do a lot of research and analysis on different types of debt, make final pricings of new bonds (the most important task) and decide when to enter particular markets. Specifically in Asia, the debt capital markets are still much small-er than in the US. While working at Merrill Lynch, Jake was in charge of all debt markets in Korea be-cause he was the only native Korean on his team of

five people. He worked there for two years as an ana-lyst for 90 to 100 hours per week. At Merrill, he was not able to get as much M&A exposure. However, he regularly interacted with clients and made pitch books. While working at ING, he was promoted to first year associate. As the only Korean, he was able to work with senior managers and travel to Korea almost every two weeks. His high pressure lifestyle during this time reflected the greater responsibilities of his more senior position.

Later, Jake came to Wharton for his MBA and want-ed to explore different careers. Recently, he has been commuting to New York every other week. How-ever, he plans to intern for Goldman Sachs this sum-mer in equity capital markets. For those interested in working in finance in Asia, he stresses that Asian markets are much more localized, so personal con-nections and language skills are critical. Especially in Hong Kong, a strong grasp of Mandarin is im-portant. Working hours in Asia also tend to be lon-ger and focus on independent work, unlike teams in New York.

Jake Hong

Conducted by Katherine Chen

20

Interview with

BANKING

Can you give us a brief introduction of yourself and your previous work experience?My name is Cindy Kim, and I am a 1st-Year MBA student here at Wharton. I am from New York, and previously worked at an investment bank, a private equity firm and a start-up in Korea. To be specific, I previously worked at UBS Healthcare, Turtle Bay Capital’s Emerging Markets Team, and a start-up called Coupang.

Why did you choose this company?To be honest, markets were really good when I came out of college, so for many students, it was a natu-ral transition from graduation to banking. I worked for two years at UBS and acquired a great set of skills there. After that, I moved onto private equity because I wanted to go on the buy-side of the op-erations. Due to my work, I travelled to many exotic places like Vietnam, Kuwait, South Africa, etc. How-ever, the work became repetitive and I no longer felt intellectually challenged. As a result, I quit, packed up my bags, and went to Korea to work on a start-up for a year.

What did your occupation entail?At UBS, I was an analyst. Basically, you work as a support staff for upper level analysts and directors. I had to put together a lot of models, presentations, pitches, etc.

What are some crucial skills necessary to be a banker?You must be able to manage upwards (managing the people you are working with), showing them that you are working as hard as possible. You must also be reliable, resilient and detail-oriented. You have to work on a narrow topic for a long period of time, and that also requires a lot of patience.

How did you enjoy this kind of tight work en-vironment?I generally worked well under pressure. Neverthe-less, it does take a toll on you after a while.

Does your occupation encourage a strong team-environment or more of an individualized per-formance? You generally work in teams to get things done, but a lot of work is based on what individuals do. In a sense, banking combines individual and group work.

Can you remember one deal or a case that stays on your mind?There was a $6.7 billion merger between Invitro-gen and Applied Biosystems that I worked on for two years in the healthcare industry. It was a project that I worked on since the beginning of my career at UBS. It also ended when I was just about to leave UBS.

Where do you see the world of banking going in the next 10 years?The glamour of banking will decline, but the indus-try will always have its appeal to people. In regards to laws or legislations, yes, we will be subjected to stricter regulations. However, I feel that banking is a great stepping skill for many young people.

Where do you see yourself in the next few years?I hope to be working on my own start-up. I like building and making more things, and enjoy auton-omy to the fullest.

Could you talk a little about your training pro-gram for summer or full-time analysts?I do not know if UBS changed since I left the firm, but it had a 6-week training program that empha-sizes leadership and group activities. After that, you just dive into the work.

21

Interview with Cindy Kim

Conducted by Shaun Lee

BANKING

Impatiently glancing at the clock on my cellphone, I was al-ready five minutes late for my interview with Alissa in Center City (aka MBAville). When the cab finally pulled up to the Starbucks on 29th and Chestnut, I ran inside as quickly as possible, hoping that I would still fit into her already very busy schedule. However, over the course of the next hour, everything I expected about the interview would be flipped upside down.

Instead of wearing chic business attire, Alissa was patiently waiting in her best Friday morning jogging clothes.

“Honey! There you are! Would you like me to get you any-thing to drink?”

Flustered, I asked for a cup of tea as my mind reeled. Did she just call me “honey”? Despite the fact that we were in a Starbucks, Alissa made me feel like I was sitting at her kitchen table. Over two cups of tea, I learned that Alissa was a Har-vard graduate with five years of work experience as an associ-ate for Tapestry, an offshoot consulting firm of McKinsey. She chose to work there because it was a small firm where she could actually make an impact and interact with high level management within the firm. Daily, Alissa attended meetings, read and wrote reports. One of her favorite projects was the European Healthcare Project where she mediated negotia-tions between European countries and GlaxoSmithKline. She wrote several preview documents on how to organize their talks and analyzed each conversation that occurred between both parties in order to create “best practice” reports on what techniques worked the best toward reaching compromises.

However after working at Tapestry for five years, she decided to return to school to get her MBA for more formal business training and quantitative experience. After her MBA, Alissa hopes to work abroad.

As I took one last sip of tea I asked, “Well, to wrap this inter-view up, do you have any advice for undergrads about enter-

ing the industry?”

Instead of answering, Alissa told me a story: “My grandfather was a jeweler and was always fascinated by watches. He loved fixing them and looking at the design and mechanics. I real-ized that someday, I wanted to find a career where I could do something that made me as happy as when my grandfather worked with watches. What makes you tick?”

At this point, the focus of the interview drastically shifted towards me. Alissa emphasized the importance of self-aware-ness and knowing your strengths and interests. She suggested spending 70% of your time polishing your strengths and 30% of your time fixing large weaknesses but never wasting time trying to improve at things that you are naturally not good at. In addition, she recommended analyzing what you read first in the newspaper or what you naturally gravitate to when surfing online because those are things that you are interested in and that you actively look for even during leisure time. By knowing your strengths and interests, you can find a career that suits you best. After choosing a career path, choose a company that specializes in that career area because you will find more training, executive mentorship, and opportunities to grow within such a company.

Moreover, when interviewing, always try to “show” rather than “tell” by using anecdotes to illustrate your strengths and experiences to make yourself memorable. Another useful in-terview technique she explained was called STAR – Situation, Task, Action, and Result. When answering a question, use this format to organize your response, and elaborate more on the Action step.

Leaving Starbucks, I already felt like I had gained an invalu-able perspective of the industry and advice for the future. Sometimes college can get too overwhelming. What Alissa said made sense—maybe we need to stop for a second and spend time finding what makes us tick instead of worrying about the world ticking around us.

CONSULTING

Alissa Heinerscheid

Conducted by Katherine Chen

22

Interview with

Please give a brief introduction of yourself.My name is Winnie Sze. I was born and raised in Hong Kong where I also finished my bachelor’s de-gree. I previously worked in the Boston Consulting Group (BCG) for three years in the Hong Kong of-fice, and I am currently sponsored by BCG as a first-year MBA for a marketing concentration. I am also very interested in Social Impact Consulting.

For many of the younger students here, can you tell us what consulting is and how it operates in the business world?A consultant is like a doctor in the business world. Consulting helps solve questions and problems for companies when, for instance, they are interested in acquiring a new company or trying to devise a plan to tackle an opponent in the industry. When trying to win a client against other competitive con-sulting firms, we prepare a RFP (Request for Pro-posal). When we do win the client, the consultants in charge of that client will literally work with the target company in their office for the whole time until the execution of the strategy. We work in many fields of business, such as LBO, M&A, growth strategy, restructuring, etc. I personally find consulting re-ally fun because I get to be exposed to senior man-agement at a very young stage of employment. On the flip side, however, consultants must learn many things and be well-rounded and flexible.

How did you become interested in consulting?A lot of people come to me for advice or general questions. I personally enjoy listening to their prob-lems and giving advice on possible solutions. Con-sulting is really a great career if you really want to help people.

What do you think are the most important skills for a consultant?You must be flexible, able to handle pressure, opti-mistic, smart and positive. Since you are working in a field that does not guarantee anything, it is best to stay positive in order to be sane. At the same time, because consulting forces you to draw information from many subjects, you must be very well-rounded and smart. Finally, you must always remain com-posed.

What do you see as the biggest differences be-tween consulting in Asia vs. other areas of the world?Definitely learn Mandarin if you are doing consult-ing in or with Mainland China, but English is okay for Hong Kong and Singapore. In the United States, some consultants can work four days a week and go home on Thursday, but in Asia you can only go home on Friday and have to be back in the office on Monday morning. I have also heard that people are happier in the US, but I wouldn’t be able to say if that’s true!

23

CONSULTING

Conducted by Shaun Lee, Michelle Cheung, and Jessica Xu

Interview with Winnie Sze

What was your favorite/least favorite case? Do you have any really interesting stories?My favorite case involved an integration of two of the biggest chemical companies. In order for P&G to make its shampoo products, it needed to buy raw materials from separate chemical companies. In our case, we were working with P&G for a merger with a chemical company. Unlike other projects, this one was a bit longer; I worked on it for over a year. As you work as a consultant, the client essentially takes you in as a part of their company. This close interac-tion makes you accountable for what you are doing. I personally enjoyed working on this merger because I loved working with the people of P&G and my BCG team. In consulting, people are everything. Yes, the project content does matter; however, what is most important is the people. On the other hand, I do not particularly remember my least favorite case, but I usually dislike projects where the team’s morale is not that good. Sometimes, the project leader may be too demanding. At other times, the teammates just do not get along.

What happens when two teams within the firm are staffed on projects for clients who are com-petitors?It is literally like a Chinese war. You cannot talk to each other about the cases, send things to each oth-er, etc. The world is so small; so many clients turn to BCG since it is one of the most well-respected

firms around the world. Nevertheless, the clients know and trust that BCG will do its job. Usually, however, there is not too much to share between the teams since we are solving different problems at the same time.

Could you talk a little bit about your training program for summer or full-time analysts?We have local and regional training for BCG. Actu-ally, each of them is only about a week long. The good thing about BCG and consulting in general is that they value mentorship a lot. All the seniors are willing to help you and give you feedback. However, you must not forget to ask them for help.

Where do you see yourself in five years? Where do you see the world of consulting going in the next ten years?In five years, I would ideally be doing something in commerce strategy. I would like a good balance between work life and career development. I would also probably be working somewhere in China doing corporate development or retail. Also, I think that consulting firms will generally be focusing on how they can be sure their strategies’ or plans’ effects are long lasting. They now emphasize enablement rather than simple strategy design. It takes a lot of training, I guess. Consultants will be developing the internal works of companies so that they can solve future problems by themselves.

24

Please give a brief introduction of yourself.I am Sherman Xu Tan. I attended Tsinghua Univer-sity and majored in Automation (Engineering). Dur-ing University, one of my favorite topics was As-tronomy, but I decided to get an Engineering degree because it was more practical for my future career interests. After graduating from Tsinghua Univer-sity, I joined Boston Consulting Group (BCG) in Beijing and worked there for 3 years before deciding to enter the Wharton MBA program.

For many of the younger students here, can you tell us what consulting is and how it operates in the business world?Consulting is like being a doctor to corporations — if there are issues or problems, you have to fix the corporate “patient” and have checkups to keep them healthy while designing effective strategies to help solve problems.

What do you see as the biggest differences be-tween consulting in Asia vs. other areas of the world?In Asia, Consulting is a relatively new concept. Pull-ing from experience, I would say that local firms are less eager to hire a consulting firm for a project be-cause they do not want to spend the money (can-not afford it), or simply do not realize the value that exists in consulting. As such, we have to actively prove our added-value to the local community to encourage future partnerships. In the US/Abroad, Consulting firms are the first responders and these multinational companies often seek out and hire consulting firms. In Beijing, roughly 50% of the cli-ents are local, and the rest are multinational corpora-tions. Moving forward, my group hoped to increase the share of local clients.

What was your favorite/least favorite case? Do you have any really interesting stories?For an interesting story, an unnamed client once paid half of the company’s annual profits in 1 project. As for my most interesting case, we were hired to help a provincial government (Ningxia) in rural Western China to develop a strategy to better utilize their natural resources. We designed a roadmap of what to do, and analyzed the overall industry landscape (imports/exports of energy), environmental effects and policies, etc. The group consisted of 1 manager and 3 consultants who worked together through the Christmas holiday to deliver the project on time for that province to send it to the Central government for implementation. The area was essentially a raw materials provider, but lacked the business planning and management to remain competitive and so our group’s strategy included designing a railroad system to transport these resources (like coal, natural gas, etc.) to the market. My take away from this case was that Consulting allows you to design and implement actionable plans to help solve problems.

Why did you choose to take a break from work-ing full-time to come to Wharton for your MBA?Sherman: Despite the great benefits of working in China (promotions, double the salary, etc.), I decided to come to Wharton for the experience. I wanted to meet different people, experience different cul-tures and learn more about business. In addition, I decided to travel the country on both coasts. Most recently, I took a trip to Grenada with the Wharton Leadership Venture. As part of my break, I learned how to sail, obtained an Advanced Open Water Div-ing Certificate and went turtle nest hunting.

25

CONSULTING

Interview with Sherman Xu

Conducted by Kenji Tulman

26

SOURCES“Freshman Year of Freedom”Images: Jessica Xu

“Tourism: More Fun in the Phillipinnes!”Images:http://collapsingbarrycade.files.wordpress.com/2010/04/dsc03565.jpghttp://paradiseintheworld.com/wp-content/uploads/2012/03/manila.jpghttp://www.grandiosetravel.com/wp-content/uploads/2012/03/choco-latehills.jpghttp://www.itsalwayssunnyinsouthkorea.com/files/2011/02/Sunset.jpg

“Tourism in Thailand: It’s Not Just about the Beaches and Temples”Images: http://blog.otel.com/wp-content/uploads/2012/02/Chiang-Mai-Thailand.jpghttp://www.cheapcharlies.slowboat.org/Pics/phuket_island5.jpghttp://aroundtheworldwithjulietam.files.wordpress.com/2010/02/dsc03624.jpg

“Dubai and Tourism: Rise or Demise”Article:http://www.gmanetwork.com/news/story/248188/economy/business/dubai-economy-seen-growing-2-4-to-4-5-this-yearhttp://www.thedailybeast.com/newsweek/2008/12/05/is-dubai-s-party-over.htmlhttp://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-side-of-dubai-1664368.htmlhttp://www.eturbonews.com/28219/dubai-tourism-sector-performs-well-2011http://gulfnews.com/business/tourism/dubai-tops-world-in-hotel-occu-pancy-1.992757 http://www.bloomberg.com/news/2012-01-15/dubai-shares-fall-to-low-est-since-june-2004-on-full-year-earnings-concern.htmlImages:http://static.panoramio.com/photos/original/35951630.jpghttp://q8critic.files.wordpress.com/2011/08/the-palm-jumeirah.jpghttp://www.ultrafeel.tv/wp-content/uploads/image/architecture/dubai/burj-khalifa-dubai.JPGhttp://www.lookpictures.net/photos/registered_photos/8602-burj-al-arab-dubai-uae.jpghttp://burj-khalifa.eu/wp-content/uploads/2012/02/111.jpghttp://archdubai.net16.net/trump-hotel-dubai.jpghttp://visionsofearth.files.wordpress.com/2010/12/burj-khlalifa.jpg

“The Hawaii of the East: Hainan Island”Article: http://www.hemispheresmagazine.com/2011/12/01/aloha-china/http://www.nytimes.com/2010/03/31/world/asia/31hainan.html?pagewanted=1&_r=1Images: http://simplyfabulicious.blogspot.com/2010/05/breakaway-kids-camp-in-hainan-island.html

http://kekepana.com/blog/2010/01/12/hawaii-hainan-axis/http://www.cpgcorp.com.sg/press/viewdetail.asp?id=283http://en.yunnantourism.com/articleInfo.jsp?id=487

“Sping Trip to Singapore” Images: Robert Ou, Stephanie Li, and Yi Yi

“The 2012 London Olympics: Economic Boon or Bust?”Article: http://www.economist.com/blogs/gulliver/2012/01/heathrowhttp://www.moneyweek.com/news-and-charts…http://moneymanagement.wordpress.com/200…http://www.foxnews.com/story/0,2933,1617…http://www.mysinchew.com/node/10450http://sportsbybrooks.com/beijing-olympi…http://www.portfolio.com/views/blogs/odd…http://www.thestar.com/sports/soccer/article/1134780--london-olympic-stadium-doesn-t-meet-premier-league-standardshttp://www.foxnews.com/story/0,2933,161724,00.html#ixzz1o61Xc5c2Images: http://www.optometry.co.uk/news-and-features/news/?article=1286 http://data.map.london2012.com/collections.php?id=68 http://www.panoramio.com/photo/198414 | http://actsofminortreason.blogspot.com/2009_11_01_archive.html http://www.uk2012.com/tag/athens/http://www.squintopera.com/architectural-communications/portfolio/sports/west-ham-olympic-stadium1/http://nyulocal.com/on-campus/2012/03/28/the-olympics-are-coming-up-and-other-sports-news-this-week/

“The Euro Crisis: Too Long Illness”Article:http://www.economist.com/node/21543536http://www.forbes.com/sites/timworstall/2012/02/16/is-greece-being-forced-to-default/ Images: http://4.bp.blogspot.com/-vr9Bx_VHW3U/http://2.bp.blogspot.com/_Oyp020yYLFU/S9cutaRjjTI/AAAAAAAAAdg/iTY_rPOz4CU/s1600/euro+coin.jpghttp://www.quesper.com/MPj04027540000[1].jpghttp://thetruthno.files.wordpress.com/2011/12/euro2.jpghttp://upload.wikimedia.org/wikipedia/commons/5/5a/Greece_GDP_growth_1961-2010.svghttp://www.minfin.gr/content-api/f/binaryChannel/minfin/datas-tore/90/ac/d1/90acd12458d2798520bda4be0b9a5b773a25f207/image/jpeg/Psachinidis_profilepicheres.JPG=

“WAX Spotlight Asia Week Recap”Images: Jong-Hoon Kim

Questions? Comments? Concerns? Want to get involved? FIND US

at http://whartonasia.net

Wharton Asia Exchange