After the MBA: Investment Banking

January 13th, 2011

This is another post in our “After the MBA” series, in which we chronicle a variety of post-MBA career opportunities to give you a sense of which might be the best fit for you. Whether you’re looking to make a career change or want to stay in your present field, this information will help guide you in your b-school decision-making process, as well as direct your studies once in school.

Job/Industry:

Investment Banking

What It Is:

Investment banking is a demanding, intellectually stimulating career that requires a great deal of dedication, financial savvy, and time. Investment bankers serve a variety of functions, depending on their specific position. They advise clients on financial organization; underwrite, sell, and trade stocks and bonds; and manage assets, among other responsibilities.

If you are working in corporate finance, you will serve as a financial consultant for corporations. Often banks will assign bankers to work in a certain industry (health care, communications, finance, etc.); you’ll be responsible for helping firms execute financial strategies, analyzing their financial needs, determining valuations for new offerings, and underwriting equity and debt offerings, among other responsibilities. Mergers and acquisitions is related to corporate finance and sometimes serves as its own department; if you’re an M&A banker, you’ll give advice to companies that are merging with or being acquired by other companies. M&A requires a detail-oriented, strategic mind to ensure you’re able to work out all the specifics of the merger or acquisition deal.

If you are working in sales and trading, you will buy and sell securities and commodities; traders must keep track of the markets constantly while communicating with buyers and sellers.

Research analysts become experts in their given industry. They use their expertise and do continued research to predict the movement of stocks, usually either in fixed-income or equity. Traders rely on their educated advice. Research analysts do many different types of research on a company’s financials as well as economics trends in general.

Salary Range:

Salaries for investment bankers vary depending on a variety of factors. According to one source, the salary range for associates with MBAs is $80,000 to $150,000, including bonuses. Stanford’s Graduate School of Business, for example, reported a median salary of $100,000 with a median bonus of $40,000 for investment bankers from the class of 2010. Dartmouth’s Tuck School of Business reported a median base salary, not including bonuses, of $95,000. Bonuses are determined at the end of the year and are based on a variety of factors: namely,  the performance of the firm, the market, and the individual. According to some estimates, bonuses are typically anywhere from 10-50% of the yearly salary for first-year bankers, and increase markedly with seniority (often, a significant amount of the bonus will be in the form of equity). At regional or smaller banks, salaries will likely fall below those at major banks in major markets.

How to Get an Investment Banking Job:

If you are attending a top-50 MBA program, it is likely that representatives from banks will recruit at your school. If you are interested in a career in investment banking, be sure to attend these events. You should make a concentrated effort to do a summer internship with a bank after the first year of your MBA program; this will help you get your foot in the door and make contacts in the industry. Be sure to strike a balance in your interactions with recruiters: you want to be appear interested, but you do not want to monopolize the representative’s time and make a bad impression.

If investment banks do not recruit at your MBA program, use your networking skills to find contacts within the industry.

If you are fortunate enough to get an interview for an i-banking job, be sure to prepare answers to frequently asked interview questions, including:

  • Why investment banking/why do you want to work here?
  • Why should we hire you?
  • What are your outside interests?
  • Are you a risk-taker? What are some risks you’ve taken?
  • What are your greatest strengths and weaknesses? How are these reflected in your resume?
  • What questions do you have? (Make sure you have challenging, detailed questions prepared for this one.)

Furthermore, you should have a clear understanding of the industry and be up to date on industry trends, recent mergers, etc. in order to ensure you are competitive for an i-banking job.

Is I-Banking Right For You?

Investment banking is not a career to jump into blindly. It be very rewarding, intellectually and financially; however, it also requires a great deal of dedication and time. Try to evaluate whether your personality is a good fit for the banking lifestyle. You should be a strong communicator, enjoy taking on leadership roles, be an excellent problem solver, and not mind (and ideally enjoy) working under pressure.

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Countdown to Davos: Topell Energy

January 13th, 2011

As a countdown to the World Economic Forum’s annual meeting at Davos, we’re profiling all 30 of our fellow 2011 Tech Pioneer award winners. Check our full profile series to learn more.

Topell Energy


What they do:

Ever hear of torrefaction? Basically, it’s a fancy word that means making solid bio-fuel (a very valuable resource) from woody biomass (just what it sounds like: trees and woody plants, a.k.a. forest management by-products). Torrefaction isn’t new, but Topell Energy’s method is: the company’s super-efficient process takes only 100 seconds per particle, whereas other systems take 30 minutes. The environmentally-friendly biofuel that results can be used directly in power plants in place of fossil coal. No costly upgrades required.

Why it’s cool:

Fossil fuels are bad–biomass is good. Topell Energy’s torrefaction breakthrough gives biomass a chance to topple fossil fuels once and for all–it’s cheap, efficient, environmentally friendly, and powerful. A win for biofuel is a win for the environment, so we should all be rooting for Topell Energy to succeed.

Learn more:

Website

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Posted in EdTech, Education & Technology, Knewton, Technology | 1 Comment »

Countdown to Davos: Transonic Combustion

January 12th, 2011

As a countdown to the World Economic Forum’s annual meeting at Davos, we’re profiling all 30 of our fellow 2011 Tech Pioneer award winners. Check our full profile series to learn more.

Transonic Combustion


What they do:

Transonic’s fuel injection system improves the fuel economy of new cars and trunks and is a cost-effective way to meet strict emissions standards. The injector can be used in conventional cars, and will cost less than trying to turn a car into a hybrid.

Why it’s cool:

The fuel injection is a near-term solution to improve fuel economy–and on a larger level, to stop using so many gosh-darn fossil fuels. There’s no major infrastructure change needed, either. In addition to running on gasoline, the injector is also planned to run on ethanol and biodiesel– yay, renewable liquid fuels!

Learn more:

Website

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MBA Admissions Tip: Navigating the Waitlist

January 12th, 2011

Here’s another weekly MBA admissions tip from our friends at Clear Admit. For more advice about the b-school application process, check out their blog.

While the past few weeks have seen a number of admits and rejections handed down to round one MBA applicants, the fate of many remains uncertain. There is no reason for waitlisted candidates to lose hope, as the top programs admit a fair number of individuals from the waitlist in round two and thereafter, but we know that cautious optimism does not make the wait for an answer any easier. To help those in this situation make sure that they’re doing all they can, we wanted to share a few waitlist tips:

1. Know – and follow – the rules. Schools vary in their stances when it comes to interaction with those on the waitlist; some shun communication from applicants and even go so far as to discourage on-the-record campus visits, whereas others welcome correspondence and assign waitlisted candidates to an admissions office liaison. We know that the natural impulse is to reach out to the adcom and update them on that recent promotion or the final grade from that accounting class you took to bolster your academic profile. At first blush, it might seem that there’s no harm in sending a short letter or making a call, but no matter how exciting the information you wish to communicate, ignoring the adcom’s instructions is ultimately going to reflect badly on you. Though such a policy may seem frustrating or unfair, it’s important to respect and abide by the preferences of each school.

2. Communicate if you can. For those programs that do permit or encourage contact from waitlisters, it’s absolutely a good idea to send an update. In addition to the obvious news items mentioned above, it’s beneficial to read over your essays and reflect on whether there is some piece of your background or interests that you haven’t gotten across yet. Taking the time to write about your relevant recent experiences, positive developments in your candidacy and ways that you’ve enhanced your understanding of the program is a nice sign of your interest in the program, and is a good strategy for telegraphing your commitment to attending. It is, of course, also in your interest to make sure that the adcom has the most up to date information so that they can make an informed decision the next time your file comes up for evaluation.

3. Keep in touch. Don’t disappear after an initial note to the adcom or phone call to your waitlist manager (if applicable). If you have plans to be on or near campus, for instance, send a quick email to alert your waitlist manager (or whoever you may have interacted with on the adcom) to alert them to this fact.  In many cases you’ll find that the adcom offers to have you stop by for a friendly chat about your candidacy – something that can go a long way towards helping your case.  Beyond a visit, sending a brief update every few weeks or so is another way to reaffirm your interest in the school and keep you fresh in the minds of the adcom – something that could work to your advantage in a discussion of which candidates to admit from the waitlist.  In all cases, it is important to remember that there is a fine line between persistence and pestering, so please use good judgment!

4. Have a contingency plan. While it’s important to do be consistent and enthusiastic when waitlisted and communicating with staff at your target program, it’s also wise to have a backup plan. With the round two deadlines for several top programs about 1-2 weeks away, there’s still time to put together a solid application to another school. Even if you’re waitlisted at the school of your dreams and intend to reapply if not admitted, it’s also never too early to start thinking about the coming year and what steps you might take to enhance your candidacy before next fall.

For valuable guidance about being on the waitlist, check out the Clear Admit Waitlist Guide.  This guide will teach you to understand the ground rules of a program’s waitlist policy, formulate a plan to address weaknesses in your candidacy, craft effective communications to the admissions committee and explore every opportunity to boost your chances of acceptance.  This 26-page PDF file, which includes school-specific waitlist policies and sample communication materials, is available for immediate download.

Best of luck to those of you playing the waiting game, and feel free to contact us at info@clearadmit.com to learn about our application feedback and waitlist counseling services. Hang in there!

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Video: The Most Commonly Tested Errors on GMAT Sentence Correction

January 11th, 2011

We recently a released a new and improved on-demand video player in our GMAT course, and to spread the word we’re sharing the first Sentence Correction lesson in nine handy installments. If you’re looking improve your score in SC, be sure to watch all the videos for expert advice on this tricky section.

The first installment of the lesson, shown above, covers the most commonly tested errors on the GMAT Sentence Correction section. As expert teachers Dave Ingber and Jen Rugani explain, there are a finite number of grammatical errors that appear on the GMAT:
  • Sentence structure
  • Subject-verb agreement
  • Modifiers
  • Parallelism
  • Comparisons
  • Verb tense
  • Pronouns
  • Idiomatic constructions
Check out the video to learn how to spot these errors on test day, and be sure to stay tuned for the next lesson!

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Posted in GMAT, Verbal Guide | No Comments »

Countdown to Davos: Atlassian

January 11th, 2011

As a countdown to the World Economic Forum’s annual meeting at Davos, we’re profiling all 30 of our fellow 2011 Tech Pioneer award winners. Check our full profile series to learn more.

Atlassian

What they do:

Atlassian makes software development and collaboration tools that help technical teams work more efficiently–cutting down the time from idea to product and allowing software developers to stay organized and on track. Atlassian sells its products on the Internet at relatively cheap prices.

Why it’s cool:

Getting to work on time, without forgetting your lunch, one of your shoes, or that important meeting brief, is hard enough. Atlassian makes your life at work easier by keeping projects organized and facilitating open communication. As a company, Atlassian is also extraordinarily community-minded; the Atlassian Foundation encourages staff volunteering and matched giving, and Atlassian provides all of its products for free to non-profits.

Learn more:

Website
Blogs
Twitter
Facebook

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Posted in EdTech, Education & Technology, Knewton, Technology | No Comments »

After the MBA: Social Entrepreneurship

January 11th, 2011

If you thought the soul-searching stopped after you decided to go to b-school, think again. There are a wide variety of career options open to MBAs — some of them less conventional than others.

In our new After the MBA series, we’ll chronicle a variety of post-MBA career opportunities to give you a sense of which might be the best fit for you. Whether you’re looking to make a career change or want to stay in your present field, this information will help guide you in your b-school decision-making process, as well as direct your studies once in school.

Job/Industry:

Social Entrepreneur

What it is:

Social entrepreneurs start companies to help work toward social change in a particular area. While these companies are often not-for-profit, creating a for-profit company is not anathema to social entrepreneurship, as these companies have the ability to make a difference too.

Recently, there has been an increased interest in social entrepreneurship in b-schools, which experts attribute to a number of different factors. While some credit it to a contracted job market, according to Colin Mayer, dean of Oxford’s Said Business School, in an article in the Wall Street Journal, “the interest in entrepreneurial ventures with social value [is about] more than the fact that people can’t get jobs as easily” due to the economy. “There’s also a sort of underlying sense of guilt about what happened during the crisis.”

Salary Range:

There’s no neat “salary range” to report for this field of work — after all, when you set out to build a business, nothing is set in stone. Unless you hit gold immediately after starting your organization, don’t expect to make big bucks (or even to be able to pay yourself a salary).

Is Social Entrepreneurship A Good Fit?

Social entrepreneurship is not for everyone. Potential social entrepreneurs must be sure they have a strong, viable business idea and a workable way to execute their plan. In addition, they should recognize that social entrepreneurship, especially at the beginning, can be a lonely pursuit and require much, much more than 40 hours/week. Your personal life will almost certainly be eclipsed by your professional life (although since you will likely be very deeply invested in your company, this might not matter much to you). Creating your own start-up, however, can be one of an extraordinarily rewarding career and one that provides the entrepreneurship with a great deal of freedom and independence.

What Business Schools are Best for Social Entrepreneurship?

Numerous programs for social entrepreneurship have emerged recently. According to an article on Poets & Quants, “The Skoll Center for Social Entrepreneurship at Oxford’s Said Business School is a solid example of a relatively new program that is attracting the best and brightest to the social sector.” According to U.S. News and World Report’s rankings, the top 5 business schools for entrepreneurship are Olin (Babson), Stanford, Sloan (MIT), Harvard, and Wharton (U. Penn). However, there are programs and opportunities to take advantage of at many schools.

Check out the rest of our After the MBA Series learn more about all your post-b-school options.

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MBA News Roundup – MBA Costs, Interview Tips, and Hiring Hopes

January 10th, 2011

This week’s MBA news roundup features articles on cost comparisons between top business programs,innovations in the b-school admissions process, and interview preparation. Enjoy and good luck, everyone!

1. How Much Does a Top MBA Degree Cost?

Poets and Quants provides a list of b-schools with the highest costs and the average amount of aid (in the form of loans, scholarships, and fellowships) attendees can expect to receive.

2. M.I.T. Takes iPad Approach

This Wall Street Journal article discusses how usual processes at some top b-schools are changing to reflect technological innovation, effectiveness, and student demand.

3. Business School Resolutions for 2011

What are some New Year’s Resolutions for business schools in the upcoming year?  Businessweek compiles a wish list from various b-school administrators and professors.

4. Hiring Prospects Improve for MBA Graduates in 2011

The likelihood that 2011 b-school graduates will obtain jobs may increase, but their salary offers will probably remain the same as last year.  Find out more details in this Wall Street Journal article.

5. Tackling the MBA Hot Seat

Are you preparing for b-school interviews?  This article on Livemint.com provides some tips on what to expect and how to prepare.

Remember to follow KnewtonGMAT on Twitter for more b-school news and updates!

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Creating "A Ha" Moments: Content Scaffolding and Adaptive Learning

January 10th, 2011

We do a lot of research as we refine our adaptive learning engine. Our most recent research concerned how two fancy-sounding educational concepts — content scaffolding and metacognitive scaffolding — can be used to help improve learning and increase engagement among students.

Here’s what these two types of scaffolding are all about:

Content scaffolding consists of reminding students of critical concepts, presenting a multi-step problem as a series of smaller problems, and otherwise breaking down a problem into its constituent components. It’s used to help students synthesize concepts when those concepts are still new to them.

Metacognitive scaffolding, on the other hand, asks students to reflect upon the process they use in approaching a problem. This process allows students to generalize and prompts them to think analogously. Metacognitive scaffolding helps students extend the application of their knowledge to new situations.

For this project, we worked with high-school students to apply the principles used in scaffolding to the reflection and reinforcement stage of the learning process. Knewton’s adaptive system is designed to provide different follow-up questions to different students, depending on their needs. How, we wondered, would using content scaffolding and/or metacognitive scaffolding within these follow-up questions affect student learning and engagement?

The high schoolers who participated attempted to answer a question and then read its explanation. Next, they were given follow-up questions designed either to reinforce concepts (a form of content scaffolding) or to stimulate metacognition.

The follow-up questions designed to reinforce concepts were very similar to a certain step of the original problem. For example, if the first problem asked students to reduce a fraction whose numerator and denominator were each quadratic expressions, the second might ask students to factor a quadratic equation.

On the other hand, the follow-up questions designed to stimulate metacognition required students to apply the original concept to a different but analogous situation. If the first problem was about converting rates involving physical dimensions, the second might be about converting rates with dollars and services.

The results? Students definitely found the first type of follow-up question more accessible—no surprise there, since the concepts the original questions tested were generally new to the student.

These concept follow-ups helped reinforce the steps the students learned to take while solving the original problem. As for the latter, metacognitive type of follow-up, it was more helpful to students who already had a good handle on the basic concepts and were ready to expand their application.

Content-reinforcing follow-ups were gratifying because students were really excited to be able to answer a question related to the harder question they’d just attempted. When prompted to explain how the follow-up related to the original question, the students enthusiastically explained how it was just like the first step of the original. Students jumped at the chance to demonstrate immediately the understanding they had gained from the explanation of the original problem.

Why is this important? Ultimately, it provides us with yet another way to engage students—something all educators are continuously striving for. And while we love to incorporate innovative features like gaming elements into our courses, it’s also nice to see that sometimes it’s the simple stuff that matters most.

Content scaffolding (and metacognitive scaffolding, when students are ready for it) facilitates those super-rewarding “a-ha!” moments that give students the motivation they need to stay engaged.

Posted in Adaptive Learning, EdTech, Education & Technology, Featured, Knewton | 4 Comments »

Countdown to Davos: Foursquare

January 10th, 2011

As a countdown to the World Economic Forum’s annual meeting at Davos, we’re profiling all 30 of our fellow 2011 Tech Pioneer award winners. Check our full profile series to learn more.

Foursquare

What they do:

Foursquare is a free mobile application that combines the fun of exploration with gaming and social networking. Users “check in” at coffee shops, parks, bars, restaurants, gyms, office buildings, you name it, to find friends and give others insider tips about their favorite (or least favorite!) locations. Check in somewhere more often than anyone else and you are granted a “mayorship”–much easier than actually running for municipal government, in our opinion. Another perk? Many merchants also offer special deals or rewards to foursquare users.

Why it’s cool:

Step away from the computer… kind of. Foursquare allows you to keep in touch with your friends via social networking–without having to stay chained to your desk. It’s a great excuse to try out new places and meet others with similar interests. Did you always want to be the Mayor of McDonalds? Hey, dreams really can come true.

Learn more:

Website
Blog
Twitter
Facebook

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