Category: Internship

Engagement in an internship is helpful to the career development of a student. It enables students to deploy classroom experience to the real world environment. The main aim is to ensure that the student is capable of transiting and fitting into the workplace. During the student’s internship at the Ozdemirler Factory in Turkey, he or she was expected to take active roles in a learning process in areas relevant to my career.

It is evident that the internship provided a crucial opportunity for the student to identify areas of organizational strength. However, the student should not utilize the opportunity to attempt to ridicule the organization. At the Ozdemirler Factory in Turkey, such an attempt would limit his or her levels of engagement between organizational staff and him or her. Hence, he or she would learn less as the organization offering the internship might view him or her as posing a threat to its way of doing work. Hence, issues touching on accountability and integrity of the organization do not rhyme well with the purpose for which the internship was conducted. Rather, the student’s goal should have been attempting to learn on the best practices for an organization so that he or she transfers the skills gained to the work environment when employed upon completion of his or her career. Such criticism is vital only in case a student is conducting research for the final course project.

In light of the above arguments, there emerge questions of reliability and validity of the data collection tools deployed in the research. There is no description of the samples and the sampling techniques deployed to arrive at the data used to make inferences. Since the student was engaged in an internship, it is also questionable whether the information provided especially on matters relating to integrity and accountability of the organization was reliable. It is important to recognize and appreciate the research limitation. However, what is the importance of carrying out research having limitations that make research findings inappropriate for deployment in making inferences? Indeed, the claims and allegations made by the researcher on the accountability and integrity of the managers of Ozdemirler Factory are not backed by reliable audit reports showing discrepancies. There ought to have been one set of a report showing the actual and correct figures of the performance of the company and another set that is characterized by fraud and incorrect reporting. Otherwise, relying on the opinions and information provided by the staff stands as incorrect and inaccurate while supporting serious allegations such as accountability and integrity.

Amid the criticisms of the research section, it is encouraging to note that the student participated in learning various things that are instrumental to his or her career development. Issues such as engagement in auditing processes, shipping process, inventory-taking, and machinery labeling are central to the realization of the purpose of his or her internship. Learning about systems and instruments for capturing reviews and analysis for the performance of an organization is yet another important experience that would help to build the student’s career profile. This enhances the preparedness of the student to face the expected challenges in the actual work environment. Knowledge gained in organizational disclosures is essential in enhancing the performance of the student in building high performing and transparent organization later after completion of the course. Nevertheless, any allegation on the organization’s non-engagement in disclosures is unwarranted unless supported by solid and reliable evidence.

Executive Summary

I did my internship at Banque Saudi Fransi. The internship period comprised of two stages. Hence, I spent two months of training at the Corporate Banking Division, and then there was one more month of practice at the Corporate Operation Department. My key responsibilities included monitoring daily operations, tracking the general workflow, analyzing employee performance, developing incentives frameworks, and delegating tasks to operation team members. I was also in charge of designing a business continuity plan and back up strategies and collaborating with managers for practice exchange. The internship was a valuable experience as it allowed applying my theoretical knowledge to practice and understand the principle of banking operations from inside.

Description of the Company

History and Contact Information

Banque Saudi Fransi (BSF) was founded in 1977 as a Joint Stock Company. It started its official operations in 1989. Throughout its history, the bank has developed a vast network so that it currently has 120 branches. The Head Office is located in Riyadh, while there are also additional regional offices in Jeddah, Al-Riyadh, and Al-Khobar (Banque Saudi Fransi Profile par.5). For further information, the bank might be accessed through the following channels:

Phone (Inside the Kingdom): 800 124 2121

Phone (Outside the Kingdom): +966 920000576

Type of Ownership and Key Shareholders

BSF is a Joint Stock Company. Its key shareholders are represented by the Board of Directors. The list of the main shareholders is represented in the table below.

Table 1 “BSF Shareholders.”

The company’s profile reveals that it is affiliated with Credit Agricole Corporate as well as Investment Banks. These shareholders possess 31.1% equity interest (Banque Saudi Fransi Profile par.2). The list of additional shareholders other than board members and executive directors can be viewed in Appendix 1.

Operation Sector and Services

The company operates within the financial market sector. It provides a wide range of commercial banking services that include corporate banking, commercial banking, Islamic banking, investment services (asset management, funds investment, etc.), and brokerage services the range of products that the company offers comprises foreign exchange, commodities, equities, interest rate derivatives, and hybrids derivatives.

The bank likewise offers professional consultative service to provide some guidelines on risk management and safe hedging solutions. All the services are delivered through the three regional offices (Banque Saudi Fransi Products and Services par.1).

Target Customers

Generally speaking, any individual can potentially become the bank’s client. Hence, BSF offers services for both private customers and corporate entities. It is also essential to note that the company performs an active contribution to the local charity programs. Therefore, charity organizations might be likewise referred to as the key beneficiaries (Banque Saudi Fransi Profile par.5).

Even though the company claims to be equally focused on both domestic and international clientele, the experience of working there lets one feel that the special emphasis is put on the domestic segment.

Organization Chart

The figure below illustrates the BSF organization chart.

Hence, it might be seen that there are five committees under the supervision of the Board of Directors (BOD).

The Donation and Social Contribution Committee is responsible for holding meetings during which its members target the most urgent aid subjects. This committee comprises four members: the chairmen and three members (“Annual Report” p.87).

The Risk Committee is responsible for risk management and prevention. It comprises six members: the chairman and five members (“Annual Report” p.86).

The Audit Committee is in charge of supervising internal audits, verifying the reports’ accuracy, and their compliance with the relevant legislation basis, to name but a few. It comprises five members: two chairmen and three members (“Annual Report” p.88).

The Executive Committee manages the key operations – it assesses the corporate plans and strategies, approves or disapproves of proposed policies, and evaluates potential risks. The Committee is composed of seven members: one chairman and six members (“Annual Report” p.85).

The Nomination and Compensation Committee designs the compensation system and ensures its successful operation. It likewise performs an advisory function. The Committee comprises four members: one chairman and three members (“Annual Report” p.86).

Department Division and Functions

The most critical bank departments and division are Credit Administration Department, Accounting and Financial Control Division, Financial Planning and Management Control Division, Asset and Liability Management Department, Corporate Banking Division, Corporate Operation Department, and Corporate Communications Department. A detailed review of the main departments and their functions can be found in Appendix 2.

Internship Activities

Working Conditions and Functions

I had an opportunity to complete two practical programs and try my hand at working in different departments. First, I spent two months training at the Corporate Banking Division. Second, I spent a month working for the Corporate Operation Department. Therefore, I was supposed to learn to fulfill the responsibilities of an operational manager. This implied supervising teams involved in transactions and the provision of data associated with particular service areas –the key task was to ensure that the scope of the target tasks meets the set deadlines and the quality standards.

Organization Chart of the Internship Organization

The figure represented below illustrates the Organization Chart in my Corporate Operation Department.

The invoicing team is responsible for sales invoicing and encoding procedures. Pricing and marketing analysts manage prices and demand planners. The special action team is in charge of documentation and message processing. The licensing and accreditation team assists in preparing legal documents.

Division Layout of the Internship Organization

All types of procedures (investment, foreign exchange, and general banking) would be managed according to the following division layout:

Overview of the Service Procedure

The figure below provides a brief review of the service procedure. It is essential to point out that it is a general illustration that does not differentiate between the types of service.

Process Chart of a Major Service

It is problematic to point out the major service as the Operation Department is in charge of various services. General banking might be characterized as the most requested option, within which the loan service is in particular demand. The figure below demonstrates the process chart of the loan procedure.

Accounting Standards

The bank ensures the compliance of the documentation with the world-recognized standards. Hence, all the financial statements are prepared in accordance with the SAMA standards. Additionally, they are compliant with international standards. The bank relies on the Banking Act and Corporate Act of SA and the internal Articles of Association. The documentation is audited on a regular basis, and no discrepancies have been detected yet.

Telecommunication Technologies

The bank uses a large scope of e-tools that enable employees to perform sustainable communication within the departments. The corporate laptops are equipped with special software that allows for rapid message exchange and file share within departments. All the department rooms have access to high-speed Internet. The data is stored through cloud platforms that are protected with the help of effective security programs.

Quality Planning and Control Activities

Each new week begins with the quality planning meeting, during which the supervisor targets the nearest objectives and the expected outcomes. During the week, the trainee is supposed to register the milestones and send an everyday report to the supervisor so that the latter tracks the progress and provides the necessary recommendations. The supervisor might ask to revise the task or give the agreement for continuing its completion. The final results are discussed at the end of each week.

Quality Control Activities

The quality of the outcomes is measured through specially prepared quality matrices that describe each level of completion and characterize it in a relevant manner: failed, satisfactory, good, excellent. Such a matrix is specially prepared for every week because its content describes the desired results. At a higher level, external audits are likewise used to ensure consistent quality control. General quality standards are described in corporate manuals.

Financial Analysis and Decision Making Methods

Decision making is commonly performed with the application of the Bottom-up approach. Hence, immediate executives are involved in evaluating the target aspects. A large scope of financial analysis is also performed with the help of computer technologies and innovative software that offers convenient forecasting and analytical tools. Digital records are further evaluated by corporate financial experts, and the final decision is discussed at the team meeting.

Incentives

The corporate payment system is based on performance-related principles. Hence, each employee is assigned a particular minimal fixed payment. The rest of the revenues he or she is supposed to gain through product performance. Assigned bonuses are of two types. There are regular incentives that employees receive for completing the normal scope. These incentives are fixed and paid at the end of each month. There are also occasional bonuses that are assigned for outstanding achievements only.

Performed Marketing, Selling, and Human Resources Analysis

Human resource analysis is performed in the main office. Each week the operation department manager has a briefing with the relevant specialist from the main office. After that, there is a meeting with the operation team where the manager retells all the improvements that need to be implemented and the flaws that should be eliminated. The selling statistics are automatically fixed so that every employee can track the selling progress through his or her account.

Working Documents and Analysis

Through the course of my internship, I learned to work with such documents as Project Management tables, spreadsheets, and digital performance monitoring. I likewise learned to operate the loan documentation: loan applications, loan approvals, loan disapprovals, and agreement forms.

Aligning Theory and Practice

At first, it was rather problematic to align the theory to practice. Working in the bank required immediate decision making so that it was sometimes impossible to revise the materials studied in the class. In the meantime, as soon as I got used to the working pace, I realized that my knowledge base was very valuable – I knew how to operate the most critical software and programs. I also understood the key principles of team management so that I would always see the rationale for the decisions my supervisor made.

How Al Yamamah University Prepared Me for the Internship

The Al Yamamah University has provided me with consistent preparation for my internship. First, I was emotionally prepared for the potential challenges as we had a lot of practical classes in the university that helped to develop quick decision-making skills. Second, the consistent theoretical basis that the university gave me helped to minimize the adaptation period – I had a clear idea of the principles used in banking management, so I only needed to adjust them to the environment.

An Assessment of the Internship

Skills and Qualifications

In the course of my internship, I mainly developed my communication and leadership skills. I also learned the key principle of effective time management and task scheduling. Additionally, the internship helped me to acquire the basic skills of operating accounting programs and performing documentation analysis.

Undertaken Responsibilities

My main responsibilities comprised monitoring daily operations and the general workflow, tracking the employee performance and developing incentive frameworks, and delegating tasks to operation team members. I was likewise responsible for working on business continuity plans and back-up strategies. Finally, I was in charge of collaborating with managers from other departments and discussing effective team management practices.

Expected Impact

I believe that this internship will make me reshape my vision of working in the banking segment. This experience made me develop a strong interest in the operation department that I would not consider as my future destination before. I am now eager to learn more about managing operation teams and to understand the mechanism of each department subdivision better.

Internship Activities and Classroom Knowledge

The classroom knowledge helped to integrate into the working environment in the shortest time possible. Meanwhile, I should also note that after receiving the practical experience and observing the work from inside, I began to understand some of the classroom theories better. Therefore, the interconnection between internship activities and classroom knowledge turned out to be double-way.

Conclusion

Basing on my internship experience, I can conclude that the banking sector is a complex structure working in which requires diversified skills and knowledge. Hence, it is insufficient to know the principles of management to make a good supervisor of an operation team – it is likewise necessary to have a profound understanding of all the operations that each team member is supposed to carry out.

The operation department is one of the most interesting departments to work in as it is responsible for various types of activities. In addition, it is essentially interconnected with different groups of stakeholders, which helps to observe the banking process in general.

Appendix 1

Appendix 2

“Department Division and Functions”

Works Cited

Annual Report 2016. Web.

Banque Saudi Fransi. Board Members, 2016. Web.

—. Products and Services, 2016. Web.

—. Profile, 2016. Web.

Executive Summary

As a student enrolled for a management degree with Prince Mohammad Bin Fahd University College of Business Administration, I was afforded the opportunity to pursue academic credit through an internship with a local business house that concerns itself with my studies. The internship is offered to any business school senior who meets certain university standards. I was presented with a chance to earn academic credit at the Dubai office of Merrill Lynch, an international brokerage firm.

The internship enabled getting valuable knowledge on several issues connected with the studies and at the same time, assisted in gaining invaluable experience in a private sector organization. Completing the academic requirements for the internship, this report summarizes the activities at Merrill Lynch and serves as evidence of the accomplishments during the internship.

This internship presents the background of the company and an analysis of the strengths and weaknesses of the company through a SWOT analysis undertaken. Despite the financial issues faced by it, the company retains its reputation in the industry as an efficient brokerage firm. After being taken over by Bank of America, significant changes have been brought in the working of the company. The report touches upon the marketing and competitive strategies of Merrill Lynch to give the readers an idea on the functioning of the company. A significant portion of the report deals with the technical part representing actual projects undertaken including problems and issues handled during the internship. The report is concluded with a summary of findings on the probability of potential changes in the corporate, growth and marketing strategies of Merrill Lynch and recommendations in these areas for improvement in the performance of the company.

Overall, the internship was helpful in learning ways of using classroom information in the real business world and the internship exposed in a practical way to many areas, which were taught in the classroom theoretically. The report concludes with the remark that the knowledge and experience gained in the internship cannot be replicated within the confines of the campus.

Acknowledgement

I take this opportunity to thank several people who were associated with my internship program and provided their valuable time and guidance in making me improve my skills and knowledge in a most practical way.

First of all I would like to thank, ………the internship supervisor for his valuable time spent on answering my unceasing queries and doubts in amidst his busy working schedule. Without his support, I could not have completed this internship program to my greatest advantage.

I would like to place on record my heart-felt thanks to all the professionals, executives and advisors of Merrill Lynch Dubai for helping me to complete the internship successfully. At various points of time during the internship, they helped me clearing a number of doubts, which enhanced my knowledge.

I would also like to thank my academic supervisor …… for providing me this lifetime opportunity of sharpening my skills. I thank every one in the University who have helped me to complete the training successfully.

Introduction

There exists a close relationship between banks, financial markets and the macro economy. These studies reveal that well-developed financial markets are necessary for the overall economic development of any nation. The investment banks form the foundation for the development of financial markets. In broad terms, investment management companies consist of firms whose activities relate to issuing, distributing and selling securities and other related financial products. The activities of investment banks include underwriting, brokerage and market-making. Commercial banks and several other financial institutions are involved in investment banking activities.

The firms operating in this industry appear to have a significant competitive advantage in undertaking investment banking activities and other brokerage-related activities. “Historically many of the securities firms have specialized in one or more of the product market areas, such as institutional brokerage, retail brokerage, exchange floor brokerage, or corporate and municipal finance. Other firms have engaged in a relatively full range of securities activities, but limited themselves to a particular region of the country,” (Hayes et al., 1983). Merrill Lynch is one of such firms having a worldwide presence.

Competition among investment banking institutions has received great attention during the recent period. The proliferation of the Internet and other information and communication technologies has increased customer knowledge on the availability of various financial products and services and their relative merits and demerits. Consequently, the customers have become well informed of the intricacies of investing their surplus funds and their choices and expectations of services from the investment banks have gone up tremendously. This has necessitated companies like Merrill Lynch to adopt suitable marketing strategies to market their products and services successfully.

Economic globalization, cross-border activities, and consolidation have made the investment banking industry go through an incredible transformation. The business environment today witnesses a number of banks crossing international borders to market their products and services in various geographical locations across the world. The role and importance of investment banking can be seen from their engagement in public and private market transactions for corporations, governments and investors and in providing a number of benefits to these participants.

The importance of banks involved in securities transactions is also enhanced because their services and efficiency of them affect the financial markets and the ability of investment banks in minimizing the cost and maximizing profits is important for both the banks and their clients. Investment banks also contribute to the improvement of various other industry segments (Radic & Fiordelisi, 2008).

In this context, graduation and master level studies in the finance discipline requires extensive knowledge on the service of intermediation between issuers of stocks and investors through their involvement in advisory, mergers and acquisitions, debt capital markets and equity capital markets. There are a number of problems and issues in these areas, which need to be understood by the students desirous of pursuing their carrier in the financial services industry including banking.

On-the-job training programs like internships, provide excellent opportunities for the students to acquire first-hand practical knowledge on the ways the banks and investment companies function. During the course of internships, the trainees are able to suggest feasible solutions to practical problems faced by the organizations, where they are undergoing internships training by using the theoretical knowledge gained by them in the respective universities.

This report summarizes the experience and knowledge gained during the internship training of the author in Merrill Lynch, Dubai.

Merrill Lynch – a Background

Merrill Lynch, one of the high-ranking financial services organizations is functioning as the security broking division of Bank of America after the firm was taken over by the Bank. Bank of America acquired Merrill Lynch when it was in financial distress during the year 2009. The acquisition by Bank of America has helped Merrill Lynch to expand the bank’s activities in the areas of investment banking. “Merrill Lynch is among the world’s top brokerages, with some $2.2 trillion in customer assets. The company also provides corporate finance and investment banking services to institutional, commercial, and government clients. Merrill Lynch has offices in some 40 countries around the world” (Hoovers).

Vision, Mission and Values

The company has not expressly published its vision and mission statements. However, a review of the Website of the company indicates that the company would like to maintain its leadership position in the industry by building and maintaining solid partnerships with clients and the company places the client relationships first. The company declares that it is proud to conduct its business based on the following unwavering principles.

“Client Focus, Respect for the Individual, Teamwork, Responsible Citizenship, and Integrity.”

Based on this statement found in the Website of the company, this statement may be stated as the mission statement of the company. The company’s Website also talks of trusted advisors, global partners, the culture of innovation and superior execution. Attaining these ends may be considered as the vision of the company in order to retain its market position. With a large number of employees, executives and professionals working in different functional departments, this report is unable to present a comprehensive organizational chart pertaining to the Dubai office of the company where the internship training was provided.

SWOT Analysis

SWOT analysis enables an assessment of the internal environment of an organization. This analysis is required to identify the core competencies of the organization together with the resources available to meet the organizational objectives. The analysis also provides information on the potential chances and risks offered by the industry.

Strengths

Brand Recognition – Merrill Lynch is an internationally acclaimed brand in the financial services industry with an industry leadership position. The acquisition by Bank of America adds further to its reputation worldwide

Resources and Size – the company has regained its power in terms of resources and size after being taken over by Bank of America as its investment-banking arm.

Knowledge and Expertise – functioning within the industry for more than 100 years the company has gained considerable knowledge and experience in the financial services industry and investment banking. The company is able to extend the best services through its trained analysts, brokers and advisors, as they have access to the vast amount of information and analysis on different companies

International Presence – the company has more than 60,000 professionals working in more than 40 countries making the international presence of the company prominent. The international associates existing in these countries are able to provide domestic experience coupled with the company’s significant and innovative financial products, and services and use of up-to-date technological backup.

Superior Execution – leadership position in the markets chosen by the company enables the company to practice superior execution of the transactions.

Weaknesses

No clarity in the Vision and Mission – the company lacks a clear vision and mission to steer the organization strategically

Recent Financial Distress – the recent financial distress suffered by the company and the ultimate takeover by Bank of America has affected the international reputation of the company and has created a fear among the investors

Downgraded Credit Rating – the credit rating of the company has been downgraded by the agencies which have a negative impact on its business

Opportunities

Mergers and Acquisitions – the company will be able to enhance the scope for future business by undertaking mergers and acquisition activities

Expansion in the Middle East – there is a definite opportunity for the company to expand its business by increasing its presence in the Middle East

Positive Outlook for Asset Management Industry – the continued positive outlook for the asset management industry, one of the specialized areas of Merrill Lynch will help consolidate its business in the near future

Threats

Consolidation in the Banking Industry – continued interests for consolidation in the banking industry will create more competition for Merrill Lynch in investment banking

Increased Regulatory Pressures – the investment banks are subjected to more regulatory pressures in the United States after the 2008 financial crisis, which is likely to affect the business of the company

Credit Crunch – the economic situation still looks gloomy with the credit crunch still in existence. This is most likely to have a negative impact on the business of Merrill Lynch.

Marketing Strategy of Merrill Lynch

Creating a close relationship with the customer has been the main marketing strategy of Merrill Lynch. The company pursues clearly defined steps while providing investment advice to a customer. As a first step, the company defines the needs of the clients, assesses the risks and period for which investments for which investments are to made, and makes complete investment planning. Secondly, a careful and complete research is done followed by a sector selection. Finally, the stock selection is made. Merrill Lynch is able to classify investor details, build better association and devote more consideration to the clients’ needs and preferences.

Merrill Lynch follows a system of customer segmentation, which is a traditional one in which the company distinguishes several types of customers utilizing the services of the company. The set of customers include a wide range consisting of short-term hyperactive traders to long-term investors. The company devises separate marketing strategies to tackle these different types of customers to meet their individual needs. A marketing strategy becomes successful, when it is aligned with the needs and wants of customers. This implies that the organization should have a clear understanding of the needs of different customers and the behavior of end-users.

Merrill Lynch used its brand image as its unique selling point for promoting its products to different types of customers. The unique positioning of the company in the industry enables the firm to attract new customers and the innovative products of the company support the marketing efforts of the company.

Competitive Strategy of Merrill Lynch

Building on the distinct reputation of its industry leadership and superior performance remain the competitive strategy of Merrill Lynch. Based on this reputation, the company creates a platform, which can be used for investing in the continued growth of the company. “Basically the competitive strategy of Merrill Lynch is to implement various strategies or actions that will provide the best growth opportunities for the company, maintaining the competitive nature of the firm, and building on their client relationships.” Investing in existing as well of innovative resources is an important aspect in the competitive strategy of Merrill Lynch.

The company is keen to develop the human resources, update its technology and offer new and innovative financial services to cater to the increasing needs of its customers. This forms the basic elements of the company’s competitive edge over the competitors. The company prefers to acquire a continuing view of the international demands for stocks and other securities as well as establishing a firm and long-standing association with the clients.

With the focus of the competitive strategy on investing on internal growth, Merrill Lynch has taken all steps to attract the top talent available in the market to develop and deliver unique financial products and services to its clients. When many of the competitors in the industry reduced their human resources in the area of financial advisors, the company continued to hire more talents to contribute to the success of its three major business divisions.

Several small acquisitions and investments made by Merrill Lynch enabled the company to remain competitive, promote its growth and strengthen its lines of business. These acquisitions helped the company to provide added servicing in the mortgage finance platform and to garner added capabilities in equities through electronic trading. The company acquired the regional broker-dealer Advest which added to its competitive ability.

Job History

Since the author of this report took up the internship as part of the academic qualification of a university, degree there is no job history that could be provided as part of this report.

Conceptual Framework

Considering the scope of this report and the complexity of the investment banking business, the literature definition of investment banking is provided below:

“Investment bank’s business can be categorized in to five main areas: broking (the broking of securities is commodity business in which firms appeal to customers mainly on price and integrity); trading (the trading of securities drives on market volatility); investment banking (represents the underwriting of new issues and advisory work also referred to as Mergers and Acquisitions); fund management (includes both retail and wholesale fund management); interest spread (income derivatives from borrowed funds),” (Gardner & Molyneux, 1997).

Full service and boutique are the two kinds of investment banks. Full service investment banks offer clients provide a range of services to their clients to meet their specific needs. These services include “underwriting, mergers and acquisition advice, trading, merchant banking and prime brokerage” (Radic & Fiordelisi, 2008). For example, Goldman Sachs is one of the investment banking institutions that offer several financial and investment services to the clients.

On the other hand, Merrill Lynch involved itself in innovative investment banking products. In contrast to the full service investment banks, boutique investment banks offer specialized services in specific segments of the market and they do not form part of any larger financial services institutions. An example may be found in Greenhill, which specializes in “Advisory services in Mergers and Acquisitions, financial restructuring and Merchant banking.” (Radic & Fiordelisi, 2008) Similarly, Lazard offers “Financial advisory and Asset Management services.” (Radic & Fiordelisi, 2008)

The market for investment and savings products has witnessed a tremendous growth in recent years both in diversity of products on offer and volume of sales. Consumer is able to divest their surplus disposable incomes, which have helped to increase investor’s spending on these products and while the transformation in fiscal policy and deregulations and improvements in information technology that have on set of varied types of investment and savings products.

Traditionally, the preponderance of these products is distributed through financial intermediaries who work on a commission basis. However, with the development of newer financial service product offerings and intense competition among market players, the necessity for evolving new techniques and strategies for marketing of these products has evolved. One of the relevant concepts in marketing is the relationship marketing, which is found to be more influential in establishing and maintaining customer loyalty and satisfaction for improved performance of retail as well as investment banks.

In the modern customer centric competitive business environment, customer satisfaction, service quality and customer loyalty have proved to be the major factors in establishing a casual and cyclical customer relationship, which is vitally important for the growth of investment banking business. With a higher perceived level of service quality, the customer remains more loyal and satisfied which in turn increases the business of the investment banks.

More specifically, financial institutions such as investment banks have increasingly understood the strategic importance of customer value. With this realization, the institutions are continuously striving to evolve and implement innovative strategies that could enhance customer relationships. In this context, it is to be noted that the product offerings of many financial service products are almost similar and only slight product differentiation is possible. This characteristic of the products makes the value of the loyal customers more important for the financial institutions. Such loyal customers are likely to use the services of the investment banks more, spread word-of-mouth, withstand the offers from the competitors and recommend the services of the particular banker to other potential customers.

Building close relationship with customers is sure to result in better returns to the institutions. In view of the excessive cost to be incurred in attracting new customers, the institutions seek to develop and maintain long-standing relationship with the customers, so that they can increase the profitability of the organization. The present day banks have moved from the concept of transactional-based marketing approach to a relationship based approach, which has customer relationship at its core. For developing sustained relationship, customer satisfaction has been identified to be one of the essential prerequisite.

Fierce competitive trends and saturation in the financial service product markets have enhanced the need to garner effective competitive advantages by banking institutions. The growing demand for the banking products and service through new media like Internet has forced banks to respond quickly to new changes challenges in customer demand and to meet them, with new and improved business models. The long-term relationship with customers is the key success factor in the service industry, which enormously increases with the electronic channels. “The proliferation of new channels and the high demand for differentiated products has presented customers with a wide choice in terms of which service to use in order to profitably interact with the bank” (Petruzzellis et al., 2008).

The latest extension in portfolios benefits both the customers and banks alike. Banks are provided with the opportunity of capitalizing on the beneficial characteristics of the newer product lines and channels of marketing. For example, electronic channels enable the banks to reduce the costs of interacting with the customers through the substitution of labor-intensive processes with the use of automated devices and sales processes. In addition, the interactions resulting from face to face consultation enhance the opportunities for cross selling of the products.

It is imperative that the banks undertake an active management of the usage of customer’s service so that the bank would be able to benefit from the different strengths of its portfolio. In this process, the banks are under an obligation to understand the ways the customers may adopt for choosing between the portfolios. The banks should also understand the circumstances under which the customers make these choices. This understanding will help the bank in identifying the factors that are relevant in influencing the customer choice and their relative importance in making the choice.

The decision by the customers to adopt a service is driven primarily by the perceived benefits and perceived costs of using the new product. The adoption of the product thus depends on the ‘value’ the product can provide to the customer. The ‘value’ in this case is represented by the service quality of the product and the convenience the customer can derive out of using the product. The customers will also consider the risk involved in conducting the transaction using the product and the costs of carrying out the transactions through the product. Perceived convenience, service quality and price are the key bank attributes which influence the perceived value of a service.

The perceived value of service therefore depends on the moderating effects such as circumstances under which the customer chooses the service and the distinguishing features of the customer himself. It is to be inferred that the importance of the bank attribute among convenience, quality and price for choosing a service is most likely to vary depending on the situations and customer features. In consistent with the literature, it is possible to distinguish between two dimensions of loyalty. They are: a past loyalty that is more associated with the customer’s behavioral loyalty. This loyalty represents the relative importance of a specific banking service in the previous transactions decision of the customer a cognitive loyalty, which implies the behavioural intention of using the banking service in future.

In the context of social capital effect on the usage or choice of banking service and its consequent impact on customer loyalty, commitment on the part of the bank becomes a key construct as identified by the social exchange literature and the relationship marketing literature. As perceived by the customer, the relationship with a particular bank is so important that the buyer may decide that it is worth investing in special effort to maintain such relationship for an indefinite period. Such long-term relationship enhances the exchange relationships and acts as stimulation for promoting the willingness of partners’cooperation and complying with mutual requests.

The partners are able to share information and engage in joint problem solving exercises. Commitment also acts to prevent the negative effects of switching costs. Lack of commitment on the part of the customers will make them switch the service provider more frequently than the committed customers, and thus results as being a more powerful determinant in retaining customers than continuance commitment.

There are a number of factors, which influence the marketing of the financial service products. These products are service based offers and therefore are characterized by a high degree of intangibility and complexity. These characters in turn provide a high level of variability depending on the market situation. Factors such as type of demand, delivery style, duration, and significance to the client also influence the marketability of these products. The peculiarities of financial services products may lead to a conclusion that relationship marketing is the right approach applicable only within the financial services product categories.

However, it must be understood that the specificity of relationship marketing to the financial services products is attributed mainly because of the high risks involved and the necessity for a long-term relationship in view of the involvement of the client for carrying out the service delivery process. In the case of investment banks, it becomes necessary to establish a balance between the transactional marketing and relationship marketing strategies for arriving at an optimal position. However, the point at which the investment bank balances both marketing strategies cannot be permanent because of the interaction of various factors enumerated above.

Repeated – passive Behavior

In this case, the clients show a reduced level of involvement towards the financial product because the clients have full knowledge and are conscious of the principal characteristics of the products on offer. With a low level of involvement and limited perception of uncertainty, the clients can be said to be behaving in a passive manner. This implies that the clients would involve them in repeated interactions without actively looking for alternative service providers or offers.

The relationship marketing literature describes this type of behavior as “behaviorist loyalty.” This kind of behavior is manifested towards more complex financial products and services such as current accounts, transaction accounts and to some extent towards deposits and loan accounts. The clients in this type are confident of opening and using a current account, choosing a particular bank based on factors like accessibility and quickness and comfort in service.

The Rational Active Behavior

In this relational context, the involvement of the customers in terms of their control on the processes, participation and contact is high. With the complexity of the products and services, the degree of trust of the clients is also high. “Clients that buy in accordance with the rational factors are those that have enough personal abilities and information that allow them to understand the nature of the products and to realize pertinent comparisons between offers of the players on the market.” (Filip & Pop, 2007)

For analyzing the suitability of existing products/services, the knowledge of the customers about the brands and reputation is considered important. At the same time, the clients are also keen on the price. Price has been one of the essential criteria in taking a decision on a particular product/service and for maintaining the relationship with the service provider. When the price of the present service provider increases, the intention of the client to migrate to another becomes prominent.

Decision not to Buy/Not to Contract

In this relational context, those consumers who do not buy or contract any financial services products are included. The consumers do not buy or do not contract because they do not show any involvement towards the offer of financial products or services; neither do they have the means to conclude any transactions with the banks. However, they represent a potential client base for any financial service provider or an investment bank. The financial institutions in order to lure this type of customers have to adopt strategies, which stimulate the interests of the clients by encouraging the appeal on different financial instruments. One of the ways of increasing the degree of involvement shown by the consumer would be to introduce easy and comfortable access to different distribution channels for the potential clients.

Rational Dependent Behaviour

The clients in this relational context show a dependent relational behaviour, in which there is a high degree of involvement from the clients but a low degree of control and safety level because of their need for complex financial products. The clients are in need of consultations from the banks or any third party agencies to decide on the specific product choice for investment. That is why these clients are described as dependent clients. They form a relationship with the banks on their will so that they can reduce uncertainties and perceived risks in their investments. In the process, they structure a typical model of buying pattern.

Technical Part

This section of the report presents a discussion on actual projects undertaken during internship at Merrill Lynch and methodology used, limitations, finding, and suggested solution

First project undertaken in the internship program was to evaluate and highlight 10 Chinese stocks with detailed explanation as to the reasons for choosing the stocks. The presentation included preparation of relevant graphs showing the performance of the selected stocks. The work involved preparation of technical analysis, printing of portfolio pages and distributing them to the financial advisors for revisions. The next project undertaken was to study and analyze the government securities with the objective of understanding their description, similarities and differences as compared to other securities. Another part of the project included studying a specific income fund (The Pacific Investment Management Company LLC) to understand the special features of this fund.

The next project was to prepare a summary of the development of Indian economy and the project work involved highlighting all the factors that contributed to the development of the Indian economy including analysis of its different sectors. The project work also included preparation of a report on the hindrances that impeded the growth.

A project to study about Gazprom, one of the largest energy companies in the world, which supplies gas to many regions across the globe, was offered as a part of the internship. The report prepared for this project presented a review of the activities of the company in the areas of gas exploration, processing and transportation to various destinations. In between attending the major projects, time was spent on reading the RIC monthly report presenting a comprehensive analysis of the current markets and financial trends in various sectors of different economies. The report is useful to get valuable advice to both the existing and potential investors.

Through a discussion with the internship advisor, knowledge on various aspects of emerging markets and the impact of factors such as globalization, technological advancement and entrepreneurial skills on the development of the emerging markets was gained.

One of the major tasks undertaken during the internship was to prepare a detailed report on the opportunities for expanding the investment banking business in the GCC countries. This report was elaborate in dealing with the opportunities and threats present in each of the GCC countries and the impact of political and economic situations prevailing in each of the countries. The report also highlighted the financial status of some specific companies in the GCC region.

The financial and general performance of certain companies situated in Saudi Arabia, UAE and Qatar were included in the report. The next project included understanding the process of introducing new security issues as offers to public investors, which provided complete knowledge on the various means of determining the risks of a given security offer and the means that can be used to set the premium for those securities. The evaluation of customers’ portfolio in terms of their financial needs, investment capabilities and available investment capital in order to draft viable recommendations to suit the investment abilities of the customers was the next part of the internship program. The routine works relating to the opening, transfer, closure and maintenance of customers’ accounts formed part of the next module of the training.

Case studies of the evaluation of the portfolios of an older and a younger customer were undertaken as a part of the training. In this module, the study related to interest-bearing loans, which gave an insight into the potential risks and benefits to the clients and the issuer that can be found both in short-term and long-term was studied in detail. Study relating to over the counter (OTC) market, where transactions that are not covered under stock exchanges are carried out was the next project in the internship. The project included studying the risks involved in OTC dealings, which is a legal and prevalent practice in the United States.

Internship covered a project relating to the study about New York Stock Exchange, which is the largest equities market in the world enabling trading in stocks, bonds and other securities. The next project was a discussion on the Financial Industry Regulatory Authority (FINRA) and its functioning. FINRA is a regulatory body that formulates rules and regulations pertaining to all financial transactions related to the exchange markets. The aim of the FINRA rules is to protect investors from unethical and unfair dealings as well as to regulate and monitor the financial markets to ensure that everything is done right.

The rules include procedures to be followed in buying securities, requirements and the various forms of punishment for noncompliance. This project was followed by the discussion on the various formalities and regulatory requirements to be complied with in the case of trading in securities. The regulations include the guidance by the federal and state governments on the ways conducting equitable business and the penalties for non-compliance. The final project dealt with the constituents of financial statements and bookkeeping such as ledgers, financial statements including profit and loss accounts, balance sheets, and bank reconciliation statements. The importance and interpretation of charts and exhibits as visual aids to facilitate the understanding of some of the concepts used in the financial services industry was highlighted in this project.

Methodology

The methodology employed for all the projects undertaken during internship include detailed reports and discussions on different topics. The preparation of reports required an extensive research to be done on the relevant topic to make the contents and presentation effective. There was the need to refer to a number of professional journals and books, and contributions by different authors in the related subjects. The information for discussion was also found from the financial reports of the companies or agencies concerned and their Websites. Referring to the internship supervisor on the current issues and problems that are handled by the regular employees and executives of Merrill Lynch added to the existing theoretical knowledge. During the internship, reports were prepared on the following topics.

1. An overview of the Indian Economy
2. Chinese Stocks to invest in
3. Analysis of Gazprom
4. Analysis of GCC Markets
5. Investment recommendations of stocks in the GCC
6. Portfolio management Case 1
7. Portfolio management Case 2

Reports were prepared and presented in MS Excel sheets concerning two case studies. A power point presentation was made on the topic of portfolio management.

Limitations

One of the major limitations faced at the start of the internship was to get guidance and assistance from the co-workers, as everyone had their own daily functions to be carried out. Lack of experience in making presentations and the stage fright impeded the effectiveness in presenting the cases. Lack of skills to plan and organize financial data was another serious limitation faced in accomplishing the objectives of internship.

Lack of knowledge and skills in researching and finding the relevant information about specific companies affected gaining speed in reaching the targeted time in preparing for the projects. Some of the calculations and terminologies used in the financial information about the companies were beyond the current level of understanding and this presented a problem in gathering adequate and necessary information for the project.

Findings and Suggested Solutions

As far as the projects are, concerned most of them were the practical extensions of the theoretical knowledge gained during the studies at the campus. The internship provided the opportunity to learn additional skills in preparing and presenting reports, researching skills and a broad knowledge on different areas of financial services including dealing in stocks, bonds and other securities. Therefore, there was new knowledge and experience added to the existing knowledge and skills.

The report on the Indian economy enabled to get an in-depth knowledge on the factors that contributed to the development of the economy as well as the factors that were impeding the development of the Indian economy. The case studies on the portfolio enabled identifying the needs and preferences of the customers belonging to different age groups and their expectations and risks associated with the planning for the investments on their behalf. The report presented on the Chinese stocks to invest in gave the opportunity to learn the intricacies of analytical methods to be used for studying the financial positions of different companies from their annual reports and financial statements. This exercise also enabled to gain knowledge on preparing visual presentation aids like graphs and charts.

Analysis of Gasprom helped acquiring researching skills, which are essential to become an expert financial advisor. Without the researching skills, it may not be possible to gather the complete information on the working and performance of any company. The analysis of GCC markets and investment opportunities in those countries offered the chance to study a wider perspective of the financial services industry and the way the functioning of the industry is affected by different economic environments. Case studies in portfolio management improved and sharpened the analytical skills and enabled the use of the textbook knowledge in practical situations.

The power point presentation on the portfolio management was possible based on the expert knowledge acquired out of the internship training. In short, the reports and case studies were the foundation for the improvement of practical knowledge for using the theoretical knowledge gained in the classroom studies. They also helped in adding some special skills like researching and analytical skills apart from extending the experience to real life situations. The able guidance of the internship supervisor needs to be appreciated in completing these projects efficiently and presentably.

In addition, there were some findings on the functioning of Merrill Lynch, which is worth including in this report. These findings include potential changes in the corporate strategy, growth strategy and marketing strategy of Merrill Lynch where making some changes might bring in additional business and customers to the company. These are explained in the section ‘summary of findings and recommendations’ below.

Evaluation of the Internship Experience

Beginning of August 2, until September 3, 2010 the time outside the class was spent at Merrill Lynch in the internship program offered by the company. Being an intern in the wealth management of Merrill Lynch was a wonderful chance to experience a real work situation. Each day of the training was different from the earlier day and helped enhancing the knowledge and ability in general. The best part of the training was the skill developed to make own decisions and use judgment to do the best work one could do. It was possible to understand that the important part of a financial advisor’s job is not only to create a sound portfolio for a client but the ability to maintain it by diversifying it across different types of securities.

The internship provided extended knowledge on this area. This internship laid the foundation for acquiring new skills and methods for making an efficient analysis of the financial status of different companies by reading the annual reports of the respective companies.

Presentation skills are one of the major benefits derived from the internship training. The internship provided the ability to form a fairly specific and accurate picture of the financial services industry, which is very important when one wants to pursue a career with an investment banking institution like Merrill Lynch. At the end of the training period, it was possible to understand that in order to become a financial planner, one should be able to work on his own, be outgoing and people oriented, possess adequate researching skill and have a strong sense of the market and the financial services industry.

Supplementing the academic learning with this internship has provided an advantage of gaining practical knowledge on the bookish version of many issues. It enabled the application of academic learning to one’s career and it uses the expertise and knowledge in the real business world. The time spent with the internship supervisor and other professionals working for Merrill Lynch is invaluable since the experience made the knowledge and wisdom complete in all respects to meet the challenges of the real world after the studies are over. At the end of this internship, I take away with me an irreplaceable experience, which I am sure, will help me in shaping my professional career and will provide me a competitive edge over other peers.

Summary of Findings and Recommendations

The findings of this report suggest that some potential changes in the corporate strategy, growth strategy and marketing strategy will help Merrill Lynch to improve its organizational performance. In respect of corporate strategy, there is the problem of the non-alignment of the current vision and mission with the evolution of the market place. Lack of strategic focus impedes goal formulation at the organizational level, which eventually results in an inefficient performance.

Lack of delineation between the products and applications, organizational competence and market-segment approach has led to ill-defined competitive scope. Under growth, strategy there is a basic problem with the organizational structure. The current mechanistic structure of Merrill Lynch leads to an inefficient allocation of the available resources. This is because of a redundancy observed throughout all the product departments. Another issue is that the E-strategy of the company has not designed as an integrated element in the corporate technology structure but developed as a separate component.

There is a lack in the marketing strategy with its segmenting and targeting in which over generalized segments lead to inaccurate customer targeting. The segmenting and targeting is further complicated with a complex product structure and offering. There is ineffectiveness observed throughout all levels of the organization and training for new products rollouts. There is no tangible input from the employees, who are the first point of contact with the customers.

The organization may take the following actions to improve the strategic areas.

1. Redefining the vision and mission statements and reevaluate the organizational goals in the light of redefined vision and mission. There is the need to emphasize the core competency of Merrill Lynch in the redefined mission and vision statements
2. Introduce a matrix structure of the organization so that there can be efficient management of resources and elimination of overlap throughout the organization
3. An integrated knowledge management system needs to be utilized so that the managers may be able to draw up to date information for decision-making
4. The organization should develop a Total Quality Management System to enhance employee relations and support of the employees to new products rollouts as well as to ensure quality in service delivery to the customer
5. Precise and elaborate market segments need to be determined. There is the need to develop a clear, targeted service offering through a product/customer matrix
6. The organization may continue to promote the Financial Consultant partnership with the customers, which is its traditional stronghold in terms of its competence. In addition, the company may build a database and an Internet interface to enable a fee-based market analysis, which will supplement as an online trading component.

Conclusions

The purpose of this report is to present the progress made in the internship training provided by Merrill Lynch as a part of the academic program. The report while providing the technical part of the projects handled in the internship, also presented a conceptual framework of investment banking. The report identified that investment banks gain competitive advantages based on the quality level of services provided by these institutions. The internship provided the knowledge that with the advancement in the information technology, there has been tremendous growth in the number and nature of banking products and services.

Economic globalization has also contributed to the increase in the number and range of products and services offered by banks and other financial institutions. On one hand, the number of financial products and services has increased. On the other hand, there have been increased expectations from the customers in the quality level of customer services from the banks. This internship also provided the knowledge that the development of information and communication technology has significant influence in the way the banks conduct its business and maintain the relationship with the customers.

The internship provided an overview of investment banking and the activities included in investment banking, and the competition among investment banks has increased in the recent period. Proliferation of Internet and other information and communication technologies has enhanced the customer knowledge on the availability of various financial products and services. The internship provided evidences, to support the fact investment banking is mainly a revenue-motivated one and marketing has an important role in promoting the business of investment banking.

The observations made on the functioning of Merrill Lynch during the internship enabled an in-depth study of the strategic position of the company and there was an opportunity to offer some suggestions for improvement in the organizational performance of Merrill Lynch. Methodologies used to complete the projects during internship, limitations that impeded the progress and evaluation of the internship experience formed part of this report.

Works Cited

Filip, A. & Pop, N.A.,. Strategic Views regarding the Relationship Marketing Approach and the Transactional Marketing Approach within the Financial and Banking Segment. Web.

Gardner, E. & Molyneux, P., Investment Banking: Theory and Practice. London: Euromoney Books. 1997.

Hayes, S.L., Spence, A.M., Van, D. & Marks, P., Competition in the investment banking industry. United States: Harvard University Press. 1983.

Hoovers Merrill Lynch & Co. Inc. 2010. Web.

Petruzzellis, L., Romananzzi, S. & Gurrieri, A.R., Loyalty and Customer Satisfaction in Retail Banking: The Role of Social Network. Web.

Radic, N. & Fiordelisi, F., Cross Country Comparisons of Efficiency in Investment Banking. Web.

During summer and other vacations, students are expected to attend some internships and summer jobs preferable those that are in line with the courses they are studying in school. When in these vocational jobs, the students and the companies benefit from the short team contracts (Sides & Mrvica. 2007). This paper discusses the benefits that both students and the company get from internships and summer jobs.

The benefits to the company

The company stands to get a new source of labor that is mostly at a low cost than experienced employees; internships are loyal to the company and work for the good of the company. Despite the low cost, they need high supervision and ensuring that they perform their tasks diligently and effectively.

The need for high supervision can be used to the good of the organization as some low ranking officers can be given the role of monitoring the interns and in the process, they develop their supervisory and leadership skills. From that angle, when the interns are leaving an organization, they leave having assisted in the development of some skills in the employees.

Interns work hard to develop networking with the organization they practiced their internship, in this context, they are highly motivated and willing to create, innovate and invent new methods of doing business in the effort of leaving a land mark in the organisation.

When doing this, there are high chances they will come up with new systems of doing things that will benefit the organization in the future. During the course work, the intern might have learnt something that might assist him or she sees a strategic gap in an organization; when the management is advised on such areas, there are high chances of improving business processes.

In most cases, when an intern is leaving an organization, he or she is expected to give an analysis in the form of management report to the management that gauges the efficiency and effectiveness of business processes in the segment and probably any recommendation that can improve processes. The report can be of great assistance to the management as they can get an independent review of the processes for future improvements (Gareth & Jennifer, 2010).

The benefits to the students

Some subject demand that students should undertake some internship programs with a relevant company so when the students attend the internships, it is one way of fulfilling the demands of the course. When students are on the ground, they get a chance to connect what they studied in class with what is actually happening on the ground. They are thus able to appreciate and have deeper meaning on different causes and topics they study.

To some students, the internships and the vocational jobs give them the first experience in a working environment; they learn what transpires in an office in the move of preparing for future challenges of working environment. The finances they get can be used for personal projects or in some cases; it can be used to cater for fees.

When students are on the ground, they get a chance to network with people who are likely to offer them job chances when they have graduated; this assists them after they have completed their schooling. When students are given tasks and responsibilities, they are able to apply what they studied class to look for lasting solutions in the organization; in so doing, they feel their skills, talents, and professions have been utilized appropriately. When on the internship or vocational jobs, the student is able to develop social and professional links that can become very useful in the future career growth.

When a student is doing his or her internship, he get a chance to interact with diverse people in culture attitude and skills; to handle all these people the student needs to have some people skills, by the end of the attachment, he is able to appreciate diversity. Probably when he or she gets back to school, his or her attitude towards other students will have changed for the good.

Internships are used for reinforcing ones curriculum vitae, a person who has undertaken an internship is more likely to be considered in a job vacancy than a person who has no clue of what transpires in a formalized organization.

In some situations, the environment that a student is getting his summer job or internship may not be favorable, they may be hostile in one way or another; the hostility makes someone mature, independent, and more tolerant and understanding, when faced with limited funds, the student learns on self-finance management skills. The interaction with the “outside” world makes a student better offer in social, economical, cultural, and sometimes-political skills (Gareth & Jennifer, 2007).

Conclusion

Summer jobs and internships have mutual benefits to both the student and the company offering the internship. The student develops employment networks, social skills, and gets a chance to learn more on his area of specialization. On the other hand, the company gets new ideas and an independent review of internal processes.

References

Gareth, R. J.,& Jennifer, M. (2007). Contempary Management. New York: McGraw-Hill/Irwin.

Jennifer, M.,& Gareth, R. J. (2010). Essentials of Contemporary Management. New York: McGraw-Hill/Irwin.

Sides, C., & Mrvica. A. (2007). Internships: theory and practice. New Jersey: Baywood Pub. Co.

Executive Summary

Almutlaq Holding Company specializes in the manufacturing and selling of furniture. The vision of the company is to raise the level of performance and increased productivity locally and internationally. In realizing this long-term vision, the company is currently changing some activities in order to be a franchise system. This plan will cover the Gulf region and the Middle East on completion.

There is also a move to include Almutlaq Holding in the Saudi stock market to convert it from a closed-joint holding company into public company (Tong 550). This will enhance participation opportunities and financial securities for the Saudi citizens.

However, in the future, the company plans to choose business areas carefully based on the new and existing economic and social development variables in order to provide quality products and services to the consumers at reasonable costs depending on economic segments of society.

The company’s mission is to “develop the idea of showing, production, sales, and the endless work to raise efficiency and professionalism” (Green and Madison 106) to enhance economic development of the kingdom.

Based on this founding mission accompanied with the strong and professional supportive teams that manage its five vital departments (the IT department, the department of sales and marketing, procurement, accounting, and human resource), it has been registering a steady increase in sales and customers’ satisfaction.

It has also opened new companies, City. W Saudi Arabia, Sudair Furniture Factory, Real Estate Investment, and Almutlaq Co. Ltd to supply international and local furniture. Therefore, the report details the activities undertaken during the internship training at Almutlaq Holding Company.

The company attached its internship students to various departments depending on their areas of study. Having been attached to the accounting department, I had the pleasure to undertake the role of preparing financial statements, routine functions, inventory management, and promotion.

Company Description

Almutlaq Holding,

HQ – Olaya Main St., Opp. Alandalus Market

Having been established under the name of Almutlaq Company Limited by Almutlaq in the mid 1960s, the Almutlaq Holding has been expanding gradually in its mission of manufacturing and selling furniture in the Arab Kingdom and the world at large.

Under the management of commitment, loyal, and hardworking second-generation leaders, the company has gained a great reputation among local and global consumers (Green and Madison 109).

Through the establishment of Real Estate Invest, Sudair Fur Factory, City Saudi Arabia, and Almutlaq Co. Ltd, the company specializes in the manufacturing and selling of home furnishings such as sofa sets and wooden cabinets to employees, retailers, wholesalers, and other manufacturers in the United Arab Kingdom.

Figure 1 represents the organizational chart of Almutlaq Holding. It comprises the top management: the company CEO, CEO office manager, and the internal editor. Below the top management are five departments headed by the respective managers. Accounting department is headed by accounting manager working together with seven accountants responsible for managing the company’s finances.

The commercial operations manager works in collaboration with Almutlaq Co. purchasing manager, warehouse general manager, city warehouse general manager, and the purchasing manager, as well as internal purchasing manager. Under the human resource manager, there are other staffs comprising one personnel manager, two personnel coordinators, and two government relation representatives.

Under the leadership of IT manager are the programmer, ERP, systems and network administrators, and e-services manager. Marketing manager aided by the advertising manager, customer relations manager, and the photographer head the sales and marketing department.

Functions of Different Departments

The accounting department is responsible for routine functions such as recording transactions, reconciling bank statements, preparing interim and annual financial statements, securing the confidential accounting information, and carrying out inventory management (Kessler and Grant 129). The commercial operations department does not directly generate income into the company. However, its role is inevitable.

The department carries out procurement activities, collects company’s support functions of other departments by enhancing collaborative working environment, fosters development, and implements the company mission, policies, and guidelines.

Human resources department does the management of employee population such as “recruitment, training, compensation, employee benefits and relations, communications, and performance management” (Green and Madison 101).

The information technology department in Almutlaq Holding updates its website besides providing IT support requirements to the company.

The sales and marketing department carries out promotional activities as well as product definitions in terms of “color choices, package sizes, feature modifications, and even shifts to a new product line” (Kessler and Grant 130). The department is also charged with the responsibility of modifying the furniture according to preferences and quality demands. Besides, it receives and responds to customers’ feedbacks.

Internship activities

Working under the accounting department gave me a lot of impeccable experience to complement and apply my theoretical college knowledge into the real life situation. Having been ushered into the company by Ehab Dwedar, the accounting manager, and guided through by a team of professional accountants led by Abuobaidah Ahmed (my supervisor), I was at total ease carrying my specific tasks.

I have the greatest pleasure to acknowledge the experience gained from Almutlaq Holding Company as diverse and very vital for my future career.

I have experience in inventory management, recording transactions in the invoices, bills and vouchers, keeping bills and vouchers, collecting and monitoring debtors, reconciling bank statements with the company’s bank account, preparing trial balance, revenue statement, and balance sheet (Kessler and Grant 136).

Through the help of Reda Zeid as the e-services manager, I have also gained experience in social media business promotions. In Almutlaq Holding Company, motivation of employees through training, offering transportation services to customers, giving warranties, evaluating customers’ needs and preferences, printing, and social media promotions enable the company to be more effective and efficient.

How Al Yamamah University prepared me for the internship

At the university, I have gone through a vigorous training in finance. The course enabled me to specialize in entrepreneurial finance and financial management, learning financial statement and ratio, investment analysis, valuation and sources of finance, venture capital, and business angel financing (Tong 534).

Therefore, I developed knowledge of financial planning, investment and financial analyses plus income and cash flow statements, and balance sheets, which enabled me to effectively undertake and implement internship duties and responsibilities. Moreover, having learned how to prepare financial statements using secondary data at the University, I was able to relate my theoretical experience to the work at hand.

An assessment of the internship

My main responsibility at the Almutlaq Holding Company was to prepare the company’s financial statements such as trial balance, revenue statement, and balance sheet.

However, to broaden the capacity in my field of study, I took the initiative of supplementing the role with other responsibilities. I was also charged with the responsibility of recording transactions in the invoice, bills, and vouchers as well as keeping, collecting, and monitoring debtors, reconciling bank statements with the company’s bank account (Kessler and Grant 126).

Besides, I was given the role of making and keeping stock of furniture, maintaining inventory books such as stock transfer and physical stock register. Working under accounting department gave me a lot of impeccable experience to complement and apply my theoretical college knowledge into real life situation.

I have the greatest pleasure to acknowledge the experience gained from Almutlaq Holding Company as diverse and very vital for my future career. I have a firsthand experience in inventory management, business promotions, as well as preparing and managing financial statements, which are needed in business organizations.

Conclusion

Internship training is very vital in exposing a student to the real work environment because it does not only give experience to an individual. Rather, it supplements practical skills with skills, which I will not be able to acquire in classroom. The training also exposes one to more accounting and financial challenges thus providing relevant solutions that lead to a more technical expertise in the field of finance.

During my financial training at Almutlaq Holding Company, I got a chance to work with its co-branches, City Saudi Arabia, Sudair Furniture Factory, and Real Estate Investment. Therefore, I was exposed to several activities within the financial discipline such as company routine functions, inventory managements, and preparing interim financial statements (Green and Madison 100).

The skills and experience I acquired can enable me to work in any business venture. In addition, I acquired communication, organizational, leadership, and analytical skills, which have enabled me to realize that, at work, non-technical skills are equally very important.

Most significantly, I experienced various activities associated to my career and professional development because I was able to apply my theoretical knowledge to accomplish practical tasks effectively.

Works Cited

Green, Brian, and Roland Madison. “An Exploratory Study of the Effect of Professional Internships on Students’ Perception of the Importance of Employment Traits.” Journal of Education for Business 86.2(2011): 100-110. Print.

Kessler, Lara, and Rita Grant. “Internships as a Beneficial External Learning Environment: A Survey and Case Study of Accounting Interns and Employers.” International Journal of Learning 16.8(2009): 125-140. Print.

Tong, David. “Negative Opinion of Company Environment Mediates Career Choice of Accountancy Students.” Education & Training 54.6(2012): 534-557. Print.

Introduction

As a business and economics undergraduate, I appreciate the importance of developing relevant skills in order to succeed in the labor market. Subsequently, I participated in an internship program at NCB Capital, which is a newly created independent investment company of the National Commercial Bank of Saudi Arabia, for two months from June 2014 to July 2014. The objective of joining the internship program was to gain relevant skills and competence on investment products such as mutual funds, asset management, and other banks’ operations, hence closing the gap between the workplace environment and schoolwork. Subsequently, I participated in an internship program at the NCB Capital.

During the internship, I was positioned at the Private Division (eastern province) under the supervision of Ms. Sana Al-Jabr (Relationship Manager). In order to be effective in executing the assigned duties, I was required to read and understand different documents such as the credit approval memorandums [CAM], credit programs, rules governing the opening of bank accounts, and general operational guidelines in Saudi Arabia. I also prepared unofficial report showing the progress in the customers’ current accounts, mutual funds, and stock portfolio as requested by the relationship manager.

The purpose of this paper is to illustrate the various issues encountered during the course of my internship at NCB Capital. The report is organized into a number of parts. The first part is an overview of NCB Capital, which entails the company’s background, vision and mission, organizational chart, organizational competitive and marketing strategies, and SWOT analysis. The second section is the technical part, which covers a reflection on the projects undertaken, problems handled, methodological used, limitations, finding, and the implemented solutions. Thirdly, an evaluation of the internship experience, a summary of the findings, and recommendations are provided in the third and fourth sections respectively. The final section outlines a conclusion on the internship program.

Company background

The National Commercial Bank [NCB] was founded in 1953 in the Kingdom of Saudi Arabia through a royal decree. The firm was established through general partnership between two major currency houses in the KSA, which include the Salem Bin Mahfouz Company and Salehand Abdul Aziz Kaki. The NCB’s headquarters are at Jeddah, Saudi Arabia. NCB has undergone extensive restructuring since its inception. For example, in 1997, the firm’s structure changed into a joint stock company. However, the firm’s shareholding was changed in 1999, whereby its ownership belongs to private Saudi investors, the General Organization for Social Insurance, and the Public Investment Fund (NCB Capital, 2014a).

The firm has developed an optimal market position in the Saudi finance industry, which has risen from investment into product and service innovation. NCB is one of the pioneers in the Islamic finance and banking industries, as evidenced by its effectiveness in introducing new financial products into the market. For example, the company has established real estate finance, auto finance, mutual funds, and different types of Sharia-compliant financial products.

Moreover, the firm is committed to developing competitive advantage through innovation, as evidenced by its investment in effective and efficient technologies such as mobile banking and ATMs. NCB has established over 10,750 point-of-sale terminals. Consequently, the firm’s commitment to financial product and service innovation has improved the bank’s ability to meet the financial needs of over 3.5 million customers.

In an effort to develop its competitive advantage, the NCB has expanded into different regions across the KSA. According to the company’s annual report, NCB had established over 512 branches in the KSA by the end of 2013. Furthermore, the firm has also expanded into the international market by establishing branches in Bahrain, Singapore, the United Kingdom, Seoul, and Beirut. The firm has a total human resource base of over 9,631 employees, which enables it to be effective and efficient in serving its broad customer base.

NCB appreciates the importance of efficient business operations. Subsequently, the firm’s operations are divided into a number of business segments, which include investments, wealth management, consumer finance, business banking, and Islamic retail banking. The NCB Capital is the main business unit that deals with investment. NCB Capital operates a mutual fund that is designed in accordance with the customers’ needs. The unit has become the leading mutual fund provider in the KSA. Furthermore, NCBC has diversified its fund by incorporating the Sharia-compliant mutual funds. NCBC has been granted the right to deal with diverse investment banking and asset management products in the KSA by the Capital Market Authority. In addition to the above activities, NCBC provides other services such as custody, underwriting, arranging, advising, and securities’ management (NCB Capital, 2014a).

Vision and mission

In the course of its operation, NCB Capital intends to position itself as the global leader with regard to the provision of financial investment products. In an effort to achieve this vision, the firm is committed to diversifying its financial products in addition to penetrating new markets.

Organizational chart

The type of organizational structure adopted has a significant impact on the degree of interaction between the various internal organizational stakeholders such as the employees. Consequently, it is essential for organizational leaders to implement an effective organizational design. NCBC has adopted a flat organizational structure in order to ensure effective and efficient flow of information amongst the various divisional heads. The figure below illustrates NCBC’s organizational chart.

SWOT analysis

An organization’s operations are subject to the changes emanating from the internal and the external business environment. However, it is imperative for organizational managers to implement effective strategic management practices to deal with the market dynamics. NCBC has positioned itself optimally in the Saudi Arabian financial services industry due to its effectiveness in nurturing its strengths and improving on its weaknesses. Furthermore, the firm is focused at exploiting the prevailing market opportunities and managing the posed threats. The chart below illustrates a summary of the firm’s strengths, weaknesses, threats, and opportunities.

Organizational marketing strategy

The type of marketing strategy adopted plays a fundamental role in determining an organization’s ability to penetrate a given market. Thus, it is essential for an organization’s management team to conduct a thorough market research in order to make effective decision on the choice of marketing strategy. The market research should focus on understanding the prevailing market trends. NCBC intends to attain a significant market share in the assets and wealth-management market segments. Consequently, the firm has adopted a comprehensive marketing strategy, which entails the market expansion strategy. The decision to adopt the market expansion strategy arises from the recognition of potential gap within the global investment [asset and wealth] market segments (NCB Capital, 2014b).

The firm has divided its market expansion strategy into two components, which include increasing the sales of the existing and new investment products. NCBC is committed to increasing the sales of its current investment products amongst the current and potential customers. Furthermore, the firm has taken into account foreign markets as a potential source of its increased sales for the existing products by diversifying into the GCC markets.

NCBC has also incorporated new product development in its market expansion strategy. The firm invests in extensive market research in order to identify potential market opportunities that can lead to the development of viable financial investment products. The market research enables the firm to gain insight on how the existing products can be refined in order to address the market needs of new market segments.

Moreover, the firm has ventured into new market segments through product line extension. In an effort to increase its market presence, NCBC has identified a potential market opportunity in other regions of the world such as the European Union and the Middle East and North Africa [MENA] region. In 2013, NCBC announced its decision to market its financial products in the European Union through the NCBC Investment Management Umbrella Public Limited Company, whose operations will be based in Ireland. NCBC has introduced new funds, which include the NCBC GCC Equity Fund and the NCBC Saudi Arabian Equity Fund through this new platform. The firm’s decision to penetrate the European Union market arose from the need to achieve long-term capital growth.

Organizational competitive strategy

The business environment has undergone remarkable evolution over the past decades. One of the major sources of evolution relates to the high rate of globalization. Subsequently organizations are competing on a global scale. NCBC appreciates the importance of developing competitive advantage in order to survive in the contemporary business environment and to improve its performance efficiency. In an effort to achieve competitiveness, NCBC has adopted the focus strategy as its core competitive strategy. Dirisu, Iyiola, and Ibidunni (2013) argue that the “focus strategy concentrates on a narrow segment and within that segment attempts to achieve either cost advantage or differentiation” (p. 271).

The firm’s decision to adopt the focus strategy arose from the need to achieve competitive advantage through product differentiation. Thus, the firm has considered the consumer’ investment needs as its core area of operation. Moreover, the choice of the focus strategy as a source of competitiveness has arisen from the need to develop a broad product portfolio by tailoring its investment portfolio products to the customers’ needs.

NCBC’s ability to differentiate its investment portfolio successfully has been necessitated by its competence with regard to development of financial products. For example, the firm has a well-experienced human capital base with regard to asset and wealth management. Dirisu, Iyiola, and Ibidunni (2013) emphasize that the process of developing business strategy should take into account its core capabilities, resources, and skills that constitute its core competencies. Subsequently, a firm can differentiate its investment portfolio in such a way that it meets the customers’ demands. Its focus strategy has played a fundamental role in increasing the firm’s ability to market its products to individual and institutional customers. Furthermore, the focus strategy has played a fundamental role in improving the level of customer loyalty.

Job history

During my internship at NCB Capital, I undertook a number of tasks and projects. The table below illustrates the daily tasks undertaken over the two months.

Table 1; Daily tasks during the first month of the internship.

In addition to the above daily tasks, I undertook a number of tasks during the second month as illustrated in the table below.

Conceptual framework

The contemporary labor market has undergone remarkable changes over the past few decades. Organizations are increasingly demanding an effective and efficient labor force in order to attain business excellence. Saks and Haccoun (2010) are of the opinion that human capital is a fundamental component in organizations’ pursuit for sustainability. This aspect underscores the importance of students possessing adequate and relevant skills in order to succeed in the modern labor market. Apprenticeship training is one of the avenues through which students can develop relevant skills and competence.

Mohrenweiser and Uschi (2010) argue that some of the specific skills required in order to achieve organizational excellence cannot be attained through general-purpose education. Lerman (2014) asserts that internship or on-the-job training is an effective mentoring method that equips students or new employees with relevant skills.

The significance of developing relevant skills has motivated some countries to appreciate the importance of improving their workforces’ skills through apprenticeship training. For example, Mohrenweiser and Uschi (2010) argue that the ‘increase in the returns to a college degree and other skills experienced in the OECD countries over the past 20 years has added the sense of urgency to concerns regarding skills” (p. 112). Higher learning institutions are increasingly integrating internship programs into their structured learning programs.

The internship programs aim at providing students with a meaningful learning experience. Despite the jobs done during the internship being menial, students are in a position to understand specifics of the respective field, profession, or job (Dustmann & Uta, 2012).

Moreover, internship provides students with an opportunity to apply the theories learnt in the classroom in a real work environment. The internship programs are effective avenues through which students gain adequate skills that enhance their ability to work in such a position in the future. Saks and Haccoun (2010) assert that internship programs enhance the students’ ability with which they make decisions regarding their career path. Therefore, internship programs contribute towards the students’ personal development efforts. Furthermore, internship programs are beneficial to the organization offering them and the students’ institution. This trend has arisen from the change in employers’ behavior, whereby they are increasingly inclining towards students with real world experience during the recruitment processes.

Different models of internship have been developed based on duration, remuneration, and schedule as illustrated by the figure below. The duration of internship program varies and it can last for a month or more than a year. The internship program may be full time, part time, paid, or unpaid. Furthermore, the internship program may be a key requirement in achieving academic qualification in higher learning, which means the students gain points that are added to the their average academic points.

Technical part; reflection on actual projects undertaken and problems handled, and method

During the apprenticeship program, I undertook a number of projects, which played a fundamental role in gaining competence on various issues associated with the asset and wealth management. First, I was charged with the responsibility of helping customers to open new accounts. Additionally, I was required to compile unofficial report such as the CAM as requested by the relationship manager and other departmental heads. Another major project entailed reviewing the various rules and regulations that govern the operations of financial institutions in the KSA as stipulated by various regulatory agencies such as the SAMA and the Capital Market Authority.

In order to ensure that my presence at NCB Capital was of additional value to the organization’s performance, I was required to undertake extensive reading on the company’s operational practices. Therefore, I undertook a comprehensive analysis on the various strategic management practices that the firm integrates during its daily operations. This goal was achieved by reviewing voluminous documents stipulating the directions and guidelines that investment companies in the KSA should observe. Moreover, gaining knowledge on the organization’s operation was also achieved through extensive training on the various financial information management technologies that the firm has implemented in its operations such as the FACTA management system.

Considering the NCB Capital’s intention to invest in the global market in order to achieve an optimal market position, I was required to understand how the organization takes into account the prevailing market opportunity. For example, by assessing the stock price movement in the Saudi Arabian stock exchange market in comparison with other stock markets such as the US and GCC countries.

Methodology used

Internship programs aim at enhancing the intern’s new knowledge, competence, and skills. The methodology incorporated during a particular internship program has a remarkable impact on the intern’s ability to gain from the internship process. Moreover, it is imperative for the organization offering the internship program to provide interns with an opportunity to undertake the assigned tasks and responsibilities effectively and efficiently. In line with this argument, NCB Capital management team incorporated an effective qualitative methodology. The choice of this design was to gather sufficient data that would enhance the ability to gain new skills and enhance the knowledge gained.

Some of the techniques adopted in imparting knowledge to the intern entail conducting literature review on the various aspects associated with the organization’s operation. Voluminous documents were read in order to gain optimal understanding on the various aspects that the organization takes into account in its operation. Some of the documents reviewed include the Company Law and the rules governing the operation of investment companies as stipulated by SAMA. Furthermore, the review also entailed evaluating the most effective investment strategies adopted by investment companies.

Another methodology that was incorporated during the internship program entails mentoring. As an intern, I worked closely with my supervisor and other departmental heads. This aspect played a fundamental role in receiving knowledge and skills on how to deal with various work-related issues.

Moreover, I observed as my co-workers undertook various tasks. For example, through observation, I gained knowledge on how to fill some investment forms and monitor real information on stock price movement through various mediums such as the television and computer networks. In addition, the internship program also took into account both on-the-job and off-the-job training. Off-the-job training entailed participating in training conferences outside the organization. Subsequently, I had an opportunity to gain knowledge on the prevailing industry dynamics.

Findings

A number of findings can be deduced from the internship program. First, a wide range of investment vehicles from different investment companies characterizes the investment market. This aspect provides investors with a wide choice of investment products that they can consider in their investment processes. Despite this aspect, the choice of investment portfolio amongst investors varies due to differences in the degree to which they are risk averse. Some investors are more risk averse than others.

Investment companies such as NCB Capital provide investors with expert advice on how to construct an optimal investment portfolio. Additionally, they also specialize in developing financial investment products such as bonds and mutual funds. However, their ability to provide customers with investment products that contribute to wealth maximization is subject to the extent to which they understand the prevailing market dynamics.

As an intern at NCB Capital, I established that the firm is focused at developing optimal financial products that enhance its clients’ ability to maximize their returns on investment. Furthermore, NCB Capital’s ability to provide customers with optimal investment services also emanates from its commitment to continuous and new product development. This goal has been achieved through adoption of effective competitive and marketing strategies. Subsequently, the firm has been in a position to penetrate the global financial instruments’ market.

Another major finding during the internship relates to the significance of understanding the prevailing market dynamics in organizational strategic management. Changes in the external environment have a remarkable impact on an organization’s performance. NCB Capital undertakes a continuous evaluation of the market trends in order to make an optimal investment decision. Additionally, I developed a greater understanding on the significance of adhering to the rules and regulations as outlined by various industry regulators such as the Capital Markets Authority and the Central Bank. Failure to adhere to the set rules and regulations may increase the cost of compliance in an organization. For example, the organization may be penalized heavily in addition to losing market reputation.

The program also led to the identification of the different financial products that investors can consider in developing their investment portfolio. For example, a study on the Saudi stock exchange market showed that the investment products are categorized in accordance with the sector such as the telecommunication, manufacturing, retail, petrochemical, insurance, and energy companies. Additionally, the internship led to an understanding on the various brokerage series offered by the local brokerage firms such as online trading, tele trading, VIP lounges, and personalized trading.

Limitations

In the course of executing the roles and responsibilities assigned, I was required to undertake extensive reading on diverse aspects associated with the organization’s operation. Despite gaining extensive knowledge on the organization’s operation, I was required to observe high ethical standards by keeping some of the company information confidential. Therefore, the extent to which I discussed the company’s confidential information was limited to the co-workers.

Evaluation of the internship experience

The internship program has played a fundamental role in improving my skills, knowledge, and competence on diverse issues by participating in the process of analyzing different projects. Moreover, I had an opportunity to observe how different workplace tasks are performed. Therefore, I envisioned myself working in such job positions and how I would deal with the issues faced. Participating in the program was a perfect opportunity to gain knowledge on the operation of various institutions charged with the responsibility of monitoring financial investment activities in Saudi Arabia. For example, I gained knowledge on the operations of the Saudi Arabian Monetary Agency.

Through the internship, I was in a position to appreciate the role of the SAMA in regulating money supply within the country through the issuance of coins and notes. Furthermore, the internship program led to a greater appreciation on the role of the Saudi Arabian Central Bank [SAMA] in fostering the country’s economic growth by facilitating investment activities both locally and internationally.

These skills were acquired by comparing SAMA’s operations and that of the US Federal Reserve System, which is its equivalent. Participating in the internship program provided me with a perfect opportunity to apply what I had learnt in classroom in the workplace environment. Thus, I was in a position to gain hands-on experience on the operations of regulatory authorities in the KSA such as the SAMA. The knowledge and skills gained will be critical in bridging the gap between the practical working environment and the classroom theories.

During the internship, I was positioned under the NCBC’s Relationship Manager, Ms. Sana, as my supervisor. However, I was required to maintain a good working relationship with other departmental heads such as the Treasury Division, Business Analyst, and the Wealth Manager. Thus, I was in a position to appreciate the importance of developing an effective internal organizational communication. The internal communication system has a significant influence on the extent to which the various departments maintain an effective working relationship. The reporting relationship provided me with an opportunity to interact with the various departmental heads. Consequently, I gained relevant skills and knowledge on the operation of investment companies.

Through the internship, I developed a great appreciation on the importance of developing adequate statistical skills in order to excel in analyzing the trend of investment markets. The internship provided me with an opportunity to gain experience on the application of various software such as Microsoft Excel in preparing clients’ reports and analyzing the trend market performance. For example, the internship provided me with an opportunity to apply various computations that were learnt in college such as the par value, maturity date, yield, and market price, which are some of the core features of a bond.

These skills will play a remarkable role in improving the effectiveness and efficiency with which I make decisions on the most effective securities to consider in the process of constructing an investment portfolio. During the internship, I was required to assist customers in understanding various issues associated with their investment portfolio by preparing unofficial report on their investment portfolio.

As an intern at NCB Capital, I was required to execute the various tasks and responsibilities assigned by the various departmental heads despite being under the direct supervision of the Relationship Manager, Ms. Sana. By working in the Treasury Division, I gained adequate skills and knowledge on the various investment products that investors can integrate in order to maximize their investment returns.

The program provided me with an opportunity to gain first-hand experience on the degree to which investors are risk averse in making their investment decisions. Knowledge on the degree of risk averse amongst investors in Saudi Arabia will play a remarkable role in improving the effectiveness with which I will provide consultancy services on how to minimize the risk associated with a particular investment portfolio. Through the internship, I developed a broader appreciation on how knowledge on investment can be implemented in order to reduce the risk of price movement. Thus, I will be in a position to integrate effective skills that will ensure adequate protection to the investors’ funds through price movements.

The modern investment environment has undergone remarkable evolution, as evidenced by the high rate new investment products are being developed in order to meet the prevailing market demands. Participating in the internship program was an effective source of knowledge on the various Discretionary Portfolio Management strategies that can be implemented in order to improve the effectiveness with which a particular investment fund achieves long-term growth. The strategies will enable investors to be effective in selecting the investment company from which to purchase their investment portfolio. This goal will be attained by gaining competence on how to select investment companies whose investment vehicles such as equities have a high probability of attaining high dividend payouts. Subsequently, I will be in a position to provide investors with the various strategies that they can integrate in constructing an optimal investment portfolio.

During the two months’ internship period, I had an opportunity to learn the various products and services that NCB Capital deals with in its operations. This aspect provided me with an opportunity to understand the difference between the various conventional and Islamic finance investment product. For example, I understood the difference between bonds and sukuk investment products. As a business and economics student, I had developed sufficient background information on the various types of investment vehicles such as bonds that individual and corporate investors can integrate in constructing effective long-term investment portfolios. However, through the internship program, I gained additional knowledge on the various elements that are taken into account in developing the bonds.

Challenging experiences encountered

Internship programs aim at equipping students with an opportunity to learn new issues. Thus, I was cognizant of the likelihood of experiencing different challenges. One of the challenges experienced during the course of the internship relates to difficulties in differentiating the various divisional heads such as the Business Analyst and the Relations Manager in the process of compiling the Credit Approval Memorandum [CAM].

In order to deal with this challenge, I conducted a comprehensive study on the organization’s structure in order to understand the roles of the various departmental heads. This aspect played a fundamental role in appreciating the prevailing reporting relationship. Moreover, I also recognized the importance of seeking assistance from my supervisor and co-workers by fostering a good working relationship, which led to the development of an effective feedback mechanism. Collaboration is a fundamental component in enhancing an organization’s operational efficiency. This assertion arises from the view that an organization can improve information sharing amongst the diverse internal stakeholders. Consequently, the likelihood of achieving synergy is improved considerably.

Some of the activities undertaken during the internship entail extensive reading of various documents. In some instances, I was required to read confidential information regarding the firm’s operations and strategic plans. Subsequently, maintaining a high level of confidentiality regarding the organization’s operation was a key requirement. Furthermore, I was required to undertake extensive reading on documents that contained information, which I found to be entirely new. In order to be effective in executing the duties assigned, I was required to pay intensive attention on the documents. Another major challenge encountered was differentiating the conditions for delivery on each expiry date for each structure of the three product structures learnt.

In a bid to be effective in implementing the duties and responsibilities assigned, I was required to develop a comprehensive understanding on the various DPM strategies that the organization has adopted. These strategies include basic investment strategy, investment strategy for growth and income, investment in mid-cap equity, and investment strategy in pure equity. However, understanding the four DPM strategies was challenging due to their complexity. Additionally, the strategies were new aspects with regard to investment. In a bid to deal with this challenge, I conducted a comprehensive literature review on the strategies in order to gain a bet understanding on their application in the real business environment.

Summary of findings and recommendations

This report illustrates that one can acquire numerous benefits through an internship program. The two-month internship program at NCB Capital has been very instructive. First, the program has provided me with an opportunity to enhance the theoretical knowledge gained in the classroom. For example, the workplace environment provided an opportunity to apply the skills and knowledge gained in the classroom.

Additionally, I have gained adequate skills that will be of great help in my personal and career development. The internship program has been a great source of information on the core aspects that employees should take into account in order to succeed in the workplace. For example, through the internship, I developed a greater appreciation on the importance of collaborating with co-workers in order to be effective in executing the tasks assigned. Additionally, the internship led to improved recognition on the importance of ensuring that an organization operates as a unit in order to achieve the desired synergy.

During the internship, I was assigned different tasks and responsibilities. Some of the responsibilities were new, which means that I had to undertake extensive reading in order to achieve the desired results. This aspect was a unique opportunity to develop my competence. Through such reading, I gained wide knowledge on various aspects associated with investment. For example, the readings equipped me with knowledge on observing different aspects that influence the quality of an investment portfolio. Subsequently, I will be in a position to provide expert advice on how to construct an investment portfolio that will enable clients maximize their wealth.

The decision to participate in the internship program will play a fundamental role in enhancing my competitiveness in the labor market. This assertion arises from the view that I gained additional skills that cannot be acquired in the classroom or mentorship from the various departmental heads that I met. The various departmental heads have developed sufficient experience over the years on the prevailing labor market trends. Therefore, the interaction was a source of expert advice on how to succeed in the contemporary work environment.

In addition to the above aspects, I appreciated the importance of being independent and ensuring that the tasks assigned are completed efficiently without being supervised. This aspect will be of remarkable assistance in my career progress considering the high rate at which organizational managers are anchoring the employees’ reward system on a comprehensive appraisal program.

Interning at NCB Capital was also fun as I had an opportunity to interact with various stakeholders in the financial services market by participating in conferences organized by NCB.

In summary, one can argue that the knowledge, skills, and competence gained through the internship programs play a fundamental role in improving a student’s competitiveness in the labor market. Therefore, there is a high probability of developing an effective and efficient labor force, hence improving an organization’s productivity. Therefore, internship programs can contribute towards improvement in a country’s economic performance through improved productivity of the labor force.

Therefore, it is imperative for the relevant stakeholders to improve the quality of their labor market through internship. The government and learning institutions can facilitate internship programs via different avenues. First, the government should ensure that learning institutions adopt effective programs that contribute towards bridging the gap between the skills learnt in classrooms and the labor market demands.

This goal can be attained by formulating a policy making it mandatory for organizations to provide students with an opportunity to participate in an internship program. The decision on whether the internship should be paid or unpaid should be left to the respective organizations. In order to motivate organizations to consider internships as a key component in their human resource management, it is imperative for governments to offer incentives such as tax credit to organizations that integrate such programs.

Conclusion

The above evaluation illustrates the prevailing differences between the school curriculum and the real work environment. Despite most governments formulating comprehensive syllabuses to be followed in institutions of higher learning, most of the skills acquired in the classrooms are not sufficient in dealing with workplace requirements. The workplace environment is characterized by numerous and complex tasks that employees are required to execute effectively. Subsequently, it is imperative for an organization to have the right quality of workforce in order to meet the demands of the various job descriptions. Subsequently, the organization’s ability to achieve long-term competitiveness with regard to human capital will be improved significantly.

This report identifies internship programs as a critical component in bridging the gap between the theories learnt at school and the real work environment. Internships enable students to identify the gaps in their practical skills. Participating in an internship program enhances the students’ employability and hence their success in the labor market. Subsequently, it is imperative for organizations and learning institutions to collaborate in assisting students to develop skills, knowledge, and competence that will increase the likelihood of succeeding in the competitive labor market. Through adequate collaboration, there is a high probability of institutions of higher learning improving the students’ skills, hence increasing their alignment with workplace demand.

References

Dirisu, Y., Iyiola, O., & Ibidunni, O. (2013). Product differentiation; a tool of competitive advantage and optimal organizational performance. European Scientific Journal, 9 (34), 258-282. Web.

Dustmann, C., & Uta, S. (2012). What makes firm-based vocational training schemes successful? The role of commitment. American Economic Journal of Applied Economics, 4(2), 36-61. Web.

Lerman, R. (2014). Expanding apprenticeship training in Canada; perspective from international experience. New York, NY: American University. Web.

Mohrenweiser, J., & Uschi, B. (2010). Apprenticeship training- what for? Investment in human capital or substitution of cheap labor. International Journal of Manpower, 31(5), 545-62. Web.

NCB Capital: NCB Capital office. (2014a). Web.

NCB Capital: NCB Capital UCITS funds platform. (2014b). Web.

Saks, A., & Haccoun, R. (2010). Managing performance through training and development. Toronto, Canada: Nelson Education. Web.

Appendices

Appendix 1; LOG BOOK #1

Appendix 2; LOG BOOK #2

Appendix 3; LOG BOOK #3

Appendix; LOG BOOK #4

Appendix 5; LOG BOOK #5

Appendix 6; LOG BOOK #6

Appendix 7; Progress Report

• College of Business
• Internship
  • Progress Report -1-
  • Student Name & ID:
  • Supervisor’s Name:
  • Internship Site: NCB
  • Section 20
  • July 6, 2014
  • Progress Report

Introduction & Position Description

NCB (National Commercial Bank) is the first Saudi bank to be licensed in KSA, a real invention that was founded in 1953 by a royal decree, as a general partnership, for the integration of the largest currency houses in the Kingdom: Salehand Abdul Aziz Kaki, and the Salem Bin Mahfouz company. The two businesses merged to form the first Saudi bank legally registered. A few years after of its existence, specifically in 1979, NCB became the first Saudi bank issued mutual funds and have done a lot of innovations in real estate finance and auto finance. Since then, the National Commercial Bank have pioneered towards the development of many Shariah compliant financial services in all his dealings and services provided to more than 3.5 million customers.

NCB Capital newly created independent investment company of the National Commercial Bank, which takes pride in being the first company independent subsidiary of a Saudi bank, to be licensed by the Capital Market Authority to handle investment banking and asset management in the Kingdom to provide a broad spectrum of services and solutions and investment products. I was positioned at the Private Division (eastern province) under the supervision of Ms. Sana Al-Jabr (Relationship Manager), they basically provide investments designed according to the client’s request, as well as wealth management services to suit individual requirements; this includes both investment advice and brokerage services.

Responsibilities and Tasks Performed

Considering me being an intern at the first weeks, it was a tour between Treasury, RMs, Wealth managers and Business Analyst. My responsibility was doing what I have been asked for by all of them. However, I’m required to discuss and understand all the documents provided such as the CAM (Credit Approval Memorandum), Credit program, Rules for governing the opening of bank account and general operational guidelines in Saudi Arabia. In addition, I prepared unofficial reports that some clients asked the RM’s for to have a clear vision of their current accounts, mutual funds and stock portfolio under the provision of Ms. Sana, who is responsible for the weekly highlights (Sample product attached in the end).

Conclusion

Honestly, being here for almost a month taught me a lot of important things that will help me in the future regarding my career path, introduced me to the work environment, how they perform their jobs and what process do they follow. Adapting with such people is a great opportunity for me to take advantage of their experience and work on applying their advices. Although I might just work on few tasks, but it was new for me, I have studied many things and now it is the time to apply what I learned in real life.

Sample Product

Appendix 8; Progress Report

• College of Business
• Internship
  • Progress Report -2-
  • Student Name & ID:
  • Supervisor’s Name:
  • Internship Site: NCB
  • Section 20
  • July13, 2014

Introduction & Position Description

NCB (National Commercial Bank) is the first Saudi bank to be licensed in KSA, a real invention that was founded in 1953 by a royal decree, as a general partnership, for the integration of the largest currency houses in the Kingdom: Salehand Abdul Aziz Kaki, and the Salem Bin Mahfouz company. The two businesses merged to form the first Saudi bank legally registered. A few years after its existence, specifically in 1979, NCB became the first Saudi bank issued mutual funds and have done a lot of innovations in real estate finance and auto finance. Since then, the National Commercial Bank have pioneered towards the development of many Shariah compliant financial services in all his dealings and services provided to more than 3.5 million customers.

NCB Capital a newly created independent investment company of the National Commercial Bank, which take pride in being the first company independent subsidiary of a Saudi bank, to be licensed by the Capital Market Authority to handle investment banking and asset management in the Kingdom to provide a broad spectrum of services and solutions and investment products. I was positioned at the Private Division (eastern province) under the supervision of Ms. Sana Al-Jabr (Relationship Manager), they basically provide investments designed according to the client’s request, as well as wealth management services to suit individual requirements; this includes both investment advice and brokerage services. Trading equities, Private equities, foreign exchange, interest rates, Funds, Bonds…etc. are terms that are heard and used very often this week.

Responsibilities and Tasks Performed

Completing more than a month now as an intern at NCB has made me become much more familiar with the work types and the work process, where I received permission to have a look on different projects such as (GCC real estate fund, EastGate capital group, Imperial Project and Asia opportunity fund). However, my daily responsibilities as it is mentioned on the previous progress report still remains, and that is doing what I have been asked for, discussing and understanding all the documents provided. Attending all conference calls that I am allowed to attend and maintaining confidentiality is considered a responsibility.

During the conferences, one can hear everyone talk about the bank and all major information are being posed and discussed. In addition, I prepared schedules for a few clients, as an initiative to know to either renew or invest in other places if the product reaches maturity date. In a basic form, mainly my responsibility is to do what my supervisor commands. (Sample product attached in the end)

Conclusion

Briefly, those weeks got me deep into the work environment, the bank and how it operates, watching the Middle Office (RMs and Wealth managers) making the calls, exchanging rates, loaning, trading and confirming transactions gave me an overview of what NCB mainly does, and how clients requests are completed. Showing my willingness and getting engaged in the team and proactive in asking for more projects and responsibilities made me realize how the work in our department is processed and what each member does and is responsible for in the workplace.

Organisation Background

Hydra Trading LLC is located in Abu Dhabi. The company provides logistic services to the army. Hydra’s mission is to provide the best logistic services and solutions to assist customers meet to their strategic objectives.

Hydra works with other international organisations to deliver various products and services to their customers.

The company’s areas of expertise include defence industries, strategic partnership services, medical industry, brokerage, and marine services.

Major clients are “the United Arab Emirates (UAE) military, civil defence, government organisations, public, and private Sectors” (Hydra Trading LLC, n.d).

The company is a member of the Royal Group of Abu Dhabi.

Internship Focus

The focus of the internship was to develop an International Organization for Standardization (ISO) standard for the company. Hydra lacks a quality standard for its products, services, procedures, and processes.

The internship focused on all stages involved in developing the company to achieve an International Organization for Standardization (ISO) standard.

It identified areas of strengths and weaknesses of the company based on ISO standards, strategies used to identify weaknesses, and methods of improving Hydra’s weaknesses in order to develop quality standards for the company.

The need for a quality management system is a strategic decision for Hydra, which can facilitate processes and procedures of logistic services and products. The firm must meet various needs, specific objectives, products, and services in its quality management systems.

Quality management in organisations is relevant for management professionals because of dynamic industry characteristics and customers’ demands. Thus, the need for knowledge in quality management is critical for graduates and professionals in the management.

Professional Growth

The internship programme allowed me to grow professionally in management. The programme introduced me to organisational working conditions.

At first, the company’s operations appeared complex and difficult to understand. I got orientation from the logistic manager about operational procedures and processes of the company.

During my internship, I got technical, practical experiences I wanted. The programme included analysing and understanding all operational processes and procedures of the company.

I also had to identify areas of weaknesses in the supply chain of the company. I learned a lot about management in the logistic industry.

I had a goal oriented learning project. The process involved identification of all areas of improvement in the company and developing quality standards that had to guarantee that the company could receive ISO.

At the end of the programme, a supervisor had to check the project and recommend improvement.

My experience was that of a typical business environment. The company usually matches an intern’s areas of focus to a specific manager in that field.

This was important for me because I had to understand potential challenges in management, decision-making, and techniques of resolving difficult situations.

The organisation also had social events in which people learned about communication activities. In this event, I learned that organisations have different ways of promoting employees’ engagement and socialisation.

Moreover, my mentor also informed me that such events aimed at promoting diversity within the organisation. The company believed that it was a method of embracing and understanding the dynamic business environment.

From my internship experience, I realised that all organisations require constant exchange of information. I gained valuable experiences with regard to communication skills and teamwork in organisations. These were key factors in accomplishing any tasks.

The experience undoubtedly developed my communication skills. I would like to use my acquired communication skills in my next internship and future engagement with organisations.

Reference

Hydra Trading LLC. (n.d). Corporate Information. Web.

The article in question deals with the issues related to unpaid internship. Hananel (2013) notes that many companies abuse internship and get free labor rather than providing coaching to the interns. The article highlights flaws in the system of internship. The author also provides arguments of both sides.

The major issue related to the internship is whether companies should pay interns. Hananel (2013) notes that educators and interns claim that companies should pay minimum salaries, whereas companies are reluctant to pay interns who often fulfill unskilled tasks. The author also stresses that the result of the case with Fox is only the start and soon the issue will have to be solved at the national scale.

It is necessary to note that the present article is a valuable source as it provides insights into the problem which relates to two major aspects of the American society, i.e. education and employment. Hananel (2013) highlights internship as it is supposed to be and internship as it is in reality. Internship should be a beneficial practice for both the intern and the companies.

Fitzgerald and Jayachandran (2012) claim that interns benefit from internship as they gain the necessary experience and are able to understand what their responsibilities will be and the way the business works. Interns are also able to list the internship on resume, which can be helpful for looking for better jobs and higher salaries.

Noteworthy, companies also benefit as they can potentially hire a young and motivated employer who will be loyal and effective. However, Fitzgerald and Jayachandran (2012) also note that companies should be responsible and provide adequate coaching and give certain projects which can facilitate the interns’ learning.

However, major rules of internship are often abused as companies are struggling with economic issues. Even though companies can afford paying interns, companies are reluctant to do so. One of the major reasons for that is the present situation in the world.

Lots of companies are facing numerous financial constraints and they are trying to reduce their expenditures. Unpaid internships are a golden opportunity for many companies. Admittedly, this is unethical but it is a common practice.

It is necessary to add that the movement to diminish companies’ abuse has already started. Perlin (2013) notes that numerous organizations and groups have started campaigns to make the companies pay minimum salaries to interns. Admittedly, this is a fair practice as interns are often young people who need money. Interns may not be as experienced as other employees.

Interns require attention and companies’ employees have to provide certain coaching; this can be distracting for the fulltime employees. Nonetheless, interns still complete certain tasks which help employees. Thus, interns’ work should be paid.

In conclusion, it is possible to state that the article provides insights into the causes of the tension between companies and interns. It draws people’s attention to an important issue which can affect the US economy in the long run. Thus, companies are often reluctant to pay more to employees. Clearly, businesses tend to support unpaid internship as it means free labor force.

Nonetheless, the vast majority of interns need salaries and simply cannot afford unpaid internships. As a result, many talented young people do not have an opportunity to gain experience and show potential employees the knowledge and skills obtained at the university.

Reference List

Fitzgerald, B. A., & Jayachandran, P. (2012). Suggested guidelines and best practices for unpaid internship programs. CA Labor & Employment Bulletin, 372-377.

Hananel, S. (2013). Unpaid internships in jeopardy after court ruling. The Wall Street Journal. Web.

Perlin, R. (2013). Unpaid interns: Silent no more. The New York Times, p. BU7.

Executive Summary

The report presents the activities I accomplished at the Capital Investment Realty Group, located in Los Angeles, California. I was an intern in the department of finance and auditioning as an asset management analyst. The company falls within the property management industry. The Capital Investment Realty Group specializes in the sale and lease of a commercial and residential building. I was engaged in job-related roles such as preparation of presentations, supporting administrative tasks, researching market trends/competition/pricing, creation of relevant financial analysis reports, and supporting the underwriting/due diligence phases. The company should improve its financial reporting by incorporating different sustainability indicators.

Company Overview

History

Founded in 2013, the CIRG operates in the real estate sector and has focused on selling or leasing commercial and residential houses targeting the entertainment and sports sectors. The company is known for its high performance in the record-breaking leases and sales (CIRG, 2018). In the last three years, the company has expanded the service bracket to offer customized real estate products to global and local customers (CIRG, 2018). At present, the organization operates under the full-cycle service charter, which merges the client’s resources, roster, and an impeccable network. As a result, the company functions as a powerful brokerage firm with a diverse service charter.

Products and Services

The primary service charter for the company is categorized into a commercial for lease, a commercial for sale, residential for lease, and residential for sale. The services are further categorized into real estate brokerage, asset management, vocational rentals, commercial lending, and commercial brokerage (CIRG, 2018). The company also offers other specialized real estate services such as property searches, conducting due diligence, and paid consultation. CIRG credits itself for the ability to source real estate deals that are not easily accessible to the open market (CIRG, 2018).

Real Estate Asset Management Industry

CIRG operates in the dynamic, expansive, and multifaceted real estate management industry. Focused on the Los Angeles market in California, CIRG has become a primary player targeting the sports and entertainment celebrity market segment by offering this unique customized real estate services (CIRG, 2018). This industry is characterized by high competition, expansive customer needs, and unpredictable market swings. It is estimated to be worth more than $1 trillion in the US (CIRG, 2018). The real estate management industry is further segmented into brokerage, asset management, and planning/construction sectors. Fortunately, CIRG has expanded its operations to capture all the sectors and is currently among the market leaders in the Californian real estate management industry.

Competitors

The primary competitors of CIRG are AVR Realty, True Blue Realty Group, and Simone Company. AVR Realty is CIRG’s top competitor since it also concentrates on the celebrity market. The company has been in the Los Angeles real estate management market for more than a decade and offers purchase or lease financial services. In the last financial year, AVR Realty’s annual revenue surpassed CIRG by 10% (CIRG, 2018). The Simone Company is also a strong competitor due to its focus on the commercial rental and sale market. Moreover, the company has been in the market for more than 20 years and has an expansive market network (CIRG, 2018). Lastly, the True Blue Realty Group has expanded its operations beyond Los Angeles, thus has higher equity than CIRG. The company has also focused on the business support services sector by offering 100% financing option for buyers and renters of different real estate properties across the US (CIRG, 2018). Despite this competition, CIRG has managed to expand its operations through product diversification, competitive pricing, and a series of free after-sales services.

Asset Management Analyst Internship

My Position and Description of Duties

The internship period at CIRG lasted for two months. The eight weeks was adequate to understand and apply class knowledge into the labor market. Specifically, I was assigned to the finance and audit department as an asset management specialist. The typical duties associated with this position are;

1. Support the due diligence/underwriting phases of acquisition transactions.
2. Assist in creating and providing useful financial analysis to the Investment Team on a need basis.
3. Stay up to date with market trends, pricing, and the competition to keep the marketing team and other departments updated.
4. Prepare presentations and support with various administrative tasks as needed, such as the arrangement of files, research, clerical duties, and locating different documents.

The activities under the asset management analysis job description run concurrently in any typical workday. These roles were spread across the day and begun with preparation for the presentation and supporting administrative tasks. The activities ended with closing files for complete sales or lease agreements. The typical day during the internship started at 8.00 am and ended at 3.30 pm. However, when the workload was high or during special projects, the day would end at around 5.00 pm. The offices were closed on Sundays and during public holidays. The office hours for Saturdays are from 8.00 am to 2.00 pm.

Strategy Analysis

The asset management analyst job description is very complex and requires a deep understanding of financial analysis skills. For instance, in calculating the asset turnover, I had to apply different financial analysis tools such as ratio to effectively measure the organization’s utilization of the available resources to generate sales (Damodaran, 2016). Moreover, the job description required a skill set for financial evaluation aimed at maximizing the value of the property for every investment alternative. Due to the complexity in the real estate management capital market, as an asset management analyst, I had to establish ways of managing the potential financial risks, audit the risk proportions, and recommend less complex selling or leasing process. These valuable improvements were integrated into the tax and regal rules controlling the investment property market (Nobes, 2014). The hardest role in the asset management analyst job description is portfolio management since it combines asset allocation, research, revenue forecasting, and data analysis.

What Type of Work that I Do

My job description was an asset management specialist. This position involves several duties in a typical working day. I would report in the morning and help with clerical and administrative duties such as arranging and sorting files from the previous working day and in progress sales or lease documents. This was followed by preparation of the room for a brief meeting with the chief accountant and auditor, depending on the agenda of the say.

At around 9.00 am, I would move to my office cubicle to commerce research on the market trend, competition, and pricing for on progress files. The research activities were unique to each file and often required application of the principles of financial management framework knowledge acquired from the classroom. In the afternoon, I was engaged in supporting the due diligence or underwriting the phases of acquisition transactions. During this activity, I applied the financial and auditing tools I acquired during the last semester. For instance, I had to follow the basic financial analysis skills such as balanced book of accounts to ensure that the transaction phases are accurately recorded.

I spent most of the evenings assisting in creation and provision of useful financial analysis alongside the company’s asset management analysts. These reports were generated for closed sale or leasing deals. The process of preparing these reports required application of basic accounting principles such as accurate forecasting, ratio analysis, and inventory management. I had an opportunity to visit some of the properties under sales or lease process as part of the procedural auditor requirements. Most the visits were done on Wednesday in the afternoons or when the workload was low. These visits presented an opportunity for understanding how due diligence is carried out and relevant instruments to apply. For instance, during one of the visits, I was given an opportunity to gather the relevant knowledge with the guidance of one of the asset management analyst. The information gathering process requires application of organization and writing skills I acquired across the semester.

Something I Did There that I Learned from School

I excelled in performing due diligence in the rental and lease agreements by applying the limited liability exposure skills I learned from school. I was able to effectively gather the needed resources and apportion them strategically to create a smooth transition from on-progress to closed files. As a result of this previous knowledge, I was able to positively impact the portfolio value in the file I was given to create from a scratch with guidance from one of the asset management analysts for the company (Marshall, McManus, & Viele, 2016). Moreover, through application of financial analysis skills I learned in school, I was able to track the expenditures against turnover in a consistent and productive manner. I was armed with basic communication, writing, and organization skills, which came in handy in analyzing the negotiations, lease approvals, and risk mitigation to generate professional files. In addition, I applied forecasting skills I learned from school to contribute in report generation and auditing of different value assurance initiatives (Nobes, 2014). For instance, during one of the random audit visits to the properties in the market, I made substantial contribution in the due diligence execution by confirming the taxation and legal requirements for each type of agreement.

Methodology

The internship opportunity at CIRG was an eye opener in understanding the operational framework for financial analysis within the real estate management industry. Through a practical financial prudence approach, it was possible to study the current trends in pricing, competition, and customer demands while managing efficiency in resource allocation for optimal return (Kimmel, Weygandt, & Kieso, 2014). The financial analysis framework provided a practical approach to correlation of policy and ligation by applying different tools for effective operational model. For instance, the fusion of auditing and financial forecasting knowledge creates an ideal environment for holistic and proactive supervision of different efficiency matrices associated with asset management analysis (Bhattacharyya, 2017). As a result, I was able to apply school knowledge and previous experience as a financial controller and private equity analyst to effectively perform my duties within the asset management analyst job description.

Results

The internship experience was an opportunity for application of school knowledge in a practical work environment. Since I had past experience as a private equity analysis and financial controller in one of the local banks, the internship experience was not challenging. I only made minor adjustments by using the ratios and financial analysis tools that are applicable in the real estate asset management analysis. The work environment was very challenging since I dealt with very sensitive documents and files that required accuracy in financial reporting. Any mistake in the figures would translate into loss or even a legal suit against the company. Fortunately, the company has systems that automatically scan and correct any human error. The internship period was a learning experience about conducting due diligence, auditing a financial process, and reporting efficiency matrices for optimal use of resources against expected outcome. At present, I am well skilled in asset management analysis in addition to other past experiences as a private asset analyst and financial controller.

Conclusion

The report has highlighted my experiences an intern within the finance and auditing department of CIRG. The company is located in Los Angeles and operates in the real estate management industry. I was given an opportunity to conduct due diligence, research, trend analysis, and generate market reports. The internship experience positively impacted on my professional skills in financial analysis and has influenced the direction of my future career.

References

CIRG. (2018). About us. Web.

Damodaran, A. (2016). Damodaran on valuation: security analysis for investment and corporate finance (2nd ed.). New York, NY: John Wiley & Sons, Inc.

Bhattacharyya, A. (2017). Essentials of financial accounting. New Delhi, India: PHI Learning Private Limited.

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2014). Financial accounting: Tools for business decision making (6th ed.). New Jersey, NJ: John Wiley & Sons, Inc.

Marshall, D. H., McManus, W. W., & Viele, D. F. (2016). Loose leaf for accounting: What the numbers mean (11th ed.). New York, NY: McGraw-Hill/Irwin.

Nobes, C. (2014). Accounting: A very short introduction. Oxford, UK: Oxford University Press.

Based on my knowledge, experience and goals I have chosen three companies I would like to apply for the internship; they are Agthia group, Abu Dhabi Investment Authority, and Abu Dhabi Media.

Agthia Group

Agthia – a food and beverage company, located in Abu Dhabi.

The core mission of the company is to become the most appreciated food and beverage company in UAE. The mission is achieved through a constant provision of nutritious and responsibly produced food and beverage of the highest quality. The values stated are ensuring top quality of food and beverages, accessibility of products, close interaction with the community. Open mind of management and co-workers, as well as broad interaction with suppliers, is strongly encouraged as well as ambitiousness but not for the price of integrity.

The company was established in 2004.

The key people in leadership positions are: Eng Dhafer Ayed Al Ahbabi (Chairman of the Board); Rashed Hamad Al Dhaheri (Vice Chairman of the Board); Iqbal Hamzah (CEO); Fatih Yeldan (Acting Chief Financial Officer)

The company’s offices are located in the UAE, Egypt, Turkey. It employs about 2,200 people. The company has two businesses: Agri Buisiness and Consumer Buisiness.

There are three offices in UAE: Agthia Group PJSC. (Header Office), Agri Business Division (Grand Mills), Consumer Business Division (Al Ain Food & Beverages. PJSC). There is one office in Egypt and two offices in Turkey.

The competitors of the company are Amira Nature Foods, Emirates Foodstuff & Mineral Water Co, National Foods Products Co.

The recent news about the company state 19 percent increasing of company’s nine-month net profit (10/29/2015) and acquiring Al Bayan Water Company by Agthia Group (10/12/2015)

Agthia Group’s head office address:

Sky Tower, 17th Floor, Al Reem Island, P. O. Box 37725. Abu Dhabi, UAE.

I would like to do my internship in Agthia Investor Relations and Corporate Communication to push it forward to meet the company image and target. The internship in leading high profile company as Agthia will provide me with valuable knowledge and experience in dealing with trusted and reliable brands. As Agthia’s management states that they greet fresh and open-minded people (Agthia, 2014, para. 5), I am sure I will fit in.

Abu Dhabi Investment Authority

ADIA – Abu Dhabi Investment Authority.

The company, being one of the largest investment funds in the world, is investing funds, focusing on long-term value creation. The investment occurs on behalf of the Government of Abu Dhabi. ADIA manages a global investment portfolio dealing with multiple asset classes and sub-categories. The company invests in trusted partners, global financial markets and pays a lot of attention towards selecting highly qualified managers to deal with. Representatives of more than 60 nationalities work within ADIA, but the preference for training and employment is given to UAE Nationals (Abu Dhabi Investment Authority, n.d., para. 2).

AIDA was found in 1976 as an independent investment institution. Later several specific departments were created. They are Local & Arab Investments, Finance & Administration, Equities & Bonds, Real Estate, and Treasury.

The key people in leadership positions are H.H. Sheikh Khalifa bin Zayed Al Nahyan (Chairman), H.H. Sheikh Hamed bin Zayed Al Nahyan Managing Director

The ADIA Head Office is located in Abu Dhabi.

The competitors of the company are Kuwait Investment Authority, Aabar Investments, and the Saudi Industrial Development Fund (SIDF).

The recent events in the company are the appointment of Hisashi Kuroda as Head of Japan, Internal Equities Department (07/28/2015); and publishing ADIA’s Annual Review (06/02/2015).

The ADIA’s address is:

211 Corniche, PO Box 3600. Abu Dhabi, United Arab Emirates.

I would like to do my internship in Abu Dhabi Investment Authority because it is a big and constantly developing company, one of the world’s largest investment funds operating all over the world, winning its influence. It has started its spreading towards East and countries of the Pacific region, and I would like to gain an experience in the serious, successful company as well as apply and improve my Japanese language skills.

Abu Dhabi Media

ADM is a fast-growing multi-platform-based media, including entertainment facilities. It takes a significant place in the Middle East media space. The content that ADM spreads is of a unique and competing content of high entertainment and informative quality. ADM supports innovative approach in the sphere of media industry of the Middle East, particularly UAE. The major brands deal with publishing (Aletihad, The National), radio (Quran Kareem, Emarat FM), television (Al Emarat Channel, Abu Dhabi Channel), games, films, etc.

ADM was found in 2007, uniting 18 brands.

The key people in leadership positions are H.E Mohamed Ebraheem Mahmood Al Mahmood (Managing Director), H.E. Sheikh Fahim Sultan Khalid Al Qasimi. H.E. Noura Al Kaabi.

According to the official website the ADM, the employment policy is majorly directed towards hiring Emirati citizens and graduates. Its products are directed towards Arab speaking users. It also co-works with Universal Music Group, Sony Music Entertainment, National Geographic Society (Abu Dhabi Media, n.d., para. 2), etc.

The competitors of ADM are Dallah al Baraka Group, Al Jazeera, Arab Media Group

The recent news on the official website advertises Abu Dhabi International Book Fair (03/28/2012) and Abu Dhabi Music and Arts Festival (03/11/2012)

The Abu Dhabi Media address is:

P.O. Box 63, Abu Dhabi. United Arab Emirates.

I would like to do my internship in ADM because it is a growing company with vast opportunities. I can apply my professional knowledge directly in the sphere I have been studying and gain valuable experience with the help of my future colleagues.

Conclusion

All of the companies, mentioned above, are of great interest to me, as they could provide me with a valuable professional experience. I am sure that in the case of gaining the internship in any of these I will be capable of making my best contributions.

References

Abu Dhabi Investment Authority. (n.d.). People. Web.

Abu Dhabi Media. (n.d.). Partners. Web.

Agthia. (2014). About Agthia. Web.