what is finance? related issues
Content
FINANCE Introduction
This guide is intended to introduce MBA candidates at MSU to an overview of finance careers, specific resources for finance job-seekers, and helpful advice to getting into various finance careers. It is not a comprehensive guide, you can download those from www.vault.com and www.wetfeet.com (see our website at www.mba.msu.edu/careers/students/services.cfm). Moreover, you will work closely with the finance career coach in the MBA Career Services Center on tailoring your unique experiences and desires into an action plan for your specific career goals. We several up front cautions, however. First, if you intend to have a career in finance, you should endeavor to do your internship in finance. Students who choose finance and supply chain as a dual major are at a disadvantage to those who choose finance and corporate accounting as their concentrations. Further, while your background before the MBA program does not necessarily niche you into any certain area, doing an internship in supply chain will likely niche you into supply chain in the eyes of corporate recruiters. Additionally, many roles in finance seem quite glamorous. Investment banking, mergers and acquisitions, and other fields are all highly sought after. We find that frequently candidates changing career do not fully understand what these roles are and the commitment (and excessive hours) they require. Similarly, these positions may not be the road to wealth that many people expect. Make sure you go in with your eyes open to the reality of the positions for which you apply. Finally, while we encourage you to reach for the stars, make sure to keep your feet grounded as to what to realistically expect given your prior experience level in accounting and finance. You may be required to ³pay your dues´ or start at the bottom and work your way up.
Overview of Industries
Corporations Corporate Finance
The primary recruiting base for MBAs from Michigan State University is corporations looking for finance staff. A significant number of these employers recruit MBAs into rotational programs aimed at giving the new hire experience in several areas of finance, familiarity with the multiple businesses of the company, and exposure to the executives across the company. Positions: Financial Analyst, Finance Development (Rotational) Programs Getting In: Expect technical finance questions and case questions. Full-time recruiting typically is during fall semester. Intern recruiting begins in fall and continues through early spring.
Corporate Treasury
Another common role in corporation is Treasury. This is the staff that manages the corporation¶s investments into stocks, bonds, real estate, and other assets. Positions: Treasury Analyst, Treasury Development/Rotational Program
Getting In: Expect technical finance and case questions. You might also be asked to give a stock pick. Full-time recruiting typically is during fall semester. Intern recruiting begins in fall and continues through early spring.
Map of Corporate Finance Positions
The table below presents the various career opportunities in finance within a firm. Every company groups positions into departments differently, and even assigns tasks differently to individual positions. Some roles may even be outsourced. You will see a lot of variance from company to company. However, in general, these are the finance roles taken on within a corporation. As for the interactions between these roles, many finance organizations operate like a matrix organization. y Functional finance departments (IT, Marketing, Supply Chain) work with Product or Business Unit finance staff. y Overlaying all of this are the corporate-level functions (Controller¶s Office, Accounting/Auditing, Treasury, and Strategic Planning & Budgeting). y Plant finance staff (Plant Controller, Plant Operations) may work with both functional and product/business unit staff and corporate functions.
Controller's office Corporate Controller - Responsible for overall cost management of the company, including capital expenditures Financial Analyst - responsible for analysis of corporate expenditures and monitors corporate budget and whether or not groups and functions are adhering to corporate expectations and guidelines for expenditures Accounting/Finance Analyst Responsible for internal auditing of the company's books and other matters
Audit/ Accounting
Chief Accounting Officer -Responsible for the appropriate ledger and journals for the company and a variety of public reports that must be filed with the SEC Credit Manager/Analyst - Responsible for customer or supplier accounts in respective payables outfit Treasurer - Responsible for cash management within the company and also reports to external stakeholders on funding and borrowing matters
Financial Services (AP/AR)
AP / AR Analyst - Responsible for analysis of Days Sales/Payables Outstanding Treasury analyst - responsible for analysis of funding sources (Bank debt, Bonds, etc.) as well as internal analysis of cash/asset items. Also responsible for foreign exchange analysis and other valuations that might be necessary Financial Analyst - responsible for acquiring data for the strategic plan and budget and evaluating information for accuracy
Treasury Strategic Planning/ Budget
Plant Product Functional Operations Groups Areas
Strategic Planning Analyst/Manager Responsible for consolidating and reporting to internal stakeholders the metrics of the company (sales, net income, etc.), usually over a 3-7 year basis. IT Financial Analyst/Manager - Analysis that focuses on financial decisions for software, IT infrastructure & IT Budgetary Matters
Marketing Financial Analyst/Manager - Analysis that focuses on sales revenue and budgetary matters
Price/Cost Analyst - Analyze the pricing of our products, cost/benefit of plant locations Controller - responsible for local control of expenditures as well as forecasts for corporate peers and the local ledger/journal entries necessary for accounting
Financial Planning Manager - Manage the product group strategic plan & Budget Financial Analyst/Assistant Controller - Assist controller in preparation of plant budget and forecasts
Supply Chain Financial Analyst/Manager - Analysis of the global spend of the company, payment terms, valuation of long term contracts, and budgetary matters Operations Controller responsible for all plants within the product group and their costs
A good map of these positions is also on-line at http://www.dow.com/careers/what/oth_fin.htm.
Mergers and Acquisitions / Venture Groups
Some corporations that grow through acquisitions have a group dedicated to that function. These positions are few and require significant experience in finance. Positions: M&A Analyst, Corporate Venture Analyst Getting In: Solid prior finance experience. Recruiting typically happens at various times throughout the year. Except for the largest firms, most hire when they have a need.
This guide is intended to introduce MBA candidates at MSU to an overview of finance careers, specific resources for finance job-seekers, and helpful advice to getting into various finance careers. It is not a comprehensive guide, you can download those from www.vault.com and www.wetfeet.com (see our website at www.mba.msu.edu/careers/students/services.cfm). Moreover, you will work closely with the finance career coach in the MBA Career Services Center on tailoring your unique experiences and desires into an action plan for your specific career goals. We several up front cautions, however. First, if you intend to have a career in finance, you should endeavor to do your internship in finance. Students who choose finance and supply chain as a dual major are at a disadvantage to those who choose finance and corporate accounting as their concentrations. Further, while your background before the MBA program does not necessarily niche you into any certain area, doing an internship in supply chain will likely niche you into supply chain in the eyes of corporate recruiters. Additionally, many roles in finance seem quite glamorous. Investment banking, mergers and acquisitions, and other fields are all highly sought after. We find that frequently candidates changing career do not fully understand what these roles are and the commitment (and excessive hours) they require. Similarly, these positions may not be the road to wealth that many people expect. Make sure you go in with your eyes open to the reality of the positions for which you apply. Finally, while we encourage you to reach for the stars, make sure to keep your feet grounded as to what to realistically expect given your prior experience level in accounting and finance. You may be required to ³pay your dues´ or start at the bottom and work your way up.
Overview of Industries
Corporations Corporate Finance
The primary recruiting base for MBAs from Michigan State University is corporations looking for finance staff. A significant number of these employers recruit MBAs into rotational programs aimed at giving the new hire experience in several areas of finance, familiarity with the multiple businesses of the company, and exposure to the executives across the company. Positions: Financial Analyst, Finance Development (Rotational) Programs Getting In: Expect technical finance questions and case questions. Full-time recruiting typically is during fall semester. Intern recruiting begins in fall and continues through early spring.
Corporate Treasury
Another common role in corporation is Treasury. This is the staff that manages the corporation¶s investments into stocks, bonds, real estate, and other assets. Positions: Treasury Analyst, Treasury Development/Rotational Program
Getting In: Expect technical finance and case questions. You might also be asked to give a stock pick. Full-time recruiting typically is during fall semester. Intern recruiting begins in fall and continues through early spring.
Map of Corporate Finance Positions
The table below presents the various career opportunities in finance within a firm. Every company groups positions into departments differently, and even assigns tasks differently to individual positions. Some roles may even be outsourced. You will see a lot of variance from company to company. However, in general, these are the finance roles taken on within a corporation. As for the interactions between these roles, many finance organizations operate like a matrix organization. y Functional finance departments (IT, Marketing, Supply Chain) work with Product or Business Unit finance staff. y Overlaying all of this are the corporate-level functions (Controller¶s Office, Accounting/Auditing, Treasury, and Strategic Planning & Budgeting). y Plant finance staff (Plant Controller, Plant Operations) may work with both functional and product/business unit staff and corporate functions.
Controller's office Corporate Controller - Responsible for overall cost management of the company, including capital expenditures Financial Analyst - responsible for analysis of corporate expenditures and monitors corporate budget and whether or not groups and functions are adhering to corporate expectations and guidelines for expenditures Accounting/Finance Analyst Responsible for internal auditing of the company's books and other matters
Audit/ Accounting
Chief Accounting Officer -Responsible for the appropriate ledger and journals for the company and a variety of public reports that must be filed with the SEC Credit Manager/Analyst - Responsible for customer or supplier accounts in respective payables outfit Treasurer - Responsible for cash management within the company and also reports to external stakeholders on funding and borrowing matters
Financial Services (AP/AR)
AP / AR Analyst - Responsible for analysis of Days Sales/Payables Outstanding Treasury analyst - responsible for analysis of funding sources (Bank debt, Bonds, etc.) as well as internal analysis of cash/asset items. Also responsible for foreign exchange analysis and other valuations that might be necessary Financial Analyst - responsible for acquiring data for the strategic plan and budget and evaluating information for accuracy
Treasury Strategic Planning/ Budget
Plant Product Functional Operations Groups Areas
Strategic Planning Analyst/Manager Responsible for consolidating and reporting to internal stakeholders the metrics of the company (sales, net income, etc.), usually over a 3-7 year basis. IT Financial Analyst/Manager - Analysis that focuses on financial decisions for software, IT infrastructure & IT Budgetary Matters
Marketing Financial Analyst/Manager - Analysis that focuses on sales revenue and budgetary matters
Price/Cost Analyst - Analyze the pricing of our products, cost/benefit of plant locations Controller - responsible for local control of expenditures as well as forecasts for corporate peers and the local ledger/journal entries necessary for accounting
Financial Planning Manager - Manage the product group strategic plan & Budget Financial Analyst/Assistant Controller - Assist controller in preparation of plant budget and forecasts
Supply Chain Financial Analyst/Manager - Analysis of the global spend of the company, payment terms, valuation of long term contracts, and budgetary matters Operations Controller responsible for all plants within the product group and their costs
A good map of these positions is also on-line at http://www.dow.com/careers/what/oth_fin.htm.
Mergers and Acquisitions / Venture Groups
Some corporations that grow through acquisitions have a group dedicated to that function. These positions are few and require significant experience in finance. Positions: M&A Analyst, Corporate Venture Analyst Getting In: Solid prior finance experience. Recruiting typically happens at various times throughout the year. Except for the largest firms, most hire when they have a need.
