BSU&U 2021 Issue 1

Forword From dean In reviewing the worldwide disruptions caused by the COVID-19 pandemic, I am glad that the Business Students’ Union is showing an eagerness to learn from the challenges faced by different indus- tries and sectors in our society and also looking towards a brighter future. Our business education attaches significant importance not only to its contribution to the economy, but also to the needs of our society and environment. The pandemic-stricken world opens up a new avenue for our students to pursue a social mission seriously and rethink how you can support the business sector and the broader community. In this disruptive period, we see infected patients and battered busi- nesses that need help. Urgent issues like climate change and poverty need solutions sooner rather than later. In developing our next generation of business talent, we will continue our social impact training and activities in the curriculum, make sure you understand the importance of corporate responsibility and encourage you to respect sustainable development. This mindset and knowledge will support you as responsible professionals and leaders in future so you can make a real and meaningful impact. Your readiness to make the world a better place for all will be the key to our success. Let’s keep up the momentum and work closely with your peers to extend your care. Professor Tam Kar Yan 2

Words from Editor-in-ChiEf I am delighted to bring you the first issue of BSU&U of this year. First of all, I would like to thank you all for your support to our session of the Executive Committee of The Business Students’ Union. This year has been an age of darkness, filled with unex- pected and unfavourable incidents. Due to the pandemic, many of us are still having lessons in ZOOM University and many planned events will also have to change to the hybrid or online mode. It is a great challenge for us but we will strive our best to work our way through this bumpy start. To get started with our session, the theme of this issue is “ESPOIR”, meaning ‘hope’. Amidst the pandemic situation, there are still rays of hope, new trends that are rising which will be crucial for our career development. You may wonder how are industries changing under the pandemic situation, are they less or more affected by the pandemic? Read this issue where we are diving into the FMCG industry and you may gain some insights on the topic and may even consider changing your career path following up on these new trends to increase your own competitiveness! It has been a bumpy start and may be hard for everyone, be them stu- dents or the working class. Robert H.Schuller said “Let your hopes, not your hurts, shape your future. “, don’t let the past and the present constraint you, look into the future. Shape your future and embrace the future with positivity and we will soon get past the barriers and be wel- comed by life full of opportunities and vibrancy again. I hope you will enjoy reading this issue of BSU&U and wish you all a fruitful year ahead! 3



Words from ChairpErson Without any doubt, my greatest honor is to pres- ent this foreword in the first issue of the publication, BSU&U in 2021 as the Chairperson of The Business Students’ Union, HKUSTSU, Session 2020-2021. We are honored to serve as the 30th executive committee of the Business Stu- dents’ Union(BSU). This year is the 30th anniversary of BSU, which is the same as the school of business and management and the university of science and technology. Thirty years have passed by. After going through countless chal- lenges and instability, the foundation of our Union is still unshaken, still dedicated to serving our members. The name of our cabinet is “Saxum”, a Latin word mean- ing boulders, symbolizing our Union has been through 30 years which has accu- mulated the hard work done by numerous talents. We hope to inherit the efforts made by our predecessors and continue to weave the golden chronicle of BSU. We have experienced a tough year in 2020, the pandemic has altered our lives in every single inch. Last year, everything was changed online, such as lectures, exams, or even O-camp. Although we all acknowledge that it will not be an easy task for us to run the union under this situation, the 14 of us still choose to take up this challenge and refuse to surrender. We hope to strive for the best and organ- ize fruitful events for our members and other business students. During these 4 months serving as the executive committee of BSU, we have encountered a lot of difficulties. Again, because of the pandemic, we have to be more flexible and prepare more alternative plans. The 30th anniversary, which originally should be a ceremonious year of BSU, but now due to Covid-19 meas- ures and restrictions, we hope things could resume normal in the second half- year. We are here to express gratitude to all members and past executive committee members supporting us in the past few months. Every one of you is our moti- vation to keep us walking forward. An ancient Chinese saying goes that “Forge ahead despite wind and rain”. We hope we can bond together and get through this challenging time. 5

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Espoir THEME 9 Espoir - a french word meaning 'hope', a feeling of expectation and desire for a particular thing to happen. It is a feeling of trust that people embed upon themselves once they are in a desperate situation or when they really have high expectations for something. \" Hope lies in dreams, in imagination and in the courage of those who dare to make dreams into reality. \" - Jonas Salk. The pandemic has placed enormous pressure on the job markets. It might be gloomy for you, especially for year fours who had been interviewing for your graduation jobs, trying to live the dream that you spent majority of your life studying and working for. It might be gloomy for those looking for internships as well, or you might hold doubts now considering the pandemic situation ,whether the pandemic has changed the landscape of the industry you want to get into. We all are in this together and it is inevitable that we experience such hardships a couple times in your journey to strive for your dream. What we must do is to keep your faith and have hope towards the future. Not laying on your bed, hoping that the world will be a better place after a short while, but to find ways to improve yourself so that you will be adaptable to the changes and have faith in yourself. Never give up hope! Read the cover stories to learn about some industry leaders and advice from them. You may also have a grasp of how industries have changed and what you can do to improve yourself in the pandemic situation!

Cover Story Interview with Cindy Chan How did you enter the industry? Graduating with a bachelor’s degree in marketing from Chinese University of Hong Kong, I started my career with a trainee program from Unilever. My friend, who entered the program half year earlier than I did after her graduation, introduced it to me. The interview was not as competitive as those now - there were not that many processes and aptitude tests. Therefore, I ended up getting the job. The interview screening was not as mature as it is now, but they wanted to train fresh graduates to specialize in marketing and business development. I have got to admit I did not know much of what a FMCG is back then, I only knew the basics like they are selling hair products and chicken powder. Nevertheless, it was a pretty attractive program to me though I had offers in Big Four and banking. That is because I am reluctant towards rigid work, so I didn’t accept the offer in Big Four. Another reason is I found passion in cogitating business plans and pitching in a marketing course during my final year, I find them enjoyable in the course. As FMCG matches both my personality and strengths, I entered the FMCG industry. 10

How have your views on FMCG industry evolved after working in the industry for over ten years? Iaswaousladlevsiepwermsoyns.eAlfftaesr a piece of puzzle in the past as I regard myself five years in the trainee program, I treat every single trainee as an entrepreneur and a business owner, you have to consider how to make your product more competitive, to win over other competitors and treat it as your own business. The edge of being in a large firm is that there will be many functional experts in your team, you will have more allies and supporters compared to when you are working alone in start-ups or as an entrepreneur. Apart from your business sense, analytical skills and practices of following business insights, I would say that being able to collaborate with others and embrace teamwork will be quite crucial when working in FMCG industry. It is more than being a salesperson, you would have to understand the market and analyse whether your product suits the market demand. Quick dive into FMCG industry Fast moving consumer goods are an industry, there are a couple of global companies in diamond this industry like Unilever, P&G and some local companies like Lee Kum Kee and Amoy Food. Your products will be very fast-moving and dynamic. There is not much of a huge difference, except that in the FMCG industry, as the name goes, we need to be fast- moving, thus many of our products must be in the frontline to get in touch with our customers. In the past, it would be through convenience stores or supermarkets. Now with channel evolvement and the rise of e-commerce, there have been huge changes to channel strategies. There are two major factors that determine the success of a company in the FMCG industry. The first one is demand, including sales, marketing and strategic demand - we need to be far-sighted and observe consumer insight and category leadership. Second one is the enablers supporting the demand drivers, such as supply chain, commercial (setting deals), finance. There are also other functional departments, like P&O (People and Organization) which are basically human resources management observing structures. This is the overall structure of a firm in the FMCG industry. Another big difference would be in the scale of the operation, FMCG firms have been operating in a regional scale, we have local and global teams for many regional functions like legal, audit, corporate affairs etc. 11

Does FMCG have less impact in the pandemic situation? No, a lot of other firms in the FMCG industry have undergone a decrease in 70% or 60% of profits. Hong Kong is reliant on tourism, because there is a decrease in milk powder and medicine, the profit decreases as well. Why are so many shops shutting down in Sheung Shui? Is it because the locals do not shop from them? No ! A majority of their sales come from the Mainlanders. They are like firms which buy stocks from Hong Kong and bringing it to the Mainland. These businesses were put to a halt ever since the pandemic outbreak. There may also be other reasons, like China has been tightening their e-commerce restrictions. Under the pandemic situation, the transportation channels are also affected. The practice of giving gift has also faded out during Chinese New Year and Christmas. These industries in FMCG have been undergoing huge transformations. There are, undoubtedly, industries that are not affected that seriously, like ice cream and pet care. People start purchasing online because human and pets do not stop consuming food because of pandemic. Demand for some other products like 7-11 fish balls, sports venue, candies changed tremendously when convenience stores evolve to online shopping platforms. 12

What has the FMCG industry did to overcome these impacts? Changes in company structure are quite evident in recent years, in the past people did not believe that Hong Kong customers will shop online, there are convenience stores near our home, so we will not expect people to resort completely to shopping online. In order to survive, businesses must accelerate to transform, any companies who do not start transforming cannot sustain. Some conservative people might think that people will return to shopping in grocery stores like Vanguard in one-to-two-year time, but it is definitely not the case for the teenagers. It was not until HKTVMall really took a significant share of the market that they started to believe that it is a huge turning point to transform the entire industry. Perps of being in MARS MARS is a purpose-lead and principle-driven company, we embrace the five principles (efficiency, quality, responsibility, freedom, mutuality) in each country. These five principles are crucial to maintaining customer relationship among MARS associates and decision making. We also embrace differences in each place. It could guide our behaviour. MARS’ purpose is: “The world we want tomorrow starts with how we do business today” This is very inspiring and powerful, we dream of what is the world we create for tomorrow, belief and virtue of kindness, more than just a proper purpose. MARS has done a good job in giving values to its employees, because if your employees aren’t purpose-driven, when another company gives you a better job, a better name, better salary, then your employees will leave. This is also what kept me in MARS for 10 years, I have colleagues sharing similar vision and value. From my experience, you have to sync your career aspiration and personal aspiration together and follow your heart. But you have to determine what’s your edge as well. Undeniably, these will change when you grow older. You will pursue chances to go overseas, and you will have different priority to make use of the freedom you have when you are young, when you have nothing to lose. 13

15 Job placements in FMCG Job placements in FMCG firms are not Lots of my colleagues used to work in financial only for marketing or GBUS students, it roles in banks or Big four accounting firms, most might even be the exact opposite as many of them have CFA certification or are Chartered different types of talents are needed here. Accountants.The industry being dynamic is the Let’s talk about an experienced consultant reason they changed jobs. they will return to working in Boston Consulting Group, his FMCG as the CFO or financial manager of the expertise in market expansion strategies company or strategic revenue management or merger and acquisitions are in high (from pricing, portfolio-side look at whole demand for firms in FMCG since buying revenue creation model, long term strategies and selling are also quite common in this in pricing, costing and promotion frequency) industry. Proctor and Gamble just sold their because their basic knowledge comes from notorious brand – Tempo. finance. They want to use functional skills and Tips for students in the pandemic situation My tips to teenagers are that changes in consumer behaviour are not restricted to Hong Kong. If you are able to grasp this opportunity, take a look from the Asia or world’s perspective that others don’t seem to observe. We also allocate a lot of resources to online platforms as we focus on quick commerce. There will be rapid changes. Do not treat yourself as the affected group, you have to identify what values you have, it is in your white space, your flexibility. You should always go extra miles to contemplate where the opportunities lie in under the situation that resources are limited. The environment has become better for teenagers’ growth, as mentioned there has been a lot of transformation in the age. Under this transformation, there are new industries that we are not familiar with. Teenagers have the mindset and the logic needed better than the experienced ones. The attitude is the most important, you need to have a curious attitude to look at your edge to help your business to achieve success. We also need to have a sense of danger, I think the majority of HK students lack this sense of danger. When you are young, it will be your classmates competing in your GPA. Now it’s a regional thing, competing with different talents all over the world. However, if we look on the bright side, there will be more job opportunities, thus our mindset will be to train all the basic knowledge, including language, hard knowledge, exposure, internship, exchange, networking. Take an example on LinkedIn, there are many events, you don’t need to understand everything in those events, but it is a good reflection and study process, keep your curiosity, because this is your edge. 14

Women in Leadership I would say that in Asia, we have this common stereotype that men must be the breadwinners. You would face huge social pressure if you chose to be a house husband; whereas for women there is not such forces against you. International companies require your occupational mobility. As a leadership role, you also need to be mobile, proving you are a person who can embrace diversity. Four years before, my higherups wanted me to go the United Kingdom because the hub is in United States, back then I just gave birth to my lovely twins, they were one year old when I must make this decision. I could choose to ask my husband to take care of them and follow me to United States as well. It is feasible but I will also question why I have to sacrifice my family for my career? I questioned my high-up, “Most of your customers are also from Asia, why can’t I be in Asia?” I would say MARS is quite flexible, they provide you with good package when you relocate, not the difference in living standards, but how you balance your career and your family. I would say companies have to reconsider these social norms now, especially with technology advancements, you can reach Chicago, India, China, Hong Kong through Zoom and Teams, is it really necessary to have your employees move to Singapore, sitting there and make a call? Companies should reflect on their agility and policies. A lot of women will also transform themselves to meet the social norms, don’t forget your family because of your work. 15

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CBA COLUMN Thriving indusTry under Pandemic SportS GamblinG The worldwide plague has wiped out many businesses and opportunities. While unemploy- ment rate rises steadily and people can only sit at home, entertainment suddenly becomes more important than ever. In this issue of BSU&U with the theme “Espoir”, we are going to look into a thriving industry in the US against the withering economy, which takes advantage of surging demand of entertainment. 28

Gambling is such a lucrative event that casino companies are scratching their heads every day to provide something for people to bet on. Sports is always one of the best choices, while the reason that sports gambling has never been popular in America is strict opposition from the government. The pandemic, however, painted the figures red on the government financial budgets, forcing states like New York to open the door to highly profit-making businesses which can pay taxes the government desires. There is no such profitable and convenient method other than legal- izing sports gambling to save state governments, a few straws away from collapsing. Nearly $400 million revenue is generated in the past 12 months from sports gambling to New Jersey, the first state to allow sports gambling and currently the third larg- est regulated online gambling markets in the world, only behind the UK and Italy. With total bets of $7.8 billion in only the first two months of 2021 and a dozen successful cases, it is now or never for legislators to change their mind and bow to the huge capital flows. 29

Operators are ecstatic to enter the allur- ing US market and get a foothold right af- ter the states loosening the laws. Online gambling companies outside US are seek- ing opportunities to merge and invest but they can also anticipate that, back- lashes will come after a vigorous market expansion. By observing countries such as the UK where both government and gambling industries are matured, we can foresee that tighter regulations will be imposed, like banning betting with credit cards and proposing moratoria on TV advertising. When the entrance fee is not only high but increasing, there will only be a few survivors in a battle of capital. Another stakeholder who will clap their hands for the legalizing bill is broadcasting media. Before, they must try hard to endorse the matches to attract limited viewership. Whereas now people are will- ing to watch a crappy game actively, as long as they bet on it. Gradually, media companies are looking to promote in-game wagers, which of course appeal the gamblers but shift the focus of the competition to betting items instead of the skills of players or the results of the game. 30

It is seemingly a win-win situation for everyone – except the gamblers whose money are getting squeezed, indulged happi- ly. Lawmakers encouraging gambling industry will create a huge negative social impact, leading to problem gamblers arising quickly. Researches in the UK showed the concerns about in- creasing addiction and reports of betting companies exploiting vulnerable individuals, with an estimated number of 1.4 million of addicted gamblers. Although experts caution that the numbers are difficult to calculate, the staggering figure still demonstrated scars to the society left by profit-driven gambling firms. Is tightening regulations on the industry a one-size-fit-all solution to the addiction problem? In fact, not at all. If casino companies are given too few incentives to operate and keep customers using their platforms, gamblers will shift to betting in the black market and offshore sites, which are far more troublesome than regulating the companies. Given that around $1.5 billion was bet on illegal platforms, state governments have to deliberately allow casino companies to obtain their benefits while taking care of addicted gamblers. The world is watching American states opening the floodgate of legalized sports gambling. Once al- lowed, state governments are almost instantly recovered from impecunious financial situ- ations, but they have to bear the risks of dealing long lasting damages to the soci- ety. The dice is on their hands. 31

HOW TO INCREASE YOUR COMPETITIVENESS WITHOUT WORK EXPERIENCE Get yourself a LinkedIn account if you Take some online certification courses. There are many certifications available on don’t have one. LinkedIn is one important the market for different fields. Common tool for career development, below are some features of LinkedIn that can help. First, one’s ones are Coursera, LinkedIn. You can also look for LinkedIn profile is literally the resume of his/hers. certifications specifically for your field. If you are You can take a look at how people of your age into financial modeling, maybe you can consider group walk their career path. Take a peek at their Wall Street Prep and Corporate Finance Institute. internships or licenses. You can also look at your However, bear in mind to check the courses seniors’ LinkedIn and see what types of jobs out before paying. Some of the courses which are more common for year one or two, next year are not popular enough won’t be recognized. maybe you can apply for the same jobs. Second, start connecting people from various fields. LinkedIn is a powerful tool to connect different people. In fact, you can aim for the management Join virtual experiences. There are websites that or human resource team of the companies you provide different types of virtual experiences are interested in. In some occasions, they will for students. For instance, Forage has a have internship openings through LinkedIn. comprehensive list of free virtual work experience programs. It may be out of league for you at first, but at least you have a grasp of the industry and have something to write in your resume. Besides, large corporations often have some virtual experience programs themselves. Try to join those as well, as they might choose you over other candidates as you really had a taste of how their culture is. 32



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