Wk 9: See you next time, Bhutan!

It’s crunch time! I have only three weeks left in my internship here in Bhutan. I’m working non-stop to finish all my deliverables. I have three major deliverables (cost analysis for four benchmarked companies in different industries, standard cost of transportation of sand, and standard price for three natural resources products). I am 90% done with my cost analysis and about to start with creating my presentation material and report document. I met with my Director last week who, I am happy to say, liked the direction and content of my Rev1 output. This week, I plan to finish my two other deliverables. Yes, I am a bit worried about the time constraint that I have but I will not let this fact stress me. I will focus, will eat a lot (ha!), will listen to classical music (Beethoven's Symphony No. 7 in A major Op. 92 and Mozart's Sonata in D major for two pianos on repeat), and will keep on working.

I studied hundreds of companies in different countries to find the best peer set for the four Bhutan companies. My benchmarking activity is very challenging, exhausting, but definitely a value-adding endeavor for my skill-building. My internship has taught me that, in these uncertain economic times, many companies are indeed diversifying their businesses to lessen the risk of profit losses. I found a company that not only offers extraction and trade of timber but also sells audio and visual electronics system and products. Another one is an airline company which also operates a call center for other companies. It will be interesting to explore after my internship the financial considerations of, strategies in, and limits of diversification.

I will not get a full-time job offer at Druk Holdings & Investments (DHI) because I am here on a semi-volunteer and fellowship work only. But, I still want to leave a very good impression about the quality of education and training at the Ross School of Business. Few Bhutanese know that the University of Michigan is one of the best schools in the US. It is time to introduce our great school to them. Go Blue!

This is my last blog entry here. I hope all the stakeholders at DHI and its four companies would like my final project output. I had a great time exploring a different culture and seeing the amazing sights in Bhutan. I will definitely go back here. See you around University of Michigan this fall! J

Wk 7: Almost done

I have just started the second half of my internship. I am in the thick of my cost benchmarking activities. This second phase of my project is very difficult because most of the comparable peers of the Bhutan companies are unlisted and therefore, do not disclose annual reports. This makes my job difficult in getting enough and relevant data to compare the cost of local companies with that of international companies.

Oh, and guess what? I have two new project deliverables! The CEO of a company I am studying informed me a couple of days ago. I am happy to have had a long conversation with a CEO to discuss business. It was interesting to hear his thoughts on the local market, business constraints, and potential growth opportunities. I am excited to hear that my new cost project deliverable would greatly help improve their operations. I am going to a forest this Saturday to observe the operations of the Natural Resources Development Corporation. I have five more weeks to finish all my projects.

On another note, I have been wearing Michigan gear almost every day hoping to meet a fellow Wolverine here. But, so far I have no luck in finding one.

What I did encounter is this:

Bhutanese: Where are you studying?

Jofresh: At Michigan

Bhutanese: Oh, Michigan State

Jofresh: (gasp!) No! At University of Michigan

Bhutanese: Ah…

Hmm… the locals seem to know Michigan State more than U of M…

Last week, the other interns went to a city 8 hours away from Thimphu to see a festival. I did not join them because I had work. Nevertheless, I went on another trip to a nearby city to see a different festival. We went to the Haa district. Below are some pictures of the colorful festival.

Waiting for the event to start

Opening ceremonies

Traditional song and dance

Stalls

Delicious buckwheat momos (dumplings filled with vegetables and cheese)

Wk 5: Work + Fun at the Tiger's Nest

Wow, time really flies when you are having fun. I cannot believe that I am one-third done with my internship. I look forward to seeing my classmates again at school but I am also sad that my interesting, fun, and skill-building experience in Bhutan is almost over.

As always, I was busy with work these past two weeks. I continued my internal scan of the four Bhutan companies by studying cost trends, performing the tried and tested ratio analysis, and interviewing finance managers and CFOs. I am happy that the Bhutan companies have an open door policy. The top executives are all very accessible and helpful. They also do not sugarcoat financial results. It makes my job easier to know that I have the complete and accurate picture of their cost performance and activities.

Of course, I did not forget to have fun while working. An American lawyer, currently working at DHI, took me, my co-interns, and a visiting Berkeley MBA student, who did a project for DHI, to the most majestic place in Bhutan, the Tiger’s Nest. Taktsang Monastery, more popularly called the Tiger's Nest, is situated on a nearly vertical cliff at 3,000m altitude north of Paro in Bhutan. It is a prominent Himalayan Buddhist sacred site. Learn more about the Tiger’s Nest here.

I consider successfully hiking up to the Tiger’s Nest one of my best accomplishments to date. The climb up and down the steep mountain took four hours. It was raining that day so it was a very very slippery and difficult climb. I almost slipped a number of times and nearly fell face-down in the mud! Thankfully, I stuck my umbrella in the mud just in time to break my fall. Whew… The altitude also hampered my breathing and I was pitifully panting and taking deep breaths from my mouth. There were also numerous times when my legs refused to move another step but I stubbornly refused to give up. So, I pep-talked myself until my head convinced my legs to continue the hike. J I am happy that I persevered because I saw one of the most beautiful sights I have ever seen in my life. The Tiger’s Nest, perched on top of a mountain and partially covered by clouds, is breathtaking! I will definitely not forget this climbing experience.

This is the mountain we climbed. Do you see the white monastery near the top?

No?

Well, here is a closer look at our destination. It is partially covered by clouds (yes, so high up)!

Starting the hike

Slippery trail

View from the top

A mini waterfall and many prayer flags

Almost there…

Finally, the Tiger’s Nest!

Wk 3: Hiking around Bhutan

The past two weeks have been a blur. I interviewed CFOs, researched comparative data, summarized project findings, and created preliminary cost profiles. The government-owned for-profit companies are so interesting that I could not help but ask numerous questions about the organization and business drivers. My project deals with finding opportunities for cash savings. The saved capital will allow the companies to carry out more investments and business expansion. I am excited and humbled with the chance to contribute to Bhutan’s development. As you might know, Bhutan is one of the fastest growing economies in the world. I am still waiting for more internal and external data to complete my analysis. I have nine more weeks to recommend remarkable cost strategies to Druk Holdings & Investments (DHI).

I am extremely proud to represent the University of Michigan and the Stephen M. Ross School of Business in Bhutan. Many top universities also send interns here. There are two other interns at DHI, a Stanford Law student and a Columbia Masters in Sustainable Development student. The three of us are sharing the large and homey office attic. J Besides my co-DHI interns, there are two Harvard Public Policy students in another government agency, the Gross National Happiness Commission. Three Berkeley MBA students also did a class project for DHI a couple of months ago. Yale also regularly sends graduate students to undertake diverse projects for the government. I am happy that the William Davidson Institute (WDI) at U-M was able to arrange my internship here so Michigan is also represented. Go Blue!

The arrival of my co-DHI interns signaled the start of my exploration of Bhutan. Last week, I hiked around Thimphu for seven hours! We climbed a mountain to visit the Motithang Takin Preserve. Takin is a goat-antelope and is the national animal of Bhutan.

We also visited the Thimphu Dzong (The Trashichodzong), which is the seat of the government and the headquarters of the clergy in the capital city. Beside the Dzong is the King’s Royal Residence. Unfortunately, pictures are not allowed to be taken of the place. I shot this picture while walking down a mountain. The Dzong is on the left while the Royal Residence is on the middle-right, covered by trees.

We also went to the world’s tallest Buddha, standing tall at 169ft. The site is still under construction.

And, we saw an archery competition in Paro, another town. Yes, they need to wear ghos, traditional Bhutanese dresses, when competing.

This weekend, we are trekking to the Tiger’s Nest, Bhutan’s most spectacular sacred site, and going to Punakha, the old capital of Bhutan. I heard the climb up the Tiger’s Nest is rigorous. I hope my lethargic body can handle the exercise. J

Wk 1: Hello from the Land of the Thunder Dragon!

I arrived in Bhutan on May 28 without my luggage. Thanks to Singapore Airlines (not!), my luggage was left behind in Singapore. Regardless of this hassle, my excitement went through the roof as soon as I stepped off the Druk Air plane at Paro International Airport. The sight that greeted me was breathtaking! Bhutan’s international airport is situated beside majestic mountains. The scenery on the way from Paro to Thimphu, the capital and where I will be staying, was also remarkable. I saw monasteries, lakes, valleys, and numerous mountains covered with green foliage. I am very happy to see the last great Himalayan kingdom!

The people here are very friendly and helpful. An officemate helped in retrieving back my luggage while another showed me the local market and the best restaurants. Because of her, I was able to buy my elixir, Diet Coke (hahaha…). And, another peer volunteered to give me daily rides to and from work. I am thankful for my new friends.

My internship started on May 30. As I mentioned in my first blog post, I will be conducting a cost analysis project for Druk Holdings & Investments. My first week at work was very productive. I learned more about the four government-owned for-profit companies in my project portfolio. I am eager to gain knowledge on the costs involved in four new industries: natural resources, financial services, telecommunications, and airlines. This project will truly enhance my problem-solving capability and broaden my business knowledge.

This week, I read the Annual Reports for the past five years of the DHI’s companies. Next week, I plan to conduct interviews with DHI’s executives so I would grasp a better understanding of the companies’ cost drivers and problems. I have also been in contact with a Kresge librarian provided by the William Davidson Institute (WDI) for my fellowship project. The librarian will help me in researching competitive and comparative data for the four DHI-owned companies.

I will update you again next week. I am now off to play basketball with some Bhutanese friends. J

P.S. Oh, I saw the King! Fine… I only saw his car but he was inside it when the car passed me! LOL! J

Excited for summer!

Hello blog readers! I am Jofresh, a Filipina MBA student. Prior to attending business school, I worked in the finance department of Intel Corporation’s Philippines and Malaysia offices for almost six years. My concentration at Ross is still finance but I am also learning more about strategic consulting.

My first year at Ross has just ended. It has been an amazing year filled with meeting new friends, watching football games (Go Blue!), working on school projects, and (of course) recruiting. I am very excited for my summer internship. I am fortunate to have received a William Davidson Institute (WDI) Global Impact Internship/Fellowship. The WDI is a non-profit research and educational institute at the University of Michigan dedicated to understanding and promoting actionable business and public policies in emerging markets. I want to learn more about International Business and WDI gave me the opportunity to do just that.

I will be working this summer in BHUTAN! J

I will be working for Druk Holding & Investments (DHI), a government agency established through a Royal Charter issued by His Majesty the King of Bhutan. DHI holds and manages the commercial companies of the government, makes new investments, raises funds, and promotes private sector development in Bhutan. I will be analyzing and benchmarking costs then, ultimately, recommending cost strategies to the government-owned commercial companies.

I am very excited to see the beautiful country and learn more Bhutan’s culture. I heard from last year’s WDI fellow that people in Bhutan are very friendly and that the sights are amazing. I am also excited to work on a project that merges finance with consulting. I am thankful for the opportunity to enhance my skills. My internship starts on May 30. Wish me luck! If you have questions about Ross, just leave a comment and I would glad to help.