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FROM Kellogg MBA Blog: Apple, surprises and the value of accounting

First-year student Rohan Rajiv is blogging once a week about important lessons he is learning at Kellogg. Read more of his posts here.

If you’ve been following tech news, you’ve probably heard of the recent bankruptcy of Apple’s Sapphire glass partner – GT Advanced. This was the quote from Apple following the announcement:

“We are focused on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps.”

The quotes in news headlines the following morning used words like “unexpected,” “surprised,” etc. But if you look at the SEC filing of the company at the end of June, like we did in our accounting class, you will see this news should not have been “surprising.”

The cash flow statement shows that GT lost $165 million over the quarter and had only $330 million left. Now, this can’t be looked at in isolation of course. If they were due a massive repayment by a customer, then we would have to reconsider our conclusions. However, they only had $14 million of accounts receivable due. They were just stuck in a very expensive business without the necessary scale.

Given the rapid rate at which they were losing money, one could predict they wouldn’t last longer than two quarters. And, they didn’t. You could also argue that they could have raised a large amount of money via external financing. But, as you might imagine, the list of financiers who would like to get in at this stage was likely going to be very small.

Hence, it is actually very surprising that Apple and the media were “surprised” at the bankruptcy.

My learning was that a working knowledge of accounting goes a long way. Irrespective of whether or not you foresee yourself in a role that involves finance, the ability to read financial statements can help a lot. For example, most large corporations provide stock and stock options to employees. How many of these employees actually read their own company’s financial statements?

Perhaps reading financial statements of organizations whose fate influences us (e.g. a key customer or supplier or a target employer) may help prevent a bad surprise or two. That could end up saving us a lot of mental and financial pain.

Rohan Rajiv is a first-year student in Kellogg’s Full-Time Two-Year Program. Prior to Kellogg he worked at a-connect serving clients on consulting projects across 14 countries in Europe, Asia, Australia and South America. He blogs a learning every day, including his MBA Learnings series, on www.ALearningaDay.com.

Filed under: Academics, Business Insight, Student Life Tagged: Accounting, Apple, MBA Learnings
This Blog post was imported into the forum automatically. We hope you found it helpful. Please use the Kudos button if you did, or please PM/DM me if you found it disruptive and I will take care of it. -BB
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mshrek
Any information on MMM applicants ?

I am MMM applicant from India and my Skype interview took place around 16th Oct by admission officer.
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FROM Kellogg MBA Blog: Apple, surprises and the value of accounting

First-year student Rohan Rajiv is blogging once a week about important lessons he is learning at Kellogg. Read more of his posts here.

If you’ve been following tech news, you’ve probably heard of the recent bankruptcy of Apple’s Sapphire glass partner – GT Advanced. This was the quote from Apple following the announcement:

“We are focused on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps.”

The quotes in news headlines the following morning used words like “unexpected,” “surprised,” etc. But if you look at the SEC filing of the company at the end of June, like we did in our accounting class, you will see this news should not have been “surprising.”

The cash flow statement shows that GT lost $165 million over the quarter and had only $330 million left. Now, this can’t be looked at in isolation of course. If they were due a massive repayment by a customer, then we would have to reconsider our conclusions. However, they only had $14 million of accounts receivable due. They were just stuck in a very expensive business without the necessary scale.

Given the rapid rate at which they were losing money, one could predict they wouldn’t last longer than two quarters. And, they didn’t. You could also argue that they could have raised a large amount of money via external financing. But, as you might imagine, the list of financiers who would like to get in at this stage was likely going to be very small.

Hence, it is actually very surprising that Apple and the media were “surprised” at the bankruptcy.

My learning was that a working knowledge of accounting goes a long way. Irrespective of whether or not you foresee yourself in a role that involves finance, the ability to read financial statements can help a lot. For example, most large corporations provide stock and stock options to employees. How many of these employees actually read their own company’s financial statements?

Perhaps reading financial statements of organizations whose fate influences us (e.g. a key customer or supplier or a target employer) may help prevent a bad surprise or two. That could end up saving us a lot of mental and financial pain.

Rohan Rajiv is a first-year student in Kellogg’s Full-Time Two-Year Program. Prior to Kellogg he worked at a-connect serving clients on consulting projects across 14 countries in Europe, Asia, Australia and South America. He blogs a learning every day, including his MBA Learnings series, on www.ALearningaDay.com.

Filed under: Academics, Business Insight, Student Life Tagged: Accounting, Apple, MBA Learnings
This Blog post was imported into the forum automatically. We hope you found it helpful. Please use the Kudos button if you did, or please PM/DM me if you found it disruptive and I will take care of it. -BB
[/quote]


Very interesting point made here :o
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mshrek
Any information on MMM applicants ?

I am MMM applicant from India and my Skype interview took place around 16th Oct by admission officer.

Hi KushVishal,

First of all congrats for the invite. I am a R2 applicant. I Have been following this program for long, but I didn't feel my app to be strong enough by R1 deadline. So how was your experience . Could you please elaborate your experience for future MMM applicants ? Thanks ! :)
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mshrek
KushVishal
mshrek
Any information on MMM applicants ?

I am MMM applicant from India and my Skype interview took place around 16th Oct by admission officer.

Hi KushVishal,

First of all congrats for the invite. I am a R2 applicant. I Have been following this program for long, but I didn't feel my app to be strong enough by R1 deadline. So how was your experience . Could you please elaborate your experience for future MMM applicants ? Thanks ! :)

I believe this program is for people who have been in product design, development , R&D, Product management and looking for enhancing their
management knowledge base. I have had product development and Product management experience and I tried to pitch that I want to make
carrier in these two fields, I believe it might have resonated with the purpose of MMM, but I also believe that getting into MMM is quite tough,
including me, as there are people with high potentials who have also applied.....so lets see............... :roll: :roll:
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KushVishal
mshrek
KushVishal


I am MMM applicant from India and my Skype interview took place around 16th Oct by admission officer.

Hi KushVishal,

First of all congrats for the invite. I am a R2 applicant. I Have been following this program for long, but I didn't feel my app to be strong enough by R1 deadline. So how was your experience . Could you please elaborate your experience for future MMM applicants ? Thanks ! :)

I believe this program is for people who have been in product design, development , R&D, Product management and looking for enhancing their
management knowledge base. I have had product development and Product management experience and I tried to pitch that I want to make
carrier in these two fields, I believe it might have resonated with the purpose of MMM, but I also believe that getting into MMM is quite tough,
including me, as there are people with high potentials who have also applied.....so lets see............... :roll: :roll:

Hello !
Thanks for the quick update. However, I would like to know few more things from you : how did the interview start;what were the questions asked to you;how long did the interview last; how were the vibes post interview, did they match upto your expectations and research. I can pm you ,if you wish to answer personally. Thanks !
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Hi KushVishal,

First of all congrats for the invite. I am a R2 applicant. I Have been following this program for long, but I didn't feel my app to be strong enough by R1 deadline. So how was your experience . Could you please elaborate your experience for future MMM applicants ? Thanks ! :)[/quote][/quote]


Interview questions were typical as with 2Y year MBA interview. You can take reference of "mbathisyear" who has posted questions on this page. Only one-two questions were on why MMM program in particular. I believe the interview went well but then these interviews are so typical that most of the people generally
have good experience after interview. I have 50-50 feeling so neither yes nor no.....only result will tell what happens next........
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So, I just had my Kellogg interview in local starbucks.. Here is how it went-

It wasn't a question-answer type at all, we had a long chat where she just kept pointing what she wanted to know more about.. All common questions covered from why mba, why now (special stress), why consulting after that, how kellogg will help you (personal/professional), how you will contribute, why second masters degree (applicable in my case), how will my experience help in my short- term goal, some work-ex related questions, leadership experience, initiative experience, a sutuation where I struggled, and many more.. It lasted an hour I also asked her about her present start-up and all. It thought it went well until I realized I left the coffee mug on table and forgot to clean up after me :/

Posted from my mobile device
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What do people think about Kellogg for a career in product management but not doing the MMM program?
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Pottsmi1
What do people think about Kellogg for a career in product management but not doing the MMM program?
I wouldn't think much on it if I were the adcom, because MMM is a specific course - a double degree. It's quite unique and has it's own appeal. A regular FT MBA aspirant might like to spend more time on the management aspect and spread it out in 2 years span whereas a MMM student might go for a ramp up in acquiring engineering skills and management skills. It's the personal preference and the alignment of your futures goals post mba that , I think, matters more here.
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For those who have completed interviews.. Does it reflect on your online application status?
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For those who have completed interviews.. Does it reflect on your online application status?

No it doesn't. However my video essay date changed to the 30th October - Guess they have started reviewing my application.
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Date: November 10, 2014. Thursday

Admissionado Consulting

Event: Webinar - A Tale of Three Applicants by Jon Frank (Admissionado Founder and HBS Alumnus)

In this webinar, jointly organized by Admissionado and GMATClub, Admissionado Founder Jon Frank (HBS) is gonna show you how a banker, an Indian IT guy, and a chicken farmer managed to get into a top Business School. Find out how to play up your strengths, neutralize your weaknesses, and defeat the admissions dragon – whether your profile is totally typical or out-of-the-blue. To ensure the best possible event, space is limited to 100 participants, so sign up now! These seats are going to go quickly!

Registration: https://attendee.gotowebinar.com/regist ... KG6Zqk-PLu

Timing of the Session: 8.00 AM Pacific Time on 10th November 2014.
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just interviewed - on campus with an adcom. Nothing out of the ordinary, tons of small talk and not really a long list of questions. She laid out all of the topics she wanted to cover and we did so through conversation rather than her asking pointed questions down a list. She was a pro and made it comfortable, didn't give much away on how it went but i didn't have major errors.
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This query if for kellogg MMM program. What is the deadline for R2 ?? I didn't find any useful info related to this except that R1 deadline was october 16
https://kelloggmbastudents.wordpress.co ... m-program/ . Please help ! :shock:
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mshrek
This query if for kellogg MMM program. What is the deadline for R2 ?? I didn't find any useful info related to this except that R1 deadline was october 16
https://kelloggmbastudents.wordpress.co ... m-program/ . Please help ! :shock:

Just to be clear the R1 deadline for MMM was September 24 and similar to the 2Y program's deadline; I am pretty sure this is the case with the R2 deadline as well. What you are looking at is a post from 2013.
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amba2013
For those who have completed interviews.. Does it reflect on your online application status?

No it doesn't. However my video essay date changed to the 30th October - Guess they have started reviewing my application.

Mine changed to October 31st! The first time it has changed since I submitted. Dun Dun Dunnnnnnn
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