7 - 2019 - Asia School of Business

ASB students have many choices when it comes to how we spend the summer between our first and second years. Our Summer Associate Program is a lot like a regular MBA internship, but also includes an Action Learning project component and can take place anywhere in the world. And for those who don’t want to go the traditional route, ASB offers an “unconventional” option in the form of the summer Entrepreneurship Track.

This Track, designed for students interested in starting companies, gives us the freedom to explore and develop our own business concepts. Equipped with a research grant and assigned experienced entrepreneurs as our project advisors, we have the freedom to fully devote ourselves to a potential business without the inherent risks of actually starting a company.

As a part of this Entrepreneurship Track, I am completing an ASB-sponsored research project on the coliving industry in the United States and Southeast Asia. But what is coliving? If I asked ten different people this question, I would probably receive ten different answers. At its core, coliving isn’t a new idea. It describes a living concept that is specifically designed to increase human connection and create a sense of community.

Often, coliving units reduce the size of individual living spaces such as bedrooms and increase that of communal living areas such as living rooms and shared patios. This arrangement facilitates more face-to-face interactions between residents. Imagine that, instead of living in a large apartment building and not even knowing your neighbors, you lived in a building designed to create a close-knit community amongst all of its residents.

In the past six weeks, I have visited coliving locations in New York City, Los Angeles, San Diego, and San Francisco, and will be flying to Indonesia later this month to explore coliving companies in Bali. On June 7, I had the opportunity to attend Common’s Coliving Capital Markets Summit in New York City. The Summit was a fantastic way to begin my primary market research on the US coliving industry.

Here are a few of my main takeaways from the conference, as well as other lessons learned from my Entrepreneurship Track experience.

The Opportunity

The opportunity for coliving in the United States arose due to the interplay of several major trends that you have already heard about: urbanization, rising student loan debt, valuing experiences over things, and rent spikes in major US housing markets such as New York City, San Francisco, and Los Angeles. Common’s Coliving Capital Markets Summit told a story of why these trends are now coming together in the perfect storm of a housing affordability crisis.

It also showed why all arrows are pointing toward coliving as the best solution. One of the panelists at the Summit, Susan Tjarksen from Cushman & Wakefield, recently published an extensive research report that sheds more light on the situation. Let’s take a look at some of the staggering numbers found in the report:

Source: Cushman & Wakefield’s Survey of the Coliving Landscape, May 2019

Individually, each of these statistics is not troubling. Taken together, they paint a scary picture. More people are living in cities and they’re living there for longer. Rents are rising, wages aren’t keeping pace, and student loan debt has financially burdened many potential homeowners. Due to this financial instability, millennials are not buying homes at the same rate as their parents and they seem fine with it. Most would rather go on an annual trip to Europe than own a bunch of furniture in a nice suburban home.

As seen in 2008, when the housing market stumbles, it doesn’t typically bode well for the American economy. Given this, what can we do to solve the housing affordability problem? How can we house more people in cities, at lower price points, and provide them with the experiences they’re looking for? The answer is coliving.

The Solution

Coliving can provide urban populations with an affordable place to live AND the community lifestyle they are searching for. Coliving locations typically trade bedroom square footage for more shared living space, which allows them to house more residents than a typical apartment building of the same size.

Are residents willing to make this trade-off? During the conference, I learned that Common received over 20,000 applications last month to fill the roughly 1,000 rooms they currently have on the market. Residents are certainly willing to make the trade-off and it appears the supply of coliving units is nowhere close to keeping up with demand.

Example of a 4 Bedroom Common Coliving unit

When compared to traditional urban apartments, coliving stacks up favorably. Considering coliving’s slightly higher development and building costs, higher operating expenses (weekly events, fully furnished rooms), and additional gross revenue from rent (more beds, higher occupancy rates), Common estimates that coliving drives a 10%-30% increase in net operating income.

This increase in net operating income creates a favorable investment for lenders as well as a stronger value proposition for real estate developers. The coliving operator will benefit from the extra revenue generated and the tenants will pay a lower rent price and benefit from the community lifestyle. So who wins in coliving? Well, everybody involved.

The Future

Due to this “win-for-all” approach, many of the nearly 300 people at Common’s Summit are bullish on coliving and expect an explosion in the number of coliving developments in upcoming years. In fact, Cushman & Wakefield’s survey reports that global investments in coliving have skyrocketed from around $0.2 Billion in 2017 to $2.2 Billion in 2018.

For the remaining two months of the Summer Associate Program, I plan to visit many more coliving spaces in the US and Southeast Asia to understand industry best practices and outline the different coliving practices across the globe.

Without the Entrepreneurship Track opportunity at ASB, I would not have had the chance to attend the Summit or network with some of the biggest names in the industry. More MBA programs should develop similar summer tracks to give their students a risk-free way to explore business ideas and encourage more graduates to become entrepreneurs.

KUALA LUMPUR: Asia School of Business (ASB) and UNHCR, the UN Refugee Agency, held the 2nd annual research workshop on refugee studies and forced migration in Southeast Asia, with a specific focus on Malaysia. The Workshop highlights the importance of producing high-quality research to support policy-making and the creation of impactful community interventions in this country and the region.

“The vast majority of academic work on refugee studies has been Euro-centric and has focused on the movements of refugees from the Middle East into Europe,” said Melati Nungsari, Assistant Professor of Economics at ASB, who is also the organiser of the event. “The documentation of socio-economic conditions, challenges faced, and proposed solutions for refugee problems in the Southeast Asian region has not been tackled to the same extent.

In Malaysia alone, we have more than 175,000 refugees and asylum-seekers. It is extremely important that we understand this population by conducting rigorous and ethical research in order to ensure policy-making or advocacy work done is relevant.” The main goal of the workshop, held for one and a half days on 23 and 24 July 2019, is to serve as a platform to connect local academics in hopes of expanding the body of ethical, well-informed, and evidence-based academic literature surrounding refugee studies and migration in Southeast Asia.

The research workshop was attended by some 75 participants from12 countries including Malaysian and international academics involved in research related to forced displacement in Malaysia and the region, civil society members working with refugee communities, as well as members of the refugee community themselves. “UNHCR is encouraged by the interest for more research work in the area of refugee protection in Malaysia,” said Thomas Albrecht, UNHCR Representative.

“The changing political landscape in Malaysia now presents unique opportunities to look at innovative new approaches to address both the legitimate interests of Malaysians and the protection needs of refugees, in ways that are mutually reinforcing. Working more closely in partnership with academics towards solid, evidence-based advocacy is critical in strengthening the foundations for policy change.”

The workshop covered academic poster presentations and relevant issues such as translating research into advocacy, as well as research on the impact of legal work for refugees, and issues around healthcare and livelihoods. 13 organisations run by or for the benefit of refugees also showcased their products to the public and the participants at a social enterprise marketplace that was held in conjunction with the workshop.

“We hope this annual Workshop becomes a space for networking and cross-fertilisation of ideas, and for strengthening of the collective knowledge base on refugee issues in the country, and where research gaps lie,” said Albrecht. “Beyond that, we hope this will be the start of a community of researchers and academics working to strengthen the work of civil society, humanitarian and development agencies, refugee communities, and the Government in Malaysia, through evidence-based refugee advocacy.”

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For more information, please contact:

Pek Ee Siew
Director, Marketing
Asia School of Business
E: eesiew.pek@asb.edu.my
M: +6012-4353095

For UNHCR:
Yante Ismail
UNHCR Associate External Relations Officer
E: ismaily@unhcr.org
M: +6013 352 6286

About Asia School of Business
Asia School of Business (ASB) was established in 2015 by Bank Negara Malaysia in collaboration with MIT Sloan Management to be a premier global business school, a knowledge and learning hub infused with regional expertise, insights and perspectives of Asia and the emerging economies. ASB is committed to develop transformative and principled leaders who will contribute towards advancing the emerging world.

About UNHCR
UNHCR, the UN Refugee Agency is mandated to safeguard the rights and well-being of refugees and asylum-seekers worldwide. It strives to ensure that everyone can exercise the right to seek asylum in another country and rebuild their lives in safety and dignity.

UNHCR seeks long term solutions for refugees including finding them new homes in third countries or helping them return home voluntarily when it is safe to do so. While they are seeking temporary protection in Malaysia, UNHCR strives to create a safe and secure environment for them where their basic needs are met. UNHCR cooperates with its Government and civil society partners in humanitarian support for refugees including in education, healthcare and community support.

To find out more, please visit www.unhcr.org.my.

“I try not to think about [how many hours I spent preparing] because the answer is a bit scary,” Katherine, a Class of 2018 MBA graduate and consultant, says. After a moment of reflection, she adds, “I probably spent 40 to 50 hours over the course of a few months preparing for the interviews.”

In the ASB Podcast with Sarah-Ann Yong (on Spotify and Apple Podcasts), Katherine explains how she prepared for her interviews at McKinsey, a prestigious global consulting firm. She now works for the firm in supply chain and service operations, completing projects that take her all over the United States. She gave the following recommendations for each step in the job search process, which helped ensure her success.

Step 1: Determine the fit.

The consulting interview process is not for the faint of heart. It can be arduous, full of late-night phone interviews and long bouts of waiting. This is why Katherine’s first piece of advice is to decide whether or not consulting is the right fit for you. The job application process is only a preview for the work itself, which can be overwhelming and exhausting, with long hours and constant travel.

To determine whether she would be cut out for the work, Katherine talked to multiple employees of McKinsey and other consulting firms before she started her application. As in many business schools, the process started in the Career Development Office (CDO) at ASB. The CDO connected her with employees at McKinsey, and she also attended Kuala Lumpur-based events for McKinsey, Bain, BCG, and other firms to get a sense of the culture and what types of employees succeeded at each firm.

And although most consulting firms have a straightforward application process, the name of the game is still networking. Katherine considers this the toughest part of the process. “The key is following up and finding the people you connect with the best,” she notes. “Not only are they the ones who might help you find a job, but it’s also an indication that you might be a good person to work there and have a good experience despite the crazy hours and long travel weeks.”

Step 2: Perfect the application.

Like most companies, consulting firms have standard online applications that all applicants must complete. The submission includes a resume and cover letter, which Katherine notes are important to customize for each firm. “The cover letter should explain why you’re interested in a particular company and what qualities you have that make you the best candidate,” she explains. Those who receive a response from the firm are asked to take an aptitude test, which assesses math and language skills, before beginning the interview process.

Step 3: Nail the case interview.

Those who are invited to interview should be prepared for multiple rounds of interviews. For example, Katherine completed six case interviews before receiving an offer, as well as preliminary interviews. “You spend 20 minutes doing a behavioral interview where you’re asked about a situation when you encountered a challenge, had a difficult teammate, or made an impact,” she explains.

“Then they ask 40 minutes of case questions where you dissect a business problem, try to come up with different solutions and analyze data.” Preparing for case interviews was a lengthy process for Katherine, with practice interviews with the CDO taking place every week for the duration of the summer in addition to peer interviews. In addition, she used Vocaprep, an online tool that teaches consulting frameworks and mental math and offers practice case scenarios.

It may sound like a lot of work, especially for business school students unsure about consulting, but Katherine notes that case interview preparation can also be useful when applying in multiple industries. “Get started early with Vocaprep and practice interviews,” she says. “Even if you decide halfway through that you don’t want to do consulting or you find something else you’re excited about, the way you think because of the consulting framework is invaluable in any interview process.”

She also recommends working with peers to prepare for the interviews. Students shouldn’t view the process as a competition for a limited number of jobs, but rather a collaboration, so as many people as possible can get into the best firms. “At the end of the day, you’re going to be on a team,” she notes. “With that mindset, doing practice interviews with my peers kept things going well for me.”

Finally, she argues that having flexibility is key when scheduling interviews. Because she applied to positions in the United States, she often interviewed around 10 PM Kuala Lumpur time, or in the morning for her recruiters. Though these interviews were exhausting, the recruiters appreciated her flexibility.

Step 4: Be patient.

The full interview process for a company like McKinsey will take place over several months, which can leave students mired in anxiety and self-doubt. Katherine’s preparation and networking began over the summer. Though she filled out her application in September, she didn’t interview until the end of the fall semester or receive her offer until she was close to graduation.

Because of this, she recommends balancing job search activities between consulting and other fields, continuously networking and applying to other positions while waiting to hear back from consulting interviews. This allows students to consider other options early on in case offers from consulting companies don’t arrive.

Bonus Tip: Stand out from the crowd.

Because there are many business school students from similar backgrounds applying to consulting companies, it is important to figure out how to stand out from the crowd. Katherine believes that part of the reason she received an offer from McKinsey was her unique experience at ASB. “I had done these Action Learning projects and I had lived in Southeast Asia, which isn’t the typical profile for an MBA candidate applying to McKinsey,” she says.

“This kept them interested in my profile.” She also advises maintaining a unique personality even while completing case interviews. Despite the temptation to give a perfectly prepared answer to each question, she warns against being “too robotic.” Instead, students should think of the interview as a conversation, paying attention to the flow and rapport with the interviewer.

Bonus Tip: Use Action Learning projects to prepare.

For Katherine, the Action Learning projects at ASB were the perfect preparation for consulting. For example, during her MBA, she worked with a multinational pharmaceutical company to improve its supply chain. Looking back, she felt that the skills she developed on this and her other projects were helpful preparation for similar consulting engagements.

Further, the breadth of projects she worked on at ASB gave her the ability to learn and shift gears quickly, preparing her for the constant changes in projects, teams, industries, and functions she experiences at McKinsey. Because she had completed similar projects in a short time frame, she was able to “ramp up” more quickly.

“You get put into a new situation and have a short amount of time to define the problem, develop a game plan to solve it, build trust with your host company counterparts, and implement the solution,” she says. “Each situation is ambiguous and it is easy to lose sight of the objectives if you aren’t careful.”

On the job

Katherine believes the most rewarding aspect of consulting is the people. Over just a few months, she has seen her clients develop into better leaders, accomplish their goals, and transform their organizations. She feels energized seeing her clients’ excitement over the progress they are making. She also appreciates the teams she works with.

“McKinsey is filled with incredibly intelligent, driven, creative people who are dedicated to doing right by their clients,” she says. “I enjoy solving problems with my co-workers, cracking jokes in the team room, going out to dinner, and doing ridiculous team bonding activities.” So for Katherine, despite all of the work and waiting, the consulting interview process has paid off in a big way.

Month: July 2019