Mercer Limited is authorised and regulated by the Financial Services AuthorityRegistered in England No. 984275 Registered Office: 1 Tower Place West, Tower Place, London

EC3R 5BU

Commercial awareness

12 October 2009

Peter Goode

2Mercer

IntroductionSchedule

Mercer– Who are we?

Commercial awareness– What is it?– Why do we need it?– How do you demonstrate it?– How do you improve it?– How is it tested?

Summary

3Mercer

Mercer – who are we?

Mercer is a leading global provider of consulting, outsourcing and investment services, with more than 25,000 clients worldwide.

Founded in 1937 as employee benefits department of MMC, headquarters in New York, wholly owned by MMC

Globally:– Annual revenues over $3 billion– 18,000+ employees– Locations in 40+ countries

UK:– 19% of global revenues– 3,000+ employees– 17 locations

4Mercer

Mercer – who are we? MMC Structure

World's leading risk and

reinsurance specialist

Guy Carpenter

& Co.Marsh

World's leading risk

and insurance services firm

Kroll

World's leading risk consulting company

Oliver Wyman Group

Specialised management

consulting businesses

Major global provider of consulting,

outsourcing and investment

services

Mercer

5Mercer

Business Areas

Retirement, risk & financial consulting

Investment consulting

Outsourcing

Human capital

Health & benefits

Communication

Investment management

Mergers & acquisitions

Work alone or in combination to offer services to our clients

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Who are our clients?

Representative clients

7Mercer

Our UK Offices

Offices in Blue are the offices we recruit grads and interns into

Croydon

EdinburghBelfast

Liverpool

ManchesterBirmingham

Chichester Leatherhead

Brentwood

London

Leeds

Solihull

Bristol

Glasgow

Windsor

Aberdeen

Southampton

8Mercer

Where are we around the world?

Argentina Denmark Japan South Korea

Australia Finland Malaysia Spain

Austria France Mexico Sweden

Belgium Germany Netherlands Switzerland

Brazil Hong Kong New Zealand Taiwan

Canada Hungary Norway Thailand

Chile India Philippines Turkey

China Indonesia Poland UAE

Colombia Ireland Portugal USA

Czech Republic Italy Singapore Venezuela

Mercer Limited is authorised and regulated by the Financial Services AuthorityRegistered in England No. 984275 Registered Office: 1 Tower Place West, Tower Place, London

EC3R 5BU

Commercial awareness

10Mercer

Commercial awarenessWhat is it?

"At heart, commercial awareness is about being able to talk to clients, finding out what they want, why they want it, what they will do with it and what they are prepared to pay, and then delivering it in the way they want.

To do that you need to understand how organisations work, the issues they face and the role of people within them.“

Christopher Stoakes

'All You Need to Know About Commercial Awareness'

11Mercer

Commercial awarenessWhat is it?

General business awareness

Organisation/sector specific knowledge

12Mercer

Test your knowledge General business awareness

In groups discuss the answer to these questions

1) Do you know where the phrase "the bottom line" comes from and what it means?

2) What is the role of the International Monetary Fund? 3) Why is Corporate Social Responsibility important to organisations? 4) What is the name of the UK's Chancellor of the Exchequer? 5) What does private equity mean?

13Mercer

Test your knowledge Answers

1) The term ‘bottom line’ comes from the fact it is found at the bottom of the balance sheet and refers to a companies net income

2) The International Monetary Fund (IMF) is an organization of 186 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. (http://www.imf.org/external/index.htm)

3) Many reasons here are a few: Brand differentiation Risk management Public relations Recruitment and retention

4) Alastair Darling

5) Shares in unquoted companies. Usually high risk, high return in nature.

14Mercer

Commercial awareness – organisation/sector specific knowledge

How does the business attract and keep customers?

How has the business responded to globalisation?

How can good relationships be maintained with customers, employees and suppliers?

What impact is the state of the economy likely to have on business decisions?

What impact might the political environment have on a business?

15Mercer

Commercial awarenessWhy is it important

Commercially aware individuals…

…appreciate the processes, relationships, risks and costs involved in commercial transactions and are able to assess whether value for money has been achieved.

…work towards the company’s objectives and strategy.

…are aware of all the company’s stakeholders.

You don’t have to be applying for a career in commerce to need commercial awareness skills.

16Mercer

Commercial awarenessHow do you improve it?

Keep up to date with current business issues– Newspapers, magazines, internet and television (e.g. Financial

times, BBC’s working lunch)

Professional bodies/associations websites generally provide information on industry trends, recent research and a range of related information. (e.g. www.actuaries.org.uk/)

Company/organisation websites provide more specific information about the organisation and its products/services. (e.g. www.mercer.com)

17Mercer

Commercial awarenessHow do you improve it?

• When thinking about a specific organisation the SWOT analysis technique is useful.

• This a technique used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business.

Other useful techniques

• PESTLE

• Porters 5 forces

18Mercer

Commercial awarenessHow does Mercer test it?

Online application

Telephone interview questions

Assessment centre interview questions

Group case study

Written case study

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Commercial awarenessSummary

Graduates who are commercially aware are highly prized

You may well already possess commercial awareness skills and these can be developed further.

Do your research!

Mercer Limited is authorised and regulated by the Financial Services AuthorityRegistered in England No. 984275 Registered Office: 1 Tower Place West, Tower Place, London

EC3R 5BU