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Why is it important? Who wants commercial awareness? Questions you may be asked to demonstrate it Motivation-based interviews Further information

Employers keep asking about commercial awareness: what dothey mean and how can I show them that I have it?

Commercial awareness could be summed up as aninterest in business and an understanding of thewider environment in which an organisationoperates: its customers, competitors and suppliers.

It might also encompass understanding of the economicsof the business and understanding the businessbenefits and commercial realities from both the

organisation's and the customer's perspectives. Generally it includes awareness of the need forefficiency, cost-effectiveness, customer care and aknowledge of the market place in which thecompany operates (current economic climate andmajor competitors, for example)

Why is it important?

It is a major criteria for selecting candidates (see thetable below). A survey by the CBI and UUK in 2009 foundthat 35% of employers were dissatisfied with thebusiness and customer awareness of graduates.One major consultancy felt that a detailedunderstanding of the company, the issues facingthe industry in which they operate, professionalqualifications offered and job roles within thecompany was even more important at interview thananswers to competency-based questions

It shows your commitment to the job you are applyingfor.

It gives you more to discuss in an interview It improves your knowledge of a particular industry or

company and may allow you to spot career opportunitiesyou hadn't previously considered.

Who wants commercial awareness?

Financial employers banks, accountancy firms. La

wfirms.

The Top Ten Skills

shortages amonggraduates

% ofemployerssurveyed

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Consultancies.

Em

ployersrecruitingforsales,marketing and customer service positions

Almostany

graduaterecruiter!

Questions about your work experience

Whatskills didyoudevelopfromyour

workexperience? Anytransferableskills?

Whatwouldyou dodifferently if youworkedthereagain?

What was your experience of working in a team? What is the management structure of the company? How

effective is this structure? Can you describe any good leadership skills you

witnessed? What is their recruitment and retention like? What would you do differently if you were in charge? Have there been recent changes in the industry the

company operates in? What market share does the company they have?

1 Commercial Awareness 67%

2 Communication Skills 64%

3 Leadership 33%

4 Ability to work in a team 33%

5 Problem solving 32%

6 Conceptual ability 21%

7Subject Knowledge &

competence19%

8 Foreign languages 19%

9 Numeracy 19%

10 Good general education 15%

Source:Association ofGraduate RecruitersSkills for Graduates in the 21st Century

HOW IT WORKS IN PRACTICE

A few years ago the NHS interviewedin the Careers Service for their

management scheme.

Eight candidates were interviewed butonly one of these was put forward to

the final round.

The candidate put forward had anaverage academic record and although

pleasant, didn't seem to have any

skills or attributes that a number ofthe other candidates didn't also

possess.

I asked the interviewer why thisindividual had been selected. She said

it was quite simple. He had spent aday at a hospital shadowing a seniormanager and his knowledge of theNHS, how it works and the skills

required was far better than any of theother candidates she had seen.

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Is it a Global Industry? If yes, what are the implications? Have they been in the press? What is the company's unique selling point?

For help answering these see our Answers to 150 common interview questions

Motivation-based interviewsSome organisations such as the Financial Services Authority (FSA) have changed their wholeselection process to focus on motivation. The FSA reviewed their graduate selection process asapplications had increased 300% due to the recession, costing more staff time and money.

Analysing candidate performance revealed that competency-based questions were no longer areliable indicator of a candidates ability. Assessors were also surprised by the number ofcandidates who were unable to say

why they had applied to the organisation what the organisation did what appealed to them about the job how they

couldcontribute.

Many candidates had failed to research theorganisation sufficiently, only looking at the companywebsite and making no attempt to talk to currentemployees and alumni at the organisation or tounderstand the core values and culture.

As motivation and business acumen were the root cause of these issues, they looked atmethods to test this at earlier stages in selection.

The following changes were introduced:

Introduction of an online financial analysis test to assessapplicants' ability to understand and interpret financiallyrelated information (business acumen)

Removal of competency based questions from theapplication form and replacement with motivation andbusiness acumen questions:

an employer or who did not have the capability to be successful.

"The public sector is increasinglyrequired to meet targets andtherefore values commercialawareness in addition to acommitment to public services"

Vitae

Never say, I want to be in

publishing because I love books.

Of course that is important butyou need to make it very clearthat you understand publishing isa profit-orientated business likeany other

.... Being clued up on the issues

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Making the form harder also meant that candidates making lotsof ill-considered applications (the scattergun approach) did noteven complete the form: they had over six thousand unsubmittedapplications.

This also resulted in:

25% moreapplications rejectedat application andonline test stagesaving 30K in telephone interview costs alone

70% of those reaching final stage assessments receivedan offer, resulting in happier assessors and candidates.

Some other companies have reviewed their recruitment methods to take this into account. In thesecompanies interviewers drill down to the core motivations of the candidate, leading to a higherpercentage of offers of employment being accepted rather than applicants waiting for a better offer

Companies want to see that the applicant has gone the extra mile of meeting people oncampus and has made a well informed decision on the companies they will apply to.

How to get commercial awareness: It may seem

obvious butread theemployer'sbrochure andcheck theirweb site forbackground

information -don't just lookat the "careers"section but alsoat the sectionsfor clients,potential clientsand staff.Review theirannual report

Find out whotheorganisation'scompetitors are: you may well be asked this and which

ones you have applied to! Also try to find out the size ofthe workforce, the turnover and profits of the company,its share price and key activities which interest you.

facing the industryfrom thechanging role of the author todigital rights and intellectual

propertyis impressive to anemployer and work experience isoften the best way to develop

this commercial awareness".

The Bookseller

HOW IT WORKS IN PRACTICE

A Kent graduate applied for an internalaudit position with an accountancyfirm. We advised her to do in-depth

research on what internal auditinvolved using Google.

At interview candidates were asked toexplain what they knew about internalaudit and she managed to speak fornearly five minutes about this. Latershe was told that none of the other

candidates knew enough aboutinternal audit to talk for more than a

few seconds, and they had beengreatly impressed that she had found

out so much.

She was offered the job.

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Employers may look for evidence ofCA in your answers togeneral questions:

Tell me about your vacation job last summer. Tell me about a time when you worked in a team to solve

a problem What is your greatest achievement? Which living person do you most admire?

Or you may be asked more specific questions to demonstrateyour commercial awareness:

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What do you know about our organisation?

Why do you wish to enter the .... industry? What are our main products/services? What are the problems facing our industry at this time? What changes have there been in our industry recently? Who are our competitors? What are the differences

between them and us? Who are our clients? What do you think the job you would be doing entails? Where do you see yourself in 5 years time? What salary do you expect? How do you keep up to date with what is going on in

business? What story in the business press has interested you most

recently? What is the current Bank ofEngland base rate? How many euros would you get today in exchange for

10? What is the FTSE 100? Did the FTSE go up or down

yesterday? What was our share price this morning?

What skills did you develop from your work experience? Any transferable skills? What would you do differently if you worked there again? What was your experience of working in a team? What is the management structure of the company? How effective is this structure? Can you describe any good leadership skills you witnessed? What is their recruitment and retention like? What would you do differently if you were in charge? Have there been recent changes in the industry the company operates in? What market share does the company they have? Is it a Global Industry? If yes, what are the implications? Have they been in the press? What is the company's unique selling point?

Why are you applying for this position

Canola Re-financing Scheme ZTBL model village establishment

Financing package for Karachi

Crop Insurance Scheme

Crop Maximization Project- II green Revolution Scheme

One Window Operations/ Zarkhaiz Scheme

White Revolution Scheme- ZTBL & PDDC

White Revolution Scheme- ZTBL & Nestl Sada Bahar Scheme (SBS)

Awami Zarai Scheme- AZS (Farm Credit)

Awami Zarai Scheme- AZS (Non-Farm Credit)

Rural Development Scheme

Red Meat financing package for sheep/ goat rearers

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Corporate Vision kss kisan support services Nov,10 2005

Brief on ZTBL

Corporate Objectives

Transformation ofZTBL to R.F.I of the country and

road to excellence.

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Corporate Vision

Dedicated to serve the needs of the farming community, by delivering financial products and technical

services on a competitive and sustainable basis, in a convenient , efficient and professional manner,

leading to success of the Bank and the farmers.

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Corporate Mission

To play effective role in the promotion of economic growth, by enhancing the availability of credit to the

agriculture sector, through reliable access to sustainable financing, special lending programs, technical

assistance, and other products & services, and to promote career development opportunities for

increasing professionalism and technical proficiencies of employees.

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Brief on ZTBL

Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank

of Pakistan (ADBP) is the premier financial institution geared towards the

development of agriculture sector through provision of financial services and

technical know how. The restructuring of former ADBP is being carried out

with the aim to uplift the agriculture and rural sector by raising farmproductivity, streamlining the institutional credit and increasing income

generating capacity of the farming community. ZTBL was incorporated as a

Public Limited Company on 14th December, 2002 through repeal of ADBOrdinance of 1961.

The new corporate structure redefines the bank's status as a public limitedcompany registered under companies Ordinance'1984 with an independentBoard of Directors which aims at ensuring good governance, autonomy,delivering high quality

ZTBL is a key R.F.I of Pakistan providing affordable, rural and agriculture

financial/non-financial services to the rural Pakistan , comprising 68 % of thetotal population. The Bank through a country-wide network of 341 branches

is serving around half a million clients annually and over one million

accumulated account holders with the average loan size of around Rs.89,000

serving 65%, 31% & 4 % of subsistence, economic and large growersrespectively.

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The total assets of the Bank stand at Rs.84 billion with authorized capital of

Rs.25 billion as of 31.12.2005, with a nation-wide working strengthcomprises 5500 employees. The share ofZTBL in total national institutional

agricultural credit remains around 35%.

ZTBL was incorporated as a Public Limited Company on 14th December,2002 through repeal of formal Agricultural Development Bank of PakistanOrdinance of 1961. Thereby transforming the bank as a corporate entity to

serve as a R. F.I

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Corporate Objectives

Develop and operate as a financially and operationally sustainable R.F.I of

the country.

Assist rural community, particularly the small farmers, in raising theirproductivity and income levels through timely delivery of credit, advisory

and ancillary services.

Build ZTBL's image as a proactive, client friendly, financially & operationallysustainable with indigenous product deployment.

Establish and provide backward and forward linkages to strengthen agri.

value added commodity chains.

Engage in public - private and wholesale - retail partnership to deepenoutreach and reduce operating cost.To function as a rural commercial bank to mobilize rural capital formation

and to commercialize the agri. sector by delivering the true value of credit to

the client. Provide a wide range of risk insurance products to its clients.

Open up it venues of operation to Domestic &International Banking Industry

to avail comparative advantages.

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Transformation of ZTBL to R.F.I of the country and road to excellence.

Healthy and well-functioning rural finance markets are directly related toachieving the two key national policy objectives of accelerating

rural/agriculture growth and reducing poverty.

The realization of these objectives depends on the simultaneity of

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developments in rural finance and non-financial markets to foster the

creation of diverse sources of rural finance to build sustainable financial

institutions, and stimulate products and capital flows in the rural sector. Forthis, rural finance must be seen as an integral part of equitable development

within a framework of macro economic stability. The ongoing corporatize

restructuring lays the basis for fundamental reforms for rural finance marketdevelopment.

The recurring financial drain, pursuing the old rural finance paradigm andthe narrowing fiscal space have also promoted a shift in Government

strategy that now seeks viable intermediaries for enhancing outreach.

For the majority, access to affordable rural finance services is also important

to enable them to compete in the post-World Trade Organization scenario.

Inability to compete because of high financial costs could reduce income of

the majority of farmers and rural clients, particularly the small andsubsistence clients. Lack of access to affordable rural finance services will

also prevent the clients from switching to non-farm activities.

The ZTBL restructuring plan covering the following; (i) governance: establish

an environment that facilitates good governance and accountability; (ii)

systems: modernize operations through use of technology, networking, and

communication tools; (iii) business processes: streamline products anddelivery systems so as to reduce transaction costs, simplify operations, and

increase outreach; (iv) products and services: introduce products and

services that are financially economically viable; (v) human resource

development: improve standards and skills of management and staff andstrengthen training capacity; and (vi) IT: establish new hardware and

software platform to support MIS, accounting system including forensic

accounting, and risk management functions.

The reforms shall establish ZTBL as a key R.F.I of the country, aiming to

outreach annual rural clientele to 600,000 by the end of year 2008. By

expanding its private sector role, the bank aims to establish network of hightech rural and agri. financial services through intermediations under public

private participation and whole-sale -retail lending mechanism.

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Restructuring plan under RFSDP

To operate on commercial lines to expand its

outreach, the Bank is under going a process of

organizational, financial and functional

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restructuring

Formation of the Banks subsidiary KSSL

subsequently endorsed in 20th meeting ofZTBL

Board held on November 16, 2005.

The Security Exchange Commission of Pakistan

allowed incorporation of KSSL, a Subsidiary of the

Bank

Supervised agriculture credit scheme

Under this scheme agriculture loans are given for short, medium and long term loans upto Rs.1.00

million per borrower/per case. The loans are sanctioned for In Fats, livestock, orchard, tractor,

agricultural machinery, tubewell and irrigation facilities etc. under the scheme besides provision of

credit, information are to the farmers for planning the farm, production, guidance for implementationof the scheme, marketing and repayment of loans.

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Zarkhaiz (one window operation)

For timely and conveniently provision of credit to purchase inputs, loans are provided to the borrowers

under One Window Operation being conducted twice a week during Rabi and Kharif seasons. All the

related departments i.e. Revenue, Agriculture, Post Office etc. attend the focal points, established at

convenient places. The farmers get their pass books prepared and loan applications processed on the

same day whereas sanction payments are made within three days at Branch. For Rabi Crops one

window operation from October to January and for Kharif Crops from April to September each year

which is extendable as per requirement of particular area.

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White Revolution Scheme

PDDC (Pakistan Dairy Development Company) shall recommend good dairyfarmer to ZTBL and send the loan request to the bank along with necessarydocuments. Initially the scheme will be for modernization of 5,000 farmduring 5 years period. The modernization of dairy farm will be carried outthrough financing milk cooling tank, generator, voltage stabilizer, hot water

gezer, water pump, cooling pad and other dairy equipment. . . . Read More

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y Back to Top

Sairab Pakistan Scheme

Water plays vital role to improve per acre yield. Out of total 31 millionhectors area of Pakistan, 22 million hectors is cultivated while 9 million

hectors is culturable waste mainly due to non-availability of water. More

over increase in water supply being a key input is required to raise cropping

intensity and hence the income of the farmer. Since inception ZTBL financedover 143000 Tubewells amounting to Rs.15 billion. For raising irrigated area

to accelerate the economic growth and to facilitate the farmers ZTBL hassigned collaboration agreement with M/s KSB Pumps Company Limited

(Company) on 28thMay, 2007. Farmers of atleast 3 acres land holding willbe eligible to avail financing under the scheme provided loan proposal is

feasible. ZTBL will disburse Rs.6 billion to the farmers for installation of

30,000 Tubewells/Turbines during the next five years. KSB Pumps Company

will provide quality machinery/equipment for efficient pumping of water. The

company shall also provide after sale service including replacement ofparts/availability of spares etc. through its network of dealers. . . Read More

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Sada bahar scheme

For providing timely input loans for crops and working capital for poultry and

fishery etc, the Bank has launched a Sada Bahar Scheme. Assessment for

inputs requirements for the whole year is made at the time of first

application. The amount so assessed is treated as Revolving Limit provided itis within the security limit. The Managers are authorized to sanction such

loan limits upto Rs.O.500 million. Scheme's main features are as under:

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TEA FINANCING Scheme

In order to increase the tea cultivation in District Mansehra, Swat, Mutta,

Shangla par and Dir in Malakand Division, tea financing scheme has been

introduced which would not only save the hard earned foreign exchange butwould also help improve the socio-economic condition of the inhabitants of

the area. The salient future of the scheme are given as under:

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Crop maximization project

Ministry ofFood, Agriculture and Livestock (MINF AL), Government of

Pakistan has launched Crop Maximization Project in 109 villages in variousdistricts through out the country to increase the productivity/yield of crops.

Under the project MINFAL has to provide funds of Rs.299.893 million to

ZTBL for disbursing loans to the project farmers for purchase of inputs. Till

the time funds of Rs.168 Million have since been received by the Bank forthe purpose. These funds are to be revolved for meeting input credit needs

in the project villages till 30th June, 2014 after which Bank will return the

principal amount to MINFAL. Accordingly Credit needs of the project farmers

are being met by respectiveZTBL branches through Village Organizationsformed for the purpose.Duly the currency of the project Bank is authorized

to charge 4% per annum mark-up on loans to project growers to meet its

operational cost, however in case of default Bank's normal rate of return i.e.9% p.a. will be applicable.

$17.179bn

Inflation CPI% (Jul 10-Mar 11)

14.20%

Exports (Jul 10-Mar 11) $17.80bn

Imports (Jul 10 - Mar 11) $29.02bn

Trade Balance (Jul 10 -

Mar 11)

($11.22bn)

Current A/C (Jul 10- Mar11)

$99mn

Mar-Remittances (Jul 10

11)

$8.02bn

Foreign Invest (Jul 10-

Mar 11)

$1.32bn

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Revenue (Jul 10 Mar 11) Rs.1012 bn

Foreign Debt (Dec 10) $58.39 bn

Domestic Debt (Dec 10) Rs.5497.4 bn

Repatriated Profit (Jul-

Mar 11)

$491 mn

LSMGrowth (Feb 11) 0.98%GDP Growth FY10E 4.10%

Per Capita Income FY10 $1,051

Population 175.87mn

Debt/Equity Ratio

What Does Debt/Equity Ratio Mean?

A measure of a company's financial leverage calculated by dividing its total

liabilities by stockholders' equity. It indicates what proportion of equity and

debt the company is using to finance its assets.

Note: Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation.

Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal financial statements

as well as corporate ones.

Watch: The Debt To Equity Ratio

Investopedia explains Debt/Equity Ratio

A high debt/equity ratio generally means that a company has been aggressive in financing its growth with

debt. This can result in volatile earnings as a result of the additional interest expense.

If a lot of debt is used to f inance increased operations (high debt to equity), the company could potentially

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generate more earnings than it would have without this outside financing. If this were to increase earnings

by a greater amount than the debt cost (interest), then the shareholders benefit as more earnings are

being spread among the same amount of shareholders. However, the cost of this debt financing

may outweigh the return that the company generates on the debt through investment and business

activities and become too much for the company to handle. This can lead to bankruptcy, which would

leave shareholders with nothing.

The debt/equity ratio also depends on the industry in which the company operates. For example, capital-

intensive industries such as auto manufacturing tend to have a debt/equity ratio above 2, while personal

computer companies have a debt/equity of under 0.5.