This summer, I had the opportunity to intern at Intellectual Analytics, LLC in South Bend with Wabash alumni Jim Abercrombie ’02 and Shane Fimbel ‘02. Intellectual Analytics (IA) is a company interested primarily in acquisitions and consolidation with other privately held businesses. My main tasks include intensive research of market segments to look for business opportunities in various industries and come up with data to justify investment in those ventures. Adding to the whole experience was the fact that I shared co-working space with Trek10, USTC and enFocus interns at Union Station Technology Center (USTC). USTC is essentially a data center that houses many other businesses.
Although Intellectual Analytics is primarily interested in the acquisition and consolidation process, this summer they extended their operations to diversify into other industries—one of which is the export of hay products (alfalfa hay, in particular). To capitalize on an eightfold increase in hay demand from China and utilize IA’s existing business connections there, we decided to understand the market and begin operations in this industry.
Let me first start by explaining what exactly we were looking to trade. Alfalfa hay is a field crop mainly used as feed for dairy cows. But why were we interested in crops? With rising incomes of the Chinese middle class comes the increase in demand for dairy products such as milk, cheese, and yogurt. (Recall elasticity lessons from Eco 101!) My task was to understand the economics, agronomy and logistics of this global industry. The variety of tasks in this project made this an exciting yet challenging experience. I started by laying out a step-by-step process of exporting alfalfa from California to Chinese ports. Then I proceeded to collect the shipping, insurance, trucking, freight and other associated costs from multiple sources. The exchange rate was an important factor to keep in mind during this process. To understand the hay journey from harvest to port, I looked at yield data, bale packaging, compression, inventory tracking systems and testing methods while keeping in mind the USDA quality guidelines for hay and forage. At each stage of the research, it was imperative that I produce detailed cost analyzes for us to evaluate various options and decide on the best ones.
After a few weeks into the project, I made personal contact with dozens of hay exporters and government officials (customs, Chamber of Commerce etc.) to understand trade policies and issues we could face on the other side of the globe. My research would not have been complete without learning tricks of the trade from industry experts. Along the way, I was exposed to the level of politics prevalent in this global industry.
My research of different market segments was instrumental in company decision making as it determined the direction we wanted to pursue in our deal with the Chinese. To eliminate any communication barriers, my presentations were translated into Mandarin and sent to our buyers in China.
Some of my other shorter projects include looking for opportunities in the Chinese consumer electronics industry, US healthcare industry, and housing market. Overall, this internship has been a great opportunity for me to experience first-hand the different facets of running a business and acknowledge the complexities involved in deal sourcing. I learned a great deal from business meetings and one-on-one conversations with Jim and Shane. Be it in a conference room or a Cubs baseball game, there was always something to learn in their company. One of the many valuable skills I gained during this time is persistence—not giving up even when you think the data you need is just not there.
I want to thank Jim Abercrombie ’02 and Shane Fimbel ’02, who have been great mentors to me during this time. The Career Services, Wabash alumni and most importantly, the Lilly Endowment Fund deserve credit for providing such great opportunities to students. This experience wouldn’t have been possible without them.
