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MBA Advice

Despite ongoing recessions in many regions of the world, many companies are continuing to invest in MBA educations, both for their own executives and as a source of new talent. Indeed, over 100,000 people a year choose to study for an MBA and with young professionals all over the world recognising that there are no �jobs for life�, undertaking an MBA could provide you with the skills to make you as an individual more marketable and provide you with a greater career choice.

The Young Professionals Group has teamed up with TopMBA.com (now deceased) to bring you a great selection of advice articles on selecting and applying to business school.

This article is provided exclusively for general information and interest purposes only and does not necessarily represent professional advice. Neither the Young Professionals Group nor the British Computer Society are affiliated with topmba.com, a division of topcareers Limited.

Choosing the Right Business School

If you are considering taking an MBA you will no doubt be thinking about which business school would be right for you. However, as more Universities offer MBA programmes, it is becoming increasingly difficult for candidates to determine which business school would offer the most suitable MBA programme to meet their needs.

Editor of TopMBA.com, Nunzio Quacquarelli shares his thoughts about how to go about choosing a Business School that's right for you.

When embarking on one of the major personal investments in your lifetime (certainly more important than buying a house because it will affect your stream of income for the rest of your life) a systematic process for making your business school choice should be adopted.

The first thing to do is to try to narrow down the types of career you might like to pursue, balanced by a realistic self-assessment of your current abilities and skills base. Examine your motives carefully. Determining where you want to work after your studies should be a major part of this process.

Why ask these questions first? For practical reasons, most business school application forms ask for your career aspirations. They want to see a clear, cogent explanation of where you want to be in the future and why that school can help you get there. For example, if you think you want to become a management consultant or an investment banker with starting salaries of over US$90,000, there are only 50 or 60 international business schools, of which 50% are in the US , where these companies actively recruit.

Research conducted by TopMBA.com indicates that the most popular criteria for choosing a business school are the following:

  1. International reputation/prestige

    Reputation amongst recruiters is an indicator of the quality of a program and 65% of respondents identified this as very important.

  2. Profile of participants

    Average level of work experience, average GMAT score, percentage who are from overseas, educational background, languages required, success of alumni. 50% of respondents identified this as very important.

  3. International reputation/prestige

    Quality of research and reputation locally How the school is regarded by employers in the country in which one aims to work is clearly significant, as well as it's reputation for producing original research. 41% of respondents identified this as very important.

  4. Teaching style and specialisations

    40% of respondents identified this as a very important factor, choosing between a case method approach verses taught courses, or group projects. Or choosing a school for a particular specialist focus like entrepreneurship, or technology management.

  5. Flexibility and convenience

    How does program to meet your personal requirements: Part-time, one year, near by etc, was very important to 22% of respondents.

  6. Low Cost

    Identified as very important by only 19% of respondents.

This article is provided exclusively for general information and interest purposes only and does not necessarily represent professional advice. Neither the Young Professionals Group nor the British Computer Society are affiliated with topmba.com, a division of topcareers Limited.

MBA Specialisations

As more and more Universities offer MBA programmes, it is becoming increasingly difficult for candidates to determine which business school would offer the most suitable MBA programme to meet their needs. Many business schools are moving away from the ?generalist' format, which has been the standard MBA model for the last thirty years. But this move is not without controversy, because ?it allows less well known schools to challenge the prevailing wisdom that schools that do well in macro-rankings are 'best at everything'? says Alain Lempereur, Professor at ESSEC School of Management where he teaches on both the Luxury Brand Management MBA and the MBA in Hotel Management.

The trend towards one year niche, or specialist MBAs, designed for particular groups of professional people, appears to be market driven. Today you can choose from a wide range of MBA specialisations, ranging from an MBA in Accountancy and Finance, to an MBA in Sports Management, or an MBA in Technology Management. 'Our specialist MBAs in Financial Studies, as well as Insurance and Risk Management are proving popular with applicants. All our courses are oversubscribed and we are expanding into a new building' says Scott Goddard , Dean at Nottingham University Management School . Over 1000 candidates are taking specialist MBAs in the UK this year (including Masters in Finance) and over 2000 in Europe , compared to around 200 people in the whole of Europe five years ago.

Yet the emergence of these niche MBA programmes is not without controversy. It can be very difficult for an applicant to ascertain which schools are credible and which are simply jumping on the MBA bandwagon. Many business schools continue to turn their noses up at the idea of specialist MBAs. Professor Ian Turner , Director of Graduate Business Studies at Henley , feels the term specialist MBA is an oxymoron??the purpose of studying for an MBA is not to get subject specific expertise. The MBA is designed as a general management degree. Its function is to 'round you out' as an individual and nurture your leadership capabilities, preparing you for senior management responsibilities.

US schools in particular, reject the specialist MBA model. Their two-year format allows MBA students to be generalists in their first year, whilst specialising in their chosen field in their second year. The ?Ivy League' are trying to remain world-beaters by building strength in depth within all key departments, though they admit that excellent professors are scarce, making this an impossible objective. Only a few schools have the resources to be better than the rest in particular electives says Patrick Harker , Dean of The Wharton School in Philadelphia . Bob Joss , Dean of Stanford agrees ?the faculty are key...they are not only teaching, but they are writing the books to influence management theory, thinking and practice.

With great professors in such short supply, TopMba.com International Research has recently surveyed over 4000 companies worldwide, to establish, from their recruiting experiences, which schools are supplying the best specialist-prepared MBAs. The results tend to support the view that the ?Ivy League' US schools and top European schools are maintaining their lead in most fields, though a few smaller specialist programmes are breaking through.

Marketing has become almost a science under the watchful eyes of statisticians working at top business schools. Sophisticated analytical techniques like conjoint and cluster analysis have allowed customer segmentation to be taken to new degrees of precision. The growth of the Internet and the collation of databases containing detailed customer profiles, have only served to heighten the value and sophistication of marketing tools for achieving competitive advantage.

Kellogg School of Management is recognized by the highest proportion of responding recruiters (28% in 2003, compared to 31% in 2002) than any other school for producing the best marketers. Jevelyn Bonner-Reed, Associate Director of Admissions at Kellogg says; obviously we are proud of our reputation in the field of marketing and we work hard to maintain our pre-eminent position, but today it is only our third most popular elective, after finance and strategy. It is important for a school like Kellogg to be seen as more than a marketing programme. In Europe, INSEAD and Cranfield stand out from the crowd for marketing. The specialist MBA at ESSEC, just missed out, featuring eleventh this year. Alain Lempereur says Our Luxury Brand Management MBA is only young. But if someone wants to work for LVMH, Gucci, or L'Oreal , ESSEC is the place to be. Marketing luxury goods requires very specialist skills and there is no doubt the French are the best in the world in this pursuit.

Finance is such a complex industry that many schools have large departments dedicated to this subject. Most of the world's investment banks are staffed primarily by MBA graduates from schools with a strong reputation in finance. However, only recently have specialist programmes been developed dedicated to the finance professional.

In the US the finance department has become a battleground for business school supremacy. With the high profile of Wall Street amongst MBA recruiters, finance is one of the most important disciplines. The Wharton School , with pre-eminent Professors like Jeremy Siegel , was selected by 26% of recruiters for producing the best finance MBAs and is often treated as an extension of Wall Street research departments.

London Business School has long had a powerful finance faculty, which has only been enhanced since it developed the highly successful one year Masters in Finance (MiF) in the mid-1990s. Yet Janet Dobson , Director of the MiF shares the view that: a specialist Masters like the MiF is very different from our generalist two year MBA. It is intended for finance junkies of our MiF class already have an MBA or management degree. Specialist MBAs like the MBA in Financial Studies at Nottingham University Business School and the part-time MBA at Cass Business School fail to make the top ten in Europe , but still have a good following amongst UK recruiters.

Despite the ?top-tier' schools dominating these tables, some niche MBAs are hear to stay. Within the TopMba.com research, the Information Management specialist MBAs at Theseus, Rotterdam and SDA Bocconi feature well. Instituto de Empresa 's one year international MBA specializing in entrepreneurship is recognized as the best programme for entrepreneurship in Europe . Success stories in the UK include the Public Sector specialist MBAs developed by both Cranfield School of Management and Imperial College .

However some niche MBAs also follow fashion, and their durability is yet to be seen. In 2003 there has been a flurry of new MBAs specializing in Corporate Social Responsibility, with new programmes launched at Nottingham University Business School and University of Geneva . MBAs for Sports Management have also emerged as popular options. European University , based in Geneva , has a Sports Management MBA close to the HQs of UEFA and the International Olympic Committee, whilst Liverpool University offers an MBA in Football Management.

Convenience is a big selling point for specialist MBAs. Part-time and distance learning programmes, which allow people to carry on working have been very successful. Bob Henry , Director of Manchester Business School Worldwide distance learning MBAs, has overseen the rapid growth of their Accountancy specialist MBA, and last year launched an Engineering specialist MBA with demand far exceeding our expectations. He comments 'these programmes are meeting a real need amongst busy working professionals who want a breadth of business education, yet know the field in which they wish to specialise'.

Professor Ian Turner at Henley maintains that " from my experience, the majority of MBA students are looking for a general management qualification and shy-away from selecting a business school with a bias towards one area in particular."

This may be true for high flyers, confident in their ability to gain entry to a top school. Yet the reality is that many less well qualified people just want to progress within their existing field, and a specialist MBA can give them the MBA badge, and a helping hand in their career.

Note: The TopMba.com Specialist MBA Research Report will be available at the World MBA Tour Fairs in 2004.

This article is provided exclusively for general information and interest purposes only and does not necessarily represent professional advice. Neither the Young Professionals Group nor the British Computer Society are affiliated with topmba.com, a division of topcareers Limited.

Time and Money

How much time can I realistically invest in an MBA? What can I afford to pay?

The standard period for an international full time MBA in the US is two years with schools such as Wharton, Harvard and Stanford are costing approximately US$34,000 for tuition per annum. In Europe, the London Business School offers a two year program, whereas IMD, INSEAD, Cranfield, Warwick and other leading programs are one year.

In Europe, the annual cost of an MBA can be as little as £5000 or as much as £31,000 for tuition, with books and living expenses. However, financial aid opportunities exist that can make the most costly programs affordable. Scholarships are offered by a variety of organisations, and many local banks offer low-start loans for the period of your study. Individuals are advised to apply to the school of their choice and when doing so make specific enquiries about funding options.

Distance learning study is also a serious alternative. Over 25,000 people are now using distance learning for an MBA or similar diploma with British institutions. Average costs for distance learning vary from £4,000 to £20,000 spread over 3 to 8 . Within the Distance Learning arena, the schools most often referenced by HR Directors in The MBA Career Guide research included: Aston, Durham, Henley, Heriot-Watt, Manchester Business School Distance MBA, Open Business School, Strathclyde and Warwick.

This article is provided exclusively for general information and interest purposes only and does not necessarily represent professional advice. Neither the Young Professionals Group nor the British Computer Society are affiliated with topmba.com, a division of topcareers Limited.

MBA Salary Guide

Research conducted by the World MBA Tour / TopMba.com between 1990 and 2003 shows that globally, average salaries for graduating MBAs have increased 16.5% in the past seven years (1996-2003). After what has proven to be a brief correction in 2002, MBA salaries have increased by 2% in 2003. Business School Placement Directors and MBA Recruiters are predicting further salary growth in 2004 as the service sector rebounds.

A decade of uninterrupted economic growth during the 1990s resulted in ever-increasing salary and bonus packages for MBA graduates. This trail of gold encouraged a growing pool of MBA graduates, who were eagerly consumed by businesses worldwide. Despite the dot.com disruptions in the US market in 2000 the momentum behind this trend fuelled increased salary packages in 2001. At the start of the recession in 2001, even though companies decreased salaries overall, starting salaries for top MBAs continued to increase. However, the trend reversed in 2002 and salaries corrected to near 1999 pre-dot.com boom levels. Even in the midst of the 2002 salary correction, there were regions, such as Europe , which proved to be relatively resilient

Since 1990, TopMba.com has conducted an annual survey of MBA recruiters worldwide; over 4000 recruiters were surveyed this year, with 270 companies responding.

The results show that the average salary for MBA hires fell in 2002 from its 2001 high down to a level similar to 1999. However, in 2003, there was a slight pick up once more, with a 2% increase reported by recruiters. This 2% increase is an average globally and there have been regional and sector variations in this trend. In 2003, European MBA salaries have remained stable, whilst US and Asian MBA salaries have picked up slightly.

MBA bonuses have remained sizeable at an average of $18,097. Recruiters favour bonuses tied to performance, rather than signing, and they are now in a position to implement this method of rewarding employees.

Looking at the future prospects for MBA salaries, Peter Degnan , Careers Service Director at Wharton comments ?in recent years, as fewer of our MBAs have entered consulting and banking, average salaries have drifted down. However, in 2003, we saw the start of the consulting market pick-up and this will result in a quick jump in reported average salaries.?

In Europe Alison Edmonds, Career Service Director at Manchester Business School confirms ?although consulting recruitment is still below previous levels, it is picking up and this is having a positive impact on average MBA salaries in 2004.?

In qualitative feedback, recruiters indicated that they believed the first half of 2004 would witness a further rebound in the demand and, therefore, salaries for MBA graduates. Elgar Peerschke of Bain & Company says ?we are experiencing our highest utilisation rates for several years, in the USA , Europe and Asia . Our MBA recruiting efforts are going full force.?

There remains a measurable benefit to those who pursue an MBA. The average pre-MBA salaries reported by candidates from North America and Western Europe , to the TopMba.com Applicant Research, was $37500. By comparison, the average salaries on graduation from INSEAD, LBS, Wharton and Stanford all range between $95,0000 - $100,000 in their latest placement reports.

Further Information

Since 1990, the World MBA Tour / TopMba.com Salary Survey has provided detailed trends in MBA salaries in each region of the world; Asia, Australia, Latin America, North America and both Western and Central Europe. The data includes specific information by sector, geography, and year. These benchmark figures are used by MBA applicants, students, placement officers and recruiters around the world, helping in the formulation of negotiation strategies.

This article is provided exclusively for general information and interest purposes only and does not necessarily represent professional advice. Neither the Young Professionals Group nor the British Computer Society are affiliated with topmba.com, a division of topcareers Limited.

Further MBA Information

For more information on MBA and business schools the following are good starting points:

  • The MBA Career Guide

    Compares and contrasts key facts about 200 different MBA programmes: costs, specialisations, entry requirements, reputation etc. The Guide is available at all World MBA Tour fairs.

  • Global 100 Business Schools Research

    Asks MBA recruiters to identify the schools they target for MBA recruitment. This helps identify the 75 most popular schools in the US and Europe as well as the 25 most popular schools in Australasia and Latin America. In addition a detailed report on MBA salaries, recruitment trends and school specialisations is provided. The report is available on the web site.

  • World MBA Tour

    One of the best ways to choose the right school is to actually meet with Admissions officers. This Autumn the Admissions offices of over 300 leading business schools will visit 42 cities in 4 continents.

This article is provided exclusively for general information and interest purposes only and does not necessarily represent professional advice. Neither the Young Professionals Group nor the British Computer Society are affiliated with topmba.com, a division of topcareers Limited.