Type in "MBA" on your Google search page and you will get almost 54 million hits on the highly sought degree. But how do you wade through the myriad choices out there? Should I pursue a master's degree or a master's in business administration (MBA).
How will I pay for my degree? What impact will the credit crunch have on the demand for MBA graduates? Should I go for part-time or full-time classes? Is a university's ranking necessarily the best criterion to use when selecting a school? These are all questions that weigh heavily on prospective MBA students' minds. Notes talks to experts to help you answer some of those questions.
Masters or an MBA?
If you're a fresh graduate, you're probably wondering about postgraduate study and whether to pursue a master's degree or an MBA.
Each has its merits says Richard Perrin, director of corporate communications at the HEC School of Management, Paris. " If a graduate wants to pursue a more managerial career rather than a technical one, I would advise him to leverage his profile with an MBA."
Perrin says most HEC School of Management MBA alumni feel they would not have secured their current jobs without the management education training they received as part of their degree.
MBA graduates consistently cite opportunities to learn new things, job autonomy, international scope, challenging work and opportunities for advancement as reasons for completing the degree, Perrin says.
Christophe Coutat, founder of the MBA higher education resource organisation Access MBA, says a master's degree is ideal for someone who has completed undergraduate study and doesn't have any professional experience. "They are looking for a diploma that will help them find their first job. It is usually more specialised as opposed to the traditional general management MBA."
Coutat recommends that executives who have already spent an average of five to 10 years in the workforce and want to change their career path or climb the career ladder choose the MBA.
He says that someone who already has specialised skills could continue studies his field; usually candidates who already have a technical background and wish to acquire business and management skills that will be applicable to every field do the MBA.
"A master's in IT management, for example, is helpful but will not have the prestige, the networking, and the top-level quality teaching of an MBA degree," says Coutat.
Financing your degree
Associate director of MBA admissions Craig Hubbell at UCLA Anderson School of Management says scholarships will still be available for top applicants, but in the current economic scenario people are finding it harder to get loans through banks and other lenders for their MBA.
However, he adds, "the lenders are telling us that because our students are not a great credit risk and are people of strong character who get great jobs after graduation, they will be able to pay back their loans."
Some lenders have pulled out of the student loan market but say they will come back next spring, which is when new applicants will need financing, says Hubbell.
"These lenders are not ready to recommit to the student loan market but they're telling us they're working on it and it's likely that they will re-enter."
Hubbell explains there is uncertainty because credit markets in general need to unfreeze and that it looks like it's starting to after some government action. "It will be tougher and for some schools it will be really tough because not all of them have the same record as our students do of being low credit risks," he says.
Perrin believes that despite the uncertain economic climate, pursuing an MBA is "more than ever a worthwhile investment".
He says the HEC School of Management offers need and merit-based scholarships in addition to an honourship fund. The selection varies according to the profile and the criteria set down by its corporate and individual funding partners. Also, partnerships with leading French banks have been created to facilitate educational loans at competitive rates.
Coutat says scholarships are still available, as well as government sponsorships and loans. "The only difficulty might be for top-level executive MBAs, who are usually sponsored and financed entirely by companies. Investment in some future managers will probably be put on hold until things become stable."
Choosing your MBA
Hubbell says the UCLA Anderson School of Management, which comprises about 360 students, aims to have a diverse body of MBA students every year. Those with a variety of undergraduate majors, industry backgrounds, ages and geographical locations are sought.
Some universities expect students to be a little older – usually 25 and with more than five years of experience. However, universities such as UCLA accept students fresh out of undergraduate programmes provided they have exceptional academic records, management potential, leadership potential, good essays, internships and a strong vision for the future.
Perrin says the perfect MBA candidate is more a question of intelligence, humility, awareness, maturity and analytical abilities. "Our world needs leaders able to tackle problems and face conflicts with an understanding of geopolitics, global economics and social issues," he says.
He recommends that young executives in the UAE consider a generalist MBA with a very high reputation, an effective and well-organised alumni network and cutting edge faculty.
Coutat says the key question is to ask where you see yourself in five years. "What are your career goals? Would you like to start your own company one day? Would you like to work in the financial sector? Would you like to become associate partner from the "big 5"? Would you like to continue in your company?"
MBA programme rankings
Ranking is a major criterion that a prospective MBA student considers when deciding on a university. However, Hubbell says, rankings are a mere starting point.
"Anyone who is considering the degree owes it to himself to do a lot more research than look at a ranking which is just one number that characterises an entire school," he says.
Hubbell advises prospective students to look at a school's specialities, class size, culture, and job prospects – factors that are not captured in ranking scores.
"They also need to realise that what drives magazines to publish rankings is higher sales, which is why they create drama about schools moving up or schools moving down the ranking list."
He also suggests students visit the school, sit in on classes and meet current students in addition to analysing rankings.
Perrin says an MBA education is about career and personal development and advises students to carefully read brochures and websites of the schools they are targeting to understand the academic positioning of the MBA and its international impact.
Coutat believes the best way to look at the MBA programme is to examine several criteria including its ranking.
"The places in a ranking have no meaning. Trying to go for the top 100 or the top 30 in your continent or in the world is more than enough and sometimes not even necessary."
This is because many excellent MBA programmes are sometimes not ranked for several reasons and because it is not always mandatory.
"A high reputation of an MBA is useful in certain sectors of the economy and certain jobs but not all, and especially if you continue your career in your current company. The other criteria to look at with equal importance are accreditations, network of alumni, programme strength, location, ambience and teaching method.
Lena Shaba'an, representative for the University of Strathclyde, Abu Dhabi, however, stresses that ranking definitely has a role to play in companies selecting employees.
"Accreditation is also key when looking at universities. If you are working in the UAE, you should look for a degree that's accredited by the relevant education ministry," she says.
Trends
The HEC School of Management, says Perrin, has seen an increase in applications over the past five years with the MBA market becoming more mature and more global.
The university has seen a 29 per cent rise in applicants this year, with the average student 29 with four to five years of professional experience.
Perrin says 84 per cent of the university's students are international with 30 per cent coming from Europe, 25 per cent from the Americas, 35 per cent from Asia/India and 10 per cent from Middle East/Africa/Oceania region.
"The Middle East market for MBAs is dynamic but needs more young executives with competitive GMAT (Graduate Management Admission Test) scores. In terms of numbers, the Lebanese are very aware about MBA matters and HEC also benefits from a well-recognised brand in this country."
Coutat says the trend in the past three to four years has been an increase in applications worldwide. Full-time programmes remain popular and the interest in part-time programmes is growing he says. Also, applicants are younger than they were before and the number of women is rising.
The financial crisis, Coutat says, is also positively influencing the number of applications. Business schools are receiving more applications, as it is the right time for executives to do an MBA, while the economy is uncertain and slowing down.
The Middle East in recent years has seen a boom in applications, as there is a real need for local top-level managers. "Not only in the UAE but in Kuwait, Saudi Arabia and Qatar, for example. The demand for the MBA is really impressive and growing."
Hubbell attributes the rise in applications across the board to the worldwide economic downturn. "Everyone is finding this a great time to return to school during the economic downturn. Business schools tend to be counter-cyclical, which means that when the economy goes down, applications go up."
MBA benefits
Hubbell says a good reason to pursue an MBA is because it is flexible and enables a person to manage organisations.
An MBA is applicable to any field and designed to promote personal skills in terms of leadership and persuasion. "To rise to the top levels of any firm it's also important to know the language of management and understand how marketing, operations and finance departments function."
It's also about accessing a network of contacts around the world, he says.
Coutat comments that the return on investment is high for candidates who earn their MBA at top international business schools.
In the Graduate Management Admission Council's recent study of MBA graduates, an overwhelming majority of MBA alumni were positive about the value of their degree, rating it outstanding or excellent.
Due to the slowing economy, business school applications and investment are soaring. In fact, the number of GMAT test-takers outside of the United States increased by 20 per cent this year and in 2007. Base salaries are expected to increase about 3.9 per cent on average in 2008, matching the average pay increase in 2007, according to a Towers Perrin survey of 4,000 companies worldwide.
Prospective students' feedback
Notes met prospective MBA student Arsalan Ahmad, a mechanical engineering graduate from the University of Michigan, at the QS World MBA Tour last week.
Ahmad, 22, explains that the reasons for wanting to do an MBA was to diversify his skills and give him an insight into entrepreneurship as he currently works in his family's aluminium accessories business. He plans to pursue an MBA in strategy or finance in the near future.
Ahmad says he has noticed that many people are still keen to pursue an MBA but not in the US. "My personal experience with friends is that they are shying away from American universities and looking at Europe as a study and work destination."
Ahmad has noticed universities were cutting back on financial aid and scholarships for international students.
"It does have an impact on students' decisions to study in the US because it's more expensive than Canada for example."
The graduate says he is looking at Cornell University, the University of Pennsylvania or Cambridge University.
"I looked at the universities' rankings and also location – there are good MBA programmes in remote locations but it can be beneficial to go to a less-known school located near a financial centre because of job prospects," he says.
Puneet Manwani, 22, is a recent business administration graduate from the University of Texas with a year-and-a-half of work experience.
Although Manwani realises he does not have enough work experience to apply to schools for the new academic year, he has started his research early and is leaning towards schools in Europe.
"I prefer Spain or France because these countries will offer more job opportunities than the United States or UK after doing your MBA."
Manwani says the dearth of loans and financial aid for international students is worrying because he plans to take a loan to finance his MBA, which will cost about $40,000 (Dh146,920).
MBA fairs
Organisers of the recently held Access MBA Tour say fairs offer a much more personalised experience for students. Another well-known MBA fair in the UAE is the QS World MBA Tour, which brings together many business schools. Students can find the information they need to make the right career choice during the event and business professionals are given the chance to meet with MBA programme representatives in private one-to-one meetings.
This orientation and the personal discussions with admissions officers are key in selecting the best MBA programme for each candidate says Coutat. "The one-to-one meetings are proven to advance candidates in their decision-making process. This is more valuable than basing an MBA programme choice on brochures or rankings," he adds.
By Amelia Naidoo, Notes Staff Report