Should I Get an MBA?
X420 Discussion Session # 70
Is it
worth
it?
Will I be
accepted
in a
program?
How do I
begin?
When
should I
start?
What will I
learn?
Which
type of
program?
What schools
are right for
me?
MBA Trends
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1965 - <10,000 MBAs awarded
1977 - 48,000 MBAs awarded
1998 – 94,000 MBAs awarded
2004 – 110,000 MBA’s awarded
Two-thirds of these degrees awarded to
part-time or distance students
• 20% of graduates plan to go into business
for themselves
Where do MBAs Work?
• Manufacturing
• Service Industries
• Government
What do MBAs do?
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Accounting
Corporate finance
Information systems
Financial institutions
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Marketing
Consulting
Personnel
General management
Starting Salaries
$70k - $90k+
Signing Bonuses
Why Get an MBA?
• To open new career opportunities
• Personal development – intellectual stimulation,
self-confidence
• Shift from individual contribution to managing
others
• To further your career – stay competitive
• To increase salary
• Potential to network
• Company advice or requirement
Why NOT to Pursue an MBA!
• Looking for a “silver bullet” for success
• Something to do while looking for a job
• Unhappy in current job without knowing
why
Typical MBA Student Profile
• Mid twenties to early thirties
• Good academic background with solid work
experience
• Ambitious and determined
• Strong idea of career direction
What You Get with an MBA
• “Boot camp” training for management
• A focus on all specialist areas of
management
• Combination of technical and “soft” skills
• In-depth focus of a particular discipline, if
desired
• Credentials
Choosing a Program
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Curriculum
Teaching methods
Delivery methods
Schools
Curriculum
• Traditional
– Begin with functional core courses – finance, marketing,
accounting, macro and micro economics, operations, IT,
human resources, quantitative analysis
– General management themes – legal, social, ethical and
technological issues; change management; organizational
theory and behavior; strategic management
– Advanced courses or electives in a core area leading to
major concentration
• Variations
– Incorporate “softer” skills – leadership, negotiation,
teamwork
– Internationalize their focus
Teaching Methods
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Theory method – lecture/discussion
Case method
Team projects and presentations
Computer simulation
In-company projects
Delivery Methods
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Full time
Part time
Executive
Distance learning
Flexible MBA
Full-Time Programs
• Typically two years
• Some work experience required (typical age – 27)
• Advantages:
– High interaction with other students and professors
– Ability to take numerous elective courses
– Appropriate for career changers
• Disadvantages:
– Long time away from work
– Expensive
Full Time Degree Cost Analysis
+ Tuition, supplies, books, living accommodations
- Financial aid, part-time employment
+ Loss of salary during school
Total Cost:
Part-Time Programs
• Typically four years (night classes)
• Students tend to be older with more work experience (typical age
– 33)
• Advantages:
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Continue to work while attending school
Employers more likely to provide tuition reimbursement
Utilize what you learn on the job as you learn it
Ongoing work experience may enhance your performance in the program
• Disadvantages:
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Time is limited which places strain on job, studies and family
Company may not like subordinating work effort
Promotions and/or raises may not be automatic
Degree may not be viewed as prestigious as full-time degree
Executive MBAs
• Weekly one-day classes or biweekly weekend classes
• Typically two years
• Students tend to have seven or more years of work experience and
already in a management role
• Advantages:
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Company-sponsored
Continue to work while attending school
Apply learning immediately
Classmates provide excellent networking source
Programs are lucrative so schools provide perks and top faculty
• Disadvantages:
– Limited choice of courses/majors
– Time is limited which places strain on job, studies and family
– Limited exposure to classmates
Distance Learning MBAs
• Most coursework taught and completed online
• Typically three to five years depending upon student intensity
• Advantages:
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Enhance cyber skills
Freedom to work at own pace
Less expensive than other programs
Location is not an issue
• Disadvantages:
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High drop out rate – hard for some to stay motivated
Few companies will sponsor this degree
Limited physical interaction with other students and faculty
Few fully accredited programs
Flexible MBAs
• Derivative of Distance Learning MBA
• Combines classroom with online courses
• Advantages:
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Many of same advantages as Distance Learning
Many fully accredited programs are some online courses
Can meet with classmates and faculty
Can accelerate the degree
• Disadvantages:
– Cost and time of attending class at the school
Timing
Selecting a School
• Self analysis – reasons, personal strengths and weaknesses
• Accreditation – American Association of Collegiate Schools of
Business (AACSB)
• Suggested criteria
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Reputation
Size
Location
Tuition
School’s mission
Specialization
Teaching methods and environment
Placement services
Selecting a School (cont.)
• Research Schools to find a fit
– Publications – MBA Casebook, The MBA Career Guide, The MBA
Advantage, Which MBA?
– Business Publications – Business Week, U.S. News & World Report
– Get information from schools
– Personal visits and MBA forums
• Rankings
– Many different ranking methodologies
– Should influence decision, not be sole factor
– School rankings do impact recruiting companies
Admission
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Self-managed application with essays
Academic record (transcripts)
GMAT score
Management skills – work experience
Letters of recommendation (specific)
Extra-curricular activities and community
involvement for leadership
• Personal interview (possibly)
Financial Aid
• Merit scholarships
• Part-time employment – graduate assistants
• Loans
SHOULD I
GET AN
MBA?
EVALUATION QUESTIONS
• USE:
1. I found the presentation material
– a. Strongly agree
easy to understand.
– b. Agree
– c. Disagree
2. This discussion session increased
– d. Strongly disagree
my knowledge of the subject presented. – e. Don’t know
3. I will be able to use some of the
information from this session in the future.
4. The presenter was well prepared for this discussion session.
5. This presentation should be repeated in future semesters.