Should I Get an MBA? X420 Discussion Session # 70

Is it worth it? What will I learn? When should I start? Will I be accepted in a program? Which type of program? What schools are right for me? How do I begin?

MBA Trends <10,000 MBAs awarded ,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? Accounting Corporate finance Information systems Financial institutions 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 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 Theory method – lecture/discussion Case method Team projects and presentations Computer simulation In-company projects

Delivery Methods 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: –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: –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: –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: –Enhance cyber skills –Freedom to work at own pace –Less expensive than other programs –Location is not an issue Disadvantages: –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: –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 –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 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: –a. Strongly agree –b. Agree –c. Disagree –d. Strongly disagree –e. Don’t know 1. I found the presentation material easy to understand. 2. This discussion session increased my knowledge of the subject presented. 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.