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Tomorrow’s MBAProspective MBA studentsset out their views on what theythink of the MBA qualification,what they expect from thebusiness school experience andwhat they want to study.
The New DiversityExecutive Summary 2013
carringtoncrisp
© CarringtonCrisp February 2013
All rights reserved.
Reproduction in whole or part prohibited without prior permission of the authors.
No part of this publication may be reproduced, stored in a retrieval system or transmitted
in any form or by any means without prior permission of CarringtonCrisp, ABS and EFMD.
3
tomorrow’s mba
It’s rare to find a group of MBA Directors or Deans who don’t at some
point in their conversation question the future of the MBA. Four years
ago when the Tomorrow’s MBA study started this seemed like a real
issue – MBAs were criticized for failing businesses and a global
economic crisis loomed. Yet looking at the findings from the fourth
year of the Tomorrow’s MBA study, while uncertainty about the future
remains, the discussion now is just as likely to be what type of MBA
will you offer?
Data for the fourth Tomorrow’s MBA study was collected in October
2012. Just over 1200 potential MBA students responded to the survey
from 69 countries.
Looking beyond the survey data still leaves a degree of uncertainty.
Large numbers now use the GMAT to apply for a specialist business
Masters; overall numbers are up, but much of the growth is down to
increases in China and among younger candidates. Just under half (47%)
of all GMAT test takers are now under 25 years old, in Asia-Pacific it's
58% and in China it's 81%. Over five years those taking the GMAT aged
under 24 has grown from 58,688 in 2006-07 to 91,028 in 2010-11.
In the UK, 84% of full-time MBAs are now international students. In
India the numbers taking the CAT preparation test for entrance to the
business schools was down by 1,000 last year. The messages from the
data are many and varied, but looking solely at the results from this
year’s Tomorrow’s MBA study some clear themes emerge.
13%
19%
8%
23%
14%
23%Block taught weekends
Block weeks
E learning
Blended learning a combination of face to face and elearning
Evenings
Academic terms office hours
Figure 1. Preferred learning mode of respondents
An MBA is surely a long-term
asset. However, the existing
economic situation brings
some fear of huge investments,
with high risk. Irrespective of
the ranking of a School, the
employability of an MBA pass-
out becomes the immediate
factor of success.
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Younger, male and Asian
Respondents to Tomorrow’s MBA were largely male (72%) and the
biggest group (55%) was aged 25-34. However, 1 in 6 of the respondents
are aged under 24, reflecting the growing trend of younger applicants.
Indian nationals made up 1 in 7 of the respondents, but there was a
strong response from other Asian countries as well.
Among international recruiters much interest has been focused on
Indonesia and South Korea, while The Economist has recently
identified Mongolia and Macau as two of the fastest growing
economies in the world.
Rise of the specialist
Whether it’s the specialist MBA or the alternative of a specialist
Masters (MSc), both are becoming more significant in the
marketplace. Those looking for a specialist MBA are consistently
about 40% of the marketplace. In both cases, Finance is often the
preferred specialism, but students have diverse demands for
everything from Corporate Social Responsibility through Healthcare
Management to Technology Strategy.
0% 10% 20% 30% 40% 50% 60%
that has strong practical content
that has content I can tailor to my needs
that combines academic theory with real world application
that will challenge me to think differently
that will improve my career prospects
that will improve my earning potential
that will provide me with new skills
that has a good range of modules available for study
that offers good value for money
with flexible study options (e.g part time, evening, distance learning)
with international study options
with work experience opportunities
that includes a strong focus on corporate social responsibility/sustainability/socialenterprise
that has students with a wide mix of experience
that has programme content informed by close links with business and industry
Figure 2. Factors considered important when selecting an MBA programme
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tomorrow’s mba
A quarter of respondents in this year’s Tomorrow’s MBA would definitely
consider a specialist Masters as an alternative to an MBA and a
further 20% said this would be a possibility. Masters in Management
are becoming increasingly popular for young students and those with
limited or no work experience; they are often cheaper and quicker to
complete than an MBA and offer a means to differentiate a graduate
in the labour market.
No longer a full-time programme
MBA study comes in many different shapes and sizes today with the
demand for full-time study outweighed by those looking for part-time
or distance learning alternatives. The rise of MOOCs, ever improving
technology for learning, the high costs of study and continued
economic uncertainty in many developed countries are likely to see
the trend away from full-time study continue.
Only 23% of respondents in this year’s study want traditional academic
terms, while a similar number choose blended learning as a preferred
way of studying for an MBA. Around 1 in 7 choose both weekend or
evening study.
0% 10% 20% 30% 40% 50% 60% 70%
with a strong academic reputation
with a world class research reputation
that has a strong national reputation
that has a strong international reputation
that focuses on giving students a global perspective
that has a diverse mix of international staff and students
that has been recommended to me
that is located close to where I live and/or work
that has a high league table ranking
with a strong alumni network
that has a good record of enhancing career prospects
with high quality teaching staff
with high standards of customer service
that provides dedicated career services for MBA students
that has one or more of the following accreditations AMBA, AACSB and EQUIS
that offers many scholarships/bursaries
that has excellent on campus facilities
that is located in or near a major city
Figure 3. Factors considered important when selecting a business school
The ROI I am interested in is
the leadership skills, strategy
planning skills & networking
that could indirectly help me
with my business. I would
like to see more entrepreneurs
in the class, even if the
entrepreneurs are young.
Young entrepreneurs could
mean innovative & dynamic
individuals that could offer
new insights to the class.
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Career lessons for schools
It’s no surprise that the main motivation for studying an MBA is career
improvement and that career prospects are a key element of the choice
of where to study. When choosing an MBA programme, respondents
to the survey suggested that five issues stood out as most important:
• that will improve my career prospects
• that will provide me with new skills
• that will challenge me to think differently
• that combines theory with real world application
• that has strong practical content
All of the responses set out above were selected by more than 40%
of the total sample.
However, there are more important career lessons for business schools
– how is career success portrayed, are alumni involved in providing
careers support and are there dedicated career services for MBAs? The
latter was the top choice among this year’s respondents when asked
what career services they expected from their chosen school.
Increasingly alumni have a powerful role to play in career services.
Alumni provide an authentic voice when it comes to post-study
employment, their stories bringing to life the data and claims made
by a school. Providing access to alumni and featuring their stories on
a school website offers an ideal approach to enhancing a school’s
career offer.
5% 2%
7%
1%
21%
2%
11%9%
8%
8%
1%
10%
1%
6%
8%MBA Accounting
MBA Corporate Social Responsibility
MBA Entrepreneurship
MBA Facilities Management
MBA Finance
MBA Healthcare Management
MBA Human Resource Management
MBA International Management
MBA IT
MBA Leadership
MBA Legal Management
MBA Marketing
MBA Tourism
MBA Technology Strategy
Other
Figure 4. Preferred MBA specialism
I believe that fees
should be disclosed
on all business
schools’ websites,
otherwise students
often choose not to
bother to enquire
about these.
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tomorrow’s mba
A third trend emerging from this year’s research is a growing demand
from students who are looking to gain a placement/internship as
part of their MBA experience. For younger candidates such an
opportunity will strengthen their CV and potentially provide a route
in to full-time employment on graduation. Even an in-company project
of a week or two will be considered advantageous and career services
need to be able to support this interim job search as much as a
post-graduation career.
Choices, choices, choices
Choosing an MBA programme may be dominated by career issues, but
there’s more to consider when choosing where to study. Six reasons
were identified by more than 31% of respondents in this year’s study:
• That has a strong international reputation
• With a strong academic reputation
• With high quality teaching staff
• That has a good record of enhancing career prospects
• That focuses on giving students a global perspective
• With a strong alumni network
New to the list this year were a school ‘that has a strong international
reputation’ and ‘with a strong alumni network’.
0%
10%
20%
30%
40%
50%
60%
Figure 5. Content considered important for an MBA programme
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The addition of an international reputation may be career related, with
students aware that if an employer is recruiting in a tight labour market
they are more likely to do so at the international schools with the best
reputations. It may also reflect a student expectation that the ‘best’
jobs of the future will have a strong international component, hence
international experience at a young age will be invaluable on their CV.
The rising importance of a strong alumni network is also likely to be
career related. Historically, one of the reasons for doing an MBA has
been to network, learning not only from professors, but also from the
experience of others in the class. Beyond business schools this network
becomes even more important as a source of contacts and jobs.
Although cost plays a part in the decision-making process, it may not
be in simple monetary terms. Asked a series of questions about how
cost impacted on school choice, most respondents were likely to agree
or strongly agree that they would choose an MBA programme if they
believe it would offer good value for money. Such a consideration is
not just about the fees, but also about the job prospects on graduation
– the decision is as much about output as input.
However, just over half (51%) disagreed or disagreed strongly that
they would choose a school because it was the cheapest of their
preferred providers. More than 4 out of 10 respondents (43%) agreed
or strongly agreed that ‘I would choose a business school irrespective
of cost as my decision is based on other factors’.
0% 10% 20% 30% 40% 50% 60% 70% 80%
University/business school website
YouTube
FT.com
MBAworld.com
Economist.com
Masterstudies.com
BusinessWeek.com
topmba.com
worldclassmba.com
Yahoo
MBA.com
iTunesU
PagalGuy
BeattheGMAT
GMATClub
Poets&Quants
Other
Figure 6. Websites used by respondents when deciding where to study
I would be pleased if
most universities would
offer a distance learning
MBA for those that are
full-time employed and
offer scholarships to
candidates, especially
females, as I am one of
them, but find financial
constraints are a barrier.
9
tomorrow’s mba
Re-enter the Entrepreneur, but now withProject Management skills
Two years ago the Tomorrow’s MBA report was titled Enter the
Entrepreneur to reflect the identification by respondents of
Entrepreneurship as one of the five most valued pieces of content
when studying an MBA. Last year the subject dropped out of the top
five (although remaining in the top 10). This year Entrepreneurship
is back.
Clearly, Entrepreneurship is here to stay as a valuable part of most
MBA degrees, although it comes in a variety of guises. Of course,
there is the original form of starting a business, but increasingly it is
also a part of thinking differently in a large organisation or being
involved with a social enterprise.
Alongside the return of Entrepreneurship, Project Management is also
increasingly valued by MBA candidates. Project Management skills are
particularly important by those aiming to work in larger organizations
where the ability to work on a variety of projects maybe key to long
term career advancement rather than specialising in a single field.
The global media market
Asked to identify the media they are using to find out about business
schools and MBA programmes, respondents largely identified the usual
suspects – Google, FT, The Economist and BusinessWeek, but there are
also a wide range of local providers that remain important in particular
markets. In addition, there is a multiplicity of social media services
focused on particular countries, audiences or language groups, all of
which can support student recruitment. Around the world there are some
variations and, of course, local media still plays a part; for instance,
in Australia the Financial Review is often mentioned by respondents
to the study.
Much marketing now depends on digital media with the online
versions of print publications often scoring highly. However, Google
and the business school website tend to lead the way, with Facebook
and LinkedIn growing in popularity each year.
Although Facebook and Linkedin are popular in many countries, there
are also many local social media services. In India and Brazil Orkut is
particularly popular, ranking in the top 100 sites in Brazil. Elsewhere,
tuenti.com is the 18th most popular site in Spain, hyves.nl is 57th in
the Netherlands and renren.com is 22nd in China.
MBA courses should be designed
in such a way that it leads to
better employment opportunities.
I understand that it depends on
individuals on how they perceive
or leverage their business school
experience, but the school
should provide the platform such
as interaction with employers,
career services and interview.
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Among respondents from India topmba.com, mba.com, PaGaLGuY and
GMATClub are widely used. Such sites with a clear market focus are of
considerable value for the business school marketeer.
The new diversity
Wherever you look, whether it’s candidate recruitment, specialism of
programme, learning style and delivery or marketing, the MBA market
is becoming more diverse. Globally, for many years the MBA has not been
a two-year, full-time US model. Today and in the future, while this
historic will survive, there will be a wealth of new models developed
and delivered for a diversity of candidates from around the world.
Copies of the full report can be purchased for £200 (+VAT where
applicable). To find out how your school can participate in the
next Tomorrow’s MBA study, please contact us by email at
[email protected] or by telephone on +44 20 7229 7373.
CarringtonCrisp
34 Ladbroke Square
London W11 3NB, United Kingdom
Telephone: +44 (0) 20 7229 7373
Email: [email protected]
Website: www.carringtoncrisp.com
The Association of Business Schools
137 Euston Road,
London NW1 2AA, United Kingdom
Telephone: 020 7388 0007
Email: [email protected]
Website: www.the-abs.org.uk
European Foundation for
Management Development
rue Gachard 88 box 3 B-1050
Brussels, Belgium
Telephone: + 32 (0)2 629 0810
Email: [email protected]
Website: www.efmd.org