It
has been observed that executives tend to avoid business degrees when
the economy looks good in order to progress their careers. But the
same business executives start running in groups towards business
schools when the economy looks sluggish as MBA degrees helps them to
climb the corporate ladder. However, this observation does not hold
true anymore as the recent recession has completely changed the
market and the business world.
Rise
in MBA Applicants in US & Europe
Experts
are now looking forward to the number of MBA applicants in the US
this year as economies in North America and Western Europe are
getting stronger. Although many leading B-schools in US have not yet
reported their application figures, but some of the renowned schools
have claimed a noticeable rise in the class of 2016. The UCLA
Anderson School of Management has reported an increase in
applications by 32%, while at Kenan–Flagler Business School at the
University of North Carolina, there has been a rise of 28% in
enrolments. Moreover, the US Department of Education has also
confirmed that the number of master’s levels students pursuing
business degrees was higher than those studying education degrees.
Growing
Concerns of Education Experts
However,
several admissions directors believe that all this data is unreliable
and misleading. Niki da Silva, Admissions Director at Rotman Schoolof Management, University of Toronto, says, “It seems that there is
a small number of programmes that are doing well, but the rest of the
market is flat”. In fact, most of the reputed business schools are
now making extra effort to attract more students. Phil Carter of
Imperial College London says, “It’s forced us to proactively look
for the right leads”.
Gareth
Howells, MBA Programme Director at London Business School believes
that it is foolish to think that the MBA market can go back to the
2008 levels. He says, “The protracted nature of the downturn ripped
up the rule book on a lot of issues.” Currently, the business
education market has become segmented and very complicated. The fact
is online and part-time MBA programmes are severely affecting the
market share of the traditional full-time programmes. Furthermore,
specialised master’s qualifications and professional degrees like
the CFA have also posed serious threat to the full-time MBA
programmes.
Increasing
Demand for One Year MBA
ChristineSneva, the Executive Director of MBA admissions at the Samuel Curtis
Johnson Graduate School of Management in Cornell University, points
out another aspect. She says that European model of business
education is progressively becoming more threatening for the
conventional 2 year MBA degree programmes in the US. She says “Europe
has been the leader in looking at what flexibility meant to people.”
KateSmith, Head of Admissions, at the Kellogg School of Management,
Northwestern University, assures that the school is currently
planning to attract more students for it 1 year MBA programme.
Admissions Consultant Stacy Blackman also believes that the
popularity of 1 year MBA programmes is growing exponentially as
nowadays most students apply for both 1 year and 2 year degrees. She
says, “People are just seeing that you can accomplish an MBA in one
year and it is very effective”.
Emergence
of Undergraduate Business Programmes
Another
factor directly affecting the number of students applying for full
time MBAs is the rise in business management programmes for younger
learners. As a result, most recent graduates or undergraduates are
gaining knowledge in business. Paul Danos, Dean of the Tuck School of
Business, Dartmouth College, says, “In the future we are going to
be teaching an array of programmes. Before everybody lived or died
with the applications for the MBA, now we’re getting demand at
every level”.
Growth
in Applications, Not Applicants
However,
the real doubt regarding the figures arises from the fact that MBA
aspirants now tend to make more applications. According to Admissions
Consultant Stacy Blackman, earlier applicants would apply to only 2-3
business schools; but now most candidates apply to 4-5 schools. This
results in the rising number of applications (40%), but not the
actual number of applicants.
Whether
increased applications will finally result in increased number of
students can be found out only in September-October, when students
get enrolled into the business schools.
