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

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© CarringtonCrisp February 2013

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Reproduction in whole or part prohibited without prior permission of the authors.

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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

Facebook

MBAworld.com

Economist.com

Masterstudies.com

BusinessWeek.com

topmba.com

worldclassmba.com

Google

Yahoo

MBA.com

LinkedIn

Twitter

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.

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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

info@carringtoncrisp.com or by telephone on +44 20 7229 7373.

CarringtonCrisp

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The Association of Business Schools

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European Foundation for

Management Development

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Telephone: + 32 (0)2 629 0810

Email: info@efmd.org

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