The MBA is the most widely accepted graduate management degree in the world. Both employers and students are enamored with it. Each year, tens of thousands of ambitious professionals apply to various MBA programs.
The MBA is a generalist degree that provides you with core management knowledge. As a result, you’ll gain a comprehensive understanding of business, including marketing, finance, and accounting, while also gaining essential soft skills and leadership abilities.
CEOs of large multinational corporations, prosperous business owners, and previous presidents are just a few notable MBA grads. They all hold MBAs: George W. Bush, Michael Bloomberg, Tim Cook, Satya Nadella, Sundar Pichai, and Sheryl Sandberg.
What then can you accomplish with an MBA? What varieties of MBA programs are offered? And does an MBA pay off?
What does MBA stand for? MBA definition
Master of Business Administration, or MBA.
The MBA is the first graduate degree provided by business schools worldwide and was first offered by Harvard University Graduate School of Administration (now Harvard Business School) in 1908.
Employers will take notice of you more if they see “MBA” on your CV, but the degree’s genuine value extends beyond its three letters on a page. An MBA will improve your career and compensation possibilities while also enhancing your professional network and business expertise.
Who is an MBA degree for?
A normal MBA student doesn’t exist. The typical MBA class nowadays is made up of students from a wide range of professional backgrounds, whereas previously MBA students pursued jobs in finance or consulting.
The 2022 Harvard MBA class is comprised of students from 69 different countries. Students who identify as US minorities or women make up 44% of the student body. In addition to banking and consulting, students also come from the manufacturing, healthcare, nonprofit, media, and technology industries.
Students in the MBA program at INSEAD represent 88 different nations and have educational backgrounds spanning from business and engineering to the arts and political sciences.
The Graduate Management Admission CouncilTM (GMACTM) reports that the salary increase, promotion to senior positions, people management, and working abroad are the top career motivations for prospective MBA students. These advantages are just a few of the many benefits associated with earning an MBA.
The MBA is for anybody, regardless of experience, who wants to develop management skills and enhance their career, whether they want to establish their own business, rise within their existing organization, move functions, industries, locations, or all three at once.
According to Virginie Fougea, global director of admissions and financial aid at INSEAD, “an MBA is not just designed to equip students for their next job after graduation; it’s a life changing experience that enables students to make career changes five, 10, and 15 years post-MBA thanks to the skills they learn and the network that lasts long after graduation.”
Types of MBA programs
Although the typical full-time MBA program is still a popular choice, there are now many different MBA programs available. Business schools provide a variety of MBA programs that are tailored to distinct student profiles.
Full-time MBA
For students who are just starting their careers or who are in the middle of one and are considering a total career shift, the full-time MBA program provides the first immersive on-campus experience. The most well-known two-year full-time MBA program is provided by the exclusive M7 Business Schools and is most popular in the United States.
Although full-time MBAs exist in a number of formats, the one-year MBA is particularly well-liked in Europe and Asia since it offers an expedited experience and less time away from the office. While London Business School offers multiple departure points after 15, 18, or 21 months of study, INSEAD’s MBA may be finished in just 10 months.
Part-time MBA
You may work and study while pursuing a part-time MBA, saving you the potential cost of attending a full-time school as well as your pay. Part-time MBA courses sometimes combine online and in-person instruction, taking place in the evenings, on weekends, or in flexible modular forms.
Executive MBA
The Executive MBA is a part-time MBA program designed for seasoned executives with more than 10 years of professional experience. Senior leaders are brought together by EMBA programs to upgrade their skills, network, and share information while bringing their work-related initiatives into the classroom.
Online MBA
You can continue working while pursuing a part-time, incredibly flexible MBA using the online format. You can do this while relaxing at home. Although there are more and more MBA programs that are entirely online, most online MBA programs still include a residential component (1-2 weeks). You may also pay per module and schedule your own study time for several online MBA programs. This implies that while the average length of an online MBA program is two years, there are some exceptions.
MBA specializations
Despite being a generalist degree, the MBA allows you to specialize in topics that interest you. MBAs with a variety of specialties are available from business schools, including those in entrepreneurship, business analytics, healthcare management, finance, marketing, and human resources. These often combine management-related core MBA courses with a specialty track of classes geared toward your area of interest.
International graduates from STEM MBA schools are eligible to stay and work in the US for up to three years without the need for an H-1B visa. STEM MBA programs in the US provide concentrations that include STEM themes.
At most business schools, you may also pursue dual degrees by combining your MBA with a specific business master’s degree or through cross-university programs like the JD MBA, which are offered in conjunction by law and business schools.
MBA courses and curriculum
Typically, the MBA program is split into two sections:
General management’s foundations are covered in core MBA courses. MBA programs often have the following core classes:
- Accounting
- Business Communication
- Business Ethics
- Business Strategy
- Data Analytics
- Economics
- Finance
- Leadership
- Marketing
- Operations
You can choose the elective MBA courses that best align with your unique professional objectives. Typically, before selecting electives for the second part of the program, you study the core MBA course.
A wide range of optional courses are available, encompassing anything from cutting-edge subjects like artificial intelligence and blockchain to traditional subjects like HR management, nonprofit management, entrepreneurship, sustainability, and CSR.
The case study technique, made popular by Harvard Corporate School, is used to teach the majority of MBA courses. In this approach, students evaluate case studies of business achievements or failures before discussing them in class.
Prior to implementing your knowledge in group projects or even actual consulting projects, MBA students learn business theory. You may fully immerse yourself in business school life outside of the classroom by participating in MBA clubs, extracurricular activities, networking opportunities, conferences, competitions, corporate visits, and thrilling overseas immersions.
What’s it like to study for an MBA?
“The irony of the MBA is that it’s typically pursued in an effort to stand out, but during the experience your interaction with so many interesting, driven, and stimulating people is both humbling and inspiring,” says Pascal Michels, former MBA student and director of MBA admissions at IESE Business School, who is now a director and consultant at MBA admissions consulting firm Menlo Coaching.
Beyond the academics, an MBA is truly about the people you meet. A lot of personal growth is sparked by the friendships made during contentious class debates and late-night team meetings.
MBA jobs: What can you do with an MBA?
What jobs can you get with an MBA? everything you set your mind to, basically. You may become ready for work in many different sectors and positions with an MBA. Common MBA positions include:
- Finance Manager
- Financial Advisor
- HR Manager
- Investment Banker
- IT Manager
- Management Analyst
- Management Consultant
- Marketing Manager
- Operations Manager
Employers enjoy employing MBA grads, and many actively seek candidates on campuses. Despite the effects of COVID-19, 91 percent of international businesses want to hire MBAs in 2021, according to GMAC’s Corporate Recruiters Survey.
More MBA graduates are working for global corporations and startups in sectors like healthcare and NGOs, and many of them launch their own enterprises. Of Stanford Graduate School of Business graduates in 2020, 18% committed themselves to entrepreneurship and started their own businesses.
The Big Three management consulting firms, Bain, BCG, and McKinsey; Big Tech companies, such as Amazon, Google, and Microsoft; and accountancy firms, such as Accenture, Deloitte, and EY, are among the employers who recruit the most MBAs.
MBA graduates advance to senior, executive-level positions several years after graduation. The CEOs of Apple, JP Morgan, Microsoft, and Walmart are among the many Fortune 500 business leaders who hold MBAs.
According to Keith Bevans, global head of consultant recruiting at Bain & Company, “when we hire an MBA graduate, the global perspective and diversity of experiences they have allows them to plug right into Bain, and any of our capability areas, and start helping our clients succeed in their industries.”
MBA salary: What can you earn?
Your chances of earning more money will improve if you earn an MBA. After graduating, MBA candidates from the nation’s best business schools may anticipate beginning salaries between US$120k and US$160k on average in addition to sizable signing and performance incentives.
MBA earnings can rise by well over 100% three years after graduation. Three years after receiving their MBAs, students’ earnings climbed by an average of more than 118 percent among the top 10 MBA programs as determined by the Financial Times.
The possibilities for your typical MBA pay naturally rely on your profession, your position, and the business school you attend. The most lucrative MBA positions are often found in consulting or finance. After graduation, consulting salaries for MBA graduates might exceed $170,000 USD.
After graduation, the average MBA income in the US is around US$107k, however location significantly affects compensation. Using our interactive calculator, you can calculate your post-MBA pay based on your degree of expertise and sector.
MBA cost: Is an MBA worth it?
What is the price of an MBA? One of the best full-time MBA programs in the world costs an average of US$168k to attend, according to the BusinessBecause Cost of MBA Report 2020. The cost of tuition, supplementary fees, housing expenses, and health insurance are all included in this sum.
Depending on where you go to school, an MBA costs drastically different amounts. A top-ranked, full-time MBA program in the US typically costs US$213k, compared to US$98k in Asia.
According to BusinessBecause, tuition costs for the best full-time MBA schools range from US$49k to over US$158k.
Additionally, there are many more full-time MBA schools that are more reasonably priced and offer comparable learning and results.
Two of the most cheap MBA programs in the UK are offered by Nottingham Business School ($29k for foreign students) and Aston Business School ($36k).
Living at home while enrolled in a Part-time MBA, Online MBA, or Executive MBA program will save you money since you won’t have to pay additional fees for housing, and you won’t lose out on income.
Additionally, business schools provide a range of MBA scholarships and financial aid to assist you in paying your tuition, so—especially for full-time MBAs—you’ll seldom pay the whole cost of tuition for your MBA.
You shouldn’t allow the cost of an MBA discourage you from obtaining one when evaluating your return on investment because of these advantages as well as the increase in post-MBA earnings, abilities, and network (MBA ROI). An MBA is well worth it if you can locate the ideal school that will help you achieve your professional and personal objectives.
MBA admissions: Applying for an MBA
What criteria are typically required for MBA admission? The majority of business schools need a bachelor’s degree or an equivalent certification as well as a certain amount of job experience.
Before applying by a deadline for the MBA application round, you must prepare your application materials, including your CV, essays, letters of reference, and GMAT. If you are chosen, you will move on to the interview stage before receiving a formal offer of acceptance.
MBA admission rates at top-ranked MBA schools as low as 8.9% at Stanford, but most top-tier institutions admit 20-to-60% of students, according to BusinessBecause, show that applying to business school may be tough.
Business schools use the GMAT exam as a crucial performance indicator, but they also take into account your overall profile and application as a whole.
Strong candidates have a proclivity for taking the lead in previous and present undertakings, a hunger for analysis and a keen interest in society. According to Chad Losee, the MBA admissions director at Harvard Business School, “we aim to get to know each candidate and try to understand how s/he will contribute in our classes and community.
It’s time to go forward and submit an application now that you are aware of what an MBA is and how it may advance your career. You’ll need to conduct study to locate the business school that best suits your personality, areas of interest, and professional ambitions. The MBA application process demands organization and tenacity.