Want to Study in the Best Schools of the World?
+91-9810814307
Select Page

MBA application at an all -time low

A few years ago, an MBA posed as a prerequisite for every student who wished to incorporate excellent business skills and aspired for a good amount of salary. However, with the passage of time, MBA has lost its charm and paved the way for specialized master’s degrees.

In the words of John Byrne, founder of Poets&Quants.com, in his Forbes article on August 20, 2019, he addressed the article as-

“It’s official: The MBA degree is in crisis”

As per Poets&Quants analysis, last year, the top 10 B-schools collectively observed a dip of roughly 3,400 M.B.A. applicants, a 5.9% falloff to 53,907 candidates versus 57,311 a year preceding. Thus, along the same lines, the analysis excavated that The University of Michigan Ross School of Business beheld the worst drop with an 8.5% decline from 3,485 to 3,188 applicants, Harvard slipped 4.5%, UC-Berkeley Haas 7.5%, Wharton 6.7%, Stanford 4.6%, and Booth 8.2%.

“For the second consecutive year, all the top ten schools witnessed significant declines in applications,” says William Boulding, dean of Duke University’s Fuqua School of Business. “I have been hearing that some schools in the top ten are in the double-digit territory so I think it is going to be worse than last year when all is said and done.

“The M.B.A. market is in dire straits right now,” admits Andrew Ainslie, dean of the University of Rochester’s Simon School of Business. Ainslie prophecies that nearly 10% to 20% of the top 100 M.B.A. programs in the U.S. are quite likely to close in the next few years, with much more prominent fallout among tier 2 and 3 schools. For instance, the University of Illinois’ Gies College of Business stepped up as the latest school to announce getting out of the full-time, on-campus M.B.A. market.

Also, in 2018, as Poets&Quants reported, 70% of surveyed full-time, two-year MBA programs in the U.S. noticed drops; the number of affected schools in 2019 was slightly higher- with 73% full-time MBA programs reported drops.

Want to know which college is the best fit for your Masters abroad?

Take Our Free Profile Evaluation Now!

Key elements that have led to the above are:

1. Pricing

Pursuing an MBA causes a heavy expenditure of up to £70,000, which is undoubtedly an expensive affair and makes it non-accessible to the masses and has lead to a shift towards fruitful yet feasible degree alternatives.

2. Mandatory Work experience constraints

Known to be a manager’s degree, it is generally advised to pursue an MBA post gathering work experience of at least 5 years which is synonymous to a stagnant career for the said period. This is so because studying MBA after gaining a good amount of work experience  would imply possession of certain analytical skills; which aids in understanding the case and practical concepts in a much clearer way than anyone who has an ordinary mental approach to such topics. Thus, it is mandatory or rather wise to be an experienced candidate when it comes to pursuing MBA.

3. Specializations

An MBA offers specialization in a field of interest towards the end of the degree which in turn fails to provide in-depth, specialized knowledge.

4. Tenure

While an MBA program would take up to 2 years, alternatives like MiM or specialized programs like MSc in Finance, MSc in International Business, MSc in Business Analytics, etc. are most fast-paced courses wherein the duration ranges from 10 months to a maximum of 2 years.

The decline in the value and demand of an MBA can partly be credited to the emergence of early-career specialized masters degrees in the field of Management, Finance, Business analytics, and many more which have persuasively countered all the above-mentioned shortcomings and have modishly blended in the industry, thus enabling graduates to kickstart their prolific careers. 

MBA alternative degree programs, in recent times, are gaining popularity across the world as they more or less help students yield the same salary as that of an MBA graduate and also unlock doors to attractive career prospects in leading industries.

According to the GMAC, application rises of up to 58% were reported by MiM programs that are based in Europe- the hub of MiM programs. Other alternatives consist of MSc in the fields of Marketing, Finance, International Business, Entrepreneurship, MS in Data Analytics, and Masters in Engineering Management.

 POPULAR MBA ALTERNATIVES

1. MSc in Finance

A master’s in Finance could roughly last from 1-2 years, depending on the area in which you prefer to study. The aim of it is to give an edge to highly skilled financial undergraduates; to develop a knack for working financially in the workplace, and to make oneself adapt thoroughly in the financial sector

Top Schools:

Salary:

The average salary for an undergraduate is more than 93000 USD. Within 3 months proceeding graduation, the employment rate could be around 98%, out of which a variety of 2 to 5 job offers are showcased in front of 63% of undergraduates.

Job Areas:

One can venture into the Financial Service Sector that includes insurance firms, pension funds, commercial banks, auditing, or mutual funds.

Top Employers:

MSc in Finance graduates are majorly employed by top employers in industries like Finance and Banking, and Consulting.

  • BCG
  • Barclays
  • Citi
  • Goldman Sachs
  • Bain & Company
  • JP Morgan
  • McKinsey
  • KPMG
  • Deloitte
  • BNP Paribas 

2. Masters in Management :

Masters in Management is a postgraduate degree that will help you be familiar with areas like Finance, Marketing, Consulting, and Entrepreneurship at quite a young age, if you want to. You read that right! Even if you have zero amount of work experience, you could opt for this course, and ace it eventually, as many students are initially quite confused, as to what they wish to pursue in their lives. Don’t worry! Stream-changing doesn’t sound so bizarre, once you start studying such a course.

Top Schools:

Salary:

Considering the average MiM Graduate who wants to enter into Consulting, you then start off with an entry-level role as an analyst, earning an average of $60-70K base salary at the age of 24-25. After 3 years, you can expect to work as an associate analyst, and by the time you’re 30, you can be a senior analyst, earning around $90-130K per year, with a 10% bonus in a good year.

Job Areas:

Top MiM Graduates also have good jobs in big companies such as Morgan Stanley, BNP Paribas, A.T Kearney, among others, which would provide them with a platform to learn, grow and impact the organization. The sky’s the limit for MiM Graduates – one can even grow to become the CEO of a company without the need to do an MBA or a Ph.D. This shows that the MiM degree is valuable and self-sufficient.

With experience, one can become the Development Manager, Advertising Manager, Sales Managers, Managing Director, and higher positions.

 

Top Employers:

Leading employers from across the globe recruit Masters in Management graduates in industries like Consulting, Finance, Technology, and several others.

Some of the top employers include-

  • Deloitte
  • PwC
  • McKinsey & Co.
  • EY
  • Deutsche Bank
  • Morgan Stanley
  • Google
  • Rocket Internet
  • Accenture
  • BC

3. Masters in Business Analytics

Master in Business Analytics is the solution to the increasing demand for complex data analysis to solve business-related problems. The program focuses on how to use relevant data to solve complex business problems and maintain that particular data. In this particular program, students are trained in Business Intelligence and familiarized with Data Analysis tools so that they can perform predictive modeling. It’s all about analyzing the past performance of the company and making a strategy on how it will perform in the future and make business decisions accordingly. For instance – Take a chain of shopping malls. They can use Business Analytics to use data to understand where to open their next branch for higher profits.

Top Schools:

Salary:

According to the US Bureau of Labor Statistics, in the next 10 years, about 96,500 new Management Analyst jobs will be created i.e. on an average of 12% of growth in the industry. The average starting salary is about USD $81,330.

Job Areas:

Graduates of business analytics programs may work as Data Scientists, Business Analysts, Marketing Data Analysts, Business Intelligence Analysts, and many other related jobs in various industries such as retail, investment banking, entertainment, and marketing.

Top Employers:

Top employers from across the globe recruit Masters in Business Analytics graduates in industries like IT/Telecoms/Technology, Consultancy, Finance, etc.

Some of the top employers include-

  • Accenture
  • Amazon
  • eBay
  • PwC
  • Microsoft
  • EY
  • Bank of America Merrill Lynch
  • Salesforce
  • JP Morgan Chase
  • Société Générale

4. Masters in Engineering Management

The Masters in Engineering Management program is intended for engineering graduates to build a link between engineering, management, and technology. This course is specially designed to equip engineers with the knowledge of optimizing and managing engineering processes using the varied tool of business management. The degree is popular among engineering graduates who aspire to elevate their careers towards a higher managerial role. A MEM degree, depending on the choice of university, can roughly be pursued within a span of 12 to 15 months.

Top Schools:

Salary:

Masters in Engineering Management graduates from top schools mentioned above fetch a salary of approximately $90,000 annually.

Job Areas:

Post graduating several job roles such as Operations/Supply chain manager, systems engineer, product manager, consultant, and data analyst are widely available for graduates to settle into.

Top Employers:

Masters in Engineering Management graduates are majorly employed in industries like Finance and Banking, Consulting, Aerospace, Defense, and other tech industries

Top Employers include-

  • IBM
  • Bloomberg
  • Deloitte
  • Apple
  • Amazon
  • Goldman Sachs
  • Intel
  • Microsoft

Other Specialized Masters

Specialized master’s degrees are best suited for students who aspire to establish a solid grounding in a specific niche like Marketing, Strategy, and the like. Consequently, a specialized master’s degree also enables graduates to fetch attractive salary packages much higher than people who simply have an undergraduate or MBA degree. 

Here are some of the specialized master’s degrees you can opt for-

 

All facts and figures considered, in recent times, the above-listed MBA alternatives and specialized master’s degrees are on an upswing and make up the right call for individuals seeking functional knowledge in a specific industry niche. Graduates of these specialized masters are also highly sought by top employers all across the globe.  

In essence, the MBA program, even from top B-schools, appears to fade out from the frame of yielding a prolific career path.