MBA and MS Programs: Friends or Foes? Marci Armstrong, Ph.D. Associate Dean, Graduate Programs May 21, 2013
2012 GMAT Test-Taker Volume Source: GMAC Global testing volume was greater than any year on record.
And Yet... B-School Applicants Decline for Four Years The business-school numbers are in and they aren t pretty. Applications for two-year, full-time M.B.A. programs that start this fall declined for the fourth year in a row... September 17, 2012
How could these BOTH be true? One possible explanation...
Growth in MS Programs: SMU Cox School of Business MS in Entrepreneurship MS in Accounting Quadrupled enrollment in 10 years MS in Finance 2012 launch, 25% increase in 2013 MS in Management PT to FT in 2013, 100% increase MS in Sport Management 2013 launch MS in Business Analytics 2014 launch
What do we really know about the growth of MS programs?
Percentage of programs MBA Application Volume (US only) 100% 80% 60% 40% 20% 62% 7% 32% 32% 14% 54% 43% 47% 48% 14% 11% 11% 43% 42% 41% 39% 35% 6% 4% 55% 62% 0% Full-time two-year MBA Full-time one-year Mba Part-time lockstep MBA Part-time self-paced MBA Flexible MBA Executive MBA Online distance MBA Up Flat Down Source: GMAC Application Trends Survey 2012
Percentage of programs Master s Application Volume (US only) 100% 80% 60% 36% 7% 27% 18% 18% 8% 25% 27% 10% 9% 40% 20% 57% 55% 74% 65% 64% 0% PhD Master in Management Master of Accounting Master of Finance IT Management Up Flat Down Source: GMAC Application Trends Survey 2012
Master s Enrollment Volume 100,000 75,000 50,000 25,000 0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 US Non-US Source: AACSB
Programs Receiving GMAT Scores Canada 94 MBA 60 Master s US 1,837 MBA 1,631 Master s Mexico & Latin America 31 MBA 10 Master s Europe 353 MBA 348 Master s Middle East & Africa 70 MBA 13 Master s MBA Masters Asia-Pacific 252 MBA 166 Master s 2,637 2,228 Source: GMAC 2012
2012 GMAT Test-Takers Women Age 228,971 Unique GMAT Examinees MBA 141,830 38% 26.8 Non-MBA Master s 77,782 46% 24.7 EMBA 12,867 33% 29.6 Doctoral 6,793 46% 27.8 Source: GMAC Research
MBA and MS Programs: Friends or Foes for Career Services? Admissions? Student Services?
Friends or Foes? Foes - Taking MBA jobs? - Cannibalizing the MBA program? - Fighting for limited resources? Or Friends - Revenue from Master s programs to support smaller, stronger MBA programs? - Feeders for MBA programs?
Career Services Challenges Who provides career services for MS students? - MBA Career Services Job search process is the same - Undergraduate Career Services Go where the jobs are! Pre-experience: Compete for undergraduate jobs. - From Employer s Perspective May fall through the cracks!
Career Services Challenges How have MBA recruiters responded? So far... - Not confused/not interested! Only want MBAs Not replacing MBAs with Master s graduates Concerned about MS lack of work experience/internships - Reputation is still driven by full-time MBA!
Career Services Challenges How have undergraduate business recruiters responded? So far... - Enthusiastic for some Accounting, Business Analytics - Abstract enthusiasm for others Finance, Management But MS students not invited to interview They ll want an MBA salary!
Career Services Challenges Employer development and education is essential! - MS Value Proposition - Differentiate from MBAs and Undergraduates - Explain why employers should bother formulating a Master s program recruiting plan. Extensive one-on-one visits, phone calls, emails
Admissions Challenges Are MBA and MS programs competing for the same prospective students? - Are admissions criteria different? - Appeal of shorter, less expensive, job specific programs? Are you competing for the same marketing/communications dollars? Who recruits MS students? - MBA Admissions team? - Separate MS Admissions staff?
Student Services Challenges Who manages the care/feeding of MS students? - Same MBA Student Services team? Are you competing for the same Student Services dollars (budget)? - Prep work, Orientation, social events MS programs as Feeders for MBA programs? - Do MS courses count toward MBA? - How do we market the MBA to MS graduates?
Today: Tip of the Iceberg! GMAC Annual Conference - Vancouver, June 19-21 - Managing a Balanced Portfolio of Programs MBA Career Services Global Conference - Washington, D.C., June 25-28 - Graduate Management Education: The New Normal
Your Future? Within five years Krannert will probably have three-quarters of [its] students in specialized [master s] programs and only 25% in a full-time, two-year MBA. P. Christopher Earley, Dean Krannert School of Management Purdue University
Questions?