[Word of Advice] Realistic Expectations for your MBA

[MarkHsu]

Hi All,

I know the discussion here is mostly about MBA admissions--which school is better, what GMAT score is needed, how to get in, etc.

However, in this economic environment, I think it's more important than ever to really identify why you need an MBA and ask yourself if an MBA is even necessary at all. Contrary to what most applicants think, an MBA is not the cure-all for your career aspirations.

The job market for MBAs in essentially dead. This is true in NY, London and HK.

I bring up this point because I know that many Taiwanese MBA graduates in the class of 2008 are still struggling to find full-time employment and the job prospect for the class is actually looking worse. I am not saying that you shouldn't apply to an MBA program, but that you should think hard about your motives and objectives.

Anyway, good luck all. Just wanted to let you know what I am seeing & hearing from my end.

Mark

[ccuturandot]

Mark 説到了很多重點......當然 很多人出國的想法也是不外乎靠MBA翻個身 ( but not all )
但是 最後到來, 卻發現事實不是那嚜一回事. 就算在景氣好的時候, 去IB, Consulting firm 的
"純"台灣人 , 只佔了整體MBA留學生的少數....今年美國景氣, 能找到工作的人更是屈指可數

我身邊有很多唸了MBA 的朋友, 背了大概 15 萬美金的負債.....他們跟我說, 他們還得很辛苦
扣完稅, 還貸款, 房租, 可支配所得所剩無幾. 如何去 leverage 你的工作經驗+ MBA experience
進而創造出最大的價值....這可能是所有MBA申請者應該去思考的方向 ....現在在美國找到工作的MBA
幾乎都有MBA專業之外的另一項專長( ex , CPA , CS major , enguineering.....)
此外, 這次金融危機後, 政府管制的呼聲高起, 以往金融業的繁景 在短期內應該不會再見....

希望拋磚引玉, 能提供給準備出國的朋友們, 一個參考 !

[MarkHsu]

Good article from Business Week, please pay special attention to the section about international students (Red)

Four Truths About Today's MBA
With the economic crunch, some old ideas about the MBA as a passport to success have crumbled. Here are four things you can count on
By Alysa Teichman

Until this year, you could say with near certainty that an MBA from a well-respected business school was a ticket to a good job and a respectable salary.

But with the financial crisis, a lot of those certainties are gone. Looking at the business school landscape, however, you can say at least four things with confidence.

1. You will face more competition for slots

Business schools aren't increasing their class sizes to accommodate the anticipated surge in applications. This can only mean that in a year when more people are applying to business school, admissions will be more competitive and a smaller percentage of applicants will get in.

The Graduate Management Admission Council (GMAC) reports a jump of more than 11% in the number of GMAT tests taken this September compared with a year earlier. And schools report an increase in interest—both at information sessions and in online discussion forums and blogs.

For those students who think they can bank on getting into a middle-tier school, think again. If getting in has become harder across the board, students will likely apply to more schools to increase their chances. With a fatter stack of applications to choose from, middle-tier schools could shock prospective students with rejection letters they didn't expect.

One silver lining: For top students, getting into the elite business schools may not be any harder. After all, says Peter Johnson, the executive director of admissions at Berkeley's Haas School of Business' full-time MBA program, "An increase in the number of applicants does not mean an increase in the quality."

2. International students are going to find loans tough

[color=#FFFF00]International students face a new obstacle after the rigorous process of getting into a B-school has long passed. With the credit crunch, student loan programs are tightening up or disappearing entirely. For instance, this fall, Citibank (C) cancelled its CitiAssist loan program. That means many international students are out of luck unless they have lived in the U.S. or have a co-signer here.

The cutbacks have some administrators stumped. Rosemaria Martinelli, admissions director of the University of Chicago's Graduate School of Business, says that fixes to the problem are only short term and the school is still searching for a solution. Still, Martinelli remains committed to a diverse student body.

Besides the near impossibility of getting loans, international students face difficulties after they get their degrees. In a weak market, where companies have the luxury of sifting through more applicants, international students may find it even harder to obtain scarce H1-B work visas.

The end result: the continuation of a trend in which more and more students are choosing to go to business school in their home countries. [/color]

3. Quitting a job is risky

People in steady, well-paying jobs have always had to weigh the benefits of quitting to attend business school. This is especially true in a down economy, when no one knows what the job market will look like in two years. Viable options now include either putting off the MBA or joining a part-time program while staying employed.

According to Judith Hodara, admissions director at the University of Pennsylvania's Wharton School, prospective students most frequently ask about opportunities for summer internships and post-graduation employment and are both "nervous" and "concerned."

Traditionally, students who quit jobs at the start of a recession graduate with an MBA when the economy is in an upswing. But no one is able to predict with certainty how long this recession will last.

Erin Nickelsburg, admissions director at the University of Wisconsin-Madison's School of Business, said that predictors of the "opportunity cost" of going to business school in a downturn have been skewed by the apparent end of big salaries and juicy bonuses in investment banking.

Still, Nickelsburg warns that opportunities could be missed, as well. "Not making an investment in yourself can turn around and haunt you when the economy goes back up," she said.

4. The learning is still valuable

While the return on investment on an MBA is still up in the air, no one is disputing that what you learn in business school will be extremely valuable as the economy recovers. Case studies have new meaning, now that executives face tougher decisions and large-scale business problems.

According to Chicago's Martinelli, now is a "cool time to study this, learn from this position, and figure out how you can add value"—meaning it's a great time to be able to learn about not just hypothetical but real issues.

Still, students may need to adjust their career goals and possibly their salary expectations. "This is a good time to park yourself in an MBA program and build up your portfolio of intellectual capital," says David Wilson, GMAC's president. "Graduates will emerge in two years or so and be in a different market."

[WillWillWill]

以前看過一個訪問
雅虎的鄒開蓮說 她那時候已經有一個BU的傳播碩士在奧美工作
毅然決定出國再拿一個MBA
從西北拿MBA回來後
進入寶僑
沒幾個月就受不了辭職
選擇進入自己喜歡的產業華納唱片公司

不過談到薪水她說
"我眼珠都快掉出來了，想說我花了幾百萬去念書，回來工作薪水頂多加個兩萬，到底要還到什麼時候...."
不過她相信自己的價值
有一天一切一定會回本

現在的她肯定是大大回本了
可能有人說她本來就優秀
是特例

不過我想如果要看5年8年
可能沒有進IB 或consulting 很難有好的ROI

如果將眼光拉長到
20~30年的職場生涯
我想好的MBA program 應該還是值得投資的
只是要在畢業後初期有合理的預期

[MarkHsu]

I'd say for the vast majority, the payoff falls short of expectations

Are there exceptions? Yes, of course. But my point is that for the vast majority of people who attend business school, they "regress towards the mean" in terms of career growth.