Choosing the Business Graduate Degree for You

By Christophe Coutat

Published: September 26, 2012 (Issue # 1728)

FOR SPT Christophe Coutat.

Demand for better and more qualified business professionals has become acute during the last four years, and the pay-off remains excellent. Investing in your career now could be the right move in the long run.

MBA or MIM?

Many Russian students look into options to continue their education abroad with a graduate degree. For those set on a career in business management, there are two obvious choices that should be made: A Masters in Management (MIM) or Master of Business Administration (MBA). These two might look like mirror images of each other, yet there are essential differences between them that must be considered before plunging back into the world of practically-oriented academia.

Work experience is the key when it comes to making a choice between MIM and an MBA. Generally MBA candidates have more “clocked work hours,” with three or more years of extensive work experience. For the Masters in Management, work experience is not essential, and in fact the majority of candidates have very little practical experience, sometime no more than a year.

In a nutshell, the MBA and the MIM are aimed at two different target groups — the former for professionals, the latter for graduates.

Overseas Temptation

Despite higher tuition fees and stricter requirements, the MBA remains a top-demand degree for Russian candidates. Data by Advent Group — organizer of the Access MBA & Masters events held twice per year in Moscow and St. Petersburg — shows that almost 60 percent of event attendees are ready to spend more than 50,000 euros on obtaining an MBA degree. According to data compiled by Advent this spring, more than 40 percent of Russian candidates preferred to do their MBA in the U.S. or the U.K., while only 8 percent targeted local business schools. Most candidates favor programs requiring full-time participation and are eager to relocate abroad for their studies.

Competitive Edge

Some would argue that going back to university at a time when the economy is suffering is nothing short of an escape. Though this may be the case for some, the motivation of most MBA candidates is a great deal less “escapist.” Today’s MBA graduates are still very much in demand. Prospective MBA students have been knocking on the doors of international business schools, continuing a trend that started in 2008. The pay-off has been quite tangible. “Recent MBA participants have gone on to work for over 300 companies in 60 countries,” said Jake Cohen, dean of the MBA program at INSEAD.

Going Global

Most MBA programs these days try to be recession-proof and offer their students an open-platform experience. Many of the respectable business schools, for example, have a variety of exchange programs that students can take and thus gain hands-on experience by learning about the Asian or the American economy from the source, rather than in a classroom with a lecturer. Many top schools now have multiple campuses. Duke University has picked up on the current global trend and offers students the chance to study in different parts of the world, including St. Petersburg and New Delhi. By being immersed in some of the world’s most important economic regions, students get a direct experience of the market and build connections locally. Thus, even if the crisis continues in Europe and the U.S., MBA graduates can always pack their things and look for a job in Asia or Brazil where the economy is booming. Furthermore, instability for the Western economies does not mean that Russia will follow the same trend. Many Russian managers see a globally recognized MBA degree as a good opportunity to diversify their profile and make a global network of business partners.

Recouping the Cost

A new survey by the Graduate Management Admission Council (GMAC), a global non-profit organization of leading graduate business schools, shows that alumni from graduate management programs recoup one third of the financial investment in their graduate degree within the first year after graduation and 100 percent of their investment after four years. The Alumni Perspectives Survey discovered that within ten years of graduation, average alumni nearly doubled their return on investment. The study conducted in late 2011 includes responses from 4,135 alumni, who graduated from 2000 through 2011. It showed that 86 percent of the 2011 graduates were employed after graduation. Some 82 percent from the class of 2011 said their salary met or exceeded their expectations.

Tough Decisions

Studying abroad is a major investment in time and money, and for many students the biggest educational expense that they will make in their lives.

There are more than 3,000 MBA and 7,000 Master programs in existence worldwide. Different types are tailored to meet a diverse range of student needs: Full-time, part-time (evenings or weekends), Executive MBA, online MBA, specialized MBA, and others.

Candidates should evaluate a program by three different criteria: The quality of its academic specialization, its educational environment and its career placement program. A school’s alumni network is another important factor, not only because it gives an idea of the level of the program; it is also a vital source of contacts for future employment. Another reliable method is to look at school accreditations, of which EQUIS, AMBA, and AACSB have the best reputation internationally. 

One of the best ways to choose the right program is to speak with school representatives and get first-hand information on the specific details of each MBA or MIM.

Christophe Coutat is CEO of Access MBA. Access MBA and Access Masters events give candidates the opportunity to meet admissions directors of global business schools and discuss their development plans in customized one-to-one meetings. The next event will be held in St. Petersburg on Oct. 6 at Astoria Hotel.