Three uncomplicated letters with great meaning. In the business world, an MBA is now considered to be a very valued credential. Although obtaining an MBA may seem like a lofty goal, it is just another master’s degree that you may work toward and attain. In the modern digital age, you can even pursue an MBA entirely online. In this post, we’ll dissect the elements of MBAs and clear up any misunderstandings to help you decide if getting one is the best professional decision of your life.
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What is an MBA?
A postgraduate business degree known as an MBA is now regarded as a sign of success. What does it mean to be successful exactly? Naturally, getting to the top of the corporate ladder is one metric. Studies reveal that 25% of CEOs at FTSE 100 companies—the largest in the UK—have an MBA. When you compare that number to the other degrees that the same CEOs have, you’ll see that only 8% of them have a PhD and only 18% have an undergraduate degree from Cambridge or Oxford.
Does this imply that an Oxbridge degree or a PhD are inferior to an MBA? An MBA is the ultimate status symbol in business, though perhaps not if your career path is in academia, politics, or the civil service—just a few of the typical occupations for PhD and Oxbridge grads.
Consider a few of the most well-known brands in the industry. Three people with MBAs are Melinda Gates, the founder of the Bill & Melinda Gates Foundation, Tim Cook, the co-founder of Apple, and Larry Page, the creator of Google. Sir Jim Ratcliffe, CEO of Ineos in the UK, is another to add to that distinguished list.
But beyond significantly enhancing your clout and reputation, an MBA will be sure to give you a comprehensive understanding of how managing a business works. Everything from how to manage employees and resources, analyse accounting sheets, develop entrepreneurial skills and structure an organisation are covered in an MBA degree.
What does MBA stand for?
The acronym for Master of Business Administration is MBA. Harvard University created the MBA degree, which became official in 1908. After starting on that esteemed program, the MBA soon spread throughout the world, with hundreds of universities offering the degree today.
Employers find it striking when a CV has those three strong letters since they show a serious commitment to professional growth and indicate that the applicant has the abilities to lead an entire organization. MBA is, in essence, a symbol of leadership.Apart from considerably augmenting your influence and position, an MBA will guarantee that you have a thorough comprehension of the operations of business management.
How does an MBA work?
Postgraduate courses comprise MBAs. This means that obtaining an MBA normally requires having previously earned an undergraduate degree.
An MBA has many of the same practical requirements as other academic pursuits. You will participate in online or on-campus seminars and classes. The standard methods of assessment will apply, including written assignments, tests, essays, and presentations (the latter of which is a crucial business skill).
Group projects are a common format for assignments that evaluate your capacity to work with others and assume different responsibilities in a team, especially leading, delegating, and decision-making. Think of it as The Apprentice with less drama.
As part of the application process, many universities that offer MBA programs require applicants to take the Graduate Management Admission Test, or GMAT. The GMAT assesses your verbal reasoning, analytics, and math skills.
Modules in MBA curricula that aim to build competence in fundamental business domains like leadership are common. There will, however, also be classes covering more specialized topics. You might be able to choose your own specializations for a course, or the classes might be required.
The following modules are typically included in core, supplemental, and specialist class options for Master of Business Administration programs from a wide variety of universities, according to our analysis of general (non-specialist) courses.
What can you do with an MBA?
While many business school alumni go on to become CEOs, COOs or managing directors of some of the world’s highest-grossing companies, you can utilise your MBA in so many professional fields.
The skills you pick up during an MBA prepare you for high-pressure, high-impact jobs. You could become a senior civil servant leading a government department. You could project manage the transformation of an NHS trust or healthcare provider. You could turn around the fortunes of an SME or tech start-up as a consultant. Or you could work in management consultancy and help a local authority streamline its operations, workforce and organisational delivery.
If you are a true entrepreneur, you can even use the skills you learn to start your own business. All companies start somewhere, usually with a dose of bravery added to solid business knowledge.
Who should take an MBA?
- People with passion – An MBA will be ideal for you if you have a strong interest in business and want to understand what propels revenue, growth, efficiency, and high organizational production.
- Prior academic achievement – You will usually need to have studied a degree at undergraduate level, before embarking on an MBA. This is not always an essential requirement for being accepted onto a course – just like with other masters degrees, some institutions look at other factors like your age, professional experience and achievements – but it will help if you have an understanding of what higher education involves. The average age range of MBA students is between 27-30 years old, but many people take MBAs in their 40s or even 50s.
- Business knowledge and experience – Gaining knowledge of the foundations of business would also be beneficial. A few years of experience working in the corporate world is preferred by several universities that offer MBA programs. This is so they can verify that you are familiar with business ideas. For instance, you will need three years if you have a bachelor’s degree and five years or more of experience working in management to apply for FutureLearn’s Executive MBA course, which is delivered by the Ducere Global Business School.
- Financial commitment – An MBA requires a substantial financial commitment, with costs varying based on the university and program style. The above-mentioned one-year Executive MBA program costs, roughly speaking, £13,300. A full-time MBA at Imperial College presently costs £67,500 elsewhere. In the UK, fees can range from approximately £5,000 to £100,000 in total. Keep in mind that you can apply for numerous grants and scholarships to help pay for your education. If you already work for a large company and they see potential in you, they may even pay for your MBA.
Is an MBA worth it?
Even while the price of an MBA may seem hefty, it’s nothing compared to what you can make with one. Money, however, is not everything. Job security and contentment are crucial, as is the amazing boost to your confidence and self-worth that an MBA will provide, both within and outside of the office.
The Graduate Management Admission Council (GMAC) polled 4,600 graduates, and 90% of them stated their MBA program had been worthwhile. The majority of them also stated that an MBA had “improved their professional, personal, and financial situation.”
- Earnings boost
The average income of MBA graduates from all but two of the top 100 business schools in the Financial Times rankings for 2023 is more than $100,000. The highest paid MBA grads from Stanford University make an astounding $248,699 annually. For those of you in the UK, a little closer to home, the MBA class at Birmingham Business School earns £79,690. You should be able to pay it off, hence it doesn’t matter how much you have to spend.
A job is practically a given if you have an MBA. When GMAC asked recruiters for corporate organizations, a staggering 95% of them stated they anticipate hiring MBA grads this year. Prominent university graduates will be in high demand. 96% of NYU’s 2021 Stern Business School MBA program graduates found employment three months after graduation, which is another astounding statistic.
Accomplishment brings incredible benefits to our mental health and self-esteem, as well as our wallets. This can have lifelong knock-on effects that make an MBA well worth the effort and outlay.
How long is an MBA?
There are several formats for MBA courses. Various educational establishments design their curricula in accordance with the requirements and anticipations of their pupils. While some provide part-time courses that can last up to two years, others offer full-time courses that must be completed in a full year.
Types of MBA
MBAs are offered in various packages. Certain programs aim to provide you with a thorough grasp of business as a whole, while others focus on the industry or job type you have selected.
- General Management MBA – You will acquire fundamental managerial abilities that can be used in any kind of organization.
Specialist MBA – Focus on any business-related field that is currently in demand, such as consulting, business analysis, chief marketing officer, or any other sector.
- Executive MBA –These demanding courses are designed for individuals who are already employed in the corporate world and want to advance to C-suite positions.
- Global MBA – Find out what it’s like to run a company in another nation or for multinational corporations operating throughout the world.
- Online MBA – Nowadays, a lot of schools have the option to finish an MBA entirely online. Ideal for those leading hectic lives, they need a great deal of self-motivation.
Since its inception at Harvard, the Master of Business Administration program has experienced exponential growth in stature. As with any courses in higher education, you have to consider the potential return on investment.But it’s not enough to just consider that return in monetary terms. Consider the impact you can have on the world if you take on a leadership role.
Consider some of the most influential tech giants, business magnates, entrepreneurs, and government architects in the globe. Consider your own sense of worth. Imagine your reaction when you see those three enormous letters on your resume. Check out our selection of online business administration degrees from prestigious universities if you’re prepared to take your profession to the next level.