When you make an investment you ought to make sure that you put your money in the correct place be it equity, bonds, deposits or gold. Likewise, a MBA is probably one of the biggest investments that you will make in your life. So it is important that you choose the MBA degree which suits you the most. In this blog we will do a deep dive into the various types of MBA degrees offered by universities around the globe.
1. Full Time – The Full time MBA program is the most sought after MBA program at any university. The Full time program can be split into:-
a) Two year MBA – The two year MBA program still remains the most popular MBA program of the world. The two-year course is offered by most American b-schools and is targeted at candidates who typically have about 4-6 years of work experience and are looking for a change in their career path. This format is suited for those who do not have a bachelor’s degree in business, hence in the first year, emphasis is laid on the fundamental courses in business, such as operations, finance, strategy and marketing. The second year offers a number of electives, enabling students to practice and develop expertise in their core areas. Some b-schools offer specializations/ concentrations, which allow students to deepen their knowledge in 1-2 areas such as marketing, strategy finance, supply chain etc. Areas-of-emphasis help MBA students to build indepth expertise in a particular field such as healthcare, real estate, entrepreneurship, energy etc. A few other programs like Stanford, Harvard, Ross and Yale offer no specializations but have a broad base of electives for applicants to select from.
A key component of the two-year MBA is the mandatory internship between the first and the second year. The summer internship offers students the opportunity to explore a new industry or job function, and in most cases a successful internship transforms into a full time job offer with the same firm. The two year program also students to work in a team and offers excellent opportunity to bond with classmates working with them upon projects and presentations. The co-curricular activities, social events, international treks and the massive networking opportunities make the two year program a sure winner.
However, there are certain detriments associated with the two year program. The most important is cost, amounting to more than $250000, if you calculate the entire opportunity cost i.e. lost income on your job, interest on student loans, tuition fees and living expenses.
b) One Year MBA –
The one year MBA program is offered by more of European B-schools and is ideally suited for more experienced candidates who are not looking for a major career change. The one year program has higher academic rigor than the two year course, since it is basically the two year course compressed into one year.
Some of the known one year MBAs are offered by Kellogg, Cornell, Emory and USC Marshall in the US. Most candidates in these programs have an average experience of more than five years and go to b-school to learn the soft skills and leadership skills needed to take up senior management roles. Core courses may be by-passed as in the case of Kellogg or they may be taught over the summer in a short three months, after which students join the second year students and are free to take any electives or majors. Candidates with previous business degrees or certifications like CPA, CFA etc. are preferred. These programs are suitable for candidates who are not eyeing a radical change in their post MBA roles and do not need an internship to get their intended positions.
In Europe, INSEAD, IMD, IE Business School, Oxford’s Said and Cambridge’s Judge School of Business are known to offer one year MBAs. In India, ISB and the full time executive courses by the IIMs fall under this category. A difference in these programs is that they do offer internships or projects which are necessary to make a career transition.
The one year program leads to a massive savings on tuition fees and living expenses. Since the one year program graduates earn almost the same salary as their counterparts in the two year program, this translates to a better return on investment.
The downsides to the one year program are that it is not suited for those looking for a change in career. The one year program is too compact to bond with classmates, do an internship at a consultancy/investment bank or look for a job.
2. Part Time- A part time MBA is ideally suited for candidates who are already successful professionals in their respective functions and are looking to boost their careers, while staying at the same organization. These candidates cannot leave their full time jobs to pursue a full time degree. A part-time MBA can be completed in more than three years, and normally needs employer validation, since you will be attending classes either in the evenings or on the weekends as well as spending about 15 hours each week dedicated to preparation and studying. Almost all top US programs offer a part-time MBA; it is advisable to choose a school, which is in the same city where you live.
3. Executive MBA – An executive MBA is targeted at candidates who are already senior or middle level managers in their respective organizations and are looking for an academic program to fast track their careers to get better pay and job titles. The EMBA program requires a minimum of 5-7 years of work experience and the average age of applicants is normally in the early to late thirties. As with the part-time program, candidates can continue their full time jobs, although they need to devote about 10 hours a week on coursework and an additional 15-20 hours a week for studying/ reports etc. Classes are held every few weeks during the weekend. EMBA’s are usually more expensive than traditional MBA’s and hence most candidates pursuing an EMBA get partial or full aid from their employer. The EMBA also offers excellent networking opportunities as your classmates will come from a variety of industries, functions and nationalities with very rich managerial experience in their respective fields. You need to select a b-school that suits your function or industry in order to get the most out of the EMBA. Also remember that you will have a hard time juggling between work, coursework and family, hence you need to evaluate your options and decide the right time to complete the program.
4. Global MBA Programs – Each day the world is becoming a smaller place to live in and in this age of multi nationals, companies are looking for opportunities to expand their markets across continents. Needless to say they are looking for individuals who can seamlessly work in a number of different countries. This has consecutively led to an increase in the number of Global MBA programs, notably the Ross Global MBA, the Essec Global MBA and the Global Executive MBA offered by Darden. The most important differential for a GMBA is diversity, from student bodies to faculty, it encompasses multiple nationalities. These programs lay special emphasis on International Business and provide them a flavor of different economies, specially the BRICS economies, because companies have realized that what works in North America may not work in exactly the same way in India. These programs are truly global in nature, since they are offered in partnership with other universities around the globe or different campuses of the same university. As a result there are several exchange programs, which enable students to study in three continents over two years, providing a truly global experience. These exchange programs help them to get a taste of the socio-political difference between different countries and get them tuned to virtually work in any part of the globe.