GMAC Reports

To understand the countries that are popular among 2012 Graduate Business and Master’s Degree aspirants, we compared the GMAT score-sending pattern in 2012 with the 2008 trends. Remember, 2008 was a challenging year, and applicants adopted different strategies depending on the industry that they belonged. Finance sector was severely impacted, and applicants with interest to pursue Masters in Finance, Accounting or specializing in Finance after MBA, chose to apply to MBA program in 2008 as a hedge against poor market condition for Finance professionals.

The top Six Destinations for Graduate and Master’s Degree Programs remained the same

1. United States
2. United Kingdom
3. Canada
4. India
5. France
6. Singapore

The major changes that happened in the four years have been the bottom four in the top 10 list.  

7. Hong Kong (8)
8. Netherlands (10)
9. Spain (9)
10. Germany (NA)

For 2012, Germany entered the top 10 list. Netherlands saw increase in demand for its Master’s program with the ranking improving from 10th in 2008 to 8th in 2012. Hong Kong was another beneficiary with a slight...

Categories : GMAC Reports, Women MBA

Women MBA and GMATGMAC has released the 2013 Women and Graduate Management Education report. The report is based on data collected from 2003 to 2012, and offers details of women as they have progressed from management education to careers in management.

Here is the summary of the key findings

1) 2012 Volume: 122,843 Women took GMAT tests in 2012, representing 43% of all the GMAT test takers.

2) Growth: For the fourth consecutive year, Women GMAT test takers have crossed the 1,00,000 mark showing a 43.72% growth from 2003

3) Largest Representation: US women showed the largest representation (38%) of the global Business School women applicants.

4) Top 5 Countries where the number of women test takers exceeded men counterparts were from China, Taiwan, Russia, Thailand and Vietnam

5) Fast Decision: Women applicants took  3.4 years to decide whether to join a Business School against 4.75 years for men

6) Full-time MBA: In 2012, 46% of all Women GMAT test takers intend to join Full-time MBA program in 2012

7) MS Finance More Popular: According to 2012 data, Masters in Finance was much more popular among...

Categories : GMAC Reports

GMAC 2013 Employment Report
GMAC has published the 2013 Corporate Recruiters Survey, which collected feedbacks from 900 employers spread across 50 countries and 158 Business Schools around the world.  The general outlook in the job market for MBAs is positive, and the openings are slowly matching the pre-2008 economic crisis.

Europe vs. US vs. Asia

US companies have shown remarkable resilience over the past 5 years, and it is visible in the projected recruitment trends for 2013. According to the report, the average new MBA hires per company is projected to increase from 11.4 in 2012 to 14.6 in 2013. Asia also has shown robust demand with 61% of the companies planning to recruit against 54% in 2012. United States reflects this growth in demand with 85% of companies planning to recruit compared to 82% in 2012. The only region that didn’t show growth in hiring is Europe. However, the demand remains stable with 54% of companies planning to hire MBAs in 2013 – a number similar to the one seen in 2012.

Masters in Accounting & Finance vs. MBA

The demand for Masters in Accounting and Finance has increased in 2013 across all...

Categories : GMAC Reports, GMAT Score

GMAC has released the total mean GMAT score for the past five years (2008-12). Except for the year 2008-09, mean GMAT scores have shown consistent improvement. This can be attributed to the large number of online GMAT prep services that have sprung in the market, post the 2008-09 financial crises.  On an average, the total mean GMAT score has increased by 1.5 to 2 points every year, reaching 548.21 during the year 2011-12.

An interesting trend that can be noticed in the 2012 Profile of GMAT Candidates report is the performance of GMAT test takers from various undergraduate degrees. Let us for the sake of argument attribute GMAT scores to have the maximum priority in an MBA application. Here are the observations that we made from the report.

1) Test takers from Physics, Mathematics and Engineering, topped the 5 Year Mean GMAT score with 607.4, 603.4 and 592.8 respectively 

2) Marketing and Education undergraduates were at the bottom of the list with mean total GMAT Scores of 493.2 and 485.8.

MBA Quality CurriculumGetting feedback from final year students is a great a way to find out the true worth of an MBA program. GMAC team has collected this data with the 2012 Global Management Education Graduate Survey, conducted between February and March 2012. The respondents to the survey are predominantly International (52%) and a large percentage of them (40%) were pursuing graduate education outside United States. Majority of the respondents (86%), were pursuing an MBA program

MBA Program Representation in the Survey
In the survey, 29% of the MBA program respondents were enrolled in Two Year full-time MBA, 26% in One-Year Full-time MBA, 14% in part-time MBA, 6% in Executive MBA programs, 4% in online/distance MBA programs, 3% in flexible MBA programs and 4% in a joint-MBA degree program.

Quality of an MBA program
The Quality of an MBA program is subjective. But if you try to find out the key drivers that influence the quality of an MBA program, they are Curriculum, Faculty and Program Structure.  To evaluate the quality and value of the program, the GMAC team introduced “reputation of the program” as an additional driver for quality. ...

Post-MBA Job opportunities depend on the MBA Student’s academic performance, personality and fit for the job. But an overlooked factor that decides the post-MBA salary and job opportunities is the Pre-MBA Experience.

Pre-MBA Experience and Post-MBA Salary

According to 2012 Alumni Perspectives Survey conducted by Graduate Management Admission Council, starting salary difference for Full-time MBA Alumni with less than one year of experience and those with one to six years of experience is $50000. This is a startling finding for those candidates with low experience. The three to six year experienced candidates saw the maximum increase in salary (in percentage), as an MBA program helped them find job openings in mid-level managerial and leadership roles.

Around 19% of MBA candidates with less than a year of experience before the MBA program were unemployed in Sep 2011, compared to 15% with one to six years of experience. Although...

Switching Industries with an MBAIndustry switching can happen intentionally or based on available post-MBA opportunities. According to the 2012 Alumni Perspectives GMAC report, more than one-third (34%) of the class of 2011 were employed outside their intended industry. This might seem like a negative trend, given the emphasis that MBA programs put on post-MBA goals. But 85% of employed students, outside their intended industry, shared that they were happy with the turn of events.

What factors influence successful Industry switching?

MBAs cannot use the experience in their Pre-MBA job to make the switch but the roles and responsibilities that MBAs led before the program had a major impact. More than intrinsic factors, external factors played a bigger role in industry switching.

a) Competition

The competition for Finance and Accounting Industry were the highest but the MBAs who joined this industry were most aligned with their post-MBA goals.  70% in the industry said that they were able to choose the intended post-MBA...

Return on Investment MBA 2000 to 2010The 2012 Alumni Perspectives GMAC report gives us insight into the real return on investment on MBA programs – Salary, Job Satisfaction and Current Employment.

Salary and Compensation:  According to the survey, the median Salary reported by Full-time MBA Alumni from 2000-11 was US$95,000, with additional compensation of $18,123. As expected, Executive MBAs earned the highest median salary, $ US$125,000 and the highest compensation of $ US$153,445. Part-time MBAs earned the lowest median Salary at US$91,000, with additional compensation of US$106,000.

Return on Investment: Ten years after graduation, MBA Alumni nearly doubled their return on investment. Within the first year of graduation, nearly 1/3rd of the investment on graduate degree were earned and the entire investment were earned in four years

Job Satisfaction: The real return on investment on your MBA degree is Job Satisfaction. It directly relates whether you have achieved your post-MBA goals....

According to 2011 Application Trends Survey conducted by GMAC, as much as 83% of MBA candidates in European One-Year Full-time MBA programs are International students. This is especially encouraging for MBA candidates who want to be part of a multicultural class. 57% of one year Full-time MBA programs reported a decline in the number of applications received compared to 2010. An interesting trend this year was the rise in application for US based One-Year Full-time MBA program as against European One-Year Full-time MBA programs. The decrease in International applicant for European Business Schools was mainly due to the strict visa Requirements set by European Union.

Asia-Pacific continues to be the primary source of foreign applicants for the One-Year Full-time MBA programs, contributing 40% of foreign applicants to US schools. The number of minority applicants in US based schools has remained flat or have increased in most One-Year Full-time MBA programs.

One-Year MBA Program Trends
Source: GMAC

According to 2011 Application Trends Survey conducted by GMAC, more than 67% of participating two-year full-time MBA programs reported a decline in application volume. Of the 199 full-time MBA programs participating in the survey, accounting for 131,187 applications, the average number of applications received was 666, down from 695 reported in 2010.

The trend is worrying for Business Schools as normally with financial meltdown, a reverse correlation is observed between application volume and the health of the economy. As the economy grows weaker, more candidates take the B-School route to avoid the harsh job markets. Compared to the dot-com bust in 2001 when the application volume for full-time MBA programs increased considerably, 2011 has shown reverse trends. A Business School representative has countered this finding by pointing to the fact that application volume has been steadily growing for the past 5 years (even during the financial meltdown of 2008) and a slight slowdown is expected.

Full-time MBA Application Volume History