In the United Sates alone, in any given year, there are close to 300,000 MBA aspirants pursuing the MBA degree. Taking into account the thousands of students who take the MBA program all over the world, there surely must be something of great value that the MBA degree offers you. But is it really as worthwhile as it seems?Benefits
An MBA degree provides you with innumerable career opportunities in various fields. It is especially beneficial to get jobs in high level positions such as managerial and executive level jobs. Whether you are looking to further your career in your existing job or are looking to change your job and start your career afresh, an MBA degree can be very valuable in either scenario.
The value of an MBA degree, on the whole, cannot be denied. But more importantly, anyone who has an MBA degree, or anyone who is in pursuit of one, has to determine how the degree can benefit them and should ask them selves what the value of an MBA is to THEM individually.
You can do this by assessing how an MBA can help you in your chosen field and in jobs for which you have an aptitude. If an MBA can enhance your business skills and make them better suited to your particular profession or career choice, then it can be invaluable to you.
The MBA gives you a KNN value proposition, the order and weight is up to any individual
- Knowledge: The MBA program and business schools give you valuable knowledge about business and all its related aspects. You learn about business strategies and concepts, and how to use these skills in practical life and in day to day business operations. An MBA degree involves also rigorous training, assignments, reports, presentations, and group projects, all of which give you the necessary abilities to handle real-life business situations.
- Network: The alliances that you form with your classmates and the network that you create and inherit is deemed as one of the most important and valuable things that an MBA program can give you. The associations formed during the course are invaluable and can be drawn upon for years after the MBA degree has been achieved.
- Name: The school name on your professional passport, called résumé or CV, you decided to associate with, will be your key for success in the business world. On acceptance, you will endorse the school brand name and values. This important decision will help you all your professional life to jump over hurdle that may come on your way.
Drawbacks
According to by Josh Kaufman “Business schools don’t have a monopoly on worldly wisdom. If you care more about increasing your effectiveness at work than a diploma and a few lines on your resume, the Personal MBA is for you.” If you prefer reading over learning in class, and you want an MBA for just the knowledge, you better look for the same price for a 1 year vacation on a Caribbean beach with your 100+ books you should read, it will certainly less expensive.
- For the financially inclined, Christian Schraga estimates that the ten year NPV of a top MBA program is (-$53,000), assuming a base salary of $85,185, post-MBA salary of $115,000 (+35%), marginal tax rate increases (NYC), and a discount rate of 7%. Breakeven occurs in twelve years. You can find the calculation of NPV (net present value) of full time MBA.
- Geoffrey James articles his "Five Hard Truths About the MBA", his sarcastic "Secret Guide to the MBA Curriculum" and "What Executives Really Think of MBAs"
- Uncle Saul take on "The MBA Education And Other Oxymorons"
- Penelope Trunk provides her view on the MBA, in her "B-school Confidential: MBAs May Be Obsolete"
Is it really as worthwhile as it seems?
It is up to you to decide