Tough Job Market For New M.B.A. example essay topic

WHY AN MBA? Why an M.B.A. Gregory Horton Walden University, Course MBA 6000 Why an MBA? The reason many chose an M.B.A. is because it is has value. It has value beyond mere money to some people. I chose an M.B.A. because I want to learn everything I can about managing business. Others may chose an M.B.A. for reasons like increasing one's earning potential, becoming a captain of industry, or self fulfillment.

Many have called America the "Land of the Free", and some have called it "Land of the Dollar". Samuel G. Freedman, in his book, The Inheritance, How Three Families and America Moved from Roosevelt to Reagan and Beyond said, "God had created the waters and mountains and sky, but... the dollar bill is the Almighty in this country [America]". (Freedman, 1996). This statement symbolizes how capitalism drives most events in America and those who seek to master the science of capitalism are well advised to seek advanced training in it I have had the good fortune of managing at various levels in corporate America from regional manager, to executive director, to vice-president.

These were multi-billion dollar corporations. I did not have any formal training in business administration from an accredited college or university prior to positions. These accomplishments were achieved through pure entrepreneurship and drive. There were some very hard management and business lessons learned along the way because I did not have the training and skills one develops in an accredited M.B.A. program.

In order to consider whether or not an M.B.A. is practical, one must conduct a cost-benefit analysis such as the one reported in the Economist magazine. The Economist magazine wrote an article based on a book written by Ronald Yeaple, a professor at the University of Rochester business school. Yeaple took a market-based approach to look at the financial returns of M.B.A. programs from top tier schools and ranked them by the highest financial rewards. The Yeaple study suggests that for students who could not attend one of the top tier business schools, such as Harvard, it would be more cost-effective to attend a school that tailored their curriculum to programs a student's busy life, since many aspirants have regular jobs. Yeaple also suggests that it may not be worth the cost of enrolling full-time and losing two years worth of income in terms of employment if one does not attend one of the top tier business schools.

He also states that one can learn how to use computers, manage people, and other routine job related functions while on the job, but business school teach subjects like economic theory, finance, statistics, and strategic planning (Economist, 1994) that is not commonly taught on the job. There are other ways to assess the cost-effectiveness of whether to pursue an M.B.A. Some of the cost-effective ways to determine whether to pursue an M.B.A. is for each individual to conduct a personal skills inventory and measure those skills against their ultimate goal (s). If enough of a gap exists between the current skills and those needed for attain one's goal (s), then the question of why an M.B.A. is self evident. A second way is by reviewing research such as the one conducted by the Graduate Management Admissions Council (GMAC) in 2002.

Participants in the GMAC survey completed it while in business school and were surveyed again after becoming graduates. GMAC received 1,247 completed surveys and according to the GMAC, the respondents "continue to value their MBA despite downturns in the economy that are causing lay offs and tight market". (GMAC, 2003). As of 2002, the average M.B.A. annual salary was $78,000. Of course there were many variables that affected this average such as citizenship, the type of business school attended, race, and gender, for example. Overall, the respondents were happy they pursued an M.B. A even though there has been an economic downturn in the economy because it gave them the tools they needed to be successful in business.

The economic downturn, which has turned into a recession, has resulted in a tough job market for new M.B.A. 's. According to Meyer Feld berg, dean of Columbia Business school, in an interview with Business Week magazine, March 2002, even though new M.B.A.'s are not courted with lavish $100,000 a year jobs as with the graduating class of 2000, the major financial and consulting firms are still hiring the best and brightest of them (Week, 2002). According to Kem bra J. Dunham of the Wall Street Journal, in a article titled, "M.B.A.'s of 03 Are Facing An Array of Closed Doors", stated that even with the downturn in the economy, 70% of graduating M.B.A.'s have a job lined up (Dunham, 2003). The 70% statistic of having a job prior to graduation at this salary is another good reason to pursue an M.B.A. There is another good reason as well, learning how to start or manage your own business. It seems that most people who get an M.B.A. go to work for someone else. This is equivalent to renting an apartment versus buying a house.

Investing the M.B.A. skills to start your own business gives you more immediately value and more options. It also has more risks. Whether you rent or own, an M.B.A. is worth the investment especially since the emergence of the global economy. In 1973, David Rockefeller, international financier, heir of the J.D. Rockefeller clan, read a book written by Professor Zbigniew Brzezinski, from Columbia University, entitled, "Between Two Ages".

Brzezinski advocated an alliance between North America, Western Europe, and Japan (2003). He was advocating a global economy whereby the interest of these regions would be interdependent. He felt that by mutual cooperation, many problems of the world could be solved. Rockefeller was so inspired that he formed a group of elite citizens from these regions and created the Trilateral Commission.

There has been a lot of controversy surrounding the commission since only the elite have been members to date. The formation of the Trilateral Commission is one of the major events that ushered in the global economy. There are around 350 members of the group and some of the alumni have been U.S. presidents, financiers from the world's largest corporations, senators, academics (Ivy League), former generals, and labor leaders. Former presidents Jimmy Carter, George H.W. Bush, and Bill Clinton were members prior to becoming president (Kestenbaum, 2002). Other political members include, Vice-President Richard Bruce Cheney and and Senator Dianne Feinstein of California (Kestenbaum 2002). Since the creation of the Trilateral Commission, there have been 150 mutual trade agreements between nations such as North America Free Trade Agreement (NAFTA) (Dam 2002).

The U.S. is party to only 10 of them, but our participation is growing. This has increased the value of having an M.B.A. According to the Trilateral Commission, the U.S. cannot be the singular leader of the world as it was after World War II (Commission, 2003). Hiring people that understand finance, economic theory, strategic planning, and world trade is what the corporations are looking for since many of them are vying for global business. International borders are being erased.

Having the skills to manage on a internationally as well as domestically makes having an M.B.A. a true asset. Looking down the road at the global economy, supply chain management, business to business, and even distant learning in pursuit of an M.B.A. makes the question of "Why an MBA?" an easy one to answer. Leaders of tomorrow are expected to better understand the dynamics of business beyond the boundaries of the local markets. By the year 2015, according to Forrester Research, 3.2 million highly technical service jobs will move overseas. M.B.A.'s must be able to quickly grasp innovative business theory, finance expertise, strategic planning, and concepts to manage in the global markets. The difference of having an M.B.A. and not having one with the emergence of a new economic order on the rise is like living in a world of cave men like the Flintstones (an old television cartoon series about a prehistoric family) or the Jetsons (old television. futuristic cartoon series). Why an MBA?

It just makes sense.

Bibliography

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Trilateral Commission: World Shadow Government. Commission, T. (2003).
About the Organization. Dam, K.W. (2002).
Deputy Treasury Secretary Kenneth W. Dam Remark To The Trilateral Commission "Globalism and Regionalism In The Post DOHA Multilateral Trading System", Dunham, K. (2003).
M.B.A.'s of '03 Are Facing An Array of Closed Doors". The Wall Street Journal [Electronic version]. Retrieved on June 23, 2003, from web Economist (1994).
The MBA Cost-Benefit Analysis". Economist 332 (7875). Freedman, S.G. (1996).
The Inheritance, How Three Families and America Moved From Roosevelt To Reagan and Beyond. GMAC, G.M.S. a. (2003).
MBA Perspectives: Career Decisions Survey Executive Summary. 2003.
Retrieved on July 7, 2003, from web Kestenbaum, L.
2002).
Trilateral Commission Politician Members. Retrieved July 1, 2003, from web Business Week.