Om Shri Ganeshay namah, Diff

Om Rim Sareswatey Namah, Om Gan Ganpatey Namah,

University of Bradford School of Management

Corporate Consortium MBA Cohort 7

Student Name – Punit Vasu

Name of Module Tutor – Craig Johnson

Assignment Subject – n/a

Title of Assignment – The MBA Qualification - Different Modes of Studying for an MBA

Date Submitted - Saturday, November 05, 2005

Word Count – 2,989 words

“The MBA is not an end in itself, but a means to an end”. It is a degree designed to
give the ability to develop one’s career to its fullest potential, at an accelerated pace
(Wharton 2005). Most potential applicants opt for an MBA related to three main value
propositions: development of hard and soft skills, accessibility to networking channels,
and graduating with a degree which is a brand recognised nationally - preferably
internationally (Wharton 2005). Having made up their mind to study for an MBA,
applicants soon realize that most MBA programmes proceed by a fairly standard calendar
with applications accepted by schools in fall and spring. Potential MBA students proceed
to collect application forms, schedule interviews and visits to tour the campus, scourge
through various brochures, guidebooks, and magazines that give them relevant rankings
and up-to-date information about the tiniest details of programmes offered by business
schools across the globe. At some point in time, most applicants are required to explore a
very important area related to the MBA programme: What mode of study to opt for
during an MBA? The focus of this paper is to look at different delivery methods for an
MBA available to a student notably the full-time MBA (of varying lengths from nine
months to two years), part-time MBA (including executive MBAs, modular MBAs and
other variations) and rapidly growing distance-learning and online MBA programmes.
All have advantages and drawbacks which have been addressed in this paper.

Should a student chose to study full-time, most prospective MBA students face the
dilemma of zeroing in on the total duration of the MBA programme they want to study.
The duration of the full-time programme tends to vary depending on content of the
programme, areas of specialization and electives offered and the geographical origin of
the parent campus (Economist Intelligence Unit 2005). Full-time programmes can last
two years, one year or less, or something in between. Programmes that are typically of
longer duration tend to be offered in North America whereas the shorter version of the
MBA is more popular across parts of Asia and Europe. Typically, two year American
MBA programmes have instruction that is delivered over four semesters of about thirteen
to fourteen weeks each in fall and spring. There are also a small number of business
schools that deliver MBA instruction over three to four periods, variously known as
trimesters, terms or quarters. This picture is not necessarily consistent with programme
offerings in Europe and Asia. MBA programmes at Cambridge, INSEAD, IMD and the
Indian Institute of Management can be completed within a year whereas institutions such
as London Business School and IESE Business School in Barcelona having course
completion requirements of one year. The HEC School of Management in Paris, Hong
Kong University of Science and Technology and the University of Otago in Dunedin,
offer programmes lasting 16–18 months. According to Bickerstaffe (2005), a large
number of students choose a full-time programme attracted by the total immersion such
programmes offer, as well as regular access to faculty members and other students.

Irrespective of the duration, full-time students enjoy several benefits. Typically, the
duration of full-time programmes is shorter compared to other modes of delivery. The
nature of the full-time allows students to focus solely on learning and not worry too much
about their work place. Significant commitment by full-time students in terms of time and
effort ensures that the attrition rate for most full-time programmes is significantly lower
when compared to part-time and executive programmes. Almost all full-time
programmes assign significant resources to career management and student placement,
realising that MBA students use their degree to develop their careers and provide the
necessary network and contacts to interface with a vast pool of potential employers.

The two year full-time MBA programme has several added merits which would not be
seen in a full-time MBA of shorter duration. Given the nature of studying core courses in
the first year and a concentration of study with electives in the second year, the two year
MBA allows for functional specialisation. A two year programme would be ideal for
students who wish to switch careers and/or continue in the same job function or industry.
This is possible because the two year programme provides students an opportunity to
gather knowledge in a specialised discipline creating a newer job skill set. This is
especially relevant for students positioned in the early development stage of their career
since the specialized mode of study would help to continue in a particular industry or job
function and to progress more effectively, after graduation. During the second year of the
MBA, students have the flexibility of pursuing their own interests or career objectives
with the optional courses. The longer the course, the more time students have to devote to
these elective subjects of specialisation. Summer is traditionally the time jobs or
internships providing invaluable job experience. In a January 2002 survey of recruiting
companies by the Graduate Management Admissions Council (GMAC), 74% of
companies said when forced with a weak economy, they were more inclined to make full-
time job offers to MBA students who had internship experience.

However, the two year MBA programme has several disadvantages that a student would
need to consider before selecting a programme of choice. This programme is ideally
suited to people with well-defined career goals, are ready to spend an extended period of
time out of the workforce, and have the financial ability to pay for such a program
without working full-time. The opportunity costs of two year of full-time study are high
in terms of loss of income for up to two years and the need to sacrifice a job - probably
with an advancing career - to participate effectively in the programme. Typically full-
time students are not sponsored by their company and often require relocation to the
place where the programme is offered. Therefore, the two year programme may prove to
be very expensive and time-consuming affair when compared to other more flexible
modes of delivery available in the MBA marketplace.

While enjoying several benefits of the two year full-time MBA programme such as
access to recruitment and networking contacts, the major advantage of a MBA
programme that is shorter than two years is reduction in opportunity costs related to
tuition. Programmes that vary in length between nine to sixteen months are ideally suited
for candidates further along their career paths and candidates with undergraduate degrees
and experience in business (Economist Intelligence Unit 2005). Whatever their length,
most of the shorter programmes adopt the traditional split between a group of compulsory
core subjects and a limited set of electives and virtually all of them include a mandatory
company project, modelled along the lines of the two year MBA programme. The intense
pressure of a one year provides an ideal platform for the real business world, where time
management and priority setting are essential skills. The entry requirements of most full-
time one year MBA programmes usually have strict prerequisites related to previous
academic and/or work experience.
However, a one year programme cannot avoid being extremely intensive providing
limited time available for electives. The shorter time frame also results in a limited
number of elective subjects being offered to students. Waivers to reflect previous
academic and work experience are allowed in some but not all cases. Despite the
argument that the time spent face-to-face with teaching staff differs little between one
and two year programmes, critics of one year MBA programmes argue that a single year
is not long enough for issues to be covered comprehensively or in depth.

While full-time programmes may be suitable for candidates in a relatively early stage of
their careers with the average years of experience ranging from two to six years for the
two year programme and slightly longer for a year programme, part-time programs cater
to students who are a little further along in their careers. Most MBA students who chose
to study part-time are ones who have a reasonably clear career vision and intend to
remain within the same organisation. Part time programmes typically take longer time to
complete with an average duration of three to five years. Though MBA programs have
historically attracted a large number of part-time students, increasing numbers of
institutions are adding part-time MBA programs to their curriculums, as Charles
Hickman, Director of Projects and Services at the AACSB affirms. Though the exact
number of currently-enrolled part-time MBA students is not available, he speculates that
two-thirds of all MBA students are part-time.

Perhaps the most popular variation of a part-time MBA, though shorter in duration, is the
Executive MBA (EMBA). EMBA programmes offer most of the advantages as part-time
programs in that one can continue on the same career path while participating in the
programme, without quitting a full-time job. This is the prime reason why most
corporations chose to sponsor their executives for EMBA programmes, rather than full-
time programmes. Professionals and executives who are already specialists in a field or
industry and need to hone their general management skills to continue up the corporate
ladder form the typical EMBA cohort. Classes are offered during the weekends and other
holidays so to avoid conflicting with the daily work schedule of a candidate. Most EMBA
programmes have slightly less challenging requirements compared to full-time
programmes as they tend to target candidates with significant managerial experience. The
accelerated nature of an EMBA programme can be equally intense and is comparable
with that of most full-time programmes, given that the number of classes and instruction
required is the same.

There are several advantages of studying on part-time EMBA programmes. Most students
on such programmes have several years of expertise and managerial experience and they
tend to share this as part of their study on the programme. Given the nature of classes
offered over weekends and other holidays, executives do not have to near the brunt of the
opportunity cost related to quitting their full-time jobs to seek an MBA. Most EMBA
programmes feature a well constructed curriculum of several courses in each of the major
business disciplines to give executives a well rounded degree education. They usually do
not require permanent relocation. EMBA students earn their degree in two years or less,
faster than the conventional part-time counterparts. EMBA programs also offer the
advantage of full immersion, with learning outside the classroom and extensive
interaction with faculty.

The primary limitation of an EMBA stems from the high level of commitment required
from the students, their families, and their employers. Students are required to put in an
average of eighty to hundred hours a week between studying and work. This means that
EMBA programmes require the whole hearted support of the employer of the student,
which is easier said than done. More importantly, absences are not tolerated during the
programme, given the intensive nature of class offerings. Executives also complain that
most EMBA programmes do not allow them to speacialise in a specific field and the
intensive nature of the programme leaves little flexibility in selecting any electives.
EMBA programmes are very different from the traditional full-time MBA in the sense
that there is no scope of internships and career service related activities.

Another interesting variant of the part-time MBA and executive MBA is the corporate
consortium MBA programme, wherein one or more organizations forming a consortium
will partner with an academic institution university to offer an MBA programme
exclusively to employees of the consortium, often using the part-time, evening or
weekend class model. The biggest advantage of this type of programme is that MBA
education received by consortium members can be tailored directly to the needs of the
sponsoring company. These types of part-time MBA programmes are reasonably rare,
though the University of Bradford has made significant inroads in this area with a
corporate consortium agreement for offering an MBA to members of a like minded
consortium comprising of several renowned corporations from the Middle East. The
corporate consortium MBA has several advantages. Firstly, students are supported by the
consortium companies and for this reason tend to be very motivated in their pursuit of the
MBA. Candidates on such programmes have the opportunity meet colleagues from other
organizations in the consortium allowing for a unique exchange of experience and
business knowledge, insights and understanding. Normally, the study group on most
consortium MBA programmes is small enough to allow each individual to excel and take
part in intensive team work. By providing four to five student from each consortium
member firm, a critical mass of energy is generated which proves to be a wonderful
experience for all participants on the MBA programme.

Yet another variant of the part-time MBA is the modular MBA wherein classes are
offered over set periods of time, where the student is required to be on campus full-time
for completion of the course module and then has the flexibility to return to the
workplace. This requires far more commitment from the sponsoring employer and good
use of employee vacation time. Then there is also an increase in the number of part-time
programmes that require travel between schools, drawing from the work of different
faculties. These MBA programmes are called ‘‘global” MBA programmes and require a
fair deal of travelling on the part of the student. In return, these programmes give the
student a greater perspective in addressing international issues, allowing the student
sample different teaching styles, and claim a greater amount of international experience.
The EMBA-Global, now in its third year, is the joint EMBA between Columbia
University’s Graduate School of Business and the London School of Business. Students
spend one week a month in class, alternating between the New York and London
campuses and the same professors teach each course regardless of location. The TRIUM
MBA is the result of the partnership between New York University’s Stern School of
Business, HEC School of Management in Paris, and the London School of Economics
and Political Science (LSE). It lasts 16 months, during which students meet one week
every two or three months either at one of the three campuses or at two other locations
which change from year to year.

The final part of this report deals with distance learning programmes which allow a
candidate the convenience of being able to complete the MBA degree from anywhere in
the world. Distance learning involves the delivery of instruction and the fulfillment of
course work from remote locations, allowing instructors and students to interact without
being in the same place. New technologies have made distance learning an increasingly
popular option for institutions and students alike. The Internet, e-mail, video
conferencing, and other interactive synchronous and asynchronous systems allow
institutions to experiment with unique modes of teaching and learning by effectively
using resources to attract faculty and students far from campus (Cutshall 2002).
Nowadays a lot of distance programmes tend combine distance learning with face-to-face
learning, by bringing students together for short periods for superior learning
opportunities (Murray 2003). Online MBAs are one of the fastest growing segments in
business education according to research firm International Data Corp (IDC), which
claims that the size of the e-learning industry in the Asia-Pacific region has doubled
every year since 1999 to some U.S. $462m in 2004.

Distance learning programmes cause little disruption to a students professional life

providing a good option for people who seek to enhance their careers or who need
specific training. Seasoned managers often cannot afford the time required by
conventional MBA degree programmes and may not require the credentials from such a
programme. Distance learning can offer such managers exposure to new knowledge and
theories, without having to forgo the opportunity cost of loss in income and relocation.
Distance-learning programs require less time commitment overall than other types of
MBA programmes, offering more geographical flexibility and access to multiple faculty
at various locations all over the world. The use of advanced technologies during the
course of distance learning helps students over come their initial apprehension of using
technology to their advantage at work
However, distance learning is not for suitable for all students, because it offers limited
face to face interaction with fellow students and faculty. It does not offer the advantage of
networking opportunities similar to on-site learning, making distance learning a poor
choice for career switchers. Conventional student services, such as career placement, may
be limited or nonexistent in a distance-learning program and this could prove to be
extremely frustrating for participants wanting a career change. Another hindrance exists
in the form of the limited number of distance learning programs available to students all
over, especially from renowned institutions.

To conclude, there is clearly a strong demand for MBA graduates wherein recruiters are
conducting interviews for hiring more MBA students in 2005. Results of topmba.com
recruiter research in 2005indicated that 62% of employers expected to increase MBA
hiring during the subsequent twelve months. Only 10% of employers expected to
decrease MBA hiring. Barring any further external shocks to the global economy,
recruiters predict a further 15% growth in demand in 2005 and again in 2006, across all
sectors which could be the start of another long upswing in MBAs similar to that seen
between 1992 and 2000. All this is further indicated by the fact that about 133,000
GMAT tests were taken in the first eight months of 2005, 1.7% more than in 2004. The
number of tests in USA was down about 1%, while the number outside the USA rose
7.6% (GMAC 2005). There is no conclusive study as to which mode of study for the
MBA is more advantageous than the other, though most students chose to make a
decision based on cost, flexibility, availability of networking opportunities, internship
and job opportunities. More importantly, the very decision to study and enroll for an
MBA programme could prove to be a gold mine with benefits of graduating with an
MBA over riding the limitations imposed by any given mode of study.
References

Bickerstaffe, G., (2005) Which MBA?: A Critical Guide to the World's Best MBA's
London: Prentice Hall.

Bradshaw, D., (04 November 2005) A tale of two divergent trends (online)
http://news.ft.com/cms/s/2147a814-28f0-11d9-836c-
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The Economist, (01 November 2005) Full-time programmes (online)

http://economist.com/globalExecutive/education/mba/displayStory.cfm?
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The Graduate Management Admissions Council, (04 November 2005) www.gmac.com

Murray, S., (2003) Web based systems change the MBA landscape. Financial Times
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QS TOP MBA, (01 November 2005) MBA Recruitment – The Upswing has Started!
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Thomas, C., (01 November 2005) Part-Time MBA Programs: More Choices, More
Convenience (online) http://www.petersons.com/GradChannel/articles/mba1.asp

Wharton Business School, University of Pennsylvania, (01 November 2005) Why An

MBA (online) http://mba.wharton.upenn.edu/mba/admissions/why/propositions.php