Top MBA Schools Are On Sale - Poets&Quants

Top MBA Schools Are On Sale

Across America, business schools are offering cuts in tuition.

The Wall Street Journal reports that top business schools are subsidizing MBA costs by offering millions in scholarships and financial aid to attract young professionals.

“There’s been a real focus on eliminating financial considerations as a barrier for enrollment in recent years,” Luke Peña, director of admissions and financial aid at Dartmouth College’s Tuck School of Business, tells The Wall Street Journal.

At Tuck, the scholarship endowment has doubled to $87.6 million since 2004 according to The Wall Street Journal. Tuck scholarships range anywhere from $5,000 to full tuition, which costs $68,910.

That’s just for one year. A two year MBA, at full price, from a top US business school can cost a student roughly $200,000 with living costs included. Luckily, school are increasingly opening their wallets to attract talent. According to data from the Graduate Management Admission Council, 61% of MBA students in 2017 received scholarships based on merit or financial need. In 2014, only 41% earned scholarships.

Leveraging Scholarships

Luke Anthony Peña, head of admissions and financial aid at Dartmouth’s Tuck School of Business

At an average cost of $200,000, an MBA isn’t cheap. For many students, leveraging financial aid offers can be useful.

Joky Kong is a first-year MBA student at University of Southern California’s Marshall School of Business. Kong tells The Wall Street Journal that he was able to leverage a scholarship from the Carnegie Mellon’s Tepper School of Business and have USC match the offer. Kong decided on USC after they matched Tepper’s offer with an additional $5,000 a year in scholarships.

“Once you receive an offer—and especially if you have multiple offers—you have leverage,” Kong tells The Wall Street Journal.

Michelle Clifton is an adviser with EdAssist, a division of Bright Horizons Family Solutions Inc., and former associate director of financial aid at Babson College. Clifton tells The Wall Street Journal that leveraging offers and negotiating financial aid is crucial for applicants.

“We encourage all applicants to negotiate, across the board,” Clifton says. “It’s not always going to result in more funding, but sometimes it will, and you don’t know until you ask.”

Dropping Enrollment Leads to More Scholarships and Aid

MBA enrollment has fallen by more than a third since 2010. Yet, the drop in enrollment hasn’t affected top business schools. Instead, falling enrollment has taken a toll on small business schools the most.

“A strong economy and a disruptive political climate is likely contributing to the downward trend in application volumes among smaller U.S. programs this year,” Sangeet Chowfla, GMAC president and CEO, says in a statement.

To combat dropping enrollment and compete for top applicants, business schools have launched specialized degrees and introduced new scholarships and fellowship packages.

Sue Oldham is executive director of recruiting and admissions at Rice University’s Jones Graduate School of Business. Oldham tells The Wall Street Journal that 96 students of this year’s class of 120 receive merit-based scholarships. On average, she says, students can expect to save roughly 68% of the program’s full cost of $58,000 a year.

“If you’re offering $500 in scholarships when tuition is $120,000 for two years, that’s a rounding error,” Oldham tells The Wall Street Journal. “The M.B.A. has the power to literally transform a person’s life and career trajectory. We’re serious about making it affordable for students.”

Sources: The Wall Street Journal, Poets & Quants, Harvard Business School, Poets & Quants

Business Schools Battle Ghostwriters

Business schools are clamping down on ghostwritten applications.

While ghostwritten applications — where applicants author their own recommendation letters or hire companies to write their admission essays — have been an issue for several years. The

Financial Times reports that a number of business schools are battling ghostwriters through technology and verification services.

“There are definitely ways in which we can see when something looks suspect,” Isser Gallogly, NYU Stern’s associate dean of MBA admissions and program innovation, tells Financial Times. “Every individual has their own writing style so if we spot similarities, that is cause for concern.”

40% of Applicants Have Been Asked to Ghostwrite Their Recommendation Letters

In a 2014 study conducted by the Association of International Graduate Admissions Consultants (AIGAC) — which was formed in 2006 to tackle ghostwritten applications — 40% of respondents said at least one manager asked them to draft their own recommendation letter.

Nick Barniville is associate dean of graduate programs at ESMT Berlin. He tells Financial Times that the desire for students to ghostwrite their application stems from lack of time. “MBA applicants suffer from the same problems as everyone else looking for a reference from a busy employer,” he says. “The referee will often ask the employee to draft a reference for edit and sign-off.”

Generally, business schools require applicants to write a 500-word essay explaining why they have chosen to apply to a school. In addition, many schools ask for references and recommendations letters.

Barniville says it’s easy for application committees to spot ghostwritten essays and letters—particularly when the “form, style, grammatical flow and paragraph structure are similar across two references.”

Essay Writing Companies

There are a number of companies that ghostwrite MBA essays. Leeds-based Essay Writer, according to Financial Times, claims to be the UK’s largest online provider of custom essays.

“Since our establishment in 2001, Essay Writer has continually delivering quality essay writing services for our customers,” their website reads. “Our company immensely takes pride for being the original and premier academic essay writing provider.”

Essay writer charges £183 (roughly $248 USD) for a 1,000-word master’s level essay. The essay can be delivered in seven days.

David Burton is the general manager of Essay Writer. Burton tells Financial Times that the majority of Essay Writer’s client base are international applicants who struggle with limited application language skills.

“Often, they do not want us to write a whole piece but want help getting into a piece or feedback on how to enhance it,” Burton says.

Consequences of Ghostwritten Applications

Scott Shrum, AIGAC Secretary

Scott Shrum is secretary of the board at AIGAC. Shrum tells Financial Times that ghostwritten applications aren’t just unethical, but they don’t pay off down the road.

“If applicants are interviewed and their English is difficult [but their application] essays were perfect, the admissions team will see it immediately,” Shrum says.

A number of schools already have tough consequences if an applicant is caught with a ghostwritten application. David Asch is the quality services director for the accreditation body EFMD. Asch tells Financial Times that a school will automatically reject an applicant if their application is found to be ghostwritten.

“Most university regulations say that the applications process must be honest, so if you mislead you can be sent away,” he says.

Solutions to Combat Ghostwritten Applications

At Northwestern’s Kellogg School of Management and the SDA Bocconi School of Management, more creative solutions are being used to tackle ghostwritten applications. Both schools now require video essays asking applicants to answer a series of questions on camera within days of submitting a written application.

According to Kellogg’s website, “the Video Essay is one component of the application and provides you with an additional opportunity to demonstrate what you will bring to our vibrant Kellogg community – in an interactive way.” Kellogg states that the video essay serves as additional information to an application. “It is the last thing we review when reading an application. It gives us a sense of your personality and allows us to get to know you in a more personal way than we can through your essays.”

In addition, many universities have employed verification services, such a Re Vera, to conduct applicant background checks.

Susan Cera is director of Stratus Admissions Counseling. She tells Financial Times that admissions committees tend to cross-check written essays with GMAT verbal subscores. If a well-written essay does not match a GMAT verbal score, it raises a red flag.

“Admissions committees reach out to applicants with quick and easy questions via email and look at the writing in the email response to see if it matches what is in the essays,” Cera says.

Overall, it seems admissions committees have a zero tolerance for ghostwritten applications.

“We recently heard of a top MBA program rescinding an offer the month before the program was going to start,” Cera tells Financial Times.

Sources: Financial Times, Northwestern Kellogg School of Management, Essay Writer

6 Things You Need To Know About a Strategy MBA

Entrepreneurs and leaders looking to lead a company need to understand what makes a business successful – and what makes it a failure. The strategy MBA is becoming an increasingly popular choice among business students interested in becoming effective and creative leaders.

Ilana Kowarski, a reporter at US News, recently wrote an article discussing six things experts say applicants should know when it comes to a strategy MBA.

“If you know strategy inside and out, have studied the mistakes of businesspeople who have come before you, you’re better able to be in a position to provide thought leadership inside and outside of your company,” says Misha Kaura, the CEO of Darlinghurst Enterprises, tells US News.

A strategy MBA can be helpful in teaching students how to make management decisions that improve a company’s performance, Kowarski says. “Unlike a technical MBA concentration that aims to develop expertise in a particular aspect of business, such as marketing or finance, a strategy MBA concentration requires a mastery of business theory about what factors influence a company’s success or failure,” she says.

Rob Weiler, associate dean of the full-time MBA program at Anderson

Strategy MBA Can Teach Problem-Solving Skills

Kowarski reports that strategy MBA courses tend to focus on case studies. In these courses, students discuss management decisions that real companies made and build business philosophies in response.

“These courses give students conceptual frameworks they can use to analyze a company’s viability and assess business competitors,” Kowarski says. “Students also learn how to find the information they need to make prudent executive decisions.”

Rob Weiler is associate dean of UCLA’s Anderson School of Business. Weiler tells US News that specializations, like a strategy MBA, can add a competitive edge.

“The specializations really provide structure and a road map to students, so they’re able to walk out of here and signal to the job market that they’ve acquired a certain set of skills and can transfer that knowledge to the job,” Weiler says.

A Versatile Degree

A strategy specialization makes students marketable in a variety of jobs. Students who graduate with a strategy specialization can develop into consulting roles, strategy roles, and c-Suite executives.

“Though some seem to see strategy as a major for aspiring management consultants, it is probably just as useful for entrepreneurs as well,” Kaura tells US News.

Lydia Price is associate dean and MBA director at CEIBS, which ranks highly in strategy. Price tells Top MBA that a strategy MBA can offer students a variety of skills.

“Key lessons would include: industry and environmental analysis, internal analysis and competitive advantage, organizational structure, design and alignment, market evolution and dynamics; in addition to many specialized topics for specific industries, world regions or stages of market development,” Price says. “Strategy draws upon all of the business and market fundamentals, so it is important that a specialized strategy curriculum also includes a solid grounding in topics such as economics, accounting, finance, marketing, organizations, and operations.”

Attend a School with an Accomplished Student Body

Like many other concentrations, the stronger the student body, the more connections you can make. For a strategy specialization, experts say it’s helpful to attend a school where your classmates are accomplished leaders from diverse industries.

Bruce Bachenheimer is a clinical professor of management at Pace University’s Lubin School of Business. He tells US News that a school’s student network is just as important as its reputation.

“While the school’s reputation, ranking and accreditation are obviously extremely important, applicants frequently do not consider just about how vital their peers will be in preparing them for a career in corporate strategy,” he says.

More important to note, accomplished peers can add vital insight to classroom discussions, Bachenheimer tells US News.

Participate in Strategy Competitions

Michael Davis is a finance industry executive who received his MBA degree from INSEAD Business School in 2010.

He tells US News that participating in strategy competitions as an MBA student is a compelling way for students to build their resumes. Not only do they enable students to compete against one another, but simulate what it’s like to do strategy work for real companies.

Strategy MBAs Pay Off

The strategy MBA is yet another MBA specialization that offers high pay for graduates.

According to PayScale data of December 2017, management consultants and senior strategy managers with a strategy MBA, made on average six-figure salaries.

In a 2016 US News article, strategy MBAs had the highest salary potential among MBA concentrations. US News reports that strategy MBAs can expect early career pay to be around $96,200 with midcareer pay averaging at $149,000.

Business strategy is essential for business success

Business strategy is a key component to achieving business success, experts say. With a strategy MBA, graduates can tackle ambitious goals with knowledge of what works and what doesn’t.

Davis says business strategy can make the difference between a successful startup and a failed startup.

“The idea is such a small percentage of all the ingredients,” Davis tells US News. “It’s really about the strategy and the execution on that strategy.”

Sources: US News, Top MBA, US News

How To Look Beyond Rankings When Choosing An MBA Program

Rankings drive the higher education world. Yet, there are a number of other important factors to consider that go beyond common rankings.

Aviva Legatt, a contributor at Forbes, recently discussed how applicants can go beyond rankings when determining which MBA program they want to attend.

Rankings are Important, But Should be Taken with a Grain of Salt

Gareth Howells is the executive director of MBA, MiF, & Early Career Programs at the London Business School. Howells tells Forbes that 75% of LBS applicants “use rankings to assist their decision-making process… or to shortlist schools when deciding which to apply to.”

Many popular rankings rely on specific criteria, which aren’t necessarily of equal importance to all applicants. For instance, according to Forbes, 50% of US News rankings rely on career placement success with 35% relying on starting salary and employment rates. The remaining 15% falls on recruiter-provided feedback. Despite the inaccuracy of this statement – 40% of the U.S. News ranking weight is based on recruiter and peer surveys – the ranking has some usefulness. Notably, it can guide applicants who are intent on pursuing a traditional job with high salary, such as banking or consulting.

Other rankings, such as the Bloomberg Businessweek ranking, rely more heavily on student and alumni input. This ranking is based on 45% student and alumni input, with 35% on employer reputation score, and 20% on job placement rate score.

Understanding Career Outlook and Finances

There are a number of supplementary sources applicants should consider on top of looking at rankings, Legatt notes. For one, the Bureau of Labor and Statistics offers “Occupational Projections Data,” where applicants can see the pay, projected industry growth, and required degree for a number of occupations. This tool can be especially helpful when paired with rankings for a particular course of study and career path.

Finances are important when it comes to an MBA education. Analyzing and comparing a school’s return on education can be useful when determining how cost will play into a decision.

Bob Park is former head of career strategy & professional development at SoFi — a financial planning company. Park says rankings often can miss important factors such as salary-to-debt ratios.

Aviva Legatt

“For example, when we ranked business schools by average salary, we found that our top 20 included most of the top 20 found on the US News and World Report MBA ranking,” he says in a blog post. “However, when we re-ordered by salary-to-debt ratio, only one US News program – Stanford Graduate School of Business – remained in the top ten.”

Teaching Methods and Student Input

Park also recommends that applicants consider looking at a school’s teaching method. Each school offers its own unique teaching style. For instance, Harvard Business School is famously known to employ the “case” method of teaching, where students analyze cases to apply theory and concepts.

Park says understanding teaching methods and how you might fit into certain a certain school’s method is crucial.

“Are you extroverted and want to engage in debates with classmates? Then the case method might appeal to you. The HBS website states that class participation is so important that 50% of a student’s grade in many courses is based on the quality of class participation,” Park says. “Or are your quantitative skills lacking but you really want to go into investment banking where those skills are valued? Then you might consider a school known for its quantitative approach so you can develop the hard skills you’ll need to find the job you want.”

mbaMission is an MBA admissions consulting company. In a recent blog post, the company highlighted student input as an important factor when deciding on an MBA program.

“One way to look beyond business school rankings is to speak with MBA students,” the post reads. “Even if you do not have direct access to students, reaching out to them in a targeted way—via email, club Web sites, and social media—can be quite easy. If you are conscientious, you will be able to gain some great insight into the school’s academic environment and then have time to learn more about the atmosphere on campus.”

Regardless of what an applicant is looking for in an MBA program, it’s important to not solely rely on rankings when deciding. Occupational outlook, costs, teaching methods, and student input are all important factors to consider.

Sources: Forbes, mbaMission, Bureau of Labor Statistics, SoFi

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