For Applicants To Top MBA Programs, Trump No Deterrent - Poets&Quants

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A new survey shows the “Trump effect” that many attribute to a plummeting application volume at mid-level and smaller schools has little bearing on either the mindset or the plans of most international MBA candidates applying to top U.S. MBA programs.

The annual survey by Stacy Blackman Consulting, a MBA admissions advisory company, gauges candidate priorities and opinion on a range of issues. Released today (October 1), the 2018 survey’s findings show that the current political and economic climate in the United States has a limited influence on MBA candidates’ intentions, with 70% of respondents saying they are unswayed, and 8% even saying they are more likely to apply to U.S. MBA programs given the current political climate.

Even among the 19% who reported they were less likely to apply because of the current U.S. political climate, 82% of that group are still applying or planning to apply to U.S. programs.

“I often wonder if international MBA candidates in particular are going to mention Trump across our hundreds of inquiries,” says Sara Tsai, principal at Stacy Blackman Consulting, “but no one does.”

A SURVEY FOCUSED ENTIRELY ON MBA CANDIDATES

Stacy Blackman Consulting

Of 501 total respondents to the SBC survey, 46% were U.S. citizens applying for MBA programs and 54% were internationals. Additionally, 37% of the respondents were female, 61% male, and 2% unspecified.

The survey differed in key ways from the recently released Application Trends Survey, an annual report by the Graduate Management Admission Council that polls more than 1,000 business programs of varied types, including non-ranked and non-MBA programs, about past-season application volumes. The SBC poll, on the other hand, asks questions directly of current-season applicants and focuses exclusively on MBA programs. Its findings on trends, such as the extent to which U.S. politics influence MBA plans, are based on questions and responses. And its main finding in 2018 is that the top U.S. schools remain, in the eyes of most candidates, the gold standard.

“Top-tier U.S. MBA programs offer the skills, experience, and networks to excel professionally within the U.S. and globally,” says Meghan Ellis, former admissions officer of Wharton Lauder. “The U.S. programs train students to navigate global management issues or even take their career overseas. … Regardless of political climate, graduates of top U.S. programs have the unique ability to successfully move back and forth between the U.S. and abroad, whereas graduates of even top international programs can find it difficult to recruit into post-MBA positions here in the U.S.”

NETWORKS, CAREER POTENTIAL AMONG APPEAL WITH U.S. PROGRAMS

Running down the list of what applicants love most about leading U.S. MBA programs, the SBC survey finds that it’s reputation, networks, career path potential, rankings, and the strong U.S. economy, in that order. Internationals are applying to a broader range of MBA programs, including EU and Asia “safety schools,” largely because of the competitive nature of top U.S. business programs, particularly the M7 business schools — and not because of anti-immigrant political rhetoric or H-1B visa concerns.

Indian nationals are the largest international MBA applicant group, representing 26% of the demand for U.S. MBA programs and 64% of the demand for EU MBA programs. The survey finds that the recent increase in EU MBA program applications is likely driven by Indian nationals.

Few respondents are exclusively aiming for international MBA programs, however, because of the greater prestige attributed to the U.S. MBA experience. Only 2% of U.S. applicants and 11% of internationals are applying to international programs exclusively, the survey finds. But there is greater diligence and selectivity of MBA programs among MBA candidates this year, and use of resources such as MBA admissions consultants correlates with the more reputable MBA programs.

‘REPUTATION MATTERS’

Survey respondents predict that there will be a continued decrease in international student representation at U.S. MBA programs as a whole — a phenomenon that is already well underway — and are comfortable with modest decreases without adversely changing the student experience. Others predict better career recruiting options because of the currently strong economy, especially for U.S. students. But top schools are expected to mostly dodge that bullet. “I would not anticipate seeing top-tier B-schools shrink the portion of their class that has an international background,” says Beth Tidmarsh, a former Northwestern Kellogg MBA admissions officer who now works on the Stacy Blackman Consulting team. “Top schools are committed to creating a class that brings in diverse perspectives from around the world to enhance student learning and the overall classroom experience. Managers and leaders of the future will tackle problems in a highly interconnected world, do business on a global scale, and the issues are only getting more complex.”

Overwhelmingly, respondents admire the resilience of the top programs and desire entry to them — often pointing to rankings as indicators of schools’ desirability.

“Throughout my 20-year career in MBA admissions, the one constant is the incredible allure of top programs, the high caliber of students that pursue those programs, and the core attributes that those programs seek,” Stacy Blackman says.

Reputation of MBA programs is the most influential motivator across the U.S. and international MBA applicants who participated in the SBC study — and, accordingly, demand for top-10 business schools in the U.S. dominated survey results. Getting into a top U.S. MBA program remains the main concern, reported by 85% of respondents, far surpassing concerns around MBA tuition costs and the current U.S. political or immigration climate.

“Reputation matters,” says Kim Ge, a former Chicago Booth MBA admissions officer who now works at Stacy Blackman Consulting. “Rankings are a significant driver of MBA program reputation. I personally saw the uptick in applications as Chicago Booth began to take the lead and tie for first place in the U.S. News & World Report ranking. Throughout my time as an admissions officer, there were countless times candidates called out the school’s ranking and its importance to them.”

Stacy Blackman. File photo

Again and again, respondents to the Stacy Blackman Consulting survey indicate that demand is directly related to MBA program reputation and brand. Top MBA program brands, including Harvard Business School, Stanford Graduate School of Business, and the Wharton School at the University of Pennsylvania, are likely to see a smaller decrease in applicant volume, whereas less-regarded MBA programs will experience a greater decrease in applicant volume in the current very strong U.S. economy. Irrespective of the U.S. political and economic climate, reputable MBA programs are highly coveted, with strong preferences among all MBA candidates for the top-10 business schools in the U.S.

Among U.S. MBA candidates, nearly all are vying for U.S. MBA programs: 98% of U.S. respondents are applying or planning apply to U.S. programs. In fact, U.S. programs are more sought-after than EU or international programs by a significant measure among all respondents: 57% of all respondents are applying for top-10 business schools in the U.S., the highest demand of all MBA program categories. The majority of the international MBA applicants, at 54%, favor U.S. MBA programs only.  

“Applicants understand an MBA as a long-term investment in their future,” Beth Tidmarsh says. “Thus, the long-term brand reputation and credential of a top-tier B-school is appealing, and international candidates may be willing to overlook the temporary political environment. The top-tier schools are coveted because the value of the education translates back to many countries around the world.

“Many international candidates considering an MBA in the U.S. have already attended undergrad, worked, or travelled in the USA. Familiarity with the U.S. may reinforce the advantages and opportunities of a U.S. MBA, while reducing their wariness of the current political climate,” Tidmarsh says.

Adds a current top-five MBA career coach who works for Stacy Blackman Consulting: “The reason top U.S. MBA schools are in demand is that top employers continue to source their talent from these pools of students — and this is especially critical for students wishing to make an industry and/or functional pivot post-MBA. Between the on-campus recruiting opportunities and broad-reaching alumni networks, there is tremendous value in a U.S.-based MBA.”

RESPONDENTS (& OTHERS) IN THEIR OWN WORDS

The SBC report includes actual answers from survey respondents. Among them:

• On top-ranked MBA programs’ reputation and brand: “I will only consider the USA for top MBA programs which will be beneficial for job applications. Otherwise, my prospects will be better in European schools.”

• On getting admitted: “I am only applying to UK programs and it is because my entire family is moving to the UK, so I want to stay close by, and I’d only consider a university in the U.S. if it’s top tier, but I feel like that might be too far of a reach for me. I applied last year and was rejected. I did have a lower GMAT score though, and my application was very rushed.”

Commenting on demographic trends, a former EU program admissions officer anonymously writes: “Certainly, the biggest growth in Oxford applications came from the Indian market. Part of this was down to us putting more focus on it in our recruitment. Although Brexit created a lot of concern with applicants from South Asia, American politics and uncertainty on policies was more concerning for the India market.” 

Source: Stacy Blackman Consulting

Source: Stacy Blackman Consulting

DOES THE U.S. POLITICAL CLIMATE MATTER?

Other respondents share their views on U.S. politics:

• “Given the U.S. current climate, I feel as though many of the world’s biggest social problems could be better tackled and improved using business-oriented solutions,” a U.S.-based respondent to the SBC survey says. “This realization has influenced my desire to pursue a long-term career in business, as opposed to government, therefore strengthening my desire to pursue an MBA.”

• “It doesn’t sway me much, but I’m proceeding with the assumption that a H-1B is highly unlikely,” says an international respondent.

• “I’m only considering M7 colleges because of political climate,” says another international respondent.

• “It’s definitely worrisome but I’m working around it by applying to EU schools too. While I’m only applying to U.S. top-three now, in another political situation I’d have picked U.S. top-10 over an LBS or INSEAD,” says another international respondent.

“I was going to apply this year anyways, but with applications dropping from international students I feel this helps me as an American citizen,” says a U.S. respondent.

“I still want to apply to U.S. MBA. But current situation scares me a little bit,” says an international respondent.

“No, it doesn’t sway me, but I’m concerned about the economic climate,” says another international respondent.

DON’T MISS GMAC SURVEY: 70% OF U.S. SCHOOLS SEE DROP IN APPS and WHO’S HARDEST HIT IN THIS YEAR’S MBA APP SLUMP?

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Stanford Wins Plaudits For A GMAT Slide - Poets&Quants

Stanford GSB students

Ordinarily, business schools like to trumpet increases in the average GMAT score for an incoming class. After all, that average metric is an indication of the quality of the incoming students.

And this year, there were plenty of schools that made significant improvements in their class GMATs. Columbia Business School’s average soared by eight full points to 732. MIT Sloan boasted a six-point rise to 728. Wharton and Chicago Booth also hiked up their class averages, though by just one or two points to 732 and 731, respectively. Northwestern University’s Kellogg School of Business this year maintained last year’s record GMAT average it set for an incoming MBA class at 732. The increases, moreover, were recorded in a year when applications were down.

Only one school among the so-called M7 favorites was the contrarian this year: Stanford’s Graduate School of Business, which has long boasted the highest GMAT averages, actually lowered this benchmark number by five full points to 732. The lower average score now puts Stanford in a tie with Columbia, Kellogg and Wharton for having the highest class GMAT average for any prestige MBA program.

Though Stanford is unwilling to publicly admit that it deliberately managed the GMAT number down, it’s almost certain that the school purposely sought to bring its 737 average lower to send a message to applicants. Kirsten Moss, assistant dean of admissions and financial aid,  believed its super high average of 737, achieved in 2016 and 2017, was actually hurting the school by discouraging highly talented applicants from applying to the GSB. “Some of our students tell me that they almost did not apply because they did not come from a ‘top’ university, or they were from the ‘wrong’ industry, or their GMAT or GPA was ‘too low,’” Moss told Poets&Quants in a recent interview. “This is heartbreaking to me.”

It’s not the first time that Stanford has dropped its GMAT average. In 2011, the entering class posted a record average of 739—the highest ever achieved by a prestige business school. The following year, however, the GSB brought the number down by 10 points to 729.

Some admission consultants have little doubt that this latest decline was deliberate. “A five-point drop at a school that has consistently had the highest average GMAT don’t happen by accident,” says Linda Abraham, founder and CEO of Accepted.com, a leading MBA admissions consulting firm. “I think it reflects Kirsten Moss’ focus on leadership and admitting people who will make a difference. She has made it clear that she is genuinely pained when she hears that potentially great applicants to Stanford did not apply because of ‘stats,’ specifically Stanford’s low acceptance rate and GMAT average for entering students.

The five-point decline, which now puts Stanford in a tie with Columbia, Kellogg and Wharton for bragging rights on the highest average GMAT for a prestige MBA program, may well have ranking consequences for the GSB. U.S. News & World Report uses the latest class average GMAT metric in its annual rankings. Because Stanford is disadvantaged by the way U.S. News calculates placement rates for MBA graduates, the lower GMAT could cause Stanford to fall on next year’s U.S. News list from its current fourth place perch.

ADMISSION CONSULTANTS PRAISE STANFORD’S DECISION

Kirsten Moss, assistant dean of admissions & financial aid at Stanford GSB

Admission consultants who regularly help candidates apply to Stanford are applauding the move by Moss and Stanford, believing that it will send a clear message to would-be applicants that the GSB is not over-indexing GMAT scores in its admissions decisions. “My theory is this is their way of signaling to the applicant universe that no one should be reluctant to apply to Stanford solely because of a modest GMAT score,” says Alex Min, chief executive of The MBA Exchange, an leading MBA admissions consulting firm. “This is also exactly what Kirsten said when I got to meet her in the summer of 2017.  Using the average score to convey that message is the most credible and convincing way I can think of they might do this.”

Judith S. Hodara, a co-founder and principal of Fortuna Admissions, calls the GMAT decline “a beacon of hope” for both candidates and schools. “No one really won in the increasingly uncomfortable escalation of GMAT averages among the top schools which we have seen in the past decade plus,” says Hodara, who had worked in admissions at Wharton for many years. “It seems pretty clear that this generation is no brighter than the previous one, so the ability to cancel scores and take the test multiple times has distorted the picture, leading candidates to believe that otherwise they will be out of the running based pretty much on seventy five minutes each of data sufficiency and critical reasoning.

“During my nine years in admissions at Wharton and in decision committees, we did not consciously craft a class with one eye on the GMAT average and how that compared to previous years. It remains a valuable measure, and is of course the only one data point that is directly comparable for all applicants. So I was always amazed how scores would track closely to previous years even without any deliberate attempts to do so.”

‘732 IS THE NEW BLACK’ IN ELITE MBA ADMISSIONS

Hodara also notes that when Moss headed up MBA admissions at Harvard Business School, she had been outspoken about making the GMAT optional. “I think that 732 is the new black, and speaks to the conviction that Kirsten Moss brings to her new role at Stanford to identify individuals who she and her team believes will truly make a difference and change the world,” adds Hodara. “During her tenure as Managing Director of Admissions at HBS 17 years ago that she was outspoken about wanting to make the GMAT optional. I’m glad that she has lost none of that belief, and hope that other M7 schools will follow suit to leave the GMAT arm’s race.”

And then, there’s also the issue of what high GMAT scores say about candidates, anyway. “As a ‘leadership geek,’ she probably knows that a stratospheric GMAT hasn’t been shown to correlate with leadership skills,” adds Abraham of Accepted.com. “It correlates to success in the first year of B-school. She is focused on admitting students of initiative and impact whom she feels will change lives, change organizations, and thereby change the world, not necessarily great test takers.”

What impact might Stanford’s decision have on other peer schools? Abraham isn’t sure. “It lessens pressure on other elite programs to keep aiming for ever higher average GMAT scores, but I’m not sure it will end it because some other program may want to claim the highest average GMAT and best ‘class quality’ as reflected by that number,” says Abraham. “Declining application volume and reduced international applications may also play a role in reducing the pressure to aim ever higher for that average GMAT score.”

DON’T MISS: STANFORD MBA’S GATEKEEPER ON A ‘HEARTBREAKING’ MYTH or STANFORD CLASS OF 2020 PROFILE

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What B-School Deans Say About The Cost & Value Of An MBA - Poets&Quants

Duke Fuqua Dean Bill Boulding. Carnegie Mellon Tepper Dean Robert Dammon. And Notre Dame Mendoza Interim Dean Martijn Cremers.

All three squared off in this wide-ranging discussion on the value of the MBA and the future of management education at the CentreCourt MBA Festival in Washington, D.C., on Sept. 20th.

Moderated by Poets&Quants founder and editor-in-chief, John A. Byrne, the panel explored the high costs of the degree, what people actually learn in an MBA program these days, and how what they learned has changed over the years.

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HBS Interview Prep: Your Post-Interview Reflection - Poets&Quants

MBA applicants are abuzz: Harvard Business School releases its round 1 interview invites on Monday, October 1, with the second wave going out on Thursday, Oct. 4. After more than a decade working in admissions (my experience includes top programs such as INSEAD and HBS), I can affirm that no one gets an invitation to interview that doesn’t have a really solid chance of being admitted. Still, the reality at ultra-competitive HBS is that you can have a flawless interview and still not land a place in its incoming class. That’s why leveraging its “Post-Interview Reflection” to your advantage is imperative.

Earlier this year, I wrote about the key differentiators that make the HBS interview unique, along with six specific tips for making the best possible impression in your 30-minutes to shine (Ace the HBS Interview: An Insider’s Advice). The interview is your opportunity to let your personality and charisma shine through – traits which are difficult if not impossible to correctly discern from an application form or essay. It is also the opportunity for the committee to see how you handle pressure, and being put on the spot, which is something that will happen in case discussions in the HBS classroom.

But your work isn’t over when you walk out the door. Among the many elements that make the HBS interview distinctive is its post-interview reflection, which you have just 24 hours to submit to the committee after your interview. At first blush, this might feel like a timed test version of the HBS essay (‘what more would you like us to know as we consider your candidacy?’). Instead, think of it as a final opportunity to set yourself apart as the thoughtful, incisive human that you are. HBS, in effect, is giving you the chance to have the last word before making a final decision. This is a rare gift and you’ll want to set yourself up for success to make the most of it.

First, do not approach this as another formal essay, which is the first official caution noted on the HBS website about the Post-Interview Reflection. Don’t even think about writing it until you’ve distanced yourself from the interview experience by at least a few hours. For one, it’s positively essential that your response not be pre-prepared (your savvy admissions committee members can usually sniff this out immediately, which will be a red flag.) The purpose of this exercise is to see how candidates think on their feet.  Most of all, the interview will go so quickly, you may be surprised how much ground you won’t cover that you would have expected to discuss.

You’ll want to craft your reflection within the context of the actual conversation. Demonstrating your depth of insight, and ability to cross-correlate, is vital. Consider carefully: What else did you want to say? What would you like to develop, or correct? Keep in mind that HBS is looking for authenticity and sincere introspection.

Think of this exercise as a post-meeting memo thanking key participants for their input and reiterating the key selling points you want them to remember.

 

Top Tips for Writing Your Post-Interview Reflection:

1. Take notes about your conversation.
   

It’s best to find a quiet place to take notes immediately following the interview. Consider:

• What your interviewer asked you
• What you said
• What you didn’t get to say but wished you had
• Answers you gave you are unhappy with
• Did you hit all your key selling points?

 

2. Next, do some further introspection.
   

   These steps you can do a little later as you will likely need a mental break. Think of:

• The key selling points that you may not have fully covered or could expand on more
• Two key selling points that will be important factors in your admission
• What makes you unique and how you can apply that uniqueness to benefit HBS

 

3. Craft your reflection, keeping your thoughts to roughly three-quarters to one page in length.

A potential flow might look like this:

• First paragraph: Thank the interviewer(s) and recap, at a high level, what you enjoyed about your dialogue. (You need to show you did not write this reflection before the interview and mentioning specific interview talking points will help establish that.)
• Second paragraph: Go deeper on topics delved into during the interview, taking the opportunity to add texture and dimension to what was discussed. This is an important way of showing them the depth of intellectual curiosity you have. (This is also your opportunity to course-correct if you felt you could’ve taken an answer in a better direction.)
• Closing paragraph: Pull back to offer a 30,000-foot reflection on what the entire process has meant to you, sharing any deep insights you’ve had as a result, and what lies ahead for you. (Remember to keep the memo positive and concise.)

As your interviewers reflect on their experience with you during the brief (believe me, it goes by quickly) 30-minutes you have together, your Post-Interview Reflection will leave the interviewer (or interviewers) with a core impression of who you are. Delivering one that’s both thoughtful and self-aware can tip the balance in your favor at decision-time.

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Karla Cohen is an expert coach at admissions coaching firm Fortuna Admissions and former Associate Director at Harvard Business School. Fortuna is composed of former admissions directors and business school insiders from 12 of the top 15 business schools.

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Holekamp family funds $1K grants for student startups - Olin BlogOlin Blog

Olin now offers up to 20 grants a year of $1,000 to students who need a small injection of capital to get a startup business off the ground.

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Why should you opt for BBA before joining an MBA course? - Jagran Josh

Still confused if you should join a BBA course? Read on the 5 super compelling reasons that make BBA an ideal graduate level course for MBA students in India.

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GMAC Survey: 70% Of U.S. Schools See Drop In Apps - Poets&Quants

The Graduate Management Admission Council strives mightily to put a happy face on bad news in its latest report, but it’s a tough task. As Poets&Quants has been reporting, data from multiple sources over the last year has shown a large, consistent drop-off in application volume at U.S. business schools — and the annual Application Trends Survey from the organization that administers the GMAT corroborates the downturn. It also explains where some of those students who eschew the States are taking their talents and tuition dollars.

According to GMAC, which looked at graduate- and doctoral-level programs that saw a combined 466,112 applications during the 2018 application cycle, U.S. business schools experienced a nearly 7% decline in app volume from last year, including a 1.8% decline in domestic applications and a 10.5% drop in international volume across all program types. Most U.S. programs (53%) surveyed by GMAC reported application declines, including 70% of full-time two-year MBA programs.

GMAC does a good job of focusing on the positive, noting that demand for graduate business education is “stable” overall since application volumes are up in Europe, Asia-Pacific, and Canada — really everywhere but the U.S. Asia-Pacific programs had an 8.9% increase, Canada realized 7.7% growth, and Europe had a 3.2% increase in application demand across all program types — allowing GMAC to note that the total number of applications received by the 336 MBA programs that participated in both this year’s and last year’s surveys did, in fact, remain stable from 2017 to 2018 (+0.04%).

“Demand for graduate management education is stable year over year. Non-U.S. programs continue to thrive,” says Sangeet Chowfla, GMAC president and CEO, “highlighting the continued emergence of enhanced educational and professional opportunities outside the United States.”

HARD TIMES ON THE SECOND TIER

Christie St. John, Vanderbilt Owen director of MBA admissions. Vanderbilt photo

Inside the United States, well, that’s another matter. In the 19 years GMAC has been conducting its application trends survey, the 58% of U.S. full-time MBA programs (including one-year programs) reporting declining application volumes in 2018 is the second-highest percentage of schools, after 2004, when 76% reported declines; similarly, the 65% of full-time two-year MBA programs in the U.S. reporting declining applications this year is the second-highest, eclipsed only by 2004’s mark of 73%.

Chowfla points to a few well-discussed factors to explain the lag in U.S. business school demand, including a low unemployment rate, which means “young professionals have an increased opportunity cost of leaving their jobs in pursuit of an advanced degree,” and “a disruptive American political environment and the emergence over the past decade of tremendous educational and professional opportunities abroad.” Combined, he says, these factors help explain “why demand in the United States has dropped from previously record-high application volumes at some schools.”

The disaster in demand at U.S. schools is pervasive, but let’s be honest: MBA programs at Harvard, Stanford, Wharton, and the rest of the elite U.S. B-schools aren’t going anywhere. The real pain is being felt further down the food chain. So what’s to be done at the second tier?

John Roeder, assistant dean of graduate admissions at Southern Methodist University Cox School of Business in Dallas, Texas, says change is coming at the smaller schools. Recruitment adjustments are likely necessary to stave off real pain. “Smaller programs that rely significantly on the international intake will likely be impacted by a diminishing applicant pool prior to those schools who have more selective and smaller international intakes,” he tells Poets&Quants. “Some programs that are heavily reliant on the international applicant pool will be forced to change their recruiting strategies to ensure that they are able to fill their classes with a more balanced intake. If programs continue to see a decline in application volumes, they will need to find a way to increase yield, which will mean increasing scholarship funding to admitted students.  Right now is an excellent time to be applying to US schools as an international applicant.

“From the applicant perspective, there is less competition and more scholarship funding available.”

AT SMALLER SCHOOLS, STRATEGIES FOR ADAPTATION

What about Roeder’s home, the Cox School, a relatively small program with 123 members in the Class of 2019? Cox’s 2017 intake was 16% international, with nine countries represented. While it saw an overall increase in full-time MBA application volume this past year, Roeder says, there was a “noticeable” decrease in international applications within the overall applicant pool — but the school saw the downturn coming and prepared. “Our strategy for the past few years has been to focus on a strong domestic intake with a highly selective international intake,” he says. “This ensures that our international students that we do bring into the program are successful in the employment market at graduation.”

Before joining SMU Cox, Roeder was the director of MBA admissions at Vanderbilt University’s Owen Graduate School of Management in Nashville until 2012. His successor there, Christie St. John, says that relatively small MBA program — the Class of 2020 numbers 179, 16.4% of whom are from one of 15 countries outside the U.S. — will focus on reaching smaller markets, “where the big MBA fairs do not go,” to find candidates.

“We are offering one-on-one counseling to prospectives to help them decide if and when an MBA is right for them,” St. John tells Poets&Quants. “We are also doing more personal outreach to prospectives in our database, especially those who may have been in the system for two or more years. We are soliciting help from our students and alumni to connect with prospectives and applicants to talk about their experience at Vanderbilt. We are hosting visits more often and tweaking our visit agenda so candidates have a better understanding of our culture and values. It takes a lot of time and energy, and we are a small staff. That said, we all love Vanderbilt and are enthusiastic about telling prospectives why, so the extra work seems worth it.

“Luckily, we don’t have to bring in a class of 500. We are small and intend to remain that way. We can continue to be selective in our admissions to bring in the type of student we want and the type of student who will thrive in our community. Dean (Eric) Johnson and our faculty are responsive to the needs and desires of our corporate recruiters and our students with the result that we have increased the hiring of professors who can and who want to meet those needs by updating and revising the curriculum.

“Yes, this downward trend is disturbing, but it isn’t the first time and it likely won’t be the last time that we will see this. Strong schools will survive by examining their offerings, and by looking at new options for the two-year MBA. Vanderbilt will be one of those schools.”

Poets&Quants has been reporting on the impact to U.S. schools of international students choosing to study outside the United States since before there was data to show the phenomenon was happening. But fluctuations in demand are nothing out of ordinary, if the situation is looked at with a long enough lens.

“In my 20-plus years in MBA admissions, I have seen demand rise and fall for the MBA,” Christie St. John says. The big changes usually come in response to economic conditions — the collapse of the Argentine and Brazilian economies, the dot.com boom, and the U.S. real estate collapse a few years ago — or because of international events like 9/11, the Afghan and Iraqi wars, and the current administration’s hostility to immigrants, including students. “So it is not too surprising to see that the number of GMAT test takers and application numbers are once again on a downward trend,” St. John says. “This is never easy to link to just one specific event, but in a general sense, I think it is partially due to fear and uncertainty — fear that the ROI is not what it once was, and uncertainty about where the economy is headed.

“What is most concerning is the marked decrease in international applicants to U.S. schools. For years, we have seen a steady stream of candidates from all over the globe, the majority of whom were headed to the U.S. Foreign national students add so much diversity of thought and experience in the classroom. This is beneficial to U.S. students and to the foreign national students, because it helps both to understand the intricacies and importance of cultural differences, not just in a business sense but in a political and economic sense, and it dissipates mistrust of ‘the other.’

“With the cost of education reaching all-time highs, young people are deservedly anxious about taking on more debt for the MBA and leaving a secure job. And another factor in the decrease in popularity of the ‘traditional’ MBA is a bit of our own doing: By trying to remain relevant and to ensure a revenue stream, B-schools are launching more and more one-year programs, which cannibalize the two-year MBA. That isn’t news to anyone, but the question is, will specialized master’s degrees end up winning the race? Will companies decide to take on employees with less experience and who also cost less?”

St. John believes the two-year MBA will survive because it remains the best choice for those interested in graduate business education, especially for those seeking to change careers. “One gains a broader and deeper understanding of business practices, one has the chance to try out a new function or industry with no detrimental effect on the resume, and one’s overall experience is much richer,” she says.

Source: GMAC

STUDENT MOBILITY REMAINS A KEY DETERMINANT

The ability to attract top international talent continues to be a critical determinant to programs’ overall application volumes. This year, 65% of Canadian programs and 63% of European programs report an increase in international applications over 2017, with the majority of applications received by Canadian and European programs this year coming from international applicants. By comparison, just 28% of U.S. programs reported growth in international application volume.

But even as most programs in the U.S. reported declining demand from non-U.S. students, application volumes from domestic candidates also were soft this year, with only 4 in 10 reporting growth in domestic application volume. One bright spot for U.S. programs: Master of Data Analytics programs, most of which report application volume growth this year — and counter to the overall trend, they report more international application growth than domestic application growth.

“Access is a critical issue facing higher education,” says Bill Boulding, dean of Duke University’s Fuqua School and chairperson of the GMAC board of directors. “Economic indicators in the U.S. are strong, but if we are to maintain such growth and productivity we need to make it possible for people from all different regions and backgrounds to study and work in the location they desire.

“If that doesn’t happen, we limit not only the possibility of an individual, but also continued economic prosperity in the U.S. and growth around the world.”

OTHER SURVEY FINDINGS

Full-time, two-year MBA programs are still the most in-demand program type overall, reporting a similar volume of applications in 2018 compared with last year. The majority of European Master in Management and Master of Finance programs report growth in demand. Meanwhile, nine in 10 participating programs report that the applicants this year are similarly or more academically qualified than candidates last year — and more programs reported application growth among women than men, with 1% growth in applications from women in Asia-Pacific, Canada, and the U.S.

GMAC conducted its 19^th annual Application Trends Survey from early June to mid-July 2018. Survey findings are based on responses from 1,087 graduate business programs at 363 universities worldwide. Participating programs are located in 44 countries, including 43 states and the District of Columbia, and include MBA, business master’s, and doctoral-level programs.

MBA PROGRAMS Y-O-Y CHANGE

Source: GMAC

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Source: GMAC

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Source: GMAC

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Source: GMAC

DON’T MISS WHO’S HARDEST HIT IN THIS YEAR’S MBA APP SLUMP? or THE DATA IS IN: HUGE DROP-OFF IN INTERNATIONAL MBAs

The post GMAC Survey: 70% Of U.S. Schools See Drop In Apps appeared first on Poets&Quants.

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