Monday, August 18, 2014

Advantages of a One-Year MBA

“Faster…Smaller…Cheaper" is becoming the mantra for business schools?

Popularized in Europe 50 years a one-year MBA is designed to give most of the education of a two-year program for less time and less money.
How much cheaper? Recently, Cornell University launched a tech-driven, three semester MBA program in New York City for $95,000, $20,000 less than its two-year program. 
Northwestern’s one year program coming in around $80,000, about $38,000 less than its two-year counterpart according to U.S. News and World Report data.
In 2013, 55% of the 189 one-year MBA programs generated a higher number of applications over the previous year according to the Graduate Management Admission Council (GMAC). 
Other advantages: 
1. Students only loose 1 year of income. 
2. They have much less debt.
3. They do not lose two years "real experience" in the working world.
According to a 2013 GMAC study, only 53% of one year students had received job offers in March, 8% lower than full-time MBAs in their second years. When it comes to compensation, two-year MBAs earned 9% more than their one-year cohorts.
Other disadvantages, according to  The New York Times
1. No time abroad.
2. Fewer electives
3. Can join, but can't lead clubs. 
4. Less time to really forge lifetime connections and networks. Less time for transformation. 
Top institutions like Wharton and Stanford have declined to launch one-year programs. “We haven’t felt comfortable offering a one-year M.B.A. here,” observes Madhav Rajan, who heads Stanford’s full-time M.B.A. program. “[With a two-year program], you get to know your classmates and interact with your professors over two years. The whole notion of our M.B.A. is that it’s a transformative experience.”
For the full article, please see Poets & Quants

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