Should I do an MBA? MBA explained for dummies

What is an MBA?

An MBA is a Master of Business Administration, typically a 2 year degree, but some schools have 1 year MBAs (Insead and IMD). You'll learn mostly about management and leadership, although you can specialise and have a major in finance, marketing, strategy, etc.

You will get taught in small groups of 30-40 people through a combination of case studies and lectures. There are also significant "off campus" learning opportunities such as club activities, trips to companies, competitions, etc, and MANY social events for you to network with fellow students and potential employers.

Typically, the MBA is a stepping stone for associate positions in investment banks, consultant positions in strategy consulting firms (McKinsey, Bain), or for managerial positions in the industry (P&G, GE, IBM, Google, etc.)

Why do I need an MBA?

Often, the MBA is views as a way to "transition" into something. For bankers, it can be a way to transition into Private Equity or Hedge Funds, to another investment bank or to change career totally and go into different industries, or even start a company. For people in the industry, it can be a good way to break into investment banking or consulting. For others, it represents an opportunity to start a business, or change function and country: for example, from engineer in India to Venture Capitalist in the Silicon Valley in California. Because a lot of firms will come directly to campus to try to woo you, you'll be able to get a good understanding of what you want to do, and will get plenty of opportunities to ask directly.

You learn a lot during the MBA in terms of academics and leadership, and it is a lot of fun - but the most important aspect is the social life and networking with your fellow students. You will learn a lot from your classmates that come from different countries and that have different jobs. Also, if you go to a top MBA, in 5-10 years after graduation you'll have good friends in very senior positions in every industry! This is a MAJOR benefit, and the reason why schools like Harvard, Wharton and Columbia are so much represented among top management.

Finally, post MBA, you are likely to increase your earnings significantly, especially if you plan to move from the industry to consulting or banking.

Most companies like MBAs because of the potential network they have, because they often appear as well rounded individuals with a broad knowledge of various functions (Marketing, Operations, Strategy), and because that is just another "filter" to identify top talent. Getting accepted into a top MBa is a lengthy and hard process, therefore this shows very strong ambition and hardworking potential.

When should I do an MBA?

I'd say the best time to do an MBA is after 2-3 years experience: too early and you won't get in and will be too young when you come out, and too late and you'll be perceived as too old by a lot of firms on graduation. Also, your opportunity cost is higher when you are older. As much as you can, try to do your MBA as soon as possible and prepare when you are starting your first job.

Where should I do my MBA?

This may sound obvious, but you should really aim for a top 10 MBA: Insead, LBS and IMD in Europe, and Wharton, Harvard, Columbia, Stanford, Chicago, MIT, NYU Stern and Kellogg in the US. This is because an MBA is expensive - going for an average brand will not give you much return on your investment (unless its paid by your company), and you would be better off getting experience on the job. Top MBAs will give you the learning experience and the network you need, but doing an average MBA will be very frustrating because you'll realise that all the top firms where you want to work are NOT coming to your campus, the teachers are not that great, and most students are not really ambitious, but you will still end up paying the same kind of money.

Just keep applying to the top 10 if you fail the first time!! it is just a matter of effort and good advice. It may take some time and lot of efforts, but you will get in, and you won't regret it!

What else should I know about MBAs

It is very expensive. BUT, there are many ways to finance this through scholarships, including Fulbright scholarships, Rotary scholarships, the school's scholarships, your country's scholarships, etc. Banks also give out low interest loans in many countries. Just do your research in advance. Also don't forget that most internships pay very well. Another good piece advice is to hedge your currency risk if you do your MBA overseas, because currencies can vary a lot over the two years.

It's fun. Doing an MBA is a lot of fun and probably your last chance to have a break for 2 years! You'll meet a lot of interesting people from everywhere around the globe, study together, go to interviews together, travel together, and probably get drunk together!

A top MBA doesn't give you the right to a job. A lot of companies come to campus, but recruitment is still very very competitive. Getting accepted at Stanford doesn't guarantee you the job of your dreams, but you'll get a good shot at it. Even if you don't get your dream job at graduation, if you keep trying and mobilise the alumni network, you will get it.

Its definitely not a holiday. Between classes, exams, reports to write, club activities and recruiting, you easily end up studying until small hours of the morning everyday. It varies between schools, but an MBA is not for the faint hearted, and the competition for grades, jobs and club leadership positions is going to be fierce!