The MBA: A Brief Introduction
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A Master of Business Administration (MBA) is an advanced qualification for those wishing to advance their careers and business skills. MBA programmes are regulated by accreditation bodies and have grown to become an instantly recognizable symbol of management prowess. In this guide, we answer the common questions potential MBA students often bring up and provide trusted resources for further reading. |
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It should be noted that while the MBA is a universal qualification, the following relates mainly to study in the UK. Much of the material here will be of use to international students also, but readers from the US may like to visit this resource for further reading.
Contents:
- What is the Difference Between the MBA, MA and MSc
- Which Is Right For Me?
- Who Should Undertake an MBA?
- How Hard is the MBA, and What Are the Pass Rates?
- Admission Requirements
- MBA Course Structures
- Method of Study and Subject Matter
- The Best UK Institutions for MBA Study (by Salary)
- Costs and Financial Aid
- Online Learning – Beware Scams
- Find out More
1. What is the Difference Between the MBA, MA and MSc
The MBA is a postgraduate qualification that differs from an MA or MSc in a business subject in a few subtle ways.
With an MBA course, suitable candidates will have already gained a graduate qualification, but this is often in an unrelated field. The MBA is intended to apply general financial knowledge to an existing field of interest, albeit at an advanced level. The general aim is to prepare students for management in their industry.
Typically, an MA (Master of the Arts) follows on from a business degree and is used to specialise in a particular field of business, with International Business or Business Management being two of the most popular choices.
Additionally, an MSc (Master of Science) can be deemed as an even more specialised business studies program and is heavily research-based in fields such as accountancy or economics.
Dr. Geeta Lakshmi from the University of Lincoln offers a further dissemination of the differences and other useful advice on this website.
2. Which Is Right For Me?
There is no right or wrong answer when it comes to choosing which postgraduate study options are right for you. Whereas the MBA covers a broader core range of studies, an MA is deeply rooted to the major subject chosen by the student (and arguably more so with an MSc).
An MBA is, generally speaking, deemed to be a more universally accepted qualification as it covers the whole field of business administration. It is intended to address the problem of technical experts not understanding business administration and, conversely, with business managers not understanding the technical side of their industry.
Since the MBA is arguably more universally recognised and prepares students in various areas of business administration, it is apparent why the qualification is deemed more attractive by potential employers. However, MA and MSc programmes are usually the best path for those interested in pursuing a specialist career in business that is not necessarily management-based.
Finally, it is worth considering that MBAs have taken something of a battering in terms of reputation since the economic crisis. In particular, anyone expecting to walk into a top financial job directly after finishing their course may wish to check their expectations. However, it is also of note that this knock in perceived MBA value is more prominently felt in the U.S. and was triggered after the Dean of the University of Virginia’s business school criticised the qualification – a good article analyzing the topic can be read on this website.
3. Who Should Undertake an MBA?
While there is no denying that an MBA in your field of interest can, for the most part, advance a business career considerably, there are a few guidelines on the type of person most suited to an MBA qualification. In summary:
- Applicants typically have at least a few years working in a professional capacity in addition to a graduate degree (though the degree in question does not have to be business related). It is rare to see an applicant enroll on an MBA directly after completing a bachelor degree.
- While it can be argued that the UK system of study is more flexible with options to increase or decrease overall study time, an MBA is still expensive and financial security is essential.
- In certain situations it may be advisable to move closer to the school of choice. WhatUni.com provides a useful function for searching business courses by geographical region.
- If financial security and the inability to relocate are an issue, a distance learning course is a highly recommended option. However, those embarking on this method of study can expect virtually no spare time in between working and studying.
4. How Hard is the MBA, and What Are the Pass Rates?
In a word, very. The MBA is almost universally recognised as one of the most prestigious business qualifications in the world, chiefly because so few people succeed in attaining one.
While the longer course options help to distribute the study load over a few years (and thus alleviate stress to some extent), the converse is also true and full-time students can look forward to a seemingly unbearable amount of pressure. The decision to enrol on any MBA programme should not be taken lightly, and the ongoing financial commitments only adds to the intensity.
With pass rates between 80-95% for most UK schools, the figures paint a different picture. However, consider that around fifty applicants are turned down for every one admitted, and it is clear that the high pass rates are down to an extremely tough vetting process.
This also means that spending a large amount of time on your application is crucial. The resource on accepted.com is invaluable and a good place to start, but research and careful planning before putting pen to paper should not end here.
5. Admission Requirements
The prerequisites for entry onto an MBA programme in the UK vary and are mainly based on individual merits. As mentioned the application process is very involved and the higher ranking schools are more stringent in their selection process, but as a rule of thumb:
- Applicants must provide a proof of a previous degree (of at least BA standard).
- If English is not the applicant’s first language, it is very likely that he or she will be asked to take a TOEFL or IELTS exam to prove their language proficiency. This may be waived if the majority of the applicant’s higher education was completed in English.
- Most schools look favourably on those who have completed the GMAT (Graduate Management Admission Test), and for some it is a necessity – more information on the GMAT can be found on this website.
- Generally, a minimum of two years of full-time, postgraduate work experience is required.
- In an application, it is always beneficial to show other achievements outside of full-time work and study and solid personal, business and academic references should be included.
Along with accepted.com’s guide to planning an application, Kaplan also provides more information on what is likely to be required and how best to prepare for it.
6. MBA Course Structures
In the UK, there are a variety of course structures to suit individual circumstances. Here’s a breakdown of the popular options:
Full-Time MBA Programmes:
These are ideal for those able to dedicate their time solely to study and who have no (or little) work commitments. The-two year course is spread over four semesters, the first two focusing on core competencies and subjects while the latter two are customizable depending on the student’s interests.
The one-year course is more common in the UK than in the US, and is predictably more intense (and generally more selective on intake). Students have less time off and the course load is a lot heavier with an increased frequency of examination – sometimes referr to as the ‘Accelerated MBA’, the obvious bonus is that the course is completed in half the time.
Part-Time MBA courses:
Generally scheduled to run in the evening, classes contain the same subject matter as any other MBA course but with a program designed to slot in around full-time work. This is a popular option for businesses sponsoring employees to earn the qualification without taking time out from the workplace, and it is also ideal for private students who don’t want to put their career on hold to study.
There are two downsides to the part-time MBA – firstly, finding and successfully enrolling on a part-time program can be difficult and the course can take as long as five years to complete.
Online MBA Programmes:
The benefits of distance learning are clear and online study is another popular option for business sponsorship or those with work or family commitments. Unlike the part-time option, the pacing of some online courses can to some extent be tailored to suit the student – however, self-discipline is a prerequisite and it is vital to ensure the institution itself is not bogus.
EMBA:
The Executive MBA programmes are campus-based with classes usually taking place at weekends. The entire program is flexible and usually takes around two years to complete, though it is aimed at executives or business managers with many years of prior experience.
7. Method of Study and Subject Matter
Teaching takes place mainly via structured lectures in the case of class-based programmes and involve group case discussions, tutorials and workshops.
Group work factors massively during MBA study and you will be typically placed in groups of four to eight in order to complete such assignments. Class sizes can vary from twenty to over three-hundred depending on the University.
While online study features the same subject matter as on-campus learning, interaction is conducted via telephone and video link alongside an individual’s work on written assignments.
The first half of any MBA program focuses on a set core modules before students are given some freedom to choose their own specialities. Individual module titles vary depending on University, but the general fields covered include:
- Accounting
- Business Management
- E-Business/E-Commerce
- Economics
- Entrepreneurship
- Finance
- Global Management
- Human Resources Management
- Information Systems
- Marketing
- Operations Management
- Strategic/Risk Management
- Technology Management
8. The Best UK Institutions for MBA Study (by Salary)
Schools and Universities offering MBA programmes are frequently ranked by top financial institutions and accreditation bodies. These official rankings combine a whole host of factors to judge the quality of the MBA program, and the London Business School frequently tops the league tables.
However, when judged purely on the average alumni salary, seven of the top US educators eclipse the London Business School (some by as much as $22,000 per annum).
At the time of writing, there are currently forty UK institutions offering MBA programmes. Here is a summary of the top ten based on the earnings of their MBA postgraduates (weighted for salary variations between industry sectors) according to the Financial Times Global MBA Rankings.
We have also included the percentage of those who found employment, or accepted a job offer, within three months of completing their MBA. Note that these figures are drawn from those who have completed full-time MBA programmes on either a one or two year schedule.
- London Business School
Average salary: £88,890 ($142,430)
Employment: 81%
- University of Oxford: Said
Average Salary: £84,927 ($136,080)
Employment: 74%
- Crangfield School of Management
- University of Cambridge: Judge
Average Salary: £78,446 ($125,690)
Employment: 89%
- City University: Cass
Average Salary: £75,289 ($120,632)
Employment: 93%
- Imperial College Business School
Average Salary: £75,100 ($120,306)
Employment: 85%
- Lancaster University Management School
Average Salary: £76,235 ($122,125)
Employment: 78%
- Manchester Business School
Average Salary: £69,396 ($111,150)
Employment: 93%
- Warwick Business School
Average Salary: £69,129 ($110,700)
Employment: 89%
- University of Strathclyde Business School
Average Salary: £68,688 ($109,994)
Employment: 71%
Average Salary: £83,228 ($133,352)
Employment: 95%
9. Costs and Financial Aid
As well as living costs and loss of earnings while undertaking full-time MBA programmes, tuition fees can be very expensive. These vary depending on institution, but for comparison the following course fees have been published to date for enrolment the next academic year. These apply to full-time study and apply to either the one-year or two-year programmes:
- Said Business School, Oxford: £52,000 ($83,321)
- London Business School: £49,900 ($79,958)
- Manchester Business School: £34,900 ($55,922)
- Warwick Business School: £22,850 ($36,612)
- University of Bradford: £19,950 ($31,965)
- Southampton School of Management: £16,750 ($26,838)
Part-time and online MBAs also vary in price, and although most are not significantly cheaper than full-time study (and in some cases are more expensive) since the programme is typically spread over a number of years, by proxy so are the tuition fees.
Another consideration with full-time study is that living costs will need to be covered, which vary between £10,000 to £20,000 ($16,020 to $32,040) depending on location.
Many institutions offer Scholarship and Bursary Schemes which release funds to help offset fees. The amount of help available varies massively, as do the criteria for eligibility – consult your prospective school or University for details.
An excellent resource with a useful summary of contacts for MBA student-specific financial loans can be found on this website, which also includes further information on grants, scholarships and bursaries.
10. Online Learning – Beware Scams
Earlier we touched briefly on making sure your prospective programme is accredited by the AMBA (Association of MBAs).
As accreditation is very standardised in the UK there is little room for bogus operators to scam convincingly, but nevertheless some people do get sucked in.
The following are not accredited courses though they sound genuine, as through a mix of vagueness, using names from actual program modules and playing on the distinctions with similar MA and MSc degrees:
- MBA in Strategic Management
- MBA in E-Business
- MBA in Economics
- MBA in Management
- MBA in Finance
- MBA in Marketing
In the UK, a prospective student should always check on the AMBA site to find out if a programme is genuine and accredited. Otherwise, any money spent on such an MBA is wasted.
11. Find Out More
In this guide, we have taken a realistic look at some of the positives of the MBA qualification. It is only fair to balance it with a well-written article criticising MBAs penned by Geoffrey James. The discussion in the comments section is also worth reading.
Many Universities and schools offer MBA fairs – we recommend the ABS (Association of Business Schools) website for finding such upcoming events, or contacting the local institution directly for more information.
The Association of MBAs’ homepage is the first port of call for information on MBAs in the UK. However, Wisebizz also offer a categorised series of mini-articles on MBAs both in the UK and internationally – use the post-it notes on the right to jump to the relevant section.
