Re: The Coming B-School Collapse
[#permalink]
09 Dec 2009, 14:41
I don't know if you can call it a "collapse", since that seems a little permanent to me. I do think that the class of '08 and '09 did get screwed over, since they went in with unrealistic expectations bc of the boom market only to graduate during the recession. What I think will happen is a gradual adjustment. A lot of the lesser know MBA programs see a drop in the number of applicants. Fewer students from the top schools will be gunning for banking, PE or HF jobs. Instead, they might look at corp development, mutual funds or marketing etc. Keep in mind those positions offer a decent salary, but not the huge bonuses of the boom.
People were saying the same things about the computer science industry in 2003, but I think it bounced back nicely. Yes, a lot of less well known institutions saw a big drop in the number of students applying for computer science majors, but enrollment at the top schools remained steady. These graduates were no longer looking to work for a startup, IPO and then make millions of dollars. Instead, they found jobs at established companies. Those who went the startup route, did it bc they are actually interested in developing something new, rather than because they think they will get tons of money through an IPO. I think the same thing will happen for finance.