Does it make sense to go for an Executive-MBA now?(CoVID-19 aftermath)

Question

All of you are busy in getting your profiles evaluated, busy with GMAT and knowing the status of rounds, applications etc but let me bring forth one single question that's lurking on lot of people's minds and would be nice if the forums views are shared on this topic: ' Does it Make sense to go for an Executive MBA, now?'

The COVID-19 has unleashed a crippling blow to the Industry- manufacturing and services alike (only agriculture is doing fine to some extent but the agro-supply chains are also strained). The IMF projects the India GDP @ 1.6% and there are several other projections which predict a very less and pessimistic GDP growth rate. Though the P.M has doled out the 20 Lakh crore Economic package to make India self reliant, there is always a time lag between injecting capital and for the affect of that capital to translate into growth, consumption etc (The Virtuous cycle of Growth).

Why is this Important?

The Executive MBA programs are short programs of one year unlike the traditional programs and most of the people going for an Exec-MBA are already in their current jobs. Given the current Economic situation, for the things to get back to normal and for the growth to kick in, It would take ATLEAST 1-2 years (as this is equivalently dubbed as 'The Great Recession')? 
Does it make sense for the candidates to take loans and get into an Executive-MBA program (opportunity cost factored) to only sail through a very turbulent and uncertain times?

Unless your perspective of doing an MBA is either to go back to the company and join, startup(entrepreneurship) if you are planning on going for a placement which will help you get a better salary etc- does it make sense to go now? (Now, of course let's not get into the softer aspects of networking, learning etc) stick to purely RoI terms and have a healthy discussion.

rajivism2k9 · Answer

Great Topic....

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basecamper09 · Answer

IIMs might (if Govt provides subsidy which is a far cry as it is already leveraged)- ISB no chance- it is a PURELY profit driven enterprise.

I think the ideal scenario would be to make the Fee Variable- 50% -70%is Fixed+(50% -30%) Dependent on Graduation-outcome like placement package etc where if a candidate recieves a threshold placement, full fee would charged and if there is no placement, a partial sum would be refunded (of course, with all logical riders intact).

This will motivate the candidates to go ahead and put a fixed cost as an investment

bubu40791 · Answer

After every recession, the world has always come out stronger and better than it was earlier. That has happened by make use of the colective learning gathered during the phases of economic downturn.
Same goes with us as an individual. We can either wait out the recession period till everything comes back to normal, or else spend the time in learning and come out better and more enriched.
Best part is, if we go for an executive mba now, the time when we pass out will the time when the recovery is in full force.

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bubu40791 · Answer

Structly speaking about ROI, one should join colleges with the minimum course fee but maximum career impact. For example, in India, ISB will be the least in terms of ROI, and IIMK(PGP-BL) would be the best, considering one goes back to his previous employer and continues with an increase in finance package and betterment of role

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Karthikmarella · Answer

There would be an influx of applications for IIMs and ISB, as during this recession people tend to do MBA rather being jobless( Lot of people are going jobless due to lay-offs in all LOBs).
On the flip-side I don't think these colleges will reduce the amount of fee or changes to fee structure compared with last year's rather they may extend the timelines on Application deadlines , Interview dates etc.,

But the imperative aspect why candidates seek IIMs or ISB is for the cohort and the networking they get to experience, but that would be in question if the colleges continue online for few more months. Having said that the current batch will be having a downside on this aspect, though the dust of this pandemic is expected to settle down by the batch of 2021-22.

I'm pursuing this degree, currently preparing for GMAT and planning to give the exam in July. Hope everything falls-in-line .

TopTierMBA · Answer

Hi all,

This is a very pertinent question. Should you go for an MBA when the external environment is highly uncertain? In such circumstances, your target ROI may not be achievable. 
But as Phillip McGraw's says in his book - 'Life's a marathon, not a sprint'. To complete the marathon gracefully, you need resources. An MBA from a leading B-school equips one with resources for a lifetime. The network you build, the knowledge you gain, are worth much more that the hefty fees of a leading MBA program plus the opportunity costs. If one is focussed on the long-term, an MBA will most likely make sense.
But one must be careful as to factor in all the uncertainties and have resources to tide over the short-term should the outcome look not so attractive immediately after MBA. The focus has to be on ROO, that is, Return on Opportunities.

Cheers !
Team - TopTier

avin2788 · Answer

Contrasting view against the above replies -

Let's talk some numbers, MBA opportunity costs - around 50-60 lakhs plus interest of around 10 lakhs on loan ~ 70-75 lakhs. So, while deciding we must think about 75 lakhs and not 30 lakhs.

Further, the world was till now struggling with the after-effects of the 2008 crisis and really never came back to the pre-2008 levels of growth anywhere. Coming to India, we already had a weak economy and plus corona - the recovery will take a lot of time. Add to this - the ever-rising corona cases.

Now coming to MBA per se a long term decision? In the long term, a decision based on such high opportunity cost (read debt) will erode the concept of RoI. One must study the Linkedin profiles before taking any plunge. Remember to read the not so rosy post 1 year MBA profiles as well.

Finally some questions we need to ask ourselves -

1. Why I wanna spend a huge sum of Rs. 75 lakhs? Will it worth it? 
2. How can I get the same learnings without spending so much money? Remember that reading the right books and being a learner for a lifetime is the key to success for almost all the extraordinary minds, MBA or not.
3. Executive MBA or 1 year MBA never gets the same opportunity as a full time 2 year MBA. Both are just not comparable. Hard fact is that the cost is the same. Check for any FMCG major visiting campus for hiring 1 year MBA in India. (exception - HCCB, Amazon may one or two more; but rare and very less intake). So, should we take the plunge?
4. One may ultimately sell his profile better post an MBA, but one should also keep in mind that not everybody gets (or perhaps except the people with already extraordinary profile ) his/her desired role. Ultimately it boils down to your luck when it comes to placement.
5. Even if you are going to start your own venture, spending 75 lakhs even before starting! Apt to state here that Suzlon also made world-class offices in Pune (employee satisfaction and brand image you know!). (Do google the Suzlon office images)!

Sorry for the long post, but the points above really need deliberation. Getting the critical picture clear is of utmost importance before any such decision especially as big as MBA.

Bhavz10 · Answer

While I agree to all the questions you have posted and your opinions, these questions have always been present in whatever scenario- COVID or no COVID. People who apply to these programs are usually aware of what they are getting into and the opportunity costs. Having said that, if you see profiles of MBA graduates post MBA - 1 year or 2 year MBA, they are far far diverse in terms of what they were doing earlier.

You have to agree MBA colleges in India function a bit differently than foreign B schools. The focus on numbers and placements is far bigger. Having an MBA is ideal for career switchers, or career progressives or for change of industry or function or both. No learning from books can give you the opportunities an MBA can give. It’s a sad fact that companies do not hire people who are self learned and place extremely high importance on degrees and the college you have your MBA from.

An MBA can never be though of in short term the benefits only accrue after a decade or so. Being an alumni of ISB/ IIMs opens doors for you which self learning never can. This applies to budding entrepreneurs also who find their business partners on campus or get funding from an alum of their very same school!

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bb · Answer

Does it make sense to go for an Executive-MBA now?(CoVID-19 aftermath)

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