Business Administration (MBA)

The MBA in the US is traditionally a two-year (full-time study), professional master’s degree providing general training in business administration/management for students holding a first degree, not necessarily in business.

Business Administration (MBA)Table of Contents

  • Other Related Degrees
  • Curriculum
  • Accreditation
  • Length of MBA Programmes
  • Other Types of Programmes
  • Choosing an MBA School
  • Admission
  • Financing
  • Additional Resources

The MBA in the US is traditionally a two-year (full-time study), professional master’s degree providing general training in business administration/management for students holding a first degree, not necessarily in business.

Other Related Degrees

Other related postgraduate degrees in the business field are the Master of Science in Business Administration (MS), Doctor of Philosophy in Business (PhD), Doctor of Business Administration (DBA) and Doctor of Commercial Sciences (DCS). The MS is designed to provide a high level of competence in a specialised field for students holding bachelor’s degrees in business or related fields. The PhD, DBA and the DCS are intended for those planning to teach at the university level or to undertake research.

Curriculum

Core Subjects

The MBA consists of two components: the core and the elective courses. The core is made up of a group of courses designed to provide fundamental business skills. They are the basis of the MBA and therefore are taught first. Most universities will have some compulsory subjects from the core courses. Usually in the second year an MBA programme will offer concentration in one or a combination of the core subjects. The core can include or be a blend of the following subjects:

  • Economics Human resource management
  • Microeconomics Information management and technology
  • Finance/Accounting Marketing and marketing strategies
  • Quantitative business analysis Organisational and operational management

The amount of time allotted to each subject, as well as the required courses, will vary from school to school.

Elective Subjects

Elective subjects complement the core courses and also vary greatly between MBA programmes. Some electives are core subjects at a more advanced level. Among the elective courses you may see are the following:

  • Distribution and logistics Leadership
  • Manufacturing issues Taxation
  • Multinational accounting Entrepreneurship

Some electives are related to specific areas of business like property management, health administration, and educational administration. Other electives are much broader business-related subjects such as international law, environmental policies and computer studies.

Accreditation

Unlike many other countries, the establishment and maintenance of educational standards in the US are not the responsibility of a federal education ministry. The US has a system of voluntary non-governmental evaluation called accreditation.

There are two main types of US voluntary accreditation: institutional and professional. Regional accreditation is the most important type of institutional accreditation and is carried out by regional commissions which collectively serve most of the institutions chartered or licensed in the US. Professional accreditation is carried out by specialised accrediting professional bodies in such fields as law, social work and nursing, and generally applies to schools or departments within an institution.

The main body concerned with the accreditation of US academic programmes in business administration and management is the AACSB-International Association for Management Education. AACSB accredits over 300 US bachelor’s, master’s and doctoral programmes.

AACSB accreditation indicates that a business school has met AACSB standards in areas such as the adequacy of faculty resources, qualifications of the faculty, design and content of the curriculum, quality of entering students and the adequacy of library, computer, classroom and other support facilities.

Business programmes may not be accredited by AACSB either because they have been recently established, because they have not sought accreditation or because they have not met accreditation prerequisites or standards. The fact that a business programme does not have AACSB accreditation does not necessarily mean that the programme is deficient. Questions about the absence of accreditation should be addressed to the administration of the school not to AACSB.

International students considering studying at US business programmes that do not hold AACSB accreditation should base their decision on whether enrolment in an unaccredited programme will have an effect on the careers they plan to pursue upon returning to their home country. Many governments and private firms have established procedures for the recognition of degrees earned outside of the home country. It is important, therefore, for international students to investigate the regulations that will affect their employment opportunities at home before they select US business programmes to which they will apply.

Length of MBA Programmes

Degree requirements and the length of the programmes vary depending on the school and the design of the programme. The traditional MBA programme, studied full-time, takes two academic years. During the summer months students are encouraged to complete an internship. It is possible to arrange vacation work through the programme (see employment placement services below).

One-year programmes

One-year MBA programmes are offered to business undergraduates who have already completed the basic business courses and have some work experience. It is possible to pursue a one-year MBA course with little previous work experience as long as the core business course requirements have already been completed. However, many business schools will require that applicants to one-year MBA programmes have two to five years of work experience. One-year programmes are more intensive and sometimes entrance is more competitive than for two-year programmes, as they bring down the cost of an MBA. It is also possible to obtain an MBA in conjunction with an undergraduate business degree. You would then graduate with two degrees in five years. Check with individual institutions to find out the exact requirements and allowances for each.

Part-time Programmes

Part-time MBA programmes are less accessible for international students because of visa regulations that require students to be enrolled full-time. There is an exception, however, for spouses of F-1 visa holders, who can enrol in part-time study. Many people choose to pursue a part-time MBA because they would like to further their education without having to give up employment. Many students are able to fund their degree, partially or in full, in this way. Part-time studies last for more than two years and can take up to ten years for some students. Part-time course content varies depending on the individual institution. Part-time students will still complete the core MBA courses, but may have limited elective choices. Night and weekend classes are often typical for part-time programmes.

Other Types of Programmes

Open/Distance Learning

These programmes are becoming more available and practical as advances in computer technology allow students to learn via the Internet and videoconferencing. Distance courses may also include seminar visits, weekend sessions and summer school.

On-line MBA

As with other MBA courses, the on-line course varies with each university. The bulk of the degree is done via the Internet. Because physical presence at an institution is not required, self-motivation is key to successfully completing an on-line MBA. If you choose to pursue an on-line MBA, you can expect to conduct your course independently, communicating with professors and fellow students via email and on-line discussion groups. See petersons.com.

Executive MBA Programmes

These programmes are for individuals within the upper levels of management, who have considerable work experience. The curriculum differs from regular MBA programmes in that the programme provides peer group experience. The curricula are streamlined and often operate outside of conventional business hours. In addition to the universities themselves, there is an Executive MBA Council within the AACSB, which can answer questions about such programmes. See: petersons.com.

Choosing an MBA School

Typically, an MBA will require you to forego two years' salary in addition to spending considerable time and money applying to programmes. It makes sense, therefore, to do careful research when selecting programmes. Give particular consideration to your future professional career and make a personal choice based on factors that are important to you. In choosing a programme, prospective applicants may want to consider the following criteria:

Rankings

Many people question the use and usefulness of rankings services, but with knowledge of how rankings are constructed, and a little skepticism, it is possible to use ranking lists in a productive way. This website provides a good overview of ranking lists available, and has information about rankings in general.

In our experience, Norwegian students who are interested in pursuing an MBA are concerned both about the quality of the degree, and about the "name recognition" of the school. Ranking lists may help foreign students identify schools that are generally perceived to be of good quality and that have a high degree of "name recognition," at least in the U.S. By perceiving rankings as a starting point for further exploration, rather than the final, deciding factor in selecting a school, they can be quite useful. Always keep in mind that ranking lists are based on various criteria, that may or may not match the criteria you have in mind when selecting a school.

Widely used ranking lists for business schools include:

Competitiveness

There is a wide range of selectivity between business schools, and you need to take into account your own competitiveness as an applicant. In most MBA guides, you can find out how many applicants there were to individual programmes the previous year and how many were actually accepted. Included in some statistics are the grade point averages and average GMAT scores achieved by US students. Some schools do not like to publish this information so as to encourage a variety of applicants. The more competitive a school is the less likely it is going to grant credit for business courses taken elsewhere.

Costs and Availability of Financial Aid

This varies between state-supported schools and private schools and between international students and US students (See the Financing Section below). Be sure to take into consideration the availability and affordability of living.

Teaching Methods

Some schools favour the case-study method, studying actual problems encountered by real corporations. Alternatively, there are schools that use a quantitative and analytical approach, concentrating on theory rather than on practice. As the MBA is a professional degree, you may want to research how prospective employers view different programmes and their design. Most schools offer specialisations, and these may affect the direction of your future career.

Employment Placement Services

As mentioned above, employment or internships are an encouraged element in particular programmes. In this case you must apply for Curricular Practical Training through your designated school official. As an international student on an F-1 student visa, if you find work directly related to your field of study during the summer vacation or directly after your completed studies that is not required by the programme, you may apply for Optional Practical Training for a maximum of 12 months.

For more detailed information, contact the designated school official who is usually found in the International Student Services Office. Optional practical training may not be extended. Beyond 12 months, any permission to work in the US becomes a matter of discussion with the company concerned and the Immigration and Naturalization Service. Some students may enter the US with a J-1 Exchange Visitor visa, e.g. Fulbright Award grantees. In these cases the responsible officer for the exchange programme may request, on behalf of the J-1 student, permission for academic training for an initial 18 months after his/her programme. An additional six months, making a total of 24 months can also be applied for in a similar fashion.

Size and Make-up of Classes

Some universities opt to have small intimate classes while others use large lectures for general subjects. If you choose an on-line or distance course, you will not even be in a classroom. As classes in the US system are interactive, you will learn from both the experiences of your professors as well as those of your classmates. It is therefore wise to look at any statistics available about your prospective classmates.

Admission

Admission factors include your academic record, Graduate Management Admission Test (GMAT) scores, previous work experience, letters of recommendation and application form with essays.

Academic Record

A bachelor's degree is required. Until recently, business schools have been fairly flexible about degrees because they put almost equal weight on other factors. The undergraduate field of study is not stipulated (if you are doing a traditional, two-year MBA), nevertheless business schools might require upon entry, an understanding of the principles of economics, accountancy and mathematical competence up to calculus level. Students with deficiencies in these areas may compensate with background reading, or by taking special summer courses.

Applicants with a background in accountaing are occasionally accepted as holding degree equivalency. In this case the admission decision would rest heavily on your GMAT score and work experience. Students with these qualifications are advised to contact a number of institutions and enquire how their qualifications would be viewed and whether it is worth applying. In this situation, it is advisable to have a GMAT score before you contact an institution.

GMAT Scores

The majority of business schools require results from the Graduate Management Admission Test (GMAT). The current test is administered as a computer adaptive test (CAT) comprised of 75 minutes for 37 quantitative questions, 75 minutes for 41 verbal questions and 60 minutes for two analytical writing questions. No prior knowledge of business is required. It is strongly recommended that you prepare for the test before you take it. Scores range from 200-800. Some schools require a minimum GMAT score, but many do not so as to attract a variety of applicants.

Work Experience

Though not mandatory, many business schools look for candidates that have at least two to five years full-time work experience. Business schools are looking for signs of maturity and initiative, and your experience, therefore, does not necessarily have to be in business, though it does usually have to be at a managerial level. Students with experience in the business world, though, do have an advantage and from the school's point of view, are likely to be able to contribute more to class discussion, which becomes especially important to a school using the case study teaching method. Work placements completed during an undergraduate degree do not count towards the work experience requirement.

Letters of Recommendation

One or more letters of recommendation are generally required and if possible should be written by both previous or current employers and professors. The letters should be specific, stating precise skills and achievements.

Application Forms

The application forms are usually several pages in length. Many business schools provide lengthy forms and pay considerable attention to the way in which the candidate presents him/herself. Self-evaluation is usually a component and a batch of short essays will be required (see below).

Many schools have made it possible for students to apply on-line. This can be done either through an on-line application or an application done through a network service agency that manages a school's on-line applications. We have compiled a small list of web sites that have on-line application services. Applying on-line allows students to save on postal costs as well as to reduce the time taken to send and receive application information and materials.

Essays

Application essays will usually ask you to explain your goals, analyse your work experience, describe significant achievements in your life and/or give you a business scenario that you must analyse. One good source of advice is: accepted.com

Financing

Tuition costs differ widely between institutions and can be more than $20,000 per year. You must also consider living, books and personal costs. After personal resources, the other main types of financial aid include scholarships from independent foundations, financial aid awarded by the individual business schools and loans.

The U.S.-Norway Fulbright Foundation awards scholarships for MBA candidates who want to study in the US, as does the Norway-America Foundation. Lånekassen also offers loans and grants for MBA studies in the U.S.

Business schools themselves are sometimes able to offer partial scholarships, assistantships or loans, but financial aid is limited. Some schools have begun to offer guaranteed loans to those accepted to the programme.

Additional Resources

Other On-Line Resources

The following web sites may be useful with your MBA research:

www.about.com
Use the search tool to find extensive MBA information.

www.gmat.org
Homepage of the test administrators for the GMAT, including web sites to various MBA web sites.

www.managementcourses.com
Comprehensive information about executive and senior management courses.

www.mbainfo.com
Comprehensive source of information about MBA programmes. Database to search for MBA programmes all over the world.

www.mbazone.com/
MBA Zone was originally created by students at Wharton Business School. This site provides information for students before, during and after taking an MBA programme.

www.petersons.com/mba
Peterson's MBA search.

Rankings:

www.thembatour.com
The MBA Tour presents MBA fairs around the world.

www.unicorn.us.com/guide
Official MBA Guide.