Can someone explain to me Americans' obsession with MBAs?
I am not from the USA, so I find it hard to believe that so many Americans are obsessed about the MBA. Can anyone enlighten me on the following points?
1) Why do some people go and take an MBA to be an entrepreneur? Setting up a company requires hands on skills and you won't learn that in a school. Costs of an MBA + living expenses is around $200k? You might as well use that money to set up a business yourself.
2) Why do Americans have the mindset of working for a few years then take an MBA? Can't they just work in their job all the way and rise their way up the corporate ladder? If need be, doesn't the company will sponsor you for further upgrading of your skills once you have reached a management role?
3) How many investment banking and consultancy jobs are there after graduation? Won't some MBA graduates fall through the cracks and take up some shitty job? a $200k investment in an MBA only makes sense if the return on the MBA is high. Let assume on average a consultant/investment banker earns $100k after graduation from an MBA and he saves $50k a year. That will mean he needs 4 years to earn back/ pay off loan of his MBA investment. If you have family, I imagine your savings are even lesser and if you don't get into investment banking or consultancy jobs, then things will get really bad?
Frankly an MBA makes sense to me only if the following points are fulfilled:
1) You are in a management role and needs to have your skills upgraded to manage more people and grow the company or you want a career switch so you want to make use of the school's career office.
2) An MBA+living expenses costs less than or equal to $100k.
The MBA has perceived value and perception is reality. Your points are well thought out and valid, unfortunately it doesn't work that way you can't learn to be an entrepreneur in a class room. The only real value is the network.
Most studies indicate that American firms are among the best run in the world. These same firms who have their upper ranks staffed by American MBAs are also consistently among the most innovative in the world. I think we are well past the phase where business school is only for old boys club/WASP members/white shoe professions. There are plenty of engineers and innovators in Business School, and certainly plenty of people with technical degrees.
So , whatever your disagreement with the tree , you must acknowledge its fruits. Most foreign firms do , and that is why they try to ape American business culture.
I am also not an American (Well not yet , anyway)
More Precisely Carl Icahn's American run firm thinks it can do a better job running some American run firms than their current American leadership.
Entrepreneurship also needs a large network. You need to know suppliers, customers, financiers, etc. and you can gain this network within an MBA school. Also, contrary to popular belief here, there ARE aspects of entrepreneurship that you can learn in a classroom.
This is obviously ideal but the problem is people hit their "ceiling" at different ages, because it all depends on the company you are working at. Sometimes you hit the ceiling at 28, sometimes its at 38. The problem is its way harder to get an MBA at 38, so people preemptively get it in their late 20s/early 30s.
Contrary to popular belief (or on WSO anyway) banking and consulting aren't the only two worthwhile careers after an MBA. Plenty of engineers do an MBA to have access to management gigs within engineering firms, where they can make 6 digit salaries while still getting home at 6 or 7 everyday. Lots of bankers and consultants might move into industry and settle down.
MBA is appealing because people in general follow the herd.
In my experience, Indians generally are more obsessed with MBAs. However, from your perspective, it appears you know little about the benefits of an MBA so there's little point debating you about it.
GS' points are spurious as hell.
MBA's are useful if you want a career change or to broaden your business network (or if you have no friends)
Explain how they're spurious? You can go down the list of Hedge Fund managers and find it littered with Harvard MBAs. You can do the same for F500 CEOs. So , if what they're taught is mostly bullshit, how come they dominate the list so thoroughly?
Brady -- I think you have his one covered, help the guy out.
It's a party for 2 years + chicks totally dig MBAs
-Brady
spurious, as in correlation does not imply causation
I'm saying that because of the strong correlation observed , the assertion of the LACK of a causal relationship is not justifiable. That is an entirely reasonable statement.
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