Why Some Universities No Longer Offer MBA Programs
Earlier this year, there were multiple reports of Universities who decided to shut down their MBA programs. The University of Illinois, Univesity of Iowa, Wake Forest University, Virginia Tech, and Simmons College all announced that they will no longer be offering MBA programs. Surprised? With a strong economy, high tuition costs and less interest in these programs, the MBA degree is in a crisis.
Take a look at these stats. In 2018, some of the top business schools saw a decline in the number of applications to their MBA programs by 5.9%. More specifically, Harvard University fell 4.5%, UC-Berkeley fell 7.5% and Stanford loss about 4.6% applications from the previous year. William Boulding, dean of Duke University’s Fuqua School of Business told Forbes, “I have been hearing that some schools in the top ten are in double-digit territory so I think it is going to be worse than last year when all is said and done.”
The cost of a program and the time students have to commit to it are attributing to the problem. Those interested in an MBA want a more flexible and shorter program duration. The cost of enrollment is out of hand too. All of these factors beg the question of whether or not it is worth getting an MBA altogether. Investopedia estimates that the average cost of a yearly tuition rate is around $40,000. That number shouldn’t scare everyone off. Certainly, for some, an MBA program is worth it. In 2018, QS Quacquarelli Symonds found that after ten years of earning an MBA, the decade long ROI after subtracting tuition cots was $390,751. For those who attended a private institution, like Stanford University, that number exceeded $1 million.
Before you start applying to MBA programs, consider why you are doing so. Elissa Sangster, the CEO of the Forté Foundation, explains that if you plan on starting a small business, an MBA probably won’t serve you well. Careers best suited for an MBA program include; Product manager, consultant, medical and health services manager, financial manager, product marketing manager, and brand marketing manager. If you’re in those fields already and are considering an MBA, go for it. Having an MBA in these fields will give you an advantage for promotion, and as such, you’ll see an increase in your salary.
Despite the news that many universities are closing their MBA programs, some are simply shifting their attention and budget to an online option. Having an online program is cheaper compared to the cost of running an on-site program. And it’s less expensive for the student too. Nearly 32,000 students are earning their degree from the comfort of their home watching prerecorded lectures from their smartphones. Attendees say that earning their MBA would have never been possible had they had to sit in a lecture hall. Some report that they work a full-time job and have a family to care for. Online options make it possible for them to juggle all three at once.
Another way to succeed in business without an MBA is to strengthen your skills elsewhere. At Iris Reading, our online programs help with memory, focus, and productivity. Find out more about all of our courses and see how without investing a lot of money, you can get the skills you need to excel in your career.