What is an MBA Degree and WHY Do Employers Hire MBA Grads??
📚 What is an MBA Degree?
An MBA is a Master's in Business Administration. It is one of the most valuable master's degrees one can get to advance their career, where it's not uncommon for newly minted MBA graduates to earn close to 6-figures or well into the 6-figure mark, depending on a number of factors like school, prior work experience, and industry. Needless to say, the potential salary increase combined with the demand in the job market for these degrees make it very compelling.
📈Core Business Concepts in an MBA
In an MBA program, the curriculum typically consists of core business concepts like:
- Accounting
- Finance
- Marketing
- Process Management
- Supply Chain
- Organization
- Leadership
Every school will present these concepts in slightly different ways, some of the concepts overlap a little, and some schools may add some other learnings, but the story here is you get a well-rounded business education.
⚙️ Common MBA Specializations
MBA programs often allow students to specialize by taking a few extra courses in a specific subject area. This enables MBA grads to gain deeper knowledge and stand out from others with more generalized degrees.
Some of the most popular MBA specializations include:
Data Analytics: Courses in data science, business intelligence, and statistical analysis. Valuable for roles in finance, marketing, operations.
Innovation: Coursework in entrepreneurship, product development, and design thinking. Useful for product managers, startup founders, consultants.
Real Estate: Classes in real estate finance, development, and investment analysis. Relevant for commercial real estate careers.
Digital Marketing: Digital strategy, social media marketing, web analytics. Important for marketing roles.
Healthcare: Healthcare systems, healthcare finance, healthcare policy. For those interested in hospital administration and healthcare consulting.
By specializing, MBA students can gain valuable skills and knowledge to better position themselves for certain roles and industries post-graduation. Specializations allow students to differentiate themselves and show deep expertise in a particular area of business.
💼 Why MBA Grads are Valuable
MBA graduates are extremely valuable to employers because of their holistic business education and ability to understand how decisions in one department affect other departments. With knowledge of core business concepts like accounting, finance, marketing, and operations, MBA grads can better anticipate challenges that may arise from decisions and propose solutions that are financially sound.
For example, a marketing campaign to promote a product heavily in December could drive great sales numbers. But an MBA grad would also consider how the supply chain and inventory teams could be impacted. With higher demand forecasted, there is risk of stockouts if supply can't keep up, leading to lost sales. Or if demand doesn't materialize as expected, the company could be left with excess inventory.
The MBA grad can piece together the whole picture of the financial impact of a marketing decision across departments. Rather than making decisions in a silo, the MBA can take a cross-functional view and provide recommendations accordingly. This holistic thinking makes MBA graduates extremely valuable strategic advisors and leaders within an organization.
🔍 Evaluating MBA Programs
When considering an MBA program, it's important to evaluate cost, reputation, and alignment with your career goals.
Cost - Top ranked MBA programs can be very expensive. Make sure to consider tuition as well as lost income while in school. There are quality programs across a range of price points.
Reputation - Avoid unreputable institutions or programs that lack accreditation. Look for schools with established reputations that are recognized by employers.
Career Goals - Ensure the program aligns with your desired career path and industry. Look for concentrations or electives relevant to your goals. Consider school location and job placement rates.
The right MBA program will balance cost, reputation, and preparation for your intended career. It's best to avoid either extreme of very expensive top-tier programs or cheap but unrecognized degrees. Do your research to find the program that best matches your needs and career aspirations.
