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Time to take refuge in an MBA?

28 August 2007

Shaky markets, uncertain hiring, possible bonus deterioration – is now the time to go back to school?

MBA schools would undoubtedly say yes, particularly as 2008 applications at the likes of London Business School – where 42% of 2006 MBAs went into finance and 21% into investment banking – open in September.

But is now really such a good time to go back? It all depends upon your prognosis for the markets, say recruiters. "If you take the pessimistic view that everything that's happening at the moment is more than a temporary correction and there will be a long-term downturn, you might want to enrol on an MBA for two years," says Vivienne Dykstra, ex-head of campus recruiting at Deutsche Bank and head of independent hiring firm Graduate Solutions.

On the other hand, if things really do deteriorate, doing an MBA now could leave you in a bad position down the line. "In 2003 MBA hiring targets were slashed and a lot of MBA hires were let go," says another recruiter.

Dykstra says there's no sign of any let up in hiring so far.

So is it best to sit this out, or bulk up your CV with a big name business school?

Comments (20)

Now could be a good time to do it if you are sitting in the wrong asset class, but be aware that you are taking a gamble

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Comments (20)

  • Hmm. Guess it depends on where you do it - I mean, there are MBAs and MBAs...

    Anon Associate 28 Aug 2007

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  • I don't think it's worth spending thousands of pounds and two years out of the industry to get an MBA. You'd be better off sitting tight and gaining two years' proper banking experience - as long as that's an option for you of course.

    Anonymous 28 Aug 2007

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  • Talk to recruiters who have worked through tougher times and they will tell you that there were plenty of candidates coming off of MBA courses in 2001, 2002 & 2003 who got their fingers very badly burnt.

    The MBA can be a real asset to your cv if you  already have a revenue earning or marketing tilt to your skill set. However it can also be a handicap if you are applying to roles in a downturn - you could be percived as being "over" qualified.

    Now could be a good time to do it if you are sitting in the wrong asset class, but be aware that you are taking a gamble - be prepared to have a flexible message to give to the job market when you return. Don't do an MBA if your sole expectation is to use it to get a toehold in the Front Office.

    Anonymous 28 Aug 2007

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  • Not everyone is good enough to go to a top MBA school either. can you get a 750+ score on your gmat?

    Anonymous 28 Aug 2007

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  • If you're looking to do an MBA, then I think yes, this could potentially be a good time to do it. No point doing an MBA just because the markets are taking a downtourn though. Most hotshots in the city don't have MBA's, although I agree it's useful if you're looking to get into Consulting or company management. Really depends on long-term goals.

    Anon 28 Aug 2007

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  • Value of an MBA will depend on your first degree and range of experience.  The last thing you want to do is simply repeat subjects you have already mastered through study or work. 

    Treat your career like you would a portfolio or a business.  Good strategic moves always pay off rather than knee jerk reactions to the market.

    The problem in finance and it's a necessary evil is that it's full of specialists who have difficulty in transferring their skills to a different branch of the industry.
    If you decide that an MBS is the right strategy then make sure you choose the right institution to undertake it.

    Anon 28 Aug 2007

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  • When I went to graduate school in 1998, a colleague said to me that it isn't a guarantee that life would be better on the other end. He had UPenn undergrad degree and Columbia MBA and confided in me that times were tough when he got his MBA and he was out of work for a year.  Although I found a job before graduating from NYU with an MBA, in June 2000, 40% of my class were struggling to find jobs. 

    I say, if you can get someone to pay for your MBA, and are willing to do it nights/weekends, you are much better off.

    Anon i mouse 28 Aug 2007

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  • Experience is the better route- hold tight. Do the CFA and forget an MBA.

    CFA Dude 28 Aug 2007

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  • Which is better? Doing and MBA and holding tight or being out of a job come December? Or worse yet, not getting a bonus that matched 2006?

    AAA 29 Aug 2007

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  • I did it p/t, no regrets as I graduated in 2003 and still had a decent job while others were struggling.

    ANON 29 Aug 2007

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