What is an MBA?

What is an MBA?


This is probably the most important question if you are new to this subject. MBA stands for Master of Business Administration. It is a graduate-level (master's) degree in the field of management and business.
Although it can be an academic degree, the MBA is usually viewed as a professional degree. Other professional degrees, such as law, set the degree holder apart as a professional in that field. While it can be viewed as a degree for a business professional, it is really much more than that.

Highlights of an MBA:
* A master's-level degree in the area of business and management.
* It can be general or specific. Specializations are available in many business (and non-business) disciplines.
* It is for persons with a college degree in business as well as other majors. It attracts a diverse group of people.
* A degree that is highly marketable as well as popular. People recognize the degree quickly.
* It is a highly available degree. It it can be obtained through various different deliveries and program formats.
* A great career enhancer in many ways. It can help with career advancement as well as career changing.
* It provides a great potential for return on investment. Your earning power is likely to increase with this degree.
I hope some of these suggestions help to simplify the answer to the question "What is an MBA?". As you can see, there are a lot of great aspects to the MBA degree.

Why an MBA?
Is the MBA the right degree for everyone? The obvious answer should be...No! The MBA is not right for everyone. Although, I am an advocate of the MBA in general, there are certain specifics you should consider before pursuing this degree.
First and foremost, you need to know yourself and your career objectives. If the MBA does not seem like it will be a good fit, do not pursue it. I do not recommend going into any program unless you feel good about it. Just because the MBA is a great degree, does not mean it is right for you.
I will approach this question "why an MBA?" from both sides of the table...that is, the pros and the cons.

Pros - Why to get an MBA
There are many reasons why an MBA is a good choice. See the reasons below:
* The MBA is a very marketable masters degree. It is very well known and it seems to enjoy recognition all over. After receiving the MBA, you can put those initials after your name. Can you do that with a Master of Science degree?
* The MBA offers valuable management and business content. If you are new to business or even experienced, this degree has a lot to offer. You can learn functional skills and concepts that seem to be applicable into any industry or job.
* The MBA is very flexible. You can choose the program type (full time, part time, distance, etc). You can specialize or stay general. Depending on the program and the school, the MBA can be completed between 30 and 60 credits. All this, and you still get the same marketable degree.

Cons - Why NOT to get an MBA
There are also reasons why an MBA may not be a good choice. See the reasons below:
* Maybe you need extra specialization or you have a specific career goal. For example, a Master of Accounting (MAcc) is a common masters degree to prepare one for the CPA exam. In this case, the MBA may not be the best choice. In certain cases, if you are pursuing a PhD, there may be better choices.
* Maybe the MBA is too cost prohibitive. MBAs tend to cost more than other degrees. This is because of its recognition and marketability. Weight out the return on investment. This is good advice for any investment. You may have more options than you think, so look around at as many programs as you can.
* I have heard arguments that the MBA is so popular that it has become "watered down". This is a perspective from someone who thinks you can only receive a full-time, two-year MBA from a prestigious school. The way I see it, if you are going to earn a masters degree, get one that is recognizable.
Realize that this is a short list of pros and cons and it by no means comprehensive. It should get you thinking about why an MBA is right or why another choice may be better.
One final note...unless you get an MBA from the "top" 10 or 20 ranked business schools, it really does not matter where you get your MBA.

What are the Benefits of an MBA?
The more appropriate question is, how will an MBA benefit you? To answer that, you need to have a clear understanding of yourself and your career goals. There are many career benefits of an MBA and people get the degree for different reasons. Some of the most common reasons fall into these general categories...

Advancing your career:
An MBA can help you move up in your current job in regards to responsibility and/or pay. You might have to pay for the degree on your own in hopes of a promotion, but sometimes employers will encourage more education and reimburse your tuition costs. An MBA can also increase job security with your current employer or within your current industry. If nothing else, MBA programs can provide good networking opportunities. Getting an MBA is an excellent way to advance your career.

Changing your career:
Often getting an MBA can lead to a career change. The MBA is considered a management degree and can prepare you for management-level positions. Good management is needed in every industry, and an MBA can give you autonomy to move across industries. Also, many programs have specializations or are specialized in their industry focus (ex: Healthcare MBA). Getting a specific MBA can make you more marketable within that specialized area.

Starting your own business:
A significant number of the students that pursue an MBA do it to eventually start their own business. While an MBA is not required to be an entrepreneur or to start a business, it can be a huge benefit. The MBA, by its very nature, covers a broad set of business topics. It is good to know a little of everything if you own a business. There is no doubt that what you learn in an MBA program will be applicable to running your own business.

Developing your business expertise:
Earning an MBA will increase your business knowledge and add to your expertise. While some people do not have a specific career goal in mind, they know that an MBA will help them. An MBA is a very versatile degree. Most programs welcome and even prefer applicants with non-business backgrounds. An MBA combined with just about any other field of study will enhance the degree holder's business savvy or management skill within that field. An MBA is also acceptable if you plan on going on for a PhD. Most schools recognize it as a professional degree as well as an academic degree.

This is not a comprehensive list of all the benefits of an MBA. Certainly there may be benefits that are not mentioned here. Again, the key is to not just look at the MBA benefits, but how these benefits match your career objectives. Doing that will really make these benefits of an MBA, benefits to you.

Thinking of Going for an MBA?
Going for an MBA requires commitment. There is no doubt about it. While you can look at all the pros and cons or costs and benefits of the MBA, you should not forget the personal and lifestyle issues involved.
What are personal and lifestyle issues? They are the effects on your personal, family, and even work life due to your decision to pursue the MBA. Believe me, when you are in an MBA program, it involves more than just you.

Important Considerations:
Here are some things to think about before going for an MBA.

* What type of program will you be involved in? Generally, you can pursue a full time, part time, executive, or even distance program. Each type of program has different time commitments. Don't let the idea of "convenience" fool you. Make sure to choose the program type that will enable you to be successful.

* Is your family on board? What ever family makeup you have, make sure family members are committed too. Does this decision affect a spouse or child? What are their situations with work or school? Make sure you look at the whole picture.

* Will you have to relocate for this program? Full time programs often require relocation. Some distance programs require residencies. If not relocation, maybe there will be significant travel time involved going to and from class.

* Do you realize how long the program is? A part time program may be convenient, but it could last between three and five years. You need to be ready for this. Understand if you work better with fewer classes at a time for a longer period or with a heavy load for a shorter period.

* Can you balance work and personal life? What ever MBA route you choose, you will be giving up part of your life. It is usually a good investment in time and money, but it can still take its toll. Make sure your work knows what it going on. They will usually need to be flexible too.

* Can you afford the MBA? Look at any applicable factors: the cost of not working for a period of time, the cost of tuition and books, the opportunity cost (what are you giving up?), and any other costs involved. Will this prove to provide a good return on your investment? Look at all the numbers.

* Are you ready for graduate school? Graduate school is generally harder than undergraduate work. The MBA is often more demanding than other graduate degrees. How long has it been since you have been in school? Graduate school can be a real eye-opener. Going for an MBA is fun but is also quite challenging. Properly evaluating these personal and lifestyle factors before going for an MBA should help you better succeed.

by Christian LeCheminant, MBA