What is MBA? Everything You Need to Know About MBA

Introduction

MBA graduates are in great demand owing to the rapid advancement of startup culture and increasing competition in the market. Most companies worldwide prefer professionals with an MBA degree for senior management roles. According to Statista, 92% of the companies in the world are open to hiring MBA graduates in 2022. However, pursuing an MBA is not as easy as it sounds. It is a huge investment. Pursuing an MBA from a top business school in the US can cost you millions. Therefore, it is necessary to research your options and know what is MBA before you jump on the bandwagon!

What is MBA?

MBA or the Master of Business Administration is a graduate-level degree that helps you gain the knowledge and skills required for business administration. An MBA degree teaches the fundamentals of business management and key business practices. MBA is required for senior-level or managerial positions. Professionals from different industry backgrounds like IT, health, finance, infrastructure, food and beverages, and more do MBA to acquire skills like leadership, time management, business analysis, strategy formulation, and more. An MBA degree is also worth it if you are interested in entrepreneurship and want to start your own venture.

Why should you do an MBA?

In the era of intense competition and constantly evolving career trends, a single qualification does not suffice. You must pursue different qualifications and acquire popular skills to stay ahead of your competitors. MBA is considered the best degree to learn necessary skills and gain qualifications for people from nearly all professional backgrounds. Here are all the reasons why an MBA can enhance your career.

• Better job opportunities –

  Even if you are a fresher or a working professional, an MBA degree can help you get better job opportunities. Companies mostly MBA graduates for various positions. Completing an MBA from one of the best business schools in the US can make you eligible for diverse job roles and give you an advantage.

• Better Payscale –

  Not only do you get improved career opportunities after MBA, but the salary also increases. People with an undergraduate degree receive lesser salaries than professionals with an MBA background.

• Acquire Latest Skills –

  MBA can benefit your career as the course helps you learn the fundamentals of business management and business analytics, which is the backbone of every organization. You also get to learn soft and technical skills necessary to advance in your career.

• Build Strong Professional Network –

  One of the most significant advantages of pursuing an MBA is meeting various professionals. This offers you an excellent opportunity to polish your communication skills and build a solid professional network. A strong professional network can help you get references to advance your career.

Cost of Pursuing an MBA

The average cost of pursuing an MBA from the best business schools in the US is $70,000 per year. The total tuition fee for MBA for different colleges is mentioned below:

•  Wharton Business School – $161,810
• MIT – $154,336
• Harvard Business School – $146,880
• New York University – $150,964
• University of Chicago – $146,880

MBA is an expensive course. You should weigh the pros and cons before enrolling for an MBA degree.

Types of MBA Courses

There are different types of MBA courses offered by Universities:

• Full-time MBA (2 years)- This is the most common type of MBA course. It is a two-year course that has to be completed physically on campus in most cases. According to the US News and World Report, the best MBA programs in the US for 2023 are the University of Chicago, the University of Pennsylvania (Wharton), and Stanford University.
• Executive MBA- Executive MBA is designed for working professionals who want to continue their work while pursuing an MBA on-campus. 
• Global MBA- Global MBA is similar to the regular MBA program. However, the curriculum of a global MBA program includes international business concepts. People who want to work in multinational companies or different countries prefer a global MBA.
• Distance MBA- If you are a working professional and cannot leave your job to pursue an MBA, a distance MBA can be a suitable option. It is an online MBA program that does not require learners to attend classes on campus physically. You can watch lectures at home anytime, according to your convenience, complete assignments, and appear for tests. Since the pandemic, many top business schools worldwide have started offering distance MBA programs in collaboration with ed-tech platforms.

Specializations in MBA

MBA is a postgraduate degree that allows you to choose a specialization in your area of interest. Business schools worldwide offer a wide range of MBA specializations. Here are some common MBA specializations that you can consider.

• Human Resources
• Finance
• Marketing
• Operations Management
• Entrepreneurship
• Supply Chain Management
• International Business
• Accounting
• Health Management
• Rural Management
• Retail
• Economics
• Data Analytics 

If you are a working professional, you can choose a specialization based on your role. However, if you are a fresher, you should choose a specialization carefully after evaluating your interests and career trajectory.

Learn MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.

Career Options after MBA

Completing an MBA opens the door to a plethora of career opportunities in various fields. Here are some of the most common career options you can consider after completing an MBA:

• Business Operations Manager
• Finance Manager
• Product Manager
• Human Resources Manager
• Chief Executive Officer
• Business Development Manager
• Marketing Manager
• IT Officer 
• Investment Banker
• Management Consultant
• Administrative Manager
• Financial Advisor

Average Salary after MBA

MBA graduates are among the highest-paid professionals in the world. The average salary of MBA graduates depends on various factors like business school, placement opportunities, industry, specialization, and more. 

Average salary based on college

According to the US News and World Report, the average salary of MBA graduates from the 15 highest ranked MBA Programs in the US is $175,789 per year. 2021 MBA graduates from different business schools in the US are offered the following average annual salaries:

• New York University – $181,803
• University of Chicago – $180,044
• Wharton College – $178,692
• Stanford University – $176,956
• University of Virginia – $176,161

Average salary based on industry 

The average salary after MBA majorly depends on the industry you work in. Industries like consulting, finance, technology, healthcare, and media and entertainment offer higher salaries to MBA graduates. According to 2021 statistics, here are the average salaries of MBA professionals for different industries:

• Consulting- $147,178
• Financial Services – $138,834
• Technology- $128,442
• Healthcare – $116,250
• Energy – $111,080
• Media and Entertainment – $114,706
• Real Estate – $108,831
• Manufacturing – $108,364

Integrated MBA Courses

In most cases, people decide to pursue an MBA during their last year of college or after completing their undergraduate degree. It usually takes 5-6 years to complete both an undergraduate degree and an MBA Course separately, which is a long time. Many universities have introduced integrated MBA courses that combine undergraduate and MBA degrees which takes fewer years to accomplish.

For example, instead of doing Bachelor’s or Business Management (BBM) and MBA separately, you can do an integrated BBM + MBA course in 4-5 years. Some universities also offer another degree along with an MBA. It is also called an integrated MBA. For instance, MBA/MEng. An integrated MBA course can be a better option if you decide to enter management right after school. Here are some of the popular business schools that offer integrated or interdisciplinary MBA.

• Wharton Business School
• Berkeley College
• University of Chicago
• Stanford University
• Harvard University

Conclusion

MBA is one of the best qualifications to boost your career. If you are a working professional, an MBA from one of the best business schools in the US can help you gain the required expertise and skills. It increases your chances of promotion and getting a higher salary. You can also switch jobs after completing your MBA to move on to more challenging roles. However, many working professionals are unable to quit their jobs to pursue full-time MBA degrees. Online MBA is best in such cases. 

If you are a working professional who wants to take your career to the next level, you can pursue MBA (Global) at Deakin Business School on upGrad. The course teaches you the fundamentals of marketing management, leadership, business economics, business strategy, enterprise and risk management, and business laws. You also get to work on over 10 Harvard studies.