1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Job Skills Why an MBA is so expensive?

  1. Dec 10, 2017 #1
    I found online that an MBA can boost your career and can gives you the possibility to obtain a high level job.
    Classes of MBA's students are very small, like 40 students, while in a normal university class there can be also 150 students.

    Anyway, I found out that cost so much, for example there are MBA that cost 7000 €, and others that reach 15.000€, that can be a one-year salary in a great company.
    Most of them last 3 years, that means you have to start to be really involved in work after more years of academic preparation.

    Do an MBA worth all the money ?
    I read that they teach you how to be a manger.
    I also found out that can be done by every kind of person that have a master degree.

    Thanks.
     
  2. jcsd
  3. Dec 10, 2017 #2

    phinds

    User Avatar
    Gold Member

    You clearly are not in the USA. The prices you quote are WAY low for here:
    https://www.investopedia.com/articles/professionaleducation/09/mba-real-costs.asp
     
  4. Dec 10, 2017 #3
  5. Dec 10, 2017 #4

    phinds

    User Avatar
    Gold Member

    And presumably worthwhile compared to local salaries.
     
  6. Dec 10, 2017 #5
    A single MBA cost more then the entire academic carrier ( bachelor's + master degree) that's the issue.
    It would be more cheap to get 2 bachelor's and 2 master degree then one MBA.

    Unfortunately I know no person with an MBA to ask how it helped.
     
  7. Dec 10, 2017 #6

    Choppy

    User Avatar
    Science Advisor
    Education Advisor

    If you're considering the pursuit of an MBA, it's a good idea to question it's value. There is certainly a wide range when it comes to tuitions and certainly the high-end schools seem astronomical.

    The core curriculum at the high-end schools is probably not anything any more magical than many of the less costly programs. The core principles of finance are the same whether you learn them at Harvard Business School or some no name school. But the knowledge gained is only one component of the MBA. A lot of the added value comes from less tangible (and arguably quite subjective) elements.

    In business, for example, your professional network (and ability to network [verb]) correlates strongly with your professional success. So say a small company wants to grow by hiring an MBA as a manager. If that manager spent a year interning at some of the big companies in your field, he or she might have the connections and soft skills to open doors that someone who interned at a much smaller company would not. In that sense the better connected candidate is in a position to negotiate a higher salary.

    As another example, an MBA can be seen as a marketable commodity. So if you have a company that's competing for some kind of business management contract, you can market your managers as "Graduates of X." Again - hugely subjective - but if that makes the difference between getting a contract and getting overlooked, all of a sudden those graduates of X become much more valuable. School name can mean a lot more in the commercial world than it does in the academic one.
     
  8. Dec 11, 2017 #7

    Päällikkö

    User Avatar
    Homework Helper

    If you know no-one with an MBA, it probably isn't going to help your career. Like others have pointed out, it is not the skills you learn in the curriculum itself that are so useful they'd make up for the cost, but the network and connections you make. If your network is so restricted that you don't know what an MBA is good for, there are easier and cheaper ways to broaden your horizons, especially if you're still in school.

    And because it is about networking, doing a random MBA out of a school in Italy, unless maybe it's that one school (SDA Bocconi), is next to useless.
     
  9. Dec 11, 2017 #8
    The answer to the cost of most expensive things is supply and demand. Prices tend to rise to the level of what a market will bear. If students are willing to pay expensive MBA costs, the price will be sustained. The availability of money to borrow for education tends to raise the price.
     
  10. Dec 11, 2017 #9

    jtbell

    User Avatar

    Staff: Mentor

    Or if their companies are willing to pay. I've heard of companies subsidizing at least part of the cost of an MBA for promising employees that they want to keep or advance on the corporate ladder.
     
  11. Dec 11, 2017 #10
    Yes, there are some from 7.000 to 36.0000 €.
    Like I said before are a lots of money, if you consider that a bacherlor's degree plus a master degree can't cost more then 4000 € ( tuition fees).

    Plus I know people that with 11.000 € live an entire year, the median salary here is 18.000 €, so if I take the decision of doing it I must ask money from a bank, this is the reason I need to know how useful is the MBA.
    By the way, there are football players that have ones, because they have the economical opportunity to afford that cost.

    This is something I didn't know.
    One of the great roles of an MBA is to help you to meet important people in the business work and create a network of professionals ?

    Yes, but what if a person do a university in a non well-know university and then he took an MBA at MiT or Harvard or Stanford, is more important where you graduated or were you took the MBA?
     
  12. Dec 11, 2017 #11

    phinds

    User Avatar
    Gold Member

    If you are looking for a job that requires an MBA, then it is the MBA degree that is the most important
     
  13. Dec 11, 2017 #12
    How do you know that?

    By myself, consulting online forums I found out that the most prestigious MBA in Italy is the Bocconi's one.

    There were also NBA player that joined the MBA:
    I know nothing about NBA, neither the game rule or name of players, but I read that those one did the MBA at Bocconi: Danilo Gallinari (Denver Nuggets), Boris Diaw (Utah Jazz), Boban Marjanovic (Detroit Pistons), Wilson Chandler, Gary Harris (both Denver Nuggets), Jordan Clarkson (Los Angeles Lakers), Jerami Grant (Oklahoma City Thunders), Nikola Vucevic (Orlando Magic) e Alexis Ajinca (New Orleans Pelicans), Ronny Turiaf.
     
  14. Dec 11, 2017 #13
    Yes, but this is something that I think happens only in free trade country where the government don't interfere with the high level education and gives no scholarships.
    The best offer I found is 27.000 € from Unicredit, but is not enough for the entire program fo MBA, like I said before an year of the cheapest MBA cost 7000 € and cost of living is not included.

    At the same time the median salary of an engineer ( a very well-paid job here) is around 18.000-20.000 €, and I have to spend part of that money to be ready for work( food, clothes, car etc..).


    This is very very important, I never heard about, and can help me to get an MBA.
    In this case is all a matter of finding a big company that pay for you?

    Thanks.
     
  15. Dec 11, 2017 #14
    I suspect that in part you're paying for status and prestige. An MBA from Bog Swamp State University isn't useless, but since it's all prestige BS it's worth a lot less than a Wharton MBA, regardless of what they teach you.
     
  16. Dec 11, 2017 #15
    Don't be insulting my Alma mater.
     
  17. Dec 11, 2017 #16

    Choppy

    User Avatar
    Science Advisor
    Education Advisor

    Yes. Not only meeting them, but interacting with them through projects and internships, and learning how to interact with them. Unfortunately not of this will guarantee that you'll be able to have any professional interactions with them in the future. For some people this is worth the hefty price tag. For others, not so much.

    This depends entirely on the context. As a rule of thumb where you've done your highest or most relevant degree tends to trump the other place(s) though.



    Well, usually the case is that the company has a vested interest in you developing managerial skills. It's rare that they'll hire a candidate on and immediately enroll him or her in an expensive MBA program, at least, not without some expectation of performance in return. Instead, what tends to happen is that a company will enroll someone who has performed well for them and demonstrated loyalty can who will commit to staying with them for a period of time following the degree - and probably manage some major projects. (And of course, they could require you to pay back the tuition if you leave prior to your commitment.)
     
  18. Dec 11, 2017 #17

    Vanadium 50

    User Avatar
    Staff Emeritus
    Science Advisor
    Education Advisor
    2017 Award

    Sideshow Bob: You wanted to be Krusty's sidekick since you were five. What about the buffoon lessons, the four years at clown college?
    Cecil Terwilliger: I'll thank you not to refer to Princeton that way.
     
  19. Dec 11, 2017 #18

    symbolipoint

    User Avatar
    Homework Helper
    Education Advisor
    Gold Member

    Grands, more important to earn an undergraduate degree (like in something technical or scientific) first, and find some employment. MBA degree may wait for later. Fist you want a degree and a few years of work experience.
     
  20. Dec 11, 2017 #19

    Päällikkö

    User Avatar
    Homework Helper

    I think something might've been lost in translation. So just to clarify, what I was trying to convey is that if you want to get an MBA in Italy, go to Bocconi, and conversely: If you can't go to Bocconi, don't do an MBA in Italy.

    MBA is about prestige amd connections, and in any case you should be applying to one only after spending a couple of years in the industry (and so, maybe saving some money), and so if you realize that you need one to get to where you want to be, this in particular is the part of education that you do not decide based on costs alone (or rather, on the knowledge gained/cost metric).
     
  21. Dec 11, 2017 #20

    jtbell

    User Avatar

    Staff: Mentor

    It may very well have a good reputation within the state of Bog Swamp, and in neighboring states, i.e. among local and regional businesses. Not so much among Fortune 500 companies in New York, Los Angeles, etc.

    It depends on what kind of career one aspires to. The potential fame and fortune of big cities and mega-corporation executive life are alluring to some people. But there are nevertheless a lot of people out in "flyover country" who need goods and services, and companies to provide them, and people to run those companies.
     
    Last edited: Dec 12, 2017
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook

Have something to add?
Draft saved Draft deleted



Similar Discussions: Why an MBA is so expensive?
  1. A physics degree + MBA? (Replies: 11)

  2. MBA + PM vs. MSE? (Replies: 0)

  3. MBA with engineering (Replies: 44)

Loading...