Studying an MBA in a troubled economy

Economic troubles in the eurozone and beyond have been dominating headlines around the world.

But that’s not to say that it would be a mistake to study an MBA in any of those countries, or others affected by the ongoing global economic troubles. In fact, in many instances it can be a benefit to MBA students.

While his business school is based in Germany, which boasts the strongest economy in Europe, Nick Barniville, director of MBA programs at ESMT European School of Management and Technology, explains two important benefits of studying an MBA in a country with a troubled economic outlook.

“Firstly, it will be cheaper to live there than during a boom and secondly, the lateral thinking promoted by an MBA program may allow optimistic MBAs to see opportunity where others see gloom. The experience MBAs gain in the area of strategic innovation, creativity and business modelling can equip MBA graduates to take an early advantage of green shoots in the economic recovery.”

Liz Riley Hargrove, associate dean for admissions at Duke University’s Fuqua School of Business continues this thought, pointing out that the range of skills fostered at business school can equip MBA graduates for wide ranging economical conditions.

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The changing face of business

“The MBA is much more than a means to increase one’s job prospects and networks during times of economic recession,” Riley Hargrove says. “The face of business is changing and during the times of uncertainty, you want to be sure that your investment in a business education will prepare you for the changes happening around you. The world needs business leaders who have the ability and flexibility to navigate economic downturns and disruptions.

“An MBA is certainly an appropriate tool to transform your skill set. It can also position you with a sustainable return on investment and ability to change careers.”

Then there are advantages in ensuring that your talents and skill set are attractive to employers in a competitive job market.

“When market conditions are tough then both individuals and companies have to work harder to be successful,” explains Nigel Banister, chief global officer at Manchester Business School. “So individuals who improve their skills and qualifications are more likely to stand out in the competitive job market.”

Further, having witnessed both current economic events and the recent past, fresh MBA graduates can learn from where others have failed.

“Companies need to consider new approaches to products and markets and therefore value executives who don't just have experience of the way things have been but the skills and reflective approach to find innovative ways forward,” continues Banister. “Those graduating from top MBA programs are more likely to have these attributes.”

In fact, it is this idea of new management talent learning from the choices of their predecessors that has kept MBA curriculums relevant throughout their history. Be they wise or unwise decisions, fresh graduates have the enviable position of seeing the consequences of them, and so can then decide what might have been a better course of action.

“One of the benefits to studying in a country with a depressed economic outlook is that the students can have a close perspective of the effects the economic troubles can have on the country,” explains Itziar de Ros, MBA admissions director at IESE Business School in Spain.

These live, as-it-happens case studies can then be brought into MBA classrooms, helping students to analyze globally significant economic issues that affect worldwide trade and business.

“The debate going on in Spain about how to revitalize the country's economy, how to fix its financial system, and how to promote innovation feeds directly into our MBA classrooms,” IE Business School’s dean of programs, David Bach tells TopMBA.com.

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MBAs: Economic salvation

However, it’s not just Spanish business schools that are able to offer their MBA students insight into economic recovery. Countries in all corners of the globe are being affected by the ongoing difficulties, and as a result, international MBA perspective on events can be immensely useful for class study.

“The problems are not uniquely Spanish. Japan, Ireland, the UK, and even the US are asking the same questions,” continues Bach. “Debating them with our students in the classroom is exciting because of the tremendous diversity we have at IE. The challenges ensure that the ‘real world’ is never far away.

“Crises make leaders. Anybody can succeed when things are easy. But real leadership is required when things get tough.”

However, the benefits are not one-sided. Increasingly, countries are looking toward entrepreneurs and innovators to stave of future economic difficulty.

“Ultimately, the path to Spain's and to Europe's economic recovery is through entrepreneurship and innovation and there was never a more urgent need for fresh management thinking and young leaders embracing a challenge,” explains Bach.
Dan LeClair, AACSB's senior vice president and chief knowledge officer believes that MBA graduates and alumni are key to economic recovery, as efficiency and effectiveness are traits ingrained on them.

“There’s no single way [that MBAs can help economic recovery], but certainly organizations; business organizations, non-profit organizations, government organizations; they’re all important in helping us to make the world work better. That’s what MBA graduates do, they help make organizations work more effectively.”

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‘Fresh blood’ in management

It is these organizations that are increasingly looking to the talents of new management graduates, or ‘fresh blood’ in business in order to innovate and gain greater international competitiveness.

“It's not so much a question of ‘fresh blood’ as a ‘fresh perspective’ and the skills to deal with a complex and fast-moving business environment," says Elaine Kay, MBA programs manager at Nottingham University Business School.
“It is crucial that schools help to develop business leaders who not only have the innovative and entrepreneurial skills to kick-start growth, but who are also able to ensure that this growth is sustainable so that we can build businesses fit for the future.”

Robert Owen, director of business school services and accreditation at the Association of MBAs (AMBA) explains that while it is difficult to quantify the impact of new talent entering organizations at management level, AMBA’s “view is that any business situation needs a balance of experience and fresh thinking.

“Also, as it transpired from a recent conference for deans and directors from AMBA-accredited business schools, corporations should be more stakeholder focused and less shareholder orientated. A shake up of old values, by bringing in ‘fresh blood’ for example, could facilitate the change of these traditional practices and result in more sustainability and corporate social responsibility.”

• Discuss your MBA options face-to-face with the business schools themselves at one of QS' many global MBA events >

• Keep up-to-date with the latest MBA news, features and advice by registering for the TopMBA.com newsletter >
• Find your perfect MBA program using TopMBA Scorecard's personalized MBA rankings >