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February 03, 2009
 

MBA Express


NEWS  THIS WEEK'S TOP STORY

Financial Woes Force B-School Cutbacks

Plunging endowments and reductions in state funding are leading to layoffs, salary freezes, even program shutdowns. And the worst is still to come



  MORE TOP STORIES
GETTING IN
Five Years to B-School: The Fourth Year
D-Day is fast approaching. If you're serious about business school, now is the time to stand out at work, line up your recommendations, and mentally prepare for the application process

GETTING IN
Loan Crisis Hits the MBA World
With big lenders requiring co-signers, international students are finding that money is tight. For many, B-school dreams may be over before they start

MBA JOURNAL: FIRST SEMESTER WRAPUP
Starting Strong
Why doing as much as you can, as soon as you can, is a good strategy for business school

VIEWPOINT
For MBAs, a Brave New World
As business models evolve, post-recession MBA jobs will, too, with employers looking for well-rounded types with strong leadership skills

 B-SCHOOL FORUMS
Visit BW Online's interactive forums for wide-ranging discussions about management education. Search through over 1,359,000 posts for topics that interest you. Join in today! Here are a few samples of recent messages:

Getting into B-School: Best Career for Working Internationally

From: jjright
To: ALL

Hi,

I was curious which career paths, post MBA, would allow the most flexibility to work remotely or in various countries. My goal in life is to be able to eventually work from different countries, and to learn different languages/cultures in my spare time. This is a true passion of mine.

If you get an MBA from a top 5 school, in a very broad concentration, such as Finance, would it be fairly easy to market yourself to American/International companies abroad?

I'd appreciate any insight. I am having a bit of a soul searching moment. I'd hate to end up two years post graduation, sadly locked away in some gray cubicle.
------------
From: MBAApply
To: jjright

If what you're dreading is the physical stasis of being stuck on a desk all day, then you probably want a job that allows you to be physically active.

Sales generally fits this mold - you're constantly meeting potential customers at their offices. However, most sales jobs as far as I know are divided by region/territory. Having said that, bankers and consultants also travel a lot, especially when you are responsible for generating client business (usually at the VP level and above - which is around 3-4 years post-MBA) - at that level, it's no longer a "desk job" but a sales job where you're always traveling from one client site to the next trying to generate more business from them.

Or maybe working in certain jobs at a non-profit or aid organization where you'll be splitting time between the "office" and the "field".

Or working in media as a journalist, writer, TV host/correspondent. In fact, wouldn't that be a dream job for you? Say, working at the Travel Channel as a host or producer where you get to travel the world on assignment with Andrew Zimmern, Anthony Bourdain, or Samantha Brown... or maybe a "business" version of it on CNBC, I don't know.

Alex Chu
------------
From: jjright
To: MBAApply

Thanks for the reply Alex. I think the physical nature of most desk jobs does indeed affect my mood. At my office, people hardly get up from their workspace, and I have always been perceived as the oddball since I always look for any reason to get up. After a day of not getting up from my desk, and having my eyes glued to the screen, I begin to feel unhealthy and lethargic (and old!). I then start to daydream about competing in a triathlon!

I guess I've never been "normal" in this sense, but then again, what's normal in this day and age?
------------
From: MBAApply
To: jjright

I know exactly where you're coming from.

I have this theory -- the cumulative effect of sitting for close to 8 hours a day (sometimes more) over 10-30 years cannot be healthy. Especially when so much of that time is spent staring at a computer screen. No amount of exercise or healthy diet in my view can counteract such a sedentary existence especially if it's over a lifetime.

It's either that, or evolution will take its course and we'll become like the blobs in Wall-E.

Alex Chu
----------------------------------------------------------------------

Getting into B-School: PE/VC guys - An Honest Question

From: justasking
To: ALL

Guys (top tier PE/VC alums, still employed, business/finance backgrounds)-

What's our real rationale for B School? Don't tell me its education or network, those are too easy to develop without the MBA.

FYI, I'm a PE/VC HSW admit struggling with staying with my firm in a post-MBA position or with spending the next 2 years in B school. Risks are that I have no mobility without the degree or that I waste 2 years in B school. Seems like people take the MBA route more out of habit and hegemony than anything inherently valuable in the degree - what am I missing?
------------
From: cmozz
To: justasking

I'm in a similar position. I'm working as a business analyst at a Fortune 100 company, 3 promotions in 3 years, with the next being a post-MBA role, typically filled with H or W grads

The reason for going back? Career change (VC), development of technical skills, personal achievement, and promise of more 'open doors' with the degree.
------------
From: MBAApply
To: justasking

Having worked with a number of PE folks in the past, it seems to be more than just to further their careers or even for the education.

Most of you folks in PE started out in banking. As you know, banking is a f'n grind. In the office all day and night, no life whatsoever.

Then after 2-3 years you move into a PE fund. Each fund varies, but by and large while the hours are better, you're still pulling in some long hours.

So one of the reasons is just getting a break from it. The ones I've worked with in the past all seem burnt out or at least very worn.

The other thing seems to be personal. The desire to be around people your own age. To help remind yourself that you're still young. B-school is really the last time to be "a kid" - to focus purely on you. As pre-MBA PE folks, many of you are much younger than many of the people you deal with everyday - whether it's the partners in the firm, the LPs, or at the portfolio companies. You can certainly act and play the part of the "grown up adult" but you really don't have as much of a personal connection with a bunch of people who are 10-30 years older than you and who are in a completely different stage in their lives (in fact, some aren't much younger than your parents). It's like taking your youth back.

None of this is what anyone I've worked with have said, but it's what I've sensed when I interact with them over time (and you get essay drafts, emails and sometimes even phone calls on Friday or Saturday evenings). The job may be interesting, but it takes a toll on the personal life.

There is a huge personal value in reconnecting with people your own age and having an "MBA" on your resume won't cause anyone to question your true motives (which have more to do with personal things than career development) - it may not be something people will necessarily admit or articulate (and of course it won't be in an essay), but I sense it's there. And also, some (or many?) of you are single and becoming a student at least gives you the time to meet new people.

Alex Chu

 B-SCHOOL BLOGS
View over 4,500 blogs in our MBA Blogs community today! Share your journey, meet new friends, and expand your network. Connect with MBA students, applicants and alumni from Columbia, Kellogg, Notre Dame, and more! Become a blogger today! Here's an excerpt:

Getting Down to Business: Winter Blahs
By Alyssa
Comments: 0 Stars: 0


10,000 new job cuts were announced this morning, adding on to an estimated 100,000+ reported since Monday. According to CNNMoney.com, Rochester-based Kodak plans on eliminating another 2,000 - 3,000 positions in 2009. Kodak declared a loss of $133,000,000 for fourth quarter, and subsequently their stock decreased by over 20%.

It's weird to think about how much has changed over this past year. It's even weirder realizing the degree to which I myself have undergone a transformation. The combination of a post-college life and a slipping economy has stripped me of my former naivety and carefree nature, exposing an obscured web of attitudes and emotions. I'd like to say I am simply in the process of maturing, but truthfully this "coming of age" sometimes feels more to me like a quarter life crisis.

Along with a few extra wrinkles on my forehead, I have detected an internal age-accelerating agent - anxiety. It makes its presence known by releasing itself through different forms and various outlets. Not only do I worry about my personal life and future, but I also find myself overly concerned with other peoples' matters. For example, I have teared up during every episode of American Idol this season. When one young boy was asked about his reason for trying out, he told the host that his family was struggling and his success on the show could mean a fresh start for them. As the camera focused on the boy and his little brothers, standing in the background was their father attempting to hide his shameful tears from the public.

I have been reading a Wall Street Journal blog titled, "Laid Off and Looking," which follows recently laid-off M.B.A.s and their quest for employment. One article posted by a woman who lost her job with Bank of America in 2008 particularly interested me.

http://blogs.wsj.com/laidoff/2009/01/26/nowadays-an-mba-doesnt-equal-job-security/.

Be sure to check out the reader comments too. Everyone is so negative about everything lately, and the depressing domino effect is beginning to take its toll on me as well. What cheers me is the thought of being in business school rather than in the workforce at this particularly stressful time, and I look forward to using my business degree and become a part our economic recovery. From now on I promise to try to write in a more optimistic tone.
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  B-School Insider
Dear Reader:

Well, the inevitable finally happened. With it's endowment losses mounting, a major business school - Stanford - announced the layoffs of 49 staff members, making it the latest in a long and growing line of institutions making painful budget cutbacks as the economy unravels. Hiring freezes are now the order of the day. The University of Buffalo's School of Management is hitting students up for an extra $184 a semester to help cover a budget shortfall. And Florida State University's College of Business is ripping out phone lines to save $40,000 a year. If you're calling the dean to offer a kind word, make sure to dial her BlackBerry-she no longer has a land line. Alison Damast's story, "Financial Woes Force B-School Cutbacks," tells the whole sordid tale.

The odd thing about this economic debacle is that while b-schools are suffering their enrollment is not. Those with a time horizon that's longer than the current recession should read the latest installment of Francesca DiMeglio's five-part series on how to prepare to take the b-school plunge. A comprehensive roadmap to the often bewildering process of putting one's best foot forward, the whole series is a valuable look at what needs to be done, and when, if you're going to land the b-school spot of your dreams. I urge you to read it.

Louis Lavelle
Business Schools Editor
BusinessWeek

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 IN YOUR FACE: RUSSIA'S ARCTIC PLANS

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  Tools & Features

MBA Insider
Check out this feature-rich area for advice and tools that will help you choose the right B-school -- and develop a strategy for getting accepted

Full-Time MBA Rankings & Profiles
BusinessWeek's Top 30 U.S. programs and Top 10 international programs. Plus, scan in-depth profiles of more than 300 full-time programs around the world

The Best Undergraduate B-Schools
Undergrad business programs are getting MBA-like respect, and competition to get into them is hotter than ever. Here's how the top schools stack up

B-School Calendar
BusinessWeek.com's scheduling tool will give you an idea of upcoming events at B-schools in the U.S. and around the world. You'll find information on admissions receptions, application deadlines, networking events, alumni events, conferences, and much more.

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