Where To Go In London For An Economics-Focused MBA
The study of economics provides an invaluable perspective for anyone choosing a career in business or areas of the government involved in business. Students that decide to earn an economics-focused MBA gain a deeper understanding of the fundamentals that govern domestic and global economic activity. Those students study the forces that drive markets and the economics of the decision-making processes of business and consumers in the market system.
Friday Morning News & Notes: LBS Wins Again, Traffic Tax And The Kelley Online MBA
Good morning and happy Friday!
Here are a few stories you may have missed from the week that was …
The Potential Impact of Brexit on U.K. Business Schools
British Prime Minister Theresa May plans to invoke Article 50 of the European Union Lisbon Treaty on March 29th—triggering the United Kingdom’s two-year process of exiting the bloc of nations it has been part of for four decades. Given this, it seems a good time to look at the impact of Brexit on U.K. schools. According to a 2017 GMAC Brexit-U.S. Survey, 45 percent of respondents claimed that Brexit would make them less likely to study in the United Kingdom. But what does that figure mean? Are U.K. schools expecting fewer applications from top international talent, or is everything well? Continue reading…
Middle East Tech Investment Lacking, Says LBS
At a recent Middle East tech conference hosted by London Business School students, findings from the Strategy& global consulting firm found that even though Middle Eastern companies found it imperative to invest in technology, there was much to be desired.
LBS Employment Report Finds Grads Falling Out Of Love With Finance
London Business School MBA graduates may be seeing higher salaries and increased hiring rates, but its love of the finance industry may be waning.
According to the 2016 London Business School employment report, MBA grads are joining the financial sector at the lowest rate in five years. LBS grads are still joining the industry at 25 percent overall, which trails the 35 percent of graduates that enter consulting. Technology, which hired the third-most LBS 2016 graduates, came in third at 21 percent—the same percentage from the previous year.
via London Business School Employment Report 2016
Goldman Sachs, which typically hires the most LBS MBAs that move into the financial sector, only hired six employees from the 2016 class, down from nine the previous year. Credit Suisse and Citi Bank also hired less grads than the previous year. This all comes despite the fact that the aforementioned companies hired several more total summer interns, but did not retain them. For instance, Goldman Sachs took in 13 interns but only hired six employees—creating a retainment rate of only 46 percent.
Another marked difference is the slightly noticeable decline in finance hires joining private equity firms rather than traditional investment banks. 2016 marked the first year—ever—that more joined private firms, with nine percent of graduates compared to seven percent joining investment banking. These figures fall in line with trends that have persisted since the financial collapse of 2008. eFinancialCareers debuted a report in September of 2016 that found a steadily declining love between MBAs and traditional big banking.
If you’re in London in particular, therefore, the MBA-into-banking route has pretty much disappeared in 2016. Banks’ recruiters say it’s the culmination of a long term trend. ‘This has been going on since 2008,’ says one, speaking off the record. ‘Once things got tough, MBAs just weren’t seen as value for money any more.’
Despite the dampening of the overall numbers, salary rates saw a noticeable bump for finance industry hires. The average annual salary of 2016 grads jumped from £78,358 to £81,905, with the highest max salary leaping from £125,468 to £151,469.
Consulting Hires Jump
The total percentage of LBS graduates joining the consulting industry jumped moderately from 33 percent in 2015 to 35 percent last year, with the majority of hires joining Boston Consulting Group (BCG), McKinsey & Co. and Bain & Company. BCG specifically saw hires nearly double over the course of a year, improving from 19 to 34 total.
Like the financial sector LBS hires, salaries increased across the board for consulting industry MBAs. The average annual salary of those in the industry leaped from £79,773 to £83,268, although the highest salary tracked was £117,389—down from £121,824 in 2015.
The Incoming LBS MBA Class
A total of 411 new students will join LBS in 2017, ranging from 24 to 39 years of age. They enter the MBA program with an average of five years of professional work experience and a 701 GMAT score (up from 699 last year). As well, there is a moderate increase in female students and diversified nationalities. Accepted female applicants jumped to 37 percent from 36 percent, and 68 total nationalities are represented, up from 65 in 2015.
You can read the entire LBS 2016 employment report here.
The Global MBA Experience at London Business School
One of the primary social impacts of increasing globalism is the sense that world feels like it’s shrinking. But for business, that means there are opportunities for expansion unlike ever before. As it has become easier than ever to communicate and work together across vast distances, so too has it become more likely for organizations to grow their businesses. And according to a recent YouGov Survey, globalization is still seen as a force for good rather than bad in the world.
“Unsurprisingly, the countries that are the biggest enthusiasts of globalization are the ones that have benefited most from it—the poorer nations of East and South East Asia,” it explains. “Here, belief that globalization is a force for good reaches at least 70 percent in all countries …”
For that reason, it has become more important than ever for MBAs to gain a global perspective of business while in school. Not only do MBAs with global experience better understand the impact of language, culture, traditions, government, legal structures and politics on business, but they’re also more likely to be able to make use of opportunities that international markets present.
The Global MBA Experience
So, what makes an MBA program global? There are a few factors that go into it including:
- Diversity of students and faculty.
- International orientation of curriculum and course material.
- Employment and recruitment opportunities for graduates.
- Reach of the alumni network.
- Location of the school.
- Partner programs.
Global MBA programs tend to offer a level of international exposure for students and faculty that is not often seen within a traditional, local MBA program. This means that group projects and discussions aren’t based on a single viewpoint but rather reference a variety of regions and countries. These programs also typically include opportunities for additional learning in another country through exchange programs or geographically diverse recruiting partners.
And there’s no hiding the fact that a Global MBA experience benefits both students and companies. McKinsey & Co. analysis shows that companies with a more diverse workforce perform better financially than respective national industry medians. Harvard Business Review recently wrote on the topic as well, saying, “by correlating diversity in leadership with market outcomes as reported by respondents, we learned that companies with 2-D diversity out-innovate and out-perform others.”
Global Business Experiences at London Business School
It’s for this reason and many others that the London Business School has made globalization a priority. Gareth Howells, the Executive Director of MBA & MIF Education, explained it this way. “At London Business School, being global is in our DNA and informs everything we do. By further expanding our reach through the expansion of our global menu, we believe we can ensure our graduates create value and impact all over the world. Global talent is an integral part of today’s workplace with everyone seeking to create success in a multicultural environment.”
Not only is the London Business School 2018 MBA class made up of 70 nationalities, but the school is also about to add even more of a global experience to its MBA program thanks to their Global Business Experiences (GBEs). Each GBE is a week long program that consists of faculty briefings, guest speakers, site visits, workshops, panels, company visits and opportunities to engage with local LBS alumni in each region.
The GBE program gives students the opportunity to apply their academic learning in a real-life, global business environment and ensures students have the skills to constantly evolve their global mind-set. The goal of the program is to help MBAs flourish outside of their comfort zones and to gain familiarity and experience working with classmates and within organizations from different cultures and industries around the world.
The best part about the GBE is that no program is the same. Each experience changes with the location and the organization hosting the experience. Starting this August, MBAs at the London Business School will:
- Experience two new regions for the GBEs including Lima and Tel Aviv.
- Have additional language opportunities: Italian and Japanese have been added to LBS’ existing provision of French, Mandarin, German, Russian, Portuguese, Arabic and Spanish.
- Increase their knowledge with the Global Business Practice course supporting students with cultural awareness.
GBE Student Experience
Below are two student testimonials about the Global Business Experience at LBS.
“What appealed to me was the fact that this GBE had a component where I was working with an entrepreneur,” explained Jenny Troung, a 2013 MBA student who visited South Africa. “This meant that what I was doing in those five days was related to what I had been learning in the previous year. We helped the entrepreneur with his accounting to figure out if it is more profitable to sell a chair compared to an ottoman. And that was real business insight that I had to apply from School.”
“My GBE in Johannesburg was life changing,” described Marie Milleron, a 2015 MBA student. “Whether it was helping our township entrepreneur with the little resources she had, or understanding the challenges of a developing economy with a heavy past, it was a unique time of personal growth and reflection.”
To learn more about the GBE program at London Business School, visit the school website.
