*Jozzua Notes from a Business and Marketing Strategist/Tactician

To MBA or not?

A friend of mine, living in Singapore, told us that the La Salle School system is offering Masters in Business Administration (MBA) close to where he was. I figured that he was probably talking about the DLS-PSI MBA extension program for Filipinos in Singapore. He wanted to find out if it?s good to get an MBA and would it be worth it.

For those who don't know, De La Salle University is a popular high-end school here in Manila and they have various affiliates all over Asia. In the Philippines, DLSU boasts of an educational system that has produced many prominent alumni ? powerful and influential businessmen, as well as other notable artists.

As I recall, La Salle has a pretty decent MBA program. They were once listed in the top 50 Asian MBA schools in AsiaWeek Magazine. The school was ranked 24th both in reputation and in being the best part-time MBA back in year 2000.

To be able to answer if it is indeed worth it, one should probably look into the motivations behind such a move. Why do people go for MBAs, anyway?

The first obvious answer that comes to mind is for, of course, the education. People want to take it sincerely to learn. The right education is always a good investment. Today?s business is evolving very fast across different industries. Being in the program can probably give its students many entrepreneurial insights.

I read in the comments of some subscribers in a yahoogroup about this:

?The problem is, once you start something, you better know how to manage it. For any good idea tends to die sooner or later if you are not equipped to sustain and grow it. In this case, you need managerial skills. That's where your MBA degree comes in. You see, it doesn't end once you get the degree. I tend to believe that the degree should give you all the necessary knowledge for you to see yourself and your situation within the right framework/s.?

I guess there is some value to that. A structured, formal education on business administration could really help lessen some errors in starting my own businesses, for example. Yet, do we really have to go through 3 years of it? Could this education not received from seminars/workshops that don?t take too long?

The next reason for taking MBAs is for career advancement. Fact is, we still are in a paper society that gives high credit to people with MBAs. The better the school, the better the MBA, the higher the perceived value of the individual who has it. People taking up MBA generally end up being high paid employees, a manager or a CEO. It is also of pride to some to have an MBA degree in their resumes.

Here?s another comment I read:

?An MBA would prepare and equip young corporate raiders to handle bigger responsibilities. If one is not lucky enough to have that 'break' or if vying for a promotion with someone of equal work performance or everything else is equal...MBA will be a tiebreaker. MBA will give you the necessary tools and mindset to approach a given business scenario which you might have encountered in your case studies, simulations and discussions among your classmates who are of diverse background, industry and discipline. This in fact is very valuable as you can see how great minds think outside of your own organization.?

Despite this, a mentor tells me that MBAs now aren't as valued as they were 20 years ago. Previously, newly grads from AIM could virtually set their own salaries. In his batch, for example, all of the them agreed not to accept any salaries below a certain figure (say P100,000). They made a verbal agreement that controlled how companies could interact with them.

Now it is said that "MBAs are a dime a dozen." All the major universities offer some form of Masteral Degree and one can only get a really good salary if he/she comes from reputable (and expensive!) schools.

Another reason to take MBAs would be for the ?network of contacts? that one cou
ld harness from the experience. In my opinion, the experiences and insights gained from other people from different industries, as well as the friendship that one could establish, is truly invaluable.

My mentor friend recalls the fun he had back at AIM. They did a lot of crazy and funny stuff with some people who, back then, were unknowns. Now they are prominent people in key industry positions. Having good and memorable experiences in their group, he is now able to approach them easily for potential business deals.

Now that, as the commercial goes, is PRICELESS.

But how much do MBAs go for today? Last I checked MBA in AIM goes around for a whopping US$12,000 per year. In La Salle it would cost 2000 pesos per unit and a minimum of 6 units per semester to get in the MBA. There are 36 units for the entire program. But that doesn?t yet cover some miscellaneous fees. It would probably go for around P80,000-100,000 for the entire program. Other top schools would probably go for around the same rates. There are, of course, probably cheaper alternatives.

For entrepreneurs, this begs the question: Go to business or take an MBA? Do I want to study first, invest around 50K-100K then go into business? Or do I just start whatever business and learn as it moves along? It?s a tricky question that will probably need some deep reflection.

For employees, the short answer would probably be: If you could get a scholarship, get that MBA. It definitely helps careers. To take in on loan, or pay for it personally, would not seem to be a good idea unless you are confident in getting compensated for it later on.

In short, it?s really dependent on what motivates people to go for MBAs whether it?s worth it or not.

Eventually, I just asked my friend, ?So, what drives you??