The MBA equation: when it comes to MBA programs, cost and quality are kings. TAMSYN SMITH examines what makes a good MBA program, as well as what schools in the region are doing to grab their share of students - Asia's Top MBA's - masters in business administration

Business Asia, Nov, 2002 by Tamsyn Smith

Starting out on a career path today more often than not requires a certain standard of international qualification. In business circles, meeting this standard usually means some form of post-graduate study--one of the more popular options being the Masters in Business Administration (MBA).

Many MBA programs exist around the world, and attracting students has become a fiercely competitive marketing exercise. This is evident in the Asia Pacific, where universities are still finding their niche in the higher echelons of business education.

Raising standards

Professor Vincent Lai, director of MBA programs at The Chinese University of Hong Kong, says Asian universities are having to work hard to design their business curriculum, as well as improve their research infrastructure and productivity, to match the quality of the US business schools. Raising standards to an international benchmark was necessary to give students what they expected and required.

What a student looks for in an MBA course depends a lot on where they are from. Professor Michael Vitale, dean and director of the Australian Graduate School of Management (AGSM), says 35 per cent of students involved in the school's 2002 full time MBA course are from outside Australia.

The largest single group from one country is 11 British students, who Vitale says are looking for a familiar culture, good weather, perhaps emigration, as well as good value for money.

Different needs

Looking to Asia, the needs are different, with international networking opportunities being a major factor when choosing a course, while still retaining an Asian "flavour".

This opinion is supported by Cynthia Celestine, director of IDP Education Australia (Malaysia), who says international exposure and networking is very important to business students, and the career advancement that comes with it.

"They're not only getting Australian exposure, but also an international viewpoint from classmates on the course," Celestine says.

Chinese University of Hong Kong's Lai focuses more on the benefits of remaining in Asia, saying students in the region may prefer a more localised education--that is, having courses and class material that is relevant to their culture. "They like to know how Western business theories could become applicable to their country," Lai says. "Some of our MBA programs even have courses that integrate Chinese philosophies into business management."

Value for money

IDP's Celestine says Australia is the number one destination choice for students from Malaysia, Singapore, and a number of other countries in Asia, not only because of the international exposure, but also the lifestyle, proximity and value.

When looking at Australian MBA courses in comparison with others around the world, cost is a significant and attractive factor to consider.

According to a report produced by IDP Education Australia and Australian Education International, "Comparative Costs of Higher Education Courses for International Students in Australia, New Zealand, the UK, Canada and the US", Australia is one of the more reasonably priced options.

The median fee for an MBA in Australia is US$12,598 ($22,791), which is less then half the median of the most expensive US private course.

Add on the cost of living, and the total comes to US$23,518. This is more expensive than New Zealand, for which the total median is US$19,012, as well as the UK. Costs of other Asian courses were not included in the information, but they are likely to be quite varied. Lai says cost of living presents a challenge to attracting students to Hong Kong.

Hong Kong is known as an expensive place to live compared to neighbouring cities. "This will definitely have an adverse effect on student recruitment within Asia," Lai says.

Competition

There are other issues that create even more competition in the market for MBA courses.

AGSM's Vitale says that unlike the undergraduate space, where there is competition between countries, competition between MBA programs is focused more in terms of school on school. "There's a very clear pecking order among MBA schools," Vitale says. Rankings are very important to MBA schools, as well as international accreditation, and reputation.

These considerations were important because employers were much more particular at MBA level as to where the qualification came from, says Vitale. Australia and Asia has the added pressure of fighting against a common stereotype that US schools are somehow "better"' than anywhere else.

Chinese University of Hong Kong's Lai says competition is intense, both locally and globally.

"Though the reputation of our business schools is quite good in the Asia Pacific region, many overseas students in North America and Europe may have never heard of our university before. Therefore, convincing the US and European students to study in Hong Kong has never been an easy task," he said. "Worse, students in most Asian countries still have a stereotype that the US MBA programs are better, both in their design and quality," Lai says. He added that it was difficult to convince good students to stay local.