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

More pressure

Added to this was the pressure created by an influx of top US business schools setting up branches in Asia. While none have yet ventured onto Australian soil, AGSM's Vitale says it is inevitable.

"I believe it will happen in Sydney--when that happens the game is going to change dramatically," Vitale says.

"Australia is a smaller market, a smaller country, a long way from anywhere, but given adequate money and a good brand, you could set up a school in Australia that would be an absolute boomer."

Lai says the answer to this competition is harder recruiting, more budget for promoting the programs on offer, as well as keeping the curriculum up to international standards.

Staffing

Another major challenge highlighted by Vitale was the recruitment and retention of good faculty staff. At present there was more demand than supply, not helped, says Vitale, by low salaries compared to international standards. At the AGSM, over half the faculty were educated outside of Australia, and while they were well paid by local standards, salaries were half of what they would get elsewhere.

Offers from overseas were understandably very tempting. "It's hard to attract people and retain them, because when they get good, people from overseas are trying to snatch them away all the time," Vitale says.

Consolidation

The large number of MBA courses in Australia also made it difficult to find a good faculty.

The IDP Australia publication "Your Guide to MBA Programs in Australia" says there are more than 50 MBA programs offered in the country, and it was one of the most in-demand study options. Vitale says this is too many due to the shortage of faculty, as well as the concern over the quality of some of the programmes.

"There are a great number of programs that are of uncertain quality," Vitale says. He believes the answer was to consolidate or cancel MBA programs, allowing universities to make the best of resources and specialise.

"We're not world quality in much of anything in education in Australia," he said. "Consolidation is not going to be easy, but I think it has to happen."

RANGE OF FEES FOR MASTER OF BUSINESS
ADMINISTRATION (US$)

                 Australia       New      UK   Canada       US       US
                             Zealand                    Public  Private

Median Fee           12598     12043   13883    16246    23480    29800
Max fee              28221     17728   36534    39625    50316    57000
Min Fee               5698      8350   10259    11191     5410     9360
No. of unis             32         5      37       20       32       17
Cost of               6043      5523    8783     6906     8529     8529
  living/yr
Median length          1.8       1.3     1.0      2.0      2.0      2.0
  of course
Median total         23518     19012   23119    30585    41600    48204
  cost (living
& studying)

Source: IDP Education Australia and Australian Education International
"Comparitive Costs of Higher Education Courses for
International Students in Australia, New Zealand, the Canada and the