This is the fist part of the series Should you pursue an MBA?. This part basically deals with what MBA is all about, what are the major fields in MBA, what are the current trends that you might find in the corporate scenario and especially it tries to address the question of what will happen to the MBA scenario post the CoVid-19 crisis dies out.
What is MBA?
By the dictionary definition, MBA is a course for developing a career in business and management. But there is much more to it than just the core courses which include finance, accounts, marketing, strategy, quantitative analysis, organizational dynamics, operations and many more. The main learning that this course gives is decision making ability in the times of this VUCA (Volatile, Uncertain, Complex and Ambiguous) world. As it has been famously or rather infamously called, MBA is also known as “Mane Badhu Aavde” (“I know everything”) and that actually is true in some sense because MBA is all about learning everything, but the most important aspect to MBA is the application of this knowledge. Only this aspect of your training will actually help you survive in the cut-throat world of corporate.
The benefits that people attribute to an MBA program are several, practical leadership and management skills, a credential that helps you signal to the recruiters, networking opportunity with the top leadership team, access to alumni, and last but not the least potential job growth. There is one more learning that is a takeaway from this course and that is the ability to combine the various facets of management to enhance a business.
Major Fields and Current Trends
MBA courses come in a large variety these days. There are general MBA courses which most of the B-schools offer whereas there are specialized MBA courses in which you select a specific area of management in which you specialize. The major fields that exist in MBA are shown below. We will explore each one of them individually.
Operations
Operation Management deals mainly with logistics, supply chain management, queuing mechanisms, factory floor design, etc. This field has seen a high demand because of the rise of e-commerce and 3PL vendors (Third Party Logistics) in the recent times. Subjects that are covered under this discipline include supply chain dynamics, operation management, procurement, transportation planning, queue management, minimization and optimization, ERP, etc. This is a quant heavy field with a lot of algorithms, excel work and number crunching. A strong analytical mind and/or background is appreciated.
Finance
This is a high growth sector and among the most sought after fields currently. Subjects like accounting, macro economics, investment analysis, portfolio management, treasury and risk management, business and corporate laws, etc. are taught in this discipline. CAs find this fields relatively easier but that doesn’t mean that students from other streams find this difficult or can’t go into this field. Mathematics as a strength is an added benefit in this sector. Career choices include working for an IB or VC firm, Treasury management, Trading, corporate finance, and credit risk management.
HR
Although the most hated or most joked about this field is the need of the hour during this crisis like situation. At the end of the day they are the ones who are running the show from behind the scenes. Subjects one studies in this field are human resource management, industrial relations, organizational and personal dynamics, HR planning, etc. There is a lot of involvement of psychology and soft skill management in this field. Career choices include recruitment manager, head hunter, training and development officer, employee relations manager, and much more.
Marketing
Marketing is a simple demand-supply match game. The difficult part lies in how you manage to do it. Subjects include consumer behaviour, consumer psychology, pricing, customer relation management, strategic marketing, etc. Sales is an inherent part of marketing. They are two different things and understanding the difference is very crucial. People generally shy away from this field because of high involvement of sales roles in the first few years. But you need to understand that on ground experience in sales can help you be a good marketing manager. Career choices include marketing manager, sales manager, digital marketing, market research, brand and product management, and even marketing consultant.
IT and analytics
This is an upcoming field, and not many institutes offered specialization in this field until very recently. As a standalone field its scope is limited but this field is generally integrated with other fields and hence the scope is limitless. Analytics is something that is going to be used in all fields. Subjects include strategic planning, big data management, IT management. Career wise there are opportunities as a product manager, IT consultant, and business development manager.
Consulting
A high profile, and highly taxing job. But if you enjoy the consulting life then there is no turning back. This field gives high exposure to various industries and also to a high variety of projects. Consultants generally need to know everything about all the fields mentioned above because they handle different projects in different fields. But after a point, each consultant specializes in some sector and some vertical. Job opportunities mainly involve an advisory and/or consultant role to other firms.
Entrepreneurship
I think this is self explanatory. MBA helps give a structure and helps create a network that is required for entrepreneurship.
General MBA is basically a combination of everything mentioned above. There are two other upcoming fields which are still in their nascent stage – rural management and healthcare management. This list of fields is not exhaustive, and as time and requirements of the businesses change, the structure of the MBA courses change as well. The B-schools are always upgrading their curriculum and structure based on the market demands and trends.
What about the post-CoVid scenario?
First of all, we need to be clear about the skills that MBA teaches you apart from just the management studies. I mentioned them once, but to drive my point home I am mentioning them here again:
- Agility
- Tackle Stress
- Leadership
- Decision Making in uncertainty
- Think outside the box
- Practical knowledge rather than just rote learning
- Networks
Now in the post-CoVid situation these are going to be the most needed skills I would say. Each business will be struggling to come up and they will require the managers to be taking decisions or what are known as tough calls. MBA demand will go up that is what I believe. Now, the question may arise how are they going to compensate for the MBA graduates because with the imminent slowdown and considering the already high unemployment rate, salary cut-downs are expected. Enter Return on Investment (ROI). So the correct question to ask is, is the ROI worth in this situation? In the short run NO. Because most of the people take loans to fund their MBA and with lower salaries it will take a longer time to repay them and hence a higher interest. This is the layman’s perspective.
From an MBA graduate’s perspective I see an opportunity. An opportunity to make a mark in the post pandemic world where there are doors opening left and right around you. If you are the person who comes up with an idea that saves even a single dying product or helps in a successful M&A, then that is a career maker. Moreover, MBA colleges are quite agile and they change their curriculum according to the need of the hour. In such situations, someone who can direct the organization well will be appreciated.
The downside during this situation will be that the salaries will be affected. And my only advice over here would be that one should never choose one’s goal or such a big life decision based on money only.
The Pandemic will start slowing things down. So far so good? What will happen to travel? It will reduce. Hence the opposite of globalization i.e. localization will start happening. And this will give rise to new opportunities for firms. Work culture is affected. There are new fields opening up in HR and IT management because firms have seen the benefits of the WFH culture. M&A will be affected that will open up new opportunities in Finance and much more. These are just some of the examples that I can give.
Businesses are going to run. MBA is all about being at the right place in the right time. If you manage to do that then as soon as the company starts doing better you will also be upgraded accordingly.
That’s all folks for now. In the next few posts we will be talking about the Why? Who? When? and Where? of MBA life!
Originating Ideas 