Do You Need an MBA?

At one time or another nearly every student,The reason why an MBA might not be necessary if
executive or business-minded person contemplatesthe student is deciding to stay in the same field is
whether to pursue the MBA or Masters in Businessbefore is quite simple. The time, typically two years,
Administration Degree. We all hear the stories ofand great expense of pursuing the MBA is an
young MBA graduate landing prestigious Wall Streetopportunity cost for the student. If the student would
jobs or thirty-somethings going back to school tobe further ahead simply working themselves up in the
change careers, but do you really need an MBA orcurrent path they are in than they would be after they
can you succeed in business just fine without one?get out of the MBA program, then the MBA might be
What Do You Gain By Having An MBA?a waste if looked upon in a pure dollar/time cost
The stated and obvious objective of a pursuing ancomparison. Of course this is ignoring the other
MBA is to educate and teach the student a core set'experiential' benefits already stated which of course
of business competencies as preparation for ahave value.
successful career in business. These skills encompassAnother popular reason to pursue an MBA are those
such subjects as finance, marketing, strategy,looking to pursue an entrepreneurial route and want
economics, and management among several others.the academic, networking and personal experience
Along with the academic, an MBA also cultivatesthat an MBA provides. While for some this can
students in other ways through 'soft' and 'experiential'certainly be a valuable path to take, an argument can
skills such as the experience of working on groupbe made that a truly focused and dedicated
projects, leadership training, and being immersed in theentrepreneur can succeed without an MBA. Such
intellectually stimulating environment that working alongacclaimed entrepreneurs and CEOs without MBA's
with other motivated, bright students and faculty fromsuch as Steve Jobs (Apple), Bill Gates (Microsoft) and
a wide range of backgrounds provides. Finally, goodMichael Eisner (Disney) are proof of that. With that
MBA programs provide in-depth networking andsaid, there is an equally long and prestigious list of
contact building opportunities as well as careerthose that did obtain an MBA and where it created a
guidance and in some cases even job placement.valuable base for their later success such as Donald
What Kind Of MBA Candidate Are You?Trump (Trump Organization), Laurence Fink (Blackrock)
MBA candidates typically fall into one of three groups.and Phillip Knight (Nike).
Depending on which type you are also dictates howWhen You Might Absolutely Need An MBA.
obtaining the MBA is of value to you and whether youThe one situation where an MBA might be absolutely
really need one.. The first group typically consists ofnecessary is if your current employer requires one in
those students who are in their mid twenties to earlyorder to achieve a certain level of management. In
thirties with a few years of work experience behindthese cases, it is not unusual for the company to offer
them. They have decided to obtain their MBA as ato pay for your MBA with an understanding that you
way to polish their educational pedigree and use thewill continue to work at the company after you've
MBA as a launching point into financial jobs on Wallachieved the degree and with an implied promise that
Street or to various positions in Corporate America.you will eventually reach higher levels in the
These are the 'typical' MBA students and make up theorganization. This is a win/win situation where you get
bulk of the programs.a free ride financially and benefit both by becoming
For most of this category, an MBA while desirable,more knowledgeable and experienced through formal
might not be absolutely necessary unless the studentbusiness school training and more valuable to your
is truly trying to change fields into a very specific andcompany as a higher educated and more capable
contrasting field from what they've done before. In thatemployee.
case, the MBA can be the 'great equalizer' and afterAs can be seen, the question one should ask when
graduation the student can then pursue a job in forwondering if you need an MBA is...if you don't get one,
instance investment banking when before they were inis there an alternative path to your goal and what is
media. Without the MBA experience it might havethe opportunity cost of pursuing the MBA? Depending
been difficult if not impossible to make the careeron what these answers are will tell you whether you
transition between two such disparate fields.need an MBA.