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Forum Topic : Value of the MBA to the employer
Submitted by Steve on 16/06/2009 - 11:07 PM
MBA - is it worth it? More importantly, is it worth the investment made by companies in sponsoring developing leaders on the programme? It can be argued that underdeveloped managers are a greater cost to a company than the once-off investment of a qualification such as the MBA.

  • A simple insight into managerial economics, such as supply and demand, and opportunity costs assists MBA graduates understand the role of profit maximization endeavors in the firm, and how economics inform organizational decision-making.
  • In aligning the company with the governments economic policies, the manager with an MBA can then oversee the financial management of the firm. And, by understanding the company accounts, the manager can assess the performance of the business.
  • Productivity is seen in terms of the input that all the role-players in the firm must play. Of course the MBA also equips the manager, as a strategist, with analytical tools to assess profitability, through, for example, indicators of return on investment (ROI) or residual income (RI), to mention but two illustrations.
  • Overall, there is one key as to how the MBA programme facilitates improved company performance and increases managerial effectiveness and efficiency.It is accomplished by developing a holistic understanding of business, leading to the detection of business problems and the recognition of opportunities. The MBA manager can truly add value to any firm. And the value is added where it really matters in improved performance of the manager and in increased profitability of the company.

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Financial Value of an MBA
Submitted by Jasmine on 03/07/2009 - 01:02 AM
Financial Value of MBA:
  • An MBA degree from one of the top business schools in America could set you back by up to $100,000.
  • This is by no means a small amount and is indeed one of the largest investments that you are likely to make in your life.So it is necessary to evaluate the value of an MBA, strictly from a financial point of view as well.
  • You need to ascertain the return on investment on the amount that you are likely to incur in pursuing an MBA and see if it is financially valuable to you.
  • Benefits of an MBA in terms of increased salaries, better wages, and more career opportunities to evaluate the monetary value of your MBA degree.
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