Foreign MBA: How much does it cost?

Today, an MBA has become an entry ticket to a job in India. Almost every graduate, unless he/ she has a technical degree, is required to have a management qualification to be considered eligible for any meaningful role in the corporate world. Where aspiring students a decade ago were greatly constrained by the relatively small number of B-schools in the country then, candidates today have no dearth of options to choose from.

The supply of management education has come up to match demand at a fantastic speed over the past seven-eight years. While the quality of this additional supply might be questionable, the cost of this education is still high and increasing each year.

Yet, when one compares the cost of doing an MBA in India versus that abroad, the difference is an order of magnitude, suggesting the degree to which management education in India might be subsidised, or the degree to which it is over-priced abroad.

My first exposure to this variation in costs came long before I had even thought of studying abroad. When I was in my first year of degree college, I visited an MBA education fair conducted by leading UK universities, at the World Trade Centre in Mumbai. In addition to familiarising myself with curious English county and province names, I learnt that management education is far more expensive outside my own country.

I believe I had silently agreed with myself then that I would focus solely on the top institutions in India rather than worry about raising funds for an MBA abroad. Little did I know that my attitude was to take a complete U-turn a few years hence.

One of my major criteria for shortlisting a foreign B-school was the finances required. There were three categories of financing required:

• Programme-related: These were the tuition fees, the living expenses, and the medical insurance (mandated by some countries).
• Application-related: These included the testing fees for GMAT and TOEFL/ IELTS, the prep material for the tests, cost of an application for each B-school, cost of transcripts and attestations, scholarship/ loan documentation costs, courier/ postage charges and stationery.
• Visa-related: These were the visa application fees, documentation costs and liquidity maintenance costs.

I decided to determine the timing of my application based on the overall financial attractiveness of each school. Almost all US schools gave me tremendous heartburn in this respect. From the brochures and the alumni reports, many of them seemed like great places to study, with several 'fun' ways to develop personality but, alas, the more 'happening' they seemed, the less my pocket felt able to support their costs.

Again, the predominant two-year format across the schools made the opportunity costs high. Secondly, there were ridiculously few financial aid options that an Indian student could avail himself/ herself of. Dependence on a slight chance of a teaching assistantship coming by (only in the second year of the programme) did not seem like a good idea.

Thirdly, the prospects for employment in the US post-MBA were not looking rosy due to tightening visa norms. I worried that I may not have the chance to recover my investment... if at all I managed to put in the money in the first place.

The European schools offered a via media in the case of tuition fees due to shorter programme durations and hence lower costs. Yet, the total programme-related outlay for a school would still be about two-thirds of that for the average US school. Again, the cost of an application, though a small drop in the ocean of expenses, was higher for European schools.

Also, the visa norms for Europe were not just stringent, but also rather difficult to satisfy from the perspective of a long-term work opportunity. Given the tight visa regulations and high liquidity requirements for Australia , I had already demoted Aussie schools in my priority list.

I figured that if I applied to my high-priority schools early enough in the admissions cycle (most schools have at least two and at max four rounds of applications; some others have rolling admissions), then based on the responses, I would know which schools are definitely meant for me or not (and vice versa). That way I would not be putting all my application resources at stake at once.

Once again, I used a loose model (this time without an Excel worksheet!) to decide which schools I should apply to and when. The first pass had to be the affordability of the programme itself. Singapore and Europe led the race here. Living expenses only marginally impacted this score in all Western cases.

The second stage was ease of obtaining a visa. The US and Australian schools fell back a bit on this count. The final pass was the costs of applying. Since costs of test-taking, transcripts, attestations and documentation were distributed across schools, I did not consider these aspects. The top priority schools soon miraculously emerged.

The schools that made the cut then for applications in the first round were the two UK schools, Oxford and Cambridge, which offered loans through tie-ups with regional banks based simply on acceptance of a candidate to the programme, UCLA in the US, because the timing made good sense, and NUS at Singapore, because it was the easiest on the pocket. I decided to phase out the remaining four schools similarly over two more application rounds, all the time hoping that I would never have to resort to them.

I received a lot of questions about how I was managing the funding from peers who had already been through the rigmarole of an MBA. Since many of these were the MBA (Finance) types from the good ol' IIMs, the typical questions tended to be, "Have you calculated the expected Return on Investment?", or "Have you done an NPV analysis of this project?", or "What do you estimate will be the payback period for this investment?"

When faced with such a barrage, I would usually just smile back valiantly and propagandise the power of optimism. Honestly, for all my analytical skills and consulting orientation, this was one area about which I confessed (secretly, of course) complete naivete. I knew that I was too far gone to turn back. I also knew that I was sincere and would make it work any which way. I surrounded myself with people who believed likewise.

That's not to say that I distanced myself from the cautious types. There were no naysayers in any case. The time was ripe for getting back to education. The signs of recovery of the economy were apparent on the horizon. If all went well, I would be in form to catch the trend on the upswing. Of course, I had set some sort of a monetary floor below which any outcome of the entire effort would be unsatisfactory even to me. I was certain that if I came back to India to work soon after the MBA, then I would be able to command a price at least five to six times that at which I left for the MBA. If I landed the right opportunity within the destination country then, of course, I would not expect anything less than the average payoff for a graduate.

However, I did not want to be vain and measure my success only in terms of the $$$. The high price I was willing to pay had a lot more to do with the exotic learning environment, the diverse peer group, the wide alumni network, and the surrounding opportunities of living in a foreign location, than simply with the technical knowledge provided by the syllabus and the immediate job opportunities. Undoubtedly, there was no easy way of measuring the ROI on these aspects.

I eventually applied to three schools in the first round, the only round, and got accepted at two of them. Funding woes sorted themselves out after a little running around domestic banks (where Loan Officers found it hard to understand why anybody would be mad enough to spend more than Rs 30 lakhs on any kind of education, let alone an MBA; they entertained me nevertheless, fascinated by the Oxford brand).

A benefactor presented himself just in time to help me tide over the deadline for final acceptance at the school. A small scholarship came my way and provided for the peripheral expenses. A term deposit matured just in time to ensure that my terms at school would pass without a (financial) hitch. Overall, it was a story with a happy ending, or a happy beginning!

Looking back, there has not been a single moment that I have regretted having made the choices that I made -- whether it was the choice of going abroad, or going to Oxford, or coming back to India thereafter. The MBA did pay for itself. And I sense that the payoff is not finished yet.

International MBA: Making the decision

October 30, 2008

Part I: Why I did an MBA abroad
Part II: Where should I do my MBA?

Questions, answers, and then more questions! The whole affair with the foreign MBA seemed to involve more and more decisions as one went along. As soon as I'd figured out why I wanted to do an MBA, I had to decide where to do it from. No sooner had I got that nailed than I had to decide which business school to apply to. And the more time I spent in answering that question, the larger the number of variables got, making my task tougher with each additional one!

But, that's where I brought my work experience as a consultant into play -- I structured the process as best as I could. I first focussed on the critical factors in the decision. Then I laid out the constraints. Finally, after assigning weights to each variable, I did the qualitative additions and subtractions to arrive at a target list. Essentially, I believe I used a framework that I would like to call "the four Ps of b-school decision making". The four Ps (no connection to Jerome McCarthy's theory on marketing) are Programme, Prospects, Price and People.

Programme
I had seen many of my fellow applicants recite B-school rankings at the drop of a hat. Rankings, thus, seemed like the logical place to start the investigation. Since the brand value of an MBA is one of the key components of the money you spend on the MBA, I felt that the total value of the programme would be reflected, to a great extent, in the rankings.

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However, to ensure that I was not swayed by the "one-year wonders" (schools that suddenly peaked in one year and slipped off the rankings thereafter), I tabulated rankings for schools over three or four years. To make sure that my impression was correct, I also looked at rankings from about five publications. The emerging pattern showed that certain schools maintained a respectable position consistently, about 15 of which I put up on my shortlist.

Then I considered the specifics of the programme itself such as whether it had a one-year or two-year format or anything in between, assigning a higher weightage to those of shorter durations. I pored over the brochures to glean information on the specialisations the programmes were known for. I attached a marginally higher weightage to those with strengths in corporate finance, my main area of interest.

I jotted down the flexibility available in choice of electives. I also performed a reality check by noting the acceptance rate at the shortlisted schools. The best schools would also have the highest number of candidates competing for them, right?

In the case of business schools from non-English speaking native regions, an additional (cultural) feature caught my attention and my fancy -- the bilingual study methods -- ensuring that every participant would have an advanced (business) level of proficiency in the local language. This was peculiar to some European programmes and given my personal interest in languages, I gave them an additional vote.

Prospects
The purpose of the MBA, at least in the immediate term, was to accelerate my career path, which subsumed the aspiration for a more lucrative work opportunity. Therefore, the work prospects after the programme would be a key determinant of my decision. I examined the employment/ recruitment statistics at the shortlisted schools -- the percentage of students placed through the school's career services, the major sectoral groups that recruited them, the range of remuneration they were offered, and the locations they were offered positions at.

This consolidated picture told me which schools were preferred by which employers for what type of candidates at what locations and for how much money. It also suggested to me the extent of personal initiative an international candidate might have to take to balance the support provided by the schools' career offices in job search.

Price
Having spelt out the critical determinants, the value proposition and the payoff, I decided to flip the coin and take stock of the constraining factor -- the moolah! What price would I be paying for the payoff?

Expectedly, the schools higher on the rankings tended to command a higher price. With US schools dominating the rankings, they happened to be the most expensive at least in terms of tuition fees. The European schools, in general, were more cost effective because of the shorter durations of programmes, which also offset the opportunity cost of an extra year of education that one would go through at North American schools. However, they were more expensive in terms of living costs (think London [Images] or Paris). The Australian and Singaporean schools were, by far, the cheapest options.

Funding options only at the best schools in the US, UK and Europe were sympathetic to international students. That also meant tougher competition, with every candidate vying for the handful of MBA scholarships, teaching assistantships or university jobs. At the very least, I had to get an acceptance to be eligible for a loan under the funding programmes co-sponsored by the schools and reputed banks. Schools with these options got additional points on my personal ranking system.

I also did a quick calculation of visa requirements, fees and timelines for visa processing. Australia [Images] suddenly started to seem more distant, courtesy the stringent visa norms. Of course, USA had not got any friendlier to students in the aftermath of the September 11 bombings. I remained apprehensive about the US schools but retained a couple on my shortlist.

People
Finally, I had to rely on my overall feel of the programme. In my research on B-schools, I had made it a point to speak with as many alumni as I could contact from as many schools as possible, to understand their own motivations for doing an MBA, especially from the chosen school. Most times, I contacted the schools directly to gain correspondence details of alumni and/ or current students. From the responses that I received from schools (some were very prompt and open, others elusive and guarded) and the actual conversations with the ex/ current students, I learnt about the culture and the people, apart from the typical programme-related information, at the various schools. After all, an MBA was not meant to be only about study; it needed to have a 'fun' element too.

In my book, one of the greatest take-aways from the MBA experience would be the alumni network that I would become part of. One impact of this conclusion was that the school needed to have a sizeable alumni network. Also necessary was the composition of my class, an important factor in determining whether I would thrive or not. Having learnt through personal experience that a diverse group usually makes for greater learning, I championed the diversity cause at every opportunity I got. Having a fairly diverse profile myself (non-engineer ie economist, law graduate, financial services professional, female) made the cause seem even more worthy.

I, therefore, assigned high weightage schools that had a high 'diversity quotient'. I defined this score based on an amalgam of several factors such as the ratio of men to women in a batch, the proportion of international students in the batch, the number of countries represented in the class, and the type of backgrounds students came from.

In general, the European schools tended to score much higher on these counts than North American or Australian/ Singaporean schools. This was partly due to the fact that the small size of the home country mandated attracting larger proportions of students from outside the country. However, a more interesting and important characteristic was that these schools had slightly older students than the others -- the average age at a European school being 29 or 30 years as compared to 26 or 27 at others -- which also meant that they had greater work experience. Although I would have been an outlier on the (lower) range of ages in the class, I was more attracted to the mature profile of students at the European schools.

My interactions with alumni showed that this factor played a great role in the way applications were evaluated by the Admissions Committees of schools. In general, at schools with a younger candidate pool, the relative shortage of work experience and work-related achievements forces the AdComs to focus more heavily on academic performance and GMAT scores of candidates. However, at schools with a more mature candidate pool, there is more for applicants to talk about in terms of their experiences at work, and a sharper articulation of their motivations for pursuing an MBA. Thus, the AdComs indulge in a well-rounded evaluation of the entire application.

This realisation meant two things to me: (1) that a more mature class would provide me with a wider opportunity to learn from and share with my peer-group and (2) that my application would get a balanced reading, improving my chances of acceptance to the programme.

The Final Countdown
In those 10-odd months before I began the application process, I had been through enough literature on an international MBA to last me a few years. It was time to make a decision. My rather complex database and evaluation model threw up the suspects:

• USA: Anderson (UCLA) and Stern (NYU)
• UK: Said (Oxford) and Judge (Cambridge)
• Europe: RSM (Rotterdam) and HEC (Paris)
• Australia: AGSM (UNSW, Sydney)
• Singapore: NUS

With this eclectic mix of eight schools on my target list, I braced myself for the next phase -- figuring out the details of application and funding.

Prospective students, if the foregoing ramblings make the rigmarole seem like a labyrinthine process that presents a risk of getting more entangled rather than a solution to getting sorted out, do not despair! As you immerse yourself into it, you will realise that several options have a tendency towards self-elimination because of the sub-conscious bias or preference you have towards certain attributes of a school. The true test comes only after you have arrived at your target list of 6-10 schools and must decide which ones to dedicate application resources to. Until then, you may as well bask in the attention when a colleague or peer taps your knowledge bank for advice on deciding which B-school to choose.

This article from TestFunda.com is the third in a series of five articles focussing on pursuing an MBA abroad. This article has been authored for TestFunda.com by Maithilee Shirgaonkar, who has done her MBA from Said Business School, University Of Oxford. TestFunda.com provides complete, comprehensive online preparation for CAT, XAT, FMS. In addition to solved papers of last three CATs, the user friendly website has free iCATs, puzzles, Question of the Day, Daily Vocabulary List, Interactive Learning Games and Ask-a-Doubt.

Where should I do my MBA?

The articles have been taken from rediff.com Credit goes to the author of the article.
October 09, 2008

Part I: Why I did an MBA abroad

USA! The land where, in spite of the financial turmoil, all dreams are fulfilled! OR
UK -- an unvoiced aspiration, a touch of class OR
Europe -- pretty, romantic, refined? OR
Australia [Images] -- spanking new, cheerful, fun! OR
Far East -- picturesque, ancient yet ultramodern OR
South East Asia -- closer to home, familiar, comfortable, cheap!

The decision to go abroad for the MBA was made, but when the time came to decide where exactly to go, the number and variety of options was baffling me, to say the least! Where should I start?!

The US seemed the natural first choice for most of my fellow MBA applicants, thus, it seemed obvious to follow suit. It was, after all, the place where many Indians had transitioned from the mindset of a controlled socialist regime to the wonderful meritocratic broad-mindedness of capitalism. It was where middle class migrants had found an impartial platform to take their dreams to reality. It was the richest economy in the world, which welcomed foreigners like no other country in the world, to partake of that wealth. And, of course, it had the largest concentration of top international business schools. The legendary Harvards, Kelloggs and Yales of the world resided there. It was the ultimate destination for a young upwardly mobile corporate worker.

But then, in 2001, the world learned of a man named Osama Bin Laden. USA, after being struck by disaster on 09/11, changed its attitude towards foreigners and the value they added to its economy almost overnight. In an already recessionary economic trend, the September 11 attacks on the World Trade Centre in New York only served to extinguish the hopes of many MBA aspirants of making a successful career in the American corporate world.

Needless to say, it also dampened my spirits and inclination to retain US B-schools at the top of my priority list. In fact, the economic events of 2001 made me rethink my decision to even go to business school in the coming year. I rescheduled my GMAT test date for a later time in order to go over the MBA plan in greater detail.

However, given that the USA was still home to the greatest number of highly regarded B-schools, and because a strong brand name would matter even more in a slowing global economy, USA (Los Angeles and New York) remained a strong contender in my list of places to consider.

Most top US schools were similar in some respects -- a two-year format, very high tuition fees, living expenses almost as much as tuition fees, and few sources of funding open for international students. Given that Indians tend to find any other country (with the exception of Nepal, Bhutan and Sri Lanka [Images]!), much more expensive than their motherland, the expected costs of doing an MBA in the US looked more terrifying, with each passing day.

To top that, the rupee-dollar exchange rate had never turned so unfavourable and so quickly for students as it did at that time. With the forex rate at Rs 47.50 to a dollar and expected to move to anywhere between Rs 49.00 to Rs 52.00, the feasibility of funding the education was becoming lower each day.

I voiced the concerns to a friend, an older, wiser and more knowledgeable colleague. He suggested something that had never occurred to me -- why not Australia? Why not, I said! It was certainly much cheaper, it had variable MBA formats from 16-month to 21 month programmes. There was less competition for the schools there and, thus, acceptance could be easier.

And, of course, the Aussies were known to be fun-loving people living in a beautiful country... er... continent. I quickly went to a global ranking list of B-schools, the famed Financial Times rankings, to figure out which schools were worth getting further information on. At least two appeared to meet the basic criteria. I put Australia (Sydney and Melbourne) on my long list.

From this experience, however, I felt it might well be worthwhile to expand my scan to a wider geography. When the cost impact of a shorter versus longer programme became apparent, I thought it only made sense to scour the B-school map for programmes shorter than two years. That was when I became aware of the European model of business education.

The consistently shorter programmes, more diverse classrooms, and the attraction of bilingual teaching methods proved to be a strong proposition, not to mention the charm of a European city. Living and working there in the future appeared as exciting as anywhere else. It was heartening to note that several European B-schools were ranked high on many important aspects by various publications. So, Europe, more specifically France [Images] (Paris) and the Netherlands (Rotterdam), found a place on my long list.

Now, one could not go to the continent and not visit the islands, the once-upon-a-time masters of our motherland. Given the long-standing affinity that Indians have had for the Kingdom, I checked out the UK B-schools too.

By now, I had ordered brochures through the online request forms for over 50 schools from around the world. Managing all the information in my head would not prove efficient, I realised. I took recourse in the wonders of MS-Excel and created a master database with information on every conceivable variable that a typical B-school applicant would want to consider in a B-school. Of course, the UK was also officially on the long list now. The giants, Oxford and Cambridge, had to be considered. And the idea of being in or near the beautiful and happening London [Images] was a strong motivator.

No major geographical region should be left out, I reasoned, especially, if there was a chance to find out whether a gem was hidden in my own backyard. I hastened to check out what Asia had to offer. While China and Hong Kong posed a language problem (Mandarin and its various forms not being the easiest to learn) Japan [Images] had yet to earn a strong reputation for its business education.

Philippines did not resonate with my ambitions of settlement and was ruled out. Singapore, however, seemed to be an ideal fit, the right balance between quality, cost, reputation, opportunity for work, internationalism and familiarity. It was a winner from the start, and it went up on the list.

The research was now complete, I decided. I now had five major geographical regions on my list, each represented by two locations on average. By now I also was the proud owner of my very own library of B-school programme brochures from over ninety schools across the globe. I knew, in careful detail, the attributes of at least 75 of the schools on the current Financial Times Top 100 Global MBA Rankings, and those of another 15 odd that are not currently ranked.

Each brochure had markings in relevant sections in various colours, date of receipt of the brochure, a sign extracted from a well-defined legend indicating the level of desirability of the school/ programme on the cover page, and an autograph by yours truly.

I would have to admit that even though my search for a location and B-school was more broad-based than that of many others, who singularly focussed on one country, usually the US or UK, I did rely on rankings, albeit from more than one source (about five, actually), to make a first cut. Also, I looked at rankings across three or four years to ensure that a school's reputation was consistent.

However, I was so involved in the due diligence that I went beyond an academic study of school websites and brochures, and ensured that I spoke to alumni from the schools wherever possible, whether I intended to go to the school or not. I consistently kept track of discussion threads on online message boards to get a sense of the environment at the schools. I interacted with other MBA hopefuls to stay motivated, to get ideas for improving my application, and to develop clarity in my own objectives.

When I look back, it surprises me that I had the perseverance to keep up the research for a whole year before I started the application process. Of course, the immersion in this study ensured that my application process was extremely efficient and effective. In fact, through the process, I have had the chance to get in touch and stay connected with alumni from several B-schools around the globe, something that would have hardly been possible if my search had been uni-directional. The need or benefit of having that network has already started becoming apparent in my life post MBA.

To all aspirants, I would say, it is great if you have already made the decision to study in a specific country. If you have not yet reached that stage, however, do remember to keep your mind open to possibilities. An MBA is not a fad; it will be a major investment from which you should be able to extract as much value as possible. Whatever course you take, ensure that you retain the objectivity in your plan.

Part I: Why I did an MBA abroad

This article from TestFunda.com is the second in a series of five articles focussing on pursuing an MBA abroad. This article has been authored for TestFunda.com by Maithilee Shirgaonkar, an MBA from Said Business School, University Of Oxford. Easy, Effective and Personalized, TestFunda.com currently provides complete online preparation for CAT, XAT, FMS. In addition to solved papers of last 3 CATs, the user friendly website has 4 free iCATs, puzzles, Question of the Day, Daily Vocabulary List, Interactive Learning Games and Ask-a-Doubt.

Why I did my MBA abroad

October 03, 2008

I am going to do an MBA."

It was during the final few days of my degree college that I came to this realisation, one of the first milestones in my then fledgling career. Today, this is an oft-heard refrain from bright-eyed college-going youths.

The obvious next question is, "Why?" Many a time, the answer could be simply, "I want a job guarantee when I finish my studies." In fact, that is quite close to my own answer when I first articulated it while still studying in college. While this answer may satisfy a casual acquaintance, it will be probed into much further by the Admissions Committee of a business school that you decide to apply to.

My ambition to pursue an MBA went through a long gestation period before becoming a reality. It was almost three years after I graduated, three years of being a part of the corporate world, that I finally took concrete steps towards a foreign MBA. I had realised by then that I needed to answer two questions: why an MBA? And, why abroad? These remain important for any candidate.

The former pre-supposes that you have given sufficient thought to the career need that the MBA will fulfil, implying that you already have some first-hand understanding of a career ie you have work experience. The latter assumes that your career aspirations are linked to working in a multinational environment.

Why MBA?

So, why did I do an MBA? When faced with this question, I put myself through the 'ART' test. The test asks three questions of a candidate considering doing an MBA:

• Do you want to Accelerate your career in the current industry?
• Do you want to Rotate to a business/ corporate function within the current industry?
• Do you want to Transform your skill-sets to change to another industry?

An affirmative answer to any one question is, superficially, sufficient reason to want to do an MBA. The important thing for me was to identify exactly where this career move was focused. I decided that A -- Acceleration resonated the most with me.

I was working with a group of bright, motivated individuals. My superiors provided me with learning opportunities now and then. However, I had reached an invisible hurdle beyond which growth demanded an additional set of skills, which I felt an MBA would address. Now that the toughest part was over, the next step was to elaborate and justify this answer with valid reasons.

It is completely acceptable for you to want to achieve more than one of the above objectives through an MBA. But a careful drilling-down into the story is critical.

Acceleration
This could be in terms of the number of steps of the hierarchy that the MBA will help you to jump and/ or the amount of money it will enable you to demand in the job market. It could also mean an accelerated career path, a fast track, which your organisation can provide you with by virtue of your MBA degree.

There could be environmental factors, such as a dynamic industry scenario or a downturn, that warrant different skills and techniques to successfully handle business realities. As a middle/ senior manager or as a businessperson, you may feel the need for an MBA to ensure that you maintain or increase the pace of growth of your business.

Rotation
You have made good progress on your career path, obtaining a promotion every year or two, handling greater responsibility with each, and drawing a larger pay packet at each level. However, the growth is unidirectional, with a greater volume of work supervised at each level, but no additional faculties being developed. You wish that you could gain a broader perspective of business and contribute in a wider spectrum.

What you really want is to have a cross-functional understanding of your industry and carry over the learnings from one role to another, thereby adding to your set of skills. The MBA will help to provide you with the tools and techniques to comprehend and assimilate nuances of the various aspects of running a business.

Transformation
There may be a better word for this route, but an MBA is based on the premise that you will use the learning in the programme to transfer the skills you developed in your career pre-MBA to the role and industry you move to post-MBA. Hence, what you want to achieve is a transformation of your skill-set, through a set of frameworks and techniques learned in the MBA, which will help you to contribute, to a new role, in a new organization, in a new industry.

You could well want to be your own boss, fan that entrepreneurial fire burning inside, but know that you will have enough of a business perspective to create a successful venture. You essentially want to change careers, without having to start at the bottom of the new ladder, and be taken seriously in the new role, based on your past work experience and the new skills developed through the MBA.

Another way of checking whether you have nailed the reasons is by asking yourself whether any other route will help you achieve the same results. For example, if you believe that you have sufficient experience of the marketing and project management areas but find yourself wanting when it comes to financial concepts, then you may want to consider a short-term course that provides you with basics in finance.

If, however, you want to be the finance whiz kid, then consider a Masters in Finance or a Chartered Financial Analyst programme. It is important to understand the level of specialisation you desire. An MBA is usually oriented towards general management, with some scope for specialisation. In my case, I was quite certain that I wanted skills that were tangible across functions and industries. No specialised course could have addressed that requirement.

Why am I emphasising the need for this reasoning so much? Because the Admissions Committees stress on it. The reason that Admissions Committees are extremely keen on understanding your motivation for pursuing an MBA is a significant investment in your development. They want to ensure that the candidates they recruit to the MBA class are mature professionals who have weighed the benefits of the MBA adequately before making the investment decision. Additionally, they want to be certain that when you graduate, you will have gained something tangible in line with your expectations, and, thus, will be a confident brand ambassador for the school.

The thought process that I went through in this stage of my MBA prep was tested several times during the phases leading up to the admissions -- when I decided which B-school to apply to, when I took my GMAT, when I wrote my essays (especially here!), when I was arranging for the funding, and when I appeared for my interviews (probably the deal-breaker). So it helped tremendously to have clarity in advance.

There is no dearth of good B-schools in the country. Yet, I went to a foreign land do my MBA. I spent money an order of magnitude more than I would have in India. How did I manage to convince the Admissions Committee that I truly believed that the investment was worth it? Among Indian candidates, I find another distinguishing factor: at least two out of ten already have an MBA from an Indian school. It was befitting, then, to clarify in my mind why I wanted to study abroad.

Why abroad?

Some of the main reasons why people decide to do an MBA abroad are:

• They want to work in a particular country -- employers are keener on MBA graduates who have studied in the country where they operate.
• They want a brand name that is recognised globally on their CV.
• International MBA classes tend to have a more diverse population in terms of nationalities, backgrounds (educational and professional), genders, etc, which enhances the quality of the environment and the learning.
• International B-schools tend to have a more global coverage of topics in their syllabi.
• International B-schools are more likely to have access to a wider base of resources such as alumni network, faculty, guest speakers, libraries, employers, etc.
• Some schools offer shorter duration formats such as a 10-month/ 16-month MBA, allowing candidates to return to work quicker

Almost all the reasons applied in my case. To future MBAs , I recommend that you come up with reasons that resonate most with your aspirations and the kind of experience you are looking for. If this will be your second MBA, then it will be imperative to articulate the thinking since you will most likely be asked this question in your interview.

It is all right to continue to fine-tune this reasoning during the process of MBA prep, but ensure that there is a consistent thread in your story. I cannot emphasise enough how critical your belief in this story will be and how many times this belief will be questioned during and after the process.

It has been almost four years since I graduated from Oxford, a proud member of a leading UK B-school's alumni community that is spread across the globe. In my role as a management consultant at a global strategy consulting firm soon after the MBA, as well as in my next assignment (the current one) as an internal strategy consultant at a conglomerate, I have found more and more elements of that initial thought process come alive. Hmmm, it appears that I chose the right track!

TestFunda.com is a site for personalised online preparation for competitive entrance exams like CAT, FMS, XAT, etc. This article has been authored by Maithilee Shirgaonkar for TestFunda.com. Maithilee is an MBA from Said Business School, University Of Oxford.

Investment Banking Career and Job Information

Courstesy:http://www.careeroverview.com/investment-banking-careers.html

The Article below is taken from the above mentioned website credit goes to the author of the article I am just pasting here to have investment banking related information at one single place.

Investment banks are in the business of providing governments and corporations with investment services, including buying, selling, and trading securities, managing assets, and giving financial advice. The five leading investment-banking firms fill the Bulge Bracket of investment banking: Morgan Stanley-Dean Witter, Merrill Lynch, Salomon-Smith-Barney, and Goldman Sachs.

Regional investment banks like Piper Jaffray fill the middle of the market, while small investing ‘boutiques’ are organized on the local level and specialize in M&A advisory, bond-trading, program trading, and technical analysis. Investment banks are made up of departments that hand specific areas of investment. Sales and trading departments serve securities holders, investment banking departments serve governments and organizations that issue securities, and capital markets departments help mediate the securities exchange process. A review of the services offered ad Goldman Sachs can help you understand how investment banks are structured.

Investment Banking Career Insights

• Work Ethic, You Got it? They Love it?
  
  Those who work in investment banking will tell you there’s a lot of risk, and a lot of work, but also a lot of satisfaction. Entry-level employees should expect long but stimulating work days in which the mood can regularly shift from energetic elation to frantic frustration, depending on the situation.
  
  
• Not an Easy Boat to Catch!
  
  It is difficult to get started in investment banking, and those who make it do so by getting all the education and experience they need, and then relentlessly engaging the investment banking industry.
  
  
• Bankers: Less Scrooge Than you’d Think!
  
  The ‘bah humbug,’ view of bankers is for the most part blown way out of proportion. In fact bankers do a great deal for society by providing companies with the funding necessary to create products that make our lives better.
  
  
• Get Your Foot in the Door with Analysis
  
  A great place to begin in the investment banking industry is working as an analyst. Successful analysts work hard, understand spreadsheets, and have fine analytical skills. Analysts can be promoted to associates who do similar work, but more of it.
  
  
• Wanted: A People Person Who Finishes What They Start
  
  Further advancement in investment banking is based on how well you can negotiate with clients and close deals. In addition, professionals wishing to move beyond mid level positions should understand the political changes, macroeconomic variables, and market trends that all affect deal outcomes.
  
  
• Math Ability is a Plus
  
  There are well-paid, well-respected research positions available in investment banking for mathematicians. If you plan on a graduate degree in stochastic calculus, differential equations, or other advanced mathematical fields, taking classes in advanced financial theory like bond valuation and options pricing can increase your job competitiveness. Some of the most elite financial training available is offered through the Carnegie-Mellon FAST program.
  
  
• Learn Accounting
  
  Analysts will undoubtedly need to understand and be able to interpret accounting data. Those interested in a career as a securities analyst will need the Certified Financial Analyst credential. In addition, those interested in working as a corporate financial analyst will benefit from the Certified Management Accountant credential.
  
  
• Traders are Versatile
  
  There is no concise list of the attributes of a successful trader. You’ll need fast reflexes, market savvy, impeccable analytical abilities, and poker-faced bargaining skills.
  
  
• Hope You Like New York
  
  Almost all big investment banks are based in New York. Whether you plan on working in other areas of the country, or right on Wall Street, the hiring process will probably take you through the Big Apple. Multiple trips to New York are par for the course for anyone interviewing for positions in investment banking. In addition, Toyo, Moscow, Singapore, London, and Hong Kong all have international financial districts.
  
  
• Teamwork! Teamwork! Teamwork!
  
  An investment banker who can get high-powered professionals to work together to serve clients is a powerful asset, and they will be recognized for their efforts.
  
  
• Lawyers and Scientists needed
  
  Lawyers and Scientists help in a variety of areas within investment banking. Lawyers assist in the development of securities, in business lease sales, and in client negotiations. Scientists assist in everything from financial derivatives to algorithms, to bio-tech banking. Still Scientists and lawyers must work to get into the industry. Those who are successful usually add a prestigious MBA degree to their repertoire before applying for a position.
  
  
• It’s About Who You Know
  
  If you want to get into investment banking, you need to begin now creating contacts. Attend conferences, hold informational interviews with companies, and talk with your school’s alumni. Do what it takes to get a foot in the door, and remember that it takes time for networks to become established and start producing results. A good way to start if you are still young is to get accepted into a highly rated MBA program and focus on quantitative and analytical studies.
  
  
• Learn to Finish What You Start
  
  As an Entry-level employee in investment banking you will often write reports, do research, and handle trades, run spreadsheets, and code programs. You need to be fast, accurate and complete. As you gain experience, you will have the chance to work with clients. Your efforts to increase customers will be recognized handsomely. Directors, managing directors, and other upper level employees are evaluated more closely on performance than lower ranking employees.
  
  

Job Opportunities

• Corporate Finance
  
  As a Corporate Finance professional you assist organizations in acquiring funds necessary for day-to-day business. You evaluate how much capital an organization will need and make recommendations about appropriate investment strategies. The first stage of your career will likely be spent as a member of a client team staffing conferences for securities investors and arranging registration statements. The leaders in corporate finance are Salomon/SmithBarney, PaineWebber and Merrill Lynch. Because corporate finance positions are sometimes categorized as Investment banking jobs, recognize that the titles IBD and IBK are in reality corporate finance positions.
  
  
• Mergers and Acquisitions
  
  Investment banks make a lot of their money mediating mergers and acquisitions. This has become a popular financial move in the past decade and should persist into the unforeseeable future. Professionals in this field support corporations in the merger and acquisition process by helping them settle on equitable, profitable deal. The Mergers and acquisitions industry powerhouses are Morgan Stanley/DeanWitter and Goldman Sachs. More and more investment banks are getting into ‘Merchant banking, where investment banks handle spin offs, bridge loans, and LBO’s on their own. As an M&A professional you could be responsible for determining how much involvement your client should have. Opportunities to work with clients will come, but be prepared to work heavily on spreadsheets and valuation models.
  
  
• Project Finance
  
  Project finance professionals develop funding methods for oil capital and infrastructure projects using a corporation or government’s primary balance sheet. Deutsche Bank and CSFB are prominent names in this profitable industry. Much of the initial foreign investment monies to reach Yemen, China and Indonesia were Project Financed Capital. Even when most loan options are gone, corporations can usually depend on project finance to provide necessary capital.
  
  
• Trading
  
  Trading and Sales are highly sought after investment banking positions. As a trader your duties include carrying out bond, currency, equity, futures, and options sales with traders at investment banks, institutions, and commercial banks. In addition to market understanding and knowledge of financial tools, a trader must be able to read people and handle a chaotic work environment. Equity traders spend a lot of time convincing other traders why their product is a good investment purchase, while fixed income traders must be able to use their analysis skills to handle expansive inventories in sometimes-weak economies. Derivative trading is extremely technically demanding and requires an engineer’s analytical abilities. In contrast Foreign exchange traders rely less on analytical skill and more on economic intuition.
  
  Other trading positions include commercial paper, repossessions, and agency securities.
  
  
• Structured Finance
  
  Working in structured finance, your duties will include developing financing methods that shift capital to clients (also called asset-backed securities). Asset-back securities generally involve auto loan and credit card receivables, or mortgages. In the late 1990’s structured finance was an extremely profitable sector and will likely continue to be so. Other areas performing well are collateralized bond obligations (CBO’s), asset-backed commercial paper, and repackaged asset vehicles. Accounting know-how, legal understanding, and spreadsheet skills are important for work in structured finance. However, because most college graduates have little experience in those areas, studying up can give you an advantage over other applicants. Valuable information and business vocabulary can be found in magazines like Standard and Poors CreditWeek, as well as through informational interviews with market professionals.
  
  
• Derivatives
  
  Derivatives are an old, but reliable form of security, and include Swaps, futures, and options. The Derivatives market is huge, and so are the opportunities for profit. With increased advances in exotic options and swap structures, the industry will likely grow under tight watch. Growth will demand an increases number of specialists to handle all the technical aspects of derivatives, so if you want to work in this field, begin now learning common model derivation like black-scholes, as well as stochastic differential equations. You’ll probably have to demonstrate your technical understanding during the interview process. Salesmanship also plays a role in Derivatives.
  
  You might see the phrase ‘structured note’ as you read about derivatives. A ‘structured note’ is a futures contract, foreign exchange loan, or forward that is designed for a client’s specific needs. For instance, a client could purchase a foreign exchange loan with a built in “knock-out” option set to go into effect once the currency ratio drops beneath a predetermined price level. Another favorite is credit derivatives that have selling options set to activate if a company is unable to honor a debt.
  
  
• Advisory
  
  Investment banks offer advisory services in mergers and acquisitions as well as general financing to public and private sector customers. Risk management is another common advisement area. The work focuses on evaluating the value and industry status of a client, and recommending ways for clients to improve.
  
  
• Equity and Fixed Income Research
  
  As a Securities Analyst you often work in specific industries areas offering stock and bond advice to investors. You serve as the contact for investors and companies and work closely with clients in the investment process. Investment banks usually prefer professionals with industry specific experience over those coming straight from graduate school. For instance, an MBA who has worked in retail management is more likely to get hired as a retail industry analyst than someone who’s only got the schooling. In order to keep your firm off the list of worst analysts, you have to understand the industry, understand how to communicate with customers, and you have to be able to read the market. There are two types of analysts: fundamentalists and quants. Fundamentalists are those who look at company leadership, revenues, and other details to give investment advice. Quantitative analysts (quants) are less common, but often make more money because of the technical difficulty of the work. Quants use complicated computer systems to determine undervalued investment products, industries, and countries.
  
  
• International Sales/ Emerging Markets
  
  International sales is quickly becoming a leading investment field. In spite of recent problems in Asia, investors are still anxious for investment opportunities in Thailand, Mexico and other burgeoning economies around the world. Thus, the demand is increasing for analysts who specialize in international investing. Because Investment banks are in a hurry to find employees who can speak foreign languages, who understand the developing markets, and who don’t mind traveling, young employees can get a head fast in this field. However, there is a measure of instability in new markets, so you are advised to research a firm’s performance carefully. Bloomberg has helpful web page that follows international investing.
  
  
• Public Finance
  
  Analysts, municipal advisors and traders are all needed in the gigantic municipal bonds market. Though hard to get, public finance positions are well worth the effort.
  
  Those who have worked in public administration will be well suited for this work. Of particular interest in public finance is project finance. In 1995 60% investment work at Tucker Anthony was related to project finance, where a few years before that, it had only been 15 % (Bond Buyer August 15, 1995)
  
  
• Retail Brokerage (Stockbroker)
  
  Stockbrokers assist customers in purchasing and selling stocks, bonds, mutual funds, and other investment products. While many brokers work exclusively with wealthy clients, there are plenty who handle the investment needs of the general public. Retail brokerage is a difficult career to start, particularly if you are young. However the broker with sales and communications skills can do very well. According to the Securities Industry Association, in 1993 the average yearly income for a retail broker was more than $125,000, with several making more than 500,000. Gaining experience and training from Merrill Lynch or another well-known company is a good way to start. Check out The Syndicate website for more information on a career as a broker.
  
  
• Institutional Sales
  
  Working in Institutional Sales you provide detailed descriptions of investment opportunities to institutional investors. You often work closely with portfolio managers, analysts, and traders. Product understanding, salesmanship, and tough negotiating skills are all essential. Experience on the selling side with Investment banks will help you get ready to work on the buying side with mutual fund and insurance companies. Either side of the business is tough, but profitable. The Securities industry Association reported that institutional sales representatives averaged more than $300,000 a year in earnings.
  
  
• Computer Guru
  
  Because effective trading, pricing and office software and networking can give companies the upper hand, Wall Street offers some of the most profitable computer and information system positions available in the market. Recruiters for some of largest Wall Street companies have been offering hundreds of thousands of dollars to programmers who can design effective UNIX software and financial programs.
  
  
• Ratings Analyst
  
  A good way to get your foot in the investment-banking door is by working as a ratings analyst. Upward movement is rare and good pay is even rarer, but Investment banks always keep an eye on ratings agencies looking for hot analysts. Successful ratings agencies like Moody’s and Standard and Poors rate trillions of dollars every year and employee hundreds of analysts to help them evaluate the credit of both organizations and government bodies. They make their money by charging issuer fees. There is a great need for qualified analysts who can rate corporate and structured finance bonds. S&P’s corporate ratings department manager Edward Emmer states that because it is difficult to determine an organization’s credibility, “it’s up to our analysts to be smart enough to ask the right questions.
  
  

Tips and Trends

• Resumes do best when sent at the end of the year.
  
  January and February are typically when companies take on new employees. However, even if you don’t get hired right away, stay at it. A Salomon Smith Barney Analyst described the effort it takes to break into the business: It’s basically a numbers game. Contact lots of people.” In addition, he suggests you adjust your approach to fit each company you approach, which means: “It’s going to be pretty much a full-time job.”
  
  
• Follow Up!
  
  The new hiring process usually slows down in April, but many professionals make career changes during the summer months, so often corporations are looking for employees at the end of the summer, and getting a job is easier. This is a good time to re-contact the firms you have interviewed with and let them know you’re available.
  
  
• Investment banking: The Global industry
  
  Investment bank professionals can routinely find themselves working with companies in New York, Los Angeles, and Dallas just as easily as they can find themselves coordinating investments for companies in Brazil, Japan, or Beijing.
  
  
• Investment Banking: WIRED!
  
  Online companies like E-trade DLJ and Deutsche Bank provide internet trading services to clients all over the world. W.R. Hambrecht and Wit Capital are the worlds leading online securities origination firms. Online investment firms are sure to continue their booming success.
  
  
• Consolidations rampant in Investment Bank Industry
  
  Mergers have occurred in Investment banking at a dizzying rate over the past decade. Smith Barney and Salomon, Citibank, Dean Witter and Morgan Stanley, Bankers Trust, SBC and Montgomery Securities and Bank of America, Warburg and Dillon Read, and UBS have all been through mergers recently, and many of the more companies are continuing the consolidation process.

Investment banking: The hot new MBA destination

Courtesy:http://www.rediff.com/getahead/2005/nov/11place.htm

The Article below is taken from the above mentioned website credit goes to the author of the articleI am just pasting here to have investment banking related information at one single place.

The hot new destination for campus placements this year is Investment banks or I-banks

An investment bank is a financial intermediary between the public and a corporate. It advises corporates on mergers (when two companies join and become one company), acquisitions (acquiring another company), new issues (when a company offers shares in the stock market) and other such financial matters.

Some examples would be SBI Capital Markets, Morgan Stanley, Saloman Smith Barney, Goldman Sachs, DSP Merrill Lynch and J P Morgan.

• 
  

Second-year students Neha Singh and Ashin P Thariyan from IIM-Calcutta completed their summer training at I-banks abroad in 2005.

Neha Singh, a computer engineer from Netaji Subhas Institute of Technology (formerly DIT), Delhi, joined IIM-Calcutta as a fresher last year. She did her summer internship with Lehman Brothers, Hong Kong.

Ashin P Thariyan, an engineer from IIT-Delhi, worked as a software engineer in Virtusa (India) Pvt Ltd, Hyderabad. He completed his summer internship with Deutsche Bank, London [Images].

As part of a reader-driven series on campus placements, Neha and Ashin share their experiences and help you gear up for your I-bank interviews.

Neha's tips

i. What an I-bank looks for

Typically, you are expected to have good analytical, quantitative and communication skills. You must be able to work well in a team. You must be very committed and display leadership potential.

Accordingly, candidates should highlight these aspects in every way possible.

For example, a background of winning in Mathematics competitions would indicate good quantitative ability, an engineering background may indicate analytical ability, an excellent academic record throughout school and college shows hard work and commitment, positions of responsibility showcase leadership potential and an ability to work with a team.

It is not necessary to have all these aspects, but it is important to highlight the ones that are your strengths.

ii. How to prepare

~ As background preparation for the interview stage, reading the first six chapters of Options, Futures And Derivatives by Hull and introductory parts of Introduction To Corporate Finance by Brealy Myers can prove useful.

~ Puzzles and questions on probability are often asked, so it is a good idea to practise a few to set your mind thinking.

If asked to solve such questions in the interview, it is important to think aloud to guide your interviewer through your method.
They are more interested in your thought process, than in the final solution.

~ Preparing personal questions is important.

Be very clear about the reasons for your choices at every transition point in your life, especially the reasons why you took up management and why you are interested in I-banking at this point.

~ Indicate a particular I-banking function you are interested in only if you have in-depth knowledge of the division.

~ Other aspects to prepare for could be strengths, weaknesses, instances of leadership/ failure, etc.

iii. 'Do you have any questions for us?'

Don't decline. Be prepared with at least two questions about the company, the more specific the better.

Remember, cracking summers is a lot about being confident of yourself.

Ashin's tips

Preparing for interviews with I-banks on campus can be a tough job. While there will be a few candidates for whom the banks would be falling head over heels, most people have to put in some effort to get an I-bank offer.

You are not expected to be super knowledgeable in the technical details of finance. But, as the years go by, it is possible that the level of knowledge expected from students would increase.

Apart from the usual interview skills, here is what a student should brush up on for an I-bank interview:

i. Spruce up your finance knowledge

Familiarise yourself with the working of fixed income markets, derivatives, etc.

Fixed income markets: This refers to the bond markets. A few basic things to learn would be bond yields which are a measure of the returns you get on a bond given the price you pay for it and the coupon you get, duration of bonds, term structure of interest rates, how interest rates vary as term to maturity of a bond varies.

Issues like low bond yields in US and reasons for it can be touched upon and could be helpful in the interview.

Derivatives: A derivative is a financial instrument that does not constitute ownership, but a promise to convey ownership. It derives its value from the value of an underlying asset.

Call (option to buy) and put (option to sell) options and their payoff diagrams are the basic things you need to learn in derivatives (all these need not be learnt by heart, though most I-banks would be more than happy if you are able to work out the diagrams during the interview).

Basic trading strategies using a combination of options and Black-Scholes Option Pricing Model (a model to find the value of options) are the next things you need to learn.

You could get started with derivatives by visiting http://www.investopedia.com.

Study material for derivatives can be easily downloaded from the National Stock Exchange's Web site. The material has been developed by the NSE to help people learn about derivatives.

The web site link is http://www.nse-india.com/content/ncfm/ncfm_modules.htm

ii. Get statistics

Questions based on probability would most likely be asked in your interview.

People with a strong quant backgrounds, especially those interested in research, can really get the interviewer's attention here.

iii. Puzzles

There are Web sites where you can find puzzles. It would be a nice idea to look at the mathematical and logical puzzles and try solving them. Remember, it's not necessary to solve a puzzle in the interview.

You should however think aloud while solving so that the interviewer can clearly see your chain of thoughts. You could also ask for some hints if you are stuck at some place.

One good Web site for practicing puzzles is http://www.rec-puzzles.org/.

iv. Economics

Learn about macro economic variables like inflation rate, currency exchange rate, and interest rates and how they are impacted under different monetary or exchange rate policies adopted by the government.

Again, the investopedia Web site is a good place to start off.

Be thorough with the current major economic issues in the world, like high crude oil prices and have a view on how you think it will pan out in the future, the Hong Kong WTO ministerial (and the Cancun meeting two years ago) and the major sticking points related to it, American trade and current account deficit and why it resulted in Chinese currency revaluation, the current China-EU tiff about trade, etc.

Expect some out-of-the-blue questions like where would you invest a million dollars if you had it.

Be ready with some ideas and their justification.

v. Books to read

Dynamic Hedging by Nassim Taleb: It talks a lot about options theory from a practical perspective. He also wrote a second book called Fooled By Randomness which is less applied and more philosophical. It's worth reading but only if you've covered everything else on the list.

Options, Futures And Derivatives by Hull: This is very mathematical and dry. But it is a fairly comprehensive overview of much of the financial maths that is used.

On a more lighthearted note, also read Liar's Poker by Michael Lewis, which gives an account of a US investment bank in the 1980s.

Sample SOPs/Application Essays

http://in.rediff.com/getahead/2005/jun/07study.htm
http://in.rediff.com/getahead/2005/jun/08abroad.htm
http://in.rediff.com/getahead/2005/jun/09study.htm
http://in.rediff.com/getahead/2005/jun/23gre.htm

SOP & Reco Guidelines

http://statementofpurposeguidelines.wordpress.com/
http://samplesop.wordpress.com/
http://recommendationletter.wordpress.com/

Everything About GMAT:Courtesy Daniel Spencer[http://exclusivegmat.blogspot.com]

Hi All,

I am Pasting the content from site mentioned in the title.Credit goes to the author of the blog.

Introduction to GMAT
The Graduate Management Admission Test (GMAT, pronounced G-mat) is a standardized test for measuring aptitude to succeed academically in graduate business studies. Business schools commonly use the test as one of many selection criteria for admission into an MBA program. It is given at various locations in the United States, Canada and around the world. Throughout North America and in many international locations, the GMAT is administered only via computer. In those international locations where an extensive network of computers has not yet been established, the GMAT is offered either at temporary computer-based testing centers on a limited schedule or as a paper-based test (given once or twice a year) at local testing centers. As of 2007, the fee to take the test is U.S. $250 worldwide.

Exam Format

The exam measures basic verbal, mathematical and analytical writing skills that the examinee has developed over a long period of time in his/her education and work. It does not measure specific knowledge of business, job skills, or subjective qualities such as motivation, creativity, and interpersonal skills. If a test taker's first language is not English, he or she may still perform well on the exam; however, the GMAT exam may not accurately reflect the abilities of someone whose first language is not English. Business Schools with a high proportion of non-native English speaking students tend to have a lower average GMAT score.

Verbal Section

The verbal section consists of 41 multiple choice questions, which must be answered within 75 minutes. There are three types of questions: sentence correction, critical reasoning and reading comprehension. The verbal section is scored from 0 to 60 points with a current mean of 27.3/60.

* Sentence Correction

This tests grammar and expression. Sentence correction items consist of a sentence, all or part of which has been underlined, with five associated answer choices. The test taker must choose the best way of rendering the underlined part. This question type tests the ability to recognize standard Written English. The task is to evaluate the grammar, logic, and effectiveness of a given sentence and to choose the best of several suggested revisions. Choice (A) repeats the original; the other answer choices vary. It tests the ability to recognize correct and effective expression. It follows the requirements of Standard Written English: grammar, word choice and sentence construction. The goal is to choose the answer that results in the clearest, most exact sentence and does not change the meaning of the original sentence.

* Critical Reasoning

This tests logical thinking. Critical thinking items present an argument that the test taker is asked to analyze. Questions may require to draw a conclusion, to identify assumptions, or to recognize strengths or weaknesses in the argument. It presents brief statements or arguments and ask to evaluate the form or content of the statement or argument. Questions of this type ask the examinee to analyze and evaluate the reasoning in short paragraphs or passages. For some questions, all of the answer choices may conceivably be answers to the question asked. The examinee should select the best answer to the question, that is, an answer that does not require making assumptions that violate common sense standards by being implausible, redundant, irrelevant, or inconsistent.

* Reading Comprehension

This tests the ability to read critically. Reading comprehension questions relate to a passage that is provided for the examinee to read. The passage can be about almost anything, and the questions about it tests how well the examinee understands the passage and the information in it. As the name implies, it tests the ability of the examinee to understand the substance and logical structure of a written selection. The GMAT uses reading passages of approximately 200 to 350 words. Each passage has three or more questions based on its content. The questions ask about the main point of the passage, about what the author specifically states, about what can be logically inferred from the passage, and about the author's attitude or tone.

Quantitative Section

The quantitative section consists of 37 multiple choice questions, which must be answered within 75 minutes. There are two types of questions: problem solving and data sufficiency. The quantitative section is scored from 0 to 60 points and the current mean score is 35.0/60.

* Problem Solving

This tests the quantitative reasoning ability. Problem-solving questions present multiple-choice problems in arithmetic, basic algebra, and elementary geometry. The task is to solve the problems and choose the correct answer from among five answer choices. Some problems will be plain mathematical calculations; the rest will be presented as real life word problems that will require mathematical solutions.

Numbers: All numbers used are real numbers.
Figures: The diagrams and figures that accompany these questions are for the purpose of providing useful information in answering the questions. Unless it is stated that a specific figure is not drawn to scale, the diagrams and figures are drawn as accurately as possible. All figures are in a plane unless otherwise indicated.

* Data Sufficiency

This tests the quantitative reasoning ability using an unusual set of directions. The examinee is given a question with two associated statements that provide information that might be useful in answering the question. The examinee then must determine whether either statement alone is sufficient to answer the question; whether both are needed to answer the question; or whether there is not enough information given to answer the question.

Data sufficiency is a unique type of math question created especially for the GMAT. Each item consists of the questions itself followed by two numbered statements. The examinee must decide whether the statements — either individually or in combination — provide enough information to answer the question.

(A) If statement 1 alone is sufficient to answer the question, but statement 2 alone is not sufficient.
(B) If statement 2 alone is sufficient to answer the question, but statement 1 alone is not sufficient.
(C) If both statements together are needed to answer the question, but neither statement alone is sufficient.
(D) If either statement by itself is sufficient to answer the question.
(E) If not enough facts are given to answer the question.

Analytical Writing Assessment

The Analytical Writing Assessment (AWA) section of the test consists of two essays. In the first, the student must analyze an argument and in the second the student must analyze an issue. Each essay must be written within 30 minutes and is scored on a scale of 0-6. The essay is read by two readers who each mark the essay with a grade from 0-6, in 0.5 point increments with a mean score of 4.1. If the two scores are within one point of each other, they are averaged. If there is more than one point difference, the essays are read by a third reader.[2]

The first reader is Intellimetric, a proprietary computer program developed by Vantage Learning, which analyzes creative writing and syntax of more than 50 linguistic and structural features.[3] The second and third readers are humans, who evaluate the quality of the examinee's ideas and his or her ability to organize, develop and express ideas with relevant support. While mastery of the conventions of written English factor into scoring, minor errors are expected, and evaluators are trained to be sensitive to examinees whose first language is not English.[2]

Most business schools don't weigh the AWA as heavily as the verbal and quantitative sections of the test. Some schools ignore the AWA altogether.

Each of the two essays in the Analytical Writing Part of the test is graded on a scale of 0 (the minimum) to 6 (the maximum):

* 0 An essay that is totally illegible or obviously not written on the assigned topic.
* 1 An essay that is fundamentally deficient.
* 2 An essay that is seriously flawed.
* 3 An essay that is seriously limited.
* 4 An essay that is merely adequate.
* 5 An essay that is strong.
* 6 An essay that is outstanding.

Financing your MBA

Don’t worry about financing your MBA. All you need to take care of is the application expenses (exam fees, application fees, sending scores to schools etc). For your MBA expenses, lets consider you have a good score and a good profile. Now, here are your options:

- The top schools are expensive and offer almost no scholarship. But they offer easy loan options. Nobody has had to reject an offer till date due to finances. The top schools make sure that you get a good loan to cover your MBA expenses. Of course you start paying back around 3-6 months after graduation.

- The other schools usually offer a good mix of scholarship and loans.
Once you are convinced that you can take it up, lets talk about your goals. Yes, its extremely important that you have your goals in place. DO NOT look for an MBA just because you HAVE to get a masters degree. You have to be inclined toward business and should feel confident about excelling in some field.

Work Experience

First, those are planning to get an MBA right after college, back out.( Unless you have extra extra extraordinary profile of course ). The schools wont be looking out for you and moreover, you will not gain much out of an MBA without work experience.

Next, the rest of the lot. You would have read about the average work ex in top schools being 5-6 years. Very true. But remember, its the average. That just means there about equal number of students with work ex greater than and less than 5 years.

The work ex is calculated till the time you will be in office before joining school.

Work exp of two years is where you can start thinking about. Three is better. Four even better. the more the experience, the more the schools perceive you to be focused in the career path you have chosen and the more the maturity in your understanding of business.

But here's another view. In case you are planning a shift of career, or deviating for your current job profile in any way, 2 -3 years work exp is a good time to get moving. Once you are completely into your line of work, its difficult getting a change ... say after 6 years. Please note.. its difficult, not impossible.

How important is GMAT Score?

Don't get all confused with voices from every direction making you comfortable saying "GMAT score is not everything". But that's a different sentence altogether. Yes, I agree GMAT score is not everything, but it matters a lot ! And its different for different profiles. Here's how it goes.

Woman A : Born and brought up in Mexico. Excelled all throughout in school and college. Awarded by the highest authority of the State for her extra ordinary performance in sports. Working with a multi billion dollar company as Senior marketing executive for the past 7 years. Started a small business last year, which is flourishing well and needs an MBA to grow further. GMAT score of 650 can fetch her the best of the schools! We're talkign about Harvard, Wharton... and the likes......

Man A : Champ in school. Champ in college. Champ in sports. Indian/IT/2years. Nothing extra ordinary. except GMAT score 780. This score still wont get him the best... but he sure has his options. The top 10 will consider him i guess. the next ten will be interested. The next lot will want him and so on....

The woman says "GMAT is not everything"
The Man says "GMAT Score Matters!"

So people, in my opinion, GMAT score matters in most of the cases.
"A good GMAT score will help you. An average GMAT score doesn't mean the end of everything".

Best time to give GMAT

Most MBA schools in US, UK and Canada have only Fall intake (August). Only a few schools have Spring intake too, but it isn’t such a popular option and thus I wont be talking about it. Lets consider you want to start your MBA in August 2008. Then, let’s classify the month in which you might want to give your exam.

Jan – Apr 2007: Early Head Start
This gives you more than enough time for school research and essays. I doubt many of you would be prepared that early though. Moreover, in case you get a bad/average GMAT score, you have enough time to prepare again.

May – July 2007: Best time
Something like the earlier one. You can give your GMAT again quite comfortably in case you need to. I think this is the best time to give your GMAT, as you have the right time for making that perfect application and catch the schools in Round1.

Aug – Sept 2007: Good Time
Just about the right time. Schools start accepting applications for Round1 by October. So you can catch a few schools in Round1 and leave the rest for Round2.
PS: I gave my exam on Sept 17th.

Oct – Dec 2007: Still good
Advantage: Round 1 for most colleges would have been over by now. Your target is round 2, the safe round (explained later). Most schools have their second round deadlines somewhere around Mid December to Mid January.

Jan – Feb 2008: Closing
This, according to me, is the last you can try your luck at GMAT. You could probably catch the third and final deadline of most schools. Besides you could get schools in Canada (I’ve heard some schools in Canada having their second deadlines around Mar/Apr)

Study Duration

3 months.

Yeah, 3 months is the duration of study you should target. This is considering you are currently working, spending about 8 hrs a day in office. 2 hours a day is good for a start (probably the first month), gradually stepping it up to 4 hrs over the months. Oh yeah I forgot to mention weekends a little over 5 hours should be good! (you’ll be giving mock tests on weekends).

Anything more than 3 months and you’ll find it a drag and might just lose interest. Remember….. Give your GMAT when YOU think you are ready. If you feel your date is too close, get it rescheduled. Maybe by a couple of weeks, not more!

Initially I had booked my GMAT on Aug 25th. By the first week of Aug, I felt I wasn’t ready and rescheduled to Sept 17th. That did make a difference!

THE TEST DAY

HAH !! Finally there!!! Some quick tips:

1) Stop studying one day before your exam. YESSSS… relax!!! Watch a movie (English, if that helps!)…. Treat yourself to your favorite pastime activity. Do everything you can to soothe the nerves. Sleep on time. And more importantly get up on time (hee hee!) :D

2) Go to the center 1.5 hrs before time. No harm getting there earlier… you’d just get adjusted to the atmosphere and temperature.

3) First comes the AWA section. 1 hour. Should gear you up for the significant part of the exam. You templates should be a life saver here. There is a break… Take it even if you don’t want to. Just go out of that space!! Eat a bar of chocolate. Drink water. And yeah.. go back to your seat on time, coz if you don’t, the timer will start and your test will start without waiting for you !!!!

4) Next is the Math section. Remember the first 10 questions are very important. Focus. Give a lil more time to it.. but of course don’t stick to them !! Keep a look at the clock..always! Next is the break.. TAKE IT.. JUST TAKE IT. Very very important…. Coz the next section is more taxing!

5) Eat a bar of chocolate (btw chocolates is the fastest means of energy. Gulp down energy drink.. something like RedBull…. Trust me, you’ll need it when you look at the RCs!!!)

6) Start with Verbal… I’ve heard of many cases where people fall short of time here… so please keep a look at that clock… all the time..

7) When your done, Take a deep breath and pray and ask for your score.

8) Of course you have an option to cancel your scores before looking at it. This would clear all records that you had ever given this exam. But once you see the score you cannot cancel it. I have always advised everyone NOT to cancel the score.. not worth it after all the pain… Jus go ahead and trust your hard work n stars!!!

Essays

A very important step in your application process. The essays you write is the only outlet through which you can put forward your true self to the Admissions Committee (hereafter referred to as ‘adcom’). Every school will ask for around 3 to 4 essays, topics ranging from Your Goals, Why MBA, Why Now, Career track, etc

If your budget permits, it would be good to take help from professional essay editing services. Remember, these people do not write the essays for you. They just help your essays look more presentable, helping you garnish it with better vocabulary and the right content. [I took services provided by Princeton… i'd rate them 2.5/5]

If you have done no community service, its time you do. Its quite an integral part of your application. The adcom is looking for a multi dimensional personality for their school.

Before you start with the essays, write down all your achievements, hobbies, anything special that you have done, anything that you feel is important, anything that you feel is not important!! just write it down…. You never know where can fit in the smallest of details.

Be yourself in the essays. DON’T.. I repeat DON’T write what you think the adcom wants to hear. Write what you feel the adcom should read to make them know you better.

EssayEdge.com gives free essay writing tutorials…. Read it before you start!

DON’T LIE… you’ll get caught. And if you get away, you not gonna be in peace!!! Learn how to blow up your achievements and hide your weaknesses.

Letter Of Recommendation

If you have a good boss like mine, this will be a breeze! :)

You’ll need two letters of recommendation (LORs) in most cases. You could get it from your current manager, your previous manager, your supervisor and as a last resort your peers (doesn’t hold much value).

Here’s a myth about LORs. “The higher the position and the more the power of the recommender, the more the impression you create with the adcom”.. WRONG… absolutely wrong. The adcom wants LORs from that person who has supervised you and can accurately assess you. I read this story in an interview with the Dean of a big business school (cant remember the name) --> They got an applicant who had a recommendation from the Prime Minister of his country. The adcom was put off for the simple reason that the Prime Minister may be a huge personality, but he doesn’t really know what qualities the applicant possesses!!

Don’t wait for the deadline to get LORs. Mangers usually get such requests in bulk and wont fancy servicing you immediately…. Give them enough time.

Interviews

If you’ve got an interview call, congrats!!

Interviews are telephonic (if you cannot attend in person) and lasts for about 30 – 45 minutes. The interviews are usually an attempt to know you better, as against the normal stress interviews you’ll find everywhere in India. They just ask normal questions on your intentions of joining the program and the school. Do a good research of the school before you attend the interview, this will give you a chance to impress them (Schools love the candidates who know why they are doing an MBA and why they have chosen their school).

The interviewer will be extremely friendly and polite. You have to be the same.