Archive for the ‘MBA Industry’ Category

Stay Awhile, We Encourage It!

Wednesday, March 10th, 2010

Reading time: 4 – 6 minutes

International students represent 53.7 per cent of the student population in Canada at the undergraduate and graduate level. Concentrated in the provinces of Ontario, Quebec and British Columbia international graduate students pay approximately $15,500 a year in tuition and fees, a number three times that of nationals, according to the Canadian Federation of Students (CFS). Overall International students provided $6.5 billion dollars to the Canadian economy, generated north of $291 million in government revenue and created 83,000 jobs. “International students provide a significant boost to Canada’s economy. Their presence helps create thousands of jobs and generates billions in revenue. Our government will continue its efforts to promote Canada as the destination of choice for international students by enhancing outreach efforts at our missions around the world,” said Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway. In 2008, the Government of Canada announced the launch of an ongoing branding campaign, entitled Imagine, aimed at attracting more international students. Reaching over 85 nations around the world the campaign capitalized on the ability of a Canadian education to open doors. Western countries such as Canada are premier destinations for International students. Recently the market has become more competitive forcing countries to create attractive legislation and programs to entice students not only to study but also to stay.

The 2008-2009 recession was a significant blow to the Canadian economy. According to a study conducted by the Canadian Chamber of Commerce the job market shed 189,000 jobs in 2009 with the majority lost in the manufacturing or goods producing industries (mining, forestry, oil and gas and forestry). Outside of recessionary pressure, a principal force with an adverse effect on the labour market is demographics. The population is aging and there is lower growth in the working age population to replenish them. In fact, in the last 30 years the working age population has slowed by more than a third with projections confident it will slow further.  This will put downward pressure on aggregate employment rate and create labour shortages in skilled trades and professional occupations.  Without the domestic reserves for workers the country must turn to immigration as an available pool of labour.

Immigration has long since been a source of growth for Canada. In the past five years it has relied on immigration for nearly two-thirds of the population growth and it is forecasted to account for almost 100 per cent of the net labour force growth in the next decade.  The goal is to attract and retain highly skilled workers with a responsive and proactive immigration system making Canada an employment destination. “Our ability to retain international graduates with Canadian qualifications, work experience and familiarity with Canadian society, will help increase our competitiveness and benefit Canada as a whole,” says Diane Finley, Minister of Citizenship and Immigration.

In an effort to train and retain, Canada has improved its work permit policies making it more attractive to stay in Canada after graduation. The updated Post-Graduation Work Permit can be applied to after graduation at either the undergraduate, graduate or doctorate level. Applicants do not require a current job offer and are free to work in any one of Canada’s 13 provinces and territories. It is valid for the term of your education to a maximum of three years, which is an extension to the previous two-year program. Applicants must have studied a full time program that was at least eight months long at a public or private post-secondary institution. Interested students must apply for the permit within 90 days of receiving graduation confirmation and have a valid study permit when they do so. Students are not eligible if they have participated in any scholarship program from Department of Foreign Affairs and International Trade (DFAIT) or Canadian International Development Agency (CIDA). As an added bonus, recipients and their spouses/dependents living in Ontario may also be eligible for Ontario Health Insurance Plan (OHIP) coverage. Canadian work experience is a great way to kick start the career of any young graduate whether they intend to apply for permanent citizenship or return home.

In an international student orientated study conducted by the Canadian Bureau of International Education (CBIE) the single most highest factor for coming to Canada was the quality of the education and 95 per cent of the students said they think Canada is the place to reach their educational goals/potential. Backed by a marketing campaign with a global reach and a progressive work permit program Canada is successfully selling its brand to students from such countries as China, South Korea and Saudi Arabia. However, only a third of the students graduating from Canadian post secondary institutions stay in Canada to live and work. The other two thirds either return home to leverage their Canadian education or choose another country to live and work. With countries such as Australia, New Zealand, the United Kingdom and France adopting more comprehensive strategies to retain their international students Canada will have to really sell the potential of the great white north.

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Studying In Canada

Tuesday, February 9th, 2010

Reading time: 6 – 9 minutes

As one of the eight most industrialized nations in the world, Canada is a leader in business and industry. Supporting a disperse population of over 33 million Canada’s diversified economy thrives with such major industries as oil and gas, mining, manufacturing, agriculture and forestry. Outside of the economic benefits, citizens enjoy universal healthcare, a high quality of life, a low crime rate and a unique cultural diversity.  With it’s industrial status it follows suit that Canada is also a leader in business education, maintaining an international reputation for quality and relevance.  Home to many of the world’s largest and most influential companies Canada is a top destination for both domestic and international MBA students alike.

The names of American Ivy League schools are among some of the most recognizable in the world, enjoying an unparalleled reputation that far exceeds the institutions of Canada or anywhere else in the world.  While reputation isn’t synonymous with quality, the brand recognition doesn’t hurt.  For too long Canadian business schools have set the bar too low. Their efforts have seemed concentrated on becoming the best in Canada instead of competing with the American programs to become the best in the world. With the likes of The Rotman School of Management, The Richard Ivey School of Business and The Schulich School of Business within its borders, Canada is well on its way to becoming a global contender. Undoubtedly, there is still a long way to go. Canada is the host to only two schools in the top 50 full time MBA programs ranked by the Financial Times of London. U.S. schools crowd the list with more than 20 schools in the top 50.

In order to compete on such a high level, Canadian schools must strive for the same caliber of faculty, staff, students and curriculum as their southern counterparts. MBA programs in Canada are considerably more affordable than in the U.S. The average cost of tuition and residence fees for top tier schools in the U.S. is $78,150 compared to an average of $59,341 in Canada. Prospective students equate the higher cost to a higher level of quality and often this is a deciding factor in their choice of potential schools. In order to remain competitive Canadian schools must raise tuition. The infusion of capital will allow schools to hire top notch faculty and staff, invest in career services, experimental learning opportunities, student aid and over time physical infrastructure. In Canada the majority of the business schools and to a larger extent the universities and colleges receive government support. The same legislation that provides them with support also dictates the tuition ceilings they must adhere to. These provincial restrictions can prove detrimental. However, some previously state funded schools have decided to shun the help and have migrated to a privatized model allowing them to raise tuition to market value and compete head on with top tier international programs. Some Canadian schools that have successfully privatized are York University’s Schulich School of Business, Queen’s School of Business and UBC’s Sauder School of Business.

MBA programs in Canada have leveraged one of Canada’s inherent advantages; it’s multiculturalism. Unlike the melting pot in the U.S., Canada enjoys a heterogeneous salad bowl society where different cultures mix but remain distinct. “A diversity of nationalities in the student body results in a diversity of professional and personal experience which enriches the curriculum for all,” says Kim Killingsworth, Associate Director, International Admissions At Cornell’s Johnson Graduate School of Management. Half of Rotman’s students are not Canadian while Schulich boasts as “Canada’s global business school.” Only 35% of the students enrolled in the top 10 U.S. schools are international students compared to 43% in Canada. It is important to get a mix of international management styles from both the faculty and students. With such a high level of international and national talent students learn as much from their peers as they do their professors. It is the exposure not just to business disciplines such as accounting and marketing but also the various management styles from around the world that make the difference in a rounded education.

To remain competitive top Canadian schools continue to innovate their program delivery. Queen’s divides the students into groups of five or six. Each group represents a diverse mix of nationalities and personalities. Students belong to their teams for the duration of the program. Each team is assigned an office space and must maintain hours much like project groups in a workplace. It has proven to be a great way to work through problems and participate in teamwork. Ivey has adopted Harvard’s case model approach and Rotman fuses their program with integrative thinking and a design mentality. This kind of innovative approach to learning is what will separate Canadian schools from the international competitors.

Canada has made it easy for foreign graduates to stay and work. Under the Post-Graduation Work Permit (PGWP) Program grads can work anywhere in the country part-time or full-time for three years and do not need a job offer to apply. Students can then apply for permanent residence. The new regulation makes a previously confusing and discouraging process much easier and shows the Canadian government’s goal to fill projected job vacancies and attract international students. International students attending schools in the United States will have significantly more paperwork, headache and cost. F-1 students (non-immigrant, full time student visa) must apply for either the Optional Practical Training (OPT) program or a H1-B Visa.  The OPT Program permits students to work and live in the country for twelve months after graduation in part or full-time jobs that utilize their field of study. The H1-B Visa confers temporary worker status for non-immigrants for a maximum period of three years. A student must first find an employer and that employer must sponsor them into the program. Processing fees for the application can cost over $2,000. Both of these programs can be extended for 17 months and six years respectively. After the end of the H1-B term students can apply for full citizenship and a Green Card, a process that will take them years.

The most comprehensive professional networks and alumni groups exist in the city, country or region of your school. The strongest brand recognition will occur with companies and industries that are headquartered or operate there. Students trying to make the decision on which program to attend should investigate living and working in that country. Canada is a western industrial powerhouse with a stable democratic government, a strong diversified economy and employee friendly labor laws and employment standards. Weathering the recessionary storm better than most, the economy is ripe with opportunity and the business education is world class.

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From Public To Private

Thursday, January 28th, 2010

Reading time: 3 – 5 minutes

In an effort to make their MBA programs more competitive on an international stage, many publicly supported schools are exploring a privatized model. In a privatized model the school would stop receiving government funding and seek alternative methods to raise capital, such as tuition. Prospective students often refer to the cost of the program as one of the determining factors in their ultimate choice to attend the school. The higher the price tag the higher the perceived level of quality. In order to meet this perceived value the school must deliver. Schools compete on the quality of faculty, technologies, learning environment, curriculum and value added services. One school exploring a privatized model McGill’s Desautels School of Business.

Students at McGill currently pay $1,600 a year in school fees, a cost that is drastically below the industry average of approximately $26,000. Administrators feel that the cost is not enough to entice students unfamiliar with the quality of the program. They propose an increase in tuition, a 1,663% increase in tuition, which is significantly higher than the average annual 4-10% increase to offset inflation.

The increase is necessary argues Peter Todd, Dean of Desautels. The annual cost to put a student through the program is $22,000. “We’ve been running deficits and were not able to make ends meet.” “The economics of it just doesn’t work with the government system,” says Todd. The government is not willing to support the drastic increase, which Todd says is high because the cost was so low before, the increase will bring the program to $29,500 leveraging it within the range of a Canadian MBA. The proposed increase is garnering support from some and bitter protest from others. Some feel that the price hike will alienate prospective students looking for a quality program for less and provincial residents who receive a subsidy in the government model looking for alternative choices. The infusion of capital will allow the school to implement an integrated approach to teaching core courses, with multiple professors in the class at one time, invest in career services and experimental learning opportunities outside of the classroom, money for student aid and over time new physical infrastructure.

Queen’s University was the first Canadian institution to shun provincial support in 1996. It wanted to raise tuition fees to that comparable of the U.S. David Saunders, Dean of Queen’s School of Business says, “Deregulation allowed Queen’s to compete – and win – on an international stage.” BusinessWeek Magazine recently named Queen’s. Other schools to successfully privatize are the University of Western Ontario, Michigan State University, York University’s Schulich School of Business and UBC’s Sauder School of Business.

Bricks and mortar campuses in North America are faced with multiple challenges including decreased endowments, reduction in provincial/state funding and of course an economy in recession. However, MBA admissions are countercyclical in nature in regards to the economy. This is forcing schools to compete on the level of quality. Yet some schools still choose to wait for markets to recover in order to expand and grow. This may prove to be detrimental says John Fernandes, President and CEO of AACSB. “When the competitor is making changes now and not waiting for the markets to heal, this will put them at a quality advantage. Waiting for the financial markets to turn around could be disastrous. These schools are most likely concerned about making sure their programs are viewed well and are received well by students. Therefore if they don’t make the investment now, it’s going to be worse long term. At that point, maybe they won’t be able to turn it around.”

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Infographic: Virtual Campuses and Sustainability

Wednesday, January 20th, 2010

Reading time: < 1 minute

This post displays an Infographic created by www.bestcollegesonline.com to illustrate the emerging trends in the US College system, the future of post secondary education and a sweeping trend by Universities to become more sustainable and offer an online element to their curriculum.

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MBA Schools Look East

Friday, November 13th, 2009

Reading time: 3 – 4 minutes

Shanghai Skyline

The number of Asian students enrolled in North American schools is dropping. According to the Council of Graduate Schools in the U.S. there has been a decline in enrollment from countries such as China, India and South Korea since 2006. The Economic Times of India recently reported a 25% reduction of Visa applications from Indian citizens. This reduction was not a result of the difficulty of citizens qualifying for the Visas but rather the reductions in the financial aid packages being offered by American universities to Indian students, decreasing the desire of many of them to apply for Visas. This trend is noticed in other Asian countries as well. Those same countries are developing their own schools equipped with a globalized curriculum and an abundance of potential students. This drain of talent has prompted many North American business schools to develop partnerships with Asia in order to have a hand in shaping the graduate education of this highly competitive candidate pool.

World renowned institutions such as Northwestern’s Kellogg School of Business, the University of Southern California’s Marshall School of Business, UCLA’s Anderson School of Management and most recently the Schulich School of Business at York University have developed partnerships with their Asian counterparts. But these universities aren’t bringing over their larger program offerings such as the intensive four-year undergraduate program, doctorate programs or the two to three year full time MBA. They are larger programs, more involved and more cost intensive to revamp in order to suit the region. In an effort to avoid heavy startup costs, tough competition from local players, lower fee structures, and extremely severe resource constraints in terms of top-tier faculty they are exporting their Executive MBA (EMBA) programs. The short duration (typically 18 months) and minimal in-class days per month of the EMBA program makes such offering extremely amenable to the various partner regions.

These schools have been early adopters of a shift in management education. Asia currently accounts for more than a quarter of the world’s GDP and is growing at more than double the size of other regions. Within two decades it will constitute almost half of the world’s GDP and be larger than the U.S. and Europe combined. Asia is also becoming more Asian. Intra-Asia trade presently accounts for about 54% of all cross-border trade by Asian countries. By 2025 this figure will be closer to 75%. Importantly, too, the composition of the world’s 500 largest corporations is changing rapidly. In 1995 companies headquartered in China or India accounted for only five of the 500 largest corporations in the world. By 2009 the number had grown to 44. It could easily reach 150 by 2025. Add to this the large number of corporate giants headquartered in Japan, South Korea, Southeast Asia, and West Asia, and it is not unlikely that by 2025, half of the world’s 500 largest corporations could be headquartered in Asia. Note also that, in the case of many non-Asian multinationals, Asia accounts for a large and growing proportion of its middle and senior managers’ responsibilities. In short, the global market for management education is rapidly becoming Asia-centric.

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