Why MBA ?

MBA for financial Independence:

We often hear about students from IIMs getting salary packages of over Rs. 1 crore each year. Even if you graduate from one of the top 25 business schools in India, you can still expect a salary between 10 to 20 lakhs right after finishing your MBA. And these figures are for someone who is fresh out of B-school. With a few years of work experience, salaries will go up even more. For an average engineering graduate, an MBA can lead to a salary that is at least three times higher than their pre-MBA earnings.

MBA for growth in Career:

For those of us who have worked for a few years, it is clear that advancing in your career often requires an extra degree. Even if you are a fresh graduate, an MBA can help you reach the project manager level in 2-3 years sooner than without one.

More Job Opportunities with an MBA:

As an MBA, you have access to a wide range of job options and more responsibilities. You can choose from various specializations like Marketing, Finance, Strategy, and Consulting. The challenges are greater, but so are the rewards.

Job Security with an MBA:

Given the recessions we have seen in the past decade, job security can be a concern. However, MBA positions are relatively secure because senior roles are harder to fill and let go.

Social Respect, Networking, and Credibility with an MBA:

If you want to start your own business, having an MBA from a top school can make it easier to get funding and connect with influential people. It also allows you to network with top professionals and get valuable advice.

Think about whether you want to be just another employee or someone who manages and leads. An MBA can offer you better recognition, more opportunities, and greater credibility.

Difference Between PGPM and MBA (or PGDM)

When a business school is independent and not affiliated with any university, it can not offer an MBA degree. Instead, it grants a Post-Graduate Diploma in Management (PGDM) or a Post-Graduate Diploma in Business Administration (PGDBA). Only universities can award MBA degrees. For example, XLRI and SPJIMR offer diplomas, not degrees.

*PGPM stands for Post Graduate Programme in Management, and the degree awarded is PGDM (Post Graduate Diploma in Management).

Choosing an MBA Specialization

Most management institutes offer general management programs. In the first year, you will study various areas like Marketing, Finance, HR, Systems, and Operations. In the second year, you can choose a specialization based on your interests.

You don’t need to decide on a specialization before starting. The benefits include:

• When you apply, you might not be sure about your interests. After studying and interning, you will be in a better position to choose a specialization.
• Having a broad knowledge base is useful. The general management program lets you pick courses that fit your interests, helping you prepare for your desired sector after graduation.

Some institutes require you to choose a specialization before starting, like SPJIMR, Mumbai. Many institutes also offer dual specializations.

Advantages of Sector-Specific MBA Over General MBA

Some institutes offer specialized programs in specific fields. Notable examples include:

1. Institute of Rural Management Anand (IRMA)
2. MICA, Ahmedabad
3. Indian Institute of Foreign Trade (IIFT), New Delhi
4. Tata Institute of Social Sciences (TISS), Mumbai

These institutes focus on specific areas rather than a general MBA. Many graduates from these institutes also find regular MBA jobs. For details on the types of companies that visit these institutes and the specializations chosen, check their placement reports on their websites.

What is a Summer or Winter Internship in MBA?

Most management institutes have a two-month summer internship after the first year. During this, you work on a project assigned by a company.

Key points about summer internships:

1. Internships follow a similar process to final placements, helping you understand what to expect.
2. Internships give you real-world experience in your field of interest, helping you decide if it is the right career path.
3. You will see how to apply what you’ve learned in a practical setting, enhancing your understanding for the second year.
4. You might receive a Pre Placement Offer (PPO) or Pre Placement Interview (PPI) from the company, securing a job before completing your MBA.

Winter internships are similar but less common in Indian B-schools.

Should You Get Work Experience Before Preparing for CAT?

Consider this scenario: Ram, an engineering student about to graduate, is deciding whether to take the CAT now or gain work experience first. Here’s a comparison:

1. If he works for two years before pursuing an MBA, he might earn Rs. 8.4 lakhs. If he does an MBA first, he could earn Rs. 25.2 lakhs in two years, making Rs. 16.8 lakhs more by starting the MBA earlier.

Preference	Year 1	Year 2	Year 3	Year 4
Work Experience & Then MBA	Rs. 4 L	Rs. 4.4 L*	- Rs. 7 L	- Rs. 7 L
MBA & Then Work Experience	- Rs. 7 L	- Rs. 7 L	Rs. 12 L	Rs. 13.2 L*

2. An MBA might be more valuable for promotions and job roles compared to work experience alone.
3. If he does not succeed with CAT as a fresher, he can try again. It’s harder to find time for preparation while working.
4. Work experience contributes only about 10% to IIM admissions, so it’s not a huge advantage.
5. Additional work experience during placements offers only a small increase in salary.

For details on the IIM selection process, including:

• The weightage of academic records in IIMs
• The role of CAT scores in IIM admissions
• Minimum CAT percentiles needed for IIM calls
• The importance of work experience for IIMs