What is an MBA?

Back in the age old days when Google didn’t exist and Apple was simply a fruit that fell from the trees, a few wise men in the United States decided that Uncle Sam needed more highly-trained managers to cope with increasing industrialization in the country. As such, the MBA degree was founded in the late 19th century so that companies could hire managers who had a superior approach to management.

But what is an MBA? And what can graduates hope to achieve upon completion of the degree? And what does MBA stand for? We have broken down the fundamental elements of an MBA program for you to consider if you’re interested in applying.

What does MBA stand for?

Okay, let’s start with the basics – what does MBA stand for? MBA simply stands for ‘master of business administration.’ It is an internationally recognized master’s degree that is designed to equip people with the skills to pursue a career in management.

Who can study an MBA?

Some schools do accept people who don’t already hold an undergraduate degree, but the general rule of thumb is that a prior degree is required – it doesn’t have to be in business though. Aside from your academic record, admissions teams look for people who have practical business experience, with around three years’ managerial experience (this varies between schools and countries – check out published class profiles to see the averages at individual institutions).

It would be a miss to attempt to answer what is an MBA without filling you in on what the GMAT is. Additionally, MBA applicants must complete the GMAT test to enroll on the program – which you can learn more about here. To get into an elite school, a GMAT score of 700 is generally what you’d be looking at, but other competitive schools accept GMAT results within the 500-700 range, with 540 the average GMAT score for all test takers.

What does an MBA involve?

An MBA program is typically broken down into core subjects and electives. Core subjects can be broken down into three categories: analytical, ethical and functional. Some examples include strategy, corporate social responsibility and financial management modules.

Electives are a chance for business students to hone an area of expertise and select modules of interest to them. Some popular examples of electives include entrepreneurship, managing nonprofits, international finance and project management.

An MBA program will also see you attend networking events, take part in real business projects and go on study trips abroad. Although overseas trips are not always compulsory, they are a constant feature in popular and competitive business schools. International management is, of course, seen as a very desirable skill the modern manager. In an increasingly globalized business world, the scope for managerial jobs lie for beyond the borders of the US and Europe.

How many types of MBA are there?

There are many different types of MBA programs you can choose from, depending on your personal needs and interests. Programs normally take place over a one or two-year period on the traditional MBA route, on a full-time basis. However, students can also opt to take online MBAs and part-time MBAs too. If you’re working full time and don’t want to stop working for the purpose of gaining an MBA, then both of these options could be the choice for you.

Those with a little more experience who do not want to leave their current job could also consider applying for an executive MBA. Executive MBAs (EMBAs) are taught part-time and are designed to fit in with students’ job demands. The requirements for an EMBA rely heavily on extensive business experience and not on GMAT scores or extensive academia. Traditionally they are paid for by one’s employer, though there has been a huge surge in self-funded candidates in recent years.

You can also enroll niche MBA courses too: such as wine management and even football. You can find a few more MBA degree specializations here.

Where can an MBA take you?

Once upon a time, MBAs could be divided into those who worked as consultants and those who worked in finance. However, this has changed in recent years, with the technology sector in particular calling out for MBAs. Nonprofit, medical and governmental jobs are also common destinations for graduates too.

Analysis from The Financial Times shows that out of the world’s 500 largest listed companies by market capitalization, 31% are led by MBA graduates. An MBA program can be a gateway to some of the top corporations around the world. The skills you acquire will be sought after in many professions and the remuneration for these roles is often generous.

What you make of an MBA depends entirely upon how much work you put into the MBA degree, but a competitive program will give you access to all the necessary components needed to be a success in business.

What is an MBA? Well, we hope you have a better idea now!