BUSINESS SCHOOLS IN A
FLAT WORLD?
Simon Benninga
Dean, Recanati School
Tel Aviv University
Structure of talk
{
What
’
s happening in the MBA world
z
Registrations?
z
Where from?
z
New schools?
{
Rankings
{
Who
’
s taking the MBA
—
a view from
the field
3
Registrations (GMATs)
{
Numbers are down slightly
5
Is the World Flat?
The (GMAT) world isn
’
t flat
—
it
’
s
Are Canadians Flat?
94% of all Canadian
GMAT takers have
their test results sent
to US or Canadian
schools.
7
9
Perhaps Enrollments are Up?
Letter from
Wharton to faculty,
June 2007
11
New development:
Schools without Faculty
{
DeVry University (look at the
number of locations)
{
Phoenix University
DeVry:
75 Locations
On line
13
15
DeVry Key
Statistics
from Yahoo
Phoenix—Another Publicly-Listed
University
19
Hult—highly ranked?
Rankings
{
Many rankings, little correlation
{
Much confusion
21
Business Week
Undergrad
Business Week
MBA rankings,
1988 - 2004
1. Northwestern
2. Chicago
3. Wharton
4. Stanford
5. Harvard
25
Financial Times Global MBA Ranking
Where is Northwestern? (it’s #17!)
29
Rankings—depends on
what’s ranked
If you try hard enough, you can
always find a good rating.
What’s in an MBA Program
33
MBA training is overwhelmingly
technical
{
Are we doing a good job?
{
Very personal
z
Some letters
z
My books
{
My impression:
z
Our technical training is not good enough
(see correspondence which follows)
z
B.S. is important, but ours focuses on
inspiration and slogans
z
Often too high-level, not enough
The Need: A reader writes
From: keith@clarityresearch.com To: Simon Benninga
Sent: Wednesday, September 22, 2004 2:37 PM Subject: Re: Re: PoF with Excel
Thanks, Simon.
I finished my studies many years ago, but my daughter (who attends Kenan-Flagler at UNC-Chapel Hill) recommended your "Financial Modeling" book.
While waiting for the book, I want to start with your web
materials. Currently I work for a real estate developer--my boss and one of her partners are Wharton grads--and
more and more
of my tasks entail using models built in Excel
.I expect that your book and materials will improve my
35 From: "Deepak Moorjani" <deepak@moorjani.com>
To: "Simon Benninga" <benninga@post.tau.ac.il> Subject: Re: Username/Password
Date: Monday, September 27, 2004 1:01 AM Hi Simon,
I studied at Duke University ('92)
and went to work on Wall Street in 1993. I'm in the Bay Area in venture capital and feeling the need to refresh my modeling skills.I went to the Stanford bookstore yesterday and picked up a copy of
Financial Modeling
. Very nicely done. I was an economics and philosophy major in college and would have saved myself much frustration in NYC if I had this book.This is the first book
that I've seen that ties corporate finance
theory with practical application!
Best wishes, Deepak
---Upstart Management, LLC
142 Sand Hill Circle Menlo Park, CA 94025
Simply the best Intro to Finance book out
there, June 9, 2006
Reviewer:Practitioner (New York)
–
With an undergraduate degree in economics and
two years of working experience in Wall St,
you can say that I had the chance to read quite
a few finance books. I find Principles of Finance
with Excel to be hands-down the best
Intro-Finance book of them all. Not only does it
explains the finance topics very clearly, it
teaches you how to apply this knowledge
in Excel. This is by far, in my opinion, the best
way to learn finance. Furthermore, since
solutions to the exercises are included on the
CD, this book is perfect to the self-motivated
reader. Lost or stolen, I would purchase this
Do reviewers like the book?
(nervous authors ... )
The next slide gives all the
Amazon reviews written by
Gustavo Jimenez
What’s an MBA worth?
{
Apply NPV techniques to future
41
Source: Brad Repress
http://www.bradrespess.com
Note: I’ve cut off some of the calculations (goes 12 years)
Conclusion:
NPV of MBA < 0
43
Maybe too optimistic?
(Provided by the AACSB,
an MBA accreditation
45
The Current Debate
Harry & Linda
DeAngelo (USC) and
Jerold Zimmerman
(Rochester)
“
What
’
s Really Wrong
with U.S. Business
Schools
”
(unpublished working
paper 2005)
Warren Bennis and
James O
’
Toole (USC),
“
How Business Schools
Lost Their Way
”
(Harvard Business
Review, 2005)
Henry Mintzberg
(McGill)
Bennis & O’Toole:
47
DeAngelo, DeAngelo, Zimmerman:
Not enough research
49
The debaters:
“
Softies against
51
