Is one better than two?

Publish date	2007-12-10
Available Articles	Full articles without membership

The Forbes ranking is eagerly awaited both by business schools and graduates choosing which programmes to apply to. It looks at the net long-term value of an MBA programme for alumni five years after graduation – in other words, whether the (sometimes enormous) financial outlay involved in studying for a management degree reaps the post-graduation rewards of a corking salary and mouth-watering perks.

Professor Michael Luger, director of MBS, said: “North America is an important market for MBAs and this kind of success helps to raise our profile. Our MBA offers students a global experience. We have students and lecturers from all over the world, and unrivalled international content in our programme, and it clearly delivers results for our alumni.”

Forbes conducts its ranking of business schools every two years. It divides its findings into US and non-US schools so Manchester is represented in the non-US table of schools running two-year programmes, as its programme is 18 months in duration.

This year’s position is an improvement on 2005, when the school was rated sixth among non-US business schools offering two-year programmes.

The rankings raise the question of whether one-year MBAs are preferable to two-year programmes. The longer course has become standard since it was established in the US in 1900. But the format is not without critics, and in Europe the one-year MBA dominates.

Forbes’s survey appears to give lie to the growing popularity of shorter programmes. Each of the top five one-year foreign courses beat all two-year programmes because the opportunity cost, in lost wages, to attend is materially less. IMD in Switzerland, which ranked first among such one-year schools, had a median five-year gain of $169,000. By comparison, Dartmouth's Tuck School of Business, which tops the list of two-year programmes for the second time, had a median five-year gain of $115,000.

Once tuition, accommodation, living expenses and opportunity costs, such as loss of income, are calculated, a one-year MBA is cheaper. This is not the only benefit. For many students two years is too long to be out of the job market, so the trend is moving towards a shorter programme. In North America some schools are rethinking.

“There is the added advantage that students do not have to fulfil elective requirements that are not relevant to their future needs,” says Dr Heather Spiro at Manchester.

Aside from time spent studying, one-year programmes (in reality, usually 11 to 16 months in duration) are generally distinct from their two-year counterparts. They usually have strict requirements in regards to work background and academic training.

In addition, a highly specialised programme can build upon a student’s current career or industry specialty. One drawback is that there are no extended breaks between semesters, which curtails work experience opportunities.

A typical two-year MBA programme consists of four semesters. Classes are taken over the course of two academic years. Most students take three-to-four-month internships between academic years.

During the first year, students complete the required curriculum. The second year focuses on elective courses with specialization in a particular area of interest.

The advantages of a two-year MBA are that they accept a variety of academic backgrounds, and the internships encourage the development of new skills. Most full-time MBA programmes also have extensive career placement and counselling services, professional groups and clubs, and experienced guest lecturers.

Although two-year Master’s degrees are prevalent in the US, there are plenty of one-year options such as the respected University of Florida Internet MBA. And distance learning provides access to programmes across Europe offering 12-month programmes, such as the MBA at the University of Liverpool Management School.

Keywords: University of Liverpool, University of Florida, MBA, Forbes.

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