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What is an MBA? Masters of Business Administration - A Guide
A Master of Business Administration (MBA) is a postgraduate qualification that provides students with high levels of knowledge and skill in business management. MBAs award students with the equivalent qualification as a masters degree, and are highly valued by employers.
MBAs prepare you for senior management or entrepreneurial roles by equipping you with knowledge in key business processes – including accounting, finances, marketing and human resources.
MBA courses are designed for students who already have appreciable management-level experience gained in the workplace, but wish to develop their leadership skills further.
There are many reasons to study an MBA. From higher salary potential, to developing entrepreneurship skills and expanding your career opportunities. The MBA is highly recognised by employers worldwide and, according to the University of Essex, is currently the most popular professional degree program in the world.
If you are a highly ambitious graduate with strong career goals, an MBA could be right for you.
But what exactly is an MBA? What does it involve? And what types of programs are available? Find everything you need to know in our guide – what is an MBA?
What is an MBA qualification?
An MBA is a Master of Business Administration postgraduate qualification that teaches students fundamental business practices. An MBA provides students with advanced business management skills and knowledge.
MBAs prepare you for senior management or entrepreneurial roles by providing a holistic view of business including accounting, finances, marketing and human resources.
Is an MBA better than a degree?
An MBA is a higher-level qualification than a degree. MBAs award students with the equivalent qualification as a masters degree, and are highly valued by employers. MBA graduates could be more likely to receive a promotion at work and earn higher salaries than those who hold a bachelors degree.
Types of MBA
There are several types of MBA programs to choose from. Each type is catered to different levels of experience, circumstances and career goals. Generally, MBA degrees are offered across the following categories:
|
Type of MBA |
Description |
|---|---|
|
General MBA |
The standard and most popular MBA degree. This usually requires around 3 years of professional experience before studying, and is great for accelerating your career towards a managerial role. This can be studied full or part time. |
|
Executive MBA (EMBA) |
Generally studied part time. This is ideal for people who are already in management positions, but want to progress their career further. |
|
Specialist MBA |
Specialist MBAs provide professional qualifications in a particular industry. This is ideal for those with managerial experience looking to enter a different professional sector. |
|
Distance learning MBA (online MBA) |
An online-based MBA that allows you to study the course contents without full-time, in-person university teaching. This is ideal for those who work full time, or have other commitments that studying could fit around. |
|
MBA without work experience |
Some universities will offer MBA programs that do not require professional work experience. These are ideal for recent graduates, or for those looking to change career direction towards a more managerial role. |
What are the entry requirements for an MBA?
Relevant work experience is a prerequisite for any standard MBA program. In the case of a regular MBA, business schools typically require a minimum three years’ work experience. An executive MBA – primarily designed for working business leaders – may require a minimum of five to ten years of professional experience.
Candidates also typically require an undergraduate degree at 2:1 level. In some cases, the university may accept MBA candidates with a 2:2 level undergraduate degree, particularly with a good level of work experience.
You may be required to take the Graduate Management Admission Test (GMAT) as part of the MBA application process. The GMAT provides candidates with an opportunity to showcase their business skills and demonstrate their academic ability.
What’s involved with an MBA?
An MBA can be studied either full time, part time, or online. A full-time MBA will generally last 12-15 months from September onwards, though some courses may offer January start dates. A part time MBA can take two to three years to complete.
Part-time study tends to be the most popular MBA format, since this allows people to complete the MBA alongside employment. As a result, it is common for MBA students to carry on working alongside studying the course.
An MBA is intense, requiring a lot of hard work and commitment. This includes studying core modules, optional modules and completing a dissertation or practical work-based project. MBAs are assessed using exams, essays, group projects and more, depending on the course.
The MBA course may also provide the opportunity to complete a work placement or study abroad, helping develop your business management skills in a real-world context.
The main difference between MBAs and other postgraduate degrees is that MBAs focus on developing professional experience, rather than developing academic knowledge. MBA teaching styles usually involve case study work, group projects and real-world projects, as opposed to typical classroom or lecture-led teaching styles.
What's the difference between an MBA and a masters degree?
The main difference between MBAs and other postgraduate degrees is that MBAs focus on developing professional experience, rather than developing academic knowledge. MBA teaching styles usually involve case study work, group projects and real-world projects, as opposed to the typical classroom or lecture-led teaching styles.
How difficult is an MBA?
An MBA is intense, requiring a lot of hard work and commitment. The course content can be challenging but students will benefit from access to support and resources to help them succeed. The course involves the study of core modules and optional modules before completing a dissertation or a practical work-based project. MBAs are assessed using exams, essays, group projects and more, depending on the course.
The MBA course may also provide the opportunity to complete a work placement or study abroad, helping develop your business management skills in a real-world context.
MBA study modules
Study modules vary from program to program, but the MBA course typically consists of core compulsory modules, voluntary modules and at least one major project or dissertation, with a ‘real world’ client.
Many MBA courses offer opportunities for company visits, exchange programs and work placements, while assessment takes the form of examinations, essays and group activities.
Core modules
The core modules will differ from course to course. Though generally, core modules will cover areas including:
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Operational management
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Business management
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Marketing strategy
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Strategic planning
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Team leadership
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Finances and accounting
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Economics
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Marketing
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Human resources management
Optional modules
MBA programs will offer a range of optional modules. These give MBA students the opportunity to specialise in areas suited to their career goals. These might include areas such as:
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Optional internships
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International business
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Advanced accounting
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Healthcare systems
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Negotiation
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Conflict management
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Entrepreneurial marketing
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E-commerce
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Many more
Why study an MBA?
There are many reasons to study an MBA program. It is designed for working professionals who wish to progress an established career or switch careers. As such, the MBA course exposes candidates to all aspects of business, including accountancy, finance, marketing and human resources at graduate level, and prepares them for senior management roles.
The MBA is a respected business qualification worldwide and can open up new career opportunities, at home and abroad, for the holder. According to the Association of MBAs (AMBA), MBA graduates can typically expect to earn over £80,000 per annum.
Career benefits of an MBA program
Tuition fees for MBA courses are high, but so, too, is the return on investment. Research from the Financial Times Global MBA Rankings (2022) shows that MBA graduate salaries increased from 55% to 184% after completing an MBA. Though, financial gain is not the only career benefit of an MBA.
Qualifications from business schools in the United Kingdom, in particular, are well regarded around the world and can lead to an international business career, in the same or a different industry.
How long does an MBA take to complete?
In the United Kingdom, a full-time MBA course typically takes one full calendar year to complete, while a part-time MBA course typically takes two or three years, but possibly up to five to complete. Candidates lacking time or access to a suitable business school may like to consider an MBA by distance learning (sometimes referred to as an online MBA), which typically takes between two and six years to complete.
Always check the course details to confirm how long it will take to complete the MBA.
Cost of an MBA program
How much does an MBA cost?
Tuition fees for a Masters of Business Administration vary from institution to institution. In the United Kingdom the course will typically range from £10,000 and £40,000 for a full-time 12-month course. In the United States, tuition fees between $45,000 and $65,000 are not uncommon.
Self-funding is one of the most popular methods of paying MBA tuition fees. Using savings, or working whilst you're learning, are popular ways to pay your tuition fees. Other possible options for funding a Masters of Business Administration include employer sponsorship, private loans and scholarships.
How to make your MBA a success
With relatively high tuition fees, it is vital that every student make the most of their MBA experience. Although a MBA from a top-tier program does open up a lot of doors, getting a solid ROI on your MBA degree requires a bit more than mere admittance to a top school.
Some ways to get the most out of your MBA degree are:
1. Network, network, network!
An MBA offers you more than just knowledge of the business. It also provides you with a wealth of networking opportunities. By virtue of being a student at the same business school, you will get access to a vast alumni network of successful entrepreneurs, executives and investors. Through networking with seniors, alumni and professors, you will gain access to jobs, investments and mentorships that may not otherwise be available to you.
2. Interact with others
The obvious question following point #1 above is: just how do you network? Fortunately, MBA programs offer plenty of networking opportunities for even the most introverted of students. Most campuses will have dozens of clubs catering to different interest groups, societies where you can interact with fellow students, and other events where you can mix with alumni and professors. In addition, you also have access to digital networking opportunities through social networks, for example LinkedIn. You can also just take a deep breath and go up to fellow students and alumni and simply introduce yourself!
3. Build-up skills outside the classroom
You'll learn a lot in the classroom, but there are some crucial skills you'll have to work on your own as well. This includes technical as well as interpersonal skills. An MBA is also a great opportunity to work on your communication skills such as public speaking and listening skills. Essentially, you must consider a MBA as an opportunity to learn and grow as a person. This means pushing for that extra bit once the class is over and the lights go out.
4. Take an internship
An MBA is a practical degree that provides practical knowledge that you can apply to real-world business scenarios. Therefore doing as many internships as possible is crucial to getting the most out of the MBA experience. Try to intern at the places you'd like to ideally work at after your MBA. While you're at it, try to apply lessons from your classroom to the business. This will give you much needed insight into how an actual business is run – and how your MBA could help run it better.
5. Be proactive
Lastly, getting the most of your MBA means being proactive. Whether it is networking with alumni or interacting with classmates, being proactive will open up new opportunities and make you a much better candidate when it comes to job hunting.
Where to study an MBA program
Thousands of universities and business schools offer MBA qualifications, but the Association of MBAs (AMBA) is the best starting point when you’re looking for the best MBA program for you. AMBA accredits over 150 MBA programs, in the United Kingdom and elsewhere, based on entry requirements, access to leading academic staff and other criteria.
In Europe, the European Quality Improvement System (EQUIS) similarly accredits MBA programs, as does the Association to Advance Collegiate Schools of Business (AACSB) in the United States.
Is an MBA right for me?
Historically, an MBA was suitable for those pursuing careers in consulting and finance. Now, MBAs can prepare you for a much wider range of careers, attracting students from a wider range of backgrounds.
If you want to advance your career with business management skills, then an MBA may be right for you. Although, it is important to remember that an MBA involves a lot of hard work and commitment, and is often described as somewhat more intense than other postgraduate degrees. If the intensity of an MBA course isn’t suitable for your lifestyle, there are plenty of alternatives to MBAs to explore.
Take a look at our helpful guides on Postgraduate Study for more inspiration.
How to apply for an MBA
Ready to get started? It’s time to start thinking about your MBA application.
Places on MBA courses can be competitive as class sizes are usually kept small. To give your application the best chance of success, make sure you check the specific application requirements, as these can differ across institutions.
Most applications are completed online through the institution's website. You’ll be expected to provide details on your professional and academic experience, as well as contact details for your referees. The university will usually require one academic reference and one professional reference.
You’ll also be expected to provide a personal statement, detailing your intentions and reasons for applying for the MBA.
Applying as early as possible is recommended. Not only will this display your enthusiasm, but will also give you enough time to explore funding options.
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