Computing Value for Money Of A MBA Course

Determining the value for money of a Master of Business Administration (MBA) course is a complex process that depends on several factors. 

Factors impacting the Value for Money :

1. Cost: The cost of an MBA program can vary widely, ranging from Rs 200,000 to 80,00,000 or more, depending on the institution and the type of program (full-time, part-time, online, etc.). Considering the total cost of the program, would mean including tuition, fees, books, and living expenses.
2. Quality of Education: The quality of the education is an important factor to consider. Programs with a strong reputation and faculty, updated and dynamic curriculum that is relevant Industry etc.
3. Career Outcomes: The goal of an MBA program is to enhance career prospects and earning potential. The placement possibilities and salary data for graduates of the program and type of employers and industries are critical.

3.1. Key factors to consider when evaluating the placement record of a business school are

3.1.1. Placement statistics: 

• The number of students placed, 
• the average salary offered, and 
• the types of companies and industries that recruit.

3.1.2. Alumni network: 

• What is the strength of the business school’s alumni network is a critical factor 
•  Are alumni active and engaged with the school and its students? 
• Do they offer mentorship and networking opportunities for current students?

3.1.3. Career services: 

• What is the quality of the business school’s career services. 
• Do they offer career counselling and job search assistance? 
• Are they proactive in helping students find internships and job opportunities?

3.1.4. Industry connections: 

• How strong is the business school’s connections with industry professionals and organizations. 
• Are they engaged with the local business community, and do they have a good reputation in the industry? 
• Do they provide opportunities for students to connect with industry leaders and build their professional network?

4. Return on Investment (ROI): The return on investment (ROI) of an MBA program could be defined as the difference between the cost of the program and the increase in the earning potential over time. Considering the long-term financial benefits of the program when evaluating its value for money.

5. Personal Fit: It is important to consider whether the MBA program is a good fit for the individual aspirations.

A matrix to evaluate the value for money of MBA programs:

A table is created with three columns: “Factor,” “Weight,” and “Score.” In the “Factor” column, the key factors considered for evaluating the value for money of an MBA programme., cost, quality of education, career outcomes, return on investment (ROI), and personal fit are listed 

In the “Weight” column, a weight is assigned to each factor, based on its importance. The weightage arrived through a Delphi technique with the career counselling experts. They  assigned a weight of 15% to cost, 30% to quality of education, 30% to career outcomes, 20% to ROI, and 5% to personal fit.

The comparison of MBA schools was done by assigning a score to each factor, based on how well the MBA program met their needs in that area. This was done on a 10 point scale so that there could be a clearer demarcation of school positions. Then the factor’s score was multiplied by its weight, to determine its weighted score. The weighted scores for all factors was added up to get a total value for money score for their respective MBA program. (sample survey done for DCSMAT Trivandrum)

Various MBA school graduated can be  evaluated in random and a comparative score  made tabulating their overall VFM