[Global HR Forum 2011] The Global Landscape for Business Schools

THE GLOBAL LANDSCAPE FOR THE GLOBAL LANDSCAPE FOR BUSINESS SCHOOLSBUSINESS SCHOOLS

GLOBAL HR FORUM 2011GLOBAL HR FORUM 2011

Judy D. Olian, DeanJudy D. Olian, DeanUCLA ANDERSON SCHOOL OF MANAGEMENTUCLA ANDERSON SCHOOL OF MANAGEMENT

November 3, 2011November 3, 2011

OVERVIEW:OVERVIEW:

� Inter-connectedness of global markets� Global business school trends across geographies:

o Growth o Applicationso Accreditation o Global branch campuses

� The role of business schools, and what we teach, in global competitiveness

� Questioning the ROI on the MBA� Global IT developments – challenge and opportunity

2 – Global HR Forum; November 2011

EXPORTS OF GOODS AND SERVICES EXPORTS OF GOODS AND SERVICES AS PERCENT OF WORLD GDP, 1960 AS PERCENT OF WORLD GDP, 1960 –– 2007 2007


Source: World Bank WDI & Global Development Finance Database

CHANGING REGIONAL SHARES OF GLOBAL GDPCHANGING REGIONAL SHARES OF GLOBAL GDP


Source: IMF, World Economic Outlook Database, April 2010

TOP FIVE EMERGING COUNTRIES BY GDP GROWTH, 2005 TOP FIVE EMERGING COUNTRIES BY GDP GROWTH, 2005 –– 20152015

GD

P, U

S$,

Bill

ions

4,000

6,000

8,000

10,000

Brazil

China

India

Mexico

Russia



For Brazil and Russia, 2009 – 2015 are estimated valu es. For China, India and Mexico, 2010 – 2015 are estimat ed values.

GD

P, U

S$,

Bill

ions

0

2,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

REGIONAL PERCENT CHANGE IN GDP, 2005 REGIONAL PERCENT CHANGE IN GDP, 2005 –– 2015* 2015*

0

2

4

6

8

10%

Cha

nge

in G

DP



*Estimated

-6

-4

-2

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Major advanced economies (G7) Newly industrialized Asian economiesEuropean Union ASEAN-5Middle East and North Africa

% C

hang

e in

GD

P

30%

40%

50%

60%2000-01

2009-10

US HIGHER EDUCATION INDUSTRY CHANGESUS HIGHER EDUCATION INDUSTRY CHANGES

0%

10%

20%

Public Private non-profit Private for-profit


GROWTH OF GLOBAL MANAGEMENT EDUCATION, 2008 GROWTH OF GLOBAL MANAGEMENT EDUCATION, 2008 –– 20102010

4,996

10,676

6,087

12,526

6,000

8,000

10,000

12,000

14,000

2008

2010

Source: AACSB


351

3,305

4,996

1,951

73

767

3,598

1,975

990

2,000

4,000

Africa Americas Asia Europe Oceania GLOBAL TOTAL

GMAT TESTS TAKEN, BY REGION GMAT TESTS TAKEN, BY REGION


Source: The Economist, October 15, 2011

GMAT SUBMISSIONS BY ASIAN STUDENTS 2001 GMAT SUBMISSIONS BY ASIAN STUDENTS 2001 -- 20092009

11.10%

-5%

0%

5%

10%

15%

1 2

Asian Test-Takers Submitting to US Schools

Asian Test-Takers Submitting to ASIAN Schools

Source: GMAC


-17.65%-20%

-15%

-10%

NOTE: All non-US test-takers submitting to US Schools dec lined by 14%

GROWTH IN AACSB’S NONGROWTH IN AACSB’S NON--US REPRESENTATIONUS REPRESENTATION

Source: AACSB Analysis, 2010


REGIONS WITH AACSB, EQUIS, AND/OR AMBA ACCCREDITATI ONREGIONS WITH AACSB, EQUIS, AND/OR AMBA ACCCREDITATI ON

High Income Economies

91.39%

Upper-Middle Income Economies

6.42%

Source: AACSB Analysis of Publicly Available Data as of July 2010


Lower-Middle Income Economies

2.19%

Low-Income Economies

0.00%

TOP HOME AND HOST COUNTRIES OF TOP HOME AND HOST COUNTRIES OF INTERNATIONAL BRANCH CAMPUSESINTERNATIONAL BRANCH CAMPUSES

US48%India

Others21%

HOME Country Establishing Branch Campuses Abroad

UAE25%

Others

Host Country

48%

Australia9%

UK8%

France7%

India7%

China9%

Singapore7%

Qatar6%Canada

4%

Others49%

Adapted from: 2009 OBHE report – “International Branch Campuses: Markets and Strategies,” by Rosa Becker


GLOBAL COMPETITIVENESS INDEX 2011 GLOBAL COMPETITIVENESS INDEX 2011 –– 2012 2012 VS. QUALITY OF MANAGEMENT SCHOOLSVS. QUALITY OF MANAGEMENT SCHOOLS

Source: World Economic Forum Global Competitiveness Index 2011- 2012 Report


GLOBAL COMPETITIVENESS INDEX 2011 GLOBAL COMPETITIVENESS INDEX 2011 –– 2012 2012 VS. CAPACITY FOR INNOVATIONVS. CAPACITY FOR INNOVATION



GCI GLOBAL COMPETITIVENESS INDEX 2011 GCI GLOBAL COMPETITIVENESS INDEX 2011 –– 2012 2012 VS. ETHICAL BEHAVIOR OF FIRMSVS. ETHICAL BEHAVIOR OF FIRMS




Source: Ogilvy & Mather Branding Research; N = 400 prospective students, 200 recruiters

ROI ON MBA TUITION?ROI ON MBA TUITION?

Source: The Economist, October 15, 2011



Source: Ogilvy & Mather Branding Research; N = 400 prospective students, 200 recruiters

IMPORTANT IT SHIFTSIMPORTANT IT SHIFTS

� Almost 2 B global Internet users in 2010, with 13% Y/Y growth

� Shift to smart phones and tablets, from desktop and notebook PCs

� 3 dominant platforms:

o Social – Facebook, almost 700 M users


o Mobile – iPhone/Touchpad, 130 M users

o Search – Google, almost 1 B users

� Global mobile traffic to grow 26x over next 5 years

� What’s the opportunity and challenge for business schools?

Source: By permission -- Matt Murphy/Mary Meeker, “Top Mobile Internet Trends, 2/10/11; http://www.businessinsider.com/mary-meeker-matt-murphy-2011-2#-1

UCLA ANDERSON’S GLOBAL STRATEGYUCLA ANDERSON’S GLOBAL STRATEGY� Regional focus - Asia and Latin America

� EMBA dual degree partnerships rather than satellites:o For Asia -- with National University of Singapore

o For Latin America – with Adolfo Ibanez University

� Learning opportunities to develop ‘global brains’:o Immersion trips to 18 locations

o Global requirement in curriculum


o Global requirement in curriculum

o Global student body

o Global projects including entrepreneurial and cause-related

� Public mission includes global outreach

� Use of technology and social media to expand reach and enhance learning

� Faculty with global research interests, who bring into curriculum

OBSERVATIONSOBSERVATIONS� Emerging economies are where the action is, with rapid

growth of business schools there,

� Globalization means that students, faculty and campuses are moving in multiple directions

� Economic competitiveness, quality management education, the capacity for innovation, and ethical education, the capacity for innovation, and ethical behavior are correlated – good sign

� BUT – growing questions about the ROI on the MBA

� Social and mobile media offer challenges and opportunities for higher education

� Underserved regions continue to be underserved


THANK YOUTHANK YOUTHANK YOUTHANK YOU


Education

[Global HR Forum 2011] The Global Landscape for Business Schools