MBA CITY MONITOR Ivan Bofarull ESADE Business School · Ivan Bofarull, director of Analytics &...

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MBA CITY MONITOR

Ivan Bofarull

ESADE Business School

May 2013

Ivan Bofarull, director of Analytics & Strategy, ESADE Business School

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Sources of data

Ivan Bofarull, director of Analytics & Strategy, ESADE Business School

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Cities, talent attraction &

MBAs

Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 4

Cities and talent attraction

• 50%+ of the world’s population lives in cities, which generate 80% of the GDP worldwide.

• Emergence of global hubs: decisions increasingly made from a city-perspective (for instance, the case of the City of London, Hong Kong, Singapore,…) rather than a country or regional perspective.

• New highly-skilled population increasingly mobile, which increases city’s competition for talent attraction and retention.

• As much as American cities capitalized talent mobility in the wake of the Second World War, a question looms today: which cities will capitalize on the talent mobility in the wake of the Great Recession? Singapore? Dubai? Santiago?

Source: EIU, «City Hot Spots»


«MBA» as a signal for talent

• If there is a professional credential that has become a popular signal for talent, this is «MBA»

Proliferation of the MBA as a credential

#of business, law and medicine graduate degrees offered in the US

0

200

400

600

800

1000

1200

1955 1960 1975 1980 1988 2004

MBA

JD

MD

Source: AACSB and Rakesh Khurana


MBAs have an impact

• MBAs get high exit salaries and pay increasingly higher tuitions: a two-fold impact for locations

Source: The Economist


• In a 2010 joint research, Herminia Ibarra (Insead) and Morten Hansen (Berkeley) analyzed the performance of 2,000 CEOs worldwide.

• They researched on three factors: – when they took office

– how much the company’s capitalization grew in that period of time

– and finally if they had or not an MBA.

• Ibarra and Hansen found out that those CEOs who had an MBA ranked on average 40 places higher than those who did not have an MBA.

MBAs have an impact

Source: Insead


Does location matter for a prospective MBA?


The MBA City Monitor

• Why not predicting a city’s appeal for talent with a single metric?:

How many top international students are doing an MBA in your city at any time of the year?


The MBA City Monitor

Definition of the universe and methodology for the purpose of the MBA City Monitor:

• The program has been ranked by the Financial Times in at least one of the last three editions of the MBA ranking

• Full Time general management program

• Enrollments, not intakes (Bloomberg Business Week school profiles)

• International students

• Urban areas, not strictly city limits (for instance: «Oxbridge» and London)

• Max. 2h driving distance according to Google Maps


The MBA City Monitor. Outputs

• Preliminary findings: regional trends

• City ranking by total international enrolled students

• City ranking by total international enrolled students (per 1 million citizens)

• Country ranking by total international enrolled students


Preliminary findings: Geotrends

• Finding#1: 126 MBA programs have met our criteria, from which more than half (53% combined) are taught in the US & Canada, and an additional 27% are taught in Europe. Despite a major shift of economic power to the East, 80% of top MBA programs are still taught in the West


• Finding#2: 37,500 students are enrolled in any of these 126 programs, from which 70% of students are enrolled in US MBA programs: US schools have larger volumes. Actually, only 6 MBA programs (all of them in the US) account for 22% of the whole global enrollment. The Big Six have enrollments larger than 1,000+ each.



• Finding#3: 17,544 students, or 50% of the total population, are international. However, diversity differs by regions. While 89.3% of the enrolled MBA students in Europe are international, US schools boast a much lower percentage (38.9%) of international students. Also, the effect of hub cities plays a role in Asia-Pacific and Middle East when it comes to attracting international students.



The rankings


The Top 10 Cities By international enrollment


#10. San Francisco

–San Jose

International enrollment: 662

Total enrollment: 1,437

International enrollment per 1M: 103


#9. Singapore


Total enrollment: 721



#8. Raleigh-

Durham, NC





#7. Toronto





#6. Paris





#5. Barcelona





#4. Chicago





#3. London

International enrollment: 1,013




#2. New York





#1. Boston





The top 20 cities by international enrollment

Rank City International

MBA enrollment Int’ enrollment

per 1M

1 Boston 1,820 404

2 NY 1,054 55

3 London 1,013 68

4 Chicago 926 97

5 Barcelona 857 159

6 Paris 830 80

7 Toronto 815 146

8 Raleigh-

Durham, NC 684 402

9 Singapore 669 126

10 San Francisco 662 103


MBA enrollment

Int’ enrollment per 1M

11 Philadelphia 641 107

12 Los Angeles 529 41

13 Madrid 520 81

14 Detroit 445 87

15 Washington DC 390 68

16 Shanghai 320 19

17 Richmond-

Charlottesville,VA 317 226

18 Indianapolis 306 146

19 Manchester 301 182

20 Phoenix 269 63



MBA enrollment Int’ enrollment

per 1M

1 Boston 1,820 404

2 Raleigh-

Durham, NC 684 402

3 Richmond-

Charlottesville,VA

317 226

4 Manchester 301 182

5 Barcelona 857 159

6 Toronto 815 146

7 Indianapolis 306 146

8 Singapore 669 126

9 Philadelphia 641 107

10 San Francisco 662 103


MBA enrollment

Int’ enrollment per 1M

11 Chicago 926 97

12 Detroit 445 87

13 Madrid 520 81

14 Paris 830 80

15 London 1,013 68

16 Washington DC 390 68

17 Phoenix 269 63

18 NY 1,054 55

19 Los Angeles 529 41

20 Shanghai 320 19

The top 20 cities by international enrollment per 1M


Rank City International MBA

enrollment

1 London 1,013

2 Barcelona 857

3 Paris 830

4 Madrid 520

5 Manchester 301

The top in Europe


Rank Country International MBA

enrollment

1 USA 10,135

2 UK 1,582

3 Spain 1,377

4 Canada 1,135

5 France 855

6 Singapore 668

7 China 563

The top 10 countries by international enrollment


The case of Barcelona


Main Outcomes

• Barcelona #5 in the world, #2 in Europe in intl’ top MBA population

• Barcelona accounts for 11.5% of the top MBA international students outside of the US

• Spain #3 in the world and #2 in Europe in international top MBA population

• Spain accounts for 18.5% of the top MBA international students outside of the US

Economic impact

• How much additional economic impact an MBA student makes when compared to an average visitor?

Economic impact: how much do avg. visitors and MBAs spend?

MBA Avg. Spending*

€741/international visitor per full stay

*Source: Turisme de Barcelona *Weighted tuition (by # of students) from ESADE, IESE and EADA combined

**Taken from IESE and ESADE brochures

Avg. Spending Living Expenses**

€25,000/year Avg. Spending

Tuition* €61,556 total (full program)

on avg. (all schools)

Economic impact: how much do avg. visitors and MBAs spend?

Annualized Spending* €40,755

(5-day stay avg., 75% occupancy)

*Source: Turisme de Barcelona *Weighted tuition (by # of students) from ESADE, IESE and EADA combined

**Taken from IESE and ESADE brochures

MBA Avg. Spending

Living Expenses** €25,000/year Annualized spending

Tuition* €45,947/year avg.

(500-day stay avg.)

Annual economic impact: The MBA student

+74%

Annual economic impact: The MBA student

€60 M of direct annualized impact in BCN

Annual economic impact: Spillover or multiplier effect

Other indirect benefits:

Some are employed in the city (5 -10%)

Some start up new ventures in the city (5 -10%)

Some will be prescriptors of the city

*Taken from ESADE and IESE placement reports, 2010-2012


Action Plan: the case of Barcelona

Cities like Barcelona need to capitalize this huge potential by developing

specific policies targeting the MBA segment. Three examples follow:

• MBA Intake: Barcelona Trek

• MBA enrolled students: Barcelona Case Competition

• MBA graduating class: Barcelona Global Ambassador Card



• Barcelona Trek

Incoming MBA students would participate in a student trek to visit the city’s main hotspots from the research and innovation perspective. The trek would include:

Centre de Regulació Genòmica

Institut de Recerca Biomèdica

Parc de Recerca Biomèdica de Barcelona

Barcelona Supercomputing Center

Institut de Ciències Fotòniques

The trek would be aimed at connecting the students «brains» with

the city’s research hotspots likely to develop business spin-offs.



• Barcelona Case Competition

Enrolled MBA students would participate in a case competition organized by a local institution (say, Barcelona Global ) that would define one or more major challenges that the city is currently facing. Challenges could be defined by local companies or not-for-profit institutions.

MBAs could participate in teams to find a solution to the challenge. The winning team should be awarded in some way. For instance: a scholarship to stay in the city and start-up a venture.



• Barcelona Global Ambassador Card

Graduating MBAs may get a gift from the city: a membership card that ties

them emotionally to Barcelona. The card would say they are «Barcelona Global Amabassadors» and would include the name of the school where they graduated. The card may include some benefits for those returning to the city.



Intake Enrolled Graduating

The MBA lifecycle:



Student Trek

Case competition

Ambassador Card

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