| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

We provide access to live business television and business related videos from: Bloomberg TV; The Wall Street Journal; CNBC and the Financial Times. Click image:

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax 2008

Climate Change Reports

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : International Last Updated: Apr 24, 2009 - 5:31:05 PM


IMD of Switzerland tops Economist Intelligence Unit's 2008 MBA rankings; Dublin's Michael Smurfit Graduate School of Business gets 40th ranking
By Finfacts Team
Sep 26, 2008 - 6:03:38 PM

Email this article
 Printer friendly page
American investor Warren Buffett, CEO of Berkshire Hathaway Inc. and Eitan Wertheimer, Chairman of of Israeli company Iscar, visited the IMD business school campus in Lausanne, Switzerland, in May 2008, to celebrate 20 years of family business research and education at IMD. Warren Buffett explained how a 1¼ page letter was enough to convince him to open up investments outside the US by making a deal with ISCAR - - “I usually know within five minutes if I’m going to make a deal. The letter gave the basic facts and told me something about the person who ran it – I could see in my mind a man with a passion for his business.”

IMD of Switzerland has been ranked the first in the world in the Economist Intelligence Unit's latest survey for full-time MBA programmes. It is the first time the Swiss school has topped the annual ranking. IMD took the number one slot from the University of Chicago's Graduate School of Business, which drops to third, while Spanish school IESE claims second place. Stanford and Dartmouth College's Tuck School of Business round off the top five. The highest ranked Asian school was Hong Kong University of Science and Technology in 11th. Dublin's Michael Smurfit Graduate School of Business gets a 40th ranking.


IMD is one of the most international business schools in the world. Ninety-seven percent of its students come from abroad—with around half of those from outside of Europe. One of the reasons for the school's triumph has been the success of its careers placement service. IMD students can expect to earn a basic salary of US$130,000 a year on their graduation—compared with pre-MBA salaries of US$79,000.

Indeed this year was a bumper year all round for MBA salaries. Columbia in New York, for example, reported an average leaving salary of US107,000, while London Business School's graduates can expect US$120,000-a-year. But with the banking crisis leading to job losses in financial centres around the world, this might be the best it gets for business school graduates for some time.

Bill Ridgers, editor of Which MBA? commented:"The financial services industry has for some time competed with consultancies to be the leading recruiter of MBA graduates, offering huge salaries along the way. But with recent failures, a lot of talented bankers are suddenly out of a job. It is likely that current students are likely to find themselves graduating into a buyers' market and salaries will start to reflect this."

Top 100 full-time MBA programmes
Rank (2007 position in brackets) School Country
1 (5) IMD - International Institute for Management Development Switzerland
2 (3) IESE Business School—University of Navarra Spain
3 (1) University of Chicago—Graduate School of Business US
4 (2) Stanford Graduate School of Business US
5 (4) Dartmouth College—Tuck School of Business US
6 (6) University of California at Berkeley—Haas School of Business US
7 (7) University of Cambridge—Judge Business School UK
8 (8) New York University—Leonard N Stern School of Business US
9 (15) London Business School UK
10 (9) IE Business School Spain
11 (20) Hong Kong University of Science and Technology—School of Business and Management Hong Kong
12 (13) Harvard Business School US
13 (11) Cranfield School of Management UK
14 (22) Vlerick Leuven Gent Management School Belgium
15 (24) York University—Schulich School of Business Canada
16 (14) Northwestern University—Kellogg School of Management US
17 (21) University of Pennsylvania—Wharton School US
18 (16) Massachusetts Institute of Technology—MIT Sloan School of Management US
19 (17) INSEAD France/Singapore
20 (10) Henley Business School UK
21 (18) Columbia Business School US
22 (12) University of Michigan—Stephen M. Ross School of Business US
23 (27) Warwick Business School UK
24 (19) Ashridge UK
25 (23) University of Virginia—Darden Graduate School of Business Administration US
26 (n/a) Melbourne Business School—University of Melbourne Australia
27 (31) University of Oxford—Saïd Business School UK
28 (28) Cornell University—Johnson Graduate School of Management US
29 (29) Duke University—Fuqua School of Business US
30 (25) Yale School of Management US
31 (39) Hult International Business School US
32 (36) HEC School of Management, Paris France
33 (47) ESADE Business School Spain
34 (32) University of Notre Dame—Mendoza College of Business US
35 (33) Carnegie Mellon University—The Tepper School of Business US
36 (26) University of Washington—Foster School of Business US
37 (35) International University of Monaco Monaco
38 (41) University of Southern California—Marshall School of Business US
39 (30) Emory University—Goizueta Business School US
40 (44) University College Dublin—Michael Smurfit Graduate School of Business Ireland
41 (n/a) UCLA—The Anderson School US
42 (n/a) Indiana University—Kelley School of Business US
43 (34) Ohio State University—Fisher College of Business US
44 (n/a) Rice University—Jesse H Jones Graduate School of Management US
45 (58) Imperial College London—Tanaka Business School UK
46 (38) City University—Cass Business School UK
47 (43) Monash University Australia
48 (45) University of Texas at Austin—McCombs School of Business US
49 (42) University of North Carolina at Chapel Hill—Kenan-Flagler Business School US
50 (46) Rotterdam School of Management, Erasmus University Netherlands
51 (n/a) Mannheim Business School Germany
52 (50) Lancaster University Management School UK
53 (51) University of Maryland—Robert H Smith School of Business US
54 (48) Wisconsin Business School US
55 (56) University of Edinburgh Management School UK
56 (49) Washington University in St Louis—Olin School of Business US
57 (84) Macquarie Graduate School of Management Australia
58 (37) University of Hong Kong—Faculty of Business and Economics Hong Kong
59 (60) Brandeis International Business School US
60 (57) Manchester Business School UK
61 (54) Aston Business School UK
62 (40) Pennsylvania State University—Smeal College of Business US
63 (65) University of Bath—School of Management UK
64 (n/a) University of Minnesota—Carlson School of Management US
65 (59) Durham Business School UK
66 (55) Vanderbilt University—Owen Graduate School of Management US
67 (63) University of Birmingham—Birmingham Business School UK
68 (71) University of California at Davis US
69 (78) Audencia Nantes School of Management France
70 (64) University of Strathclyde—Graduate School of Business UK
71 (74) Boston University US
72 (70) University of Pittsburgh—Joseph M Katz Graduate School of Business US
73 (91) Chinese University of Hong Kong Hong Kong
74 (66) E.M. Lyon France
75 (68) Purdue University—Krannert Graduate School of Management US
76 (61) University of Iowa—Henry B Tippie School of Management US
77 (52) Leeds University Business School UK
78 (75) University of Glasgow—Business School UK
79 (98) Newcastle University Business School UK
80 (86) Bocconi University—SDA Bocconi School of Management Italy
81 (72) Nanyang Business School—Nanyang Technological University Singapore
82 (77) International University of Japan—Graduate School of International Management Japan
83 (67) University of South Carolina—Moore School of Business US
84 (89) University of British Columbia—Sauder School of Business Canada
85 (81) Wake Forest University—Babcock Graduate School of Management US
86 (83) Southern Methodist University—Cox School of Business US
87 (69) University of Illinois at Urbana-Champaign—College of Business US
88 (82) University of Rochester—William E Simon Graduate School of Business US
89 (94) National University of Singapore—The NUS Business School Singapore
90 (73) TiasNimbas Business School Netherlands
91 (92) Indian Institute of Management - Ahmedabad India
92 (85) University of Georgia—Terry College of Business US
93 (62) Nottingham University Business School UK
94 (80) Curtin University Graduate School of Business Australia
95 (95) Temple University—Fox School of Business US
96 (100) Thunderbird—Garvin School of International Management US
97 (96) Universiteit Nyenrode—The Netherlands Business School Netherlands
98 (88) Sheffield University Management School UK
99 (93) Bradford School of Management UK
100 (n/a) McGill University - Faculty of Management Canada

Ratings by category
When surveyed, EIU says students consistently tell say that the most important reason they chose to take an MBA was in order to open new career opportunities. Given the emphasis that full-time students put on schools’ careers services it is no surprise to find that this is one of the strong points of most of the top schools in the ranking. It is perhaps the area that receives the most vocal criticism from students when it does not meet their high expectations, but when managed well it can set a school apart. At IMD, for example, 99% of students were in a job within three months of graduating, a fact that no doubt helped the careers service receive a very high rating from students. It was a similar story at IESE and Chicago, both of which score highly in the open new career opportunities category.


One reason that the top-rated schools have impressive careers statistics is that they are well resourced. However, it is also true that the students from the schools with the highest academic standard will automatically draw the attention of the best employers. What sets the top-rated schools apart is that they do not rely merely on their reputation to place students, but couple this with a tireless quest to bring the best employers to the school.

EIU says bringing together the top companies and the brightest students inevitably leads to some impressive salaries. European schools have recently had the upper hand when it comes to the salaries of their graduates. This is partly because their students are generally older with more work experience. However, despite a tough economic climate, many US schools have seen an increase in the salaries of their graduates. Twelve schools now boast average salaries over US$100,000, with Stanford leading North America at US$112,000.

But this is still well behind Europe’s tally of 21 schools. At IMD, for example, graduates can expect to earn a basic salary of US$130,000. Even at some lower-ranking European schools, such as Strathclyde or Audencia, students can expect to out-earn their more prestigious counterparts at Stanford or Harvard.

Top 10 programmes by category
  Open new career opportunities Personal development and educational experience Increase salary Potential to network
1 Chicago Henley Ashridge Henley
2 Indian Institute (Ahmedabad) Monash Henley Thunderbird
3 Hong Kong UST Curtin HEC Paris Vlerick Leuven
4 California at Berkeley Bath IESE New York (Stern)
5 New York (Stern) Cambridge (Judge) Warwick HEC Paris
6 Dartmouth (Tuck) Hong Kong UST IMD IE
7 IE Melbourne Oxford (Saïd) Notre Dame (Mendoza)
8 IESE INSEAD Bath Cambridge (Judge)
9 Virginia (Darden) Hong Kong University Hult EM Lyon
10 IMD York (Schulich) London Northwestern (Kellogg)

European schools also do well in the networking stakes, often because their alumni are more international. IE, for example, has alumni associations in 49 countries. Even relatively young European schools, such as Cambridge, already have an impressive reach across the world. In contrast, many US schools’ alumni are yet to open a single overseas branch.

What the US schools are generally much better at, though, is keeping their alumni active once they have left the programme. In this they are helped to some extent by having graduated more MBAs each year for a longer time, meaning they have a bigger alumni base. But it is still an impressive achievement to keep so many involved. Wharton, for example has over 80,000 active MBA alumni and Stern (New York) has over 50,000.

The ranking’s distinctive features and methodology
Over the past 20 years, the Economist Intelligence Unit has regularly surveyed MBA students about why they take an MBA. Four factors consistently emerge:

  • to open new career opportunities and/or further current career;
  • personal development and educational experience;
  • to increase salary;
  • the potential to network.

These factors are the basis for the ranking. The Economist Intelligence Unit ranks full-time MBA programmes on their ability to deliver these elements to students. It weights each element according to the average importance given to it by students surveyed over the past five years.

The Economist Intelligence Unit ranking differs from other rankings in several important areas. It is:

  • More student-centric. It measures the way schools meet the demands students have of an MBA programme.
  • All-embracing. It is based on detailed questionnaires completed by business schools and around 20,000 current MBA students and graduates around the world. Key numerical data (such as average GMAT scores) are combined with subjective views from students and graduates (such as their assessment of a business school’s faculty).
  • Global. It allows direct comparison of MBA programmes around the world.
  • Regional. It compares MBA programmes in three regions: North America, Europe, and Asia and Australasia.
  • Flexible. Programmes may be ranked in many ways, producing, for example, tables of the top ten US or Asian and Australasian schools by GMAT score or the top ten US and European school by percentage of foreign students. This facility is available at www.which-mba.com.

To qualify for inclusion in the Economist Intelligence Unit rankings, the schools with full-time MBA programmes that responded to the survey had to meet various thresholds of data provision, as well as attaining a minimum number of responses to a survey gauging the opinion of current students and alumni who graduated within the last three years. These were set as a proportion of the annual intake of students to the programme as shown below.

Proportion of responses required from students and recent graduates
Student intake Minimum responses required
Up to 43 10
44–200 25% of intake
More than 200 50

Data were collected during spring 2008 using two web-based questionnaires, one for business schools and one for students and recent graduates. Schools distributed the web address of the latter questionnaire to their own students and graduates. Around 20,000 students and graduates participated. All data received from schools were subject to verification checks, including, where possible, comparison with historical data, peer schools and other published sources. Student and graduate questionnaires were audited for multiple or false entries.

Memory has been built into the rankings by taking a weighted average of 2008 (50%), 2007 (30%) and 2006 (20%) data to provide a rounded picture of the school. Sudden changes in the situations at a school, which might not produce an immediate increase in MBA quality, are thus reflected gradually, much as the improvement would affect students.

The table below summarises the measures used to calculate the rankings together with their respective weightings. Student and alumni ratings make up 20% of the total ranking and 80% is based on quantitative data provided by schools. The statistical methodology adopted for the ranking gives each business school a unique score (known to statisticians as a z-score). Unlike some other rankings, the Economist Intelligence Unit does not include any “equal” schools (for example, four schools ranked equal sixth followed by one ranked tenth). However, it should be noted that differences between some schools might be very slight.

Summary of ranking criteria and weightings
Measure Indicators Weighting as percentage of category
A. Open new career opportunities (35%)    
1. Diversity of recruiters Number of industry sectors 25.00
2. Assessment of careers services Percentage of graduates in jobs three months after graduation 25.00
3. Jobs found through the careers service Percentage of graduates finding jobs through careers service 25.00
4. Student assessment Meeting expectations and needs 25.00
B. Personal development/education experience (35%)    
1. Faculty quality Ratio of faculty to studentsb 5.00
  Percentage of faculty with PhD (full-time only) 10.00
  Faculty rating by students 10.00
2. Student quality Average GMAT score 12.50
  Average length of work experience 12.50
3. Student diversity Percentage of foreign students 8.33
  Percentage of women studentsc 8.33
  Student rating of culture and classmates 8.33
4. Education experience Student rating of programme content and range of electives 6.25
  Range of overseas exchange programmes 6.25
  Number of languages on offer 6.25
  Student assessment of facilities and other services 6.25
C. Increase salary (20%)    
1. How much did your salary increase after graduating? Salary change from pre-MBA to post-MBA (excluding bonuses) 25.00
2. Leaving salary Post-MBA salary (excluding bonuses) 75.00
D Potential to network (10%)    
1. Breadth of alumni network Ratio of registered alumni to current students 33.33
2. Internationalism of alumni Number of overseas countries with an official alumni branch 33.33
3. Alumni effectiveness Student assessment of alumni network 33.33
a A minimum threshold of data was required for each category. Weightings for schools meeting the category threshold but not providing all data were distributed evenly within the category.
b Only faculty teaching on the full-time MBA programme were included. Faculty were weighted as follows: full-time 100%; part-time 50%; visiting 25%.
c Variance from 50%
 

Related Articles


© Copyright 2009 by Finfacts.com

Top of Page

International
Latest Headlines
Monday Newspaper Review - Irish Business News and International Stories - - July 28, 2014
Friday Newspaper Review - Irish Business News and International Stories - - July 25, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - July 23, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - July 22, 2014
Monday Newspaper Review - Irish Business News and International Stories - - July 21, 2014
Friday Newspaper Review - Irish Business News and International Stories - - July 18, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - July 17, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - July 16, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - July 15, 2014
Monday Newspaper Review - Irish Business News and International Stories - - July 14, 2014
Friday Newspaper Review - Irish Business News and International Stories - - July 11, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - July 10, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - July 09, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - July 08, 2014
Monday Newspaper Review - Irish Business News and International Stories - - July 07, 2014
Friday Newspaper Review - Irish Business News and International Stories - - July 04, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - July 02, 2014
Markets: BNP Paribas admits crimes in US court; UK manufacturing was robust in June
Tuesday Newspaper Review - Irish Business News and International Stories - - July 01, 2014
Friday Newspaper Review - Irish Business News and International Stories - - June 28, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - June 26, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - June 25, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - June 24, 2014
Monday Newspaper Review - Irish Business News and International Stories - - June 23, 2014
Friday Newspaper Review - Irish Business News and International Stories - - June 20, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - June 19, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - June 18, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - June 17, 2014
Monday Newspaper Review - Irish Business News and International Stories - - June 16, 2014
Friday Newspaper Review - Irish Business News and International Stories - - June 13, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - June 12, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - June 11, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - June 10, 2014
Markets: Japan upgrades GDP growth in Q1 2014 as business investment rises
Monday Newspaper Review - Irish Business News and International Stories - - June 09, 2014
Friday Newspaper Review - Irish Business News and International Stories - - June 06, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - June 05, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - June 04, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - June 03, 2014
Friday Newspaper Review - Irish Business News and International Stories - - May 30, 2014