Published on October 11, 2007
Slide1: MBA Markets in China K.C. Chan Dean, HKUST Business School A Glimpse into the Development of MBA Programs in China: A Glimpse into the Development of MBA Programs in China MBA first emerged in mainland China in 1990s Two types: Indigenous – from 1991 starting with Tsinghua University and 8 other International cooperation programs – approved by Ministry of Education (MOE) MOE began granting approval to international cooperation programs from 1995. As at 30 June 2004, 31 MBA programs are approved by MOE 30% of the 31 programs located in Shanghai 42% of the co-operations are with US schools Note that the actual number of cooperation programs are more than the MOE approved list. For example, e.g. Ceibs started offering MBA program in 1995, MOE approval in 2002, Maastricht School of Management started offering MBA program since mid-1980s but was only granted approval in 1995 Slide3: Development of MBA in mainland China resonates that of the economy in 2005, number of MBA admitted to MOE schools: 13,049 GDP Growth Rate Slide4: MBA programs are the most market oriented segment of Chinese universities Growth Driven by market demand, government policy universities need for resources willingness to experiment many types of joint programs Use of foreign faculty developing links with business Products marketing, brand building Slide5: While developments of MBA education in mainland China is fast, majority of the programs are targeting the domestic market. A small number of schools offer international MBA programs, defined as: Having international students in class, supported by international student recruitment effort Taught in English Like MOE approved international cooperation programs, the “international” MBA programs are clustered in Beijing and Shanghai - Beijing: - Tsinghua, Guanghua School of Management (Peking U), BiMBA (Peking U) Shanghai: - Ceibs, Jiaotong, Fudan Closer look at the key players in mainland China: Closer look at the key players in mainland China When including Hong Kong: When including Hong Kong Economics: Economics MBA tuition fee: USD 9,000 for Chinese Schools More for “international programs”, USD18K to USD25K Starting MBA salaries: average around USD25,000 to USD30,000 for top-end schools Slide9: Challenges facing Chinese Universities’ MBA programs General issues: - Shortage of good quality faculty - Uneven teaching quality - Increasing sophistication of the market - Development of a research contribution - lack of quality China research and case materials - some other policy constraints: pricing, admissions test Slide10: Internationalization issues: Market is receptive to international ideas and practices, but want applicability Global Schools have strong branding in China Strong local schools also want to tout internationalism How to build an international learning environment? EMBA programs – A growth market: EMBA programs – A growth market High fees and Flexible Teaching schedules Schools solve their faculty shortage problems with short term visitors Large market: many senior executives without management training Demanding teaching: relevance and applicability Schools grab market shares: in search for profits and influence Entry of Foreign players into this market because of better economics, schedule flexibility. Slide12: Strategic Issues (at least for top Chinese schools) What is the role of a Chinese School? How to serve the China market and country’s economic development? Where is the research on the issues of China management? How to become a world class school? Tactical Issues How to find the quality faculty? What business school model to follow? Slide13: A World about Hong Kong Hong Kong schools have strengths in following: - English teaching - Faculty PhD qualifications - Research contribution - Established international network - Placement of students with MNCs Hong Kong Schools have yet to establish a meaningful presence in China’s domestic market. Possible strategies: collaboration expanding intake of students from China build research / consulting presence Opportunities for Foreign Schools: Opportunities for Foreign Schools The market is there, but need to do the economics Current Regulation: Foreign Schools must go form JV with Chinese Schools Control issues Branding issues How to find a good partner to complement you? What are the goals: Money? Faculty research? Slide15: Continual growth of “mainland” China MBA – What does it mean to: International accreditation agencies International student admission practice Slide16: Thank You!