The message below was sent by one of my Platinum members who has emailed me a couple of times before. He’s a Spaniard who is looking at applying to business school this year and, up to now, he’s been focused on applying to schools in the United States. In the message below, he informed me that he has won a prestigious scholarship to attend a business school in Shanghai, China and asked for my advice on whether to accept the scholarship or not.

Instead of telling him whether to take the scholarship, I offered him a quick framework that he can use to think through his decision.   A decision like this is MAJOR and shouldn’t necessarily come down to dollars and cents. The choice of an MBA program is a big one and shouldn’t be taken lightly, so it is important to step back and think about the full implications of the decision. I did tell him what I would do in his shoes, but, ultimately, the decision is his to make based on what he wants out of an MBA. I hope he find my advice to be helpful.

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JG wrote:

Hi Marquis,

[...]I just got surgery two days ago on my right shoulder [and, ] when i was yesterday at the hospital i received some good news. And here is where my new dilemma starts .

There are some public funded banks in Spain that, due to their nature, put aside some of their profits for social causes. One of those offer some scholarships to study abroad. These include full tuition, two round trip flights and a monthly “salary” (1k euros) while the degree lasts. As you may imagine, the application for these scholarships is quite competitive and they are quite prestigious (they even organize a reception with Spain’s king to hand them out, they ARE a big deal here).

When i finished my GMAT and TOEFL i figured out why not give them a try, after all i had nothing to lose. Well, yesterday i received notice that i was granted a scholarship to do an MBA. The trick is that this scholarship is linked to do my MBA at CEIBS, a business school in Sanghai that according to the finantial times 2009 rankings was #8 an this year was #22 (to give some perspective to its standings). Also, this bank will be paying for a 3 month intensive mandarin course (the MBA is taught in English, but you live in China after all).

Now i have the decision to take it or not.

There are still a couple more of these scholarships to apply for that aren’t linked to any school and i may get one of those. However, i am thinking in the case that i don’t get any other scholarship and i have to chose between going to a Stanford/Columbia/Chicago Booth MBA on my own or going for the CEIBS on this full ride scholarship, even getting paid to study.

There are many factors to this decision, obviously my debt status after the MBA makes a great difference between the two options.However, that is not the only one. The degree should be a facilitator for my career and i understand that an MBA from a top school would add a lot of value to my resume, the difference in value is what i think will ultimately influence my decision. For example, lets say that i apply for Mckinsey after my MBA (a very real possibility and my plan), and because of the “school brand” my chances to be hired diminish greatly, that is something to take into account. Another thing that may weight in my decision is the exchange program at this school, where you can go one semester to UCLA, Wharton or NYU between others and may reduce this “difference in value”.
I also think that learning a bit of Chinese may be a big differentiator for my resume.

There are many things to look at and as someone that both has coursed an MBA and a former management consultant at a top firm i am curious to know how you see it and would appreciate your input.

Best regards!!

JG

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My video response:

Key points:

• Key issues to consider include:
  • Goals/reasons for pursuing the MBA
  • Actual and perceived rigor of the program
  • Branding and value of the alumni network
  • Economics
• If I were in his shoes, I would aim to get into a top U.S. or European business school and pay for it, if necessary
  • I’m usually debt-averse, but, with the MBA, I’d be willing to spend money to go to the best school possible
  • Key factors for me include near-term and long-term impact of the MBA brand; size, geographic spread, and placement of network; recruiting and job opportunities; and long-term economic value of the degree