...Assignment 1: The MBA Decision 1. How does Ben’s age affect his decision to get an MBA? Ben must evaluate the cost of completing a MBA program against the higher earning potential after graduating. Therefore Ben’s age is one of the critical factors in his decision because his age determines how much longer he can work. If he would wait his MBA at age 40, he would have less time to recoup his cost by working at an increased salary resulting from graduating his MBA program. 2. What other, perhaps non-quantifiable factors, affect Ben’s decision to get an MBA? Asides from a purely financial standpoint, there are several other factors that may affect Ben’s decision to get an MBA. The value he attaches to education, completing a higher degree, or a sense of accomplishment may positively affect his decision. On the other hand the stress of a MBA program, the time commitment, or the intellectual challenge may be negative factors in Ben’s decision-making process. Ben may also think that a MBA and his increased earning potential may allow him to take better care should he chose to have a family. 3. Assuming all salaries are paid at the end of each year, what is the best option for Ben –from a strictly financial standpoint? In order to compare all three options, the net present value (NPV) of the three options must be calculated. NPV is the present value of future cash flows minus the present value of all costs associated in a decision (Ross, Westerfield, Jaffe, & Jordan, 2011)...
Words: 1612 - Pages: 7
...Consumer Decision Making According to (Consumer decision making process, 2010) Consumer decision making is the process of choosing between two or more alternatives; consumer decision making may be defined as a process of gathering and processing information, evaluating it and selecting the best possible option, goods, services, organizations, people, places, and ideas that will best addressing their current need. Sometimes consumers go through these stages of gathering and processing the information without even realizing that they are going through the processes. (Alet, 2001), states that Consumer behaviour and consumer decision-making have become prominent research topics in the various fields of consumer science in recent years. Consumer Decision Making pertains to making decisions regarding product and service offerings. There are different consumer decision making models such as Bettman's Information Processing Model of Consumer Choice, the Howard-Sheth model of buying behavior, Kotler model and the Nicosia model. The Engel, Kollat & Blackwell (later Miniard) consumer decision making model will be looked at for the purpose of this research. Engel, Kollat & Blackwell (later Miniard) consumer decision making model According to (Sahney, 2005), the Engel, Kollat and Blackwell Model, also referred to as the EKB model was proposed to organize and describe the growing body of knowledge/research concerning consumer behavior. A comprehensive model, it shows the various components...
Words: 3598 - Pages: 15
...Decision to Obtain an MBA MGT/521 October 12, 2012 Abstract According to CBS Money Watch (2007) as it pertains to an MBA Degree, “ When it comes to the practical value of the degree, the once-lonely voices of dissent have, in recent years, grown into a chorus of criticism. Among their accusations: The degree is over-hyped, MBA curricula are out of touch with real-world demands, and many programs have a culture that turns a blind eye to cheating. If the business world starts paying attention to these naysayers, that $100,000 tuition or the decision to pay big bucks to hire an MBA may start looking like less of a sound investment.” Decision to Obtain an MBA The decision for an individual to obtain his/her MBA can be both personal and professional. There are many negative connotations regarding the pursuit of an MBA. There are questions regarding whether or not it increases the pay range of an individual with an MBA vs. those individuals without an MBA. According to Brewer and Brewer (2012) “In a study involving MBA students, Simmering and Wilcox (1995) identified five factors that largely influence the decision to pursue the MBA graduate degree. These factors center around the personal prestige associated with the MBA, career exploration opportunities, goals for developing and improving interpersonal skills, entrepreneurial aspirations, and increasing career mobility.” The “[Graduate Management Admission Council] GMAC...
Words: 895 - Pages: 4
...BUS 650 Instructor Stanley Atkinson January 7, 2013 1. How does Ben’s age affect his decision to get an MBA? There are several factors that go into deciding to get an MBA. One of these factors for Ben is his age. Since he is currently 28 years old, and estimates that he only has about 40 years left to work, he has to decide if giving up two years of paid work will be worth it in the long run to go back to graduate school to obtain his MBA. If he goes back to school at this age he will be giving up on a 3 percent increase over a two year period. He will also lose money that could go into his retirement fund. Ben has also been out of school for 6 years. Will he be able to return to the school environment and adapt as easily as he did for his undergraduate degree? 2. What other, perhaps nonquantifiable factors, affect Ben’s decision to get an MBA? There are several nonquantifiable factors that can affect Ben’s decision on furthering his education. First his family status would qualify as one of these factors. Having a family to provide for can hinder a decision to advance in education. If Ben is the bread-winner or sole contributor to his family’s finances then he may not be able to obtain his goal because of the monetary contributions that he would be giving up. Another factor that may have influence is the prestige that Ben would fill if he completed his MBA and held the career position that he has always dreamed about. Prestige of a job and taking pride in something...
Words: 1587 - Pages: 7
...The MBA Decision | Case 1 | FIN640 Corporate FinanceMisty SkinnerBrookline College | Misty Skinner | | | 1. How does Ben’s age affect his decision to get an MBA? We assume that both MBA program start at the beginning of the year, now is the beginning of the year at his age of 28 and he can enroll both program now. The following summary table shows the information he can use to make the decision. Option | Dewey and Louis | Ritter College ,Wilton Univ (2 year program) | Mount Perry College (1 year program) | Tuition | / | 65000 | 80000 | Books and other supplies | / | 3000 | 4500 | Health insurance plan | / | 3000 | 3000 | Room and board expenses | / | 2000 | 2000 | Expect salary(annul) | 60000 | 110000 | 92000 | Growth rate | 3% | 4% | 3.5% | Bonus (tax free) | / | 20000 | 18000 | Average Tax rate | 26% | 31% | 29% | Discount rate | 6.5% | 6.5% | 6.5% | Based on the information above, we can find a timing that gong to the Business School is not a good deal because the net present value of future cash flows would be lower than that of staying at the current job. In addition, we assume Ben will retire at the end of 68 years old; and after T years, it will be worse for Ben to get MBA compared with continuing his current job. We will compare the NPVs of these 3 options at the beginning of (T+1) year so that we can get T. Option 1: if Ben still working at current job NPV1= Option 2: if Ben...
Words: 2083 - Pages: 9
...How can a Masters of Business Administration (MBA) degree take potential business men/women to the next level? An MBA is a broad degree that prepares students for high level management positions. Pursing an MBA helps gain knowledge in the business industry and further educates students in a field that they are highly passionate about. Even though an MBA is not always needed to succeed in the business industry, pursing an MBA can be very valuable because I am pursing an MBA to further my career, enhance my education, and achieve personal goals. The first important reason of why an MBA should be pursued is because it furthers careers. Pursing an MBA is something that should be taken highly. Having an MBA can open the door to a great deal of opportunities. Everyone wants to advance in his/her preferred profession. No one wants to linger in the same position creating a glass ceiling, but not many people truly know how to make their own advancement happen. Gaining an MBA can help further ones career and may increase salary. In some instances, employers may support more education and compensate for tuition costs. An MBA can also increase job security with your current job, if your employer is handling all the expenses. Joining an MBA program is a good networking opportunity and a good way to meet people and learn about other job opportunities. At the same rate, it is possible to succeed in the business industry without an MBA, but an MBA is a much broader view of the business world...
Words: 598 - Pages: 3
...lewis04@imperial.ac.uk Topic 4: The Internal Rate of Return HEC – MBA Financial Markets 4-1 IRR Definition • IRR = The discounting rate that makes the Net Present Value (NPV) equal to zero • IRR is also called the Yield to Maturity • YTM used for securities • IRR used for capital expenditures, Venture Capital and Private Equity. HEC – MBA Financial Markets 4-2 IRR • IRR is calculated using the same formula as the NPV except that the rate r is unknown: Fn ∑ (1 + r ) n =V 0 n =1 Where V0 is the initial investment in the project • The IRR is the rate r where the market value is equal to the present value of the future cash flows from the investment. N HEC – MBA Financial Markets 4-3 Computing IRR • The solution to the IRR formula is found through trial and error • Use a calculator or spreadsheet • Timing of cash flows is very important to calculation • Accurate models very carefully model the cash flows • Implementation shortfall arrives in an optimistic model of cash flows and the reality of actual magnitude and timing HEC – MBA Financial Markets 4-4 IRR as an Investment Rule • Many companies have a target return on investment – either through policy or historical results. • In the NPV example, a project was started if the NPV was positive. • In the IRR case, the project is not started unless the return (r) of the project is above a certain threshold. HEC – MBA Financial Markets 4-5 Limitations of IRR and NPV • NPV and IRR...
Words: 1256 - Pages: 6
...The MBA Decision Case Study Analysis 1 Philip Bard Potomac College – BUS503: Managerial Finance June 9, 2013 Rob Shah Abstract The purpose of this paper is to summarize the Case Study The MBA Decision. This case discusses the educational options for 28-year-old, Ben Bates. The purpose of this paper is to analyze Ben’s school options and make the decision that is going to be the most fiscally responsible in the long run. This decision will be achieved by answering the 6 questions at the end of the case study. The MBA Decision Case Study Analysis 1 This Case Study discussed the decision of which MBA program potential student, Ben Bates, should attend. Ben is satisfied with his current job, but wants to achieve his goal of becoming an investment banker. He feels that an MBA degree would allow him to achieve this goal, and has narrowed his school choices down to two options. Many factors are being considered by Ben, such as his current salary, tax rates, program prices, supply costs, health care costs, and future salaries as well as signing bonuses. In this case, Ben is 28 years of age and graduated from college when he was 22. He also currently has enough money in his bank account to pay for either of the MBA programs that he is exploring. “… and expects to work for 40 more years. His current job includes a fully paid health insurance plan…” (Ross, Westerfield, and Jaffe, 2013 p. 134). One can expect Ben’s MBA program to take 1-2 years, which would cause his to be...
Words: 1868 - Pages: 8
...PUNJAB TECHNICAL UNIVERSITY KAPURTHALA Scheme and Syllabus of Masters in Business Administration (MBA) Batch 2012 onwards By Board of Studies Business Administration Punjab Technical University Scheme of (MBA) Batch 2012 Onwards First Semester Course Code Course Title Load Allocation L T P 4 1 4 4 4 4 3 3 28 1 1 1 1 2 2 7 - Contact Hours: 36Hrs. Marks Distribution Internal 40 40 40 40 40 40 40 280 External 60 60 60 60 60 60 60 50 470 Total Marks 100 100 100 100 100 100 100 50 750 Total Marks 100 100 100 100 100 100 100 50 750 Total Marks 100 100 100 100 100 100 100 50 750 Credits MBA 101 MBA 102 MBA 103 MBA 104 MBA 105 MBA 106 * MBA 107 * MBA 108 Principles and Practices of Management Organizational Behaviour Accounting for Management Quantitative Techniques Managerial Economics Business Communication Information Technology for Management Viva Voce Total Course Title 5 5 5 5 5 5 5 2 37 Credits Second Semester Course Code Contact Hours: 34 Hrs Load Marks Distribution Allocation L T P Internal External 4 1 40 60 4 1 40 60 4 4 4 4 3 27 1 1 1 1 6 40 40 40 40 40 280 60 60 60 60 60 50 470 MBA 201 MBA 202 MBA 203 MBA 204 MBA 205 MBA 206 BTHU 101* MBA 207 Business Environment Production and Operation Management Human Resource Management Marketing Management Financial Management Research Methodology Human Values and Professional Ethics Viva Voce Total Course Title 5 5 5 5 5 5 3 2 35 Credits Third Semester Course Code Load Allocation L T P 4 1 4 4 4 4 4 3 27 1 1 1 1 1 6 Marks...
Words: 7594 - Pages: 31
...Question 1. (a) R²= 4.33% of the variation in the dependent variable RET is explained by the variation of the independent variables: GRI, SAT, TEN, Age, and MBA. We cannot assume from the low R squared that the model is useless because there might be one or more independent variables that are not significant to the dependent variable. Also, we cannot question the fact that the OLS are not accurate just by looking at the low R squared. In the opposite, adding new independent variables do increase the R squared even if they are not directly linked to the dependent variable, but do not make the regression useful. Besides, by using Excel, we can find out whether the model fits well data or not by referring to the F significance. We have HO: the model does not fit well the data and H1: the model does fit well the data. F significance is equal to 0.00024452 which is less than α. We then reject HO and conclude that the model fits well the data and is not useless. Question 1. (b) Let us suppose that we have sales as dependent variable. We want to regress sales against the following independent variables: price, gender, ads, population, inflation, service, GDP, location, types of products, preferences, season, awareness, suppliers, demanders, number of smokers, height, and weight. As long as we increase the number of the independent variables, the R² increases even though some independent variables are not significant to the dependent variable. Using the F-test that measures...
Words: 4963 - Pages: 20
...Management 521 February 20, 2010 Pursuing a Masters in Business Administration Pursuing a Masters in Business Administration (MBA) degree to achieve a personal goal may seem ludicrous to some, but not to the individual who desires to have a solid foundation of knowledge on which to build on. An undergraduate who decides to return to school as a graduate student is investing in his or her future. According to Levy (n.d.), an MBA can open doors for an individual and expose students to the business world in terms of job functions and industry. This paper will present an argument pertaining to pursuing an MBA. Additionally, the “What’s my Jungian 16-Type Personality” assessment will take a look at benefits in pursuing this degree. As a goal oriented individual, the decision to pursue an MBA degree was the right choice. Aside from personal ambition and goals, the decision will enhance my career opportunities, development, and will be a valuable asset. The MBA will also open doors to my personal, professional and financial fulfillment. I have been successful in my current position as a clinical research associate (CRA), and although I have had many experiences, the MBA program will enable me to expand my professional horizons and will facilitate me to acquire a solid business understanding. The Argument People have asked me why I am pursuing an MBA degree since my undergraduate degree is in health administration, and I currently have the opportunity to grow in the field of clinical...
Words: 985 - Pages: 4
...degree in Business Administration (MBA) or not pursue an MBA. The information presented in this paper indicates that the decision for getting an MBA is a big decision driven by the desire to make more money, progress more rapidly, working smarter, and becoming a better person. Getting an MBA is a good way to reconsider a professional path and make an employment transformation without penalty. There is also a particular amount of respect just by possessing an MBA. This paper presents some personal reasons that apply to the decision on why decide to go back to school to obtain an MBA and reasons not to. Writing an Argument My whole life I have heard it said that education is a key element is achieving individual development and life success. Getting an MBA is a big decision. The Master’s in Business Administration (MBA) is a widely accepted in business management around the world. While getting an MBA can be expensive, an MBA is a good way to reconsider a professional path and make an employment transformation without penalty. However, there are some people who say getting an MBA is not needed. They believe that people go to business schools for the the wrong reasons and that individuals can make employment transformations or move up in a career field without having to get an MBA. Big Decision Getting an MBA is a good way to reconsider a professional path and make an employment transformation without penalty. According to some sources, a good MBA school may cost you $80,000 in tuition...
Words: 1178 - Pages: 5
...MBA –H4020 Human Resource Accounting HUMAN RESOURCE ACCOUNTING UNIT – I The Non accounting of human resources and the change occurring therein, of an organization may provide a poor picture of the profits and profitability of the organization. Likert Objectives of the Study: This unit aims to provide a basis for the conceptual framework of Human Resource Accounting. An attempt is made to highlight the following aspects. Development of the Concept of HRA An Historical Score Card Meaning and Definition of HRA Importance Objectives of Human Resource Accounting Limitations of Human Resource Accounting HRA for managers & HR Professionals Investment in Human Resources Quality of Work Force and Organizations’ Performance Efficient use of Human Resource Enumerating the Assets Calculating the Market Value of Assets Human Capital. 1 MBA –H4020 Human Resource Accounting INTRODUCTION To ensure growth and development of any orgnisation, the efficiency of people must be augmented in the right perspective. Without human resources, the other resources cannot be operationally effective. The original health of the organization is indicated by the human behaviour variables, like group loyalty, skill, motivation and capacity for effective interaction, communication and decision making. Men, materials, machines, money and methods are the resources required for an organization. These resources are broadly classified into two categories, viz., animate and inanimate (human and physical)...
Words: 55189 - Pages: 221
...Should I Get an MBA? Jane Doe University of Phoenix: MGT/521 October 11, 2012 Joseph Mason The definition of MBA according to Wikipedia (2012) is the following: Master of Business Administration (MBA or M.B.A.) is a master's degree in business administration, which attracts people from a wide range of academic disciplines. The MBA designation originated in the United States, emerging from the late 19th century as the country industrialized and companies sought out scientific approaches to management. The core courses in the MBA program are designed to introduce students to the various areas of business such as accounting, finance, marketing, human resources, operations management, etc. Students in MBA programs have the option of taking general business courses throughout the program or can select an area of concentration and focus approximately one-fourth of their studies in this subject (“Wikipedia”, 2012). Accreditation bodies exist specifically for MBA programs to ensure consistency and quality of graduate business education. Business schools in many countries offer MBA programs tailored to full-time, part-time, executive, and distance learning students, with specialized concentrations (“Wikipedia”, 2012). I asked myself a series of questions of “Why should I get an MBA”? I took a systemic approach by addressing all the pro’s and cons of having an MBA. First, the pros of an MBA give you credibility...
Words: 1610 - Pages: 7
...MARKETING PLAN ON AGRO BASED MBA 1. Introduction Ours is an agricultural country. Eighty percent of our economy is supported by agricultural resources. A large portion of our exports is contributed by agricultural products. With the emergence of green revolution, lots of agro based firms have come up. Like poultry, fishery, dairy, pisciculture, sericulture etc. Our economy is largely shared by the contribution of all these firms. At present the existing agricultural firms being highly promising, are not doing well due to lack of proper management knowledge on agriculture. So, necessity of agro-based management knowledge is increasingly felt day by day. As such, introduction of an agro-based MBA is a demand of time. 1. Origin This marketing plan of Agro based MBA program was authorized by course instructor on 28 March 2002. Proposal of the plan was submitted on 12 April 2002. Approval of the proposal by our course instructor initiated to carry out necessary research and prepare this report on Marketing Plan of an Agro-based MBA program. The submission date of the report is 27 May 2002. 2. Problem Feasibility has been studied about introduction of an Agro-based MBA program and the response is found highly positive. Our group is given the task of formulating a suitable marketing plan for the Agro-based MBA program through detail marketing research. 1.3 Research Objectives 1.3.1 Broad Objective The...
Words: 9772 - Pages: 40