Enter the Dragon

Updated on: Monday, February 13, 2012

The Chinese 'Year of the Dragon' is reckoned to be a year for great deeds, innovative ideas and an advantageous time to begin new projects. Judging by the latest ranking of full-time MBA programmes by the Financial Times, business schools in the region were paying attention.

Three schools from China made it to the top 100 for the first time, with the Chinese University of Hong Kong (CUHK) jumping in at number 28, to join Hong Kong UST and Shanghai's CEIBS in the world's top 30. Schools from Singapore also feature prominently, with the National University of Singapore making a dramatic entrance at number 23, with Nanyang Business School close behind.

There is little doubt that the economic balance of power has tipped eastwards in the past decade. The harsh reality for the West is that the most exciting business opportunities of the next decade may emerge on the other side of the world, which raises the question whether the balance of world intellectual power may also be shifting. And the future business school of choice may not be in Massachusetts , London or Barcelona but in Shanghai, Hyderabad or Singapore.

Chinese Market

After two years of working as a supply chain project manager in Shanghai, Rahul Bagde felt that he still didn't understand China that well. He applied to CEIBS, and has spent the last 18 months deepening his understanding of the country's business environment. "The combination of international faculty, an extensive alumni network, and guest speakers with insight into the Chinese market is invaluable. I am at a sweet spot where I want to spend this decade in China, which will help me for the following decade of Indian growth."

Consistent GDP growth of between eight and 10% presents its own challenges for the next generation of globally-minded Indian professionals. "Managers cannot rely on their own experience to keep up with the pace of change," says Didier Guillot, director of the OneMBA programme at the Chinese University of Hong Kong (CUHK). "They want global thinking, regional perspectives, and insights that point to new trends and developments. We are committed to help them update their business and management knowledge, stay at the forefront of innovation, and build a career at the global level."

Demand of OneMBA and other top MBA programmes in the region is certainly on the rise. Score reports for the Graduate Management Admissions Test (GMAT) used by business schools as part of the candidate selection process, indicate that in the past five years the number of applicants from China, India, Hong Kong and Singapore sending their test scores to schools in these countries has increased by an impressive 229%. At CEIBS, the percentage of non-Chinese students studying in the full-time MBA programme has increased from 2% in 2005 to 39% in 2011.

And with six to 10 applicants for every place on the MBA programme , the top schools in Asia are matching the admissions selectivity of Harvard and Wharton, admit tedly with considerably smaller class sizes. If the GMAT is any indication of student smarts, these schools can claim to attract a bright talent pool. Though not quite on a par with the likes of Stanford GSB, whose average GMAT score last year was 731, schools in Asia are edging closer, with a GMAT average around the 700 mark.

Cost Factor

With growing concern that the tuition fees at many two-year programmes in the US are reaching unsustainable levels, a select number of schools in Asia make a strong case for an affordable top-tier MBA with an excellent return on investment . Graduates at Peking University this year reported a 201% increase over their pre-MBA salary. The 50 graduates in the university's BiMBA programme , run jointly with Belgium's Vlerick Leuven Gent Management School, were offered positions by over 250 companies across a wide range of industries, including JP Morgan, AIG, Apple , Tata TCS and LVMH. With tuition and living expenses in these 18-month programmes at less than half the US equivalent, these schools are opening other career doors, rather than closing them.

As might be expected , a growing number of Western business schools are responding to opportunities in the region by setting up their own campus or teaching location . INSEAD, Chicago Booth and ESSEC are now well established in Singapore, Western Ontario-Ivey has made a second home in Hong Kong, HEC Paris has entered the Beijing market, and Duke University's Fuqua is developing a campus in Shanghai. Such expansion provides these schools with their own direct access to Asian MBA recruiters, offers students a handson Asian learning experience, and provides faculty research and case study opportunities in the world's most dynamic regional economy.

Times of India

Enter the Dragon

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