What is MBA?
Businesses can be identified as a way of earning income by producing or selling products in exchange for a monetary value. The beauty of business is that it can be learnt on your own or by guidance, where an MBA or Masters of Business Administration comes into the picture. In an MBA curriculum, various aspects of a business are taught from accounting, finance, marketing, to human resources and operations which are key pillars for making or breaking any business.
There has been a debate about whether an MBA is necessary for becoming a successful person in the business. So let’s differentiate between the two answers to this question.
Yes: MBA is necessary to be successful in business.
- Understanding managerial aspect:
Most of the entrepreneurs without an MBA qualification fail to sustain or in some cases even fail to work, as they fail to understand the managerial aspect of the business; be it the finance management or handling their partners/subordinates. This void can lead a blooming business to fail in a very short period of time. Hence, an MBA program can help entrepreneurs to learn and understand the approaches through which products and people both can be managed.
- Knowledge of various tools and techniques:
Sometimes, entrepreneurs without an MBA struggle to learn and even to adopt the new techniques or tools to generate profit for the organization. An MBA graduate enters the business with a brief awareness of the tools or knowledge about product management as well as for analyzing the progress his/her business is going through.
Also, in the MBA curriculum, one learns market research which is helpful to understand the major question of “customer need”, which makes MBA much-needed criteria for becoming successful in the business.
In the MBA curriculum, participation in organizing events as well as by solving case studies and business simulation scenarios helps an individual to understand the mistakes they are committing. They also read the good initiatives taken by various organizations in the past which they can consider in the future decisions they make.
Falguni Nayar, Indra Nooyi, Prasoon Joshi, Chetan Bhagat, Shikha Sharma are some of the few names who are at the topmost positions with an MBA degree in hands and are doing wonders in the current times.
No: MBA is not necessary to be successful in business:
- MBA comes with a high amount of fees:
If we talk about admissions in any good business school, after clearing the aptitude tests and GD-PI, for completion of education a large amount of fees is to be paid which is possible for individuals who belong from wealthy backgrounds. A talented from a humble background cannot get himself/herself into the race.
Also, the business schools are starting to aim at earning more and more revenue by increasing the fees of the MBA program rather than focusing on the quality of education which might cause the MBA curriculum to turn into just a “degree” on paper.
- Difference between the theory and practical knowledge:
In an MBA program, students are given information that is dependent mostly on models and charts while in reality, the business world is majorly independent of the models. That can lead to a lack of thinking out of the box for students. Also, students are given assignments or projects with a timespan while in business on the spot thinking is something which is required in the actual market to deal with many obstacles in the business.
Many famous people in our country which includes great names like Dhirubhai Ambani and Jameshedji Tata, while on a global level Bill Gates and Mark Zuckerberg are some names who have great respect in the business industry.
MBA in current times has turned to a degree that burns a hole in your pockets. But it can be a booster in your business success rate as it makes you ready for almost 50 % of the situations which in case of not having an MBA might be difficult but not impossible. Hence, investing in an MBA degree is completely up to the individual.