Macro Realities

1
Macro Realities Micro Considerations
The Graduate Management Education Market in 2007
2
- Macro Realities Micro Considerations An
Overview- The Global Economy- Educational
Attainment - Worldwide - United States -
Demographic Trends - Increasing Female
Participation - Younger Pipeline- Changes in
the Prospective Student Pipeline - GMAT Exams
by Region- Global Talent Destinations - GMAT
Exam Score-Sending- Key Stakeholders-
Appendix Regional Classifications
Table of Contents
3

• The market for
• Graduate Management Education
• is shaped by the
• Global Knowledge Economy.

4
Todays Global Knowledge Economy ? Economic
growth integration ? Demand for educated
workforce ? Educational opportunity
attainment ? Mobility demographic shifts
driving both ? Demand ? Supply of Graduate
Management Education
5

• Economic Growth Integration ?
• Dynamic Asian markets, 5-year average economic
  growth rates
• CHINA 10
  INDIA 8

Both countries had major GROWTH in international
GMAT citizen examinees over the last 7 years.
6

• Demand for Educated Workforce ?
• Companies require more skilled talent, and
• Governments are now leveraging national
  regional efforts,
• European Higher Education Area by 2010,
• Singapore educational hub of Asia,
• Qatar Education City
• and Dubai International Academic City

7

• Educational Opportunity ?
• INDIVIDUALS have a stronger capacity to build
  WEALTH,
• which grants them OPPORTUNITY to plan finance
  INVESTMENTS
• in all goods and services, including EDUCATION.

8

• And, as workers compete for JOBS,
• EDUCATIONAL CREDENTIALS
• become even more important
• GMAT Exams Taken Worldwide
• ? 7 since 2006
• ? 15 since 2000
• 2/3 schools reported applications ?,
• interest in the MBA remains strong.

9
Worldwide GMAT Tests-Taken by Testing Year
Increased continued in early 2008

• Source GMAT Interactive Profile
• Testing Year runs July 1 through June 30
• Ex TY2002 covers the period from July 1, 2001
  to June 30, 2002.

10

• DEMOGRAPHIC SHIFTS
• the TALENT Pipeline for GME
• Future demand for GME, as indicated by GMAT
  examinee data, will likely come from students who
  are
• Increasingly International
• Younger with less work experience
• Attracted to New Destinations for study

11
Summary Macro Realities

• Global knowledge economy
• Increased demand for educated workforce
• Rise in global educational attainment
• Demographic shifts across regions

Key Question How will these economic, social,
and political conditions impact my programs
student pipeline?
12

• An additional set of
• Micro Considerations
• position schools in the marketplace
• Intense Competition for Talent
• Development across Regional Markets
• Linking Key Stakeholders

13

• INTENSE
• COMPETITION,
• War for TALENT

Talent technologically literate, globally
astute, and operationally agile.

• Critical market segments
• YOUNGER students, Millennials
• students from NEW Emerging Markets
• FEMALE students

14
INCREASE in GMAT examinees Younger than
25 TY2003-2007
? 6 in the U.S. ? 11 in Europe ? 13 in
Asia

• Source GMAT Interactive Profile
• Testing Year runs July 1 through June 30
• Ex TY2003 covers the period from July 1, 2002 to
  June 30, 2003.

15
Global Market Development
Although the MBA had its genesis in North
America, other world regions have become SOURCES
of graduate management education
Nascent
Mature
Maturing
Emerging
Developing
16
TALENT is increasingly MOBILE demographic
shifts have integrated the global workforce
17
TALENT DESTINATIONS Top 10 countries to which
ALL citizens sent their GMAT Score Reports
Source GMAC World Geographic Trend Report
2007. Based on number of score
reports received
18
LINKING STAKEHOLDERS Students Recruiters
Satisfying the diverse needs interests of
students recruiters is central to a schools
position in the marketplace.
19
LINKING STAKEHOLDERS Students Recruiters

• Students more sophisticated in selection of
  business schools AND employers
• Some MBA students expect to REMAIN in the same
  industry job
• 24 Full-time 38 Part-time
• 41 EMBA

20
Summary Micro Considerations

• War for TALENT
• Regional Development NEW destinations
• Linking STAKEHOLDERS
• Students Recruiters

Key Question How are these changes influencing
my programs talent pipeline delivery of talent
to employers?
21
Overall, GOOD NEWS for GME

• Increased HigherEd access worldwide
• Future Demand is on an Uptrend
• More options for more Mobile Talent
• B-Schools as Talent Broker between students and
  recruiters

22
View these GMAC e-reports slide sets

• Key Findings
• Education Markets and Globalization
• The War for Talent Early Career, Millennials,
  and Women
• What Key Stakeholders Value Students and
  Recruiters
• Regional Market Development and Supply-Side
  Dynamics

23
Macro Realities Micro Considerations
The Graduate Management Education Market in 2007
The Back-Up Book
24
Economic Growth and Convergence
The Global Economy
Global Economy
Global growth and integration has given
individuals a much stronger capacity to build
personal wealth, which grants them the
opportunity to plan and finance investments in
all goods and services, including education
Education Markets and Globalization
25
Economic Growth in Selected Countries
5-Year Average Real GDP Annual Growth Rate
(2002-2006)
6,621 3,308 8,862 7,826 38,165 30,237 27
,992 28,877
2006 GDP per capita
2006 GDP per capita is shown as PPP (purchasing
power parity in constant 2000 international )
Source World Bank WDI
26
Economic Growth in Asia
6,621 3,308
27,992 20,572 8,065
8,862
2006 GDP per capita
2006 GDP per capita is shown as PPP (purchasing
power parity in constant 2000 international )
Source World Bank WDI
27
Economic Growth in Europe
28,877 27,438 21,675
26,496 24,681 30,237
8,862
2006 GDP per capita
2006 GDP per capita is shown as PPP (purchasing
power parity in constant 2000 international )
Source World Bank WDI
28
Economic Growth in Latin America, Mexico, the
Caribbean
13,652 7,826 10,939
6,886 9,967 5,725 6,485
8,862
2006 GDP per capita
2006 GDP per capita is shown as PPP (purchasing
power parity in constant 2000 international )
Source World Bank WDI
29
Economic Growth in the Middle East and Africa
23,020 1,137
4,876 1,008 7,842
8,862
2006 GDP per capita
2006 GDP per capita is shown as PPP (purchasing
power parity in constant 2000 international )
Source World Bank WDI
2005 estimate
30
Economic Growth in the U.S. and Canada
30,278
38,165
8,862
2006 GDP per capita
2006 GDP per capita is shown as PPP (purchasing
power parity in constant 2000 international )
Source World Bank WDI
31
Worldwide emphasis on learning
International Educational Attainment
Higher education is a mission-critical priority
for a number of countriesThe result is that the
benefits of higher education are reaching a
broader segment of society The War for
Talent
32
Graduation Rates for OECD Countries
Source OECD, Education at a Glance 2007. Table
A.3.2 Graduation Rates for Tertiary Type-A and
Advanced Research Program Education
33
OECD Education Attainment 2005
of population that has attained at least
tertiary education
Source OECD, Education at a Glance 2007. Table
A.1.3a Tertiary Type-A and Advanced Research
Program Education
34
Increased access and participation
U.S. Educational Attainment
In the U.S., undergraduate enrollments are over
50 percent female, and women earn nearly half of
all undergraduate business degrees. Yet while
graduate schools of medicine and law have had
gender parity for many years, graduate management
programs have rarely enrolled above 35 percent
womenThe situation, however, is beginning to
show improvement - The War for Talent
35
U.S. Undergraduate and Graduate Enrollment
Gender Breakdown 2004-2005
Source National Center for Education Statistics,
Digest of Education Statistics 2006. Table 190
and 191.
36
U.S. Bachelors Degrees Conferred
Source National Center for Education Statistics,
Digest of Education Statistics 2006. Table 251.
37
U.S. Bachelors Degrees Conferred in Business
Source National Center for Education Statistics,
Digest of Education Statistics 2006. Table 283.
38
of Bachelors Degrees Conferred to Women
U.S. Bachelors Degrees by Discipline 2004 - 2005
Source National Center for Education Statistics,
Digest of Education Statistics 2006. Table 268.
39
U.S. Masters Degrees Conferred
Source National Center for Education Statistics,
Digest of Education Statistics 2006. Table 251.
40
U.S. Masters Degrees Conferred in Business
Source National Center for Education Statistics,
Digest of Education Statistics 2006. Table 283.
41
of Masters Degrees Conferred to Women
U.S. Masters Degrees by Discipline 2004 - 2005
Source National Center for Education Statistics,
Digest of Education Statistics 2006. Table 271.
42
Reasons Why Women May Not Pursue an MBA- Womens
Responses -
Source Women and the MA Gateway to Opportunity,
2000, by Catalyst and Center for the Education of
Women at the University of Michiganand Michigan
Business School
43
of Female Applicants
Law School Applicants
Source American Bar Association Applications
for ABA-approved law schools
44
of Female Applicants
Medical School Applicants
Source Association of American Medical Colleges,
Women in Academic Medicine Statistics and Medical
School Benchmarking 2004-2005
45
Rising Female Participation
Demographic Trends
Growing participation by women has been a major
driver of growth in college and university
programs worldwide. The War for Talent
46
OECD U.S. Higher Education Graduates
Female Graduates
Source OECD Online Education Database (excluding
U.S. Canada), Graduates of Tertiary Type-A and
Advanced Research Programs NCES Digest of
Education Statistics 2007, Bachelors, Masters,
Doctors Conferred
47
OECD U.S. Higher Education Graduates in
Business
Female Graduates
Source OECD Online Education Database (excluding
U.S. Canada), Graduates of Tertiary Type-A and
Advanced Research Programs NCES Digest of
Education Statistics 2007, Bachelors, Masters,
Doctors Conferred
48
Ratio of Female to Male Enrollments in Tertiary
Education
Source World Bank, World Development Indicators
(WDI)
49
Proportion of GMAT Exams Taken by FemalesTY2003
TY2007 by Citizenship
Source GMAT Interactive Profile
50
Asian Citizens Proportion of GMAT Exams Taken
by Females
Source GMAT Interactive Profile
51
European Citizens Proportion of GMAT Exams
Taken by Females
Source GMAT Interactive Profile
52
Latin American, Caribbean, and Mexican Citizens
Proportion of GMAT Exams Taken by Females
Source GMAT Interactive Profile
53
Middle Eastern and African Citizens Proportion
of GMAT Exams Taken by Females
Source GMAT Interactive Profile
54
U.S. and Canadian Citizens Proportion of GMAT
Exams Taken by Females
Source GMAT Interactive Profile
55
A Younger Pipeline
Demographic Trends
After a decade where the average age of graduate
management students increased, business schools
are beginning to see an influx of younger
applicants. The War for Talent
56
Proportion of GMAT Examinees under 25 years
oldTY2003 TY2007 by Citizenship
Source GMAT Interactive Profile
57
Asian Citizens Proportion of GMAT Examinees
under 25 years old
Source GMAT Interactive Profile
58
European Citizens Proportion of GMAT Examinees
under 25 years old
Source GMAT Interactive Profile
59
Latin American, Caribbean, and Mexican Citizens
Proportion of GMAT Examinees under 25 years old
Source GMAT Interactive Profile
60
Middle Eastern and African Citizens Proportion
of GMAT Examinees under 25 years old
Source GMAT Interactive Profile
61
U.S. and Canadian Citizens Proportion of GMAT
Examinees under 25 years old
Source GMAT Interactive Profile
62
Demand remains strong
Prospective Student Pipeline
Interest in the MBA and other graduate
management education programs continues to
grow Education Markets and Globalization
63
Worldwide GMAT Tests-Taken by Testing Year

• Source GMAT Interactive Profile
• Testing Year runs July 1 through June 30
• Ex TY2002 covers the period from July 1, 2001
  to June 30, 2002.

64
Top 10 GMAT Testing Countries TY2007
Source GMAT Interactive Profile
65
Proportion of GMAT Exams Taken, by Citizenship
Source GMAT Interactive Profile
66
Asian Citizens Change in GMAT Exams Taken from
TY2003 to TY2007
Source GMAT Interactive Profile
67
European Citizens Change in GMAT Exams Taken
from TY2003 to TY2007
Source GMAT Interactive Profile
68
Latin American, Caribbean, and Mexican Citizens
Change in GMAT Exams Taken from TY2003 to TY2007
Source GMAT Interactive Profile
69
Middle Eastern and African Citizens Change in
GMAT Exams Taken from TY2003 to TY2007
Source GMAT Interactive Profile
70
U.S. and Canadian Citizens Change in GMAT Exams
Taken from TY2003 to TY2007
Source GMAT Interactive Profile
71
GMAT Score-Sending Patterns
Global Talent Destinations
Educational preferences of international
students have not remained staticThis changing
environment has underscored the ability of new
and increasingly credible business programs to
effectively challenge traditional market leaders
in talent acquisition Regional Market
Development and Supply-Side Dynamics
72
Top 10 countries to which ALL citizens sent
their GMAT Score Reports
Source GMAC World Geographic Trend Report
2007. Based on number of score
reports received
73
Top 10 countries to which African citizens sent
their GMAT Score Reports
Source GMAC World Geographic Trend Report
2007 Based on number of score
reports receivedN/A Not available because
country not on top 10 in TY2002.
74
Top 10 countries to which Asian citizens sent
their GMAT Score Reports
Source GMAC Asian Geographic Trend Report
2007. Based on number of score
reports receivedN/A Not available because
country not on top 10 in TY2002.
75
Top 10 countries to which Chinese and Indian
citizens sent their GMAT Score Reports
Source GMAC Asian Geographic Trend Report
2007. Based on number of score
reports receivedN/A Not available because
country not on top 10 in TY2002.
76
Top 10 countries to which Canadian citizens sent
their GMAT Score Reports
Source GMAC World Geographic Trend Report
2007 Based on number of score
reports received
77
Top 10 countries to which European citizens sent
their GMAT Score Reports
Source GMAC European Geographic Trend Report
2007 Based on number of score
reports receivedN/A Not available because
country not on top 10 in TY2002.
78
Top 10 countries to which Latin American
citizens sent their GMAT Score Reports
Source GMAC World Geographic Trend Report
2007 Based on number of score
reports receivedN/A Not available because
country not on top 10 in TY2002.
79
Top 10 countries to which Middle Eastern
citizens sent their GMAT Score Reports
Source GMAC World Geographic Trend Report
2007 Based on number of score
reports receivedN/A Not available because
country not on top 10 in TY2002.
80
Top 10 countries to which U.S. citizens sent
their GMAT Score Reports
Source GMAC World Geographic Trend Report
2007 Based on number of score
reports receivedN/A Not available because
country not on top 10 in TY2002.
81
Prospective Students and Corporate Recruiters
Key Stakeholders
Both these constituent groups bring a series of
complex expectations to their interactions with
business schools, and choices made by either
group have significant bearing on the market
What Key Stakeholders Value
82
Primary Reasons for Pursuing an Advanced Degree
in Business
Source Graduate Management Admission Council
mba.com Registrants Survey, October 2006 Note
Responses add up to more than 100 due to
multiple selections.
83
What Students Consider When Choosing a Graduate
Business School
Scaled Score
Source Graduate Management Admission Council
mba.com Registrants Survey, October 2006
Numbers shown are scaled mean scores (5extremely
influential 1not at all influential)
84
Important Criteria for Choosing a Recruiting
School
of Recruiters Noting Criteria is Extremely
Important or Very Important in Choosing a
School at Which to Recruit
Source Graduate Management Admission Council
Corporate Recruiters Survey, March 2007
85
Recruiter Hiring Criteria for Business School
Graduates
of Recruiters Noting Criteria is Extremely
Important or Very Important in Selection of
Business School Graduates for a Permanent Position
Source Graduate Management Admission Council
Corporate Recruiters Survey, March 2007
86
Asia Pacific- Europe - Latin America,
Mexico, the Caribbean- Middle East
Africa- U.S. Canada
Appendix Regional Classifications
87
Asia Pacific
Australia Pacific Islands American
Samoa Australia Christmas Island Fiji Kiribati Mar
shall Island Papua New Guinea New
Zealand Palau Tonga Samoa
Asia Brunei Myanmar (Burma) Hong
Kong Indonesia Japan Cambodia Korea, D.P.R. of
(North) Korea, Rep. of (South) Laos Macau (SAR of
China) Malaysia Maldives Mongolia China, Peoples
Republic Philippines Singapore Sri
Lanka Taiwan Thailand Vietnam
Central Asia Afghanistan Bangladesh Bhutan India
Kazakhstan Kyrgyzstan Nepal Pakistan Tajikistan Tu
rkmenistan Uzbekistan
88
Europe
Eastern EuropeAlbania Andorra Armenia Azerbaijan
Bosnia-Herzegovina Bulgaria Belarus Croatia Czech
Republic Estonia Georgia Hungary Latvia Lithuania
Macedonia, The F.Y.R. of Moldova Poland Romania
Russia Slovakia Slovenia Ukraine Yugoslavia
Western Europe Austria Belgium Cyprus Denmark Fi
nland France Germany Greece Iceland Ireland Italy
Liechtenstein Luxembourg Malta Monaco Netherlands
Norway Portugal Spain Sweden Switzerland United
Kingdom
89
Middle East Africa
Africa Algeria Angola Benin Botswana Burundi Cam
eroon Cape Verde Chad Congo, Republic of
the Egypt Eritrea Ethiopia Gabon Gambia,
The Ghana Guinea Cote Divoire (Ivory
Coast) Kenya Lesotho Liberia Libya Madagascar Mala
wi
Mali Mauritania Mauritius Morocco Mozambique Nami
bia Niger Nigeria Zimbabwe Rwanda Senegal Seychell
es Sierra Leone Somalia South Africa Sudan Swazila
nd Tanzania Togo Tunisia Uganda Burkina
Faso Congo, Dem. Rep. of the Zambia
Middle East Bahrain Gaza Strip Iran Iraq Israel
Jordan Kuwait Lebanon Oman Saudi
Arabia Syria Turkey United Arab Emirates West
Bank Yemen
90
Latin America, Mexico, the Caribbean
Guatemala Guyana Haiti Honduras Jamaica Mexico Ni
caragua Panama Paraguay Peru St. Kitts St.
Lucia St. Vincent and The Grenandines Suriname Tri
nidad and Tobago Turks and Caicos
Islands Uruguay Venezuela
Antigua and Barbuda Argentina Bahamas Barbados Bel
ize Bermuda Bolivia Brazil Cayman
Islands Chile Colombia Costa Rica Cuba Dominica,
CommonwealthDominican Republic Ecuador El
Salvador Grenada
91
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industry that enables business schools to achieve
success. We are committed to assisting schools
with facts and analyses to use in their
deliberations.For your questions or comments
regarding the data, findings, or methodology used
in this information, please email
GlobalTrends_at_gmac.comAnd, visit us online at
www.gmac.com
For more information
92
The Graduate Management Admission Council
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their prospective students through a wide array
of products, services, and programs, and we are a
primary resource for information about quality
graduate management education. In addition, we
own the Graduate Management Admission Test
(GMAT) exam, the most reliable and widely used
predictor of academic success in graduate
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