Macro Realities

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Macro Realities Micro Considerations
The Graduate Management Education Market in 2007
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• The market for
• Graduate Management Education
• is shaped by the
• Global Knowledge Economy.

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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
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• 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.
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• 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

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• 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.

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• 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.

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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.

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• 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

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

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• 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

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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.

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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
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TALENT is increasingly MOBILE demographic
shifts have integrated the global workforce
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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
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LINKING STAKEHOLDERS Students Recruiters
Satisfying the diverse needs interests of
students recruiters is central to a schools
position in the marketplace.
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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

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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?
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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

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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

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GMAC provides information and data about the GME
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.comVisit us online at
www.gmac.com
For more information
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The Graduate Management Admission Council
(GMAC) is the association of leading graduate
business schools. We serve these schools and
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
business studies worldwide.
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