An MBA Slump? Not For IESE Which Is Increasing The Size Of Its MBA Intake By 20%

IESE MBA students relaxing on campus

While the full-time MBA is widely considered a “mature product” and many schools have reduced the size of their entering classes, IESE Business School in Barcelona is taking a contrarian strategy.

The school will increase the size of its fall cohort of full-time MBAs by 20%, adding a sixth section of an additional 70 students which will bring its total intake to  420.

The increase is occurring in a climate in which many schools, particularly those with smaller, unprofitable programs, are struggling to find full-time MBA students to fill their classes.

NEW SECTION FOLLOWS A SUBSTANTIAL INCREASE IN APPLICATIONS

IESE Business School Vice Dean Marc Badia

It is the first time since 2016 that IESE has added another MBA section. The school went from three sections to four in 2010. The current decision to enroll an additional section reflects a significant rise in applications at IESE, particularly from North and South America.

“The increase is so substantial we can open up a new section,” says IESE Vice Dean Marc Badia, who oversees the MBA and MIM programs at the school. “We are increasing the class by 20% and the application volume was much higher than this, with higher GMATs and a higher percentage of women right now.”

A larger graduating class also brings other benefits, besides additional tuition revenue. “The larger the size the more recruiters will come to campus and you can offer more of everything from student organizations to courses,” adds Badia. “As long as you don’t compromise quality, size is good.”

FAVORING IESE: BREXIT IN THE U.K. AND POLITICAL POLARIZATION IN THE U.S.

Badia attributes the increase in apps to both external events in the United Kingdom and the U.S. as well as the appeal of a well-established cast-study school in Barcelona that will celebrate its 60th anniversary next year.

“There are things that are favoring us,” he says. “Brexit and visas in the U.K. have probably helped us. We have had growth across the Americas from North to South. 

“One candidate told me he applied to IESE because of the election in the U.S. The person wanted a more peaceful environment. In the U.S., there are polarizing issues. People appreciate coming to Europe and not having to deal with the politics. Here we can approach the topics without this political charge.”

CONSISTENTLY HIGH RANKINGS FROM THE FINANCIAL TIMES

IESE also consistently ranks well in the annual Financial Times list of the world’s best MBA programs. This year, the school’s MBA ranked fifth, with post-MBA salary increases of 139%. IESE’s overall rank put it behind only Wharton, INSEAD, Columbia Business School, and SDA Bocconi. A year earlier, when applicants would have put the school’s MBA on their shortlists, IESE ranked even better, third best in the world. The school offers both a 15-month and a 19-month MBA program with a start date in September. Poets&Quants currently ranks IESE’s MBA as the second best outside the U.S., right behind INSEAD>

While IESE still has a few more days open until its round four and final application deadline of May 31 for the fall class, Badia expects the incoming class profile to be similar to previous years. Some 85% of the MBA students at IESE are from outside Spain, with 24% from Asia, 20% from North America, and another 20% from Latin America. Outside the 15% of students from Spain, there are an additional 16% from Europe and 5% from the Middle East.

“Percentage-wise, the class profile will be quite similar.,” Badia says. “Last year we had a smaller group from North America but this year. we are back to normal. Latin America is powerful, Brazil especially. We all know that India is one of the only places where things keep growing, but we want a diverse experience for students in their sections and on their teams.”

PLANS TO REINFORCE CAREER SERVICES STAFF TO HANDLE THE LARGER NUMBER OF STUDENTS

IESE’s MBA class profile shows the school’s students average 5.4 years of work experience. Some 35% of the class is composed of women. The GMAT “acceptance range” at IESE is 580 to 750.

Badia says the school will be able to handle the extra section within its existing plans to hire faculty but will need to “reinforce” its career services team.

“While the secular trend shows that the MBA is decreasing, the MBA will continue being relevant because it is a natural progression in a person’s career,” believes Badia. “Three years to six years after you start your career, you need to assess your journey because by your mid-30s you need to be focused on your career. Having that one or two year program is meaningful and will continue to be meaningful.”

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