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Bw-online: UMich's Admissions Director
Recruiters have long been enchanted with graduates of the University of Michigan Business School. Praise from CorporateAmerica for everything from the financial acumen to the technological skill of Michigan MBAs helped land the school at No. 8 in BusinessWeek's latest B-school rankings. Kris Nebel, director of admissions at MBS since 1999, spoke recently with BusinessWeek Online reporter Brian Hindo about application trends, new essay questions, and the Supreme Court'sdecision on Michigan's undergraduate and law-school admissions policies. Here are edited excerpts of their conversation Q: How has the application atmosphere changed since the Internet bubble burst? A: In the late '90s, it was a no-brainer: "I'm going to go get an MBA and I'm going to make great money." Now, youreally have to step back and think about it. "What am I trying to get from this, and does this make sense? What do I want,and how do I position myself for it?" So I think applicants are more thoughtful -- or should be. We're expecting that.
Q: Can you tell me about application volume this year? A: Sure. The Graduate Management Admissions Council did an application-trends survey that showed volume down 10% to 30%around the country. We were around 13% to 15% down this year. Granted, that's off a record high the year before. So keepthat in context. And we still saw applicants of amazing quality, just fewer than last year.
Q: Despite the dip, the MBA is as popular, historically, as it has ever been. Do you foresee any change from top MBAprograms in response to that? A: Some smaller schools have started to increase enrollment, but I don't know if it's tied directly to that. Michigan's strategy is to deliver a highly customized, hands-on program. And we can't mass produce this for 800 or 900 students. So, at least in the short term, I see us sticking with our class size of about 420 to 430 and maintaining the high level of opportunity that we provide.
Q: Are you hearing concerns about the job market from applicants? A: I think that's on everybody's mind, and probably contributed to the decline of MBA applications across the country. But we saw placement rise 10% this year vs. last, which I think is a bit of a surprise.
We don't know how everyone's doing across the country yet. But my counterpart, Career-Services Director Al Cotrone, is inpretty close contact with most of the other top schools. Indications are that the number of [corporate recruiter] interview slots is up for next fall. We're seeing that especially with the top 30 companies that recruit at Michigan -- they're increasing their presence on campus.
My guess is that these companies are starting to cut back on the number of schools they go to, so they focus more onschools they keep on their recruiting schedule. We're clearly not where we were in the late '90s or early 2000, but we'reon an improving trend.
Q: Can you tell me a little bit about the composition of the class? Where do most of the people come from? A: Oh, all over. Two of our biggest cities are New York and San Francisco. It doesn't change much year-to-year. Closeto 25% come from the Northeast and Mid-Atlantic, 25% from the Midwest, about 10% to 15% from the West Coast, and then amixture of everything else. This year, we're probably going to be about 27% international.
Q: Is that international percentage down from previous years? A: Yeah. In the past couple of years, it has bounced around a bit. When I started in 1999, I think we were at 27% or28%. Then, we got up to almost 32%. We've been hovering around 30% the past two years.
We saw a little bit of the visa issue for students coming from Beijing. We lost some of our Chinese students who weren't able to get visas. We still very much want to maintain a global class -- I think the decline is just a reflection of someof the visa issues and normal application trends.
Q: Have visa issues arisen in other countries, as well? A: No. We had one issue come up with Russia, but in working with some of our contacts there we solved that problem. Itreally was just China, and Beijing specifically. Shanghai was fine.
Occasionally I'll talk to some other schools and they'll run into problems in India or in Eastern Europe.
Q: Are people, especially from other countries, less willing now to incur the cost of the MBA? A: It's hard to say, because within the international population, applicant volume is still very high. There are somany more students than we have places. So is there a shift in the international pool toward more well-off students, whocan afford the education? That could be. We do have a guaranteed loan program through CitiAssist. Students are guaranteed funding, so that cost isn't an issue. Of course, they need to repay that.
Where the challenge comes is that it's harder for international students to stay in the states after graduation. That's afactor. And we've been doing some things to help them. For example, we work with some of our corporate partners that aren'thiring for their U.S. operations but are hiring back in Asia.
Q: Can you tell me about student interest in terms of post-MBA jobs? Are finance and consulting still the two mostpopular career paths for MBAs? A: They are, although consulting still hasn't rebounded by any means. We're seeing the slack filled in marketing andbrand management, general management, and corporate finance. Consulting is still one of the most appealing post-MBA jobs,as well as investment banking ? partially because of the salaries. But at Michigan we also see a lot of students doingnontraditional things -- going into nonprofits and a range of different companies. So, students don't just focus on who'scoming to campus, they'll build their own search with help from our career center.
About 30% or so of our students do an off-campus search, where you can target industries that might not come to campus.Entertainment is an example. We've been doing a student-run entertainment and media forum in New York City, tapping intosome of our alumni at NBC and other outlets.
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