ROI analysis: 4 things to focus while choosing a good B-school

On average, the fees charged by the Business Schools (B-schools) in India for a two year MBA program is more than ₹16,00,000 ($23,000). While this number is a huge sum for post-graduation, many students rely on bank loans to help with their finances, hoping to pay it after their post-graduation. Considering this, a business-minded student will definitely make a return-on-investment (ROI) analysis about his investment.

How and why is ROI calculated?

Students pursuing an MBA focus so much on ROI while choosing their B-school. The first and foremost reason is that every business before investing its money checks if the investment made would yield profit in the future and would help the business grow. Similarily a Return on Investment analysis on investment in MBA is neccessary.

Education journals, magazines, and the institute’s website provide the mean and median salaries provided by the corporates during the placement session. ROI can be calculated by comparing the mean salary offered by the corporates with the fees of the 2-year program levied by the B-school.

Another reason is that an MBA also provides students with an intangible asset, a post-graduate degree in business. This increases one’s overall market value which should also be considered while calculating the ROI.

A B-school alumni network is one major thing to consider while calculating the ROI. During the MBA program, students get to connect with the college alumni, who today, work with some of the most reputable firms. The alumni network is very helpful for students, especially in today’s environment, which is more competitive than ever.

During the MBA program, prominent and reputed B-schools offer a variety of intra-school and inter-school competitions. This gives new opportunities to the students to experience and use their management skills in real lifelike situations. It also offers a little taste of the corporate life that lies ahead of them. This is one of the most overlooked reasons while the calculation of ROI and choosing an appropriate B-school.