The Mba Decision
Mini Case - The MBA Decision
1. How does Ben’s age affect his decision to get an MBA?
Ben’s age is a very important factor which can affect his decision to get an MBA degree.
Firstly, Ben is now 28 years old and expects to work for 40 more years. So he has an expected work life of 68 years. So the earlier he gets an MBA, the better for him. For example: probably it won’t benefit him much if he decided to get an MBA at the age of 60. No one would hire him as an investment banker even if he had an MBA that time.
Secondly, getting an MBA degree will cost Ben a lot of money. Currently at the age of 28, he already has a job experience of around 6 years. This job allowed Ben to have a savings account with enough money to cover the entire cost of his MBA program. If he wanted to start the MBA at the age of 23, probably he would not have that amount of savings.
Considering these factors, I believe that Ben’s age has an important role to play in his decision to get an MBA.
2. What other, perhaps non-quantifiable factors affect Ben’s decision to get an MBA?
There might be several other non-quantifiable factors that can affect Ben’s decision to get an MBA. For example, neither school will allow its students to work while enrolled in its MBA program (other than internship). So, there won’t be any cash inflows for Ben while he will be doing his MBA as he has to leave the current job. If Ben was too much dependent on his ‘current income’ flow (day-to-day needs, family needs, other obligations), then he will rethink this decision.
Ben has certain expectations about his salary level and expected growth of salary once he finishes his MBA. But there is inherent uncertainty/risk in these expectations. Due to economic downfall or recession, the salary level might be very low than he expected. Ben even might not get a new job after he completes the MBA program after one or two years.
3. Assuming all salaries are paid at the end of each year, what is the
1. How does Ben’s age affect his decision to get an MBA?
Ben’s age is a very important factor which can affect his decision to get an MBA degree.
Firstly, Ben is now 28 years old and expects to work for 40 more years. So he has an expected work life of 68 years. So the earlier he gets an MBA, the better for him. For example: probably it won’t benefit him much if he decided to get an MBA at the age of 60. No one would hire him as an investment banker even if he had an MBA that time.
Secondly, getting an MBA degree will cost Ben a lot of money. Currently at the age of 28, he already has a job experience of around 6 years. This job allowed Ben to have a savings account with enough money to cover the entire cost of his MBA program. If he wanted to start the MBA at the age of 23, probably he would not have that amount of savings.
Considering these factors, I believe that Ben’s age has an important role to play in his decision to get an MBA.
2. What other, perhaps non-quantifiable factors affect Ben’s decision to get an MBA?
There might be several other non-quantifiable factors that can affect Ben’s decision to get an MBA. For example, neither school will allow its students to work while enrolled in its MBA program (other than internship). So, there won’t be any cash inflows for Ben while he will be doing his MBA as he has to leave the current job. If Ben was too much dependent on his ‘current income’ flow (day-to-day needs, family needs, other obligations), then he will rethink this decision.
Ben has certain expectations about his salary level and expected growth of salary once he finishes his MBA. But there is inherent uncertainty/risk in these expectations. Due to economic downfall or recession, the salary level might be very low than he expected. Ben even might not get a new job after he completes the MBA program after one or two years.
3. Assuming all salaries are paid at the end of each year, what is the