MBA CITY MONITOR Ivan Bofarull ESADE Business School. May 2013

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1 MBA CITY MONITOR Ivan Bofarull ESADE Business School May

2 Sources of data Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 2

3 Cities, talent attraction & MBAs Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 3

4 Cities and talent attraction 50%+ of the world s population lives in cities, which generate 80% of the GDP worldwide. Emergence of global hubs: decisions increasingly made from a cityperspective (for instance, the case of the City of London, Hong Kong, Singapore, ) rather than a country or regional perspective. New highly-skilled population increasingly mobile, which increases city s competition for talent attraction and retention. As much as American cities capitalized talent mobility in the wake of the Second World War, a question looms today: which cities will capitalize on the talent mobility in the wake of the Great Recession? Singapore? Dubai? Santiago? Source: EIU, «City Hot Spots» Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 4

5 «MBA» as a signal for talent If there is a professional credential that has become a popular signal for talent, this is «MBA» Proliferation of the MBA as a credential #of business, law and medicine graduate degrees offered in the US MBA JD MD Source: AACSB and Rakesh Khurana Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 5

6 MBAs have an impact MBAs get high exit salaries and pay increasingly higher tuitions: a two-fold impact for locations Source: The Economist Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 6

7 MBAs have an impact In a 2010 joint research, Herminia Ibarra (Insead) and Morten Hansen (Berkeley) analyzed the performance of 2,000 CEOs worldwide. They researched on three factors: when they took office how much the company s capitalization grew in that period of time and finally if they had or not an MBA. Ibarra and Hansen found out that those CEOs who had an MBA ranked on average 40 places higher than those who did not have an MBA. Source: Insead Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 7

8 Does location matter for a prospective MBA? Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 8

9 The MBA City Monitor Why not predicting a city s appeal for talent with a single metric?: How many top international students are doing an MBA in your city at any time of the year? Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 9

10 The MBA City Monitor Definition of the universe and methodology for the purpose of the MBA City Monitor: The program has been ranked by the Financial Times in at least one of the last three editions of the MBA ranking Full Time general management program Enrollments, not intakes (Bloomberg Business Week school profiles) International students Urban areas, not strictly city limits (for instance: «Oxbridge» and London) Max. 2h driving distance according to Google Maps Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 10

11 The MBA City Monitor. Outputs Preliminary findings: regional trends City ranking by total international enrolled students City ranking by total international enrolled students (per 1 million citizens) Country ranking by total international enrolled students Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 11

Preliminary findings: Geotrends Finding#1: 126 MBA programs have met our criteria, from which more than half (53% combined) are taught in the US & Canada, and an additional 27% are taught

12 Preliminary findings: Geotrends Finding#1: 126 MBA programs have met our criteria, from which more than half (53% combined) are taught in the US & Canada, and an additional 27% are taught in Europe. Despite a major shift of economic power to the East, 80% of top MBA programs are still taught in the West Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 12

Preliminary findings: Geotrends Finding#2: 37,500 students are enrolled in any of these 126 programs, from which 70% of students are enrolled in US MBA programs: US schools have larger volumes.

13 Preliminary findings: Geotrends Finding#2: 37,500 students are enrolled in any of these 126 programs, from which 70% of students are enrolled in US MBA programs: US schools have larger volumes. Actually, only 6 MBA programs (all of them in the US) account for 22% of the whole global enrollment. The Big Six have enrollments larger than 1,000+ each. Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 13

Preliminary findings: Geotrends Finding#3: 17,544 students, or 50% of the total population, are international. However, diversity differs by regions. While 89.

14 Preliminary findings: Geotrends Finding#3: 17,544 students, or 50% of the total population, are international. However, diversity differs by regions. While 89.3% of the enrolled MBA students in Europe are international, US schools boast a much lower percentage (38.9%) of international students. Also, the effect of hub cities plays a role in Asia-Pacific and Middle East when it comes to attracting international students. Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 14

15 The rankings Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 15

16 The Top 10 Cities By international enrollment Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 16

17 #10. San Francisco San Jose International enrollment: 662 Total enrollment: 1,437 International enrollment per 1M: 103 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 17

18 #9. Singapore International enrollment: 669 Total enrollment: 721 International enrollment per 1M: 126 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 18

19 #8. Raleigh- Durham, NC International enrollment: 684 Total enrollment: 1,580 International enrollment per 1M: 402 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 19

20 #7. Toronto International enrollment: 815 Total enrollment: 1,284 International enrollment per 1M: 146 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 20

21 #6. Paris International enrollment: 830 Total enrollment: 902 International enrollment per 1M: 80 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 21

22 #5. Barcelona International enrollment: 857 Total enrollment: 993 International enrollment per 1M: 159 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 22

23 #4. Chicago International enrollment: 926 Total enrollment: 2,540 International enrollment per 1M: 97 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 23

24 #3. London International enrollment: 1,013 Total enrollment: 1,092 International enrollment per 1M: 68 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 24

25 #2. New York International enrollment: 1,054 Total enrollment: 2,568 International enrollment per 1M: 55 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 25

26 #1. Boston International enrollment: 1,820 Total enrollment: 3,828 International enrollment per 1M: 404 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 26

27 The top 20 cities by international enrollment Rank City International MBA enrollment Int enrollment per 1M 1 Boston 1, NY 1, London 1, Chicago Barcelona Paris Toronto Raleigh- Durham, NC Singapore San Francisco Rank City International MBA enrollment Int enrollment per 1M 11 Philadelphia Los Angeles Madrid Detroit Washington DC Shanghai Richmond- Charlottesville,VA Indianapolis Manchester Phoenix Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 27

28 The top 20 cities by international enrollment per 1M Rank City International MBA enrollment Int enrollment per 1M 1 Boston 1, Raleigh- Durham, NC Richmond- Charlottesville, VA Manchester Barcelona Toronto Indianapolis Singapore Philadelphia San Francisco Rank City International MBA enrollment Int enrollment per 1M 11 Chicago Detroit Madrid Paris London 1, Washington DC Phoenix NY 1, Los Angeles Shanghai Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 28

29 The top in Europe Rank City International MBA enrollment 1 London 1,013 2 Barcelona Paris Madrid Manchester 301 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 29

30 The top 10 countries by international enrollment Rank Country International MBA enrollment 1 USA 10,135 2 UK 1,582 3 Spain 1,377 4 Canada 1,135 5 France Singapore China 563 Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 30

31 The case of Barcelona Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 31

32 Main Outcomes Barcelona #5 in the world, #2 in Europe in intl top MBA population Barcelona accounts for 11.5% of the top MBA international students outside of the US Spain #3 in the world and #2 in Europe in international top MBA population Spain accounts for 18.5% of the top MBA international students outside of the US Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 32

33 Economic impact How much additional economic impact an MBA student makes when compared to an average visitor?

34 Economic impact: how much do avg. visitors and MBAs spend? Avg. Spending* 741/international visitor per full stay MBA Avg. Spending Living Expenses** 25,000/year Avg. Spending Tuition* 61,556 total (full program) on avg. (all schools) *Source: Turisme de Barcelona *Weighted tuition (by # of students) from ESADE, IESE and EADA combined **Taken from IESE and ESADE brochures

, 75% occupancy) MBA Annualized spending Tuition* 45,947/year avg. (500-day stay avg.) Avg.

35 Economic impact: how much do avg. visitors and MBAs spend? Annualized Spending* 40,755 (5-day stay avg., 75% occupancy) MBA Annualized spending Tuition* 45,947/year avg. (500-day stay avg.) Avg. Spending Living Expenses** 25,000/year *Source: Turisme de Barcelona *Weighted tuition (by # of students) from ESADE, IESE and EADA combined **Taken from IESE and ESADE brochures

36 Annual economic impact: The MBA student +74%

37 Annual economic impact: The MBA student 60 M of direct annualized impact in BCN

38 Annual economic impact: Spillover or multiplier effect Other indirect benefits: Some are employed in the city (5-10%) Some start up new ventures in the city (5-10%) Some will be prescriptors of the city *Taken from ESADE and IESE placement reports,

39 Action Plan: the case of Barcelona Cities like Barcelona need to capitalize this huge potential by developing specific policies targeting the MBA segment. Three examples follow: MBA Intake: Barcelona Trek MBA enrolled students: Barcelona Case Competition MBA graduating class: Barcelona Global Ambassador Card Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 39

Action Plan: the case of Barcelona Barcelona Trek Incoming MBA students would participate in a student trek to visit the city s main hotspots from the research and innovation perspective.

40 Action Plan: the case of Barcelona Barcelona Trek Incoming MBA students would participate in a student trek to visit the city s main hotspots from the research and innovation perspective. The trek would include: Centre de Regulació Genòmica Institut de Recerca Biomèdica Parc de Recerca Biomèdica de Barcelona Barcelona Supercomputing Center Institut de Ciències Fotòniques The trek would be aimed at connecting the students «brains» with the city s research hotspots likely to develop business spin-offs. Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 40

41 Action Plan: the case of Barcelona Barcelona Case Competition Enrolled MBA students would participate in a case competition organized by a local institution (say, Barcelona Global ) that would define one or more major challenges that the city is currently facing. Challenges could be defined by local companies or not-for-profit institutions. MBAs could participate in teams to find a solution to the challenge. The winning team should be awarded in some way. For instance: a scholarship to stay in the city and start-up a venture. Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 41

42 Action Plan: the case of Barcelona Barcelona Global Ambassador Card Graduating MBAs may get a gift from the city: a membership card that ties them emotionally to Barcelona. The card would say they are «Barcelona Global Amabassadors» and would include the name of the school where they graduated. The card may include some benefits for those returning to the city. Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 42

43 Action Plan: the case of Barcelona The MBA lifecycle: Intake Enrolled Graduating Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 43

44 Action Plan: the case of Barcelona Student Trek Case competition Ambassador Card Ivan Bofarull, director of Analytics & Strategy, ESADE Business School 44

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