The shifting MBA. demand within the. global graduate. management education. landscape. Sara Strafino Senior Market Development Manager

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Kelley Simmons
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1 The shifting MBA demand within the global graduate management education landscape Sara Strafino Senior Market Development Manager AMBA Global MBA Conference Stockholm May 2018

2 Topics covered Introducing GMAC GMAT Testing & candidate pipeline Int l Student Mobility MBA v Business Masters

3 Who is GMAC? Which has Allowing And providing A Council of leading schools with an expertise in Admissions Global connections Breadth of Knowledge Prestigious heritage Students with a means to Stand out and be recognized Schools with Voice, Insights and a place for Collaboration

4 GMAC Assessments & Global Candidate Database 60+ years of testing expertise The GMAT Exam Other GMAC Assessments Executive Assessment NMAT by GMAC 500,000 leads GMASS

5 Serving the GME Industry Advocacy campaigns Public Policy Outreach Partnerships with leading organisations Support development of new GME markets Professional Development & Networking Events Contribute GME Research & Insights at industry conferences

6 Market Intelligence Data and research insights at every step of the student lifecycle: Geographic Trend Reports GMAT Examinee Data mba.com Prospective Student Survey Application Trends Survey Corporate Recruiters Survey Alumni Perspectives Survey Global GME Candidate Segmentation Study Topical White Papers & Research Reports Webinars

7 Topics covered Introducing GMAC GMAT Testing & candidate pipeline Int l Student Mobility MBA v Business Masters

8 More than 250k GMAT exams were delivered globally in TY2017 Total exams delivered, TY TY , , , , , , % than in TY , ,000+ GMAT exams were delivered globally in TY ,000 0 TY13 TY14 TY15 TY16 TY17 517,000+ GMAT Score Reports. GMAT exam data, TY 2013 TY 2017

region of residence, TY 2013 TY 2017 North

TY 2013: 10% TY 2017: 10% Asia-Pacific TY

2013: 2% TY 2017: 3% Middle East & Africa

9 GME center of gravity is shifting Percentage of GMAT exams taken by world region of residence, TY 2013 TY 2017 North America TY 2013: 51% TY 2017: 45% Europe TY 2013: 10% TY 2017: 10% Asia-Pacific TY 2013: 33% TY 2017: 39% Latin America TY 2013: 2% TY 2017: 3% Middle East & Africa TY 2013: 4% TY 2017: 4% GMAT exam data, TY 2013 TY 2017

10 Asia Pacific Region driving global growth GMAT exams taken by country/world region of residence, TY 2013 TY 2017 China India Rest of APAC 60, Country/region 4-yr Growth 40,000 China +26% India +35% 20,000 Rest of APAC +14% 0 TY 2013 TY 2014 TY 2015 TY 2016 TY 2017 GMAT exam data, TY 2013 TY 2017

11 Shifting GME supply: more globally ranked MBA outside the US Financial Times Global MBA rankings: world region of top 40 programs 100% North America Europe Asia-Pacific Region % 50% North America 80% 45% Europe 20% 33% 25% APAC 0% 22% 0% Financial Times, Global MBA Rankings,

12 Women are making strong gains in the candidate pipeline Total exams delivered by gender, TY 2008 TY 2017 Men Women 200, , ,000 50,000 45% of exams in TY17 were taken by women 10-yr change 5-yr change Men -8% 0% Women +17% +12% 0 TY08 TY09 TY10 TY11 TY12 TY13 TY14 TY15 TY16 TY17 GMAT exam data, TY 2008 TY 2017

13 Women are making strong gains in the candidate pipeline Representation of women in the GME applicant pool, by program type MBA programs Business master s programs 75% +1% % +8% 75% 67% 66% % 28% 29% 35% 33% 32% 40% 50% 53% 49% 50% 51% 25% 25% 0% Executive MBA Full-time one-year MBA Full-time two-year MBA 0% Master of Accounting Master in Management Master of Finance GMAC ( ) Application Trends Survey.

14 23,112 47,377 44,652 54,633 90,400 82,918 39,200 34,195 47,719 31,761 Younger candidates are contributing to the long-term growth of the candidate pipeline GMAT exams taken by age group, TY 2008 TY ,000 TY 2008 TY ,000 60,000 30, and younger yr % change +105% +22% -8% -13% -33% GMAT exam data, TY 2008 TY 2017

15 Topics covered Introducing GMAC GMAT Testing & candidate pipeline Int l Student Mobility MBA v Business Masters

16 % of programs US programs suffer from shifting demand Percentage of US programs reporting international application growth, by survey year 100% 50% 43% 44% 44% 49% 32% 0% GMAC (2017) Application Trends Survey.

17 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 US political climate impacts int l candidates 60% Percentage of Non-U.S. Citizens Preferring to Study in U.S. Monthly Survey of mba.com Registrants % Average: 44% 40% 30% US Election mba.com registrants survey. *Survey not in the field January 2017.

18 Location of programs for application Where is demand shifting to? mba.com registrants survey: Where candidates are planning to submit applications by region of citizenship among candidates who had considered studying in the US but are not planning to apply to a US program Region of Citizenship Africa (n=86) E & SE Asia/PI (n=222) Canada (n=31) Central & South Asia (n=146) Eastern Europe (n=44) Latin America (n=38) Middle East (n=26) Western Europe (n=157) Australia & Pacific Islands 10% 12% 3% 25% 2% 8% 15% 6% Canada 36% 13% 90% 36% 2% 34% 15% 6% Central & South Asia East & Southeast Asia 2% 7% 3% 25% 0% 8% 0% 3% 5% 34% 3% 18% 5% 3% 0% 8% Eastern Europe 17% 9% 0% 23% 25% 21% 12% 13% Western Europe 40% 42% 19% 32% 84% 58% 38% 87% Don t Know 6% 12% 0% 18% 5% 3% 8% 5% mba.com Prospective Student poll (February July 2017).

19 Europe, Canada make gains in int l demand Percentage of European and Canadian programs reporting international application growth, by survey year 100% Europe 100% United Kingdom 100% Canada 50% 50% 50% 43% 38% 49% 65% 67% 32% 24% 47% 56% 65% 48% 48% 38% 46% 77% 0% % % GMAC (2017) Application Trends Survey.

20 Brexit so far has had no impact on GMAT score sending to the UK Proportion of GMAT Scores Sent to Graduate Management Programs in the United Kingdom International Candidates (Non-U.K. Citizens) 15% Citizens of EU Countries Citizens of Non-EU Countries 11.3% 10.9% 10.6% 11.7% 11.3% 10% 5% 3.6% 3.7% 3.7% 3.8% 4.4% 0% TY2013 TY2014 TY2015 TY2016 TY2017 GMAT score sending data, TY 2013 TY 2017

21 Topics covered Introducing GMAC GMAT Testing & candidate pipeline Int l Student Mobility MBA v Business Masters

22 Growing Demand for business master s programs GMAT score sending, TY 2008 TY % 75% 50% 25% 0% Business master's MBA 68% 65% 64% 82% 29% 32% 33% 15% TY08 TY09 TY10 TY11 TY12 TY13 TY14 TY15 TY16 TY17 33% of GMAT score reports were sent to business master s programs in TY 2017, up from 15% in TY GMAT score sending data, TY 2008 TY 2017.

23 Growth of GMAT Scores sent to Business Masters Programs by Region Region Program Type TY2013 TY2017 Worldwide North America Asia Pacific Western Europe MBA 68% 64% Business master s 29% 33% MBA 70% 67% Business master s 27% 29% MBA 75% 71% Business Masters 22% 26% MBA 47% 42% Business master s 51% 57% GMAT Score Report Sending Data by Region and Program Type TY2013-TY2017

24 GMAT Score Reports sent by Program Type Top Program Type in TY2017 (% of scores sent) MBA, full-time, 2 years 38.7% 39.8% MBA, full-time, less than 2 years 10.1% 10.1% Master in Finance Master in Accounting MBA, part-time 8.3% 7.0% 7.8% 9.3% 7.7% 11.1% Master in Management Masters, other Post Graduate Diploma PhD or Doctorate in Business 3.4% 3.3% 2.7% 2.9% 3.0% 5.4% 4.8% 4.8% Master in Data Analytics or Data Science 0.2% 2.3% GMAT Score Report Sending Data by Program Type TY2013-TY2017 TY2017 TY2013

25 Full-time two-year MBA: Declining int l apps drives US declines US full-time two-year MBA programs reporting change in application volume, by program length Change in Application Volume, Growth Stable Decline Change in Application Volume, by Citizenship, 2017 Growth Stable Decline 46% 2% 33% 39% 5% 5% 53% 7% 64% 49% 7% 75% 4.7 Apps/seat 52% 62% 56% 40% 4% 32% 49% 3% 22% Domestic International GMAC (2017) Application Trends Survey.

26 Full-time one-year MBA: Europe, UK, E & SE Asia see growth Full-time one-year MBA programs reporting change in application volume, by program location E & SE Asia Change in Application Volume, Growth Stable Decline UK Change in Application Volume, 2017 Growth Stable Decline Europe Change in Application Volume, Growth Stable Decline 50% 45% 33% 17% 8% 52% 57% 37% 14% 24% 8% 0% 9% ND ND 50% 45% 58% 75% 10% 38% 43% 63% 86% 76% GMAC (2017) Application Trends Survey.

27 Executive MBA: Strong year, especially among European programs Executive MBA programs reporting change in application volumes, by program location US Change in Application Volume, Growth Stable Decline Europe Change in Application Volume, Growth Stable Decline 52% 57% 45% 50% 44% 60% 39% 46% 20% 10% 8% 15% 7% 15% 7% 16% 3% 32% 39% 39% 43% 49% 10% 30% 20% 15% 40% 39% 70% 77% GMAC (2017) Application Trends Survey.

28 To sum up GME supply & demand have shifted from being US-centric to global Women & younger candidates are making strong gains in the candidate pipeline US programs suffer from shifting demand Europe & Canada increase their share of international candidates Growing demand for business masters v. declining demand for the Two-Year MBA Strong demand for the One-Year MBA & the Executive MBA in Europe

29 How to access GMAC data & research Register your profile at: Sign up for our Surveys at: Contact our team for an overview of the GMAC data & research tools:

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Market Intelligence. Alumni Perspectives Survey Report 2017

Market Intelligence. Alumni Perspectives Survey Report 2017 Market Intelligence Alumni Perspectives Survey Report 2017 Contents Executive Summary... 2 Introduction.... 5 Key Findings... 6 The Value of a Graduate Management Education.... 8 Three Dimensions of Value....