Daniel Bauer Managing Director The MBA Exchange

The time and energy required to gain business knowledge, to build relationships with classmates, and ultimately to earn an MBA diploma is substantial, regardless of which school you opt to attend:

* a respected local school such as CUHK or HKUST;
* a second-tier US business school such as Georgetown or the University of Southern California; or
* a globally revered b-school such as Harvard or Stanford.
So, why would a qualified applicant choose one type of school over the other? What are the relative advantages and disadvantages of each?

Local Hong Kong business schools: easier entry, but doesn't travel well

An immediate advantage in selecting this type of MBA program is that it is more liberal in its admissions policies. A Hong Kong businessperson with good credentials does not face the "ceiling" on international applicants found at most foreign schools. Furthermore, the total expense is lower, if only because there is no international travel. More importantly, if a student envisions a long-term career based in Hong Kong, this opportunity is ideal for being first in line when top jobs become available.

However, the disadvantages should also be considered. These learning environments place less emphasis on global issues and international case studies that round out a student's management perspective and abilities. Also, a local degree is less prestigious when one's company has many others who share that same distinction.

Finally, should the graduate decide down the road to work outside of Asia, the prestige and impact of a local MBA degree is diminished with every mile and time zone.

Second-tier US business schools: good content, but lower return on investment

Schools ranked in the "Second 20" can be very attractive to Hong Kong professionals who want to study in the United States. Although challenging, gaining admission as a foreign applicant at such MBA programs is not out of reach for most of those with good academic and business credentials. The course content, faculty and focus are comparable to those at many top-20-ranked US business schools. And this choice leaves the door open to leveraging one's diploma and relationships for a future outside of Hong Kong.

That said, these schools tend to have more of a regional focus than a national or international one; therefore a Hong Kong applicant has to speculate on whether the Northeastern US holds greater potential for him or her than, say, the Southwestern US.

Furthermore, the impact on one's future earning power can be significantly lower here than with higher rated US-based programs - as much as 40% lower in annual compensation for the newly minted MBA.

Elite global business schools: highest reward, highest risk

The greatest advantages here include the prestige and "bragging rights" that accrue to those who earn the coveted degree from one of these institutions. Valid or not, few would argue that a "Harvard" or "Stanford" MBA designation conveys the grand air of higher accomplishment and limitless potential. And the high proportion of graduates who become CEOs or COOs of major corporations after departing from these Ivy covered walls is undeniable.

However, there are reasons why such programs are not necessarily the best choice for HK applicants. Obviously, their lofty requirements make them by far the most difficult schools to enter. They attract the best of the best from HK, thus making the competition for a limited number of international seats even more intense.

Finally, the cost of tuition, travel and living in major urban locations - with far less opportunity than domestic students to receive financial aid - can make such an education almost impossible. What is the best choice for you?

Comparing and choosing from among local, second-tier or elite business schools should be an early step in the planning process for future MBAs. As a first step, you may want to do some research for yourself on web sites like the Business Week web site and the US News & World Report web site.

Then check your preliminary ideas with friends who are enrolled in or graduated from leading b-schools or with qualified MBA admissions consultants.

The MBA Exchange, a Chicago-based consulting firm, counsels applicants on all aspects of admission to the world's top business schools, including credentials assessment, school targeting, application strategy, essay development and interview planning. Since its establishment in 1996, the company has helped over 80% of its clients to gain admission to top MBA programs. Web site: www.mbaexchange.com

Taken from Career Times 2002/06/21