PlenaryVI Wu

Slide1: 

China’s Evolving Role as a Regional and Global Providers of MBAs Changqi Wu Associate Dean Guanghua School of Management, Peking University

Development of MBA Education: 

Development of MBA Education In 1979, China embarked its economic reform and open-door policy. Professional management education was brought into the state education system. Starting from early 1980s, China sent its first group of students abroad to study MBA. In 1991, the state educational authority formally approved 9 universities to offer MBA degrees on an experimental basis. In 2004, the experimental phase ended, by then, there were 89 MBA programs.

Rapid Growth of MBA Education: 

Source:National MBA Education Supervisory Committee Unit:person Rapid Growth of MBA Education

Driving Forces behind the Growing Demand: 

Driving Forces behind the Growing Demand Economic growth and marketization of the economy competitive pressure on enterprises SOEs: over 200,000 Foreign invested enterprises: 400,000 Privately owned enterprises: 10,000,000 Globalization Post-WTO era and further opening-up China’s domestic economy and overseas expansion of China’s enterprises China’s export is above 40% of its GDP, Chinese companies start venturing overseas. Rising educational level of the workforce Enrollment number in colleges is now over 4 millions, among them, 20% major in economics and management Institutional changes WTO requirement

Guanghua School of Management, Peking University: A Case Study: 

Guanghua School of Management, Peking University: A Case Study The School was built upon the Department of Economic Management and Center of Management Science at Peking University, both established in 1985. With US $ 10 million donation, it changed its name into Guanghua School of Management in 1994. In the same year, it started its MBA program with 30 plus faculty In 1997, it established a collaborative relationship with Kellogg School of Management, Northwestern University Now the Guanghua School of Management has a faculty of 100, majority of them have PhD degrees from prestigious universities overseas. Faculty’s research results are published in internationally recognizable refereed journals Each year, the School admits 150 UG students, 420 MBAs, 300 EMBAs, 120 MSc students, and 40 PhD students The School has established its IMBA Program and exchanges MBA students with 20 plus international b-schools.

Current Status of MBA Education in China: 

Current Status of MBA Education in China Reflecting China’s feature as one of the largest emerging markets, MBA education in China also carries the similar features of an emerging market. Rapid growth in demand and plenty of opportunities Uneven qualities of education service providers and different standards Mix of the state and non-state education providers Weak institutions and infrastructure

Fragmentation of MBA Market: 

Fragmentation of MBA Market Nature of education providers programs provided by business schools affiliated to the state universities dominate the market. Joint programs with foreign universities emerging as a unique segment of the market Non-state B-schools and company specific programs Regional differences Full-time, part-time and executive MBA programs

Executive MBA Programs in China: 

Executive MBA Programs in China Pilot EMBA programs were launched at 30 universities in 2002 Basic qualifications of applicants Bachelor’s degree or above; At least 8 years of work experience, with a minimum of 5 years experience in management position Admission criteria: University organized examination interview plus written test Format of the program Two-year program, intensive courses taught once a month

2. Institutional Features : 

2. Institutional Features Market entry restrictions and regulatory structure Ministry of Education and Academic Degree Office under the State Council supervise the education sector. The National MBA Education Supervisory Committee (est. in 1994) Missions of NMESC: 1) Guide and coordinate national MBA education; 2) Promote the development of MBA education; 3) Strengthen links between MBA education and industries; 4) Facilitate international exchanges and collaborations. Functions of NMESC 1) Advise the Ministry of Education on policies about MBA education 2) Stipulate common standards and regulations 3) Admission exam reform 4) Evaluation

Other Features of Institution: 

Other Features of Institution National MBA entrance examination - Written examination - GRK: English and Comprehensive Thesis requirement Lack of clear guidance and enforcement of regulations. Shortage of qualified faculty hinders the health growth of the market.

3. Opportunities and Challenges: 

3. Opportunities and Challenges Strong demand for management skills on the back of rapid economy growth Increasingly competitive environment with a large number of business education providers in China Regulatory regime hinders the development of MBA education market in China and new measures are to be taken to raise the standard.

Opportunities and Challenges: 

Opportunities and Challenges Corporations need well-trained MBA students. P&G’s initiative at Guanghua’s School of Management They are not as satisfied as we would like about the quality and attitude of current MBA graduates. Ma Yun, CEO of Ali Baba, fired all his MBAs with in a year. Brands of local schools are largely based on the parent universities. Local contents are increasingly important.

Opportunities and Challenges: 

Opportunities and Challenges When domestic B-schools are raising their quality, foreign B-schools’ interests in the market also go high. The regulatory regime calls for the joint program with local institutions. Students and corporations are better informed now, hence, are more selective when more and more programs are offered. Contents issues, global versus local Language issues Classroom delivery matters.

Alternative for Business Educators: 

Alternative for Business Educators A large number of students go abroad to earn their MBAs Each year, the number is about 120,000. MBA is an internationally recognizable degree. Accreditation is an important issue to those who wants to serve the growing market in China by staying away from China. That calls the regional and global educators to reduce the hurdles in their home countries.

General versus Specialized MBAs: 

General versus Specialized MBAs The competitive pressure in the MBA education market in China raises a debate among the MBA educators. Some business schools offer specialized MBA programs, such as luxury goods, pharmaceutical industry and real estate sectors and call it a trend in China’s MBA education. Argument for specialized MBA programs A good program must be able to show its uniqueness. Argument against the specialized MBA programs: too narrow a scope and too specialized a program may hinder the health development of MBA market because it limits the development of management skills and their mobility.

Looking into the Future: 

Looking into the Future China will be an important MBA market in a foreseeable future. The shortage of the well trained managers provides a lot of opportunities for international business educators. MBA education and business education in general call for a careful study of the market and its institutional features and explore other alternatives.