GMAC Market Intelligence Update · GMAC Market Intelligence Update. AMBA Business School...
Transcript of GMAC Market Intelligence Update · GMAC Market Intelligence Update. AMBA Business School...
GMAC Market Intelligence UpdateAMBA Business School Professionals Conference, Vienna
1 July 2019
Agenda
• Navigating GMAC’s market intelligence
• Continued trends in the MBA space
• Future trends
Recently published market intelligence
Assessment data• Profiles of GMAT Testing TY2018• GMAT Geographic Trend Report TY2018GMAC survey and topical reports • mba.com Prospective Students Survey• Preliminary Application Trends Survey 2019 • Brexit and GME in the UK• Women and the Full Time MBA• Corporate Recruiters Survey 2019
GMAT testing volumes stable over 5-year period
GMAT exams globally TY2014-TY2018
-
50,000
100,000
150,000
200,000
250,000
300,000
TY14 TY15 TY16 TY17 TY18
GMAT
Exa
ms
Deliv
ered
GMAT exam data, TY2014-TY2018. For more, visit www.gmac.com/profile.
-
5,000
10,000
15,000
20,000
25,000
TY14 TY15 TY16 TY17 TY18
GMAT
Exa
ms
Deliv
ered
GMAT exams by European residents TY2014-TY2018
YoY % change
5-yr % change
Global -3.2% -0.6%
Europe -1.5% +0.2%
Profile of GMAT Testing
The center of gravity of the global candidate pipeline is shifting east
GMAT exam data TY2009 to TY2018.
Unique GMAT examinees by world region of citizenship, TY 2009 – TY 2018
0%
25%
50%
75%
100%
TY09 TY10 TY11 TY12 TY13 TY14 TY15 TY16 TY17 TY18
Australia and Pacific Islands
Eastern Europe
Africa
Canada
Middle East
Latin America
Western Europe
Central and South Asia
East and Southeast Asia
United States
TY 09 TY 18
US 51% 34%
E & SE Asia 15% 29%
C & S Asia 13% 16%
W Europe 7% 8%
Profile of GMAT Testing
Examinees under 25 years old now account for half of global exams taken
Percentage of GMAT exams taken by age group, TY2009-TY2018
GMAT exam data, TY2009-TY2018. For more, visit www.gmac.com/profile.
0%
25%
50%
75%
100%
Perc
enta
ge o
f GM
AT E
xam
s Ta
ken
Testing Year
40 and older
31 - 39
25 - 30
Less than 25
The share of exams taken by candidates younger than 25 has grown from 40% to 51% over the last
10 years
Profile of GMAT Testing
Germany, UK and France top list of European GMAT testing by residence
GMAT exam data, TY2009-TY2018. For more, visit www.gmac.com/profile.
GMAT exams taken by European residents, TY2014-TY2018
Country of residence TY2014 TY2018 5-yr % change
Germany 4,199 4,331 +3%United Kingdom 3,553 3,769 +6%France 3,083 2,536 -18%Italy 1,348 2,304 +71%Netherlands 1,893 2,137 +13%Russia 1,455 1,189 -18%Spain 945 1,024 +8%Sweden 549 813 +48%
Profile of GMAT Testing
Top GMAT test taker pipelines in Europe
Germany UK France Italy Netherlands
Bus Masters 80% 33% 65% 72% 77%
Mean age 24 25.3 24.5 23.3 23.9
Women 37% 43% 44% 28% 38%
GMAT mean 573 597 566 569 520
Undergraduate major categoryBusiness 58% 35% 51% 50% 56%
Engineering 5% 12% 11% 7% 7%
Science 2% 9% 4% 2% 2%
Social Science 13% 25% 13% 24% 10%
Humanities 2% 4% 3% 2% 2%
Demographics of GMAT European resident examinees
GMAT exam data, TY2009-TY2018. For more, visit www.gmac.com/profile.
Profile of GMAT Testing
Who takes the GMAT exam in Europe and applies to European b-school programs?
GMAT exam data, TY2018. For more, visit www.gmac.com/profile.
Demographics of European resident examinees who sent at least one GMAT score report to a European program, TY2018
Demographics MBA programsBusiness master’s programs
% Women 35% 39%% Younger than 25 19% 82%Mean total score 621 591Undergrad major category
Business 38% 68%Social science 23% 21%Engineering 26% 6%Science 9% 3%Humanities 4% 2%
Profile of GMAT Testing
Top GMAT examinee pipelines in Asia Pacific
Country of Residence TY 2014 TY 2018 5-yr % change
China 23,311 27,806 +23%
India 42,490 52,051 +19%Taiwan, China 3,128 4,065 +30%South Korea 3,713 2,588 -30%Singapore 1,997 2,283 +14%Japan 2,591 2,182 -16%Hong Kong, SAR China 1,963 2,076 +6%Thailand 1,598 1,606 +1%Australia 1,006 1,111 +10%Vietnam 830 1,007 +21%
GMAT exam data, TY 2014 – TY 2018.
Profile of GMAT Testing
Closer look: European MBA programs
GMAT score sending to European MBA programs, by citizenship
Analysis of GMAT exam data, TY2009 and TY2018.
47%54%
28%19%
6% 9%
8% 6%
12% 12%
0%
25%
50%
75%
100%
TY 2009 TY 2018
Perc
enta
ge o
f GM
AT S
core
Rep
orts
North America
Middle East andAfrica
Latin America
Europe
Asia-Pacific Candidate type 10-yr % change
Europeans sending to MBA -58%
APAC sending to MBA -28%
-
10,000
20,000
30,000
Europeans sending to MBA APAC sending to MBA
Profile of GMAT Testing
Closer look: European business master’s programsGMAT score sending to European business master’s programs, by citizenship
Analysis of GMAT exam data, TY2009 and TY2018.
40% 44%
46%48%
0%
25%
50%
75%
100%
TY 2009 TY 2018
Perc
enta
ge o
f GM
AT S
core
Rep
orts
North America
Middle East andAfrica
Latin America
Europe
Asia-Pacific Candidate type 10-yr % change
Europeans sending to business master’s +75%
APAC sending to business master’s +84%
-
10,000
20,000
30,000
Europeans sending to business master'sAPAC sending to business master's
Profile of GMAT Testing
GMAT™ Geographic Trend Report: Testing Year 2018
Candidate Demographic
GMAT Scores Received in
TY2018MBA (%) Business
Master’s (%) Other (%)
Total GMAT exams 83,191 41.1% 57.2% 1.6%
Women 34,499 33.7% 64.7% 1.6%
Candidates younger than 25 45,656 12.6% 86.5% 0.9%
Total score <600 24,596 34.8% 62.9% 2.3%
Total score 600-690 37,948 41.3% 57.7% 1.0%
Total score ≥700 20,647 48.5% 49.5% 2.1%
Regional Trends: Western Europe
Western Europe as a Score-Sending Destination
Programs in Western EuropeGMAT Scores Received by Candidate Demographics
Programs in Western EuropeMean Total Score and Mean Candidate Age of GMAT Scores
Received
594 608 617 625 623
25.3 25.2 25.1 25.1 25.0
TY2014 TY2015 TY2016 TY2017 TY2018
Mean GMAT Total Score Mean Age
Programs in Western EuropeNumber of GMAT Score-Accepting
Programs
410
392
387
385
374
681
646
597
528
498
64
62
62
57
55
TY2018
TY2017
TY2016
TY2015
TY2014
MBA Business Master's Other
927
970
1,046
1,100
1,155
GMAT Geographic Trends Report
GMAT™ Geographic Trend Report: Testing Year 2018
Regional Trends: Western Europe
Citizens of Countries in Western Europe: Candidate Profile
Candidate Demographic TY2014 TY2015 TY2016 TY2017 TY2018
Five-Year Growth Rate
Total GMAT exams 17,835 18,321 18,988 18,569 18,572 + 1.0%
Women 5,867 6,102 6,347 6,160 6,187 + 1.3%
Candidates younger than 25 9,937 10,611 11,112 10,909 11,590 + 3.9%
Total score <600 10,424 10,541 10,594 9,901 10,297 - 0.3%
Total score 600-690 5,602 5,688 6,187 6,390 6,201 + 2.6%
Total score ≥700 1,809 2,092 2,207 2,278 2,074 + 3.5%
Citizens of Countries in Western EuropeGMAT Exams by Candidate Demographics
Citizens of Countries in Western EuropeTop Score-Sending Destinations by School Country, TY2018
Country/Region Scores Sent in TY2018
% of Total Scores Sent in TY2018
% of Total Scores Sent in TY2014
1. United States 6,320 19.5% 25.6%
2. Netherlands 4,440 13.7% 12.5%
3. United Kingdom 4,287 13.2% 12.7%
4. France 4,279 13.2% 13.9%
5. Germany 3,588 11.1% 10.1%
Citizens of Countries in Western EuropeTop Program Types, TY2018(Percentage of Scores Sent)
1.3%
1.3%
1.5%
1.6%
1.6%
1.9%
10.8%
14.1%
15.9%
24.2%
1.9%
1.9%
1.3%
1.0%
1.2%
2.8%
7.1%
16.9%
21.1%
16.5%
MBA, part time
PhD/Doctorate in Business
Master in International Business
Master in Economics
Master in Marketing
Executive MBA
Master in Finance
MBA, full time, less than 2 years
MBA, full time, 2 years
Master in Management
TY2014 TY2018
GMAT Geographic Trend Report
Among growing options, the FT MBA remains the predominant degree sought
8%11%
15%17%
22%44%45%
Hybrid/blended MBAOnline MBA
Executive MBAFlexible MBA
Part-time MBAFull-time 1-year MBAFull-time 2-year MBA
3%4%4%5%7%8%10%10%11%11%12%12%12%
17%22%
Master of Real Estate MgmtMaster of Health Administration
Master of TaxationMaster of Engineering MgmtMaster of Human Resources
Master of Supply Chain MgmtMaster of Entrepreneurship
Master of Information TechnologyMaster of Project Management
Master in ManagementMaster of Marketing
Master in International ManagementMaster of Accounting
Master of Data AnalyticsMaster of Finance
Program types considered
GMAC (2018) mba.com Prospective Students Survey. Demand for MBA and Business Master’s Programs. gmac.com/prospectivestudents.
Program types considered
MBA Only34%
BusinessMaster’s
Only19%
Both46%
The average candidate considers
3.2different
program types
mba.com Prospective Student Survey
Program Considerations
Five-Year Trend Shows Consideration Gains Among Full-Time
MBA and Emerging Business Master’s Program Types
41% 40%22% 18% 14% 12%
45% 44%22% 17% 15% 11%
Full-time 2-year MBA Full-time one-year MBA Part-time MBA Flexible MBA Executive MBA Online MBA
MBA Program Types Considered
2013 2017
7% 7% 7%3% 4% 2% 3%
10% 8% 7% 5% 4% 4% 3%
Master ofEntrepreneurship
Master of SupplyChain Management
Master of HumanResources
Master ofEngineeringManagement
Master of Taxation Master of HealthAdministration
Master of RealEstate Management
20%7% 13% 16% 10% 16%
8% 6%
22% 17% 12% 12% 12% 11% 11% 10%
Master ofFinance
Master of DataAnalytics
Master ofInternationalManagement
Master ofAccounting
Master ofMarketing
Master inManagement
Master of ProjectManagement
Master ofBusiness
InformationTechnology
Business Master’s Program Types Considered
Note: The way in which candidates were asked about the program types they are considering changed in 2017. In past survey years, candidates were asked which program categories they were considering and subsequent questions probed on specific program types for each program category selected. In 2017, all respondents were shown all program types to select from.
11
mba.com Prospective Student Survey
Prospective Student Profiles
Prospective Students Who Prefer a Full-Time MBA Program Type
62%
38%
Prospective students who prefer a full-time MBA program type have a median age of 26 and a median of three years work experience. Half were business/economics majors as undergraduates, and 44 percent majored in a STEM field. They begin considering business school a median of 12 months after completing their undergraduate education. About 1 in 5 currently own a home and are married. One in 10 have children.
50%
24%
44%
Business/Economics Humanities/Social Sciences STEM
Undergraduate Major
26median age
3median years
work experience
19% 17% 11%
own a home married have children
18
mba.com Prospective Student Survey
mba.com Prospective Student Survey 2018
Study Destinations
In Just One Year, Western Europe Gained Significant Ground on the US in Attracting International Prospective StudentsAmong prospective students with international application plans—both those who prefer a full-time MBA program type and those who prefer a business master’s program type—the percentage who prefer the US as a study destination declined between 2016 and 2017, while the percentage who prefer Western Europe increased.
The US is more likely to be preferred as a study destination compared with Western Europe because of the reputation of the educational system, better preparation for career, improved access to jobs in one’s home country, and ability to study in a country that offers English language education. Western Europe is more likely to preferred because of the attractiveness of the location and affordability of education.
Additionally, non-US citizens indicate the top three barriers affecting their decision to study in the US are tuition costs (69%), cost of living (59%), and the ability to obtain a job in the US post-business school (51%).
56%
26%47%
33%
US Western Europe
2016 2017
72%56%
24%39% 36%
18%
66%49%
17%28%
50%36%
Eduation reputation Better preparation forcareer
Improved access tojobs in home country
English languageeducation offerings
Attractiveness oflocation
Affordability ofeducation
Reason for Choosing Preferred Study Destination
US Western Europe
45%36%39% 41%
US Western Europe
Preferred International Study DestinationProspective Students Preferring Full-Time MBA Program Types
Prospective Students Preferring Business Master’s Program Types
29
mba.com Prospective Student Survey
62%45%
26%
39%
0%
25%
50%
75%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Perc
enta
ge o
f Can
dida
tes
Year
East and Southeast Asia CanadaUnited States Western Europe
≥650 Candidates With Int’l Application Plans, Preferred Study Destination
GMAC (2019). mba.com Prospective Students Survey. Data collected in 2018. For more, visit www.gmac.com/prospectivestudents.
≥650 Candidate Preference to Study in the United States by Region/Country of Citizenship
42%
34%
62% 60%
33%
69%
40%
24%
35% 34%
51%
43%
25%
56%
33%
22%
0%
20%
40%
60%
80%
Africa Canada Centraland South
Asia
E&SE Asia EasternEurope
LatinAmerica
MiddleEast
WesternEurope
Perc
enta
ge o
f Can
dida
tes
Region/Country of Citizenship
2015 2018
Preference for W. Europe grows as US declines
20
mba.com Prospective Student Survey
How has the United Kingdom’s decision to leave the European Union (Brexit) influenced your decision to study in the United Kingdom?
Brexit Wave Surveys
The biggest shift toward “no influence” has been among citizens of Asia-Pacific countries
By World Region of Citizenship
40% 38% 37%
50% 53% 57%
11% 9% 6%
Wave 1 (Dec2016)
Wave 2 (Mar-Apr 2017)
Wave 3 (Dec2018)
Americas
48% 45%38%
40% 47% 56%
11% 8% 7%
Wave 1 (Dec2016)
Wave 2 (Mar-Apr 2017)
Wave 3 (Dec2018)
Asia-Pacific
43%55% 51%
52%43%
42%
4% 2% 7%
Wave 1 (Dec2016)
Wave 2 (Mar-Apr 2017)
Wave 3 (Dec2018)
Europe (non-UK)
More likely
No influence
Less likely
Brexit and Graduate Management Education in the United Kingdom
Perc
enta
ge o
f Res
pond
ents
Topical reports and white papers
The US political climate and international student mobility choicesPercentage of non-US citizen candidates who would prefer to study in the United States, January 2012– December 2018
0%
25%
50%
75%
Jan-
11Ju
n-11
Nov-
11Ap
r-12
Sep-
12Fe
b-13
Jul-1
3De
c-13
May
-14
Oct-1
4M
ar-1
5Au
g-15
Jan-
16Ju
n-16
Nov-
16Ap
r-17
Sep-
17Fe
b-18
Jul-1
8De
c-18
5-yr avg. (45%)
2016 election
How, if at all, has the new US president influenced your decision to pursue GME in the United States?
Non-US citizens, February 2017 – December 2018
GMAC. Monthly surveys of non-US citizen mba.com registrants.
20% 21%
11% 10%
12% 13%
40% 42%
0%
50%
100%
Feb'17 Dec'18
Significantly morelikely (7)
(6)
(5)
No impact (4)
(3)
(2)
Significantly lesslikely (1)
Topical reports and white papers
Overall demand for GME stable in 2018 compared with 2017
Absolute Change Analysis Relative Change Analysis
291,830291,779-0.02%
applications in 2017
applications in 2018
change in application volume
13%
11%
16%
8%
21%
13%
17%
Perc
enta
ge o
f pro
gram
s
Relative Change in Application Volume*
Down significantly
Down moderately
Down slightly
Flat
Up slightly
Up moderately
Up significantly
N=549 N=1,087
*Up/down significantly defined as a change of 21 percent or greater. Up/down moderately defined as a change of 11 to 20 percent. Up/down slightly defined as a change of 1 to 10 percent. Total does not sum to 100 percent due to rounding.
GMAC (2018) Application Trends Survey. Available at gmac.com/applicationtrends.
Application Trends Survey
2018 recap: Strong growth outside US
Absolute Change Analysis
8.8%7.7%
3.2%
-6.6%
-12.0%
-6.0%
0.0%
6.0%
12.0%Asia Pacific Canada Europe
UnitedStates
Change in Total Application Volume
Relative Change Analysis
67% 62% 61%
32%
7%2% 9%
8%
26%37% 30%
59%
Asia Pacific Canada Europe UnitedStates
Perc
enta
ge o
f pro
gram
sProgram location
Decline
Stable
Growth
GMAC (2018) Application Trends Survey. Available at gmac.com/applicationtrends.
Application Trends Survey
Shifts in demand largely driven by international student mobility choices
Absolute Change Analysis
International Application Volume
Relative Change Analysis
28%
63%
65%
47%
19%
13%
11%
26%
53%
24%
24%
26%
United States
Europe
Canada
Asia Pacific
Percentage of programsPr
ogra
m lo
catio
n
Growth Stable Decline
International Application Volume
15.1% 16.4%
3.4%
-10.5%
-20%
-10%
0%
10%
20%
Asia Pacific Canada EuropeUnitedStates
GMAC (2018) Application Trends Survey. Available at gmac.com/applicationtrends.
Application Trends Survey
2019: Midway through the cycle, most European programs continue to see int’l growth
44%35% 35%
9% 29% 31%
46%35% 33%
Overall Domestic International
Perc
enta
ge o
f Pro
gram
s
64%
39%
61%
5%
21%
14%
31%39%
25%
Overall Domestic International
Perc
enta
ge o
f Pro
gram
s
Asia Pacific (N=54)Europe (N=97)
41% 39%31%
9% 16% 24%
50% 45% 44%
Overall Domestic International
Perc
enta
ge o
f Pro
gram
s
United States (N=588)
Relative Change in Mid-Cycle Application Volumes by Program TypeGrowth Stable Decline
GMAC (2019). Preliminary Application Trends Survey. Report made available only to participating programs.
Prelim App Trends Survey
More than half European MBA programs report growth at cycle midpoint
Relative Change in Mid-Cycle Application Volumes by Program TypeGrowth Stable Decline
GMAC (2019). Preliminary Application Trends Survey. Report made available only to participating programs.
27% 27%36%
9%18%
27%
64%55%
36%
Overall Domestic International
Perc
enta
ge o
f Pro
gram
s
57%40%
55%
5%25%
15%
38% 35% 30%
Overall Domestic International
Perc
enta
ge o
f Pro
gram
s
Asia-Pacific full-time one-year MBA programs (N=11)
Europe full-time one-year MBA programs (N=10)
26%34%
25%
3%
7%14%
71%59% 61%
Overall Domestic International
Perc
enta
ge o
f Pro
gram
s
US full-time two-year MBA programs (N=85)
Prelim App Trends Survey
Q4 Poll: 2019 hiring forecast strong overall; salaries expected to rise for most
GMAC (2019) Year-End Employer Poll Report. Available at gmac.com/corporaterecruiters.
Percentage of employers who made 2018 hires and have 2019 hiring plans, by candidate type
77%
32% 36%
78%
37% 41%
0%
25%
50%
75%
100%
MBA Master inManagement
Master of DataAnalytics
% o
f em
ploy
ers
Candidate type
2018 actual 2019 projected
Expected change in base salaries, by candidate type
24%14%
47%
40%45%
22%
34% 41%30%
0%
25%
50%
75%
100%
MBA Master inManagement
Master of DataAnalytics
% o
f em
ploy
ees
Candidate type
Decreasecompared with2018Stay the same as2018
Increase at therate of inflation
Increase abovethe rate ofinflation
Corporate Recruiters SurveyCorporate Recruiters Survey
Analytics jobs among the top positions employers plan to fill with b-school talentJob functions employers plan to place recent graduate business school hires
45%
56%
60%
61%
62%
65%
65%
69%
70%
71%
74%
Investment banking
Consulting
Operations
IT/MIS
Human resources
General management
Accounting
Finance
Marketing
Data analytics
Business development
% of respondents GMAC (2018) Corporate Recruiters Survey. Available at gmac.com/corporaterecruiters.
Percentage of employers that plan to place recent graduate business school hires into analytics positions, by industry
61%
67%
68%
70%
72%
72%
78%
78%
Nonprofit/Gov't
Energy/Utilities
Consulting
Health care
Finance/Accounting
Products Services
Technology
Manufacturing
Corporate Recruiters Survey
What skills do employers look for in new business school hires?
• Evaluate – The ability to evaluate relevant information from different sources
• Organize – The ability to organize information to see relationships and to solve multiple, interrelated problems
• Combine – The ability to combine and manipulate information from multiple sources to solve complex problems
• Synthesize – The ability to synthesize information presented in graphics, text, and numbers
Integrated Reasoning (IR) SkillsGeneral knowledge, skills, and abilities
Specific skills and attributes
• Budgeting/budget management• Excel/spreadsheets• Negotiation• Strategic planning• Project management• Entrepreneurial spirit• Promotability• Relationship management• Financial forecasting/analysis• Operations/Supply chain• Global mindset• Leadership • Organization/Time management • Adaptability/flexibility• Ability to put theory into practice
• Problem solving • Quantitative tasks• Data analysis and interpretation • Comprehension and logic• Listening• Written communication • Oral communication and
presentation • Managing self• Working with others • Coachability and reflection
GMAC (2018) Corporate Recruiters Survey. Available at gmac.com/corporaterecruiters.
Corporate Recruiters Survey
Skills employers most frequently require from b-school hires
Skills employers most often say are difficult to find in b-school hires
Skills employers most often say are both required and difficult to find
78%
80%
81%
82%
85%
86%
86%
87%
89%
93%
Organize (IR)
Writtencommunication
Comprehension andlogic
Evaluate (IR)
Organization/timemanagement
Adaptablity/flexibility
Listening
Problem solving
Manage self
Working with others
24%
24%
24%
25%
25%
25%
29%
32%
43%
44%
Relationship management
Data analysis andinterpretation
Adaptability/flexibility
Evaluate (IR)
Ability to put theory intopractice
Strategic planning
Problem solving
Leadership
Organize (IR)
Combine (IR)
31%
31%
32%
32%
32%
37%
44%
48%
52%
55%
Problem solving
Ability to put theory intopractice
Data analysis andinterpretation
Negotiation
Global mindset
Entrepreneurial spirit
Strategic planning
Leadership
Organize (IR)
Combine (IR)
What skills do employers look for in new business school hires?
GMAC (2018) Corporate Recruiters Survey. Available at gmac.com/corporaterecruiters.
Corporate Recruiters Survey
Most alumni agree their GME was personally, professionally, and financially rewarding
% agree: My GME was rewarding…
Personally
Professionally
Financially
93%
95%
94%
2016-17 Full-time MBA
Full-time MBA
Overall
88%
90%
89%
2016-17 Full-time MBA
Full-time MBA
Overall
70%
79%
73%
2016-17 Full-time MBA
Full-time MBA
Overall
GMAC (2018) Alumni Perspectives Survey. Available at gmac.com/alumniperspectives.
Alumni Perspectives Survey
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