Impact of COVID - 19 for MBA prospects and grads


tgfjp

Hello all,

Has any prospective MBA candidate thought about postponing their MBA plans in light of the Corona virus impact? I was very sure about joining the WHU MBA program in Germany until two weeks back but the lock downs in Italy, Spain, etc. and the reported possibilities of recession in Germany are making me rethink as to whether this is the right time to invest in a full-time MBA program. I'm concerned about the possible hiring freeze should the virus not be contained soon and its economic impact lasts longer.

Is it too far-fetched to think about the possible fall-outs of COVID - 19 at this time?

Wishing the best for everyone who is affected directly or indirectly by the virus!

Hello all,

Has any prospective MBA candidate thought about postponing their MBA plans in light of the Corona virus impact? I was very sure about joining the WHU MBA program in Germany until two weeks back but the lock downs in Italy, Spain, etc. and the reported possibilities of recession in Germany are making me rethink as to whether this is the right time to invest in a full-time MBA program. I'm concerned about the possible hiring freeze should the virus not be contained soon and its economic impact lasts longer.

Is it too far-fetched to think about the possible fall-outs of COVID - 19 at this time?

Wishing the best for everyone who is affected directly or indirectly by the virus!
quote
Duncan

I think the demand for talent from the top schools will be less changed than the supply of candidates. Certainly, there will be an economic slowdown, but also a lot of clearing out of failed companies, vulnerable supply chains and a lot of M&A activity. Interest rates are falling, so there are also new opportunities for MBOs and MBIs.

Right now, it seems like a great time to be raising your sights for MBA programmes, especially in the Far East and Europe.

[Edited by Duncan on Mar 15, 2020]

I think the demand for talent from the top schools will be less changed than the supply of candidates. Certainly, there will be an economic slowdown, but also a lot of clearing out of failed companies, vulnerable supply chains and a lot of M&A activity. Interest rates are falling, so there are also new opportunities for MBOs and MBIs.

Right now, it seems like a great time to be raising your sights for MBA programmes, especially in the Far East and Europe.
quote
George Pat...

Since you haven't even apply yet, time-wise I think it is safe to assume the situation will normalize long before you finish your MBA.

Since you haven't even apply yet, time-wise I think it is safe to assume the situation will normalize long before you finish your MBA.
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tgfjp

Since you haven't even apply yet, time-wise I think it is safe to assume the situation will normalize long before you finish your MBA.


I have indeed applied and have received an offer to join the program starting on August 29th. I have a little less than two weeks to pay my deposit and therefore the dilemma.

[quote]Since you haven't even apply yet, time-wise I think it is safe to assume the situation will normalize long before you finish your MBA.
[/quote]

I have indeed applied and have received an offer to join the program starting on August 29th. I have a little less than two weeks to pay my deposit and therefore the dilemma.
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George Pat...

Hmmm ok fair enough.
There are indeed many that predict global recession because of the financial impacts of all the businesses shutdown, the effective stop of tourism etc.

I'd say wait until the last day for deposit to have more data, and even ask them for an extension on the deposit deadline due to coronavirus issues.
It is very reasonable to ask for deadline extension. Even banks and taxes are all getting postponed.
There may be more information available in the following weeks.

Hmmm ok fair enough.
There are indeed many that predict global recession because of the financial impacts of all the businesses shutdown, the effective stop of tourism etc.

I'd say wait until the last day for deposit to have more data, and even ask them for an extension on the deposit deadline due to coronavirus issues.
It is very reasonable to ask for deadline extension. Even banks and taxes are all getting postponed.
There may be more information available in the following weeks.
quote
Duncan

I don't really see the dilemma about an MBA: maybe the question should be about whether a better option exists. If there is a recession, you are better able to survive it with an MBA than without it. WHU is an excellent school. However, maybe applications will be down this year and a better school might have a place for you?

[Edited by Duncan on Mar 16, 2020]

I don't really see the dilemma about an MBA: maybe the question should be about whether a better option exists. If there is a recession, you are better able to survive it with an MBA than without it. WHU is an excellent school. However, maybe applications will be down this year and a better school might have a place for you?
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Duncan

I think Manchester and Esade are realistic upgrade options from WHU.

But.. WHU has a higher salary level than HSG, that's amazing considering the high salaries in Switzerland, and Mannheim. Certainly not a bad choice.

I think Manchester and Esade are realistic upgrade options from WHU.

But.. WHU has a higher salary level than HSG, that's amazing considering the high salaries in Switzerland, and Mannheim. Certainly not a bad choice.
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George Pat...

It is 100% true that it is better to have an MBA rather than not during a crisis (or during any time for that matter)
A few more things to consider
If there is a financial crisis, it is good to not have any debt.
In times of crisis, anti-immigrant feelings rise.

Moving to germany without knowing the local language is hard enough but if you add a financial crisis in the mix, it may become too hard.
So, although I don't know -at all- if there will be a crisis, it won't hurt to wait until the last minute to have more information before committing. They won't give your spot away before the deadline ends.

It is 100% true that it is better to have an MBA rather than not during a crisis (or during any time for that matter)
A few more things to consider
If there is a financial crisis, it is good to not have any debt.
In times of crisis, anti-immigrant feelings rise.

Moving to germany without knowing the local language is hard enough but if you add a financial crisis in the mix, it may become too hard.
So, although I don't know -at all- if there will be a crisis, it won't hurt to wait until the last minute to have more information before committing. They won't give your spot away before the deadline ends.
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Duncan

Considering the rate at which interest rates are falling, I can't think of a better time to have debt.

Considering the rate at which interest rates are falling, I can't think of a better time to have debt.
quote
tgfjp

I'm unlikely to be fired from my job in India in the event of a recession but might find it extremely difficult to land a job in Germany post graduation from the WHU MBA in case of a recession - yes graduation is more than a year away and perhaps I'm overthinking stuff.

The falling interest rates should help but again, the Euro has risen about 8% in the last three weeks against the Indian rupee. ~17% of my total tuition is due by March 27 (deposit - which is not covered by Prodigy) and it just became 8% costlier for me.

I am already on an extension to make the deposit, so not sure if I will get more time. I had requested for it as my personal savings bank went bonkers 10 days ago.

I have read enough on this portal and heard enough from current and former students to be comfortable joining WHU in general and have already been learning German for a while. I was rejected by MBS anyway.

I guess I will give it a few more days to make up my mind. Thanks Duncan and George.

[Edited by tgfjp on Mar 16, 2020]

I'm unlikely to be fired from my job in India in the event of a recession but might find it extremely difficult to land a job in Germany post graduation from the WHU MBA in case of a recession - yes graduation is more than a year away and perhaps I'm overthinking stuff.

The falling interest rates should help but again, the Euro has risen about 8% in the last three weeks against the Indian rupee. ~17% of my total tuition is due by March 27 (deposit - which is not covered by Prodigy) and it just became 8% costlier for me.

I am already on an extension to make the deposit, so not sure if I will get more time. I had requested for it as my personal savings bank went bonkers 10 days ago.

I have read enough on this portal and heard enough from current and former students to be comfortable joining WHU in general and have already been learning German for a while. I was rejected by MBS anyway.

I guess I will give it a few more days to make up my mind. Thanks Duncan and George.
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Ayon

For someone whose base currency is in developing nation - like India and wants to get MBA from say US then now is not the time to buy USD as the base currency is devaluing against US Dollar.

1 USD = INR 69~70 before covid-19
1 USD = INR 74~75 after 2-3 weeks of covid-19

On the flip side, if someone whose base currency is in USD - maybe someone is on a global contract, and wants to study in say Canada then now is the perfect time it would be much cheaper

1 USD = 1.32 CAD before covid-19
1 USD = 1.39 CAD now

For someone whose base currency is in developing nation - like India and wants to get MBA from say US then now is not the time to buy USD as the base currency is devaluing against US Dollar.

1 USD = INR 69~70 before covid-19
1 USD = INR 74~75 after 2-3 weeks of covid-19

On the flip side, if someone whose base currency is in USD - maybe someone is on a global contract, and wants to study in say Canada then now is the perfect time it would be much cheaper

1 USD = 1.32 CAD before covid-19
1 USD = 1.39 CAD now

quote
+vibes

I'm unlikely to be fired from my job in India in the event of a recession but might find it extremely difficult to land a job in Germany post graduation from the WHU MBA in case of a recession - yes graduation is more than a year away and perhaps I'm overthinking stuff.

The falling interest rates should help but again, the Euro has risen about 8% in the last three weeks against the Indian rupee. ~17% of my total tuition is due by March 27 (deposit - which is not covered by Prodigy) and it just became 8% costlier for me.

I am already on an extension to make the deposit, so not sure if I will get more time. I had requested for it as my personal savings bank went bonkers 10 days ago.

I have read enough on this portal and heard enough from current and former students to be comfortable joining WHU in general and have already been learning German for a while. I was rejected by MBS anyway.

I guess I will give it a few more days to make up my mind. Thanks Duncan and George.

Hey, interesting discussion. What did you decide in the end? Did you enroll at WHU FT or not?

[quote]I'm unlikely to be fired from my job in India in the event of a recession but might find it extremely difficult to land a job in Germany post graduation from the WHU MBA in case of a recession - yes graduation is more than a year away and perhaps I'm overthinking stuff.

The falling interest rates should help but again, the Euro has risen about 8% in the last three weeks against the Indian rupee. ~17% of my total tuition is due by March 27 (deposit - which is not covered by Prodigy) and it just became 8% costlier for me.

I am already on an extension to make the deposit, so not sure if I will get more time. I had requested for it as my personal savings bank went bonkers 10 days ago.

I have read enough on this portal and heard enough from current and former students to be comfortable joining WHU in general and have already been learning German for a while. I was rejected by MBS anyway.

I guess I will give it a few more days to make up my mind. Thanks Duncan and George. [/quote]<div><br></div><div>Hey, interesting discussion. What did you decide in the end? Did you enroll at WHU FT or not?</div>
quote
ravi24

I think the demand for talent from the top schools will be less changed than the supply of candidates. Certainly, there will be an economic slowdown, but also a lot of clearing out of failed companies, vulnerable supply chains and a lot of M&A activity. Interest rates are falling, so there are also new opportunities for MBOs and MBIs.

Right now, it seems like a great time to be raising your sights for MBA programmes, especially in the Far East and Europe.


Duncan, what makes you say that it is a great time to do an MBA in the Far East and European regions? Anything specific that gives them an advantage over the more mature (MBA) market of the United States? Curious to hear your thoughts.

[quote]I think the demand for talent from the top schools will be less changed than the supply of candidates. Certainly, there will be an economic slowdown, but also a lot of clearing out of failed companies, vulnerable supply chains and a lot of M&amp;A activity. Interest rates are falling, so there are also new opportunities for MBOs and MBIs.

Right now, it seems like a great time to be raising your sights for MBA programmes, especially in the Far East and Europe. [/quote]<br><br>Duncan, what makes you say that it is a great time to do an MBA in the Far East and European regions? Anything specific that gives them an advantage over the more mature (MBA) market of the United States? Curious to hear your thoughts.
quote
Duncan

The number of applicants will fall more at the European and Asian schools, meaning that it may be possible to attend a better school in the next intake than in the last intake. Economists' models suggest a short, deep decline. That will produce a lot redundancies and realignments. At the end there will be a fast resurgence, so I expect the MBA hiring market to be very complex and active in the next few years. 

The number of applicants will fall more at the European and Asian schools, meaning that it may be possible to attend a better school in the next intake than in the last intake. Economists' models suggest a short, deep decline. That will produce a lot redundancies and realignments. At the end there will be a fast resurgence, so I expect the MBA hiring market to be very complex and active in the next few years.&nbsp;
quote
ravi24

The number of applicants will fall more at the European and Asian schools, meaning that it may be possible to attend a better school in the next intake than in the last intake. Economists' models suggest a short, deep decline. That will produce a lot redundancies and realignments. At the end there will be a fast resurgence, so I expect the MBA hiring market to be very complex and active in the next few years. 


Ah, that makes sense. Given that this is an election year in the US, and several schools now have STEM recognition, it will be very interesting to see how things pan out.

[quote]The number of applicants will fall more at the European and Asian schools, meaning that it may be possible to attend a better school in the next intake than in the last intake. Economists' models suggest a short, deep decline. That will produce a lot redundancies and realignments. At the end there will be a fast resurgence, so I expect the MBA hiring market to be very complex and active in the next few years.&nbsp; [/quote]<br><br>Ah, that makes sense. Given that this is an election year in the US, and several schools now have STEM recognition, it will be very interesting to see how things pan out.
quote
Duncan

Also, the US schools serve mostly US students while the European schools serve mostly students from outside Europe. 

Also, the US schools serve mostly US students while the European schools serve mostly students from outside Europe.&nbsp;
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ravi24

Also, the US schools serve mostly US students while the European schools serve mostly students from outside Europe. 


That's true - it's almost a diagonal image (the number of locals in US MBA schools is the number of internationals in European schools).

Although I wonder which economy will come out on top after the crisis. I mean MBAs will look for jobs after graduation and even if they get into better ranked programs, if the country's economy has no space for them, they'd find themselves in a difficult situation, whereas even if you graduate from a lower ranked school in a healthy, growing economy, you could find suitable employment opportunites. Just a thought.

[quote]Also, the US schools serve mostly US students while the European schools serve mostly students from outside Europe.&nbsp; [/quote]<br><br>That's true - it's almost a diagonal image (the number of locals in US MBA schools is the number of internationals in European schools).<br><br>Although I wonder which economy will come out on top after the crisis. I mean MBAs will look for jobs after graduation and even if they get into better ranked programs, if the country's economy has no space for them, they'd find themselves in a difficult situation, whereas even if you graduate from a lower ranked school in a healthy, growing economy, you could find suitable employment opportunites. Just a thought.
quote
Duncan

I am not sure if that is true. Imagine: Singapore is growing faster than Frankfurt but you'd be better off at the #1 school in Frankfurt than the #4 school in Singapore. 

I am not sure if that is true. Imagine: Singapore is growing faster than Frankfurt but you'd be better off at the #1 school in Frankfurt than the #4 school in Singapore.&nbsp;
quote
tgfjp

I'm unlikely to be fired from my job in India in the event of a recession but might find it extremely difficult to land a job in Germany post graduation from the WHU MBA in case of a recession - yes graduation is more than a year away and perhaps I'm overthinking stuff.

The falling interest rates should help but again, the Euro has risen about 8% in the last three weeks against the Indian rupee. ~17% of my total tuition is due by March 27 (deposit - which is not covered by Prodigy) and it just became 8% costlier for me.

I am already on an extension to make the deposit, so not sure if I will get more time. I had requested for it as my personal savings bank went bonkers 10 days ago.

I have read enough on this portal and heard enough from current and former students to be comfortable joining WHU in general and have already been learning German for a while. I was rejected by MBS anyway.

I guess I will give it a few more days to make up my mind. Thanks Duncan and George.

Hey, interesting discussion. What did you decide in the end? Did you enroll at WHU FT or not?

I managed to get my offer deferred to the cohort starting in April 2021. With the lock down in place, I wouldn't be able to get my visa stamped on time anyway. WHU has been very understanding and helpful. Deferring my admission also makes sense as I can improve my German prior to starting the program.

[quote][quote]I'm unlikely to be fired from my job in India in the event of a recession but might find it extremely difficult to land a job in Germany post graduation from the WHU MBA in case of a recession - yes graduation is more than a year away and perhaps I'm overthinking stuff.

The falling interest rates should help but again, the Euro has risen about 8% in the last three weeks against the Indian rupee. ~17% of my total tuition is due by March 27 (deposit - which is not covered by Prodigy) and it just became 8% costlier for me.

I am already on an extension to make the deposit, so not sure if I will get more time. I had requested for it as my personal savings bank went bonkers 10 days ago.

I have read enough on this portal and heard enough from current and former students to be comfortable joining WHU in general and have already been learning German for a while. I was rejected by MBS anyway.

I guess I will give it a few more days to make up my mind. Thanks Duncan and George. [/quote]<div><br></div><div>Hey, interesting discussion. What did you decide in the end? Did you enroll at WHU FT or not?</div> [/quote]<div><br></div><div>I managed to get my offer deferred to the cohort starting in April 2021. With the lock down in place, I wouldn't be able to get my visa stamped on time anyway. WHU has been very understanding and helpful. Deferring my admission also makes sense as I can improve my German prior to starting the program.</div>
quote

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