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The Graduate Management Admission Council®

Global trends in management education

Sangeet Chowfla, President and CEO

Global HR forum

Seoul, 6th, Nov 2014

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Who We Are GMAC is a global organization of business schools providing services to 6000 programs in 2100 schools worldwide

Our Vision

GMAC will be the global leader in connecting talent and aspiration with opportunity.

Our Focus Areas

Advocate for graduate management education and its value to individuals and society.

Grow and diversify the candidate pool— globally and regionally.

Develop assessments to meet global management education needs.

Extend the value to schools of our products, services, and industry knowledge.

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Over 10 million students

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GMAT Exams Taken by Testing Year GMAT volume hit records during recessions of 1981, 1991, 2002, and 2009. In 2012, GMAT volume reached a new high before the launch of Integrated Reasoning.

Pre

-IR

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Connecting Talent & Aspiration with Opportunity

Connect

Fill

Convene

Find

Understand INDUSTRY PROFESSIONALS

SCHOOLS

CANDIDATES

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The GME market is…

Big Global Diverse

6

Nearly 7 million STEM-B graduates with 1 million management admission tests annually

6.7m graduate with Bachelor degrees1

2.7m can speak English2

~1m GME admission tests are taken

1 Bachelor degrees in Business, Science or Engineering; GMAC estimate based on UNESCO data 2 Estimates based on HE system language and official languages; default value is 10%

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Regional GMAT Trends

Testing by residents in Asia and the Pacific represented 35% of global testing in TY2014, up from just 16% in TY2000.

Source: GMAT trends by testing year and region of residence.

Americas

AsiaPac

EMEA

2000 2005 2010 2014E

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50 253 370 573 735 750 965 1,041 1,303 1,370 1,809 2,426 2,739 3,231 3,479

5,249 6,670

8,087 8,861

16,248 16,347

19,975 32,407

35,549 80,145

Masters in Educational LeadershipMasters in Communications

Masters in Engineering ManagementMasters in Entrepreneurship

Masters in Real EstateMasters in Hospitality

Masters in Health AdministrationMasters in HR, Ind. Relations, or Org. BehaviorMasters in Public Admin. or Public Policy Mgt.

Masters in Supply Chain Mgt, Logistics, or Ops.Masters in International Business

PGD - 2yearMasters in Economics

Masters in ITMasters in Marketing

PhD in BusinessMBA, Distance or Online

EMBA, 2 YearsPGD - 1 year

Masters in Business or ManagementMasters in Finance

Masters in AccountingMBA PT

MBA FT 1-YearMBA FT 2-Year

Big | Global | Diverse Individuals Sending GMAT Scores, TY 2014

Source. GMAT testing data. Programs shown in red if the smoothed ‘12/’13 figure (to adjust for IR) is less than the ’09 figure.

Use this format to call attention to a quote from a prominent member, executive, or thought leader regarding a particular topic.

Insert Author Name Here Position Title

Company Title

Use this format to call attention to a quote from a prominent member, executive, or thought leader regarding a particular topic.

Insert Author Name Here Position Title

Company Title

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GMAT Pipeline Trends

Younger Candidates

Women

Specialized Masters

Global Trends ‘10 to ‘14

Younger than 25 42% 48%

Women 40% 42%

Scores Sent 28% 34%

Source: Unique GMAT examinees and scores reports sent.

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37%

63%

36%

64%

16%

37%

47% 49% 51%

68%

32%

46%

32%

22%

Women Men < 25 25+ 0 1 to 3 4+

Gender Age Years of Work Experience

MBA Degrees Non-MBA Business Masters Degrees

Unique Examinees Sending Scores in TY2014 by Degree Type

Note: Unique GMAT examinees sending scores by program group 3 classification

Distinct Pipelines

TY2014 Scores sent to specialized masters degrees by citizenship

• Europe: 52% • Asia-Pacific: 39% • Middle East & Africa: 19% • North American: 18% • LATAM: 13%

Only 15% of examinees sent scores to both MBA and specialized masters programs.

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More Women in Asia % Women among GMAT Examinees

43% 39% 38% 36% 35%

49%

38% 37% 39% 35%

Asia-Pacific North America Europe Middle East-Africa

LATAM

Region of Citizenship

TY2010 TY2014

Regional Variation – APAC Example

More Women: China (66%), Vietnam (59%) | Fewer Women: India (28%), S. Korea (33%)

Source: GMAT® Unique Examinees by Citizenship

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Program Gender Splits

0%

10%

20%

30%

40%

50%

60%

70%

80%

UK India Brazil Germany Korea US Canada France Taiwan China

% W

om

en

Citizenship

Unique Examinees Sending Score Reports by Program Type and Citizenship

MBA Specialized Masters

Specialized masters programs tend to have a higher share of women submitting GMAT score reports.

Source: TY2014 GMAT Testing Analysis – All Scores

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Foreign Students

3%

59% 67%

82% 85%

97% 99% 99% 100% 100%

US Canada UK India Israel China Korea Japan Brazil Taiwan

Citizenship

Percent of Score Reports Sent Outside Country/Region of Citizenship

Age: 25+ | GMAT Score: 650+

676k Total GMAT scores sent

in TY2013

371k Scores sent outside

country of citizenship

55% of total,

up from 46% in ‘09

Graduates Employers

21,000 alumni from 29 countries and 132 schools Satisfaction • Personally: 94% • Professionally: 90% • Financially: 77%

Alumni Engagement • Recommend program: 95% • Mentor students: 40% • Recruit for a job: 32%

2014 Findings

• Best global MBA hiring picture since before the great recession.

• Employers in all regions reporting hiring growth this year.

• MBA salary premium above MSc, MAcct, MFin & BA degrees.

gmac.com/AlumniPerspectives gmac.com/CorporateRecruiters

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Source: GMAC 2013 Graduate Management Education Graduates Survey. * Gallup survey 2014

Nearly 60% of recent GME graduates have debt…. 2-Year FT MBA programs grads had greatest average debt levels: $50k

EMBA: $41k FT MBA 1-Year: $40k PT MBA: $40k Other GME Masters: $37k

Debt Landscape

Region of Residence

% with Debt

Median Amount (US$)

Global 59% $ 45,000

Central & South Asia 67% $ 30,000

United States 65% $ 50,000

Canada 63% $ 50,350

Latin America 58% $ 27,000

Middle East/Africa 47% $ 39,374

Europe 41% $ 46,410

East Asia & Pacific Islands 38% $ 33,900

Debt Consequences • Double-debt calculations • Less likely to start a business* • Less likely to be “thriving”*

GME Debt by Region of Residence

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000

Debt Fueling Disruption?

• #1 reservation of today’s prospects: money & debt1

• Nearly 60% of global GME graduates have debt2

• 65% of US graduates with it average $50k “double debt”

For-Profits Rebranding Online Redefining Online

University of Phoenix graduates 10,000 GME students/year4

More than 1 million people have engaged with Wharton via its Coursera offerings.3

22% of US prospective GME students consider online MBA programs today.1

Sources: 1. mba.com Prospective Student Survey. 2. GMAC GMEGS survey. 3.WSJ “With Free Web Courses, Wharton Seeks Edge in Traditional Programs” April 2014. 4. NCES IPEDS

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“Doing is more important than knowing”

Professional Development

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Redefining Online Education

Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.

I’d characterize a MOOC as … Asia-

Pacific Europe

United States

A way to explore a personal interest 53% 59% 64%

What do today’s prospective students think?

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Redefining Online Education

Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.

What do today’s prospective students think?

I’d characterize a MOOC as … Asia-

Pacific Europe

United States

A way to explore a personal interest 53% 59% 64%

A method to gauge my interest in a topic area 44% 46% 53%

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Redefining Online Education

Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.

What do today’s prospective students think?

I’d characterize a MOOC as … Asia-

Pacific Europe

United States

A way to explore a personal interest 53% 59% 64%

A method to gauge my interest in a topic area 44% 46% 53%

A professional development tool 35% 38% 48%

© 2014 Copyright, Graduate Management Admission Council. INTERNAL USE ONLY: Do not distribute without permission from GMAC.

Redefining Online Education

Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.

What do today’s prospective students think?

I’d characterize a MOOC as … Asia-

Pacific Europe

United States

A way to explore a personal interest 53% 59% 64%

A method to gauge my interest in a topic area 44% 46% 53%

A professional development tool 35% 38% 48%

Preparation for a graduate management program 34% 25% 29%

© 2014 Copyright, Graduate Management Admission Council. INTERNAL USE ONLY: Do not distribute without permission from GMAC.

Redefining Online Education

Source: GMAC, preliminary data collected from mba.com Prospective Students Survey Jan-Apr 2014 by region of citizenship.

What do today’s prospective students think?

I’d characterize a MOOC as … Asia-

Pacific Europe

United States

A way to explore a personal interest 53% 59% 64%

A method to gauge my interest in a topic area 44% 46% 53%

A professional development tool 35% 38% 48%

Preparation for a graduate management program 34% 25% 29%

Alternative to a graduate management education 22% 15% 12%

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The Millennial Mindset

mba.com Prospective Student Survey, 2014 % of prospective students 25 & older considering online MBA programs

Region of Residence • United States: 26% • Canada: 21% • Eastern Europe: 15% • Africa: 13% • Western Europe: 9% • Middle East: 8% • Latin America: 6% • East & Southeast Asia: 5% • Central & South Asia: 5%

Source: GMAC mba.com Prospective Students Survey, 2014 Report (data by residence for those aged 25 and older)

Online MBA Demand

13 12 17 16 18

86 90 103 113

124

TY2009 TY2010 TY2011 TY2012 TY2013

Number of Online MBA Programs Receiving GMAT Score Reports

Non-US US

“Computers are not technology”

“Reality is no longer real”

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Global GME Hiring Continues to Improve

0%

25%

50%

75%

100%

MBA Master in Management Master of Accounting Master of Finance

Percentage of Employers Worldwide That Hired or Plan to Hire New Employees

2009 2010 2011 2012 2013 (Actual) 2014 (Projected)

And more… • Fewer companies report

economic challenges • Those with growth goals

are opting for MBAs

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BIG | GLOBAL | DIVERSE | RECRUITERS – LINKAGE OF GOALS AND HIRING INTENT

70%

44% 45% 44%

79%

52%

47%

51%

84%

51%

43% 39%

0%

25%

50%

75%

100%

MBA Master inmanagement

Master ofaccounting

Master offinance

Per

cen

tage

of

Co

mp

anie

s P

lan

nin

g to

Hir

e in

20

14

2014 Hiring Profile, by Corporate Goals and Degree Type

Overcome Challenges Improve Growth

-0.15

-0.1

-0.05

0

0.05

0.1

0.15

Overcome challenges Expand /Grow

Correlation of hiring intent and primary business goal

MBA MiM Ma/c Mfin

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40%

57%

64% 61% 60%

2010 2011 2012 2013 2014

% of job seeking MBA students with a job offer by march of grad year

FT 2 yr MBA

70%

64%

55%

67% 70%

73%

80%

2008 2009 2010 2011 2012 2013 2014

Change in salaries amongst grads with job offers (pre to post degree)

% salary increase

Stability in Full-Time 2-Year MBA job offers, overall pay growth

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BIG | GLOBAL | DIVERSE | APPLICATION TRENDS

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Thank You