What Is an MBA? Everything You Need to Know Before You Start

The MBA is a degree designed to develop leadership and strategic management skills for experienced professionals. Programs typically require at least two years of work experience. If you’re looking to switch industries, climb the corporate ladder, or even launch your own venture, it’s worth getting through this comprehensive MBA program overview.

What Does MBA Stand For?

As an acronym, MBA is short for Master of Business Administration.

It was Harvard Business School (HBS) (US), founded in 1908, that pioneered the degree using case-study methodology. Later, in the 1950s-60s, the degree expanded globally and Stanford University: Stanford Graduate School of Business and other schools started developing specialized programs. The 1980s turned out to be a period of significant expansion for the MBA as demand from the finance and consulting sectors increased. Investment banks, management consulting firms, and corporations actively recruited MBA graduates.

Today, the MBA is a premier credential for business leadership worldwide, but it has evolved to a more contemporary form that serves the needs of modern leaders. It includes different formats such as hybrid and online, offers specialized tracks in technology, sustainability, and other MBA specializations, and emphasizes practical skills like data analytics and entrepreneurship.

What Is an MBA Degree?

The MBA is a graduate-level degree designed specifically for professionals who already have some work experience. Its purpose is to equip you with the knowledge and skills needed to lead and manage in the business world. Think of it as an intensive deep-dive into how organizations operate, make decisions, and succeed in competitive markets.

While many undergraduate programs provide some foundational knowledge in business, an MBA builds on your existing experience and education. It develops strategic thinking and leadership capabilities that add a higher level of understanding of the business world.

Each curriculum is unique, but students can expect to cover several essential topics such as finance, marketing, operations, and leadership. Most programs also include courses in strategy, accounting, economics, and organizational behavior to name a few.

What differentiates the MBA from other degrees is that it works as a full package. It’s more than a specialization – it teaches students how leadership influences every aspect of business performance and vice versa.

What Is the Purpose of an MBA?

Any MBA student or alumnus will tell you that their program played a crucial role in developing important skills for the business world – MBA benefits that extend beyond the classroom. The degree is designed to enhance the leadership competencies that professionals need in order to manage teams and drive organizational success. The ability to analyze markets, operations, and competitive positioning becomes almost like second nature thanks to the preparation received during an MBA.

Along with newly improved skills come the career advancement opportunities such as MBA jobs and salaries often significantly higher than pre-MBA levels. It is not the diploma itself that impresses employers, but what graduates have to show in terms of knowledge and fresh perspectives. This personal and professional growth opens doors to executive and senior leadership positions and creates pathways to highly competitive fields.

As a qualification, the MBA further signals your commitment to lifelong learning and provides a globally recognized credential that you can rely on across borders.

Who Should Consider an MBA?

The choice of MBA programs is huge nowadays and there is something suitable for everyone out there. Still, the typical MBA candidate has at least two years of professional experience and may be aiming to grow their career, change jobs, or venture into entrepreneurship.

Many MBA aspirants decide to pursue the degree in order to achieve a big switch in their professional life – changing function, sector, or geography. In the first scenario, you might be aiming to change roles completely and become a strategy consultant after working as a marketing expert, for instance. The second option means you wish to change your industry. So, if you have been a marketing expert for the Energy sector, you might be interested in transitioning to a similar role in the Healthcare industry. Finally, you could be headed for a change of scenery with the third option by looking to relocate as a marketing professional from one country to another.

Some professionals might even go for the so-called “triple jump” and attempt all three changes at once – a challenging feat, which is nevertheless possible with the right MBA.

Other common motivations for enrolling in an MBA program among business school candidates include seeking a promotion at work, looking to increase their salary, and network building.

MBA vs. Other Graduate Degrees

An MBA program differs from other graduate degrees like Master of Science (MSc or MS) and Master of Arts (MA) mainly with its generalist approach and material covering various business disciplines to prepare you for executive positions. The focus is practical and applied, which means MBA programs emphasize real-world problem-solving and leadership development.

In comparison, a Master of Science is more suitable for people who want to specialize in a particular field – for example, data science, finance, or engineering. The focus is rather on scientific or specialized business areas, learning is more theoretical, and there is often a significant research component.

When it comes to Master of Arts degrees, they are more common in fields such as humanities, social sciences, or liberal arts fields like psychology or education. Research is not such a main aspect as in MSc degrees – instead, MA programs favor a discussion-based approach to learning.

So, in a nutshell – MA and MSc degrees offer specialized expertise that’s valuable within specific industries or technical roles. However, they do not provide the same broad leadership preparation that defines the MBA experience.

Types of MBA Programs

Depending on your specific career goals and personal circumstances, you might opt for different program formats, such as full-time, part-time, online, or Executive.

• Full-time MBA: This is the traditional choice for professionals who want the complete MBA experience. The full-time MBA duration ranges from one to two years, but participants need to be entirely committed – they can’t keep working while studying. It’s a highly dynamic journey, but it allows you to get properly immersed in the studies and networking on campus.
• Part-time MBA: If you prefer balancing between work and studies, a part-time or online format might be a good choice. Students can attend classes only during weekends or in the evenings. This prolongs the time it takes to graduate compared to a full-time program, but it is a more flexible opportunity for a busy lifestyle.
• Online MBA: Online MBAs have been gaining more and more traction for that same reason. They give participants more freedom to plan their time and conduct their classes and assignments from anywhere in the world. However, if face-to-face networking is important to you, an online MBA program might be less suitable than other formats in this regard.
• Executive MBA: More seasoned professionals who even have managerial expertise will find it useful to look into Executive MBA programs. They are designed for aspiring leaders with at least five to eight years of work experience.

Final Thoughts: Is an MBA Right for You?

An MBA is a significant investment of time, money, and effort – but for the right person, it can be transformative. If you’re seeking to advance in your current field, change industries, or improve your leadership skills, the MBA is a learning opportunity with a proven track record.

Before you commit, reflect honestly on your vision for the future. Are you ready to immerse yourself in intensive study? Do you have clear career and personal development goals? Does the investment align with where you want to be professionally? If your answers point to yes, an MBA could be the degree that takes your career and your life to the next level.