ANALYSIS OF GMAT /GMAC

GMAC – GRADUATE MANAGEMENT ADMISSION COUNCIL

GMAC  called as Graduate Management Admission Council began as an association of nine business schools

Its goal was to develop a standardized test (GMAT) to help business schools select qualified applicants.

WHAT IS GMAT ? The  Graduate Management Admission Test is a

computer adaptive test which assesses a person's analytical, writing, quantitative, verbal and reading skills in standard written English in preparation for being admitted into a graduate management program.

First administered in 1954, the GMAT exam is the premier standardized test specifically designed for graduate business and management programs. 

GMAT is used by more than 1,500 schools and 5,400 programs worldwide

GMAT is most widely used assessment for graduate management admissions and the most reliable predictor of academic success in graduate business studies

Business schools use the test as a criterion for admission into a wide range of graduate management programs, including MBA, Master of Accountancy, and Master of Finance programs

PATTERN OF GMAT

Analytical Writing Assessment

1 Topic Analysis of an Argument 30 min

Integrated Reasoning

12 Questions Multi-source Reasoning(click to reveal information )

Graphics Interpretation

Two Part Analysis

Table Analysis(Sort the table)

30 min

Quantitative 37 Questions Data Sufficiency

Problem Solving

75 min

Verbal 41 Questions Reading Comprehension

Critical Reasoning

Sentence Correction

75 min

Total Exam time 3 hours 30 min

The GMAT exam consists of four main sections—Analytical Writing Assessment, Integrated Reasoning, Quantitative, and Verbal

WHAT THEY TEST IN GMAT ? Analytical Writing Assessment Section : It consists of one 30-minute essay which tests your ability to formulate an appropriate and constructive critique of a specific conclusion based on a specific line of thinking Integrated Reasoning: Integrated reasoning is designed to measure your ability to evaluate information presented in multiple formats from multiple sources – skills you already use, and skills you need to succeed in our data-rich world.  The Verbal section: It measures your ability to

read and comprehend written material, reason and evaluate arguments, and Correct written material to conform to standard written

English.

/CONTINUED Quantitative Section:

Contains Problem-Solving and Data-Sufficiency questions which require knowledge of :Arithmetic & Elementary algebra & Commonly known concepts of geometryProblem-Solving Questions: It measures the test taker's ability to:

Reason quantitatively, solve quantitative problems, and interpret graphic data

Understand problems involving arithmetic, elementary algebra, and common geometry concepts

Evaluate the amount of information needed to solve quantitative problems

Data-Sufficiency Questions: Data-Sufficiency questions are designed to measure your ability to: Analyze a quantitative problem Recognize which information is relevant Determine at what point there is sufficient information to solve a problem

SELECTION PROCEDURE:

GMAT Score  Work experience : A prior history of leading teams by an

applicant at work is considered a very important factor by all B-schools. They generally look for an applicant who has made progress in his

career, taken increasing responsibilities, and demonstrated leadership.

Strong communications skills and a proven ability to work well in groups

B-Schools want candidates who have demonstrated an ability to work well in group setting.

Recommendations: A Recommendation from big name won’t work. A Positive letter from someone who knows who well.

Essays/Statement of purpose: It is one of the most important component of the application package.

Test of English as a Foreign Language (TOEFL ) Score.

BEFORE THE APPLICATIONApplicants should think of : Why should I take an MBA Are you a career switcher, or a career progresser? Is a jump in salary what matters most, or do you seek international experience? Is your primary goal to broaden your education and your horizons, or to develop specialist skills for career enhancement Self-assessment to identify career goals Budget and study mode Determining the criteria for your choice of school:

International reputation, Return on investment , Scholarship availability, Career placement record

Which sources should I use for rankings and information?

IMPORTANT PROFILE ELEMENTS OF B-SCHOOL : Average GMAT Score: GMAT score is the most

important element of your candidacy.  At top-tier business schools, the average score is now between 710 and 720.  But it’s not always necessary to clear that average to be accepted.

Median GPA: Business schools are not terribly concerned with your undergrad performance. The only thing that concerns them in that respect is how you did in math classes.

MBA Acceptance Rates : Acceptance rate is the best way to determine which school is the hardest to get into

Yield:  "Yield" is the percent of admitted applicants who accept the admit offer and enroll in the school as opposed to accepting an admit offer from another program.

Average Age MBA Rankings

AN INSIGHT ON GMAT TAKERS ( *SOURCE : GMAC WORLD GEOGRAPHIC TRENDS REPORT ) :

2012 witnessed the highest ever GMAT Volume in India till date.

Indian citizens, the third largest citizenship group taking the test, took 30213 GMAT 2012 exams (19 % increase)

A Report is compiled after an analysis of data collected after GMAT test and its score-sending patterns.

GMAT - most popular choice amongst Asians, with as many as 85,551 (an all-time high) taking GMAT in 2011.

47% Increase when compared with TY 2007. India ranks No. 2 citizen group for GMAT score reports

sent in TY 2011 (112,725) behind China (126,090).

GMAT TEST TAKERS FALL AGAIN IN U.S.

From the stats below we can notice in 2012, there is a decline of 10.7% GMAT Takers in US from 2009.

 The decline in the U.S. was offset by growth in East and Southeast Asia, especially China, which represents 70% of testing volume in the region

EXAM TRENDS (ALL EXMAINEES) Age Breakdown : The below bar graph

depicts that there is an increase in GMAT takers belonging to age group < 25 from TY 2008

Gender Breakdown : Clearly , The awareness has increased among female candidates which has led to more number of GMAT Takers .

UNDERGRADUATE STUDY /PRIMARY FIELD OF THE GMAT TAKERS (*SOURCE : PROFILE OF GMAT CANDIDATES BY GMAC )

People with Engineering Background were the second largest GMAT Takers followed by Commerce .

During the five-year period, there is a considerable change in Annual Growth rate only in the field of Business-Commerce and social science .

GMAT TOTAL SCORE MEANS (*SOURCE : PROFILE OF GMAT CANDIDATES BY GMAC ) :

By Undergraduate major : Overall Engineering students outperform in GMAT every year.Along with the Annual growth rate ,there is also significant improvement in their scores of people with Business-Commerce and social science background from TY 2008 .Stats about India :From the survey ,Total number of Men/Women taking GMAT has been increased. The mean score was 568 in TY 2008 has gone up to 582 in TY 2012.

ELITE GLOBAL BUSINESS SCHOOLS Elite Global business schools form an established cadre

of the world’s very best business institutions. They are targeted by a wide range of employers, both domestically, regionally and globally. Highly international, they typically admit only experienced candidates with superior GMAT scores and all-round credentials. Their name will transform the resume of any candidate. MBAs will in many cases go on to be influential business leaders, and can expect to earn top salaries upon graduation.

Of the 39 leading institutions to make the Elite Global category, 15 are from the US. The other nations with Elite Global business schools are Canada (7), UK (3), Spain (3), France (2), Singapore (2), Switzerland (2), Germany (1), Italy (1), Ireland (1), Denmark (1) and India ( IIM-A )

VARIOUS MANAGEMENT PROGRAMMES AVAILABLE WORLDWIDE

Global MBA Master of Finance : A Master of Finance (M.Fin.) is a Master's

degree designed to prepare graduates for careers in financial analysis, investment management and corporate finance.

Executive MBA (EMBA) : This programme is developed to meet the educational needs of managers and executives, allowing students to earn an MBA or another business-related graduate degree in two years or less while working full-time.

Master of Science in Management (MSM) : This is common throughout Europe and increasingly also in North America and Asia.

European Business Schools : Recently Europe has become an increasingly attractive destination for prospective business school students from around the globe. There is the simple fact that European business schools tend to be cheaper. European MBAs are better equipped to handle the global recession.

VARIOUS OTHER ENTRANCE EXAMINATIONS TO GET INTO B SCHOOL OF INDIA :

CAT (Common Aptitude Test: Score card which is valid for all IIMs and 100+ institutes.

XAT (Xavier Aptitude Test): It is valid for XLRI, XIM, S.P.Jain and GIM institutes.

SNAP (Symbiosis National Aptitude test): Valid in all Symbiosis institutes.

JMET (Joint Management Entrance Test): Valid in all IITs and NITs MH-CET (Maharashtra Common Entrance Test ): For all MBA

colleges in Maharashtra CMAT(Common Management Admission Test): For all AICTE

colleges  IBSAT (ICFAI Business Studies Aptitude Test ):  For all ICFAI

Business Schools  MICA: For Mudra Institute of Communications, Ahmedabad  IIFT: For Indian Institute of Foreign Trade, Delhi and Kolkata. A

written test for students seeking admission to International Business at the institute

NOTABLE DIFFERENCE BETWEEN THE VARIOUS TESTS : First - The difference lies in the quality of the

institution one gains entry into and hence the prospective job opportunities. The IIMs would be first choice for most aspirants but the CAT is the only gateway one has.

The second - The Difference lies in the scope of the test. For instance, XAT/JMET have limited institutes on their lists and are looking for specific profiles

.And finally- The cost and the frequency is a distinguisher as the GMAT is very expensive as compared to the rest of the tests and MAT happens four times a year.

RESEARCH ON FT(FINANCIAL TIMES) RANKINGS - INTRODUCTION

  The Financial Times (FT) is one of the world's leading business news and

information organisations. The Financial Times will help you to choose the best degree and also it evaluate

schools using their interactive rankings, brush up on important subjects of MBA. Prospective Business education students can use FT Research dating back to 1999 to

compare programmes offered by the world’s best Business schools They are publishing Six different rankings spread out over the whole year:

Global MBA Ranking (January) Masters in Finance Ranking Executive Education Ranking (May) European Master’s in Management programme Ranking (September) Executive MBA Ranking (October) European Business school Ranking (December)

FT’s Interactive Rankings tables allow users to search for a school of interest, sort by selected criteria and filter by location. Programmes can be evaluated across a wide range of criteria, including average salary after graduation, value for money and latest FT ranking 

To be Eligible : A school should be accredited by AACSB or Equis.It must have a programme that has been running for atleast four years .It must have graduated its first class at least three years before the ranking publication date.

 

FT – RANKING METHODOLOGY An FT score is calculated for each school according to the weights outlined in the key to Global Ranking and they added together to give a final score by which the schools are ranked. Key to Global rankings : Weights for ranking criteria are shown in brackets as a percentage of overall rankings Audit year (0),Salary Today (0) ,Weighted salary (20),Salary increase (20)Value for money (3),Career progress (3),Aims achieved (3),Placement success (2),Employed at three months(2),Alumni recommend (2),Women faculty(2),Women students(2),International faculty(4),International student(4),International board(2),International mobility(6) ,International course experience(3),Languages(1),Faculty with doctorates(5),FT doctoral rank(5),FT research rank(10).

OVERALL ANALYSIS OF RANKINGS BY VARIOUS PUBLICATIONS :Each ranking uses a different methodology and weights the use of different data to produce their league tables, so it is important for candidates to understand what is being measured. In overly simple terms: Forbes – does a simple calculation of ROI 5 years out

from business school. Financial Times – bases 40% of the ranking on post-

MBA salaries 3 years after graduation. BusinessWeek – emphasises the satisfaction levels of

two core stakeholders: students and recruiters. U.S. News & World – includes a survey of deans and

MBA directors, and uses GMAT scores as part of student selectivity.

The Economist – assesses the ability of the MBA to open new career opportunities, as well as the international make-up of the school

CHANGES PLANNED IN INDIAN B-SCHOOLS : A renewed focus on ethics, greater stress on environmental sustainability. Increasing global focus on environmental consciousness has made b-schools either introduce new courses or update existing ones to be green friendly . Narsee Monjee Institute of Management Studies (NMIMS), Mumbai has made the course

'Environment Management' compulsory for all its students whereas Xavier Institute of Management (XIM), Bhubaneshwar has trod the same path with their 'Environment and Sustainability' course.

XLRI School of Business and Human Resources, Jamshedpur has revamped its course 'Sustainable Development Of Corporate Strategy' to focus on the environmental impact of corporate initiatives’.

IIM Calcutta (IIM-C), for instance, has used feedback from its students and companies to plan and develop new courses .Also IIM-C plans to invite faculty from US-based business schools.

IIM Indore, on its part, has rejigged its curriculum. This academic year onwards, all the compulsory courses in PGP will be a part of the first-year syllabus, while the second year will be more elemental.

IIM Kozhikode intends to have more optional courses and less core courses. The institute plans to implement the revised curriculum from next academic year.

IIM Lucknow (IIM-L), on its part, is in the process of updating its syllabus which would reflect the new business reality and would be more issue-oriented. It will also include courses on ethics. From this academic year, it is introducing new courses and topical workshops.

IIM Bangalore, too, is reviewing its curriculum. It wants its courses help management graduates tackle future business agendas.

IIM-A, which revamped its syllabus recently, has introduced the slot system (instead of the term system) to ensure greater flexibility. The institute has also made ethics a compulsory course for the first year students

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