MBA in times of recession: To do, or Not to do
Recession is all set to hit across the globe , also there is an imminent liquidity crunch in the world. In this globalized world, Indian business environment is always going to get affected negatively in terms of growth.
So instead of looking for better job opportunities this seems to be the right time to go back to School to fine tune your skill sets. Thus, here is a small write up for the aspirants, on behalf of team FUNDAMAKERS, which is always committed and dedicated toward providing the right guidance to aspirants in the field of CAT and MBA entrance prep.
New Jobs are difficult to get, particularly for Engineering Graduates:
In times of slowdown, the Placement scenario at even top engineering colleges including IITs, NITs and other institutes is far from satisfactory. Even after completing your B.Tech/B.E., it is not likely that you could get a very good job with the desired salary package in a very good company as was available a few years ago. On the top of it, the existing global economic slowdown and outbreak of CoronaVirus has brought the industrial growth to a minimum level. As such, the demand for engineering graduates is going down, unless the person is equipped with some added management qualification.
It is therefore, of utmost importance to acquire the management skills that would add to the learning in a practical business scenario. In almost all top 50 B-schools, more than 50% MBA graduates are from engineering backgrounds. This is a good opportunity to take your career to the next level by pursuing an MBA during the recession. By the time you complete your MBA, more career opportunities will be waiting for you.
romotions difficult, Salary Cuts a common practice in recession:
You can’t expect promotion during the bad times! On the contrary, organizations are likely to cut salaries and lay off people.
Many MNC’s based in and out of India have started laying off people, forget about the promotion. Also, it has been proposed that no DA this year for the employees, moreover, there has been a 30% cut in the salaries and allowances of the ministers and representatives of the state/centre.
So, why cling to a stagnating system? Instead prepare yourself to leapfrog to a top job in the next few years after completing your MBA.
Tough times are good times to study Economy and Management makeovers:
A crisis draws the best of humans, goes the saying. Indeed, in times of crisis, the best minds across the world interact to find solutions to crisis. Much more use of technology and innovation is expected. And the media is very vigilant – reporting such initiatives in great details.
In such an environment, the best management professors discuss the economic and management theories in class and related to the current business situation. This offers rich learning for students.
Making best use of the tough time of recession and Corona lock down is to study how the business and economy can be managed to put them on a high growth trajectory and pull them out of recession. MBA is the best program to make you learn this with practical training.
Generally, economic recessions don’t last for very long. According to an analysis of the US economy, since 1900, the average recession has lasted only 15 months while the average expansion has lasted 48 months. The Great Recession of 2008 and 2009, which lasted for 18 months, was the longest period of economic decline since World War II. In India too, the 2008-09 slowdown lasted about 18 months.
So, you can expect a global slowdown for 12-18 months. India too will be impacted by global economies like the US, China and Eurozone.
But the economic cycles are bound to rebound with high growth prospects after the recession phase is over. It may take one or two years, and by the time you finish your MBA, many good options will come up. By the time you complete your MBA, the economy will be back on track.
Also, if you are a working professional and can get a sabbatical/study leave from your organization, go for it and complete your dream of doing an MBA and get a better career opportunity in your existing or other organization. For fresh graduates this is a great opportunity to enter into good B-schools and earn the coveted MBA qualification.
That is all for today! All the best!
Incase of any query, kindly get in touch with team FUNDAMAKERS, the contact information is available on our website.