gmac market intelligence update · gmac market intelligence update. amba business school...

GMAC Market Intelligence UpdateAMBA Business School Professionals Conference, Vienna

1 July 2019

Agenda

• Navigating GMAC’s market intelligence

• Continued trends in the MBA space

• Future trends

Recently published market intelligence

Assessment data• Profiles of GMAT Testing TY2018• GMAT Geographic Trend Report TY2018GMAC survey and topical reports • mba.com Prospective Students Survey• Preliminary Application Trends Survey 2019 • Brexit and GME in the UK• Women and the Full Time MBA• Corporate Recruiters Survey 2019

GMAT testing volumes stable over 5-year period

GMAT exams globally TY2014-TY2018

-

50,000

100,000

150,000

200,000

250,000

300,000

TY14 TY15 TY16 TY17 TY18

GMAT

Exa

ms

Deliv

ered

GMAT exam data, TY2014-TY2018. For more, visit www.gmac.com/profile.

-

5,000

10,000

15,000

20,000

25,000

TY14 TY15 TY16 TY17 TY18

GMAT

Exa

ms

Deliv

ered

GMAT exams by European residents TY2014-TY2018

YoY % change

5-yr % change

Global -3.2% -0.6%

Europe -1.5% +0.2%

Profile of GMAT Testing

https://www.gmac.com/market-intelligence-and-research/assessment-data/profile-of-gmat-candidates

The center of gravity of the global candidate pipeline is shifting east

GMAT exam data TY2009 to TY2018.

Unique GMAT examinees by world region of citizenship, TY 2009 – TY 2018

0%

25%

50%

75%

100%

TY09 TY10 TY11 TY12 TY13 TY14 TY15 TY16 TY17 TY18

Australia and Pacific Islands

Eastern Europe

Africa

Canada

Middle East

Latin America

Western Europe

Central and South Asia

East and Southeast Asia

United States

TY 09 TY 18

US 51% 34%

E & SE Asia 15% 29%

C & S Asia 13% 16%

W Europe 7% 8%


Examinees under 25 years old now account for half of global exams taken

Percentage of GMAT exams taken by age group, TY2009-TY2018


0%

25%

50%

75%

100%

Perc

enta

ge o

f GM

AT E

xam

s Ta

ken

Testing Year

40 and older

31 - 39

25 - 30

Less than 25

The share of exams taken by candidates younger than 25 has grown from 40% to 51% over the last

10 years



Germany, UK and France top list of European GMAT testing by residence


GMAT exams taken by European residents, TY2014-TY2018

Country of residence TY2014 TY2018 5-yr % change

Germany 4,199 4,331 +3%United Kingdom 3,553 3,769 +6%France 3,083 2,536 -18%Italy 1,348 2,304 +71%Netherlands 1,893 2,137 +13%Russia 1,455 1,189 -18%Spain 945 1,024 +8%Sweden 549 813 +48%



Top GMAT test taker pipelines in Europe

Germany UK France Italy Netherlands

Bus Masters 80% 33% 65% 72% 77%

Mean age 24 25.3 24.5 23.3 23.9

Women 37% 43% 44% 28% 38%

GMAT mean 573 597 566 569 520

Undergraduate major categoryBusiness 58% 35% 51% 50% 56%

Engineering 5% 12% 11% 7% 7%

Science 2% 9% 4% 2% 2%

Social Science 13% 25% 13% 24% 10%

Humanities 2% 4% 3% 2% 2%

Demographics of GMAT European resident examinees




Who takes the GMAT exam in Europe and applies to European b-school programs?

GMAT exam data, TY2018. For more, visit www.gmac.com/profile.

Demographics of European resident examinees who sent at least one GMAT score report to a European program, TY2018

Demographics MBA programsBusiness master’s programs

% Women 35% 39%% Younger than 25 19% 82%Mean total score 621 591Undergrad major category

Business 38% 68%Social science 23% 21%Engineering 26% 6%Science 9% 3%Humanities 4% 2%



Top GMAT examinee pipelines in Asia Pacific

Country of Residence TY 2014 TY 2018 5-yr % change

China 23,311 27,806 +23%

India 42,490 52,051 +19%Taiwan, China 3,128 4,065 +30%South Korea 3,713 2,588 -30%Singapore 1,997 2,283 +14%Japan 2,591 2,182 -16%Hong Kong, SAR China 1,963 2,076 +6%Thailand 1,598 1,606 +1%Australia 1,006 1,111 +10%Vietnam 830 1,007 +21%

GMAT exam data, TY 2014 – TY 2018.


Closer look: European MBA programs

GMAT score sending to European MBA programs, by citizenship

Analysis of GMAT exam data, TY2009 and TY2018.

47%54%

28%19%

6% 9%

8% 6%

12% 12%

0%

25%

50%

75%

100%

TY 2009 TY 2018

Perc

enta

ge o

f GM

AT S

core

Rep

orts

North America

Middle East andAfrica

Latin America

Europe

Asia-Pacific Candidate type 10-yr % change

Europeans sending to MBA -58%

APAC sending to MBA -28%

-

10,000

20,000

30,000

Europeans sending to MBA APAC sending to MBA


Closer look: European business master’s programsGMAT score sending to European business master’s programs, by citizenship

Analysis of GMAT exam data, TY2009 and TY2018.

40% 44%

46%48%

0%

25%

50%

75%

100%

TY 2009 TY 2018

Perc

enta

ge o

f GM

AT S

core

Rep

orts

North America

Middle East andAfrica

Latin America

Europe

Asia-Pacific Candidate type 10-yr % change

Europeans sending to business master’s +75%

APAC sending to business master’s +84%

-

10,000

20,000

30,000

Europeans sending to business master'sAPAC sending to business master's


GMAT™ Geographic Trend Report: Testing Year 2018

Candidate Demographic

GMAT Scores Received in

TY2018MBA (%) Business

Master’s (%) Other (%)

Total GMAT exams 83,191 41.1% 57.2% 1.6%

Women 34,499 33.7% 64.7% 1.6%

Candidates younger than 25 45,656 12.6% 86.5% 0.9%

Total score <600 24,596 34.8% 62.9% 2.3%

Total score 600-690 37,948 41.3% 57.7% 1.0%

Total score ≥700 20,647 48.5% 49.5% 2.1%

Regional Trends: Western Europe

Western Europe as a Score-Sending Destination

Programs in Western EuropeGMAT Scores Received by Candidate Demographics

Programs in Western EuropeMean Total Score and Mean Candidate Age of GMAT Scores

Received

594 608 617 625 623

25.3 25.2 25.1 25.1 25.0

TY2014 TY2015 TY2016 TY2017 TY2018

Mean GMAT Total Score Mean Age

Programs in Western EuropeNumber of GMAT Score-Accepting

Programs

410

392

387

385

374

681

646

597

528

498

64

62

62

57

55

TY2018

TY2017

TY2016

TY2015

TY2014

MBA Business Master's Other

927

970

1,046

1,100

1,155

GMAT Geographic Trends Report

GMAT™ Geographic Trend Report: Testing Year 2018

Regional Trends: Western Europe

Citizens of Countries in Western Europe: Candidate Profile

Candidate Demographic TY2014 TY2015 TY2016 TY2017 TY2018

Five-Year Growth Rate

Total GMAT exams 17,835 18,321 18,988 18,569 18,572 + 1.0%

Women 5,867 6,102 6,347 6,160 6,187 + 1.3%

Candidates younger than 25 9,937 10,611 11,112 10,909 11,590 + 3.9%

Total score <600 10,424 10,541 10,594 9,901 10,297 - 0.3%

Total score 600-690 5,602 5,688 6,187 6,390 6,201 + 2.6%

Total score ≥700 1,809 2,092 2,207 2,278 2,074 + 3.5%

Citizens of Countries in Western EuropeGMAT Exams by Candidate Demographics

Citizens of Countries in Western EuropeTop Score-Sending Destinations by School Country, TY2018

Country/Region Scores Sent in TY2018

% of Total Scores Sent in TY2018

% of Total Scores Sent in TY2014

1. United States 6,320 19.5% 25.6%

2. Netherlands 4,440 13.7% 12.5%

3. United Kingdom 4,287 13.2% 12.7%

4. France 4,279 13.2% 13.9%

5. Germany 3,588 11.1% 10.1%

Citizens of Countries in Western EuropeTop Program Types, TY2018(Percentage of Scores Sent)

1.3%

1.3%

1.5%

1.6%

1.6%

1.9%

10.8%

14.1%

15.9%

24.2%

1.9%

1.9%

1.3%

1.0%

1.2%

2.8%

7.1%

16.9%

21.1%

16.5%

MBA, part time

PhD/Doctorate in Business

Master in International Business

Master in Economics

Master in Marketing

Executive MBA

Master in Finance

MBA, full time, less than 2 years

MBA, full time, 2 years

Master in Management

TY2014 TY2018

GMAT Geographic Trend Report

Among growing options, the FT MBA remains the predominant degree sought

8%11%

15%17%

22%44%45%

Hybrid/blended MBAOnline MBA

Executive MBAFlexible MBA

Part-time MBAFull-time 1-year MBAFull-time 2-year MBA

3%4%4%5%7%8%10%10%11%11%12%12%12%

17%22%

Master of Real Estate MgmtMaster of Health Administration

Master of TaxationMaster of Engineering MgmtMaster of Human Resources

Master of Supply Chain MgmtMaster of Entrepreneurship

Master of Information TechnologyMaster of Project Management

Master in ManagementMaster of Marketing

Master in International ManagementMaster of Accounting

Master of Data AnalyticsMaster of Finance

Program types considered

GMAC (2018) mba.com Prospective Students Survey. Demand for MBA and Business Master’s Programs. gmac.com/prospectivestudents.

Program types considered

MBA Only34%

BusinessMaster’s

Only19%

Both46%

The average candidate considers

3.2different

program types

mba.com Prospective Student Survey

https://www.gmac.com/market-intelligence-and-research/market-research/mbacom-prospective-students-survey

Program Considerations

Five-Year Trend Shows Consideration Gains Among Full-Time

MBA and Emerging Business Master’s Program Types

41% 40%22% 18% 14% 12%

45% 44%22% 17% 15% 11%

Full-time 2-year MBA Full-time one-year MBA Part-time MBA Flexible MBA Executive MBA Online MBA

MBA Program Types Considered

2013 2017

7% 7% 7%3% 4% 2% 3%

10% 8% 7% 5% 4% 4% 3%

Master ofEntrepreneurship

Master of SupplyChain Management

Master of HumanResources

Master ofEngineeringManagement

Master of Taxation Master of HealthAdministration

Master of RealEstate Management

20%7% 13% 16% 10% 16%

8% 6%

22% 17% 12% 12% 12% 11% 11% 10%

Master ofFinance

Master of DataAnalytics

Master ofInternationalManagement

Master ofAccounting

Master ofMarketing

Master inManagement

Master of ProjectManagement

Master ofBusiness

InformationTechnology

Business Master’s Program Types Considered

Note: The way in which candidates were asked about the program types they are considering changed in 2017. In past survey years, candidates were asked which program categories they were considering and subsequent questions probed on specific program types for each program category selected. In 2017, all respondents were shown all program types to select from.

11


Prospective Student Profiles

Prospective Students Who Prefer a Full-Time MBA Program Type

62%

38%

Prospective students who prefer a full-time MBA program type have a median age of 26 and a median of three years work experience. Half were business/economics majors as undergraduates, and 44 percent majored in a STEM field. They begin considering business school a median of 12 months after completing their undergraduate education. About 1 in 5 currently own a home and are married. One in 10 have children.

50%

24%

44%

Business/Economics Humanities/Social Sciences STEM

Undergraduate Major

26median age

3median years

work experience

19% 17% 11%

own a home married have children

18


mba.com Prospective Student Survey 2018

Study Destinations

In Just One Year, Western Europe Gained Significant Ground on the US in Attracting International Prospective StudentsAmong prospective students with international application plans—both those who prefer a full-time MBA program type and those who prefer a business master’s program type—the percentage who prefer the US as a study destination declined between 2016 and 2017, while the percentage who prefer Western Europe increased.

The US is more likely to be preferred as a study destination compared with Western Europe because of the reputation of the educational system, better preparation for career, improved access to jobs in one’s home country, and ability to study in a country that offers English language education. Western Europe is more likely to preferred because of the attractiveness of the location and affordability of education.

Additionally, non-US citizens indicate the top three barriers affecting their decision to study in the US are tuition costs (69%), cost of living (59%), and the ability to obtain a job in the US post-business school (51%).

56%

26%47%

33%

US Western Europe

2016 2017

72%56%

24%39% 36%

18%

66%49%

17%28%

50%36%

Eduation reputation Better preparation forcareer

Improved access tojobs in home country

English languageeducation offerings

Attractiveness oflocation

Affordability ofeducation

Reason for Choosing Preferred Study Destination

US Western Europe

45%36%39% 41%

US Western Europe

Preferred International Study DestinationProspective Students Preferring Full-Time MBA Program Types

Prospective Students Preferring Business Master’s Program Types

29


62%45%

26%

39%

0%

25%

50%

75%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f Can

dida

tes

Year

East and Southeast Asia CanadaUnited States Western Europe

≥650 Candidates With Int’l Application Plans, Preferred Study Destination

GMAC (2019). mba.com Prospective Students Survey. Data collected in 2018. For more, visit www.gmac.com/prospectivestudents.

≥650 Candidate Preference to Study in the United States by Region/Country of Citizenship

42%

34%

62% 60%

33%

69%

40%

24%

35% 34%

51%

43%

25%

56%

33%

22%

0%

20%

40%

60%

80%

Africa Canada Centraland South

Asia

E&SE Asia EasternEurope

LatinAmerica

MiddleEast

WesternEurope

Perc

enta

ge o

f Can

dida

tes

Region/Country of Citizenship

2015 2018

Preference for W. Europe grows as US declines

20


http://www.gmac.com/prospectivestudents

How has the United Kingdom’s decision to leave the European Union (Brexit) influenced your decision to study in the United Kingdom?

Brexit Wave Surveys

The biggest shift toward “no influence” has been among citizens of Asia-Pacific countries

By World Region of Citizenship

40% 38% 37%

50% 53% 57%

11% 9% 6%

Wave 1 (Dec2016)

Wave 2 (Mar-Apr 2017)

Wave 3 (Dec2018)

Americas

48% 45%38%

40% 47% 56%

11% 8% 7%

Wave 1 (Dec2016)


Wave 3 (Dec2018)

Asia-Pacific

43%55% 51%

52%43%

42%

4% 2% 7%

Wave 1 (Dec2016)


Wave 3 (Dec2018)

Europe (non-UK)

More likely

No influence

Less likely

Brexit and Graduate Management Education in the United Kingdom

Perc

enta

ge o

f Res

pond

ents

Topical reports and white papers

The US political climate and international student mobility choicesPercentage of non-US citizen candidates who would prefer to study in the United States, January 2012– December 2018

0%

25%

50%

75%

Jan-

11Ju

n-11

Nov-

11Ap

r-12

Sep-

12Fe

b-13

Jul-1

3De

c-13

May

-14

Oct-1

4M

ar-1

5Au

g-15

Jan-

16Ju

n-16

Nov-

16Ap

r-17

Sep-

17Fe

b-18

Jul-1

8De

c-18

5-yr avg. (45%)

2016 election

How, if at all, has the new US president influenced your decision to pursue GME in the United States?

Non-US citizens, February 2017 – December 2018

GMAC. Monthly surveys of non-US citizen mba.com registrants.

20% 21%

11% 10%

12% 13%

40% 42%

0%

50%

100%

Feb'17 Dec'18

Significantly morelikely (7)

(6)

(5)

No impact (4)

(3)

(2)

Significantly lesslikely (1)

Topical reports and white papers

Overall demand for GME stable in 2018 compared with 2017

Absolute Change Analysis Relative Change Analysis

291,830291,779-0.02%

applications in 2017

applications in 2018

change in application volume

13%

11%

16%

8%

21%

13%

17%

Perc

enta

ge o

f pro

gram

s

Relative Change in Application Volume*

Down significantly

Down moderately

Down slightly

Flat

Up slightly

Up moderately

Up significantly

N=549 N=1,087

*Up/down significantly defined as a change of 21 percent or greater. Up/down moderately defined as a change of 11 to 20 percent. Up/down slightly defined as a change of 1 to 10 percent. Total does not sum to 100 percent due to rounding.

GMAC (2018) Application Trends Survey. Available at gmac.com/applicationtrends.

Application Trends Survey

https://www.gmac.com/market-intelligence-and-research/market-research/application-trends-survey

2018 recap: Strong growth outside US

Absolute Change Analysis

8.8%7.7%

3.2%

-6.6%

-12.0%

-6.0%

0.0%

6.0%

12.0%Asia Pacific Canada Europe

UnitedStates

Change in Total Application Volume

Relative Change Analysis

67% 62% 61%

32%

7%2% 9%

8%

26%37% 30%

59%

Asia Pacific Canada Europe UnitedStates

Perc

enta

ge o

f pro

gram

sProgram location

Decline

Stable

Growth




Shifts in demand largely driven by international student mobility choices

Absolute Change Analysis

International Application Volume

Relative Change Analysis

28%

63%

65%

47%

19%

13%

11%

26%

53%

24%

24%

26%

United States

Europe

Canada

Asia Pacific

Percentage of programsPr

ogra

m lo

catio

n

Growth Stable Decline

International Application Volume

15.1% 16.4%

3.4%

-10.5%

-20%

-10%

0%

10%

20%

Asia Pacific Canada EuropeUnitedStates




2019: Midway through the cycle, most European programs continue to see int’l growth

44%35% 35%

9% 29% 31%

46%35% 33%

Overall Domestic International

Perc

enta

ge o

f Pro

gram

s

64%

39%

61%

5%

21%

14%

31%39%

25%


Perc

enta

ge o

f Pro

gram

s

Asia Pacific (N=54)Europe (N=97)

41% 39%31%

9% 16% 24%

50% 45% 44%


Perc

enta

ge o

f Pro

gram

s

United States (N=588)

Relative Change in Mid-Cycle Application Volumes by Program TypeGrowth Stable Decline

GMAC (2019). Preliminary Application Trends Survey. Report made available only to participating programs.

Prelim App Trends Survey

More than half European MBA programs report growth at cycle midpoint

Relative Change in Mid-Cycle Application Volumes by Program TypeGrowth Stable Decline

GMAC (2019). Preliminary Application Trends Survey. Report made available only to participating programs.

27% 27%36%

9%18%

27%

64%55%

36%


Perc

enta

ge o

f Pro

gram

s

57%40%

55%

5%25%

15%

38% 35% 30%


Perc

enta

ge o

f Pro

gram

s

Asia-Pacific full-time one-year MBA programs (N=11)

Europe full-time one-year MBA programs (N=10)

26%34%

25%

3%

7%14%

71%59% 61%


Perc

enta

ge o

f Pro

gram

s

US full-time two-year MBA programs (N=85)

Prelim App Trends Survey

Q4 Poll: 2019 hiring forecast strong overall; salaries expected to rise for most

GMAC (2019) Year-End Employer Poll Report. Available at gmac.com/corporaterecruiters.

Percentage of employers who made 2018 hires and have 2019 hiring plans, by candidate type

77%

32% 36%

78%

37% 41%

0%

25%

50%

75%

100%

MBA Master inManagement


% o

f em

ploy

ers

Candidate type

2018 actual 2019 projected

Expected change in base salaries, by candidate type

24%14%

47%

40%45%

22%

34% 41%30%

0%

25%

50%

75%

100%

MBA Master inManagement


% o

f em

ploy

ees

Candidate type

Decreasecompared with2018Stay the same as2018

Increase at therate of inflation

Increase abovethe rate ofinflation

Corporate Recruiters SurveyCorporate Recruiters Survey

https://www.gmac.com/market-intelligence-and-research/market-research/corporate-recruiters-survey

Analytics jobs among the top positions employers plan to fill with b-school talentJob functions employers plan to place recent graduate business school hires

45%

56%

60%

61%

62%

65%

65%

69%

70%

71%

74%

Investment banking

Consulting

Operations

IT/MIS

Human resources

General management

Accounting

Finance

Marketing

Data analytics

Business development

% of respondents GMAC (2018) Corporate Recruiters Survey. Available at gmac.com/corporaterecruiters.

Percentage of employers that plan to place recent graduate business school hires into analytics positions, by industry

61%

67%

68%

70%

72%

72%

78%

78%

Nonprofit/Gov't

Energy/Utilities

Consulting

Health care

Finance/Accounting

Products Services

Technology

Manufacturing

Corporate Recruiters Survey


What skills do employers look for in new business school hires?

• Evaluate – The ability to evaluate relevant information from different sources

• Organize – The ability to organize information to see relationships and to solve multiple, interrelated problems

• Combine – The ability to combine and manipulate information from multiple sources to solve complex problems

• Synthesize – The ability to synthesize information presented in graphics, text, and numbers

Integrated Reasoning (IR) SkillsGeneral knowledge, skills, and abilities

Specific skills and attributes

• Budgeting/budget management• Excel/spreadsheets• Negotiation• Strategic planning• Project management• Entrepreneurial spirit• Promotability• Relationship management• Financial forecasting/analysis• Operations/Supply chain• Global mindset• Leadership • Organization/Time management • Adaptability/flexibility• Ability to put theory into practice

• Problem solving • Quantitative tasks• Data analysis and interpretation • Comprehension and logic• Listening• Written communication • Oral communication and

presentation • Managing self• Working with others • Coachability and reflection

GMAC (2018) Corporate Recruiters Survey. Available at gmac.com/corporaterecruiters.



Skills employers most frequently require from b-school hires

Skills employers most often say are difficult to find in b-school hires

Skills employers most often say are both required and difficult to find

78%

80%

81%

82%

85%

86%

86%

87%

89%

93%

Organize (IR)

Writtencommunication

Comprehension andlogic

Evaluate (IR)

Organization/timemanagement

Adaptablity/flexibility

Listening

Problem solving

Manage self

Working with others

24%

24%

24%

25%

25%

25%

29%

32%

43%

44%

Relationship management

Data analysis andinterpretation

Adaptability/flexibility

Evaluate (IR)

Ability to put theory intopractice

Strategic planning

Problem solving

Leadership

Organize (IR)

Combine (IR)

31%

31%

32%

32%

32%

37%

44%

48%

52%

55%

Problem solving

Ability to put theory intopractice

Data analysis andinterpretation

Negotiation

Global mindset

Entrepreneurial spirit

Strategic planning

Leadership

Organize (IR)

Combine (IR)

What skills do employers look for in new business school hires?

GMAC (2018) Corporate Recruiters Survey. Available at gmac.com/corporaterecruiters.



Most alumni agree their GME was personally, professionally, and financially rewarding

% agree: My GME was rewarding…

Personally

Professionally

Financially

93%

95%

94%

2016-17 Full-time MBA

Full-time MBA

Overall

88%

90%

89%


Full-time MBA

Overall

70%

79%

73%


Full-time MBA

Overall

GMAC (2018) Alumni Perspectives Survey. Available at gmac.com/alumniperspectives.

Alumni Perspectives Survey

https://www.gmac.com/market-intelligence-and-research/market-research/2018-alumni-perspectives-survey

Helping you understand GMAT and GMAT scores

https://www.gmac.com/gmat-other-assessments/accessing-gmat-exam-scores-and-reports/gmat-scoring-by-exam-section-normal-view.aspx

https://www.gmac.com/gmat-other-assessments/accessing-gmat-exam-scores-and-reports/gmat-scoring-by-exam-section-normal-view.aspx

https://www.gmac.com/-/media/files/gmac/gmat/gmat_institutionuserguide_fnl.pdf

GMAC survey research

- Access to interactive data reports- Benchmark reports - Advanced copy of summary report

mba.com Prospective

Students Survey


Corporate Recruiters

Survey

Alumni Perspectives

Survey

Be a partner in our research!gmac.com/surveysignup

Open now: Application Trends Survey launched yesterday!

Thank you!

James [email protected]

mailto:[email protected]

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