MBArk Read on ...................................
An MBA in Finance
that most readers must be just finishing graduation,
may not be working fulltime, are in the prime of their
youth, etc. Thus the average 20 stands for many things
in reality. This is the ability to grasp abstractions. This
What’s it that you need? skill enables students to understand the implication of
a bank rate cut on the economy, market and firm in
- Jaya Deshmukh w Attention to detail
he answer to this question surrounds us Since finance deals with abstractions, it is essential to
T everywhere…History is the story of economics. list as many assumptions as could possibly happen.
It was the pursuit of money that led to events For example, a company invests 100 crores in a project
which shaped history - be it the First World War and wants to calculate at what time in the future it is
or the great ancient civilisations or even the spread of likely to make profits. When making this calculation,
the British Empire –money continues to fashion our lives it is essential that all the possible outcomes be thought
today. It determines whether a nation is to be categorised of before selecting the most likely outcome. Listing out
as Developed or Third World. At a more personal level, these, requires an eye for detail.
we also know that money brings with it a better standard w Meticulousness or zero error documentation
of living, a more comfortable lifestyle. And therein lies Idiomatically put, this skill means – “measure twice
the advantage of doing an MBA in Finance. What an MBA before you cut”. If you make an error in calculation,
in Finance hopes to do is to inculcate in the student an you can put the company back by many million dollars.
understanding of how economics works towards wealth It is essential that you be accurate, be it data analysis
generation. A student who can grasp and apply this or documentation.
understanding can be assured a very materially successful w Comfort with routine
life and an exceptional student can Finance involves a lot of routine work. It also is very
envisage himself as the next Allan documentation heavy. In that sense it can get repetitive.
Greenspan. Where should you do an MBA in finance?
If marketing is the genesis of great All the leading B-schools are great places to do an MBA
ideas, their implementation is rooted in finance. All the IIMs, XLRI, JBIMS, SPJIMR, IIFT, MFC
in finance. And as we all know an and IFMR. To apply to any of the leading institutes keep
unexecuted brilliant idea has little track of the advertisements in leading dailies from August
value. Finance will teach you onwards. While picking the institute, choose carefully so
accounting, economics, banking, market structures etc; that you don’t apply over-enthusiastically to all of them
all the tools that harness the potential of an idea and add and end up making a major dent in your pocket. Talking
to it money spinning energy. If marketing is about the about finances, the cost of the programme is anywhere
big picture, finance is all about details. Ratios, between 70,000 for a non-residential programme to
probabilities, statistics, formulae and mathematical around 2.6 lakhs. The placement season finds a great
abstractions are used to foresee and even fashion the many corporates coming to their campuses to pick
future. Thus finance completes the marketing function students into areas ranging from Banking, Consultancy,
by translating vision into tangible reality. Hence if you Commercial banking, Operations and General
are a melancholic personality; organisations and management. This year the highest domestic salary was
implementations excite you; finance is the specialisation 16 lakh offered by McKinsey and the highest foreign
to choose. salary was $ 82,000 by Capital One. Now does it look
The finance specialisation requires the student to lucrative enough? If you haven’t yet made up your mind,
have a few skills. These are not necessary but they are here’s a pointer to put you back on track.
definitely an advantage to have: As visiting faculty, I am often asked by students,
w Comfort with numbers whether they should do an MBA in Finance. I have
Finance is a number game. It is not necessary that you devised a crude… And though it may not be the perfect
be a whiz at math with 90% plus score. What it requires response, I have always asked them to read a book titled,
is that if you are faced with a calculation that involves “Rich Dad, Poor Dad” and then decide. If the book
three digits, you don’t go rigid with fright! A simple fascinated them, I asked them to proceed with an MBA
test: calculate (13 * 9 * 6)/7. If you didn’t get horror in Finance, if not, to drop the idea. Hope this tip helps
struck, you are comfortable with numbers. anyone of you, out there trying to make up your minds!
w Ability to grasp abstractions Refer to ‘Lessons in Financial Management’ on page
It is not sufficient to be comfortable with numbers; you number 76 for a book review on Rich Dad, Poor Dad.
should also intuitively understand what the numbers
mean in real life. For example, if we say that the average The author is Visiting Faculty, IMDR and SIMS (Pune);
age of the reader of this magazine is 20 years it implies Ex Associate Brand Manager,AT&T Corp. Asia Pacific
Advanc'edge MBA / June 2003