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GMAC® Research Highlights 2010

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Global Business Student Pipeline

Source: GMAT® data for testing year ending June 30, 2010. GMAT® using programs can explore stats at gmac.com/gmatstats

263,979GMAT® exams taken in TY2010

40% women52% non-US citizens

27 mean age

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Welcome to the discussion…

PLACE HOLDER

Peach New Media

INSERT

Housekeeping and

How-To use tool tips

Moderator:

Sabrina White

• GMAC® Member Services Specialist

• More than 10 years in GME-

Admissions and Program Director

GMAC® Research Highlights 2010Using Student Decision-Making and

School Selection Criteria to Drive Messaging

Alex Chisholm Michelle Sparkman Renz

Speakers

Hillary Taliaferro

Agenda

• Respond to potpourri of questions about

…the economy

…your student pipeline

…the value proposition

• Available resources

• Your questions and feedback

Question:

I keep hearing about a

“slow economic recovery...”

what does this really mean

for my business school?

Alumni Perspectives Survey

824 Class of 2010 Alumni126 Schools7,674 Alumni from Classes ‘00 to ‘09

mba.com Registrants Survey22,111 Prospective Students

Global Management Education Graduates Survey

5,274 Graduates 147 Schools*SCHOOL SIGN UP FOR 2011

Application Trends Survey665 programs 327 schools

Corporate Recruiters Survey2,367 Employers168 Schools*SCHOOL SIGN UP FOR 2011

2010 GMACSurvey Research

Was there a timing mismatch?

APAC

95%

LATAM

79%

77%

US

CANADA

EU

64%

73%

Employers Expectations for 2010% of employers expecting business conditions to improve, by location

Source: GMAC® Corporate Recruiter’s Survey 2010

Markets have stabilized but…

Crowded Markets & Competition

2010 Graduates

2009 Graduates

People who lost jobs

People who kept jobs but wanted to leave

Iceland’s volcano Eyjafjallajökull

Job Offer Status in Spring of Graduation Year % of job seekers with one or more job offer

71%

66%

45%

36%

42%

50%54%

59%62%

50%

40%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Full-Time MBA Programs

Source: GMAC® Global Management Education Graduate Surveys

45%51%

35%

20%

36%

48% 48% 50% 52%

38%

22%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Part-Time MBA Programs

Early 2010

47% 47%

28%37%

54%45%

56% 54%44%

23%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Executive MBA Programs

Low point lagged recession

72%84% 87% 89% 89% 88% 84%

88%

2003 2004 2005 2006 2007 2008 2009 2010

Graduation Year

% Employed in September of Graduation Year

Source: GMAC® Alumni Perspectives Survey 2010 Preliminary Data

Median Starting Salary (US$)

2010: $78,8192009: $75,0002004-2008 Avg: $78,517

Average # of Job Offers

2010: 1.92009: 1.92004-2008 Avg: 2.5

Late 2010Checking in on Class of 2010 Alumni shows modest increases…

0%

20%

40%

60%

80%

Jan 2009

Mar 2009

May 2009

Jul 2009

Sep 2009

Nov 2009

Jan 2010

Mar 2010

May 2010

Jul 2010

Sep 2010

Nov 2010

Europe APAC North America

Source: GMAC® mba.com Registrants Survey Data 2009-2010

What’s Next – Prospective Student Views

% of prospective b-school students believing global economy is stable or strong

Why it Matters?

Economic perceptions can be either a motivator or de-motivator for students deciding to attend business school.

Future Demand for Management Education

Historically

Jobs ↓Demand for B-School ↑

1982-8319912001-20022008-2009

Today

Jobs↔Demand for B-School?

GMAT Exams

FT MBA Applications

PT MBA Applications

-15%

-10%

-5%

0%

5%

10%

15%

00 01 02 03 04 05 06 07 08 09 10

Year-on-Year Percentage Change

Source: GMAC® Application Trends Survey 2010

Slow economic recovery =

• Schools can cheer the modest increases in employment

and salaries for Class of 2010 alumni

• Timing mismatch might linger, adding to challenges of a

crowded labor market

• Talent in Asia-Pacific is most optimistic about a stable/

strong global economy

• Leverage increasing optimism among potential students

in 2011 recruitment efforts

• Expect short-term fluctuations in GMAT volumes as part

of pipeline moves in sync with recovery conditions

Question:

What are MBA programs seeing in

terms of applications changes?

What’s different for FT vs. PT MBA

and other programs?

FT MBA Applications trends by location

476 MBA programs

196,032 completed applications before admissions deadlines

% of Full-Time MBA Programs Experiencing ↑ in Application Volumes

Average % Change by Applicant Type

APAC United States Europe

All Applications (Avg #) -16% -1% +4%

Domestic -7% -4% +2%

Foreign -32% +3% +5%

39% 41%

53%

Source: GMAC® Application Trends Survey 2010, *before admissions deadlines

Other Program Types & Applications% of programs reporting increase in application volumes

Other Master’s

156 master’s programs

31,753 applications*

59%

65%62% 62%

49% 41%

EMBA FT 1 Year MBA FT 2 Year MBA

Finance Accounting Management

43%

PT MBA

476 MBA programs

196,032 applications*

Source: GMAC® Application Trends Survey 2010, *before admissions deadlines

Median Application Volumes 2010

51

109141

383

72

260

94

0

50

100

150

200

250

300

350

400

450

Executive MBA

Part-Time MBA

Full-Time 1 year MBA

Full-Time 2 year MBA

Master of Accounting

Master of Finance

Master in Management

Median Number of Applications per MBA or Master’s program

(overall)

Source: GMAC® Application Trends Survey 2010

On-Campus Programs Still Preferred

84% Prefer On-Campus Delivery

• Online: 2%

• Distance: 1%

• Combination: 8%

0% 5% 10% 15% 20%

APAC

LATAM

Middle East & Africa

Europe

US & Canada

Distance Online Combination

Modest Interest in Non-Traditional Formats

Source: GMAT® TY2010 Examinee Data (optional, single selection)

Application trends =

• Increases in number and volume of applications were

seen among EMBA programs and master’s programs in

Finance, Accounting, and Management.

• Most FT and PT MBA programs saw flat or declined

applications (relative and actual) in 2010…

• FT MBA programs in Europe successfully increased

applications from domestic and international students.

• Only modest interest in online/distance programs, with

greatest interest seen among examinees in US.

Question:

Where are students looking to study?

What regions do I compete with to

attract students?

GMAT® Score Sending

263,979GMAT Exams Taken in TY2010

2.95Avg. # of GMAT Scores Sent per Examinee

779,045Scores Sent to Schools around the World

Source: GMAT® TY2010 Examinee Data

Key Trends

↑ Staying in

Home Country

↑ Staying in Region

All GMAT ExamineesScore Destination

TY2010Percent

1. United States 78.8%

2. United Kingdom 4.5%

3. Canada 3.6%

4. France 2.6%

5. India 2.2%

Leading Destinations

Where are Scores Going?

California, New York, Massachusetts, Illinois, and Texas = HALF

↓

↑

↔

↑

↑

Source: GMAT® TY2010 Examinee Data

75%

60%

25%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

TY00 TY01 TY02 TY03 TY04 TY05 TY06 TY07 TY08 TY09 TY10

% of Scores Sent by non-US Citizens

% of Scores Sent to US Schools

% of Scores Sent to Non-US Schools

Relative interest declining among non-US citizens

251,979scores

Possible Explanations…

GMAT Program Usage

Globalization of Rankings

Government Initiatives

Source: GMAT® TY2010 Examinee Data

Europe Attracting More Global Students

18,017

10,322

3,252 2,291 2,554

34,772

20,515

7,048 5,751

3,853

United Kingdom

France Spain Netherlands Switzerland

Top 5 European Countries Receiving GMAT Score Reports

TY2006 TY2010

85,000 scores to Europe

↑ 90% from TY2006

64% from non-Europeans

>1,000 Scores• Germany

• Sweden

• Italy

• Greece

Source: GMAT® TY2010 Examinee Data

Asia-Pacific Attracting Regional Students

APAC93%

North America

3%

Europe3%

LATAM1%

Middle East & Africa

0.6%

Region of Citizenship for Score Senders

47,000Scores Receivedby APAC Schools

TY2010

Program LocationScores

Received

1. India 17,482

2. Singapore 12,067

3. Hong Kong 7,363

4. Australia 4,156

5. China 3,252

Top Countries in APAC to Receive GMAT Scores in TY2010

Source: GMAT® TY2010 Examinee Data

“What countries have seen the

largest % increase in GMAT

submissions to the US? UK?”

1. China +55,144

2. India +12,805

3. Saudi Arabia +1,696

4. Vietnam +1,490

5. Iran +835

1. India +7,333

2. China +2,453

3. United States +601

4. Germany +534

5. Russia +350

Change in # of score reports received by US and UKschools by country of citizenship. TY2006 to TY2010

Source: GMAT® TY2010 Examinee Data

Student Mobility =

• The most dynamic trend within GMAT student pipeline

• NEW Geographic Trend reports to be available on in

early 2010 at gmac.com/geographictrends

Question: Are there any major

changes among GMAT® examinees

in 2010?

204,509219,077

246,957265,613 263,979

TY2006 TY2007 TY2008 TY2009 TY2010

+29% Since TY2006

Source: GMAT® TY2010 Examinee Data

Global Testing Distribution

US48%

APAC31%

Europe9%

Middle East & Africa

6%

LATAM3%

Canada3%

25%

52%

TY8

5

TY8

6

TY8

7

TY8

8

TY8

9

TY9

0

TY9

1

TY9

2

TY9

3

TY9

4

TY9

5

TY9

6

TY9

7

TY9

8

TY9

9

TY0

0

TY0

1

TY0

2

TY0

3

TY0

4

TY0

5

TY0

6

TY0

7

TY0

8

TY0

9

TY1

0*

% of GMAT Exams Taken bynon-US Citizens

263,979Exams TakenWorldwide

TY2010

2nd year in row: Non-US Citizens > US Citizens

Region of CitizenshipSource: GMAT® TY2010 Examinee Data

Regional Softening during TY2010

5%4%

1%

-2%

-6%

Europe Middle East and Africa

APAC US and Canada

Latin America,

Mexico, and the Caribbean

Year-on-Year % Change by Region of CitizenshipTY2009 to TY2010

One-Year Shifts

Europe, the Middle East and Africa, and APAC continued to grow in TY2010

Testing in North and South America declined slightly

Source: GMAT® TY2010 Examinee Data

APAC+29,668 ↑58%

1. China, +20,1222. India +10,3963. Vietnam +762

Change in # of GMAT Exams Taken by CitizenshipTY2006 to TY2010

APAC Leading Global Growth

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

TY2006 TY2007 TY2008 TY2009 TY2010

GMAT Exams Taken by Citizenship

Chinese Indian

China became 2nd largest student pipeline in TY2010

11% of all exams taken

Source: GMAT® TY2010 Examinee Data

APAC+29,668 ↑58%

1. China +20,1222. India +10,3963. Vietnam +762

1. United States +16,3652. Canada +1,663

1. Germany +2,0022. France +9993. Italy +837

Change in # of GMAT Exams Taken by CitizenshipTY2006 to TY2010

US & Canada+18,028↑15%

Europe+7,135 ↑42%

Testing Remains Near Historic Highs

1. Brazil +3162. Chile +2333. Colombia +209

LATAM+910 ↑13%

Middle East & Africa+5,053 ↑45%

1. Saudi Arabia +1,0952. Egypt +7113. Lebanon +688

Source: GMAT® TY2010 Examinee Data

Notable increases in # of GMAT Exams Taken by citizens of other Middle East and African countries, TY2006 to TY2010

South Africa, +385 (↑101%)

Turkey, +365 (↑23%)

Iran, +362 (↑147%)

Kuwait, +338 (↑209%)

Nigeria, +315(↑27%)

Expanding talent sources

Source: GMAT® TY2010 Examinee Data

Trends in Examinee Characteristics

More Women

Increased US Diversity

Expanding Mobility

Shifts among Younger Talent

More Women in the Pipeline

105,990 exams taken by women (Women ↑, Men ↓)

>40% for 1st time

Driven by China at >60%,

43.5%

37.8%36.1%

39.3%

35.0%

APAC Europe Middle East & Africa

US & Canada

LATAM

TY2010 TY2006

Source: GMAT® TY2010 Examinee Data

Shift Toward Younger Examinees Moderating

Mean Age increased to 27

Traditional age 25-30 ↑ and 31+ ↑

Up from TY2009 mean age = 26.7

Pipeline still much younger than five years ago, especially in Europe and Asia

40.9% 40.9%

36.7%

24.5%

15.4%

Europe APAC US & Canada Middle East & Africa

LATAM

TY2010 TY2006

Source: GMAT® TY2010 Examinee Data

More than 125,000 exams taken by all US citizens

Diversity among US test-takers has increased steadily since TY 2006

Overall, ~25% increase for Blacks, Asians, and Hispanics

10,842

14,407

975

7,486

-1,000

1,000

3,000

5,000

7,000

9,000

11,000

13,000

15,000

Black/African American

Asian American

American Indian

Hispanic American

TY 2010 TY 2006

US Diversity

Source: GMAT® TY2010 Examinee Data

What do you hear from employer’s

in their plans to hire business grads?

…Beyond money, what else captures

the value of an MBA?

% of employers who rated MBAs more competent than others at the same job level

in ….

• Improvements in hiring scenario from 2009

• Companies more likely to hire MBAs next year

• Slowness in hiring but salaries steady

Compensation = double undergrads’ salary

More reliance on business grads in the hiring mix

•Shift from recovery mode

Employer perspective

Source: GMAC® Corporate Recruiters Survey, 2010.

Graduates cite improved skills Competitive advantage in the job marketBusiness alumni are satisfied with job choiceBusiness degree as essential for getting their job

Graduate and Alumni Perspective

Source: GMAC® Global Management Education Graduate Survey and Alumni Perspectives Survey, 2010.

B-School Grads Staying Optimistic

94% 92% 92% 94% 93% 94% 94% 95%

87% 85% 86% 90% 87% 90% 89% 90%

2003 2004 2005 2006 2007 2008 2009 2010

% of respondents who rate value as outstanding, excellent, or good

With a Job Offer Without a Job Offer

Source: GMAC® Global Management Education Graduate Survey and Alumni Perspectives Survey, 2010.

In spite of challenging labor markets, value of degrees remains high..

15% 17%

26% 28%

2007 2008 2009 2010

GME Value on Rise in APAC(% of APAC citizens rated outstanding,

by graduation year)

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