5 Hot sectors to pursue MBA, How to decide

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MBAUniverse.com News Desk |
June 7, 2014
MBA aspirants now have become more specific on choosing the sectoral MBA programme but should exercise caution lest the decision spoil their career.
Before choosing the right sectoral specialization it is also necessary to know about programme USPs and you must have the ability to choose the right one

“How is the PGDM retail in BIMTECH? With CAT percentile of 80+, should I go for it?” It is one of the many queries that MBAUniverse.com has been receiving from the MBA aspirants all over the country on specialized MBA programmes offered by B schools where the admissions are available for the session 2014.

Till a few years back an MBA used to think in terms of a would be manager in conventional functions only. Sectoral specialization was not a topic for discussion. An aspirant could be placed in any sector like BFSI, Manufacturing, Consultancy irrespective of his second year specialization in finance, marketing, Human Resource.

Specialized sectoral management programmes in Retail, health care, Power, logistics, transportation are of the recent origin and are an indicator of rising demand of such professionals in the economy. It is but natural for the candidates who raise such querries as they are worried about their future after completion of specialized sectoral MBA. MBA aspirants now have become more specific on choosing the sectoral MBA programme but should exercise caution lest the decision spoil their career.

 

Specialized sectoral MBA: reflection of economic and social demand

When IIM Calcutta, the first IIM, was established in 1961 it started with a small number of students admitted in PGDM programmes designed with the specific conventional financial and operational needs of the corporate sector.

But soon the need for specialized MBA was felt and gradually IT, telecom, banking, Insurance sectors felt the requirement of MBAs to infuse more professionalism in their services.
It can be understood that a Civil Engineer, graduate in architecture might go for sectoral specialization like real estate but obviously if he chooses the healthcare, banking or insurance he may not be able to show his skills.

 

Sectoral specialization: your skill conversion

Before choosing the right sectoral specialization it is also necessary to know about programme USPs and you must have the ability to choose the right one. It is not regular MBA but will be more focused on the improving your management skills in the particular sector. You will then become a specific product for a particular use and not like an MBA with specialization in function only.

Before taking admission to the programme please think twice whether you are ready for it, whether you have studied the past statistics and future growth prospects as well as the USPs of B school where you want to pursue the course.   With the expected growth plan of new Government, following sectoral specialized MBAs could be your hot destinations.

 

Retail Management

It’s a fact that high hopes are prevailing for tremendous growth in investment in next 4-5 years both domestic and foreign especially in retail sector. This could bring more job opportunities. Placement ratio for MBAs in retail management would also increase. National and international retail giants are also planning to enter the retail sector in a big way. Hyper Market companies and B schools are also joining hands in designing the programmes according to their future requirements.

Organised retail sector is growing at faster pace in India. The expansion in retail sector will further go up with the approval of FDI in multi-brand retailing. Now this sector would need more professionals in retail management.

The placement package could go in a range of Rs 5 lacs to Rs 15 lacs depending upon your skills after completion of the course.
Top B schools offering MBA/PGDM in Retail management are BIMTECH, Greater Noida, K J Somaiya Mumbai, Jaipuria Institute of Management Lucknow, ITM Mumbai, SCMS Cochin, JIMS New Delhi.   

 

International Business

With the economy on revival path, international trade is expected to pick up tremendously. The sectoral specialized MBA (IB) can open more vistas of career. The programme gives you deep insight on foreign exchange working and shares intricacies on International Trade which definitely is different from domestic business.

This programme has its unique USPs and probably there is no better institute than Indian Institute of Foreign Trade (IIFT) that can offer it in better shape. MBA (IB)  is the flagship programme at IIFT.  Despite its high fee structure of Rs. 13 lacs and intake of 220 students more than 50K appear in the test every year.  The ratio is higher than CAT.
MBA (IB) at IIFT can place you at Rs. 14 lacs; at BIMTECH it could be Rs.5 lacs. Apart from these two B schools the programme is offered by K J Somaiya, Fore, Asia pacific Institute of management, UPES Dehradun where admissions can still be sought.     

Please however remember, the fluctuations in placement especially in B schools other than IIFT depend more upon the demand at the material time of placement. So decide after reviewing the past performance of the particular B school where you are seeking the admission.

 

Healthcare
It’s a priority and fast growing sector and with the expectation of more healthcare brands coming to India, the demand for MBAs in healthcare is also expected to increase manifold. Apart from this, required numbers of MBAs are not available in this sector mainly for the reason that not many candidates with Engineering, humanities, commerce background like to pursue the course as it needs some basic knowledge on health care. The course can be of interest for those who have life sciences, medical, para medical back ground.   

B schools like TAPMI, NMIMS, SIES, Symbiosis, Sharda University offer such specialized management programme. The programme has a low fee structure in comparison to the flagship programme.

The placement to MBAs in this sector is offered by chain of hospitals, health care  product manufacturing and selling companies like  Apollo, MAX, Fortis, Dr Reddy’s, CURA Healthcare,  DaVita Nephrolife, Ranbaxy. Average placement 2014 package for PGDM Healthcare at TAPMI was around Rs.7 lacs.

Two most important things that you should remember before opting for MBA healthcare are-check the past record of the institute and the truth about recent placement. The sector has good growth prospects but not all the B schools can reap the fruits from this growth. So be careful while choosing.

 

Banking and Insurance

One of the hot sectors, MBA Banking and Insurance is expected to grow faster than other sectors. It’s a service sector industry.  Hundreds of B schools are there, offering MBA based on functions but are very less with specific focus on these sectors.

The Banking and Insurance sector is probably is the largest sector and is still growing in terms of expansion, innovation. More international and national players at a large scale are supposed to join this sector.

The demand for MBAs in this sector is supposed to increase manifold but simultaneously this is the quality that will be needed to fulfill the requirement. You have to ensure that the B school imparting MBA specialization in Banking and Insurance sector has renowned faculty, more public and private sector banking and insurance companies are connected to it and it has a good placement record else your future will be at stake and you will not be left with much choice after completing the sectoral specialization. 

Following B schools offer specialized MBA in Banking and/or insurance sector- NMIMS, Symbiosis, IP University New Delhi, NIBM Pune, IIBF, National insurance Academy Pune. The placement in public sector banks and insurance companies is based on competitive examination while private sector banks and insurance companies visit the campuses for placement.

 

Core sector
MBA in core sectors like Power, energy, transportation & logistics, aviation, Oil & Gas, real estate, infrastructure is destined to reach the heights of growth in near future. All these sectors are on the priority list of the government and are to be put on fast track of development. FDIs in real estate, infrastructure, aviation, power may not be ruled out as the economy is crying to have better growth structure in these sectors. Number of national and international aviation companies are waiting for a nod from the government.

A word of caution is there for the candidates seeking admission in these sectors. They have to step in very cautiously as the growth in core sectors cannot be as fast as in other sectors. Although an aviation company can start operating quickly, projects on power plant, oil refinery, rail, road expansion take several years to materialize. Substantial growth in demand in the core sector is a long term process.

Not every B school offering MBA in number of core sectors can provide it as efficiently as the one that offers lesser number of programmes or is solely specialized in core sector.  You can’t expect an IIM to offer PGDM in women entrepreneurship with the same expertise as in Oil and Gas sector. Another aspect is to cross check the placement data of the b school offering MBA/PGDM in core sectors to ensure the credibility of the programme and take the decision judiciously.

Following universities and B schools have dedicated MBA programmes offering specialization in core sectors-

UPES Dehradun offers MBA in Oil & Gas, Power, Energy, Infrastructure, Aviation, Port & Shipping, Logistics & Supply Chain. The University claims to be achieving 80% placement every year.

RICS school of Built Environment is purely focused on real estate. It offers MBA in Real Estate & urban Infrastructure; MBA in construction Project Management; MBA in construction Economics and QS.

The learning experience at both the b schools is expected to be more specific and focused as they offer programmes only in core sectors.

 

USPs could be more but step in with caution

In fact Specialized MBA programmes are like unexcavated mines. Candidates with conventional management degrees are aware about the job prospects but MBAs in specialized sectors have to be very cautious whether the placement in sectoral specialization is picking up or they will remain under employed and whether they may get the job of their taste in these areas.

A lot however depends on future predictions and implementation. It is expected that the job market in specialized sectors will place more demand for sectoral MBAs in 3-4 years from now.

Also read:

IMC2014 Which MBA amongst IIMs, IIFT, FMS, XLRI, MDI gets best placement, recruiters by sector?

 


 

IMC2014B school Placements 2014: Placement trends in top B schools; Know the top MBA Recruiters

 

 

IMC2014 MBA Specialization: Do wonders with lesser known MBA programmes

 

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