KNOXVILLE NEWS SENTINEL

February 24th, 2002

MBA Courses Grow

Schools add programs as well as students

By Bill Brewer, News-Sentinel business writer

Area colleges that have beefed up their graduate business programs to attract more students are starting to see a return on their investment.

The number of students who are returning to school for a master’s degree in business administration is rising. And the variety of MBA programs offered is also on the rise.
Traditional day courses are giving way to part-time programs tailored to professionals who can’t afford to take leave from work. They can only squeeze in classes at night or on the weekends.

The University of Tennessee’s business college has added a ProMBA course to its portfolio of graduate programs. The university already offers a day program as well as one for high-level executives and another for physicians.

ProMBA is a 16-month course that meets on weekends and an occasional weeknight. There are 26 students in the current ProMBA class, which is the fourth one, and enrollment has held steady at between 26 and 29, said Carolyn Cuddy, program director.

Cuddy has seen interest in UT MBA programs increase in recent months, possibly due to the recession. Studies indicate that college enrollments swell during a poor economy.

“I don’t know if it’s the economy or what, but I’ve been swamped with calls,” Cuddy said, pointing out that applications to UT’s day MBA course go up during bad economic conditions. “You always see an increase in applications during poor or uncertain economic times.”

She said that the Physician’s MBA course has had a 40 percent increase in January enrollment and the Executive MBA course had a 12 percent January increase.

The day course takes 17 months of full-time study to complete and has a full-time internship built in. In-state students are charged UT’s yearly tuition of $3,874 plus fees and books. Out –of-state tuition is $11,570 a year plus fees and books.

UT’s ProMBA course costs $25,500; a physician’s MBA costs $48,000; and the Executive MBA costs $39,500.

While most students consider those costs high, Cuddy said it’s a bargain compared to universities of similar size.

“In this region there is nothing similar. Ours is very reasonably priced,” Cuddy said.

Entrance requirements for most area graduate business programs include an undergraduate grade point average between 2.5 and 3.5, a graduate admissions test, several years of work experience, a written essay, and references.

Laptop computers increasingly are a requirement for MBA courses as distance learning grows in popularity. Distance learning allows students to connect to a school’s Internet site where they can access assignments and participate in classes from remote locations.

UT requires laptops, which are handy since more students are outside Knoxville, Cuddy said, noting that students are from the Tri-Cities, Chattanooga, Nashville, Cookeville. She said applicants for the next ProMBA class in August are from Asheville, N.C., Cincinnati, and Northern Georgia.

Once enrolled, courses involve economics, accounting, finance, statistics, marketing, management, business law and special projects.

Lincoln Memorial university is another area college with day and part-time professional MBA programs at its Harrogate campus and in a Maryville High School satellite location.
Tusculum College in Greeneville doesn’t offer an MBA but does have a master’s degree in Organizational Management through an evening course.

Dr. John Sellers, dean of LMU’s DeBusk School of Business, said interest in the college’s MBA program has been steady but officials are hoping to increase enrollment by opening a satellite campus in West Knoxville. The Maryville High School program would relocate there.
He said LMB is also adding a health-care management MBA course.

“We’re trying to make it as applicable to the workplace as we can,” Sellers said of the 36-hour, two-year MBA course that costs $9,720.

Tusculum’s 18-month course is one night a week from 6-10 p.m. and costs $9,180.

“Ours is an incredible bargain. Hopefully tuition is going to go up. I’ve been recommending that. But the college is concerned about meeting the needs of (Appalachian) regional students. It will continue to be one of the more affordable programs, but now it’s a real bargain,” he added.

Carson-Newman College in Jefferson City only offers graduate programs in education and nursing. Hiwassee College in Madisonville and Maryville College just offer undergraduate degrees. Pellissippi State Technical Community College and Roane State Community College only offer two-year associate degrees.

Vanderbilt has also seen an interesting rise in its MBA applications. Todd Reale, Vanderbilt admissions spokesman, said overall applications are up 6 percent, but domestic applications are up 35 percent while international applications are down 20 percent.

Reale said the lower number of international students could be influenced by the Sept. 11 terrorist attacks, which affected student visas, as well as international economic conditions.

Vanderbilt’s Executive MBA program costs between $65,000 and $66,000.

Graduate enrollment at the mater’s level is primarily a part-time activity now, according to the U.S. Department of Education’s National Center for Education Statistics.

The education department’s statistics found that in the mid-1990’s a majority of MBA candidates were part-time and considered themselves primarily employees rather than students.

Also, the number of MBA degrees awarded between 1987 and 1998 increased 44 percent nationwide. The center said the largest numbers of graduate degrees were conferred in education and business during that time.

Cuddy believes professional advancement and salary growth are also fueling interest in MBAs.

Jeff Simpson, director of marketing for Knoxville Sports Corp., graduated from UT’s ProMBA program in December and has already seen a dividend.

“I just got a raise after having completed the program successfully,” Simpson said, noting that several classmates have received promotions and job offers since graduating.

Simpson, who is staying with the Sports Corp., said the challenge is to use what he learned to improve the company’s performance. “As the company grows I’m confident it will pay off for me down the road. I’ve had several job offers since graduating.”

Simpson, who paid for the MBA out of his pocket, said the 16-month regimen of 40-plus hours of work with 20 hours of weekend class-work was physically and mentally taxing – but his only recourse for a graduate degree.

“It was really a tough adjustment period,” he said. “I really like my job. The prospect of leaving my job to get an MBA was not appealing. Ir I take myself out of the loop for a year and a half, it takes me out of the growth that I’m preparing myself for.”