TYPES OF MBA SPECIALIZATIONS
The preliminary phase of an MBA program, usually the first year in a two year MBA program, is devoted towards the conclusion of the core courses. These are intended to erect a sturdy foundation of the fundamental concepts across the different management subjects. During the latter part of the program, you can choose to specialize in a particular area.
There may be numerous factors that influence a student’s decision regarding the area they wish to specialize in. Depending upon their priority, they may choose a field as per the market demand and job availability, their interest area, preferred job profiles and the compensation package.
MOST POPULAR MBA SPECIALIZATIONS
Some of the most popular MBA specializations in no particular order are as follows:
- Marketing
- Human Resources
- Finance
- Information Systems
- Consulting
- Entrepreneurship
- Operations Management
This article will analyze each of them in detail and discuss their pros and cons.
- Marketing
The increasing competition in today’s world has necessitated the need for competitive positioning and excellent marketing skills including the ability to differentiate products and create a niche for their own company in order to sustain long-term profitability for one’s own products or services. The marketing department plays a crucial role in any organization as they are responsible for bringing in new businesses, growing the revenue, increasing market share and contributing to the company’s growth and profitability.
Students opting for this specialization will be able to get insights into various key areas required for every organization and corporation, some of which include market research and analysis, competitive analysis, consumer behavior, customer analysis, business ethics, product management, brand management, advertising, digital marketing and e-commerce.
Whether the student’s interest area lies in market research or advertising or sales and distribution of FMCG (Fast moving consumer goods), consumer durables or whether they would like to work in IT sales, media, marketing of various services, internet marketing, an MBA in marketing will give them the chance to explore jobs in a wide variety of sectors. An MBA in marketing will help the student enhance their skills and knowledge in the field of marketing, advertising, public relations etc.
- Human Resources
A specialization in Human Resources helps students understand how to acquire, manage and retain workforce within an organization in a systematic and organized manner. This area aims to provide students with the knowledge and ability to manage employees and execute the related work processes within a company covering various aspects including recruitment, selection, training and development, designing jobs, assessments and motivation (promotions/rewarding performance of employees), health and safety, compensation and managing exits from a company.
It also involves managing relationships or any issues arising between the management and the employees. They have to ensure that a cordial relationship exists between them for the smooth functioning and the success of the organization. They may also be required to take charge of various activities like get-togethers or off-site visits which may be an integral part of the office culture. Human resource management will teach the student recruiting, team building, training, performance updates, employee policy, salary, benefits and increments, employee health and safety as well as staff amenities. If the student has got good people skills and can handle tough situations well, then they can go a long way in this field.
- Finance
This area is one of the most popular choices for MBA students today. As per Top MBA, it accounts for around 22% of the post-MBA career choice. The irresistible pay packets offered in some of the finance-related jobs may be the responsible for the high influx of MBA grads into the finance stream.
This specialization assists students to get a meticulous insight into how the financial world operates, the assorted financial theories and how these can be applied to solve the various business problems. The student’s career choice could be in any of these areas which include investment banking, asset management firms, hedge funds or private equity, portfolio management, credit risk management, hedge fund management or derivatives. Even the non-financial firms or companies would have their in-house finance department which would provide various job opportunities in finance.
- Information Systems
The use of technology has extended to almost every sector and industry which is why there’s a growing demand for professionals with a combination of business and advanced technical expertise.
The specialization would help students to efficiently manage e-commerce so that they have a thorough understanding of the changes in the competitive business environment. They will gain the technical knowledge of emerging technologies in the IT field. The various areas that may be covered in this specialization include systems analysis, network security, data analytics, supply chain management, e-business along with managerial decision-making as well as project management.
- Consulting
Consulting is another favorite choice, perhaps a dream destination for some. The high profile jobs offering fantastic salaries with perks and the opportunity to travel places is primarily responsible for the allure surrounding this profession. Consultants are hired when an outsiders’ opinion and expertise is needed to provide solutions to specific problems or challenges faced by the organization or take charge of projects that may be beyond the capacity of the internal staff.
There is a range of sectors associated with the consulting profession including the popular ones like strategy consulting, IT/technology consulting, operations consulting, boutique consulting to the lesser known areas like HR, investments, public relations/media, education or advertising. Those opting for this profession may be able to brag about the extensive variety of projects that they get to handle for various customers in a variety of industries or environmental locations. However, the student needs to examine the working hours as some of these areas may cause their work-life balance to go for a toss.
- Entrepreneurship
This concentration involves developing the knowledge and strategic skills and business concepts for launching their own start-up and networking with others with an entrepreneurial vision. Entrepreneurs face the challenging task of building a business model with the available limited resources.
The curriculum combines theory with real-world projects so that you are aware of the possible roadblocks and know ways to successfully handle different situations and take the right decisions. They would be able to use their creativity and analytically assess the market scenario to create a business plan. They will be able to interact with successful entrepreneurs and learn from their successes and failures.
- Operations management
The knowledge of operations management would empower students with the expertise required to efficiently manage the entire system related to manufacturing or services in a manner that the organization has a competitive edge over others. The newer perspectives and the analytical skills brought in by the MBA grads can help address the various issues faced towards managing the entire process which includes product design, manufacture, supply chain management, quality control, and co-ordination between various teams including various decisions like outsourcing.
Companies nowadays call for a innovative kind of Supply Chain, Logistics or Operations manager and this requirement has led to the formation of an MBA in Supply Chain Management or Logistics & Operations. Operations Management means managing the operating core of an organization and the activities associated with creation, production, distribution and delivery of the organization’s goods and services.
Despite the fact that the above specializations are usually the more popular choices, there are also variety of options offered depending on what the b-school the student finally opts for, offers.
LIST OF MBA SPECIALIZATIONS BASED ON INDUSTRY
While the earlier list focused on functional specialization, the student could also have an industry focus. Here is a representative list of industry specialization.
- Health / Pharmaceuticals / Biotech
- Media/entertainment/sports
- Non-Profit
Below is an overview of the 3 mentioned above:
Health / Pharmaceuticals / Biotech
This is for those professionals intending to pursue their careers in pharmaceuticals, healthcare, diagnostics or the biotech industry. It covers the various aspects including legal, ethical and regulatory aspects of the pharmaceutical sector as well as product management and marketing research for introducing new products in the market.
Media/entertainment/sports
This specialization prepares students for a management career in media or other creative streams. It equips you with the knowledge of various key factors in the area of media management. The topics taught may include the following: music, publishing, theater, sports, radio among others.
Non-profit
The focus is on preparing students to contribute to the social sector. They learn the required skills for the success of their non-profit organization including various community change solution, managing fundraising, marketing and fund allocation and leadership skills.
Other specializations include international business, strategy, supply chain management or construction management.
While choosing an MBA specialization area, it always works in the student’s favor if their interest is aligned with the career choice. If the student chooses a field only for the glamour or the salary associated with it, it may be possible that it wouldn’t sustain their long-term interest and they may experience burnout after a few years of work. Hence, the student must take his time to think and use his internship opportunities as a testing ground to check their comfort level before finally taking the plunge.
