LEEDS SCHOOL OF BUSINESS Overview of MS Proposals
Based on Graduate Program Proposal Outline found at: http://www.colorado.edu/GraduateSchool/academics/new_degree_process.html
August 2013
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Table of Contents Table of Contents ...... i Graduate Program Proposal ...... 2 A. Description of Program ...... 2 1. Describe the Basic Design of the Program 2. What are the Student Learning Goals for the Program B. Concerns to be Addressed ...... 2 1. Bona Fide Need: Student Demand and Workforce Demand ...... 2 2. Role and Mission Criteria...... 8 3. Duplication...... 9 4. Statutory Requirements...... 9 C. Program Quality and Institutional Capacity ...... 9 1. Admission, Transfer and Graduation Standards ...... 9 2. Curriculum Description and Assessment Process ...... 10 3. Professional Requirements or Evaluations ...... 10 4. Institutional Factors ...... 11 5. Physical Capacity and Needs ...... 12 6. Cost Description and Source of Funds ...... 13 7. Other Relevant Information ...... 13 8. Reviewers Comments ...... 14 Bibliography ...... 15 Appendix 1: Addendum Documents ...... 16 Appendix 2: Graduate Business Education Articles ...... 191 Appendix 3: Koelbel Building Classroom Capacity ...... 26
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Graduate Program Proposal
A. Description of Program
This document provides an overview for two proposed MS programs. These programs provide focused training in the areas of Supply Chain Management and Real Estate. As described later in the proposal, these programs are consistent with the University of Colorado Boulder strategic plan and will assist the Leeds School of Business in supporting the campus mission.
This document follows the submission guidelines. For information that pertains to a specific educational delivery area, “please see specific MS proposals” is inserted.
1. Describe the basic design of this program, including its level (baccalaureate, masters, doctoral) and the field of study. Is this an interdisciplinary program?
Please see specific MS proposals.
2. What are the student learning goals of this program? What will a graduate of this program have learned and be able to do? The goals should be sufficiently specific that they can be readily assessed; should the program be approved, the goals should be a basic component of future program review.
Please see specific MS proposals.
B. Concerns to be Addressed
1. Bona Fide Need: Student Demand and Workforce Demand
Business schools have traditionally focused their master’s level training on the master of business administration (MBA) degree, a generalist degree intended to provide general management training and fundamentals in the functional areas of accounting, finance, marketing, operations research, and strategy. Nationally, enrollments in generalist MBA programs are declining and enrollments in specialized master’s programs are growing in response to employer demands.
a. Student Demand: What is the target market? What evidence is there of student demand for this program?
1) Provide enrollment projections for the program for the first five years in Addendum Table 1, following the definitions and directions specified in the table. Also include explanations of the methodology and assumptions used to project enrollment and completion data. Relevant information might include national or regional enrollment trends in similar programs and projected new demand from industry in the service area.
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Please see Addendum Table 1 in Appendix 1. Note that this is a case where the evidence of demand comes more from industry reports and consultations with local business partners than from the existence of comparable programs.
2) Enrollment and graduation estimates should be conservative; if the program is approved and implemented, these figures will be used to determine whether the program has met its goals and should be continued. Programs that fail to meet their estimated enrollment and graduation projections in Year 3 will be thoroughly reviewed for discontinuance by CCHE.
3) For graduate and professional programs, indicate the annual pool of potential applicants. Useful information might include the number of qualified undergraduates in the institution’s undergraduate program, the current percentage of undergraduates, regionally or nationally, continuing on to the graduate level, and the number and/or proportion of applicants to existing programs who are not gaining admission to existing programs.
Qualified students include those with bachelor’s degrees in business, applied math, statistics, engineering, computer science, psychology, economics, statistics, and economics, among others.1 Specific numbers for Colorado graduates and total U.S. graduates in these areas is provided in Table 1.
1Institute for Advanced Analytics, http://analytics.ncsu.edu/?page_id=243.
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Table 1
Number of Graduates by Discipline for 2011-2012
Business Statistics Economics Psychology Engineering Mathematics Science Computer School Mathematics Applied University of Colorado-Boulder 609 - 200 29 56 487 39 428 University of Colorado-Denver 342 - 29 0 11 154 16 108 University of Colorado-Colorado Springs 255 - 12 0 6 107 1 70 Colorado State University 577 4 127 5 14 176 42 306 Colorado State University-Pueblo 153 - 15 - 9 36 - 19 University of Denver 517 - 15 - 5 68 9 20 Colorado College - - 57 - 7 25 7 0 Colorado Mesa University 143 - - - 9 38 14 0 Fort Lewis College 150 - 6 - 7 49 - 3 University of Northern Colorado 242 22 26 142 - 0 Western State Colorado University 120 - 11 - 8 21 4 0 Colorado Total 3,108 4 494 34 158 1,303 132 954
National Total (2010) 347,985 29,090 16,832 97,746 40,107 130,019
As business schools across the United States strive to better serve their students and diversify their offerings, enrollment figures and applicant trends for a variety of degree programs offer insight into the health of the market for graduate academic programs. Overall, as the industry for advanced business education in the United States evolves, demand for particular graduate-level business programs continues to thrive.
Students are increasingly turning away from general graduate school education in the United States. As the New York Times reports, new enrollment in graduate schools fell for the second consecutive year in 2012. For graduate business education specifically, the Wall Street Journal provides that schools are seeing significant negative trends in the volume of applications for traditional two-year, full-time MBA programs. Applications for these programs declined for the fourth year in a row, and the median number of applications worldwide fell 22% in 2012 after a nearly 10% decrease in 2011. For many programs, these declines followed surges in enrollment in 2008 and 2009 as many unemployed workers in the nation sought a haven during the recession. A couple other key factors influencing this trend could be financial considerations regarding the
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increasing debt burden students face from their undergraduate studies and state budget cuts that are forcing public institutions to reduce aid for graduate students, who in some disciplines have traditionally been paid to attend graduate programs. Although MBA applications have been on this downward trend, the number of GMAT test takers in 2011 reached record levels. The US News and World Report suggests this could signal calm before a 2013 graduate business school application storm. Although testing volume spiked in 2011, actual applications to schools did not, which would seem to imply that potential exists for a boom in applications in the upcoming admission cycle. Should such a dramatic increase occur this year, students could expect to see more competition, but fundamentally, a quick turnaround in the volume of MBA applications is not expected.
While traditional MBA programs have not necessarily fared well in the United States, specialized master’s programs have experienced strong growth over the past few years, with about three-quarters of management, accounting, and marketing- and- communications degree programs reporting application increases in 2012. These programs, which generally cater to students straight out of college, have gained popularity as undergraduates clamor to bolster their credentials before entering the professional job market. AACSB International, a global nonprofit organization that works to promote management education, reports that total enrollment in business programs did not experience large changes, but the distribution of enrolled students across levels of education, from undergraduate to master’s to doctorate, revealed more notable trends from 2007 to 2012. Specialized master’s programs, for example, saw a dramatic increase in enrollment of 26.7%, while general master’s programs experienced only 3.1% growth in enrollment over the same time period. Enrollment at the master’s level has been increasing both in numbers and as an overall percentage of total business school enrollment as demand increasingly shifts away from generalist master’s degrees toward specialized programs. Thus, while traditional MBA programs may be experiencing difficulties, certain segments within the graduate management education industry continue to see strong demand. See
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Appendix 2 for a summary of articles discussing specialized master’s programs.
National data demonstrate a shift in demand toward specialized master’s programs. The Graduate Management Admissions Council (GMAC) application trends reports demonstrate a changing demand for MBA degrees. According to the 2010 survey report,
• Forty-nine percent of two-year MBA programs reported fewer applicants compared to 2009. • More than 60% of master’s programs reported increases in the number of applicants.
Similarly, the 2011 survey report states,
• Over 66% of two-year, full-time MBA programs reported a decline in application volume in 2011 compared with 2010. • Specialized master’s programs saw an increase in the number of applications. • Eighty-three percent reported an increase in finance master’s programs. • A total of 69% reported an increase in management master’s programs.
4) Explain how the program design will address the needs of part-time, working students. What specific efforts will be made to retain under-represented groups enrolling in the program?
This is an intensive full-time program not amenable to part-time study.
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The school’s corporate partners, such as Arrow Electronics and IBM, are keenly concerned about workforce diversity issues. It is anticipated that the program will attract diverse students from inside and outside the state of Colorado. Based on feedback from employers, it is expected that diverse graduates will enjoy significant demand from employers. Underrepresented groups will be supported by the Leeds Office of Diversity, as well as by student support systems that will be put in place to help all students successfully graduate from the program. b. Workforce Demand: What evidence is there of need or workforce demand in Colorado for graduates of this field?
1) For programs that aim primarily to prepare students for graduate or professional school, describe the opportunities for admission to graduate or professional programs. What will ensure that graduates of the proposed program will be qualified for these openings?
Not applicable.
2) For programs that intend to prepare graduates for specific occupations or professions, provide demand and employment information.
The Leeds School of Business administered a survey to business professionals in the school’s business partnership and alumni network in January 2013, asking questions pertaining to demand for specialized master’s programs. The school received 24 responses. Responses were primarily from large companies with more than 1,000 employees, representing a range of industries (e.g., manufacturing, finance, consulting, and energy). Respondents included individuals working in human resources (recruiters), management, and other professional capacities within the companies (e.g., consultants, analysts).
The vast majority of those surveyed indicated that advanced degrees differentiate employees from those who do not have advanced degrees, and more than 65% of respondents said their company assists in paying for school through a tuition reimbursement program. Differentiation generally observed by these employers includes workers who have greater knowledge on the subject area, are more focused on goals, have the ability to think critically and analyze data, have greater drive and ambition, and are better prepared. An advanced degree within these companies is most often rewarded with a higher salary, followed by a promotion and accelerated career advancements. A minority of respondents indicated no reward for advanced degrees.
Of the survey responses, 88% indicated immediate needs to hire individuals with master’s-level training, and 96% anticipate this need in five years. These business leaders indicated that between MBA and specialized MS program graduates, MBAs currently comprise the majority of hires. However, in five years, the expectation is for this to reverse, with specialized MS graduates filling more vacancies than MBA graduates.
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2. Role and Mission Criteria.
Is this program congruent with the role and mission of the campus? How does it support the campus’s mission? Does it fit with the campus and/or college strategic academic plan? Describe particular institutional strengths in the proposed program area.
These proposed one-year MS programs at the Leeds School of Business advance both the five- year strategic plan of the business school and the Flagship 2030 Strategic Plan of the University of Colorado.
The master’s programs fulfill a number of goals mentioned in the five-year strategic vision of the business school. The programs will augment the general goal to “enhance the educational experience of Leeds students by developing a culture based on high academic expectations, student engagement, and preparedness for success in business practice.” The specialized MS program will also allow the offering of additional classes that can be taken by MBA students at the Leeds School, providing spill-over benefits to our MBA program and more in-depth, tailored study to the general business administration degree. This feature complies with the strategic initiatives to elevate the quality of the MBA program and to increase the school’s resource base. Another part of the vision is to raise awareness of the school. Leeds will be able to attract a greater array of elite students both from within and outside Colorado communities by offering this differentiated graduate degree option.
Building a distinctive MS program is a specific five-year goal of the Leeds School of Business. The proposed master’s programs will help meet this objective.
The specialized master’s programs fit well with the core initiatives of the Flagship 2030 Strategic Plan. First, one pillar of the plan is to enhance graduate education and increase graduate student population from the current 15% to 20% of total enrollment throughout the university (see appendix). Additionally, there is an initiative to offer alternative degree tracks, with greater emphasis on master’s tracks.
The University of Colorado Boulder acknowledges the trend toward more professional master’s degrees and away from generalist degrees. This trend fits with the highly specialized employment opportunities of today. The university believes that adding more specialized business programs is yet another way for the school to prepare its students for the more specialized professions of tomorrow.
The University of Colorado Boulder also acknowledges that adding more degree programs will provide expanding opportunities to students who wish to pursue concurrent master’s and bachelor’s programs. There is an increasing trend of students arriving as freshman with many college credits completed through high school advanced placement classes. High-achieving undergraduate students will be able to take graduate classes during their undergraduate years and further expedite the process of obtaining a master’s degree and gaining competitive edge in the job market.
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3. Duplication.
Is there duplication with other institutions? If so, are there unique characteristics or features of this program that are not duplicated elsewhere in the state that would justify this program? Duplication is particularly an issue for graduate and professional programs, most especially doctoral level programs, because of the high cost of graduate offerings. Proposals should discuss graduate/professional offerings at other institutions that may appear to duplicate and explain either (1) how the proposed program does not duplicate other offerings or (2) why a duplicate or similar program is justified. These statements should be reviewed for accuracy by the other institutions whose programs are being discussed. How will its implementation affect other institutions in the state? List all similar existing programs offered in the state and region, and explain why existing programs cannot meet the needs of the prospective students (and, if relevant, employers) in the geographic area to be served.
Please see specific MS proposals.
4. Statutory Requirements.
Does the proposed program conform to statutory requirements, such as the 120 credit hour limit for undergraduate degrees and the Student’s Bill of Rights?
Please see specific MS proposals.
C. Program Quality and Institutional Capacity
1. Admission, Transfer and Graduation Standards
a. Describe the admissions requirements of this program. If they are different from general campus or college requirements, how and why are they different?
Please see specific MS proposals.
b. Describe requirements for transfer students. If specific articulation agreements are in place or being considered, these should be described.
Please see specific MS proposals.
c. If enrollments are to be limited, describe the restrictions on enrollments and the reasons for them.
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Please see specific MS proposals.
d. Describe the standards for continuing in the program and the graduation requirements. If they are different from campus/college requirements, how and why are they different?
Please see specific MS proposals.
2. Curriculum Description and Assessment Process a. Describe the program requirements, including total credit hours, credit hour distribution, methods of delivering the program, field experience, and other pertinent aspects of the curriculum. Explain how this curriculum is like and/or unlike the usual curriculum in this field.
Please see specific MS proposals.
b. List all the titles of courses that support this program and explicitly identify all new courses being created for this program.
Please see specific MS proposals.
c. Provide a sample curriculum, including all required courses. If there are several tracks or options, include sample curricula.
Please see specific MS proposals.
d. Describe the assessment plan for this proposed degree. (This section should be related to the student goals outlined in II. A. 2.) The assessment plan should include the goals and objectives of the program for student learning and what knowledge, intellectual capacities and skills will be developed by this curriculum. Describe the assessment tools that will measure how well the program fulfills these goals and objectives. The plan must describe how the department will use student outcomes information and any feedback from employers or from licenser and other testing scores to change teaching methods and/or the curriculum.
Please see specific MS proposals.
3. Professional Requirements or Evaluations
a. Where pertinent, describe any regional or professional accrediting association or licensing requirements that have helped shape the curriculum of the proposed program. Specify the effect of these requirements on the length of the program, restrictions on program content or mode of delivery; and any budgetary requirements, such as minimal staffing levels, and equipment needs.
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The Leeds School of business is accredited by the Association to Advance Collegiate Schools of Business (AACSB). All individual program offerings will meet the association’s assurance of learning and other quality requirements.
b. Identify timetables that have been established to meet the requirements, if needed.
Not applicable to our MS proposals.
c. Describe the qualifications of the proposed programs’ faculty. Include in an appendix short vitae (one-page) for the faculty who will teach regularly in this program.
All instructors currently proposed or planned to teach in the MS programs are or will be full- time faculty and are tenured/tenure-track research faculty or are experienced instructors who have deep expertise in the material of the specific MS curriculum.
4. Institutional Factors
a. Describe how this program will contribute to achieving the department's and campus’s diversity goals.
It is anticipated that these MS degrees will attract diverse students and students from outside the Denver/Boulder area, including international students. An existing program at NC State University appears to have a diverse student pool.2 The very fact that we will be offering programs not currently offered on the Boulder campus will allow for a wider, more diverse set of potential graduate students. These programs are likely to be viewed as attractive to students with a strong math background interested in applied business techniques. The pool of students would be different than the typical MBA pool.
b. How will the implementation of this program affect other instructional, research, or service programs in the institution? How will it affect other campuses?
Implementation of these MS programs will increase the number of elective courses available to our MBA students, thus enhancing their educational opportunities.
c. How will the implementation of this program affect existing resources, including library, computer, and laboratory resources?
These proposed MS programs will have minimal impact on library, computer, and laboratory resources in the Leeds School of Business.
d. Describe any formal relationships with other parties that are anticipated, such as inter-institutional arrangements, resource sharing, cooperative programs, clinical affiliations, etc. Describe and explain the type and extent of the relationship and the
2 Institute for Advanced Analytics, http://analytics.ncsu.edu/?page_id=243.
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resources provided by the affiliating institution. A copy of any draft contracts or agreements should be included in the Appendices.
We anticipate close relationships with industry partners in the delivery of the Experiential Project course in the second semester. This project-related experience will be an important role for our MS program directors. These directors will work closely with our industry partners to insure that our students have the best possible experience, with the hope that some of these relationships will lead to attractive job offers for our students at the end of the program. At this time, we do not anticipate a need for formal contracts or agreements; however, this will be determined with our partners.
5. Physical Capacity and Needs
a. Provide space estimates for program space requirements in Addendum Table 2 based on existing and five-year space planning assumptions and program size data from curriculum and student load projections and projected use of special or dedicated facilities, such as laboratories. The Vice Chancellor for Administration, or other relevant campus officer, must sign this Table to certify the accuracy of the information it contains.
The MS programs pose the use of an additional 18 classroom hours per week over the summer. 27 hours in the fall, and 21 in the spring. The 21 spring hours does not include the two 6 credit experiential courses which will largely take place off campus. All other credit hours are on the books as currently offered courses.
There is currently ample space in the business school to accommodate these new credit hours in the fall and the spring. Between the hours of 8:00 and 5:00 the building currently has at least 16 hours of free classroom space each day in both semesters and on some days significantly more time (see Appendix 3).
The MS programs require no renovation or new construction, and no laboratory facilities (other than existing computer labs) are needed for the program.
Total capacity estimates assume that the two master’s programs are operating concurrently and all classes are being offered. These numbers do not double count courses that are duplicated in individual programs.
Total Summer Capacity Estimates: 18 hours (all additional)
Total Fall Capacity Estimates: 54 hours (27 additional)
Total Spring Capacity Estimates: 54 hours (21 additional)
b. In the body of the application, describe program delivery and program space requirements, identifying additional space or equipment needs. When significant capital construction or equipment needs are anticipated, please provide additional
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information and explanations. c. If program space requirements mandate additional facilities or significant renovation, summarize (1) alternate solutions considered, including, where relevant, leasing or renting space and new construction, and (2) conclusions from relocation and operating cost analyses that indicate the best use of resources. Operating costs, as well as space efficiency, should be considered. Explain contingency plans for operating the program in the event that capital construction funds are delayed for implementing the Facility Program Plan.
There are no anticipated needs for construction.
6. Cost Description and Source of Funds
Before proceeding further, it is suggested that the reader examine the individual proposals at this point. The information provided in those proposals will enhance the understanding of the financial sections that follow.
a. Report cost estimates and sources of funds for five years in Addendum Table 3, using the definitions and instructions provided with the table. All cost and revenue projections for the five years should be given in constant dollars, i.e., do not include an inflation factor.
b. Program costs include both operating and capital start-up needs. Estimates of operating costs should be based on the delivery of the courses and services defined for the program. Administrative costs must also be factored in. Program budgets should be calculated in a realistic manner. For example, additional work generated by the operation, management, and oversight of a new program should not be claimed to be absorbed into the workload of existing staff and faculty without an explanation of what other work will be reassigned or discontinued to make room for the new workload.
The proposal must include a written statement from the Dean verifying the adequacy of resources to support the new program, as outlined in the program’s budget, and confirming that projected resources are reasonable.
7. Other Relevant Information
Campuses may include any other information deemed relevant to support new program proposals. Copies of letters of support from students and community members are not usually necessary or helpful. The Board of Regents may request additional information pertinent to specific issues raised during their examination of new degree program proposals.
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There is no additional information.
8. Reviewers Comments
Include a copy of the external evaluator’s comments and specify any changes that were made in response to the evaluation. If the evaluator suggested changes in the program that are not being made, explain why.
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Bibliography
Office of the Dean, University of Colorado Boulder. (n.d.) Strategic Vision. http://leeds.colorado.edu/dean#strategicvision.
Peterson, G.P., Chancellor, University of Colorado at Boulder. (n.d.) Flagship 2030: A Strategic Plan for the University of Colorado at Boulder. http://www.colorado.edu/flagship2030/downloads.html.
Salary.com. http://swz.salary.com/SalaryWizard/Commercial-Real-Estate-Manager-Salary-Details.aspx. Salary Wizard. Salary.com, 06 2012. December 6, 2012.
Salary.com. http://swz.salary.com/SalaryWizard/Top-Commercial-Real-Estate-Executive-Salary- Details.aspx. Salary Wizard. Salary.com, 06 2012. December 6, 2012.
University of Colorado Boulder. Graduate Student Bill of Rights and Responsibilities. http://www.colorado.edu/GraduateSchool/policies/billofrights.html, retrieved December 6, 2012.
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Appendix 1: Addendum Documents
Addendum Table 1: Enrollment Projections
Name of Program: MS Programs Name of Institution: Leeds School of Business, University of Colorado Boulder
DEFINITIONS: • Academic year is the period beginning July 1 and concluding June 30. • Headcount projections represent an unduplicated count of those students officially admitted to the program and enrolled at the institution during the academic year. • FTE is defined as the full-time equivalent number of those students majoring in the program, regardless of the classes enrolled, during the academic year. • Program graduate is defined as a student who finishes all academic program requirements and graduates with a formal award within a particular academic year.
SPECIAL NOTES: • To calculate the annual headcount enrollment, add new enrollees to the previous year headcount and subtract the number who graduated in the preceding year. Adjust by the anticipated attrition rate. • To calculate FTE, multiply the number of students times the projected number of credit hours students will be typically enrolled in per year and divide by 30. • The data in each column is the annual unduplicated number of declared program majors. Since this table documents program demand, course enrollments are not relevant and shall not be included in the headcount or FTE data.
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ADDENDUM TABLE 1: TOTAL ENROLLMENT PROJECTIONS
Business Specialized MS Enrollments
Year 0 1 2 3 4 5
Real Estate Asset Management 5 10 15 15 15 Construction Management 5 10 15 15 15
Supply Chain Management 10 20 30 30 30
Total Projected Enrollment 20 40 60 60 60
New course and section needs including Summer Tenure Track 4 5 6 6 6 Instructor Ranked 3 4 4 4 4
Attach a brief description explaining the specific source data for projecting the program headcount (e.g., actual enrollment in a similar program at a comparable college).
We have projected these enrollments based on three pieces of information. First there is an extremely large pool of appropriate graduates on the Boulder campus, in the State of Colorado and nationally. In addition we know these programs are extremely popular with international students. Second the articles in Appendix 2 describe the current supply and demand situation in the MS universe. Third while researching tuition costs we looked at program sizes in other schools. The vast majority have programs larger than we are forecasting at enrollment build out. All of these facts lead us to believe that this headcount projection is conservative.
______/s/Richard Wobbekind______9/6/13
Signature of Person who completed the Enrollment Table Title Date
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Addendum Table 2: Physical Capacity Estimates
Name of Program: ______Name of Institution: ______
Purpose: This table documents the physical capacity of the institution to offer the program and/or the plan for achieving the capacity. Complete A or B. ______Part A
I certify that this proposed degree program can be fully implemented and accommodate the enrollment projections provided in this proposal without requiring additional space or renovating existing space during the first five years.
______/s/William H. Kaempfer______9/6/13_____ Campus Capital Construction Officer Date
ADDENDUM TABLE 2: TOTAL PHYSICAL CAPACITY ESTIMATES
Assignable Square Total Revenue Feet Needed Available Renovation New Construction Lease/Rent Sourcea
Type of Space Immed. Future Immed. Future
Classroom (hours) 66 66 N/A N/A N/A N/A N/A N/A
Instructional lab N/A N/A N/A N/A N/A N/A N/A N/A
Offices N/A N/A N/A N/A N/A N/A N/A N/A
Study N/A N/A N/A N/A N/A N/A N/A N/A
Special/General use N/A N/A N/A N/A N/A N/A N/A N/A
Other N/A N/A N/A N/A N/A N/A N/A N/A
Total 66 66 N/A N/A N/A N/A N/A N/A aCapital Construction Fund (CCF), Research Building Revolving Fund (RBRF), Gift (GIFT), Grant (GR), Auxiliary Fund (AUX).
Attach a narrative describing the institutional contingency plan that addresses the space requirements of the proposed program or alternative delivery options, in the event that the request for capital construction or renovation is not approved.
______/s/William H. Kaempfer______9/6/13_____ Signature of Person who completed the Institutional Physical Capacity Table Title/Date
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ADDENDUM TABLE 3: BUDGET ESTIMATES
Business specialized MS Expenses
Year 0 1 2 3 4 5
Instruction 2 new TT faculty @ $200,000 each $0 $400,000 $400,000 $400,000 $400,000 $400,000 2 Faculty Director Stipends @21% of $200,000 $0 $84,000 $84,000 $84,000 $84,000 $84,000 1 new Instructor ranked faculty at $85,000 each $0 $90,000 $90,000 $90,000 $90,000 $90,000 Financial Assistance @$2,000 per Student $0 $40,000 $80,000 $120,000 $120,000 $120,000 2 staff positions at $75,000 each $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 Benefits at 28% of staff expenses $42,000 $202,720 $202,720 $202,720 $202,720 $202,720 Operating @ $350/student at full capacity $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 Enrichment @ $175/student at full capacity $0 $10,500 $10,500 $10,500 $10,500 $10,500 Placement @$700/student at full capacity $0 $42,000 $42,000 $42,000 $42,000 $42,000 Marketing and Promotion $80,000 $100,000 $100,000 $100,000 $100,000 $100,000 Total Expenses $293,000 $1,140,220 $1,180,220 $1,220,220 $1,220,220 $1,220,220
Note that these are direct program expenses and do not included campus or college overhead (indirect costs)
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Business Specialized MS Revenue
Year 0 1 2 3 4 5 Number of students 10 20 30 30 30 At MS Real Estate Rate $48,000 $480,000 $960,000 $1,440,000 $1,440,000 $1,440,000 Number of Students 10 20 30 30 30 At MS Supply Chain rate $36,000 $360,000 $720,000 $1,080,000 $1,080,000 $1,080,000
Total $840,000 $1,680,000 $2,520,000 $2,520,000 $2,520,000
Note the rates are expected average annual tuition totals including summer, spring and fall. Rates are expressed as an expected average for Resident and Non-Resident enrolling students A R/NR differential tuition range of at least $6,000 will be built into tuition tables
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Appendix 2: Graduate Business Education Articles
Article 1: Graduate Business Enrollment Trends
Brown, Jessica. October 29, 2012. “Enrollment Trends at AACSB-Accredited Schools,” AACSB International, http://aacsbblogs.typepad.com/dataandresearch/masters-degrees/.
As business schools across the United States strive to better serve their students and diversify their offerings, enrollment figures and applicant trends for a variety of degree programs offer valuable insight into the health of the market for graduate academic programs. Overall, as demand for advanced business education in the United States evolves, graduate-level programs continue to thrive.
AACSB International is a global, nonprofit organization comprised of educational institutions, businesses, and other entities that work to promote management education. Through its research, the organization also provides key indicators of significant trends facing the business education industry. The ACCSB’s Business School Questionnaire, specifically, provides data on 482 accredited business schools in the United States over a five-year period, from the 2007−2008 academic year through the 2011−2012 academic year. In this study, total enrollment did not experience large changes, but revealed slow growth overall. However, the distribution of enrolled students across levels of education, from undergraduate to master’s to doctorate, indicated more notable trends. In 2007−08, for example, 78.2% of students enrolled at the 482 schools were in undergraduate programs, but by 2011−12, that proportion had decreased to 76.2% (Brown 2012). Over the same period, doctoral enrollment remained roughly 1.0% of total enrollment, while master’s enrollment increased 10.3% (Brown 2012). As a percentage of total enrollment, master’s enrollment accounts for between 20.8% and 23.1%, with the AACSB attributing this growth largely to broader economic conditions, increased marketing on the part of the schools, and, potentially, factors as simple as increased student interest (Brown 2012). At the master’s generalist level, the number of students enrolled between 2007−08 and 2011−12 rose 3.1%. In contrast, specialized master’s programs saw a more dramatic increase in enrollment, 26.7% (Brown 2012). Overall, this AACSB study reveals increasing enrollment at the master’s level both in numbers and as an overall percentage of total business school enrollment over the five-year period, with demand shifting away from generalist degrees toward specialized programs.
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Article 2: Graduate Business Application Trends
Estrada, Rebecca and Paula Bruggeman. “2012 Application Trends Survey Report,” Graduate Management Admissions Council, http://www.gmac.com/~/media/Files/gmac/Research/admissions-and-application-trends/2012- application-trends-survey-report.pdf, accessed January 17, 2013.
The Graduate Management Admission Council (GMAC) serves as a key industry source for comprehensive statistics and timely insights into the demand for graduate management education worldwide. Since 2000, the GMAC’s annual Application Trends Survey has provided information on application volume trends, applicant pool composition, recruitment strategies, acceptance and enrollment rates, and incoming class size. In the 2012 survey, respondents included 527 MBA programs, 193 specialized master’s programs, and 24 doctoral programs in business. Of these respondents, roughly two-thirds were located in the United States, with the remaining 34% located elsewhere in the world. Overall, the GMAC’s 2012 Application Trends Survey reveals that the graduate management education industry is healthy and increasingly diverse.
Positive trends in application volume for all graduate business degree program types, such as general MBAs and specialized master’s, largely reflect a number of factors. First, graduate education is often countercyclical, meaning that as the nation’s economy worsens, people return to school to gain new skills and improve future employment prospects. Consequently, the sluggish economic recovery in the United States following the recent recession continues to incentivize graduate education. Additionally, growing diversity in the types of programs offered and the applicants targeted by recruitment strategies have increasingly played a role in the rising number of graduate applicants. For example, foreign applicants continue to be a source of increased or steady application volume for the majority of programs, and women make up more than half of the 2012−2013 applicant pool for master’s programs in management, accounting, and marketing and communications. Almost half of all MBA and master’s programs combined saw increased applications from women in 2012 compared to 2011 as well. In 2012, 40% of all MBA and master’s programs combined conducted recruiting activities in 82 countries worldwide seeking to attract foreign applicants, most notably in China and India. The 2012 survey also revealed for the first time special efforts schools made to recruit certain types of applicants, such as entrepreneurs (16%), pre-experience candidates (13%), and members of the LGBT community (9%). Together, these trends illustrate healthy growth for the graduate management education industry.
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Article 3: MBA Applicant Trends
Korn, Melissa. September 27, 2012. “B-School Applicants Decline for Four Years,” Wall Street Journal, http://online.wsj.com/article/SB10000872396390444433504577651962999932518.html.
According to the Wall Street Journal, graduate business schools are seeing significant negative trends in the volume of applications for their traditional two-year, full-time MBA programs, while alternative programs continue to thrive. Applications for two-year, full-time MBA programs that started in fall 2012 declined for the fourth year in a row, and the median number of applications worldwide fell 22% in 2012 after a nearly 10% decline in 2011. For many programs, these losses follow multiyear highs that occurred during the recent economic recession and financial crisis as young professionals sought refuge and new skills in academia. Prolonged economic uncertainty, however, has left many prospective applicants wary of the significant investment of both time and money required for a two-year, full-time program. Overall, 62% of U.S. schools reported declines in applications to full-time, two-year MBA programs.
Although MBA programs have not fared well in the United States, international programs have grown dramatically. Almost 80% of two-year degree programs in the Asian-Pacific and Central Asian regions experienced application gains as more local professionals sought graduate certifications and international students considered the regions’ relatively strong job markets and economic opportunities. Part-time, online, and executive MBA programs also reported gains globally, benefiting from workers who want to earn advanced degrees without having to leave their jobs. Even in Europe, where the sovereign-debt crisis, harsh government austerity programs, and stubbornly high unemployment have pushed applications down, the picture was better in 2012 than in 2011. More than one-third of one-year MBA programs in Europe reported an increase in 2012, compared with just 22% reporting gains in 2011. In contrast to the full-time, two-year programs offered in the United States, the one-year MBA degree is the most common type of MBA program offered in Europe.
Specialized master’s programs have experienced strong growth over the past few years, with about three-quarters of management, accounting, and marketing- and-communications degree programs reporting application increases in 2012. These programs, which generally cater to students straight out of college, have gained popularity as undergraduates clamor to bolster their credentials before entering the professional job market. Thus, while traditional MBA programs may be experiencing difficulties, graduate management education in general continues to thrive.
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Article 4: Graduate Business Admissions Competition
Wecker, Menachem. October 15, 2012. “Fewer 2012 MBA Applications May Mean More Competition in 2013,” US News and World Report, http://www.usnews.com/education/best-graduate- schools/top-business-schools/articles/2012/10/15/fewer-2012-mba-applications-may-mean- more-competition-in-2013.
As commonly noted, the admission cycle for full-time, two-year MBA programs starting the fall 2012 semester saw a significantly smaller applicant pool, continuing a downward trend of the past few years. When considered in combination with record numbers of GMAT test takers in 2011, US News and World Report suggests this trend could signal calm before a 2013 graduate business school application storm.
Although testing volume spiked in 2011, actual applications to schools did not. This would seem to imply that there is potential for a boom in applications in the upcoming admission cycle. Should such a dramatic increase occur this year, students could expect to see more competition, although certain graduate business programs will be impacted by the boom more so than others. While online MBA programs, Asian business schools, and specialized master’s programs are increasing in popularity, two- year MBA programs, traditionally the gold standard in graduate management education, are struggling. For a boom to occur in two-year MBA enrollment, applicants need confidence a job will be waiting for them with a salary high enough to merit taking two years off from full-time employment and often a six- figure tuition bill. With economic uncertainty continuing to plague the United States, the confidence simply is not there. Consequently, it is likely that more people will be applying to part-time and one-year alternatives, as well as the specialized master’s programs that are typically completed earlier in one’s career. As well, two business trends that US News observes in the post-recession economy are the growth of entrepreneurship and a decline in high finance jobs with the tarnishing of Wall Street’s glamor, both of which dampen the demand for MBAs that require a full-time, two-year commitment.
Fundamentally, a quick turnaround in the number of MBA applications is not expected. Although fewer competitors can mean better admissions chances for those pursuing such programs, the opposite is likely to hold true for students applying to alternative programs, such as specialized master’s programs, where growing demand could mean a spike in competition in the coming cycle. Across the board, since GMAT test scores are valid for five years, the gap between the numbers of test takers and applications could mean that graduate business school aspirants are holding back and waiting to see where the job market for those with graduate business degrees is heading. If would-be applicants are not inspired by the state of the market next year, there may not be a boom after all.
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Article 5: General Graduate School Trends
Rampell, Catherine. September 28, 2012. “Enrollment Drops Again in Graduate Programs,” New York Times, http://www.nytimes.com/2012/09/28/business/new-enrollment-drops-again-in-us- graduate-schools.html?_r=0.
Students are increasingly turning away from graduate school in the United States. As the New York Times reports, new enrollment in graduate schools fell last year for the second consecutive year in 2012. The declines followed surges in enrollment in 2008 and 2009 as many unemployed workers sought a haven during the recession. A couple of the key factors influencing this trend could be financial considerations regarding the increasing debt burden students face from their undergraduate studies and state budget cuts that are forcing public institutions to reduce aid for graduate students, who in some disciplines have traditionally been paid to attend postgraduate programs.
The number of students enrolled in master’s and doctoral programs (excluding law and certain other first professional degrees) declined by 1.7% from fall 2010 to fall 2011. Among U.S. citizens and permanent residents, matriculation declined by 2.3%, while temporary residents actually increased their enrollment by 7.8%. Temporary residents made up 16.9% of all students in U.S. graduate schools and that figure has been growing as foreign governments pay for more of their citizens to obtain education in the United States, particularly in technical areas such as the engineering disciplines, in which temporary residents represented 45.5% of all students enrolled in graduate programs in the United States.
These enrollment changes in 2011 varied by discipline, with education having the biggest drop in new graduate enrollment, at 8.8%. The next sharpest decline was in programs for arts and humanities, where new graduate enrollment slid by 5.4%, reflecting potentially poorer career prospects for graduates. Health sciences, in contrast, experienced a significant increase in enrollment. The health care industry continued hiring consistently and robustly during the recession and continues to do so throughout the struggling recovery. The number of new graduate students studying health care rose by 6.4%, a slightly slower growth rate than the average of 9.8% over the last decade. Additionally, while total enrollment for graduate school declined, the number of applications rose by 4.3%, representing the sixth consecutive year with an overall increase in application volume. Thus, in general, students in the United States are increasingly pursuing career opportunities rather than graduate school following their undergraduate studies, but certain disciplines continue to fare better than others.
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Appendix 3: Koelbel Building Classroom Capacity
TABLE 1: HOURS OF ROOM VACANCY DURING THE FALL SEMESTER
Classroom Monday Tuesday Wednesday Thursday Friday 102 7 6.25 7 6.25 13 S110 2 7.5 6 7.5 7 S125 8 3 3 4 14 S127 5 2.5 8.5 2.5 6 Fleming 8 6.5 8 6.5 14 210 6 6.25 6 6.25 8 220 1 3.25 2 3.25 6 230 7 2.25 7 2.25 7 235 7.75 5 7.75 5 9 255 10 6.25 3 6.25 10 300 8 8.5 8 8.75 8 302 4 5 4 5 10 308 3 6.25 3 6.25 8 320 (lab) 1 6.25 1 2.25 6 330 2 4.75 7.75 5 10 340 3 3.75 3 3.75 10 375 4 3.25 3 1.25 6 Note: Based on the hours between 8:00 am and 10:00 pm.
TABLE 2: HOURS OF ROOM VACANCY DURING THE SPRING SEMESTER Classroom Monday Tuesday Wednesday Thursday Friday 102 5.25 6.25 5.25 6 7.25 S110 3 4.75 5 4.75 14 S125 6.75 2.5 10 2.5 6.75 S127 8 6.25 3 7.75 6 Fleming 6 7.5 6 7.5 14 210 6.75 1.25 6.75 1.25 5 220 3.25 2.25 2 8.25 6 230 1 2.25 1 6.25 7 235 6 7.5 6 7.5 9 255 6 6.25 2 6.25 9 300 11 6.25 11 6 8 302 6 6.25 5.75 6.25 8 308 6.75 6.25 6.75 1.25 9 320 (lab) 8.75 5 8.75 5 6 330 8 5 8 5 6 340 8 6 8 6 8 375 7.75 6.25 7.75 6.25 7 Note: Based on the hours between 8:00 am and 10:00 pm.
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