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vineet
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bullet Posted: 01/Aug/2006 at 1:25pm

Hi all,

I have been a long time MBA aspirant. I have been working for the last 2 years and have been very keenly observing the kind of role MBAs play (read: choose to play) when they join a professionally run organization. Over the years I have noticed that a burgeoning economy offering fat pay-cheques often prevents fresh MBAs from toying with the idea of entrepreneurship which I believe is what entails when we talk of "taking risk". And come to think of it, it does make sense.
I have friends in all IIMs, actually almost all batches of all IIMs. Let's take a case. My old time Xavier's friend Sawan completed engineering the same time I did. Subsequently, he joined IIM-Cal. And now he joined Union Bank of Switzerland aka UBS (Swiss Bank, for the uninitiated). The investment banking services industry probably never witnessed growth as right now and, needless to say, they have all the money to lure IIM grads to join them.
All decisions should be backed by risk-reward analysis. And joining an established brand at a responsible post with a larger-than-life salary stands more favourably in any such analyses than starting up something new. True, the returns are potentially limited in most organizations which is not the case in a start-up.
The call is yours - whether to go for a "win big or lose your shirt" or a "modest risk and fairly good returns" strategy.
To be or not to be, that's the question..!

Vineet
www.vineet.uni.cc

"Don't be humble.. you're not THAT great."
- Golda Meir
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basant
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bullet Posted: 01/Aug/2006 at 2:08pm
I have been thinking hard on thie debate for quite a while A few conclusions that I am able to draw are
(1) Since a normal graduate does not get a high paying job he wants to bet hard on life. Start a venture or join an existing family business.
 
(2) The MBA Grad who is probably more smart and skillful compared to the normal grad is lured by the six and seven digit pay checks. This is the paradox. SOme body who ought to do something creative is doing exactly the opposite compared to some one who should not be risking his capital (the normal grad).
 
The answer or the answers if you have any more (I am sure people will have a lot of new theories on this):
 
High School economics taught us about Opportunity cost. It is defined as " the next best alternative sacrificed in order to obtain a commodity or service"
 
In the case of a normal grad the opportunity cost was too low (the low paying jobs) so he started a business. In case of our MBA friend the opportunity cost was quite high the high paying job so he went to work.
 
Of course ther would be other factors determining the course of action and it would be interesting to see what they could be.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Ambarish
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bullet Posted: 02/Aug/2006 at 12:27pm

actually no there are plenty of people out there who are employed getting decent salary and are only Graduates. i have observed that a lot of people play the blame game here and the best scape goat that they have is their education or to blame it all on the institution and they will never except their own disability to start a business or even join their family business if that's an option available to them there are a few things that i'll like to mention here as far as the institutions are concerned i have come across a varity of courses that grooms students to start their own business or to develop their family business further then again the question of an mba doing something creative is concerned he can be creative in a job or a business how does that matter.

Again has anyoone thought this that an mba what he will be able to earn in a salaries job from starting he migh not be able to perform that well in the starting years of his own business and the starting years are very important for a man's cofidance if for one reason or another he loses that will be a devastating blow to his cofidence and he can kiss his career goodbye

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prashantmohta
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bullet Posted: 16/Feb/2007 at 9:48pm

is it true that iim pass out joins good growing co. and they keep themselves away from the cyclicals co.

anybody please
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kulman
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bullet Posted: 16/Feb/2007 at 9:59pm

is it true that iim pass out joins good growing co. and they keep themselves away from the cyclicals co. ....anybody please

---------------------------------------------------
Don't know.
 
But I recall a comment from Dr. Marc Faber:"Short the industries which are currently popular with Harvard MBAs"
Life can only be understood backwards—but it must be lived forwards
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deveshkayal
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bullet Posted: 16/Feb/2007 at 10:17pm
Most of the IIMs join Barclays,Lehman,Mckinsey,ICICI,etc mainly in the Financial sector,Investment banking to be specific.
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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basant
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bullet Posted: 16/Feb/2007 at 10:19pm
I have known many  MBA's from almost all the top colleges in the world and I would categorise those schools as  glorified placement agencies.
 
AN MBA by itself will get you nothing it has to be backed by the burning desire to think unconventionally. Sunil Mittal, Kishore Biyani, Dhirubhai AMbani, Narayan Murthy, were not a part of any of these glorified placement agencies. But a company whose CEO is an IIT/IIM combine does well because these guys know how to carry the business along structured lines - not so sure about the initial vision though.
 
Satyam's CEO is a HArward alumni though!
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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deveshkayal
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bullet Posted: 16/Feb/2007 at 10:31pm
AN MBA by itself will get you nothing it has to be backed by the burning desire to think unconventionally - Excellent Basantji.I think there is a book called "What they dont teach you at B-School"
I think MBAs r preferred over CAs in investment banking job.(Talking from my brother's exp.)
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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