Why MBA?

Why MBA? The usual answer to this very often repeated question is “Sir, there is a lot of
scope to MBA”. The next logical question follows “What is scope?” Very few manage to
answer this with any effect. It is not that they do not know the answer, but they cannot
put in proper words to express correctly. Probably this is the first reason to pursue MBA.
An MBA is trained to express correctly through proper presentation. Scope has a wide
spectrum, but commercially it means that MBA can get a job, faster than a mere graduate.

Many treat MBA as any other degree. It is not so. It is much more, actually a way of life,
as it teaches the students to have a productive approach to situations in life, both on
professional and personal levels.

In two years at the institute, initially the students are exposed to the theories of
management. At the intensive levels he learns to apply the theory learning’s in the
practical live situations. He understands the difference between a book and the life.

A more potent dose comes in the form of SIP-Summer Internship Program. The gap
between the perceived scenario in the eyes of the interns and the actual conditions
prevailing in the heat and dust of the industry is too big and quite complicated to be
explained. The feeling can not be effectively transferred and has to be experienced
personally. Each intern would have a different idea and response.

Initial resistance from the organizations getting converted in the open arms acceptance is
a near miracle for all the interns. That somebody can depend on them for something
worthwhile is a new experience and many of them have openly expressed their happiness.
They have realized that working, hard working and smart working have one thing
common which is working. Working against the odds is what is needed. The value of
extremes is best explained when we see a diamond. Chemically it is still the same old
carbon, but due to extreme conditions of temperature and pressures, and more
importantly withstanding them, the carbon gets evolved. It is already a diamond now and
yet nobody notices it. Further, it has to be cut, checked for flaws, and polished to become
the most sought after option the money can possibly buy. Diamond is the best example of
value addition.

Does it mean that each MBA is really equipped to answer the calls of the business world?
Mostly yes. However, similar to the other disciplines only those who learn better can earn
better in terms of money and respect. During my association with what is now popularly
addressed to as ‘The Corporate World’, I have learnt and unlearnt many things. Many old
concepts are still valid while quite a few have been replaced with more contemporary
ideas. The process continues today and probably would do so for the years to come.
People talk of management in their daily routine and expect the others to understand what
they say. However, it is sadly felt that very few have a clear-cut idea about the
management and the real potential of this wonderful process. Why do we need any
management? What is the real process? What we have presently, as management science
is it really sufficient for the fulfilling the needs of the ever-expanding needs of the
business? What are the daily inputs for upgrading the existing systems? Most
importantly, we feel that we know the management through its basic components of
planning, organizing, staffing, leading as well as the control, and we promote the same. If
everything is so well planned, and further implemented, why things go wrong? The
answer to this WHY is probably the real management. Most managers would tell you that
they are paid more mainly owing to their capacity of taking on the job decisions and
handling crisis situations.

Let us take a very common example.

There is a small tea vendor who is happy selling 100 cups of tea and supporting his
family. He may not know any management theory but he still is doing right things
inadvertently.

Now for a big company which wants to sell tea in the entire country and may be even in
the world, how does the process change?

Understanding Business in a simplified way:

Tea per day/ per area of a city 5000 cups

Tea sold per day/ per area of a city QTY IN CUPS

1 AREA 5000
10AREAS IN A CITY 50000
100 SUCH CITIES 5000000
50 SUCH COUNTRIES 250000000

Now to operate this you would certainly need some doing to meet the requirements.

You may do following:

You would buy daily 20 grams of sugar 250000000 cups.

. You would buy daily 10 ml of milk 250000000 cups.
You would buy daily 05grams of tea 250000000 cups.
You would buy daily 75 ml water 250000000 cups.
. You would buy daily paper cups 250000000 cups.

You would need following quantities on a daily basis

Sugar 5000 MTs Daily

Milk 2500 KLs Daily
 Tea 1250 MTs Daily
Water 18750 KLs Daily
Cups 25000, 000 UNITS Daily

1. You would need at least 5000 places where tea would be served.
2. You would need at least 5 employees per joint. (5x5000)
3. You would need at least Approx. Rs. 100 crores on a daily basis.

Remember we are still on a daily basis, to get a real idea, multiply the numbers by 365
days

Now if you feel this is manageable then I would just add one more variable.

3 different types of tea

• Cold tea
• Cold lemon tea
• Hot masala tea

Can you now calculate what you have to do? Is it a simple triplication or some thing
extra?

Further I decide that I should at least get Rs. 2/- per cup as my net profit

The next is the addition of Eatables (at least 15 variants)

• -Aerated drinks,
• -Snacks,
• -And combo meals
• So on and so forth

We are still talking only about one aspect of management, which is procurement and
production. When we add marketing, distribution, promotion, competition, shares,
capital, future plans, return on investments, employees and their performance,
motivation, leadership and other aspects we might feel a bit confused and at a loss of any
clear understanding.

Things can go really out of hand and it is at this stage you would be happy that you have
some formal education in management.

So is management really a magic wand? May be or may not be! The magic wand by
itself has no charisma. It takes a magician to create the magic. So you may be the
future magician with “MBA” as a magic wand in your hand.

***
The author is a Soft skills Trainer at INC Nagpur