Investing in MBA

Introduction

MBA is considered a strategic investment by many people but due to its availability its worth has diminished over the decades and now the highest ranking schools complement the need for scarcity by making it expensive. The corporate world follows the trend by paying salary premiums according to the cost used to obtain it.

Alternative method for choosing Schools

The decision to join a particular school is related to the cost. People will choose according to the affordability of the school to them. Now when there is backlash such that the cost determines the probability of your success, then there is no other better method. Because cost is being used twice; to determine salaries also access to schools.

The next alternative method would be to use the experience someone has to choose the school; “as having experience in the field has more weight than MBA.” (2011 JobStreet.com) The individual would still use MBA as a hedge against competition while having a comparative advantage by holding both qualifications.

Risk of pursuing MBA

Just like an entrepreneur a person pursuing an MBA takes on chances of either gaining or losing. And these chances being determined by cost just like gambling where a higher cost a higher prize which could also turn into greater lose. With rising costs the duration required to break even becomes lengthy. The opportunity cost of time spent at school becomes a consideration for you will be spending when you ought to be earning. MBA is known to add value to individuals who are at the top of their careers while mid Career College graduates add no value to their bargains for higher salaries. Perceptions about MBA have changed to employers.

Conclusion

Cost shall still remain a major factor in choosing schools while top ranking schools sell them like brands. As a long term investment either it will finally pay off one may not lose completely.

Cumulative voting in stocks

Introduction

Cumulative is where by the shareholders are granted as much votes as there are seats to vote either to one candidate-a bullet vote or cast the votes among individuals but not to all of in some cases. Sometimes the votes are divided or given weights according to the number of shares that someone has.

Advantage of cumulative voting

Cumulative voting empowers the minority groups to have a voice in the ballot. If the minorities are well organized they can get in a considerable number of seats to represent them.

Disadvantages of cumulative voting

Cumulative voting is usually confusing (Kenny D 1976) and usually results in voters not utilizing the opportunity accordingly. The few individuals who may be elected by the aid of the minority may only end up as an opposing and disruptive voice in the board of directors.(Romano J, New York Times July 17, 2005)

Voting as an individual and as for an institution

The statutory rule which in most cases is to vote by the number of shares is considered fair as the person who has the most has the most to lose or gain. In common sense they deserve to be given a hand to influence decisions in the firm because in the case of loss they are the big losers. But the minority may also add up to a group of vested interest who too deserve to fill a seat. Cumulative voting may allow us a voice but it is not the best presentation. In the case for voting as an institution, my decision would not change I would still vote against the change as voting by shares is the best. Though the big stakeholders may make deals to merge votes so as to influence decisions of the board, their drive is still gain which we share and if the individuals share holders have equivalent share holdings they can cast their votes as they wish to elect their members.

References

1. Jay Romano “When the minority rules the majority” New York Times July 17 2005
2. David Kenney “No cumulative voting”1976 Illinois Issueshttp://www.lib.niu.edu/1976/ii761112.html
3. http://www.jobstreet.com.my/learning/mba2.htm