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NORTHERN MICHIGAN UNIVERSITY

COLLEGE OF BUSINESS

PROPOSAL FOR A MASTER OF BUSINESS ADMINISTRATION (MBA) PROGRAM

The College of Business proposes to offer a new graduate program. The program is titled: Master of Business Administration (MBA) with the course prefix BUS.

The layout of this proposal follows the outline prescribed in Section 18(c) of the Policies Regarding Graduate Faculty, Courses and Programs document.

(i)  Rationale –

There are four chief reasons for offering this program –

1. Persistent requests from local and regional residents and employers for an MBA program to be offered by Northern Michigan University to meet educational, management, and career needs.

2. An MBA program is a distinctive academic product of business schools and the College of Business is well prepared to offer such a program.

3. The MBA program will strengthen and deepen ties with the broader business community, which will in turn enrich the undergraduate business programs at the College.

4. The College of Business has reached a level of competency, capacity, and resource base that drives this initiative to meet the needs of employers and residents of the Upper Peninsula

Goals and Objectives –

The three chief goals of this program are –

1. To train individuals to be effective managers and decision-makers.

2. To equip individuals with the necessary skills and competencies to enable them to progress in their career.

3. To enhance the capabilities of the workforce in the region and thus contribute to economic development and business growth.

The program is entirely consistent with the University’s strategic goal as outlined in the Road Map to 2015. There, the University articulates its goal of increasing the offerings of graduate programs. The program is also in accordance with the College’s goals to provide business education. The faculty brings forth this proposal after extended and thoughtful deliberations.

Competencies Expected of Graduates –

Students completing this program will be able to -

1. Understand and apply theoretical knowledge in integrated fundamental areas of accounting, finance, information systems, marketing, operations management, organization behavior, quantitative business analysis, and strategic management;

2. Think critically, solve problems effectively, and make decisions strategically across functional areas;

3. Work collaboratively with others in cross-functional teams, and to motivate, lead, and mentor others;

4. Communicate ideas and information effectively and persuasively in business settings;

5. Apply sound decision techniques in an ethical manner to management situations.

Consistency with the College’s (Department) Mission

The College of Business offers a full range of undergraduate programs in business. Its mission is to prepare students for successful careers. The MBA degree is widely seen and recognized as a key academic credential for upward mobility in one’s career. Thus, the offering of this program is fully consistent with the mission and the normal role of a business school.

(ii)  Job Opportunities –

An MBA degree is a passport to a managerial position and a swift rise in the organizational hierarchy. Every organization, large and small, public, private and not-for-profit, employ managers and leaders who have to bring an analytical approach to decision making. It is the most recognized and sought after professional graduate degree in the country. The demand for people with MBA degrees continues to rise.

The Graduate Management Admission Council (GMAC) conducts studies on management education. They report robust demand for MBA graduates primarily for their business management knowledge and their ability to apply that knowledge along with their technical skills to any job or function necessary to reach organizational goals. An MBA graduate with one to five years of work experience is likely to receive greater compensation than are other graduate students with similar work experience. Additionally, MBA graduates typically receive more responsibilities and leadership roles. For more information about job opportunities for those with an MBA degree, please visit GMAC’s website at www.GMAC.com.

In the Upper Peninsula, only Michigan Technological University offers this degree; the focus of that program is on its own undergraduate engineers. The College of Business conducted a survey in Winter 2008 of residents in the Greater Marquette area. Nearly 450 respondents indicated interest in participating in an MBA program.

(iii)  Related Programs –

The College of Business does not currently offer any graduate program.

The MBA program is largely a standardized academic product. In crafting this program, the faculty in the College examined MBA programs in aspirant institutions and those in the broader geographical area (Michigan, Wisconsin, Minnesota, Illinois, Indiana, North Dakota, and South Dakota). The proposed program is consistent with the format of standard MBA programs elsewhere. The notable features of the proposed program are -

(a)  It has a strong emphasis on quantitative decision making

(b)  It emphasizes the relevance of superior communication skills in management

(c)  It has a dedicated emphasis on ethics and social responsibility in decision making.

(d)  It can be taken on both a part-time or full-time basis.

The University offers a Master of Public Administration through the Department of Political Science. The Department has been informed of this proposal. The College of Business believes the student population for the MBA program is different from the students seeking the MPA degree. A memorandum of ”qualified support” from the Dr. Brian Cherry, Department Head, has been received.

(iv)  Accreditation Required –

No accreditation is required for this program. However, the College will seek accreditation from AACSB International – the accrediting body for business programs, in the next accrediting period. This will be in 2015-16. AACSB works in a 10 year cycle with a mid-term review. The MBA program will be eligible for review in 2015-16.

(v)  Programmatic Listing in the Graduate Bulletin –

The program will appear in the Graduate Bulletin thus -

Master of Business Administration (MBA)

Contact Information

Address: College of Business

304 Cohodas Hall

Phone: 906-227-2947

Fax: 906-227-2605

Web Address: www.nmu.edu/MBA

E-mail:

MBA Program Director:

MBA at NMU -

The College of Business offers a graduate program leading to the Master of Business Administration (MBA) degree. The primary objective of this program is to educate future, middle and senior managers to deal with the essential problems of choice, complexity and change in the challenging environment of business. The program is designed to develop critical thinking and analytical skills which the manager can use to take effective decisions and solve organizational problems in a profit-oriented, free enterprise economy. Therefore, the program’s focus is directed toward decision making.

The courses in the MBA are taught by faculty in the College. Classroom instruction is supplemented by visiting business practitioners who provide valuable perspectives and important networking opportunities.

The program can be completed on a full-time or part-time basis.

Program Requirements -

The program consists of a minimum of 40 credit hours of graduate study. The core MBA consists of 10 courses of four credits each. The courses are –

BUS 500 Managerial Communication

BUS 510 Business Law and Ethics

BUS 520 Management Information Systems

BUS 530 Organizations: Structure, Behavior and Human Performance

BUS 540 Marketing Strategy

BUS 550 Business Statistics

BUS 560 Quantitative Decision Making

BUS 570 Managerial Accounting

BUS 580 Financial Analysis and Management

BUS 590 Strategic Management

Every MBA student must complete a strategic analysis research project and report in the capstone course, BUS 590.

In addition two courses will be available to add flexibility to the program in case special topics or visiting professional/academics are available to provide unique opportunities for the MBA students.

BUS 595 Special Topics in Business Administration

BUS 598 Directed Studies in Business Administration

The MBA capstone course is a very important component of the graduate education experience. Graduate students are required to develop a detailed and comprehensive analysis of a company and design strategies to improve its effectiveness. Both for-profit and not-for-profit companies are acceptable. It may be possible that companies to be studied are from the Upper Peninsula of Michigan. Businesses outside the Upper Peninsula can be assigned from the Global On-Line MBA resource data base, with the permission of the instructor. The strategic analysis project will consist of a research investigation, an analysis of the findings and a plan to reposition the company into the future. The strategic analysis will include the following steps.

Develop a Diagnosis. A macro environmental analysis is first conducted to investigate the current state of the economy and the nature of the industry of the company.

Develop a Prognosis. The chosen company is examined to evaluate its history, its strengths, its weaknesses, its opportunities and its threats. Its current standing and key indicators of its performance are projected into the future to determine where it is heading.

Develop Objectives. The student must decide where the company should be heading. The student’s research and creativity will evolve new objectives for the company to achieve.

Develop Strategies. The student must develop concrete strategies that will help to achieve the new objectives.

Develop Tactics. The student must develop the operational and action plans that will be instituted to begin to evolve the strategies.

Develop Controls. The student must design the checkpoints and standards that have to be met to assess the degree of achievement of the strategic plan and to take corrective action.

The Strategic Analysis Research Project and Report will be filed with the Office of Graduate Studies.

Prerequisites -

Several of the courses in the MBA program require undergraduate prerequisites.

At Northern Michigan University, the following courses meet these prerequisites: Accounting ACT 230 and ACT 240, Economics EC 201, Finance FIN 351, Marketing MKT 230, Management MGT 240, Information Systems CIS 212, Managerial Communications MGT 344, Operations Management MGT 325, and Statistics MA 171. (Note that some of these courses may also have prerequisites. MA 103 or MA 104 or MA 105 is a prerequisite to MA 171; CIS 112 is a prerequisite to CIS 212). Relevant professional experience may be substituted for some of the prerequisite Courses. Decisions regarding the acceptability of proposed substitutes for prerequisite courses will be made by the MBA Program Director.

Students can enter the program during the academic year.

Admissions Requirements -

Applicants are required to comply with the regular admission requirements of the College of Graduate Studies. In addition, applicants are expected to have a GMAT score of 500 or higher.

Applicants are required to write an essay indicating why they wish to pursue this degree. The results of the GMAT, the applicant’s undergraduate grade-point average, relevant work experience, and the essay will be evaluated together to determine admission into the program.

Application materials are reviewed by the MBA Program Director and a three person faculty graduate screening committee. Applications are accepted throughout the year.


Those interested in further information should contact the MBA Program Director, College of Business, Northern Michigan University, 300 Cohodas Hall, Marquette, 1401 Presque Isle Avenue, Marquette, Michigan 49855. (906) 227-2947.

Plan of Study -

Upon admission, students will consult with the MBA program director to outline their course of study and select appropriate courses.

(vi)  Admission Requirements

Applicants are required to comply with the regular admission requirements of the College of Graduate Studies. In addition, applicants are expected to have:

·  A GMAT score of 500 or higher.

Applicants are required to write an essay indicating why they wish to pursue this degree. The results of the GMAT, the applicant’s undergraduate grade-point average, and the essay will be evaluated together to determine admission into the program.

(vii)  Requirements for completing the program

Students will need to complete the 10 courses (40 credits) of the MBA program with an overall grade point average of 3.0 or better and complete the research project in BUS 590 Strategic Management, the capstone course.

(viii)  Course outlines

The outlines of the ten new courses, including Graduate Bulletin descriptions are provided below.

(ix)  Projected enrollment

There is demand for this degree in this region. In addition, there are no other ready providers of this program here. Based on assessment of demand, extant faculty capacity to deliver courses and University guidelines on course enrollment minimums, the program anticipates enrolling 20 students in Year 1, 30 students in Year 2, and 40 students in Year 5. The program will be reviewed annually and suspended or terminated after the fifth year if adequate progress is not measured.

(x)  Anticipated costs over the next three years

Staff - The College’s existing faculty will staff the courses that will be offered. The College has sufficient numbers of academically and professionally qualified faculty to teach the courses in the program.

The number of courses to be offered in any semester will vary from 2 to 4. The following chart shows the projected offering of courses and hence faculty needs for three years (assuming a Fall semester start date) –

Year 1 Fall 2 courses 2 faculty overloads $13,000 approximately

Winter 2 courses 2 faculty overloads $13,000 approximately

Year 2 Fall 4 courses 4 faculty overloads $26,000 approximately

Winter 2 courses 2 faculty overloads $13,000 approximately

Year 3 Fall 4 courses 4 faculty overloads $26,000 approximately

Winter 2 courses 2 faculty overloads $13,000 approximately

Note that overload costs depend on a faculty’s salary and the actual amount will be what a particular faculty member earns. The numbers provided here are based on an average of $6,500 for a 4 credit overload course. Also note that in many cases, an adjunct faculty may be substituted as appropriate and they would be less expensive. Actual costs are likely to be lower.

The program will be managed by a faculty member with 4 credits released time annually. There may be a need for adjunct faculty or overloads to cover the course provided as administrative release time. The estimated overload cost is $6,500. Depending on the faculty member filling this position and availability of appropriately qualified faculty, adjunct faculty may be hired and they are less expensive.

The cost of overloads/adjuncts will be paid out of tuition revenues generated by the University through enrollment in this program.

Equipment and Supplies - The program will require the production of brochures and informational materials and advertising/publicity. None of the courses need any specialized equipment. Anticipated annual expenses for publicity, materials, and supplies are $5,000. This cost will be borne by the College out of its regular budget.