| Topic Name: |
McKinsey in decline? |
| Message Name: |
Thought Experiement |
| Date Posted: |
01/31/2006 |
| In Reply To: |
What does it mean that consulting industry placement at Stanford stayed the same over the past 8 years. How do you know that the 'fixed' percentage of the class which goes into consulting is the b&b part of that class?
B&b opt for PE cuz its challenging and rewarding not cuz it pays more.
I think consulting is a default option for many people who are not sure what exactly they want to move into long term. Consider the average time associates spend at the firm. |
| Message: |
Undergrad84:
WRT, ??What does it mean that consulting industry placement at Stanford stayed the same over the past 8 years. How do you know that the 'fixed' percentage of the class which goes into consulting is the b&b part of that class??
If you are willing, follow me through a simple thought experiment with below set of conditions:
1) McK extends offers of employment to Stanford MBA grads that satisfactorily passed the rigorous interview process. Those applicants that get an offer are b&b in McK??s eyes. Also, Stanford grads compete with other MBAs from top universities during the interview.
2) There is no minimum recruiting quota at Stanford. (min_accept = 0, max_accept < = extended offers).
3) Those that gets an offer from McK most likely have gotten offers from multiple companies/industries (On average, class of 2005 got 3 employment offers).
4) If b&b at Stanford with multiple offers felt that McK or BCG/B is not an attractive career option, they will opt for other more attractive offers.
5) If ??4)?? happened every year starting 1997, you will eventually see smaller and smaller b&b??s opting for management consulting and it??s overall placement will deteriorate. However, number of Stanford MBA??s choosing mgnt consulting have been steady for the past 8 years as data show.
Let me paste some relevant statements from previous posts to conclude this thought experiment:
Euc: ????if you look at the employment statistics of Stanford MBAs from 1997 to 2005, you would find that the percentage of management consulting accepted offers changed from 22% to 20% and financial services (IB/IM/VC in 1997; IB/PE/HF/VC/IM in 2005) did not change at all at 25%. Same number of ??b&b?? went into financial services and management consulting in 1997 and also 2005. So stating that the quality level of MBAs have deteriorated recently due to b&b pursuing PE/HF/VC positions seems to be incorrect??data suggests that it has been this way for quite a while, at least for the last 8 years.????
EUC: ?? The phenomena of 'recent' brain drain due to b&b migrating to 1) Tech companies 2) Financial-Banking 3) Entrepreneurship is moot as illustrated by Stanford data showing the industry placement trends have been essentially been the same for the past 8 years??
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