This paper argues against establishing an MBA program at a liberal arts university, contending that such a degree falls outside the institution's core competencies and mission. Instead, the author recommends pursuing a Master's degree in Liberal Arts, which would leverage existing faculty expertise and appeal to undergraduate alumni. The paper applies decision-making frameworks—including mission alignment, order qualifiers, and order winners—to evaluate graduate program expansion strategies. It considers practical constraints facing private institutions, including competition from larger state schools, student preferences for online and flexible learning, and affordability concerns among working professionals seeking graduate credentials.
My recommendation to the Board of Regents is not to establish an MBA program at the university. The primary reason is that, as a liberal arts institution, the study of business does not align with the university's core competencies. I would expect the university's strategy is to establish itself as one of the most prolific and prestigious liberal arts schools in the country.
If the board's primary concern is expanding the student base, an MBA program may not be the most effective solution, especially given the proximity of a larger state school. State universities typically have more established business school infrastructure, lower tuition costs, and existing relationships with local employers—advantages that a newly launched MBA program would struggle to replicate. The competitive landscape for MBA students favors institutions with recognized business programs and strong alumni networks.
An MBA program also introduces significant operational challenges. Staffing a business-focused graduate program requires hiring faculty with specialized expertise in areas such as finance, accounting, organizational management, and business strategy. The university would need to invest in new course development, accreditation, and industry partnerships—all of which represent substantial financial and institutional commitments that diverge from the school's established identity and strengths.
Instead of an MBA program, I would recommend pursuing a different graduate degree: a Master's program in Liberal Arts. This option offers several strategic advantages. Many students who complete their undergraduate degrees in liberal arts would be able to continue their education at the same institution while pursuing advanced study in their field. Since the university has already invested in attracting and recruiting undergraduate liberal arts students, extending their enrollment to the graduate level creates a direct pipeline for continued enrollment and tuition revenue.
A Master's program in Liberal Arts would also be significantly easier to staff than a new MBA program. The university already has a full faculty of liberal arts professors across disciplines such as philosophy, history, literature, economics, political science, and the sciences. These faculty members can serve as advisors, instructors, and curriculum developers without the expense of new hiring. The program can leverage existing course offerings and research expertise while allowing for specialized graduate-level seminars.
While an MBA program could enhance the university's connections to local businesses—particularly if the board recruited local practitioners as adjunct faculty—this benefit comes at the cost of mission drift. A Master's in Liberal Arts maintains institutional coherence while still offering professional development. Many liberal arts graduates pursue careers in law, education, nonprofits, public policy, and government, where advanced study in liberal arts disciplines directly supports career advancement. Additionally, with the emergence of online education and the growing demand for flexible learning options, a liberal arts master's program can be adapted to serve working professionals more effectively than a traditional, campus-based MBA would serve a private institution's unique constraints.
For the Board of Regents to make an informed decision, I recommend they apply systematic decision-making principles. First, they should examine the university's mission statement to identify the institution's primary purpose and core identity. After clearly defining what the university exists to accomplish, the board should assess whether a proposed program—in this case, an MBA—aligns with that mission and falls within the institution's core competencies.
For a liberal arts school with no undergraduate degree in business, an MBA program does not represent a core competency. The institution lacks the foundational business faculty, industry partnerships, and strategic focus that would be required to launch and sustain a competitive program. This lack of alignment suggests that creating an MBA would dilute resources and institutional focus rather than strengthen the university's market position.
The board must also understand and analyze the characteristics of a university that serve as order qualifiers—the minimum criteria that prospective students use to consider an institution as an option. These qualifiers vary by student population. For MBA students, qualifiers might include program accreditation (AACSB), networking opportunities, employer recognition, and flexible scheduling. The board should then identify the order winners—the factors that distinguish one institution from competitors and drive enrollment decisions. As one education analyst has observed, prospective graduate students ask crucial questions: "Is the quality of the education better? Will students have more access to their professors? Will those professors be more distinguished? Do students make important contacts that pay off later in life? Are any such advantages worth going deeply into debt?" (Glater, 2006)
These questions illustrate the complexity of student decision-making in a competitive higher education market. For a private liberal arts university, the potential order winners in graduate education include intimate class sizes, close faculty-student relationships, and a distinctive educational experience—strengths that align naturally with liberal arts values but are not traditional MBA selling points.
"Order winners balance cost, location, and educational environment"
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