Crisis hits business schools in smaller cities

L. N. Revathy Coimbatore | Updated on February 12, 2013

It is probably a do or die situation for B-Schools in tier II and III towns.

“There is a dearth of qualified faculty, coupled with the quality of students that such schools are able to attract. The profile of the students is below average and grooming them is not easy,’ said Dr A.G.V. Narayanan, Professor and Dean of Erode Builder Educational Trust’s Group of Institutions.

In a chat with Business Line, Narayanan said that schools in tier II and III towns failed to attract hirers in the first place. “Placement of students passing out from such campuses is becoming a challenge. And the package that is being offered has been reduced drastically compared to two years ago.”

“Today, head hunters who visit these campuses look for candidates with marketing skills. And the job is target driven,” he added.

“Yet, it is not as if there are no takers for seats in such schools. There is unhealthy competition on pricing strategy. This is bound to result in closure of a good number of management institutes. Only the best would survive,” Narayanan said

Reports show that as many as 120 schools were closed last year and another 160 in the pipeline (all India).

To a query on admissions, he said, “it was fairly good last year, because certain clauses were introduced with respect to MCA admission. This has since been removed. This would affect admission to the MBA programme.”

Published on February 12, 2013

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