Fifteen

With just 322 full-time job postings for the MBA class of 2009, and over 70% of those postings only for the months of September and October, things look bleak for the newest crop of MIT MBAs about to launch into the brave new world of American business. In early November, Democracy hit a home-run with a new African-American President-elect. We know he will bring change to America, but we MBAs need to estimate that economic change may not be immediate. Given the quick declining-value of a “new MBA”, we need to look out 2 – 3 years and figure that America may take that long just to recover. Why?  Well, America’s just about exhausted itself. It’s led world-growth via the feeding of its consumption economy for the past 20+ years. We’re economically bloated and we need a work-out before we get back into shape. So, where does a decision-tree thinking MIT Sloan MBA look for the highest expected-value location to invest her precious human capital?

At 141, we recommend that our MIT Sloanie get ready to ride the wave of the next “super” middle-class. Of course, we’re not sure who’s ready to take the mantle, from ObAmerica, but we’re looking at some very interesting locations and wish to share some insights.

China:  What do you do when you have $589 Billion or 4Trillion Yuan lying around? You spend it! That’s right, get out that checkbook and start spending like an American Government. China just announced a stimulus package that will make Nancy Pelosi grip her auto-industry-pandering gavel with trembling awe. You cannot underestimate the amazing ability of the Chinese to throw down. Never mind that 40% of us MIT Sloanies don’t yet speak Chinese. For a piece of that $589 Billion, I think our Sloanie will get past “nihao” and be ready to talk business in any Chinese dialect, as long as it pays a 75% bonus, including housing and transportation. If you’re a 2010, buy an IAP opportunity in China, this January, so you can get a head start on all the HBS kids who are figuring out that it’s time to head east.  Hey, where did Jakeym go?

India:  It’s interesting to note that India has possibly one of the most sophisticated consumer markets in the BRIC region. 1.1 Billion people are getting ready to go shopping in a big way, very soon.  I’m sure at least half know what cool brands they love to consume, already. What are we doing waiting around Cambridge for interviews? We recommend that Sloanies begin to brush up on their Hindi and call the recruiters from Infosys to come back and do another presentation. The last one wasn’t advertised as a 1.1 Billion people business development opportunity.

Brazil:  Did you know that ethanol is still a booming business? Yes, that crash we read about of American ethanol projects going bankrupt due to the financial crisis and ethanol over-production.  That’s corn ethanol! The real Reals are in sugar ethanol and Brazil is consuming it and racing to build up a Latin American powerhouse of shoppers. Portugese is a Romanic language. Our Sloanies have no excuse for adding a ch to every Spanish word they know to make it sound authentic Portugese:  Cuanto Cueschta?  The Brazilians are steaming along and they love to shop for the best brands. Let’s head over and help them live the middle-class dream, MBAs!

South East Asia:  This is a personal 141 Favorite. 560 Million souls cranking out 1.2 Trillion in GDP and now serving Japan and China’s demand for business and services. Welcome MIT Sloan MBAs to South East Asia. Why should Ken Morse have all the fun? While American GDP contracts, expect cheap labor and sophisticated business leadership coming in from China and Japan to continue to help these islands build up a shopping class that is already ready to spend. Did you know that Vietnam is ready for another stockmarket boom?

Professor Das Narayandas of HBS advises his students: Be “A” players in “B” markets. We at MIT Sloan need to see that we’re ready to take on these B markets and add value. Within 2 – 3 years, as America recovers, the international MBAs will have more influence and career options than domestically anchored MBAs. The next “super” middle-class is already running its engine and we MIT Sloan MBAs are the best prepared to help it run smoothly and profitably.