An important question that many MBA aspirants might have is why are they tested for quantitative and analytical skills in the MBA entrance exams? And this question might be bothering a whole lot of students from the non-engineering background especially.
If we look closely, we’ll find that it is actually in a business organisation’s interest to base their day-to-day decisions on sound logic. Business decisions that are based on emotions, without rational and reasonable deliberation, often lead to emotional and financial problems later.
In cases where a business idea has been provided by a fresh recruit or a junior executive, it is often subjected to critical evaluation and scrutiny by the seniors. Hence, it becomes all the more important for MBA graduates to have strong analytical and logical capabilities.
Often students argue that marketing and HR management streams of MBA are mostly to do with human behaviour, so why is so much emphasis on logic in those streams too? This argument won’t seem appropriate if we consider that every business activity must in fact be backed by decent logic. And anyone who has a good analytical mind will obviously bring more valuable insights to an organisation.
3 reasons why MBA students must develop strong analytical skills
Following are the 3 reasons why it is extremely important for MBA students to have strong analytical skills:
1. All businesses involve data
Regardless of whether you work for a large company or start an entrepreneurial venture, you won’t succeed if you don’t understand and master the fundamentals of data collection and data analysis. Data plays an important role in various aspects of a business, including customer service, sales, accounting and marketing. You should understand not just how data has been compiled, but should also have mastery over its usage, to meet your company’s goals.
2. Businesses utilise data to make sound decisions
Any important business decision, for example, what method to use to improve the bottom line or the right time to launch a new product, can be made correctly if it is based on data driven insights. Regular tracking of sales trends helps business establishments in better understanding their customers’ buying behaviour, which can then be utilised in optimising the marketing strategy. On the other hand, cost and revenue analysis can help an executive uncover new areas of improvement, making the business more productive and profitable. Regardless of the organisation type you work for, you would require the ability to develop and implement data strategies, as it is critical for business success in both short and long term.
3. Being good at analysis can improve your career prospects
You cannot be successful at data analysis if you’re not good at critical thinking and don’t pay attention to the details. These two qualities are highly valued by all the employers these days. To tell you the truth, data analysis has actually become a core competency required in various entry level jobs today. Being good at data analysis is actually the prerequisite for business analysts and digital marketers. Not to forget, these skills can help you advance your career and reach leadership positions.
These are the reasons why all good MBA colleges ascertain the logical and analytical abilities of candidates as a part of their entrance examinations. The whole idea is to help you differentiate yourself from the crowd on the basis of data analysis skills.
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