09.01.08
Can an alternative entrance exam break the GMAT monopoly at top business schools? The group behind the GRE is giving it a try
While taking the GMAT, which is produced by the Graduate Management Admission Council (GMAC), is a time-honoured rite of passage for virtually all students seeking admission to top business schools, the Educational Testing Service (ETS), which administers the Graduate Record Exam (GRE), is taking aim at the lucrative business school market by pitching the GRE, which is used by a wider range of graduate schools, as an alternative to the GMAT.
ETS points out a handful of benefits to using the GRE:
Fishing in the GRE Pond
"Once they realise that they don't have to take another test to apply to business school, they are going to hedge their bets and explore both opportunities," says David Payne, head of the GRE programme for ETS.
However, GMAC doesn't see it that way. GMAC President David Wilson acknowledges allowing the GRE for business school admission would likely expand the applicant pool, but a larger pool is not necessarily a better one, he points out.
‘If time were limitless, then the larger the sample, the better. But if time is a constraint, then you want to be sure you are fishing in a pond where there are fish you can eat,’ Wilson says. ‘Are some schools fishing in the GRE pond? Sure. We haven't seen results. We still believe we offer a stronger, better test.’
It's not clear how many schools are accepting the GRE or considering it. Among those already fishing in that GRE pond are some top-tier business programmes—namely Stanford and MIT's Sloan School of Management.
But GMAC's near monopoly on the market has complicated the process. The council's membership policy states ‘requiring the GMAT exam as part of its admission process’ is part of the minimum criteria for every GMAC member school, including Stanford and MIT.
Further information
Real the full story on the Business Week website.