Sixty years ago on
Feb. 6 1954, more than 1000 people set down in the different places all over
the world to take a test for the first time. It is the Graduate Management
Admission Test, and usually we simplified it as GMAT. Actually, it is an entry
exam to the best business school in the world.
Back then, the 1291 perspective
students paid just $10 each to take the paper exam, and it only offered 3 times
a year in 5 different countries, and candidates had to wait 3 to 4 weeks to get
their results. Only 54 business schools accepted GMAT scores at that time.
Today, each test taker
have to pay $250 to take a computer test of GMAT and if they want their results
to be sent to more than 5 universities, there is an additional $28 charge for each score report.
The test is offered year around at more than 60 sites in 113 countries. Anxious
test takers receive their scores within 5 to 7 days and more than 1200
universities all over the globe require GMAT for admission.
The growth of the
test reflects the spectacular rise in popularity of the MBA degree; meanwhile,
the GMAT becomes a hot product. For the organization of Graduate Management
Admission Council, profit margins on the exam even are better than margins that
Apple makes on the ipad and the iphone. GMAC says it collected $87.7 millions
in fees in 2012, yet cost the organization only $45.7 millions to administer
the test, according to the documents filed with the International Revenue
Service. The effective percentage of profit on the actual exam is roughly
47.9%, nearly 11 points higher than Apple current percentage of profit.
Such a non-profit
organization can be so successful due to the fact that nearly monopoly on the
entrance tests for graduate business programs. People have to take the test to
apply for the best business schools. However, there is a question that whether
you passed the GMAT that means you have sufficient professional business
ability to be one of an excellent business school or not. Actually, some
business deans also express concern that the GMAT fails to measure attributes
of candidates that as important as quant and verbal skills. Even some experts
consider that the GMAT mostly measures analytical skills, but if you think
about the leadership, innovation, and creativity, the GMAT doesn’t measure
that.



