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Some universities have prestige. Many more aspire to have prestige. However, prestigious schools generally have huge endowments. It is difficult for schools with minimal endowments to compete with those who have $30 billion. Therefore, three general strategies are common to achieve prestige among those aspirants. First, schools can increase their number of students, thereby increasing funds from tuition and—for state supported schools—state allocations. Second, schools can build revenues by securing government grants. However, about 90 % of government grants go to medicine, science, and engineering. Business schools are not positioned to compete for many grants unless they can link to these disciplines. A third general strategy is to build prestige through high-profile athletic teams. Business schools engage in some activities that seem strikingly like athletic department strategies.
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- Prestige and Prestige-Seeking in Universities
Edward W. Miles
- Chapter 7
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