OUBS MBA Strategy module

In October I completed the Strategy module of the OUBS MBA - very interesting module that stays at a ‘helicopter view’ of organisational strategy. The course uses a Johnson and Scholes model of Analysis, Choice and Implementation as a basis and examines the links between strategy, structure and systems in some detail. The course residential brings this together very well and clarifies how the models may be used to ‘funnel down’ from the analysis to arrive at the issues around implementation. Why such a focus on implementation? I think it’s clear to most of us that CEOs who fail tend to fail on execution not strategy. All strategies work to some extent but a failure to execute is a relatively common problem.

Next course is the ‘Making a Difference’ 12 month module. This new course has received some bad press. The objective is to start with self-analysis as a manager and propose how your strengths and weaknesses can be managed and put to use on a project that will make a difference to your organisation. This type of course addresses the criticism that MBA schools turn out knowledgeable but inexperienced managers - to succeed in this module you have to learn and demonstrate experience. So far I am interested and believe this is a positive subject as part of an MBA

Strategy - Environment or Resource based?

Empirical evidence points to the fact that the industry environment does not explain inter-firm profitability differences. Robert Grant's view is that models like Porter's '5 forces' should not therefore be used alone as an analysis tool for strategic planning. Grant prefers his resource based view (RBV) which "offers a superior explanation" (OU 2007) of why some firms are more successful than others. This is a complex area and I am sure Porter and Grant would agree on the need to analyse both the environment and resources as part of a strategy setting process. One powerful point made by Grant is that the forces in the industry environment are themselves often resource based. For example, 'barriers to entry' is an often quoted force controlling market entry. Industry barriers are often the size, power, distribution base, IP, etc. of the industry players and these are the resources of particular firms. The resources are therefore the root causes of other effects that control industries, their attractiveness and the profitability of key players.
Strategies should therefore make the most effective use of a firm's resources. Hamel & Prahalad make a good point in arguing that, further, strategy should stretch a firm's resources in order to ensure that these continue to develop and sustain a competitive advantage.

A warning to keep in mind...

Brien's First Law:

At some time in the life cycle of virtually every organization, its ability to succeed in spite of itself runs out.

This explains why managers need to learn. There are models of
strategy that say that the differences in performance achieved
by organizations with similar resources are due to the quality
of management. Managers working in Pam Am, Sony, Kodak and Polaroid
probably thought that their companies' were great - until the fall came.

Incidentally I have seen this quoted as Brien's and Brier's first law.
I am not sure who he/she is, which name is correct or if there is
a second law...