The New School
More than 1.2 million college graduates every year face the harsh reality of competing against other graduates for jobs in the marketplace, according to the article "The New School" by Kim Jack Riley. That is why many students who complete their Bachelors degree go on to continue their MBA studies in order to have a better competitive advantage over others when they graduate. The question is that: Is this a good strategy? Could be, but I am not sure it works out all the time for several reasons. If we think of MBA students as firms trying to compete against rivals, and we apply the strategic theories of Porter, Hamel and Barney, we can reach interesting conclusions.
From Porter's point of view, since there are many suppliers (students with MBAs) in the market, then the buyers (companies hiring students in the marketplace) will start possessing bargaining power. The supply is greater than the demand for what students call a "good job". Not many companies are capable of giving students compensation that is suitable or acceptable to them. Sometimes it is because the students think that they are worth more than that. Nevertheless, the bargaining power of companies offering the "good jobs and positions" is increasing, and this could be one thing that is a competitive force in the economy. Moreover, there are those MBA students who already have jobs but are looking for better positions. What about them? Aren't they afraid of potential entrants who might snatch away those positions before they do? Yes, that is true. Those MBA students are threatened, and that does nothing but adds to the competitive forces in the hunt for jobs. That is why those who are threatened should create value for themselves and distinguish themselves, a fact that takes me to the next framework, created by Barney.
Barney's question of value appears when we wonder whether the MBA students who already have jobs, but are still looking for better positions, possess the capabilities and resources that enable them to respond to environmental threats and opportunities. For example, their experience in the market gives them value against potential entrants (a combination of ideas I have made between Porter's and Barney's frameworks). However, the experiences they get should enable them to compete and win in the marketplace. The degree by itself cannot be considered valuable because it does not allow them to respond to the threats of potential and new entrants. In addition to that, we can clearly see that the MBA degree is not a rare resource. Today, many people already possess that "MBA resource". Furthermore, there is no question as to whether this resource is imitable or not. Most people have the resources and capabilities to get an MBA degree. Therefore, there is no cost advantage in this case for obtaining an MBA except if students lack the financial abilities to do so. Imitation in this case can take the form of direct duplication, if it was obtained from the same university as others working in the market, or it can take the form of substitution if the MBA degree was from any other university. What I think would make each MBA student different is the question of organization in Barney's framework. As a matter of fact, I think it is the most important in considering the strengths and weaknesses of any individual or any organization. We can clearly see that when, in the article, Tony Lee, editor-in- chief of the College Journal, is sited when he affirmed that "the primary concerns of employers today are:
Even if the applicant has an M.B.A., does the job seeker really have the aptitude to do well in the job?Was the decision to go to graduate school made last minute out of desperation to get a job?Was the M.B.A. received at a top-tier business school?"
Now these are good indicators to the fact that an MBA degree by itself is not enough. It is how that degree is used that matters to employers – that is, how the "organization" of that MBA graduate is. How he or she can use the MBA degree to enable him or her to fully exploit the full competitive potential of that degree, according to Barney's definition.
Moving on to Hamel's theory, if we think of MBA students as firms competing in the market, then we can state that they must have a core strategy in order for them to succeed. One element of Hamel's core strategy that MBA graduate can use is the basis for differentiation. They have an advantage with their degree, no doubt about that, but they also need to know what the best way is for them to compete differently from their rivals. The key word here is "differently". Furthermore, according to Hamel, these students with MBA degrees have a strategic asset which if used properly, will enable them to succeed.
Going back to the question I posted in the beginning (Is obtaining an MBA degree a good strategy to compete in the market for jobs?), and applying the three frameworks, we can see that an MBA degree by itself is not a very good strategy. According to Porter, the degree only increases the competitive force, while with Barney's framework; the discussion above will show you that these graduates do not have a perfect competitive advantage. Moreover, with Hamel, MBA degrees by themselves are just an addition. They cannot do anything without some other supportive strategy, like competing differently for example.
From Porter's point of view, since there are many suppliers (students with MBAs) in the market, then the buyers (companies hiring students in the marketplace) will start possessing bargaining power. The supply is greater than the demand for what students call a "good job". Not many companies are capable of giving students compensation that is suitable or acceptable to them. Sometimes it is because the students think that they are worth more than that. Nevertheless, the bargaining power of companies offering the "good jobs and positions" is increasing, and this could be one thing that is a competitive force in the economy. Moreover, there are those MBA students who already have jobs but are looking for better positions. What about them? Aren't they afraid of potential entrants who might snatch away those positions before they do? Yes, that is true. Those MBA students are threatened, and that does nothing but adds to the competitive forces in the hunt for jobs. That is why those who are threatened should create value for themselves and distinguish themselves, a fact that takes me to the next framework, created by Barney.
Barney's question of value appears when we wonder whether the MBA students who already have jobs, but are still looking for better positions, possess the capabilities and resources that enable them to respond to environmental threats and opportunities. For example, their experience in the market gives them value against potential entrants (a combination of ideas I have made between Porter's and Barney's frameworks). However, the experiences they get should enable them to compete and win in the marketplace. The degree by itself cannot be considered valuable because it does not allow them to respond to the threats of potential and new entrants. In addition to that, we can clearly see that the MBA degree is not a rare resource. Today, many people already possess that "MBA resource". Furthermore, there is no question as to whether this resource is imitable or not. Most people have the resources and capabilities to get an MBA degree. Therefore, there is no cost advantage in this case for obtaining an MBA except if students lack the financial abilities to do so. Imitation in this case can take the form of direct duplication, if it was obtained from the same university as others working in the market, or it can take the form of substitution if the MBA degree was from any other university. What I think would make each MBA student different is the question of organization in Barney's framework. As a matter of fact, I think it is the most important in considering the strengths and weaknesses of any individual or any organization. We can clearly see that when, in the article, Tony Lee, editor-in- chief of the College Journal, is sited when he affirmed that "the primary concerns of employers today are:
Even if the applicant has an M.B.A., does the job seeker really have the aptitude to do well in the job?Was the decision to go to graduate school made last minute out of desperation to get a job?Was the M.B.A. received at a top-tier business school?"
Now these are good indicators to the fact that an MBA degree by itself is not enough. It is how that degree is used that matters to employers – that is, how the "organization" of that MBA graduate is. How he or she can use the MBA degree to enable him or her to fully exploit the full competitive potential of that degree, according to Barney's definition.
Moving on to Hamel's theory, if we think of MBA students as firms competing in the market, then we can state that they must have a core strategy in order for them to succeed. One element of Hamel's core strategy that MBA graduate can use is the basis for differentiation. They have an advantage with their degree, no doubt about that, but they also need to know what the best way is for them to compete differently from their rivals. The key word here is "differently". Furthermore, according to Hamel, these students with MBA degrees have a strategic asset which if used properly, will enable them to succeed.
Going back to the question I posted in the beginning (Is obtaining an MBA degree a good strategy to compete in the market for jobs?), and applying the three frameworks, we can see that an MBA degree by itself is not a very good strategy. According to Porter, the degree only increases the competitive force, while with Barney's framework; the discussion above will show you that these graduates do not have a perfect competitive advantage. Moreover, with Hamel, MBA degrees by themselves are just an addition. They cannot do anything without some other supportive strategy, like competing differently for example.
posted by Lina Osman @ 3:20 AM
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