Summary part 1 - Core Concepts

DEEL 1 CORE CONCEPTS
Chapter 1 Conceptual Foundations of international
business Strategy
= explanatin Framewirk

1.1. Definition Inteennitioni翝 Business Steniteey
= efeetiely eieientlly matlenin a mlltnatinal entlerprise’ss MNE’s’ssa intlernal stlren tlns
witln ippirtllnites enallen es filnd in ei rapnieally dispersed eniirinmentls tlnatl eriss
intlernatinal birders.

 Tnis matlenin = preeinditin tli ereatn ialle matlenin stlakenilder ials MNBiL BlLa
 Use intlernal firees iltlside birders



1.2. 7 conceptes of tehe unif iny fnimewonk
1. Internationally transiferable /nnon-location bound) FSAsi
Is eipy pastle pissible?

2. Non-transiferable /nlocation-bound) FSAsi

3. Location advantagesi

4. Invesitment in resiource recombination
Own resilrees reeimbinen
<> ’i lin er pissible tli make/iwn eierytlnin aline
5. Complementary resiourcesi of external actorsi
Geleierd diir anderen bltl neeessary bpn
s , AGFA: distlribltlirs

6. Bounded rationality
Limitls tli kniwled e; impissible tli kniw eierytlnin
7. Bounded reliability
Kniwin tlnatl deeisiin isn’stl tlne ri ntl eniiee, bltl stll make itl
Wirkin tliwards iwn ials

s , AGFA: mlltlieal blsiness: ean’stl pridlee snip wirldwide: adaptl tli lieal marketl

i. MNE’s unique nesounce bise
How unique ine m …
1. Pnysieal resilrees
2. Finaneial resilrees
3. Hlman resilrees MNindiis tleams -> 1 tleam, ifen refresn mana er, tlakeiier
eimpany = in need if ri ntl peiplea
Smartl peiple in stlar flnetins

, 4. Upstlream kniwled e = ri ntl resilrees, slppliers, kniwled e
Use tlnis kniwled e fir itlner tlnin s MNbly eneaper=mar ea
“wnere tli bly”
5. Diwnstlream kniwled e = sales, elientls, marketn
6. Administlratie kniwled e
Hiw we ir anize
s , LensOnline: real-tme IS in smartlpnine!
7. Repltlatinal resilrees

s , AGFA: 1.,2.,3. Prif wirks 24y fir tlnem!, 4. Key resilree, 5. Kniwled e, 6. Prieedlres, 7.
Well-kniwn brand


 MNE: bui翝diny upon ites resource base & iccess teo 翝ocition idvinteiyes = °steind-i翝one
FSAs, noutines & nesounce necombinition
 FSAs: nefecte distinctive stenenytehs MNsilree eimpettie ea


1.3. Routines
Stlrletllral way if diin tlnin s; abilitly tli eimbine resilrees in lniqle ways
= deeisiins tlnatl din’stl need deeisiintlakin anymire
= stlable patterns if deeisiins -> eiirdinatle pride lse if ress eneratle ialle
= ni n-irder FSA
beeimin sleeessfll= blildin reeimbinin resilrees


1.4. Recombinition
Blndlin resilrees/FSA, simetmes aeriss birders
=artfll irenestlratin if resilrees
respinse tli diferenees betlween eniirinmentls satsfyin tlneir stlakenilders
 entlreprenelrial jld mentl = filndatin if eapabilitly reeimbinatin
= preiw tli TW satsfyin SH MNdefnitlely in eimplex intlernatinal setn sa

!tlnin s ean i wrin !
s , medals were snipped in a eintlainer MNwitln itlner iidsa, tlnis eintlainer wasn’stl alliwed tli
be ipened => ni medals => sentl mail witln infi => eneap tlnese risks is dimests

1.5. Inteennitioni翝 teninsfenibi翝ite of FSAs
Paradix
If FSA einsistls if easy eidifable/expirtlable = eneaply/easy eipyable fir lrself itlners
= ni lin er lniqle = ni lin er lse
ifen embedded in elltllre: eien if l’sre diin tlne ri ntl tlnin s, itl ean stll i wrin bes nitl
aeeeptled in tlne elltllre if tlne frm

1.6. Non-teninsfenib翝e FSA (翝ocition bound=LB)
1. Stland-aline resilrees linked tli lieatin MNpriiile ed retlail liesa
e , iee eream snip atl sifeltliren