KU Leuven, campus Antwerpen,
Master in Business Administration
Global Strategic Management 2022
Prof. Niels Dijkman
, Part 1: Core concepts
CH 2: conceptual foundations of IBS
7 Concepts of unifying Framework ( Verbeke )
1) Location -
bound firm specific advantages
-
( non transfereble)
-
= These FSAS (an 't be easily transferred ,
de played and exploited in
foreign markets .
Types : 1) standalone resources : netwerk of good Store location in home Country
2) other resources : local mkt
knowledge and reputationat resources .
( brand name )
3) local best practices routines
highly effecten in are Country not be the same in hostc
:
many .
4) Domestic recombinatie in ability firm may not be adept enough
: to deal with complexities g
foreign markets
→ when FSA 's are Location -
Bound ,
then they need to be revealed or acquired through 3rd
the host
party in
Country
2) Non -
location -
bound FS As I International tranferable)
these ESA 's dan t creatine border between home
'
=
stopt value when the is crossed and host Country .
Their Internal include tech ,
marketing admin ( gov related I know
Ledge
Strength :
,
-
.
Paradox : → codifiable know ledge =
cheap to transfer ,
deploye and exploit but can also be easily imitated
playing
'
→ tacit know ledge = en it requires person to person can thus can t be easily imitated .
→ often Key source
of advantage when doing business abroad The minst imp bundel tacit know hedge admin heritage
Comp of =
.
.
=
Key routines developed by the firm since its Inception .
4 archetypes of admin .
heritage
11 homes
Centralized exporteur =
Country managed firm Selling prods Internationally .
Foreign subsidiairies act as facilitator
bv Motion → Market Seeker
.
picture
•
Stand ardised Products
-
Manuf . in Horne Country → Successfail through exporting
'
Limited value creatine facilities abroad
'
FSAS embiodied in the products
-
The arrow cutting through dotted areas represents the direct link
between home country NLB FSAs and host country LA. Without
development of new LB FSAs in the host country.
, 2) International projector =
know /edge based FSAS developed in the homes
Country are transferred to subs in host countries
the intl projector MNE seeks intl expansion by projecting its homes Country Success recipes abroad .
bu Ford
.
, Disney , Ikea
l f ofpsd e elopment
thus
doing of the
-
31 lntl coordinator their
=
Success is not primary on name nor host Country .
They have both upstream and downstream
through a
tightly controlled but still flexible logistics function .
-
Subs are
Specialized in specific value -
adding activities
-
Subs form verticle value Chains across borders .
( = doing diff parts of Prod . in
diff countries)
bv .
Logitech ,
British Petroleum
-
41 Multi centred MNE = It consists of set of entrepreneurial subs abroad which Key to know/ based
a are
edge
-
FSA Development It .
is a
portfolio of large/ y Independent businesses
bv .
Philips
The multi-centred MNE transfers only key routines from
the home country to host countries. The large, shaded
middle areas in the host countries represent the
necessity to build new, LB FSAs in each host country.
The double-headed arrows reflect the close alignment
the host country operations must develop between their
own LB FSAs and the host's LAs
ij ij ij
,3) Location Advantage
1) Abudant natural resources
2) Superior education System →
good human resource
3) good local Market for specifiek products → local innovation
41 geographical scope a
) Country Wide
b) economie clusters
c) Cross -
Country
FDI =
forgien Direct Investment = is the allocation of resource bundels by an MNE in a host
Country with ,
the
purpose of performing business activities over which the MNE retains
Strategic Control in that Country .
FDI if host confers location advantage
→
only engage in the Country relative to the home
Country .
Fair Motivaties of global firms te invest in Foreign countries
11 Natural resource Seekers
= lnvest abroad to acquire particular or specific resources at lower real cost and risk than could be
obtained in their have market .
bu . Exxonmobil ( Oil Company ) =
types ( bound ) These
a) Physica resources Commodities ,
location -
resources are not
proprietavy =
b) Cheap labor niemand z n eigendom
c) Tech ,
info , expertise ( knowhow )
2) Market Seekers
= the Search for customer in host countries .
bu KFC in China
reasons at they follow their Main Supplies or customer s
b) adaptation to local needs , indigenous resources and capabilities
Reduction Chain costs
C)
of Supply
d) reed for Physiol presence in leading markets
ij
, 3) Strategic Resource Seeking
to to advanced downstream admin Also
=
gain access resources → upstream , , knowledge .
to exploit market
imperfecties
bv .
Samsung
Seekers
4) Efficiency
=
They Invest in a
foreign market to rational ize the Global supply Chain Structure of established
resource -
or Market based
-
dispersa activities .
bv .
Logitech
3 main reasons
)
s other motivaties
Master in Business Administration
Global Strategic Management 2022
Prof. Niels Dijkman
, Part 1: Core concepts
CH 2: conceptual foundations of IBS
7 Concepts of unifying Framework ( Verbeke )
1) Location -
bound firm specific advantages
-
( non transfereble)
-
= These FSAS (an 't be easily transferred ,
de played and exploited in
foreign markets .
Types : 1) standalone resources : netwerk of good Store location in home Country
2) other resources : local mkt
knowledge and reputationat resources .
( brand name )
3) local best practices routines
highly effecten in are Country not be the same in hostc
:
many .
4) Domestic recombinatie in ability firm may not be adept enough
: to deal with complexities g
foreign markets
→ when FSA 's are Location -
Bound ,
then they need to be revealed or acquired through 3rd
the host
party in
Country
2) Non -
location -
bound FS As I International tranferable)
these ESA 's dan t creatine border between home
'
=
stopt value when the is crossed and host Country .
Their Internal include tech ,
marketing admin ( gov related I know
Ledge
Strength :
,
-
.
Paradox : → codifiable know ledge =
cheap to transfer ,
deploye and exploit but can also be easily imitated
playing
'
→ tacit know ledge = en it requires person to person can thus can t be easily imitated .
→ often Key source
of advantage when doing business abroad The minst imp bundel tacit know hedge admin heritage
Comp of =
.
.
=
Key routines developed by the firm since its Inception .
4 archetypes of admin .
heritage
11 homes
Centralized exporteur =
Country managed firm Selling prods Internationally .
Foreign subsidiairies act as facilitator
bv Motion → Market Seeker
.
picture
•
Stand ardised Products
-
Manuf . in Horne Country → Successfail through exporting
'
Limited value creatine facilities abroad
'
FSAS embiodied in the products
-
The arrow cutting through dotted areas represents the direct link
between home country NLB FSAs and host country LA. Without
development of new LB FSAs in the host country.
, 2) International projector =
know /edge based FSAS developed in the homes
Country are transferred to subs in host countries
the intl projector MNE seeks intl expansion by projecting its homes Country Success recipes abroad .
bu Ford
.
, Disney , Ikea
l f ofpsd e elopment
thus
doing of the
-
31 lntl coordinator their
=
Success is not primary on name nor host Country .
They have both upstream and downstream
through a
tightly controlled but still flexible logistics function .
-
Subs are
Specialized in specific value -
adding activities
-
Subs form verticle value Chains across borders .
( = doing diff parts of Prod . in
diff countries)
bv .
Logitech ,
British Petroleum
-
41 Multi centred MNE = It consists of set of entrepreneurial subs abroad which Key to know/ based
a are
edge
-
FSA Development It .
is a
portfolio of large/ y Independent businesses
bv .
Philips
The multi-centred MNE transfers only key routines from
the home country to host countries. The large, shaded
middle areas in the host countries represent the
necessity to build new, LB FSAs in each host country.
The double-headed arrows reflect the close alignment
the host country operations must develop between their
own LB FSAs and the host's LAs
ij ij ij
,3) Location Advantage
1) Abudant natural resources
2) Superior education System →
good human resource
3) good local Market for specifiek products → local innovation
41 geographical scope a
) Country Wide
b) economie clusters
c) Cross -
Country
FDI =
forgien Direct Investment = is the allocation of resource bundels by an MNE in a host
Country with ,
the
purpose of performing business activities over which the MNE retains
Strategic Control in that Country .
FDI if host confers location advantage
→
only engage in the Country relative to the home
Country .
Fair Motivaties of global firms te invest in Foreign countries
11 Natural resource Seekers
= lnvest abroad to acquire particular or specific resources at lower real cost and risk than could be
obtained in their have market .
bu . Exxonmobil ( Oil Company ) =
types ( bound ) These
a) Physica resources Commodities ,
location -
resources are not
proprietavy =
b) Cheap labor niemand z n eigendom
c) Tech ,
info , expertise ( knowhow )
2) Market Seekers
= the Search for customer in host countries .
bu KFC in China
reasons at they follow their Main Supplies or customer s
b) adaptation to local needs , indigenous resources and capabilities
Reduction Chain costs
C)
of Supply
d) reed for Physiol presence in leading markets
ij
, 3) Strategic Resource Seeking
to to advanced downstream admin Also
=
gain access resources → upstream , , knowledge .
to exploit market
imperfecties
bv .
Samsung
Seekers
4) Efficiency
=
They Invest in a
foreign market to rational ize the Global supply Chain Structure of established
resource -
or Market based
-
dispersa activities .
bv .
Logitech
3 main reasons
)
s other motivaties
