Tutorial Exercise

In: Business and Management

Submitted By nadirananda
Words 977
Pages 4
NAME: Nadira Ananda Putri
STUDENT NUMBER: S2713454
International Business Tutorial 1 Exercise:
1. A firm specific advantage (FSA) is stand-alone resources + routines + recombination skills combined. In another words, it is firm’s ability to put higher effort or quality in their assets rather than their competitors.
2. Honda’s FSAs are;
-They used much less presswork
-More integrated welding process
-Delivered better real cost-performance
3. Verbeke’s theory states that firms and multinationals should develop their unique resources which are; physical resources like natural resources, buildings and plant equipment, financial resources such as equity and loan capital, human resource like the individuals and teams, entrepreneurial and operational skills, upstream and downstream knowledge, administrative and reputational resources. Another two things that would make a firm specific advantage are routines and recombination.
Routines are the distinct ability to combine further the firm’s resources in unique ways valued by the firm’s stakeholders and they are also stable patterns of decisions and actions that coordinate the productive use of resources, and thereby generate value, domestically or internationally.
4. Some FSAs are location bound because:
-A firm uses stand-alone
-A firm has a very deep knowledge of local marketing or reputation
-A firm has developed a unique way of working that is local
-A firm has an entrepreneurial potential which is difficult to transfer across borders to a different context
5. Location bound means that the FSAs stay at the home country. Some of the reasons might be because of the resources are immobile.
6. The English department store, “Harvey Nichols”, which originally came from Knightsbridge, London decided to open a branch in Jakarta, Indonesia back in 2008. They thought Indonesia would have the best market and be a…...

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