Analyzing Ikea 's Growth Of The Firm, Dunning Oli Framework Approach Of Foreign Direct Investment ( Fdi )

1325 Words Dec 13th, 2015 6 Pages
Introduction:
With theoretical expatiation of Edith Penrose’s growth of the firm, Dunning OLI Framework approach of Foreign Direct Investment (FDI), this essay will also declare several issues may exist in an international business as well as factors should be considered in global supply chain control. Moving on to analyse IKEA 's implementation of global supply chain control and emphasize its outsourcing plan, comparing to other corporations what competitive advantage IKEA gain in managing supply chain and outsourcing.

Main body:
Referring to the leading theories of the firm approach conducted by Edith Penrose (2003) on the endogenous growth of the firm, the MNE (multinational enterprise) defined as a company take total control of operations, products and service delivery in different countries while managing at home country, will emerges because of a growth process which extends the boundaries of the firm at the sub-national level (Dunning, 2008). The resource-based argument focus on the isolating mechanisms which ensure the competitive advantage of firm’s resources, capabilities and potential markets to reach a competitive position.

As it is possible to make combinations of transactions, resources and patterns of governance, firms do not necessarily organize each transaction in the same way, to what extent, transaction costs

DUNNING OLI FRAMEWORK Markusen (2002) argues that organisations gain a numerous number of costs when set up business abroad comparing…

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