Institution Based-View Strategy for Flixbus

Topic

Institution Based-View Strategy for Flixbus

Instructions

You are the employee of a prestigious management consulting company and your services have been hired to help Flixbus company to perform a strategic analysis as part of its international strategic development plan. The company is currently interested in expanding its operations into a new country (Australia) which they are not already present. As consultants, your project is to prepare a report for the company on a prospective market. Your report should convey the essential information your client needs and provide a preliminary recommendation on whether and how to enter the market.

Answer preview

Institutions affect the strategy of firms by: Reducing uncertainty. Signaling conduct as acceptable or not, which constrains the range of acceptable actions. Uncertainty can lead to transactions costs Transaction costs: Costs associated with economic transactions—or more broadly, costs of doing business A major source of transaction costs: Opportunism “Self-interest seeking with guile” (Williamson) The possibility of opportunism introduces uncertainty

Slide count: 23