Analyzing the Impact of Macro Environment on Business Strategies of Uber

Business Strategies

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P.1. Applying appropriate frame works analyse the impact and influence of macro
environment on given organisation and its strategies?...........................................................3
M.1. Critically analyse the macro environment to determine and inform strategic
management decisions?..........................................................................................................5
TASK 2............................................................................................................................................6
P.2. Analysis the internal environment and capabilities to a given organisation using
appropriate framework?..........................................................................................................6
M.2. Evaluate critically the internal environment to assess strength and weakness of an
organisation ?..........................................................................................................................8
TASK 3............................................................................................................................................8
P.3. Applying porter's five forces model evaluate the competitive forces of given market
sector for an organisation ?.....................................................................................................8
M.3. Apply appropriate strategies to improve competitive edge & market position on the basis
of outcomes?...........................................................................................................................9
TASK 4............................................................................................................................................9
P.4. Applying a range of theories , concepts, model, interpret and devise strategic planning for
a given organisation?..............................................................................................................9
M4 : Strategic management plan that includes strategic priorities and objective?..............12
D.1. Critique as well as interpret information and data applying, environmental and
competitive analysis to produce a set of valid strategic directions , objectives and tactical
actions ?................................................................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is referred as a set of different decisions and tactics that benefits a
business person in attaining particular business goals and objectives. It is defined as a master
plan which is implemented by an individual so that a high competitive position can be achieved
within marketplace. This assignment is based on the organisation UBER . This report is going to
discuss about impact of macro environment on business strategies of a company. Various
analytical frameworks to acknowledge macro environment is discussed. Internal capabilities and
environment of organisation is acknowledged along with evaluation through Porter's five forces.
At last, different models, concepts and theories to understand strategic directions are mentioned.
TASK 1
P.1. Applying appropriate frame works analyse the impact and influence of macro environment
on given organisation and its strategies?
PESTLE Analysis
It is a strategic tool that are used by company to analyse external business environment
and competitive market so that managers of the organisation make some strategies to overcome
with the challenges and tends to leads business survival and growth. In context to Uber ,analysis
of various factors related to PESTLE are explain in below paragraphs-
Political factor: It covers various elements related to political stability, taxation policy,
trade restrictions, business incentives , corruption, competition policies, , government policy.
Uber has always faced endless debated globally. Increasing in the number of trouble that makes
impact on business. There were existence of political discussion regarding minimum wage act in
taxi industry and it is to be notices that whether the company Uber follow these rules. As
commercial licences are important to take from government by paying fees.
Economic factor: deals in exchange rate , inflation rate, unemployment rate, disposable
income, Foreign direct investment, interest rate, economic growth etc. In large number it
generate employment for audience. For drivers large number of job opportunities are created
through shared economy in taxi service industry. As in low prices the services are provided by
uber, as it is a major tension to other taxi drivers of their competitors. To survive in the market
there is need to cut rates of traditional taxi services. As audience choose that alternative which is

cheaper. So when economic recession is there uber not to be affected deeply in comparison to
other related industries.
Social factor: are related to age distribution, health consciousness, population growth,
age distribution, lifestyle attitudes, seasonal buying, cultural barriers and so on. Sharing economy
is depends on physical as well as intellectual resources by Uber. One good thing about it is that
they make their customer's happy. Smartphones help people to book the ride. As compare to
other taxis prices are less. Through social media, advertisements awareness among audience are
created. Due to this fame in the urban areas prices of rides are increased which is good for uber..
As due to their usability most of the times clients pick uber only. For its availability customers
inclined uber greatly.
Technological factor: involves various term like level of innovation, R& D activity,
technological change, automation, technological awareness, technology incentives. Innovation is
at the foundation of every enormous in 21 st century and development doesn't work without
innovation. For both riders and drivers uber has incredible innovation as well as experience. It
not become possible without innovation and technological advancement. Uber has coordinated
some highlights in to their applications so that to provide remarkable encounter. Uber use
geolocation, message pop ups, with this latest technology the organisation provide convenience
to customers which leads to business growth and survival. Innovation is significant components
driving Uber quick development.
Legal factor: are concerned to various laws like consumer protection, discrimination,
employment law, copyright and patent, minimum wage , health & safety law, etc. Different laws
in the country abide companies to pay fines if not work according to law and provisions. Uber is
in great trouble if minimum wage act is not follow and low wages are given to drivers. As it
results to increase labour turnover due to non payment of sufficient amount as per the law.
Which make negative impact on uber because if shortage of driver is there than it may affects
business profit also.
Environmental factor: are linked to climate, environmental policies, weather, etc.
Sustainability has great concern for Uber. Fuel consumption and traffic congestion are tends to
increase due to availability of large number of ubers. Now people are more interested to use cabs
or motor bike rather than using public transport.