Analyzing the Impact of Macro Environment on Business Strategy of UBER

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Apply appropriate framework to analyse influence and impact of macro environment........3
TASK 2............................................................................................................................................7
P2 Analyse the internal environment and capabilities of a given organisation..........................7
TASK 3............................................................................................................................................8
P3 Porter's five force model to evaluate competitive forces of market.......................................8
TASK 4..........................................................................................................................................10
P4 Implement the range of theories, concepts and model to devise strategic planning of
organisation...............................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The term business strategy is understood as a course of action and the set of decisions
that assist an entrepreneur to accomplish specific business objectives and goals. In simple terms
business strategy is defined as a master plan that is used to obtain a competitive position in
market through performing all business operations and functions according to goals of
organisation. Business strategy is recognising as a set of competitive actions and moves that are
aim towards gaining the attraction of buyer or customer's. This report is written from the
perspective of UBER Technologies which is a commonly known as UBER. They deal in the
vehicles and hire to deliver courier, fright and transportation services (Bereznoi, 2015).
Moreover, this report highlights on PESTLE, SWOT and other framework to understand impact
and influence of macro environment on business strategy of organisation. Porter's five force
model will also implement to understand competitive forces of market.
TASK 1
P1 Apply appropriate framework to analyse influence and impact of macro environment
PESTLE ANALYSIS:
It is a framework of measuring the external environment of the organisation that may
impact on the performance of the company. This analysis is used specially in the new business,
so that firm can study the political, economical, social, technological, legal and environmental
factor of external environment, also help to examine the opportunities and threats for the
organisation. It helps in planning and decision-making as well.
Company do PESTLE Analysis to measure the macro environment of the organisation
that will help in making marketing strategies and pricing policies by which firm will growth
continuously (Ambroise and et. al., 2018).
PESTLE ANALYSIS OF UBER AS UNDER FOLLOWS:
 POLITICAL FACTOR- This is a factor which have influenced by the change in
government taxation policy, labour law, foreign trade policy, corruption and government
stability. If there is a change in such policies then it will affect the organisation, these
factors came in consideration after analysing the potential market and firm have to
respond back according to the existing government policy. Uber has faced endless debate
globally. Increase in Uber share affecting the traditional taxi services badly in the

different which leads to rejection of approval in several locations. It has direct impact as
both prons and cons over the working standards of Uber as induce disruptive effect on
other traditional taxi services. The government laws is always been concerned as per the
service provide that commandment taxi services. In addition governance takes an
initiative to seized Uber as if driver didn’t have permit to drive taxi. In this Uber ensures
that there drivers having licence and follow all the rules and regulations of government.
 ECONOMICAL FACTOR- This factor is having a significant impact on the organisation
that how firm doing business and how profitable they are doing. It includes government
expenditure, taxation policy and interest rate control, also impact on the economy and its
performance. Uber is handling looses for long time also have to work with different
pricing strategies that impact on the organisation's business plan (Brașoveanu and Bălu,
2014). There are major impacts on sharing mobility by the pandemic in which Uber have
to change its strategies to work in a dynamic environment. Company is also offering food
in affordable prices with wide variety. Uber also share in the economic advancement and
it is dependent on intellectual and physical resources. The company provides higher level
of employment opportunities and in addition also provide lower cost services. In order to
get over from economic recession Uber maintain incredible services as of in low prices
by which exceptional quick is induced in terms of profit generation.
 SOCIAL FACTOR- These is the factors which influence the attitudes and shared beliefs
with the range of religion, money, health, culture, and demographics of the population.
This impacts the buying behaviour and customer preferences for the product, Like in
remoter area, there is no introduction of Uber cabs, people are not aware of these
business. These needs to come in consideration for proper advertisement of such business
so that everyone can avail the benefit, also company could expand the market. Uber has
67% market share for cabs and a 24% market share for food delivery. The customers of
Uber are happier due to its services as easy management of service through Smartphone
make it easier and friendlier. There offered price of Uber is more less than other taxi
service provider by which ability of company to spread more awareness is enhanced.
 TECHNOLOGICAL FACTOR- Technology is something that effect the way you make,
distribute and communicates to the user of their product and services. Technology
innovation and development of the product to meet the market demand of potential