Impact of Macro Environment on Organization and Strategies

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Discuss impact of macro environment over organization and its strategies by applying
appropriate tools...........................................................................................................................3
TASK 2............................................................................................................................................7
P2) Discuss internal environment and capabilities of organization.............................................7
TASK 3..........................................................................................................................................10
P3) Apply Porters five forces model for organization...............................................................10
TASK 4..........................................................................................................................................12
P4) Discuss approaches, theories and models to develop strategic plan...................................12
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15

INTRODUCTION
Business strategies are the set of future actions that are taken by manages in order to
attain predefined business objectives in stipulated period of time. In current business world, it is
vital to prepare effective strategies to face competition effectively (Lokuwaduge and
Heenetigala, 2017). In addition, strategies are future course of actions which guides individuals
to take appropriate decisions. In present report, UBER is taken into consideration that is a
renowned company and provides services of food delivery, ride hailing, and freight
transportation. It is headquartered in US and founded in the years of 2009. In the current report,
detailed overview regarding strategic framework of company has been discussed. It comprise
ample of tool such as PESTLE, Ansoff and more in order to analyze external environment of
organization. Further, it also included detailed internal analysis with the help of appropriate tools
such as SWOT, VRIO and more. At end, different models, theories are also included in the
following report in order to prepare a strategic plan for future growth and success of entity.
TASK 1
P1) Discuss impact of macro environment over organization and its strategies by applying
appropriate tools
Company Overview: UBER is a well known technology based company that is renowned for its
quality as well as reasonable rides. It is headquartered in America and currently working in
nearly 69 countries across the globe. Apart from ride hailing services, it also deals in food
deliver, courier and freight transportation.
Vision: “To make transportation available at each and every place and provide affordable, safe as
well as reliable rides to riders”.
Mission: “To making transportation a simple process so that people can easily access to
vehicles”.

Macro environment concerned with several external factors that affect business
performance significantly. It includes a lot of element and stakeholders that are related to outside
environment but put a great impact over its overall productivity and efficiency. So, managers are
required to prepare effective strategies in order to deal with macro environmental factors in an
efficient manner. Here, some models are used for this purpose which are given as under:
PESTLE analysis:
It is a model which is widely used for external analysis and helps to prepare effective
strategies. It comprises different factors of external analysis that are related to outside business
environment and cannot be controlled by managers (Ocasio and Radoynovska, 2016). In context
of UBER, managers undertake PESTLE analysis to assess external environment. Here, different
factors of PESTLE model are given as under:
Political factors: It refers to policies, trade rules, regulations and more that are related to
political environment of a country. It is analyzed that changes in current government policies put
a great impact over business. So, managers need to give due consideration to political
environment while preparing strategies for business growth and success. In reference of UBER,
it is operating business in several countries across the globe so highly affected with change in
political environment of respective country. Initially, UBER has faced several difficulties and
controversies. In France and Netherland, charges have been filed against company of not having
license to drivers. In several countries, government has made it mandatory to have commercial
license to drivers of organization.
Economic factors: It comprises elements such as job opportunities, interest rate, demand,
supply and more. Different countries are having different economical conditions. There are some
developed as well as developing nations across the globe. Thus, managers need to prepare
strategy in such a way by which they can target domestic and international audience. In regards
of UBER, it is based on sharing economy concept which is well known for providing cheaper
rides to customers (Van Clieaf, 2016). It is analyzed that business model of organization is
creating higher job opportunities for people globally that will lead economies towards higher
growth and development.