Business Strategy: Impact of Internal Environment and Strategies

This document discusses the impact of internal environment and strategies in business strategy. It includes the application of frameworks to determine the impact of internal environment, analysis of the internal environment and capacities using appropriate frameworks, evaluation of Porter's Five model in the market sector, and strategies to improve market position and competitive advantages based on the results.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Apply framework to determine the impact of internal environment with its strategies in an
organisation..................................................................................................................................3
M1 Evaluate the macro environment to inform strategic management decisions.......................5
TASK 2............................................................................................................................................6
P2 Using appropriate framework analyse the internal environment and capacities in a
company.......................................................................................................................................6
M2 Ascertain the strength and weakness of enterprise internal structure, skill set and structure.
......................................................................................................................................................7
TASK 3............................................................................................................................................8
P3 Evaluate Porter's Five model of given market sector.............................................................8
M3 Strategies to improve market position and competitive advantages based on result............9
TASK 4............................................................................................................................................9
P4 Apply concept, theories and models to devise strategic planning..........................................9
M4 Ascertain strategic management plan which has tactical as well as tangible strategic plans
and priorities..............................................................................................................................11
D1 Evaluate the strategy and theories for environment and competitive analysis to set
objectives, strategic directions and tactical actions. .................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy is defined by which company set plans and objectives to take
decisions which helps organisation to achieve business goals and assist them to remain in a
competitive market (Amran and et.al., 2016). It is the pillar of enterprise as it directs to run the
entity for targeted goals. It guides rules and regulation which is adapted by enterprise. Uber
Technologies, Inc is consider in this report. Uber, Inc is an American technology company which
is founded by Garrett Camp and Travis Kalanick in year 2009. Headquarters is in San Francisco,
California, U.S. This deals in food delivery i.e. Uber Eats, couriers, cabs and freight
transportation. This report includes framework which impacts macro environment along with
strategies, determine the internal environment using frameworks, apply Porter's Five forces of
market sector in business, theories, models and concept which formulate strategic planning in an
organisation.
TASK 1
P1 Apply framework to determine the impact of internal environment with its strategies in an
organisation.
Macro environment is defined to the situation of an large economy against to particular
market. It is affected by inflation, financial policy, GDP and money spend by customers which
impacts the overall performance of company in which business operates.
PESTLE analysis refers to a tool which determine the business environment to innovate
new product and services. It ascertain the external factors of a company. PESTLE comprises of
Political, Economical, Social, Technological, Legal and environment. This framework is
explained as under:
Political: It comprises government policy, trade restrictions, tax policy, labour law and
political stability. In political regulation, Uber has tie up as contractors and drivers which helps
to increase sales in company that impact positive in business. Trade restrictions by government
in UK which impacts negatively to Uber to operate services in other areas that decrease growth
and performance of organisation (Bentley-Goode, Newton and Thompson, 2017).
Economic: It includes unemployment rates, exchange rates, inflation, economic growth
and interest rate. It increases job opportunities for people as Uber offers many services to
customers which impacts positively that maximize sales and revenue of entity. During COVID-

19 pandemic, Uber recorded huge losses due to restriction in transportation which impacts
economic growth as it shows negative business and reduce profitability of business.
Social: It includes factor such as population growth rate, lifestyle and career attitudes,
health consciousness. Increase in population growth rate impacts positively to Uber as enterprise
provide more services to customers (Chen, Eshleman and Soileau, 2017). On the other hand,
Dynamic pricing affect Uber to change rates of product and services based on current demand in
market.
Technological: This factor consists of level of innovation, technological awareness,
automation and change in technology. This factor impact positively to Uber as they manage and
control their activities by application and build customer relationship through digital media
marketing and advertising. Initially, Uber face challenges to upgrade their technology as it takes
lot of money to spend. This factor affect negatively to Uber as high cost is involved.
Legal: Legal factors include competitive legislation, labour laws, advertising standard,
equal opportunities, health and safety. It also involve taxation policies and industry regulations.
In pandemic, Uber provide health and safety tips to its employees as well as consumers by
sanitizing and taking proper care. Thus, this impact positively to Uber technologies. The
negative impact on Uber fined extra charges by customary administration which organisation has
not followed rules and regulations by government.
Environmental: This define as restrictions and regulations, behaviour of consumers,
pollution and greenhouse gas emission, climate and weather and environmental legislation. New
services started by Uber which is named Uber pool they initiate their services eco-friendly
(Cubas‐Díaz and Martinez Sedano, 2018). However, it impacts positively and maximize growth
and success of enterprise. Traffic congestion and increase pollution impact negatively on Uber as
company not follow standard which is set by government.
Stakeholder analysis
It is defined as matrix that uses to analyse, identify and understand stakeholder interest in
a business plan, project and program. In a project number of stakeholders are involved to
contribute money in expectation of getting return. The stakeholder analysis in context to Uber
which is described below:

Stakeholder Analysis
LEVEL OF
INTEREST
LEVEL OF
INTEREST
LEVEL OF POWER HIGH LOW
HIGH Management, Owners Government
LOW Staff members Customers
High power, high interest: In this matrix it is consider that management and owners
have high interest and power in organisation to take decisions. In context to Uber, management
can implement business strategy to launch new technology services and business production.
This helps to increase the operations and profitability as they having rights to share new ideas.
High power, low interest: In this analysis, government has high power and low interest
as they can impose rules and regulation which are followed by every enterprise (Farrukh and
et.al., 2020). In Uber, management has to pay tax and follow guidance which is regulated by
government as they have power but bot interest in business activities.
Low power, high interest: Staff members have low power and high interest as they are
performing their duties to earn money. In Uber, employees are working for the return and serve
services to their customers which helps company to maximize the growth of business.
Low power, low interest: In this strategy, customers determine their purchasing decision
for buying product and services from entity which help organisation to increase sales and
revenue of company. Consumers of Uber have low interest and power as they can change their
decisions to book the services.
M1 Evaluate the macro environment to inform strategic management decisions.
From the above analysis it is evaluated that factors of PESTLE analysis has positive
impact which helps enterprise to attract customers and maximize profitability and success of
business. On the other hand, it has negative impacts of this factors which hinder the performance
of Uber which helps management to take strategic decisions. Stakeholder analysis evaluates
macro environment to identify and understand the interest and power of employees,
management, customers and government that assist them to take decisions related to business
production and operations to get expected outcome (Ghemawat, 2016) .

TASK 2
P2 Using appropriate framework analyse the internal environment and capacities in a company.
Internal environment refers to business environment inside the organisation such as
structure, human resource and objectives of company which helps them to improve business
activities and decision of organisation to accomplish targeted goals.
VRIO analysis: It is the internal framework to understand competitive edge to manage
and control the business activities and performance. VRIO framework comprises of value, rarity,
imitability and organisation which are explained below:
Resources Valuable Rare Inimitable Organised
Customer satisfaction Yes No No No
Marketing channel Yes Yes No No
Technology Yes Yes Yes No
Financial resources Yes Yes Yes Yes
Valuable: Company have many valuable resources such as customer satisfaction,
marketing channel, technology and financial resources which helps Uber technologies Inc.
maximize business activities and performance by deliver cabs and food facilities to its clients.
Rare: This analysis is define as rarity of products and services in the market that is rare
to acquire by competitors. Management of Uber use digital marketing strategy to attain and
retain their customers through social media, newspaper, campaign and websites (Hart, Sharma
and Halme, 2016).
Inimitable: Technology of Uber is inimitable for competitors because company use
research and development and mapping software which is not easy to imitable because it require
resources and cost to acquire technology. Uber launch new technology to retain customers which
result increase the growth of company.
Organised: Financial resources of Uber is organized to invest in right strategy which
helps enterprise to accumulate more profit in business. However, new entrants require more
resources for similar profit in market. Uber has acquired these resources through gains over the
years.

McKinsey’s 7S
McKinsey’s 7S refers to the model to analyse the internal factors of company to identify
the situation which lead to increase growth of organisation (Kitsios and Kamariotou, 2016) .
Hard element of this model is structure, strategy and system whereas soft element such as shared
value, skills, style and staff. Seven factors are described below:
Strategy: Uber use cost leadership strategy to enhance competitive advantage. Thus, this
strategy of enterprise is to maximize its product and services range continuously to serve the
needs and convenience of consumers.
Structure: Matrix organisational structure is adapted by Uber as it operates various
products and services to accomplish business goals and increase profitability.
Systems: Management of Uber has followed customer relationship management system
which helps organisation to build customer satisfaction so they can maximize performance,
customer service and sales of business.
Shared value: In context to Uber, it creates norms, values and objectives which is
followed by every employees in enterprise which help them to attain organisational objectives.
Skills: Employees of Uber have ability to perform specific task such as communication
skills, technology skills, problem solving skills and learning skills to develop the performance of
company.
Style: Transformational leadership style is followed by Uber as it helps them to
implement the changes to update and innovate product and services to serve customer better
service.
Staff: It includes employees, drivers, human resource and IT team of Uber to operate
business in and efficient manner.
M2 Ascertain the strength and weakness of enterprise internal structure, skill set and structure.
From the above analysis it has been evaluate that strength and weakness of company
skills-set and internal structure. The strength of this method is it simple tool to apply in
organisation and helps Uber understand the to stay in competitive market to increase business
activities and operations of enterprises (Leonidou and et.al., 2017). The weakness of this tool is

when Uber has lack of resources in business and it does not identify internal resource to
understand demand the customer demand to implement the changes in the market.
TASK 3
P3 Evaluate Porter's Five model of given market sector
Porter's Five model: It is a framework is used to examine the competition in a business
environment. This tool includes rivals, new entrants, consumers and suppliers which affect
profitability of organisation. It is used to direct business plans to maximize competitive edge in
market. Uber using this framework which are explained below:
Competitive rivalry: This is the forces which has many competitors, product which are
offered by them, design and quality. In context to Uber, they are facing high threat as they
operate in many countries and have tough competition in market such as Ola which perform
same business model like customers service and food facility (Maniora, 2018). It puts pressure
on Uber to launch new technology and products in market.
Bargaining power of customers: Customers have powers to bargain better quality or
low prices along with the best offer. In context to buyers, they have high power as they can move
from one services to other. New offers and services is helpful for company to attract their
existing customer than competitors.
Bargaining power of suppliers: Suppliers has many benefits as they can charge higher
cost or low quality from its rivals which lowers the profitability of business. In context to Uber,
Suppliers has strong bargaining power as it can build its supply chain with multiple suppliers.
Threat of new entrants: There is high threat of new entrants. In context to Uber,
company is facing challenges in the market to implement the plans, reduction in prices and to
provide new technology to their customers. Thus, it is high threat for Uber in the competitive
market.
Threat of substitutes: This is the factor where customer can find substitute goods and
services for attracting offer and prices. This is high threat for Uber, as these facility is provided
by its rivals which impacts the profitability of company (McAdam, Bititci and Galbraith, 2017).
Uber can overcome this by adapting different styles and approaches to attract and retain
customers.

From the above analysis, it impacts the business environment and their is high threat of
competitors in market to provide products and services to audience. Uber come up with new
technology to serve customer better quality and price to its competitors.
Balance-score-card approach
It is defined as a tool used to examine, manage and improve the business activities and
operations. In context to Uber, manager use this metric to measure the performance of
organisation growth, process and production for resulting outcome to accomplish goals and
objectives of business. It helps to analyse to track the financial resources, customer perspectives
and process of business to retain customer (Moktadir and et.al., 2020). This is a powerful tool to
plan and communicate the strategy which help management to take appropriate decisions based
on their company's performance.
M3 Strategies to improve market position and competitive advantages based on result
The strategy which is used by management is Porter's Five models is useful to implement
strategy to stay in competitive market and Uber can differentiate their product and services from
its competitors, come up with new ideas to retain customers which help them to increase their
position in market (Razak and et.al., 2016). On the other hand, Uber consider balance score card
approach that focus on strategic planning to communicate business objectives clearly to
employees and offer new product and services to serve customers to its competitors which assist
to take competitive edge that attain the goals of enterprise.
TASK 4
P4 Apply concept, theories and models to devise strategic planning
Ansoff Matrix: It is the framework used by management to examine and implement their
strategies for the achievement and to accomplish long term goals of company (Sánchez-Herrera
and Donate, 2019). This tool describes four strategies which help organisation to analyse the risk
which are described below:
Market penetration: It relates to those strategy which offer existing product to the
existing customers by reducing the prices that can help to grow their company continuously. This
can be used by Uber to increase sales and profitability in company by minimizing their prices.

Market development: It is the strategy which is used by firm to expand their business by
offering existing product in new market. It is used by Uber to sell their products in new areas
with the old products to maximize their business productivity and sales of enterprise by
providing food facilities, freight and courier services. This benefit to economy to increase output
in the market.
Product and development: This comprises to generate new goods and services in the
existing market for the success of entity. In context to Uber, it can launch their new products and
services such as Uber pool to attain competitive advantage and increase the profitability of
business.
Diversification: It is adapted by organisation to grow their market share by launching
new goods and services in new market. In relation to Uber, it helps to increase revenue and
business productivity in enterprise by offering new products to its customers (Sanden, 2016)
(Sia, Soh and Weill, 2016).
From the discussed strategy, Uber has adapted product and development strategy for the
achievement of business in the existing market by offering new products and services to clients.
This help them to retain customer satisfaction which maximize profitability and sales of
company. This company focus on growth by providing new services through innovative ideas.
Extended model of Bowman’s strategy
Bowman's strategy refers to examine business position in the competitive market. The
aim of this strategy is to position their goods on two criteria which is cost and value of product
which lead to increase in organisational development. Uber use this method to measure
competitive position from the rivals to offer products in the market. Eight approach of Bowman's
strategy which is explained below:
Low price and low added value: This is the position when their is no competitors
advantages in marketplace. In relation to Uber, they promote goods and services at low prices
and audience recognize low value. Uber can use this approach by selling with low price to retain
existing as well as new customers.
Low price: In this method, enterprise promote their goods at low prices to create large
volume production which help Uber to increase profitability in business.

Hybrid: Hybrid is the strategy to differentiate their products from its competitors. In
context to Uber, they make their products distinct at low price that result in greater value in
market to retain customers in market.
Differentiation: Uber adapt differentiation strategy to offer high quality products and
services along with minimum price. Thus, it assist consumers to identify their products to its
competitors.
Focused Differentiation: Enterprise offers luxury products in market with high quality
at high price. Uber use different methods to sell such as advertising, marketing and various
strategies which help them to maximize business operations and activities
Risky high margin: This model have high risk to achieve long term goals to remain in
the competitive edge. Thus, company offer high prices but not offer anything extra then
consumer can switch to other organisation for minimum costs.
Monopoly: In this strategy, monopoly refers to particular type of products is offered by
company to customers as compared to its rivals. In relation to Uber, they offer freight
transportation to consumers which is distinct from its competitors.
Loss of market share: It is the strategic position when company is not capable to
promote their services which enterprise loss its market share. This is the method when
organisation choose standard pricing of goods to take competitive advantage.
M4 Ascertain strategic management plan which has tactical as well as tangible strategic plans
and priorities.
Executive summary Uber Technologies Inc. is a public company established in United states
by Garrerr Camp and Travis Kalanick. This company offers product and
services such as ride-hailing, courier and freight transportation,
packaging and food facilities to increase growth and productivity of
company (Soltanizadeh and et.al., 2016). The startegy followed by this
company is product and development in which management launch
new product and services for the grow business performance and
activities.
Vision Vision of Uber is “to provide transportation services everywhere to its

customers”
Mission Mission of Uber “to connect passengers in all areas around world”
Objectives  To provide safe and affordable transport services by year 2023.
 to generate employees opportunities and expand their income by
the year 2024.
 to increase market share up to 60% in year 2024.
Segmentation Segmentation: Uber focuses on geographical segmentation which
expand their business in urban as well as rural areas by providing food
and cabs services to customers.
Targeting: This organisation target all the age of people in the
marketplace.
Position: Uber maintain their leading position in the market by
increasing performance of business.
Strategy Low pricing strategy is adapted by Uber which help them to offer high
quality products and services at lower prices to take competitive
advantages.
Innovation strategy is followed by this company to launch new goods
and services in the market to maximize sales and revenue of the
organisation.
Financial projection Company require funds to accomplish strategy and planning adapted by
Uber which is defined as below:
Activities needs funds Amount
Operating activities £ 20000
Investment activities £ 50000
Financial activities £ 70000
Total funds £ 140000
Funding resources Uber has resources such as bank loan, retained earning, crowdsourcing,

equity capital and personal assets which can be used to arrange the funds
for the purpose of expansion of business in new marketplace.
Tactics Implement existing product is essential for Uber to attract customers
and stay in competitive market. This helps company to grow its markets
share and increase revenue in business.
Finding new market: This is the tool where Uber can provide more
services and products in new geographical areas to a different market.
Thus, it expands the profitability in company.
Measure and
control
Management of Uber use Key performance indicator tool to control
and measure the plans and performance of employees which helps them
to achieve business objectives. However, enterprise use this method to
understand the strategy to accomplish goals.
D1 Evaluate the strategy and theories for environment and competitive analysis to set objectives,
strategic directions and tactical actions.
From the analysis it has identified that Ansoff matrix, bowman's theory and Porter's five
model is easy to adapt as it helps to set business objectives, take competitive advantage and
increase growth of company. Thus, this assist Uber to take tactical decisions and can take
strategic decisions related to structure, policies and procedure (Yuan and et.al., 2020). On the
other hand, PESTLE analysis and VRIO framework is not simple to adapt these strategy and
theory as it has negative impact which is uncontrollable of Uber to handle the situation in
business.
CONCLUSION
From the above report it is analysed that business strategy is important for every
cooperation to plan, it helps to determine weakness and strength while framing a planning,
ascertain the funds and resources which improves business activities and it focuses on
competitive advantages for the position in market for the success. Management of Uber has
selected PESTLE and stakeholder analysis to ascertain the impact of internal environment which
increase the performance of company. VRIO framework and McKinsey 7s adapted by company
to determine business production and activities. Porters five model and balance score card is
followed by Uber to take competitive advantage in market. Uber consider Ansoff matrix is used

to attain long term objectives and Bowman's theory is to identify market position. However, this
strategies and theories helps management to maximize the success and growth of company.

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