Impact of Macro Environment on UBER and its Business Strategy

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
TASK 1............................................................................................................................................1
P1) Analysis of impact and influence of macro environment on UBER and its strategy ..........1
M1) Critically analysed macro environment to determine and inform strategic management
decision ......................................................................................................................................4
TASK 2............................................................................................................................................4
P2) Analysis of internal environment and capabilities of UBER ..............................................4
M2) Critically evaluate internal environment to assess strengths and weaknesses of UBER
with internal capabilities. ...........................................................................................................6
TASK 3............................................................................................................................................7
P3) Applying porter's five model to evaluate competitive forces for UBER in its market sector
.....................................................................................................................................................7
M3) Formulation of appropriate strategies to improve competitive edge and market position..8
TASK 4............................................................................................................................................8
P4) Applying a rang of theories, concepts and models to interpret and devise strategic
planning for UBER. ...................................................................................................................8
M4) Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives. .................................................................................................................................10
D1) Critically interpret information and data applying environment and competitive analysis
to produce a set of valid strategic directions ............................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is refers to an organisation, firm or entity which is engaged in commercial,
industrial and professional activities. It is also refers to the organized efforts of an individual or
group of people to produce and sell products and services with the aim of generating high
revenue. In addition to this, business strategy is refers to the combination of all decisions and
actions performed by organisation in order to accomplish organisational goals and secure a
position at a market place (Lim, Chalmers and Hanlon, 2018). It is the means by which
organisation set competitive moves and actions that are used to attract customers and build
strong competitive edge. Moreover, this is an course of actions and set of critical decisions that
outlines how business is to be carried out to reach at the desired goals. This report is based on
UBER Technologies Inc. which is an American based technology company, with headquarter in
San Francisco, California. It is specialise in providing ride-hailing, food delivery, package
delivery, couriers, fright transportation, electric bicycle and through partnership with motorized
scooter rental. Below report includes, impact of macro environment on UBER and its business
strategy, analysis of companies internal environment and capabilities. Moreover it includes,
analysis of market sector through using porter's five model and evaluation theories, models and
concepts for understanding strategic directions.
MAIN BODY
TASK 1
P1) Analysis of impact and influence of macro environment on UBER and its strategy
UBER Technologies Inc: It is a transportation based company in California, America
which is established in 2009 by Garett Camp and Travis Kalanick. This operates in more than 69
countries with different type of services. It is estimated to have over 78 million monthly active
users across the globe. Uber is consist of the 67% of market share for riding and 24% share food
delivery.
Vision: This is refers to an mental image of a possible and desirable future state of the
organisation. UBER vision is transportation with that will be safer, cheaper and more reliable
which will develops more job opportunities and higher for drivers (González-Rodríguez and et.
al., 2018).
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Mission: This is defined as a short statement of why an organisation is exits and what its
overall goals. Uber's mission statement is “transportation as reliable as ruining water, everywhere
for everyone” which reflects organisation is all about offering a services to its users for making it
memorable experience.
Objectives: It is described as the idea of future and desirable results that is need to
attained within specified period of time. UBER's objective is to serve all type of transportation
and logistic services to the customers. Along with being the most cheaper and easy rides across
the globe.
Macro environment
Macro environment of organisation is refers to the external factors that has an direct
impact on the productivity and decision making of a company. This has been closely related to
the the basic business cycle as opposed to performance of an organisation. Managers of uber are
focusing on increasing its growth at a market place along with the profit maximization. For this
company need to evaluate various external factors by applying PESTLE analysis framework.
Factors of this framework is explained below in relation to Uber (Quenum and et. al., 2019).
Political factor: This factor is refers to the political environment of a country that
influence the strategies and performance of the company. UK has an effective political
environment along with strong stability that ensures growth and sustainability of this
organisation within market. However, due to the anticipated events of Brexit could be threat for
the organisation as this could cause a major disadvantage to the company in to develop its
alignments with such unstable laws and legislations. In order to over come this Uber is need to
asses market conditions regularly to ensures that whether it could sustain in current political
environment or not.
Economical factor: This factor is associated with the overall performance of the nation
based on its economic grounds. This includes employment rates, interest rate, foreign exchange
rate, inflation rate etc. UK is the 5th largest economy in the world along with this, it is a popular
destination for foreign direct investment through which it is able grab many opportunities and
able to grow its business. However, inflation rate of UK is continuously rising by which Uber is
also increase its rates that direct influence companies revenue. In order to overcome this, Uber is
focusing on making better strategies and business planning so that impact of inflation can be
reduces (Kitsios and Kamariotou, 2019).
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