Business Strategy: Macro Analysis, VRIO, McKinsey 7's, Benchmarking, Porter's Five Forces

BUSINESS
STRATEGY

Table of Contents
BUSINESS STRATEGY....................................................................................................................................1
INTRODUCTION...........................................................................................................................................3
MAIN BODY .................................................................................................................................................3
Macro analysis -PESTLE ..........................................................................................................................3
VRIO.............................................................................................................................................................5
McKinsey 7's...........................................................................................................................................6
Bench marking........................................................................................................................................7
Porter's five forces .................................................................................................................................8
Porters generic strategy .......................................................................................................................10
Ansoff matrix........................................................................................................................................11
Bowman's theory..................................................................................................................................11
Strategic plan........................................................................................................................................12
CONCLUSION.............................................................................................................................................13
REFERENCES..............................................................................................................................................14

INTRODUCTION
Business strategy can be defined as making strategic plans to achieve goals and
objectives of the company. It helps in setting goals, plans and deciding actions to be taken to
complete given work on time (Pahwa, 2020). Uber technology, Inc.is a public company which
was founded in 2009 by Garrett Camp and Travis Kalanice. It's head quarter is situated in San
Francisco, California, U.S . It provides products such as mobile app, website and services like ,
food delivery, package delivery, courier freight transport, vehicle for hire. In the report Macro
analysis is done in which PESTLE is described, VRIO, bench marking, value chain analysis is
described. Five forces of porter and balanced scorecard is discussed. Further, porter's generic
strategy, hybrid strategy,diversification, Bowman's theory and Ansoff matrix is described.
Further, strategic plan is prepared in which mission, vision, aim, objectives, goals is described
(Yuan and et.al., 2020).
MAIN BODY
Macro analysis -PESTLE
Macro environment refers to the external factors that affect company's working and also
profit of the organization. Managers of the company should make plans or strategies to control
the factors and to reduce the risk. These are the factors that are uncontrollable but some plans can
be made to reduce the risk. Pestle is a strategic framework that is used to identify different
factors that can affect company and measures that can be taken by managers to reduce the impact
of factors on company. Pestle analysis refers to political, economic, social, technological, legal
and environmental factors (Park and Mithas, 2020).
Political factor : It refers to the factors that determine the extent to which government and
policies , rules and regulations that are made by government. These factors are decided by
government like, tax policy, trade restrictions, tariffs, bureaucracy, trade barriers, labor law,
environmental law, political stability. As government changes tax policies and other things so it
affects the company's performance. If company want to export or import goods or services then
they have to pay different amount of taxes and there are many trade barriers that can affect
company (Moktadir and et.al., 2020) . As Uber company is providing services in all over the

world so they have to pay taxes. In Netherlands Uber drivers are not a having tax licenses which
creates issue and this affect reputation of company. The government requires license, requiring
uber to provide documentation.
Economic factor : These fa tors include economic growth, exchange rates, inflation rate and
interest rates. These can affect company performance as if interest rates are increased for taking
loan then organization have to take loan at high interest rate and this is loss for company
(McAdam, Bititci and Galbraith, 2017).. In Uber they hires drivers to respond to customers
quickly and drop them where they want to reach. It is cheaper than other taxis as other taxis are
charging high price and they take time to reach the location. There is good opportunity for uber
company to expand its business and provide good services to customers so that more people are
attached and they use Uber taxis.
Social factors : Social factors include cultural aspects and health conscious, growth rate ,
population rate, age, career attitudes. Companies may change policies and procedures according
to the society or environment in surrounding. Uber company provides app on smartphone to use
their services. People can book taxi online by giving their pick up and drop location . Within 15-
20 minutes taxis will reach their and it is safe for people. The prices of Uber taxis are less as
compare to other transportation facility like, private bus, auto or any other. Nowadays customers
share their views on social networking sites by giving good feedback for uber taxis. This help in
increasing profit by attracting more customers and builds good image on the market.
Technological factor : Technological factors refers to research and development, automation,
technology incentive and rate of change in technology. There are many barriers like daily new
technology is coming in the market and it is difficult for companies to make changes. Uber
company is providing good services at less prices which creates good image in the market
(Farrukh and et.al., 2020).
Legal factor : The factors include discrimination law, consumer law, employment law, health
and safety law. Uber faces much criticism and bans, company follow technical usage laws,
copyright laws, labor and employee safety laws.