Analyzing the Impact of Macro Environment on UBER's Strategies

BUSINESS
STRATEGY
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Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK ..............................................................................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies...............................................................................3
Critically Analyse the macro environment to determine and inform strategic management
decisions.................................................................................................................................7
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................7
Critically Evaluate the internal environment to assess strengths and weaknesses of an
organisation's internal capabilities, structure and skill set...................................................10
Applying Porter's Five Forces model evaluate the competitive forces of a given market sector
for an organisation................................................................................................................11
Devise appropriate strategies to improve competitive edge and market position based on the
outcomes...............................................................................................................................13
Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation..............................................................................................................13
Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives..............................................................................................................................16
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19
INTRODUCTION
Macro environment refers to the forces which takes birth outside the company but effects
internally and externally to the firm at a substantial level. In includes PESTLE Analysis and
stakeholders analysis under its shade(Ansoff, and et.all., 2018). PESTLE stands for Political,
Economical, Social, Technological, Legal and Environmental factors. Stakeholder refers to all
people who is related to the organisation such as Customers, management team, suppliers,
directors, shareholders, etc. are categorised as stakeholder of the firm. In the present report
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PESTLE analysis is been done along with stakeholders analysis. VRIO and McKinsey's 7's
model is also considered in the report for internal analysis of the company. Porter's five force and
Porter's Generic model is also discussed for the company's industry and positioning analysis.
Bowman Strategic Cycle or Extended Model of Bowmen Strategy is also studded. UBER is
taken into consideration in present report for analysis.
TASK
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies.
PESTLE ANALYSIS:
Macro Environment also known as external environment, refers to an impact on
organisations at a large. The environment hinders the conduct of business and its revenues at a
bigger scale and sometimes the environment creates its impact on company as well as on
industry as a whole. Under this environment, firms have no control over the factors and on its
effects (Chepchirchir, Omillo, and Munyua, 2018). Companies has no option other then to adapt
and accept the changes or effects and is required to react according to the environment whether
favourable or not for the company. Macro environment includes PESTLE analysis under its
umbrella. PESTLE stands for Political, Economical, Social, Technological, Legal and
Environmental factors of external environment.
PESTLE analysis for UBER is conducted under:
 Political Factor: This factor includes governmental policies and regulations which are
formulated by the ruling political party in the country. Political stability,taxation policy,
fiscal policy, etc. comes under this category.
UBER initially faced huge problem by not abiding the rules and regulations of
government and not clear about minimum wage rate. This has impact on company's stability and
brand image.
 Economic Factor: This factor includes characteristics such as economic condition of the
country, inflation or exchange rate, unemployment, etc.
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UBER has generated employment through its services as it bridged a gap between drivers
and passengers. The impact of this environment on UBER is favourable for the company as the
economy has provided competent drivers and job seekers to UBER.
 Social Factor: This includes society's perceptions and cultural aspect, demographics, etc.
Since companies and human beings both survives in a society, so society people has a
great impact on performance of the organizations.
UBER has enjoy the society acceptance in terms of the services provided by the company
and the price quoted for rides.
 Technological Factor: This factor includes technological change which takes place in
the environment which can be up-gradation, innovation or degradation. Now a days
world is moving towards the technological enhancement and every company tries to
bring latest technology in its workings to meet the expectations and to offer something
new to its buyers.
UBER uses the latest technology in its services and provides best to its customers. Th
company has adopted digital payment, ride tracking, live location, push notification services in
rides being offered to its customers.
 Legal Factor: This factor comprises of legislature, legal laws and regulations. Trade
regulation law, health and labour law, safety law, etc. takes shade under legal factors.
UBER has faced problems by not abiding the legal rules and laws into practice. In the
year 2015, the company has suited by two of its drivers for not following minimum wage rate
law for them.
 Environmental Factor: The factor relates to ecological issues in the environment such
as weather conditions, pollution, resources crunch, natural and man made disasters, etc
(Chumba, 2019).
UBER is concern for the environment and provided an option to the drivers who can
request a green ride to its clients just on a single tap of a button. Along with this UBER also uses
new or less carbon emission cars in service in order to support environment.
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