Impact of Macro Environment on Uber and its Strategies

Business Strategy

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse the impact of the macro environment on Uber and its strategies............................1
TASK 2............................................................................................................................................4
P2. Analyse the internal environment and capabilities of Uber..................................................4
TASK 3............................................................................................................................................7
P3. Applying Porter’s five forces model to evaluate competitive forces....................................7
TASK 4............................................................................................................................................8
P4. Applying a range of theories, concepts and models to interpret and devise strategic
planning.......................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy refers to the tactics and methods which are formulated and framed the
management of the establishment so that firm can run its business in effective and efficient form.
It can be a set of activities and moves that can be utilised by the organisation to get attention of
its consumers, strengthening performance, accomplishing goals and objectives of the business
enterprise in adequate manner. This written report is supported to Uber technologies, Inc.
commonaly known as Uber (Nagy and et. al., 2018). It is an American company that provide
vehicles for hire, food delivery, package delivery, couriers and freight transportation etc. This
venture was established in 2009 and is headquartered in San Francisco, California, US. This
document will discuss about the impact f macro and micro business environment on organisation
and its business plan of actions. Further, it will explain about competitive force and application
of concepts and models which help in acknowledging and interpretation of strategic planning of
company.
TASK 1
P1. Analyse the impact of the macro environment on Uber and its strategies
PESTEL analysis of Uber-
It is a tool or method that is utilised by the administration of any firm to acknowledge and
measure the influence of several factors that are outside the control of business venture on the
action and operations of the business. It is a most crucial technique for managerial determination
making that assists in early identification of growth options and assists in preventing any risk for
the establishment. Components outside to business venture but impacting the firm and its
strategies consider political, economic, social, technological, legal and ecological factors. The
description of this analysis in reference to Uber is as below:
Political- Uber has always suffered endless debates internationally. Political factors
influencing business consider government stability, bureaucracy, levels of corruption, impacts of
home market lobbying teams and others (Ukko and et. al., 2019). Most of the national authorities
are worried about the guideline of the sharing economy. Maximising of Uber has trouble making
effect on the business of traditional taxi service that direct to a maximisation in disapproval
towards them at various levels. In some nations, like South Africa, the firm affected as the
national authority seizing the Uber cars as the driver did not hold a taxi permit. In current
1

COVID pandemic situation, the business of this affected negatively due to lockdown situation.
As the people not use public vehicle in transport so the sales and revenue of this firm affect in
negative manner. Along with this, government policy also involve in this activity so companies
and individual also consider travelling related guidelines in it.
Economical- Sharing economy is supported to the physical and intellectual resources by
Uber. The sharing economy generated employment and job option for individual in large
numbers. The respective company offer taxi services and make an effective contribution in
increasing employment rate (González-Rodríguez and et. al., 2018). The growth of Uber has
been exceptionally speedy even when they have had an issue of low costs put up through the
normal taxi driver managing the inconceivable care they offer. Due to COVID 19 pandemic the
sales and profitability of the company decreased and reduced which also affect the economic
situation of respective venture in negative manner.
Social- One good thing about Uber is that consumer has mostly been happy about the
service offered through them. The cost has been less as compared to other taxis and this has
ensnared many. Awareness has been spreading by ads, social media and mostly by word of
mouth. The costs of the rides have also maximised especially in the urban areas that is good for
Uber only most of the times due to its usability. Cause to its accessibility individual has been
disposed to the respective highly.
Technological- Innovation is at the foundation of everything enormous in the 21st century
and improvement does not work without innovation. The ride sharing business for Uber has been
an incredible creation as well as an incredible experience for riders as well as drivers and this
could only have possible through the technological advancement and innovation. The respective
company has coordinated a few unique highlights into its application to give a extraordinary
encounter. Innovation is one of the important factors driving Uber’s quick development. Online
booking facility and online payment is one of the most crucial service in which the comoany
make effective use of technology and it positively affect the venture in term of high customer
base and high revenue.
Ecological- Sustainability has been a concern for most of the businesses thus Uber has also
provided essentialness to it. Traffic cognition and fuel consumption have enlarge, believed by
many. Uber green has been launched as its pilot project to take sustainability into consideration.
The Project takes riders requests of a green rise at a couple of buttons. Along with this, the
2