Business Strategy.

WORD FILE

Business Strategy

Table of Contents
INTRODUCTION:..........................................................................................................................1
TASK1.............................................................................................................................................1
P1.Analyse impact and influence of macro environment of Uber technologies and also its
strategies......................................................................................................................................1
TASK2.............................................................................................................................................3
P2.Examine intrinsic environment and capabilities of Uber Technologies by using appropriate
frameworks. ................................................................................................................................3
TASK 3 .........................................................................................................................................6
P3: Applying Porter's five force model to evaluate competitive forces of Uber:.......................6
TASK4.............................................................................................................................................8
P4: Describe theories and strategic business plan.......................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION:
Business Strategy can be defined as group of decision or course of action which serve
entrepreneurs in achievement of business objectives. It is a master plan by which management of
organisation execute to secure a position in market segment, by carry on its operation, customer
satisfaction and achieved desired goals of business. It can be termed as backbone of organisation
because it provides road map to achieve desired objectives.
Uber Technologies Inc. is an American company which offers vehicles for food delivery,
hire, courier, package delivery, freight transportation services to business operations and general
people. It also have partnership with motorised scooter rental, lime, electric bicycle for satisfy
customer needs. Headquarter of company is in San Francisco, California, U.S., operated in over
900 metropolitan areas worldwide. Uber has estimation of over 110 million monthly active end
users all over world (Ostos, Hinderer and Bravo, 2017).
This report covers internal and macro analysis of Uber technologies by covering strength
and weakness of company also opportunities for firm to attain future growth. In addition, Porter's
five forces and Generic strategies are also discussed with suitable plan.
TASK1
P1.Analyse impact and influence of macro environment of Uber technologies and also its
strategies.
Pestle Analysis is a techniques to examine key factors such as Political, Economic,
Social, Technological, Legal, Environmental factors which influence organisation from outside.
By this, it allows senior managers and HR to evaluate any risks which are related to their
industry and company, use these knowledge to inform decisions. By this, there is a huge impact
on position of company in existing industry or future growth in many countries. Pestle Analysis
of Uber Technologies are discussed below: Political Factor: These forces is all about degree of government which are involve in
economy. This element include tax policy, environmental law, political stability. In
context of Uber technologies, it enjoy political factor as by government concentration
which offers favour to company. But it has also sustain negative impact by factor as there
are many strict rules and regulation for documentation and licensing are implemented by
government. This leads to creation of opportunities for growth and long term feasibility
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of business. In addition, Uber has faced controversy in market segment. As it have not
clear rules and regulations. So it leads to drawback for company because there is no
record of accidents. Furthermore, company also face problem as France filed against
company which is based on advertising. In addition, there is also political discussion
about minimum wage rate system in industries which is related taxi. So government have
to requires license according to requirement of documentation. Economic Factor: These factors have serious impact on organisation that how they do
their business and also profitability of work. It includes elements such as inflations,
economic growth, interest rates, exchange rates and so on. Industry in which Uber is
functioning sharing economy. It means that, this economy is mainly based on sharing
intellectual or physical resources. In US, rates of policies are adequate which provides
support in smooth functioning of performance of company. Consumers are also enjoy
their premium services which leads to increase in profitability of business and also create
goodwill between market and customers. Social Factor: These elements mainly focus on social environment and also examine
emerging trends. These factors help organisation to understand customers desires. There
are few aspects focus on friends, family, neighbour, media and social groups which have
impact on someone's attitude, opinion, attitude, regional differences that have impact on
sales and profit which is earned by company. In US, mainly people use cab facilities
rather than their personal vehicles. So for fulfil demand of customer respective
organisation increase productivity of business(Ardley and McIntosh, 2019) . In addition,
when there is high demand of cab this results in unavailability of service facilities this
effects brand image of company. Technological Factor: These elements mainly consider rate of technological
development and innovation which affects industry or market. Factors such as changes in
mobile and digital technology, research and development and automation. As US is
rapidly grow in advance technology which have advantage to Uber Technologies for
running business operation in more effective and efficient manner. There is also negative
impact by fast growing technology as easily it leads to obsolescence and also requires
high investment to implement new technology. Uber technologies use innovative
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technology in their services to build unique brand image of company to achieve high
revenues for business operation and also attract customer base. Environment Factors: These elements generally involves influence of environment of
surrounding and impacts of ecological aspects. This factors involve food, temperature,
pollution, sound, natural calamities that influence living beings. In context of Uber
Technologies, as it use diesel and petrol cars which create carbon emission and carbon
footprints in large quantity. So they pay huge amount of penalties as government make
standard as prevention and control of pollution. In addition, government give
compensation and subsidy to company which use environment friendly process.
 Legal Factors: This is a responsibility of organisation to understand legal framework
which are allowed in their territories. Factors include consumer law, employment
legislation and so on. These factors generally defines rules and standards which are
implemented by government that impacts on decision of enterprise. In context of
respective organisation, there are many rules which are made by government such as
documentation, licensing, accessibility of drivers, pollution control and insurance. This
results in smooth functioning of enterprise but company have to offer low rate taxi which
leads to decrease in cost(Chen and Wang, 2017).
From above analysis, it is summarised as Pestle analysis helps company to examine
external forces that impact their market and also analyse that how they impact on their business.
Uber is facing negative effect by technological, environment and social factors. So this is
responsibility of organisation to formulate strategies by proper analyses of external environment
to achieve sustainability in business. This leads benefit to enterprise to cover broader market
segment and also satisfy customer by offering them high quality of services.
Stakeholder Analysis:
It is a process which helps in identifying people before the project begins and after this
grouping them according to their level of participation, interest and influence them to give their
best for attainment of goals and objectives by involvement and communication with them.
Importance of stakeholder analysis is to enlist the players which are helpful in attainment of
objectives of company, in addition if there is conflict so managers and leaders are responsible for
address them in effective manner.
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TASK2
P2.Examine intrinsic environment and capabilities of Uber Technologies by using appropriate
frameworks.
The forces and conditions that exist in organisation is termed as internal environment of
enterprise. These factors are directly controllable as they are within firm itself. It includes factors
like board of director, employee, trade union, resources and so on. For successful operation of
business it is important for company to examine internal environment of it. In prospective of
Uber Technologies Inc. to analyse micro factors VRIO Analyse in undertaken which is discussed
below:
VRIO ANALYSIS: This is a tool used to examine internal resources of firm and
capabilities which are find out to sustain competitive advantage. In regards to Uber
Technologies, this model is used to analyse resources of company in order to gain sustainable
competitive advantage from industry and also build effectiveness in market segment for make
itself different from other competitors. By VRIO analysis resources of company are divided in
four distinct categories that plays vital role for strengthen performance of business.
RESOURCES VALUABLE RARE INIMITABLE ORGANISABL
E
COMPETITIV
E
ADVANTAGE
S
Brand image Brand image - - - Temporary
competitive
advantage
Service
quality
Service
quality
Service quality - - Equality
competitive
advantage
Innovation Innovation
capability
Innovation
capability
Innovation
capability
- Sustainable
competitive
advantage
Financial
position
Financial
position
Financial
position
Financial
position
Financial
position
Sustainable
competitive
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advantage
Valuable Resources: In every organisation, first and foremost resources are valuable.
Resources are seen as valuable when allow a firm to implement strategies that improve
efficiency and effectiveness of firm utilize opportunities or by reducing threats. It helps in
analysing strength of business towards expansions powerful place in market. In context of Uber
technologies Inc. , valuable resources includes brand image, service quality, innovation, financial
position these are discussed below: Brand image: In Uber Technologies Inc(Khedmati and et. al., 2019). pervade huge
amount on advertising and promotion of its services to anywhere which can be access and
guide customers to use these services. So by this brand image of company is increase in
global market through extension of business in various countries. By VRIO analysis of
Uber, brand image is precious and valuable resource of enterprise. Service Quality: Another important precious or valuable resources of Uber Technologies
is service quality. As company provide best quality to customer to satisfy their needs and
wants. So by this customer give high rating to company so service quality is become
valuable resources in VRIO analysis. Innovation: Technological innovations and advancements are used by respective
company to match market trends. So it leads to customer satisfaction which highlights
valuable resources of business.
 Financial Resources: In context of Uber Technologies Inc(Nagy and et. al., 2018). as
there is less competition is in market place. So financial resources can be expand to
attract customers. That's why financial resources are valuable to business.
Rare Resources: It involves resources which are designed in such way that are rare to acquire
by competitors and these resources must be contributed in achievement of business goals
effectively. These resources are considered as they play important role in build up business and
obtain market position. In perspective of Uber it includes rare resources as employee distribution
network, financial resources and so on. Below they are explained: Service Quality: By giving better quality Uber Technologies has large amount of
trustworthy and loyal customers. As company provide quick services tom satisfy
customers so this become rare resources of business.
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 Innovation: Creativity and innovating aspects of Uber Technologies is high because of
huge investment on digital technology in their services which leads to increase in
outcome of business. So innovation is considered as rare resources in business.
 Financial positions: As in terms of Uber, for start a new business it requires huge
amount or large support of financial needs. As this company gain brand image, so
financial position is rare resources in terms of business(Agapitou, Bersimis and
Georgakellos, 2017).
Inimitable Resources: It involves resources which are not copy easily by any business
enterprise and increases business. These resources are significant for any organisation for design
itself in specific and unique by its resources which are important and gain competitive advantage
for company. Inimitable resources of perspective company includes financial resources,
distribution network and so on. These are describe as under: Innovation: In Uber Technologies Inc. use innovative technology in its services for
attract more customers which are not easy for competitive rivalries to make their
strategies in innovative manner. Thus, it leads to inimitable resources of business.
 Financial Position: As respective company in itself has brand image. It requires huge
financial resources that are inimitable for other competitive industry. So financial
position is inimitable resources of business.
Organisable Resources: In VRIO analysis this is last resource, it explains as resources are not
make competitive advantage for business when they are not properly organised. In context of
Uber Technologies Inc., it includes organisable resources such financial resources which is
discussed below:
 Financial position: In order to increase financial position, Uber Technologies Inc. uses
high quality of products in manufacturing and service providing. So by this, cash flow of
company is maintained in right manner and revenues of company is increases.
Thus, from above analysis, Uber Technologies Inc. , it is analysed as company has
different resources like valuable, rare, inimitable and organisable for business operation that
consider strength of enterprise. This become helpful in effectiveness of business strategies as by
requirement of different situations.
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TASK 3
P3: Applying Porter's five force model to evaluate competitive forces of Uber:
This model cab be define and analyse as the five competitive forces that shapes every industry
and helps in determine strengths and weaknesses. This force is frequently used to identify an
industry's structure to determined corporate strategy. Porters five force model is used to
understand competitive aspect of Uber are defined below(Habib and Hasan, 2019):
Porter's five force analysis: It is used to analyse competitive factors of Uber that
enables business to chose effective strategies according situations. It is also help to explain why
industry is able to sustain different level of productivity. This factors are describe below in the
context of Uber technologies.
Bargaining power of supplier: It is most important factor of this analysis that has major
impact on the organization. This is determined by the power of supplier to increment their price.
If there is number of supplier in market than their bargaining power is low opposed. But if there
are fewer supplier and more industry needs their help, the stronger their ability to charge
industry. In the context of Uber technologies, bargaining power of supplier is high due to
requirement of professional drivers. Gas and oil suppliers has major impact on transformation
industry and raises in their price create risk for respective company. Thus the bargaining power
of supplier is high in the context of Uber technologies, it could impact its position in negative
way which could be disadvantage for the industry.
Bargaining power of buyers: It is an assessment of how easy it is for buyer of industry
to drive prices down. This driven by ,the number of buyers in the industry and importance of
each buyer in organisation. It is also important that how it is easy for buyer to switch to one
supplier to another. In the terms of Uber bargaining power of buyers is relatively high because of
the availability of competitors in the transformation industry such as local taxis, Tesla etc.
costumer can easily switch to another supplier due to increment in waiting times, which could be
threat for the respected company. Thus the bargaining power of buyers could impact the
company, it could also impact the sales and revenue of Uber as well as distribution network. It
leads to retain customers of business from switching to others(Leonidou and et. al., 2017).
Threat from new entrance: It is also significant factor that has an immense influence
over transportation companies. An established company like Uber attracts others competitors to
have share of their success. Company has been making profits since its inception, and they has
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customer loyalty base that are loyal and trustworthy for firm. In the context of uber, the treatof
new entrance is low because of high level of investment in this industry. There are many entry
barrier in transportation industry which make the entrance of competitive industry quite difficult.
Thus, this factor has positive impact on respected company, it is not easy for new entrance to
compete well know and established company like Uber. Its policies offers using effective
software to control the cost of business in order to make effective operation of business. Uber ha
no threat from new entrance that has prominent impact on the profitability and in terms of getting
competitive advantages form market(Wieland, Hartmann and Vargo, 2017).
Rivalry among existing competitors: This is the strength of competition in the industry.
The tend of contraction of company appears to be higher than previous year, and the existing
companies in the market compete with both supplier and buyer. All the industries are not equal
in the terms of competition. Threats from rivalry is strengthen for completion of transport
industry. As in transport industry competition from rivalry is increased compared past few years
and currently transport industries are competing from both car drivers as well as customers. Due
to operations of this company in all over world its competition has been increase. Thus this
factor of the model is threat for the respective company because of the high level of competition
around the world. But with the innovation and new ideas in their organisation they can give high
competition to their rivalry.
Threat from substitutes: A substitutes is well known fear that is experienced in a
competitive business environment. In the transportation industry there are numbers of member in
organisation that can provide replacement for Uber service. With the service quality that
company provides, taxis services is the closet opponent and potential substitute emerging from
the traditional transportation industry. There are several companies that are offer similar services
from Uber. Thus to deal with this terms company respected company can try to differentiate its
services so they can attract new customers such as using eco friendly and customer friendly
services.
Thus, from the above discussion on five force model of porter, model impact the uber in
dynamic way that creates competitive benefits as well as berries for firm. In term making
effective stand in potential market of UBER technologies. Company should focus on making
effective services and use innovativeness in their business (Olson and et. al., 2018). From the
above analysis, it is clear that bargaining power of buyers in case UBER is high due of
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availability of similar services available in market. In order to deal with this, company requires
to focus more on its services in order to differentiate them from the services offered its
competitors. Threat of new entry in context of UBER is low due to its loyal customer base and
big brand name. Threat of new substitute in context of UBER is also high so there is a need of
continuous effort by company in order to provide excellent services to its customers in order to
TASK4
P4: Describe theories and strategic business plan.
Ansoff's matrix: This model is essential for strategies marketing planning where it can
be applied to look at opportunities to grow revenue for business through developing new product
and service tapping into new market. It is also use to evaluate opportunities for company to
increase their sales through showing alternative combination for new markets. In the terms of
Uber following elements of this model(Chen, Eshleman and Soileau, 2017).
 Diversification: It is strategy that is based on the development new product and service,
and entrance into new market that leads into expansion of exploring business. This
strategy plays significant role in achievement of effective goodwill in industry with large
market shares and revenue. It is associated with risk and investment. Adoption of this
strategy is risky for UBER as with this company will enter in new market with new
service. Proper analysis should be done by enterprise before enter into new market in
order to achieve set goals and objectives.
 Market development: This is a strategic step taken by company to develop the existing
market rather than looking for new market. It is contribute to rising coverage of business
and increasing sales and customer base of business. It is less risky, costly and time
consumed but not effective in all situations and conditions. UBER can adopt this strategy
by enter in new market. With this, company will be able to serve more customers which
will increase market share and profitability of organisation.
 Product development: This strategy is related to development of new product and
service for existing market. That contribute the boarding of market of industry. It has
significant advantages of raising profit and improving business quality. It is also increase
consumer base for the business. It is quite expensive and risky approach for this business.
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In context of UBER, company can introduce new services in market such as company
can launch its own app of money transferring or can enter in food market.
 Market penetration: It is suitable when the condition of business is going down due to
low promotion of goods and services. This strategy is used when the business seeks to
increase sales growth of its existing product or services and promotion activities are raise
for existing goods (Peris-Ortiz and Ferreira, 2017). For adoption of this strategy,
company require to offer various schemes and discounts in order to increase its sales.
Strategic management plan: This plan is a document used of communication within the
organization. Strategies management planing is the process of documenting and established a
direction of business. This plane gives place to record your mission, vision, and value as well as
long term gaols and actions plans. In the terms of Uber management plan for adopting product
development are discussed below:
 Mission: It define as the core purpose of an organization or company. A summary of the
aims and core value. A mission clearly tells what organization do for customers, this
comprehensive but also very specific apart from other organization.
 Vision: This statement is the anchor point of any strategies plan it outline what
organization want to achieve in the future and gives purpose to the existence of Uber
organization(Bentley-Goode, Newton and Thompson, 2017).
 Value: Uber's value are engaged taking care about time limits, efforts and ability of
business to serve their customer in effective way. It leads to offer fast affordable public
transportation for general public and business customer for who needs to deliver product.
 Finance: In the terms of fulfilling the above mission of business Uber required 60% fund
from external sources such as bank loans, public finance and 40% of internal sources
reserve capital, selling of assets etc(Prashar, 2018).
 Customers: For Uber targets customer of business are includes general people,
individuals, professional as well as business users to fulfil the mission and objectives of
business.
 Monitoring: In terms of Uber should focus on directing of estimated plan so as to meet
effectiveness in project and implement needed change. This leads to effective and
effectual application of plan.
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 Resources: For the above purpose resources of Uber includes human resources,
equipments, machinery sources of energy and water resources.
Porter's generic strategy: Michel porter provides strategies model guides senior manger
in explore business opportunities and helps in minimising threats that create barrier in effective
implementation of business strategies. In the context of uber following are the strategies that
provide significant competitive merits.
 Differentiation strategies: It considered as relevant tool for increasing brand image and
profits for business. In this strategy huge investment required for developing specific
goods and services. For increasing customer loyalty towards brand or company and
building trust in a mind of buyers towards the quality. This leads to attain higher profits
and revenue for business through setting goals and plan (Rogmans and Abaza, 2019). IN
context of UBER, company requires to focus more on various aspects in order to ensure
effective delivery of its services to its customers. With this, company can get competitive
benefit and can sustain in market for long time.
 Cost leadership strategy: this strategy is suitable for companies who needs to become
lowest cost procedure within a industry. It based on lowering the cost of product and
service so that company can take advantages of it. It is significant approach for getting
customer's attention and encouraging them for assessing goods and services. For
implementation of this strategy, UBER requires to focus on every aspect through which it
can reduce the cost of its services in order to attract large number of customers.
 Focus strategy: Final stage of above method is based on focusing on one of the element
from cost leadership and differentiation strategy at a time. Focus on both may fails to
solve problems arise in business organisation.
Thus, it is analyse that Uber already had loyal customer base that shows effective preference,
oration, and capabilities to sure customer as per their requirement. Company face huge
competition form rivalry. Respective firm needs to focus on differentiation strategy for making
different brand image(Johansson and Kask, 2017)
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CONCLUSION
From the above discussion it can be conclude that, there are different forces that has prominent
impact on business performance with the respect to strength to organization. This report contains
distinct models and theories for analysing micro and macro environment of business considered
for making firm enable to explore growth opportunities and diminishing threats, further, various
competitive factor that impacts organization in significant ways are explained in order to find out
effectiveness and efficiency of business. Moreover, management plan for business is discussed
for effective application of strategies which make firm enable to take successful decision and
help in achievement of business goals(Kitsios and Kamariotou, 2019)x. .
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