External Environment and PESTEL Analysis of Uber

Global Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External Environment.................................................................................................................3
PESTEL analysis.........................................................................................................................3
Importance of PESTEL environment..........................................................................................3
Components of PESTEL analysis...............................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................7
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INTRODUCTION
Every organisation works in certain surroundings and it becomes very important to study
impact of this external environment on working of organisation (Fosher, 2018). This study is
done with an aim of formulating effective strategies so that desired goals and objectives are
achieved. In this report, there is an inspection into external environment of Uber, a private
company headquartered in United States. It is working in transportation industry. For the purpose
of this investigation into macro environment, PESTEL approach is used.
MAIN BODY
External Environment
An external environment refers to the group of situations or considerations those are
outside the premises of organisation and affect the operations of business in huge manner. In
context of business, this part of environment refers to those elements which are out of control of
management, for example, society, technology, political system, governmental regulations, etc
(Islam, 2017).
PESTEL analysis
A PESTEL analysis is a framework that sets an investigation into external environment
of business. This factor helps business to climb the ladder of success by forecasting any threats
and opportunities posed by these factors (Tesch and Brillinger, 2019).
Importance of PESTEL environment
It is an important tool that assists management of organisation in the process of decision
making. This is done by establishing a coordination between departments of organisation and
factors of external environment. Different segments of this theory helps in analysing their impact
on operations of business so that if any actions are required, they can be taken on time.
Components of PESTEL analysis
Political environment: This segment relates with the most important pillar of any
country. This is governmental regulations and related strategies (Political Environment, 2020).
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